RadNet Reports Third Quarter Financial Results and Revises Upwards 2023 Financial Guidance Range for Adjusted EBITDA (1) Consolidated Revenue increased 14.8% to $402.0 million in the third quarter o

RadNet Reports Third Quarter Financial Results

and Revises Upwards 2023 Financial Guidance Range for Adjusted EBITDA(1)

LOS ANGELES, California, November 8, 2023 -

RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging

services through a network of 366 owned and operated outpatient imaging centers, today reported financial results for its third quarter

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "I am very pleased with our performance in the third quarter. We continue to experience strong procedural

volumes, contributing to the highest third quarter Revenue in our Company's history. Compared with last year's third quarter,

our Imaging Center segment Revenue increased 14.3%, driven by 8.6% aggregate and 4.2% same center procedural volume growth. Additionally,

taking into account one less work day in the third quarter of 2023 as compared with the second quarter of this year, our Revenue per work

day increased sequentially, a trend which has continued thus far into this year's fourth quarter."

Dr. Berger continued, "Despite a challenging

labor market and other inflationary pressures, we were effective in managing expenses during the quarter. Our Imaging Center segment Adjusted

EBITDA(1) increased 20.3% as compared with last year's third quarter, which resulted in Imaging Center margin expansion

from 14.4% in last year's third quarter to 15.1% in this year's same quarter. As a result of the strong operating performance

and our confident outlook for the fourth quarter, we have elected to increase our 2023 guidance range for Adjusted EBITDA(1)

for the third time this year."

"Our AI segment continues to steadily grow,

increasing by 221% from last year's third quarter. This was driven by the launch of our Enhanced Breast Cancer Detection ("EBCD")

mammography offering. We are now fully rolled-out with this service to all of our mammography centers on the east coast, and we have begun

program implementation in California, which we anticipate will be completed by the end of the first quarter of 2024. We are experiencing

close to a 35% adoption rate on the east coast, a metric we expect to increase as we continue to educate patients and referring physicians

about the significant advantages of electing EBCD. We are on target to meet our AI segment guidance for 2023 and continue to work towards

break-even Adjusted EBITDA(1) from the AI segment by the end of next year," continued Dr. Berger.

Dr. Berger added, "I am very pleased to

announce that during the quarter, we expanded our outpatient radiology partnership with Cedars-Sinai. This includes establishing a new

joint venture called Los Angeles Imaging Group, initially with three locations, as well as broadening our existing three-center joint

venture, Santa Monica Imaging Group, to include the contribution of seven additional centers -- five of which were contributed by Cedars-Sinai.

The expanded relationship with Cedars-Sinai is designed to increase patient access to outpatient radiology by broadening the ambulatory

network of imaging centers throughout Los Angeles, including certain underserved communities. The ventures will streamline and improve

patient care by improving workflow, providing better access to records and producing more timely and accurate results for patients and

referring physicians. After giving effect to the expanded Cedars-Sinai relationship, we now have almost 36% of our imaging centers held

within health system partnerships."

Dr. Berger concluded, "We are well-positioned

with low financial leverage and strong liquidity to continue to accelerating growth. We ended the third quarter with a cash balance of

$338 million, a ratio of Net Debt to Adjusted EBITDA(1) slightly above two and an undrawn $195 million revolving credit facility.

While we will continue to execute on a de novo strategy we began almost two years ago, we are being presented with acquisition opportunities

and health system partnerships with greater frequency. We look forward to being in a position to discuss some of these opportunities in

the coming quarters."

Third Quarter Financial Results

For the third quarter of 2023, RadNet reported

Revenue from its Imaging Centers reporting segment of $399.1 million and Adjusted EBITDA(1) of $60.4 million, which excludes

Revenue and Adjusted EBITDA(1) losses from the AI reporting segment. As compared with last year's third quarter, Revenue

increased $49.9 million (or 14.3%) and Adjusted EBITDA(1) increased $10.2 million (or 20.3%).

Including our AI reporting segment, Revenue was

$402.0 million in the third quarter of 2023, an increase of 14.8% from $350.0 million in last year's third quarter. Including the

Adjusted EBITDA(1) losses of the AI reporting segment, Adjusted EBITDA(1) was $57.9 million in the third quarter

of 2023 and $45.8 million in the third quarter of 2022, an increase of 26.5%.

For the third quarter of 2023, RadNet reported

Net Income of $17.5 million as compared with $668,000 for the third quarter of 2022. Diluted Net Income Per Share for the third quarter

of 2023 was $0.25, compared with a Diluted Net Income per share of $0.01 in the third quarter of 2022, based upon a weighted average number

of diluted shares outstanding of 68.8 million shares in 2023 and 57.7 million shares in 2022.

There were a number of unusual or one-time items

impacting the third quarter including: $2.3 million of non-cash loss from interest rate swaps (net of the amortization of the accumulation

of the changes in fair value from Other Comprehensive Income); $1.2 million of severance paid in connection with headcount reductions

related to cost savings initiatives; $16.8 million gain on the contribution of imaging centers into the Santa Monica Imaging Group joint

venture with Cedars-Sinai; $1.0 million expense related to leases for our de novo facilities under construction that have yet to open

their operations; $1.3 million of pre-tax losses related to our AI reporting segment (net of non-cash adjustments to contingent consideration

and intangible AI assets); and $915,000 loss from revaluation of certain acquisition contingent consideration. Adjusting for the above

items, Adjusted Earnings(3) from the Imaging Centers reporting segment was $9.9 million and diluted Adjusted Earnings Per Share(3)

was $0.14 during the third quarter of 2023.

Also, affecting Net Income in the third quarter

of 2023 were certain non-cash expenses and unusual items, including $4.3 million of non-cash employee stock compensation expense resulting

from the vesting of certain options and restricted stock and $746,000 of non-cash amortization of deferred financing costs and loan discounts

related to financing fees paid as part of our existing credit facilities.

For the third quarter of 2023, as compared with

the prior year's third quarter, MRI volume increased 11.7%, CT volume increased 10.9% and PET/CT volume increased 17.7%. Overall

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 8.6% over the

prior year's third quarter. On a same-center basis, including only those centers which were part of RadNet for both the third quarters

of 2023 and 2022, MRI volume increased 6.9%, CT volume increased 6.0% and PET/CT volume increased 15.2%. Overall same-center volume, taking

into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 4.2% over the prior year's

Nine Month Financial Results

For the nine month period of 2023, RadNet reported

Revenue from its Imaging Centers reporting segment of $1,189 million and Adjusted EBITDA(1) of $176.8 million. Revenue increased

$145.7 million (or 14.0%) and Adjusted EBITDA(1) increased $29.3 million (or 19.9%). Including our AI reporting segment Revenue

of $7.4 million, Revenue was $1,196 million in the nine months of 2023, an increase of 14.3% from $1,046.2 million in last year's

nine month period. Including the AI reporting segment Adjusted EBITDA(1) losses, Adjusted EBITDA(1) for the nine

month period of 2023 was $166.5 million as compared with $135.2 million in the same nine month period of 2022.

For the nine month period in 2023, RadNet reported

Net Income of $4.9 million as compared with $11.6 million over the first nine months of 2022. Per share diluted Net Income for the first

nine months of 2023 was $0.08, compared to a diluted Net Income per share of $0.19 in the same nine month period of 2022 (based upon a

weighted average number of diluted shares outstanding of 63.2 million in 2023 and 57.0 million in 2022).

Affecting Net Income in the nine months of 2023

were certain non-cash expenses and unusual items including:

$3.2 million of severance paid in connection with

headcount reductions related to cost savings initiatives; $2.7 million expense related to leases for our de novo facilities under construction

that have yet to open their operations; $17.6 million of pre-tax losses related to our AI reporting segment (net of non-cash adjustments

related to contingent consideration and intangible AI assets); $915,000 loss from revaluation of certain acquisition contingent consideration;

$21.4 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $16.8

million gain on the contribution of imaging centers into the Santa Monica Imaging Group joint venture with Cedars-Sinai; and $746,000

of non-cash amortization of deferred financing costs and loan discounts related to financing fees paid as part of our existing credit

2023 Guidance Update

RadNet amends its previously announced guidance

Imaging Center Segment

Dr. Berger highlighted, "We elected to increase

our guidance level for Adjusted EBITDA(1) to reflect our continued strong operating performance. We have been consistently

outperforming our internal budget, which is a result of strong procedural volumes and Revenue and improved margins through active expense

management. We also raised our capital expenditure guidance range to account for the continued aggressive reinvestment of our cash flow

into expanding capacity, de novo facilities, hospital joint ventures and information technology solutions."