Full Press Release Details
LOS ANGELES, California, August 9, 2021 -
RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient
diagnostic imaging services through a network of 353 owned and/or operated outpatient imaging centers, today reported financial
results for its second quarter of 2021.
Dr. Howard Berger, President and Chief Executive
Officer of RadNet, commented, "I am extremely pleased with our financial results in the second quarter. We set all-time quarterly
records for Revenue and Adjusted EBITDA(1), and achieved an Adjusted EBITDA(1) margin of 17.0%, higher by 5.1% and
2.1% from the second quarters of 2020 and 2019, respectively. The strong operating performance was the result of recovering procedural
volumes in combination with lower costs as a result of actions we took during the COVID-19 period in 2020 and continued cost-containment
measures implemented in 2021. Additionally, improvements in our revenue cycle and cash collections have contributed to our improving results
and lower DSOs. We are seeing opportunity in virtually all aspects of our multi-faceted business. We project significant growth ahead
from the strategic capital investments we are making in equipment, our development efforts in artificial intelligence, the pipeline for
tuck-in acquisitions and discussions surrounding new hospital health system joint ventures."
Dr. Berger continued, "Given the positive
trends we are experiencing in our business and the strong financial performance of both the first and second quarters, we have elected
to further revise our guidance levels upwards. The increased 2021 guidance ranges for Revenue, Adjusted EBITDA(1) and Free
Cash Flow also anticipate improved operating margins. While our revised guidance is reflective of our confidence and optimism regarding
the rest of the year's performance, we remain cognizant of the possibility of an additional surge of COVID-19 or its Delta variant
in any or all of our regional markets, and are prepared to respond appropriately," added Dr. Berger.
Dr. Berger concluded, "On April 19th,
we announced that we received FDA clearance for our DeepHealth AI mammography triage software, Saige-QTM, which is a worklist
prioritization tool that enables radiologists to more effectively manage their mammography cases with the use of artificial intelligence.
We are in the process of deploying this technology across our various markets and are pleased to announce that we have completed installation
of this technology in our northeast and mid-Atlantic markets. We expect to complete nationwide deployment, to include our radiologists
in California, by the end of the third quarter. Early feedback from our radiologists is excellent. While we are observing improved productivity,
most importantly, we are providing our patients and payors with greater accuracy, fewer patient call-backs and the possibility of detecting
breast disease one to two years earlier than otherwise possible. We continue to evaluate further areas of AI that can improve effectiveness,
decrease costs and drive new revenue streams through providing innovative cost effective screening programs to large insurance companies
who are interested in new population health models to improve patient care."
Second Quarter Financial Results
For the second quarter of 2021, RadNet reported
Revenue of $333.9 million and Adjusted EBITDA(1) of $56.6 million. Revenue increased $143.4 million (or 75.2%) and Adjusted
EBITDA(1) increased $34.0 million (or 150.7%) from the second quarter of 2020.
Adjusted Diluted Net Income Attributable to RadNet,
Inc. Common Stockholders (Adjusted Earnings(3)) for the second quarter of 2021 was $14.2 million, or $0.27 per diluted share
as compared with Adjusted Net Loss of $6.9 million, or $(0.14) per diluted share for the same period in 2020. Unadjusted for one-time
items, Net Income Attributable to RadNet, Inc. Common Shareholders ("Net Income") for the second quarter of 2021 was $2.9
million, or $0.05 per diluted share. This compares to Net Loss of $10.6 million, or $(0.21) per diluted share, in the second quarter of
2020. These per share values are based upon weighted average number of diluted shares outstanding of 53.1 million in the second quarter
of 2021 and 50.7 million of diluted shares outstanding in the second quarter of 2020.
Affecting Net Income
in the second quarter of 2021 were certain non-cash expenses and non-recurring items including: $---8.9 million of non-cash employee stock
compensation expense; $268,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $1.6 million
gain on the disposal of certain capital equipment; $1.2 million of non-cash loss from interest rate swaps; $6.0 million expense
from debt restructuring and extinguishment as a result of our recent refinancing transaction; and $812,000
of amortization of deferred financing costs and loan discount related to our existing credit facilities.
For the second quarter of 2021, as compared with
the prior year's second quarter, MRI volume increased 88.1%, CT volume increased 67.6% and PET/CT volume increased 28.8%. Overall
volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 92.7% over the
prior year's second quarter. On a same-center basis, including only those centers which were part of RadNet for both the second
quarters of 2021 and 2020, MRI volume increased 73.0%, CT volume increased 54.9% and PET/CT volume increased 26.5%. Overall same-center
volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 80.5% from the
prior year's same quarter.
Six Month Financial Results
For the six months ended June 30, 2021, RadNet
reported Revenue of $649.2 million and Adjusted EBITDA(1) of $102.1 million. Revenue increased $177.1 million (or 37.5%) and
Adjusted EBITDA(1) increased $59.2 million (or 137.8%) from the same six month period last year.
For the six month period in 2021, RadNet reported
Net Income of $12.3 million, an increase of approximately $39.3 million over the first six months of 2020. Per share diluted Net
Income for the first six months of 2021 was $0.23, compared to a diluted Net Loss of $(0.53) in the same six month period of 2020 (based
upon a weighted average number of diluted shares outstanding of 52.9 million in 2021 and 50.5 million in 2020).
Affecting Net Income
for the six month period of 2021 were certain non-cash expenses and non-recurring items including: $17.1 million of non-cash employee
stock compensation expense; $551,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $2.9
million gain on the disposal of certain capital equipment; $8.8 million of non-cash gain from interest rate swaps; $6.0 million
expense from debt restructuring and extinguishment as a result of our recent refinancing transaction; and $2.0
million of amortization of deferred financing costs and loan discount related to our existing credit facilities.
2021 Guidance Update
RadNet amends its previously announced guidance
| Original Guidance Range | Revised Guidance Range After Q1 Results | Revised Guidance Range After Q2 Results | ||||
| Total Net Revenue | $1,250 - $1,300 million | $1,275 - $1,325 million | $1,300 - $1,350 million | |||
| Adjusted EBITDA (1) | $180 - $190 million | $187 - $197 million | $200 - $210 million | |||
| Capital Expenditures (a) | $70 - $75 million | $72 - $77 million | $80 - $85 million | |||
| Cash Interest Expense | $39 - $44 million | $35 - $40 million | $35 - $40 million | |||
| Free Cash Flow (b)(2) | $60 - $70 million | $70 - $80 million | $75 - $85 million |
Dr. Berger highlighted,
"Based upon the strong financial results in our first and second quarters and our confidence in projected performance for the remainder
of the year, we have increased guidance ranges for Revenue, Adjusted EBITDA(1) and
Free Cash Flow (2). Additionally, we have raised our
Capital Expenditures level to reflect additional investments in growth opportunities we have identified in several of our core regional
Conference Call for Today
Dr. Howard Berger, President and Chief Executive
Officer, and Mark Stolper, Executive Vice President and Chief Financial Officer, will host a conference call to discuss its second quarter
2021 results on Monday, August 9th, 2021 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Monday, August 9, 2021
Time: 10:30 a.m. Eastern Time
Dial In-Number: 888-394-8218
International Dial-In Number: 646-828-8193
It is recommended that participants dial
in approximately 5 to 10 minutes prior to the start of the 10:30 a.m. call. There will also be simultaneous and archived webcasts available
at http://public.viavid.com/index.php?id=146019 or http://www.radnet.com under the "Investors"
menu section and "News Releases" sub-menu of the website. An archived replay of the call will also be available and can be
accessed by dialing 844-512-2921 from the U.S., or 412-317-6671 for international callers, and using the passcode 3277272.
Forward Looking Statements
This press release contains "forward-looking
statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements are expressions of our current beliefs, expectations and assumptions regarding the future of our business, future plans and
strategies, projections, and anticipated future conditions, events and trends. Forward-looking statements can generally be identified
by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods. Forward-looking statements in this
press release include, among others, statements we make regarding response to and the expected future impacts of COVID-19, including statements
about our anticipated business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing ability to
service or refinance our current indebtedness.