FOR IMMEDIATE RELEASE
RadNet Reports Third Quarter 2009 Results
· | Adjusting for a non-cash charge from prior fiscal years, RadNet reports quarterly Revenue of $134.9 million and Adjusted EBITDA(1)of $27.0 million (Revenue of $133.4 million and EBITDA of $25.5 million prior to adjusting for the charge) |
· | Overall procedure volumes increased 4.9% over the prior year’s same quarter |
· | Per share loss, adjusting for the non-cash charge, was $(0.01) per share compared to $0.0 per share for the three month period ended September 30, 2008 (Per share loss was $(0.05) for the third quarter of 2009 prior to adjusting for the charge) |
LOS ANGELES, Calif., November 9, 2009 – RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers, today reported financial results for its third quarter ended September 30, 2009.
Three Month Report
For the three months ended September 30, 2009, RadNet reported Revenue and Adjusted EBITDA(1) of $133.4 million and $25.5 million, respectively. The results included a $1.5 million non-cash charge for increasing the contractual allowance on Accounts Receivable from services provided in 2008 and prior fiscal years. Adjusting for this $1.5 million addition to the contractual allowance which lowered Revenue and Adjusted EBITDA(1) in the quarter by $1.5 million, Revenue would have been $134.9 million, an increase of 3.1% (or $4.0 million) over the prior year’s same quarter and Adjusted EBITDA(1) would have been $27.0 million, a decrease of 4.0% (or $1.1 million) over the prior year’s same quarter.
Additionally, the quarter reflects decreased Revenue and Adjusted EBITDA(1) as a result of the completion of RadNet’s contract with twenty facilities that it managed, but did not own. This contract, which expired during the second quarter of 2009, contributed to the results of the third quarter of 2008, but did not contribute to the results of the third quarter of 2009.
For the third quarter of 2009, as compared to the prior year’s same quarter, MRI volume increased 6.8%, CT volume increased 5.8% and PET/CT volume increased 4.3%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 4.9% over the prior year’s quarter.
On a same-center basis, including only those centers which were part of RadNet for both the third quarters of 2009 and 2008, MRI volume increased 5.4%, CT volume increased 4.0% and PET/CT volume increased 4.3%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 3.2% over the prior year’s same quarter.
1 Definition of Adjusted EBITDA, a non-GAAP measure, is found on the last page of this release.
Net Loss for the third quarter of 2009 was $1.7 million, or $(0.05) per share, compared to Net Income of $138,000 or $0.0 per share, reported for the three month period ended September 30, 2008 (based upon a weighted average number of shares outstanding of 36.1 million and 37.0 million for these periods in 2009 and 2008, respectively). Adjusting for the $1.5 million increase to the contractual allowance which lowered Net Income in the quarter by $1.5 million, Net Loss for the third quarter of 2009 would have been $0.2 million, or $(0.01) per share. Affecting Net Loss in the third quarter of 2009 were certain non-cash expenses or non-recurring items including:
| · | $1.5 million non-cash charge to increase our allowance reserve for uncollectible accounts receivable; |
| · | $1.8 million non-cash amortization expense with respect to interest rate swaps related to the Company’s credit facilities; |
| · | $670,000 of Deferred Financing Expense related to the amortization of financing fees paid as part of the Company’s $405 million credit facilities drawn down in November 2006 in connection with the Radiologix acquisition and the incremental term loans and revolving credit facility arranged in August 2007 and February 2008; and |
| · | $713,000 of non-cash employee stock compensation expense resulting from the vesting of certain options and warrants. |
“We are encouraged by our increased volumes and revenue for the third quarter of 2009 when compared to the third quarter of 2008, despite a very challenging economic environment,” said Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet. “Our profitability suffered during the quarter from a $1.5 million non-cash reserve we recorded against the collectability of receivables from prior fiscal years and the termination of our RadNet Imaging Management Services management contract. But for these two issues, we would have had both increasing EBITDA and Net Income when compared to the third quarter of last year.”
“Our strong cash flow during the quarter enabled us to repay the $1.4 million outstanding balance on our revolving credit facility in addition to repaying $6.0 million of term debt, capital leases and other notes. Even after such repayments, we had $1.2 million of cash on our balance sheet as of the end of the quarter,” added Dr. Berger.
Dr. Berger noted, “The final rule regarding Medicare pricing for 2010 as released by the Centers for Medicare and Medicaid Services (CMS) on October 30th will result in a smaller than anticipated reduction in our 2010 Medicare reimbursement, which is considerably more favorable to us than that which CMS originally proposed in July of this year. We anticipate being able to fully mitigate the reimbursement reduction through several cost savings initiatives which we had already planned to implement in 2010.”
“We continue to see opportunities for consolidation. The uncertainty of healthcare reform, the continuing tight credit markets and the lower Medicare rates for 2010 will further apply pressure to the smaller, less capitalized operators in our industry. We continue to believe that we will benefit from the types of consolidation opportunities on which we have been capitalizing in recent quarters” added Dr. Berger.
2009 Fiscal Year Guidance
RadNet is updating its guidance ranges as follows:
| | Previous Guidance Range | Updated Guidance Range |
| Revenue | $515 million - $545 million | $515 million - $535 million |
Adjusted EBITDA(1) | $105 million - $115 million | $105 million - $110 million |
| Capital Expenditures | $30 million - $35 million | $38 million - $40 million |
| Cash Interest Expense | $41 million - $45 million | $41 million - $45 million |
| Free Cash Flow Generation (a) | $25 million - $35 million | $20 million - $30 million |
| End of Year Net Debt Balance (b) | $438 million - $448 million | $445 million - $450 million |
(a) Defined by the Company as Adjusted EBITDA(1) less total capital expenditures and cash interest paid
(b) Total Debt net of Cash.
Nine Month Report
For the nine months ended September 30, 2009, RadNet reported Revenue and Adjusted EBITDA(1) of $392.6 million and $78.9 million, respectively. Adjusting for the $1.5 million of additional contractual allowance we recorded in the third quarter of 2009 which lowered Revenue and Adjusted EBITDA(1) by $1.5 million, Revenue would have been $394.1 million, an increase of 6.1% (or $22.7 million) over the prior year’s same nine months and Adjusted EBITDA(1) would have been $80.4 million, an increase of 5.9% (or $4.5 million) over the prior year’s same nine months.
For the nine months of 2009, as compared to the prior year’s same nine months, MRI volume increased 9.9%, CT volume increased 7.5% and PET/CT volume increased 5.1%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 6.2% over the prior year’s nine months.
Net Loss for the nine months of 2009 was $2.9 million, or $(0.08) per share, compared to a net loss of $7.5 million or $(0.21) per share, reported for the nine month period ended September 30, 2008 (based upon a weighted average number of shares outstanding of 36.0 million and 35.7 million for these periods in 2009 and 2008, respectively). Adjusting for the $1.5 million increase to the contractual allowance which lowered Net Income in the nine month period by $1.5 million, Net Loss for the nine months of 2009 would have been $1.4 million, or $(0.04) per share. Affecting Net Loss in the nine months of 2009 were certain non-cash expenses or non-recurring items including:
| · | $1.5 million non-cash charge to increase our allowance reserve for uncollectible accounts receivable; |
| · | $4.8 million non-cash amortization expense with respect to interest rate swaps related to the Company’s credit facilities; |
| · | $2.0 million of Deferred Financing Expense related to the amortization of financing fees paid as part of the Company’s $405 million credit facilities drawn down in November 2006 in connection with the Radiologix acquisition and the incremental term loans and revolving credit facility arranged in August 2007 and February 2008; |
| · | $2.9 million of non-cash employee stock compensation expense resulting from the vesting of certain options and warrants; |
| · | $1.4 million bargain purchase gain on the acquisition of acquired centers in New Jersey; and |
| · | $1.0 million loss related to the resolution of legal disputes. |
Third Quarter 2009 Earnings Conference Call
RadNet will host a conference call to discuss its third quarter 2009 results on Monday, November 9th, 2009 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Investors are invited to listen to RadNet’s conference call by dialing 877-548-7901. International callers can dial 719-325-4896. There will also be simultaneous and archived webcasts available at 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 until November 16th and can be accessed by dialing 888-203-1112 from the U.S., or 719-457-0820 for international callers, and using the passcode 6413789.
Regulation G: GAAP and Non-GAAP Financial Information
This release contains certain financial information not reported in accordance with GAAP. RadNet uses both GAAP and non-GAAP metrics to measure its financial results. The Company believes that, in addition to GAAP metrics, these non-GAAP metrics assist RadNet in measuring its performance. RadNet believes this information is useful to investors and other interested parties because it removes unusual and nonrecurring charges that occur in the affected period and provides a basis for measuring the Company's financial condition against other quarters. Such information should not be considered as a substitute for any measures calculated in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliation of this information to the most comparable GAAP measures is included in this release in the tables which follow.
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 175 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Maryland, Delaware, New Jersey and New York. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees. For more information, visit http://www.radnet.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning RadNets’ ability to continue to grow its business by generating patient referrals and contracts with radiology practices, future acquisitions, cost savings, successful integration of acquired operations, the impact of government programs, and receiving third-party reimbursement for diagnostic imaging services, as well as RadNet's financial guidance, its statements regarding increased business from new operations, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause RadNet's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet's business and its financial results are detailed in its most recent Annual Report on Form 10-K and Form 10Q, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
CONTACTS:
RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
Integrated Corporate Relations, Inc.
John Mills, 310-954-1105
jmills@icrinc.com
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE DATA)
| | | September 30, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (unaudited) | | | | |
| ASSETS |
| CURRENT ASSETS | | | | | | |
| Cash and cash equivalents | | $ | 1,198 | | | $ | - | |
| Accounts receivable, net | | | 92,264 | | | | 96,097 | |
| Refundable income taxes | | | 154 | | | | 103 | |
| Prepaid expenses and other current assets | | | 9,528 | | | | 12,370 | |
| Total current assets | | | 103,144 | | | | 108,570 | |
| | | | | | | | | |
| PROPERTY AND EQUIPMENT, NET | | | 182,945 | | | | 193,104 | |
| OTHER ASSETS | | | | | | | | |
| Goodwill | | | 105,378 | | | | 105,278 | |
| Other intangible assets | | | 54,703 | | | | 56,861 | |
| Deferred financing costs, net | | | 8,898 | | | | 10,907 | |
| Investment in joint ventures | | | 17,939 | | | | 17,637 | |
| Deposits and other | | | 3,160 | | | | 3,752 | |
| Total assets | | $ | 476,167 | | | $ | 496,109 | |
| LIABILITIES AND EQUITY |
| CURRENT LIABILITIES | | | | | | | | |
| Accounts payable and accrued expenses | | $ | 66,565 | | | $ | 81,175 | |
| Due to affiliates | | | 3,061 | | | | 5,015 | |
| Notes payable | | | 7,103 | | | | 5,501 | |
| Current portion of deferred rent | | | 506 | | | | 390 | |
| Obligations under capital leases | | | 14,851 | | | | 15,064 | |
| Total current liabilities | | | 92,086 | | | | 107,145 | |
| | | | | | | | | |
| LONG-TERM LIABILITIES | | | | | | | | |
| Line of credit | | | - | | | | 1,742 | |
| Deferred rent, net of current portion | | | 8,494 | | | | 7,996 | |
| Deferred taxes | | | 277 | | | | 277 | |
| Notes payable, net of current portion | | | 418,248 | | | | 419,735 | |
| Obligations under capital lease, net of current portion | | | 17,089 | | | | 24,238 | |
| Other non-current liabilities | | | 18,434 | | | | 16,006 | |
| Total liabilities | | | 554,628 | | | | 577,139 | |
| | | | | | | | | |
| COMMITMENTS AND CONTINGENCIES | | | | | | | | |
| | | | | | | | | |
| EQUITY DEFICIT | | | | | | | | |
| Common stock - $.0001 par value, 200,000,000 shares authorized; | | | | | | | | |
| 36,184,279 and 35,911,474 shares issued and outstanding at | | | | | | | | |
| September 30, 2009 and December 31, 2008, respectively | | | 4 | | | | 4 | |
| Paid-in-capital | | | 155,943 | | | | 153,006 | |
| Accumulated other comprehensive loss | | | (3,841 | ) | | | (6,396 | ) |
| Accumulated deficit | | | (230,626 | ) | | | (227,722 | ) |
| Total Radnet, Inc.'s equity deficit | | | (78,520 | ) | | | (81,108 | ) |
| Noncontrolling interests | | | 59 | | | | 78 | |
| Total equity deficit | | | (78,461 | ) | | | (81,030 | ) |
| Total liabilities and equity deficit | | $ | 476,167 | | | $ | 496,109 | |
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE DATA)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| NET REVENUE | | $ | 133,404 | | | $ | 130,902 | | | $ | 392,553 | | | $ | 371,358 | |
| | | | | | | | | | | | | | | | | |
| OPERATING EXPENSES | | | | | | | | | | | | | | | | |
| Operating expenses | | | 101,924 | | | | 99,552 | | | | 298,653 | | | | 286,404 | |
| Depreciation and amortization | | | 13,593 | | | | 13,083 | | | | 39,979 | | | | 39,623 | |
| Provision for bad debts | | | 8,386 | | | | 7,065 | | | | 24,729 | | | | 20,640 | |
| Loss on sale of equipment | | | 72 | | | | 1,525 | | | | 375 | | | | 1,495 | |
| Severance costs | | | 286 | | | | 137 | | | | 643 | | | | 172 | |
| | | | | | | | | | | | | | | | | |
| Total operating expenses | | | 124,261 | | | | 121,362 | | | | 364,379 | | | | 348,334 | |
| | | | | | | | | | | | | | | | | |
| INCOME FROM OPERATIONS | | | 9,143 | | | | 9,540 | | | | 28,174 | | | | 23,024 | |
| | | | | | | | | | | | | | | | | |
| OTHER EXPENSES (INCOME) | | | | | | | | | | | | | | | | |
| Interest expense | | | 12,367 | | | | 12,126 | | | | 37,715 | | | | 38,230 | |
| Gain on bargain purchase | | | - | | | | - | | | | (1,387 | ) | | | - | |
| Other expenses (income) | | | (2 | ) | | | (79 | ) | | | 1,239 | | | | (132 | ) |
| | | | | | | | | | | | | | | | | |
| Total other expenses | | | 12,365 | | | | 12,047 | | | | 37,567 | | | | 38,098 | |
| | | | | | | | | | | | | | | | | |
LOSS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES | | | (3,222 | ) | | | (2,507 | ) | | | (9,393 | ) | | | (15,074 | ) |
| Provision for income taxes | | | (231 | ) | | | (14 | ) | | | (281 | ) | | | (151 | ) |
| Equity in earnings of joint ventures | | | 1,751 | | | | 2,686 | | | | 6,839 | | | | 7,815 | |
| | | | | | | | | | | | | | | | | |
| NET INCOME (LOSS) | | | (1,702 | ) | | | 165 | | | | (2,835 | ) | | | (7,410 | ) |
| Net income attributable to noncontrolling interests | | | 24 | | | | 27 | | | | 69 | | | | 76 | |
| | | | | | | | | | | | | | | | | |
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS | | $ | (1,726 | ) | | $ | 138 | | | $ | (2,904 | ) | | $ | (7,486 | ) |
| | | | | | | | | | | | | | | | | |
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS | | $ | (0.05 | ) | | $ | 0.00 | | | $ | (0.08 | ) | | $ | (0.21 | ) |
| | | | | | | | | | | | | | | | | |
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS | | $ | (0.05 | ) | | $ | 0.00 | | | $ | (0.08 | ) | | $ | (0.21 | ) |
| | | | | | | | | | | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING | | | | | | | | | | | | | | | | |
| Basic | | | 36,105,149 | | | | 35,759,779 | | | | 35,982,558 | | | | 35,669,400 | |
| | | | | | | | | | | | | | | | | |
| Diluted | | | 36,105,149 | | | | 37,014,784 | | | | 35,982,558 | | | | 35,669,400 | |
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
| | | Nine Months Ended | |
| | | September 30, | |
| | | 2009 | | | 2008 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | |
| Net loss | | $ | (2,835 | ) | | $ | (7,410 | ) |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 39,979 | | | | 39,623 | |
| Provision for bad debts | | | 24,729 | | | | 20,640 | |
| Equity in earnings of joint ventures | | | (6,839 | ) | | | (7,815 | ) |
| Distributions from joint ventures | | | 6,852 | | | | 4,286 | |
| Deferred rent amortization | | | 614 | | | | 3,071 | |
| Amortization of deferred financing cost | | | 2,009 | | | | 1,862 | |
| Net loss on disposal of assets | | | 375 | | | | 1,495 | |
| Gain on bargain purchase | | | (1,387 | ) | | | - | |
| Amortization of cash flow hedge | | | 4,895 | | | | - | |
| Share-based compensation | | | 2,937 | | | | 1,887 | |
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | | | | | | | | |
| Accounts receivable | | | (20,896 | ) | | | (37,619 | ) |
| Other current assets | | | 3,213 | | | | 810 | |
| Other assets | | | 592 | | | | (282 | ) |
| Accounts payable and accrued expenses | | | (3,988 | ) | | | 1,793 | |
| Net cash provided by operating activities | | | 50,250 | | | | 22,341 | |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
| Purchase of imaging facilities | | | (3,917 | ) | | | (28,649 | ) |
| Proceeds from sale of imaging facilities | | | 650 | | | | - | |
| Purchase of property and equipment | | | (22,805 | ) | | | (20,950 | ) |
| Proceeds from sale of equipment | | | - | | | | 166 | |
| Purchase of equity interest in joint ventures | | | (315 | ) | | | (728 | ) |
| Net cash used in investing activities | | | (26,387 | ) | | | (50,161 | ) |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
| Principal payments on notes and leases payable | | | (17,684 | ) | | | (13,976 | ) |
| Proceeds from borrowings on notes payable | | | - | | | | 35,000 | |
| Deferred financing costs | | | - | | | | (4,277 | ) |
| Net (payments) proceeds on line of credit | | | (1,742 | ) | | | 10,877 | |
| Distributions to counterparties of cash flow hedges | | | (3,151 | ) | | | - | |
| Distributions to noncontrolling interests | | | (88 | ) | | | (205 | ) |
| Proceeds from issuance of common stock | | | - | | | | 383 | |
| Net cash (used in) provided by financing activities | | | (22,665 | ) | | | 27,802 | |
| | | | | | | | | |
| NET INCREASE (DECREASE) IN CASH | | | 1,198 | | | | (18 | ) |
| CASH AND CAH EQUIVALENTS, beginning of period | | | - | | | | 18 | |
| CASH AND CASH EQUIVALENTS, end of period | | $ | 1,198 | | | $ | - | |
| | | | | | | | | |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | | | | | | | | |
| Cash paid during the period for interest | | $ | 32,046 | | | $ | 36,529 | |
RADNET, INC.
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO Adjusted EBITDA(1)
| | | Three Months Ended | |
| | | September 30, | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| Income from Operations | | $ | 9,143 | | | $ | 9,540 | |
| Plus Depreciation and Amortization | | | 13,593 | | | | 13,083 | |
| Plus Equity in Earnings of Joint Ventures | | | 1,751 | | | | 2,686 | |
| Plus Non Cash Employee Stock Compensation | | | 713 | | | | 831 | |
| Plus Loss on Disposal of Equipment | | | 72 | | | | 1,525 | |
| Plus One-Time Adjustment to Acquired Accounts Receivable of Breastlink | | | - | | | | 383 | |
| Less Net Income Attributable to Noncontrolling Interests | | | (24 | ) | | | (27 | ) |
| Subtotal | | | 25,248 | | | | 28,021 | |
| Plus Severance: Elimination of Corporate Personnel | | | 286 | | | | 137 | |
Adjusted EBITDA(1) | | $ | 25,534 | | | $ | 28,158 | |
| | | Nine Months Ended | |
| | | September 30, | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| Income from Operations | | $ | 28,174 | | | $ | 23,024 | |
| Plus Depreciation and Amortization | | | 39,979 | | | | 39,623 | |
| Plus Equity in Earnings of Joint Ventures | | | 6,839 | | | | 7,815 | |
| Plus Non Cash Employee Stock Compensation | | | 2,936 | | | | 1,887 | |
| Plus Loss on Disposal of Equipment | | | 375 | | | | 1,495 | |
| Plus One-Time Adjustment to Acquired Accounts Receivable of Breastlink | | | - | | | | 383 | |
| Less Net Income Attributable to Noncontrolling Interests | | | (69 | ) | | | (76 | ) |
| Subtotal | | | 78,234 | | | | 74,151 | |
| Plus Severance: Elimination of Corporate Personnel | | | 643 | | | | 172 | |
| Plus One Time Consulting Fees Related to Review of 2006 Accounts Receivables | | | - | | | | 200 | |
| Plus One Time Expense Related to Business Dispute Settlements | | | - | | | | 1,393 | |
Adjusted EBITDA(1) | | $ | 78,877 | | | $ | 75,916 | |
| | | Third Quarter | | | Full Year | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| Commercial Insurance | | | 55.5 | % | | | 56.6 | % |
| Medicare | | | 19.9 | % | | | 19.6 | % |
| Capitation | | | 15.6 | % | | | 15.0 | % |
| Workers Compensation/Personal Injury | | | 3.5 | % | | | 3.7 | % |
| Medicaid | | | 3.3 | % | | | 3.1 | % |
| Other | | | 2.2 | % | | | 2.0 | % |
| | | | 100.00 | % | | | 100.0 | % |
Note
Based upon global payments received from consolidated Imaging Centers from that period's dates of service. Excludes payments from hospital contracts, Breastlink, Center Management Fees and other miscellaneous operating activities.
RADNET PAYMENTS BY MODALITY
| | | Third Quarter | | | Full Year | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| MRI | | | 34.0 | % | | | 34.2 | % |
| CT | | | 19.1 | % | | | 19.0 | % |
| PET/CT | | | 6.0 | % | | | 6.2 | % |
| X-ray | | | 9.6 | % | | | 10.8 | % |
| Ultrasound | | | 10.2 | % | | | 10.2 | % |
| Mammography | | | 16.3 | % | | | 14.9 | % |
| Nuclear Medicine | | | 1.7 | % | | | 1.6 | % |
| Other | | | 3.0 | % | | | 3.1 | % |
| | | | 100.00 | % | | | 100.0 | % |
Note
Based upon global payments received from consolidated Imaging Centers from that period's dates of service. Excludes payments from hospital contracts, Breastlink, Center Management Fees and other miscellaneous operations.
RADNET AVERAGE PAYMENTS BY MODALITY
| | | Third Quarter | | | Full Year | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| MRI | | $ | 503 | | | $ | 505 | |
| CT | | | 308 | | | | 310 | |
| PET/CT | | | 1,496 | | | | 1,494 | |
| X-ray | | | 38 | | | | 37 | |
| Ultrasound | | | 108 | | | | 107 | |
| Mammography | | | 134 | | | | 134 | |
| Nuclear Medicine | | | 322 | | | | 327 | |
| Other | | | 126 | | | | 129 | |
Note
Based upon global payments received from consolidated Imaging Centers from that period's dates of service. Excludes payments from hospital contracts, Breastlink, Center Management Fees and other miscellaneous operating activities.
Footnotes
(1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and adjusted for losses or gains on the disposal of equipment, debt extinguishments and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts minority interests in subsidiaries, and is adjusted for non-cash, unusual or infrequent events taken place during the period.
Adjusted EBITDA is reconciled to its nearest comparable GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance, and is a measure of leverage capacity and ability to service debt. Adjusted EBITDA should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
