updated 3/8/2011 6:16:58 AM ET 2011-03-08T11:16:58

  • For the fourth quarter, RadNet reports record Revenue of $145.3 million and record Adjusted EBITDA(1) of $30.2 million; increases of 10.2% and 11.8%, respectively, over the prior year's quarter

  • Fourth quarter 2010 Net Income was $3.3 million as compared with Net Income of $637,000 from last year's fourth quarter; fourth quarter 2010 per share Net Income was $0.09 compared to a per share Net Income of $0.02 for the prior year's quarter

  • For the year, RadNet reports record annual Revenue of $548.5 million and record annual Adjusted EBITDA(1)of $106.2 million; increases of 4.6% and 0.3%, respectively, over the prior year's results

  • For the year, RadNet reports a per share net loss of $(0.35) compared to a per share loss of $(0.06)in the prior year; 2010 per share loss would have been $(0.08), excluding the Loss on Extinguishment of Debt from RadNet's April 6, 2010 $585 million debt refinancing

  • RadNet announces 2011 guidance, including expected increases in Revenue and Adjusted EBITDA(1)

LOS ANGELES, March 8, 2011 (GLOBE NEWSWIRE) -- (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 201 owned and/or operated outpatient imaging centers (inclusive of 19 facilities held in Joint Ventures), today reported financial results for its fourth quarter and full year ended December 31, 2010.

Financial Results

Fourth Quarter Report:

For the fourth quarter of 2010, RadNet reported Revenue, Adjusted EBITDA(1) and Net Income of $145.3 million, $30.2 million and $3.3 million, respectively. Revenue increased $13.5 million (or 10.2%), Adjusted EBITDA(1) increased $3.2 million (or 11.8%) and Net Income increased $2.7 million (or 418.1%) over the fourth quarter of 2009. On a sequential year-over-year basis, compared with the first, second and third quarters of 2010, Revenue increased $21.1 million (or 17.0%), $6.4 million (or 4.6%) and $5.2 million (or 3.7%), respectively. On a sequential basis, compared with the first, second and third quarters of 2010, Adjusted EBITDA(1) increased $9.7 million (or 47.1%), $2.8 million (or 10.0%) and $2.1 million (or 7.6%), respectively.

Net Income for the fourth quarter was $0.09 per share, compared with a Net Income of $0.02 per share in the fourth quarter of 2009 (based upon a weighted average number of fully diluted shares outstanding of 37.8 million and 37.4 million for these periods in 2010 and 2009, respectively). Excluding non-cash gains from the mark-to-market of our interest rate swaps of $1.8 million, a $306,000 non-cash charge to interest expense related to the amortization of accumulated unrealized losses on interest rate swaps, losses from the disposal of equipment of $530,000 and non-cash stock compensation of $898,000, RadNet would have reported Net Income of $3.2 million, or $0.08 per fully diluted share, for the fourth quarter of 2010 compared with a Net Income of $1.5 million, or $0.04 per share, for the fourth quarter of 2009 excluding those same non-cash losses and expenses.

Also affecting Net Income in the fourth quarter of 2010 were certain other non-cash expenses and non-recurring items, including $107,000 of severance paid in connection with employee reductions related to cost savings initiatives and $723,000 of non-cash Deferred Financing Expense related to the amortization of financing fees paid as part of our new credit facilities and senior unsecured notes.

For the fourth quarter of 2010, as compared with the prior year's fourth quarter, MRI volume increased 16.4%, CT volume increased 4.6% and PET/CT volume decreased 7.4%. 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 fourth quarters of 2010 and 2009, MRI volume increased 7.9%, CT volume decreased 6.7% and PET/CT volume decreased 10.3%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 0.5% over the prior year's same quarter.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, "We are pleased to have ended 2010 with strong fourth quarter results. In the fourth quarter, we obtained record Revenues, Adjusted EBITDA(1) and Net Income. Our results illustrate the strength of our operating model. Relative size and operating efficiency remain increasingly important in our industry, particularly in what is a very challenged economic and reimbursement climate. While we observe the struggles of many of our competitors, our multi-modality approach and geographic clustering operating model has made RadNet a resilient and stable operating force in our industry." 

"We are particularly excited about the future opportunities for RadNet. In the last few months, we have taken important strategic steps towards broadening the scope of our Company. Our entrances into the radiology software and teleradiology businesses have already begun to widen the scope of opportunities we are pursuing. In particular, we are excited about the potential for new partnerships with major hospital and health systems, where we are now able to offer a multi-disciplined approach of diversified radiology solutions. Furthermore, after experiencing an operating environment in 2010 where the general utilization of healthcare services was depressed, we have begun to see stabilization of procedural volumes at our centers. This provides us encouragement as we move further into 2011."

Annual Report:

For full year 2010, the Company reported Revenue, Adjusted EBITDA(1) and Net Loss of $548.5 million, $106.2 million and $(12.9) million, respectively. Revenue increased $24.2 million (or 4.6%), Adjusted EBITDA(1) increased $0.3 million (or 0.3%) and Net Loss increased $10.6 million, respectively, from full year 2009 results.

The increase in Net Loss in 2010 was primarily the result of a $9.9 million Loss on Debt Extinguishment related to our debt refinancing transaction we completed in April of 2010. Excluding the Loss on Debt Extinguishment, Net Loss for 2010 would have been $(0.08) per share, compared to a Net Loss of $(0.06) per share in 2009 (based upon a weighted average number of basic shares outstanding of 36.9 million and 36.0 million in 2010 and 2009, respectively). Affecting Net Loss in 2010 were certain non-cash expenses and non-recurring items including: $3.7 million of non-cash employee stock compensation expense resulting from the vesting of certain options and warrants; $2.8 million of non-cash Deferred Financing Expense related to the amortization of financing fees paid as part of our existing credit facilities; $0.8 million of severance paid in connection with the headcount reductions related to cost savings initiatives from previously announced acquisitions; $1.1 million loss on the disposal of certain capital equipment; and $917,000 non-cash charge to interest expense related to the amortization of accumulated unrealized losses on interest rate swaps related to the Company's credit facilities.

For the year ended December 31, 2010, as compared to 2009, MRI volume increased 7.9%, CT volume decreased 0.6% and PET/CT volume decreased 5.1%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 4.4% for the twelve months of 2010 over 2009.

2011 Fiscal Year Guidance

For its 2011 fiscal year, RadNet announces its guidance ranges as follows: 

Revenue $575 million - $605 million
Adjusted EBITDA(1) $110 million - $120 million
Capital Expenditures (a) $35 million - $40 million
Cash Interest Expense $45 million - $49 million
Free Cash Flow Generation (b) $25 million - $35 million
 
(a) Net of proceeds from the sale of equipment.
(b) Defined by the Company as Adjusted EBITDA(1) less total capital expenditures and cash paid for interest.

"Our guidance reflects our belief that we will continue to grow both our revenue and EBITDA in 2011," said Dr. Berger. "Although we see a stabilization of procedural volumes and have reason to believe we could experience some volume increases in 2011, the midpoint of our guidance assumes flat same center revenue as compared with 2010. We are anticipating Revenue and Adjusted EBITDA(1) contribution in 2011 from the several acquisitions we completed at various times during 2010, as well as the recently announced acquisitions of Imaging On Call and Diagnostic Health businesses in 2011. We are also anticipating that we will achieve certain cost reductions necessary to substantially mitigate reimbursement cuts to which we are subject in 2011," added Dr. Berger.

Actual 2010 Results vs. 2010 Guidance:

The following compares the Company's actual 2010 performance with previously announced guidance levels. 

  Updated Guidance Range Actual Results
Revenue $540 million - $560 million $548.5 million
Adjusted EBITDA(1) $107 million - $111 million $106.2 million
Capital Expenditures (a) $34 million - $38 million $39.6 million
Cash Interest Expense $42 million - $47 million $40.4 million
Free Cash Flow Generation (b) $25 million - $35 million $26.2 million
     
(a) Net of proceeds from the sale of equipment.
(b) Defined by the Company as Adjusted EBITDA(1) less total capital expenditures and cash paid for interest.

Dr. Berger commented, "Despite a more challenged economy and operating environment than we could have predicted when we set our original guidance for 2010, our Revenue and Free Cash Flow Generation fell in-line with our guidance levels, while we benefited from a lower Cash Interest Expense than we had anticipated. Our Adjusted EBITDA(1) performance was below our range by about $800,000, despite a larger than anticipated negative effect of severe weather in our first quarter and lower than expected utilization of healthcare services in 2010 which impacted our same center volumes. We were pleased that after the first quarter, we showed substantial sequential improvement in our Adjusted EBITDA(1) and operating margins. We attribute much of this improvement throughout 2010 to our ability to closely manage and reduce operating costs, drive efficiencies from acquired entities and drive increased procedural volumes as the year progressed."  

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 today, at 10:30 a.m. Eastern Standard Time. During the call management, will discuss the Company's 2010 fourth quarter and year-end results.

Conference Call Details:

Date: Tuesday, March 8, 2011

Time: 10:30 a.m. EST

Dial In-Number: 888-797-2983

International Dial-In Number: 913-312-0409

There will also be simultaneous and archived webcasts available at http://viavid.net/dce.aspx?sid=000081C2 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 877-870-5176 from the U.S., or 858-384-5517 for international callers, and using the passcode 6797865.

Regulation G: GAAP and Non-GAAP Financial Information

This release contains certain financial information not reported in accordance with GAAP. The Company 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 the Company in measuring its cash-based performance. The Company 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 201 owned and/or operated outpatient imaging centers (inclusive of 19 facilities held in Joint Ventures). 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 4,500 employees. For more information, visit http://www.radnet.com.

The RadNet, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7212

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 successfully integrating acquired operations, successfully achieving 2011 financial guidance, achieving cost savings, successfully developing and integrating new lines of business, continuing to grow its business by generating patient referrals and contracts with radiology practices, and receiving third-party reimbursement for diagnostic imaging services, 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 the Company'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, 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.

 
 
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE DATA)
 
   December 31, 
  2010 2009
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents  $ 627  $ 10,094
Accounts receivable, net  96,094  87,825
Prepaid expenses and other current assets  14,304  9,990
Total current assets  111,025  107,909
PROPERTY AND EQUIPMENT, NET  194,230  182,571
OTHER ASSETS    
Goodwill  143,353  106,502
Other intangible assets  57,348  54,313
Deferred financing costs, net  15,486  8,229
Investment in joint ventures  15,444  18,741
Deposits and other  2,628  2,406
Total assets  $ 539,514  $ 480,671
LIABILITIES AND EQUITY DEFICIT    
CURRENT LIABILITIES    
Accounts payable and accrued expenses  $ 82,619  $ 69,641
Due to affiliates  2,975  7,456
Deferred revenue  1,568  - 
Current portion of notes payable  8,218  6,927
Current portion of deferred rent  745  560
Current portion of obligations under capital leases  9,139  14,121
Total current liabilities  105,264  98,705
LONG-TERM LIABILITIES    
Deferred rent, net of current portion  10,379  8,920
Deferred taxes  277  277
Notes payable, net of current portion  481,578  416,699
Obligations under capital lease, net of current portion  5,639  13,568
Other non-current liabilities  18,850  17,263
Total liabilities  621,987  555,432
COMMITMENTS AND CONTINGENCIES    
     
EQUITY DEFICIT    
Common stock - $.0001 par value, 200,000,000 shares authorized; 37,223,475 and 36,259,279 shares issued and outstanding at December 31, 2010 and 2009, respectively  4  4
Paid-in-capital  162,444  156,758
Accumulated other comprehensive loss  (2,137)  (1,588)
Accumulated deficit  (242,841)  (229,989)
Total RadNet, Inc.'s equity deficit  (82,530)  (74,815)
Noncontrolling interests  57  54
Total equity deficit  (82,473)  (74,761)
Total liabilities and equity deficit  $ 539,514  $ 480,671
     
     
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS 
(IN THOUSANDS EXCEPT SHARE DATA)
 
  Years Ended December 31, 
  2010 2009 2008
       
NET REVENUE  $ 548,537  $ 524,368  $ 498,815
       
OPERATING EXPENSES      
Cost of operations  420,973  397,753  384,297
Depreciation and amortization  53,997  53,800  53,548
Provision for bad debts  33,158  32,704  30,832
Loss on sale of equipment  1,136  523  516
Severance costs  838  731  335
Total operating expenses  510,102  485,511  469,528
       
       
INCOME FROM OPERATIONS  38,435  38,857  29,287
       
OTHER EXPENSES (INCOME)      
Interest expense  48,398  50,016  51,811
Gain on bargain purchase  -   (1,387)  - 
Loss on extinguishment of debt  9,871  -   - 
Other expenses (income)  505  416  (151)
Total other expenses  58,774  49,045  51,660
       
LOSS BEFORE INCOME TAXES AND EQUITY      
IN EARNINGS OF JOINT VENTURES  (20,339)  (10,188)  (22,373)
Provision for income taxes  (576)  (443)  (151)
Equity in earnings of joint ventures  8,230  8,456  9,791
NET LOSS  (12,685)  (2,175)  (12,733)
Net income attributable to noncontrolling interests  167  92  103
NET LOSS ATTRIBUTABLE TO RADNET, INC.       
COMMON STOCKHOLDERS  $ (12,852)  $ (2,267)  $ (12,836)
       
BASIC AND DILUTED NET LOSS PER SHARE ATTRIBUTABLE      
TO RADNET, INC. COMMON STOCKHOLDERS  $ (0.35)  $ (0.06)  $ (0.36)
       
WEIGHTED AVERAGE SHARES OUTSTANDING      
Basic and Diluted  36,853,477  36,047,033  35,721,028
       
       
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
 
  Years Ended December 31,
  2010 2009 2008
 CASH FLOWS FROM OPERATING ACTIVITIES       
 Net loss   $ (12,685)  $ (2,175)  $ (12,733)
 Adjustments to reconcile net loss       
   to net cash provided by operating activities:       
 Depreciation and amortization   53,997  53,800  53,548
 Provision for bad debts   33,158  32,704  30,832
 Equity in earnings of joint ventures   (8,230)  (8,456)  (9,791)
 Distributions from joint ventures   10,917  7,667  7,982
 Deferred rent amortization   1,848  1,094  3,514
 Amortization of deferred financing cost   2,797  2,678  2,567
 Amortization of bond discount   164  -   - 
 Net loss on disposal of assets   1,136  523  516
 Loss on extinguishment of debt  9,871  -   - 
 Gain on bargain purchase   -   (1,387)  - 
 Gain on extinguishment of debt   -   -   (47)
 Amortization of cash flow hedge   917  6,119  - 
 Stock-based compensation   3,718  3,607  2,902
 Changes in operating assets and liabilities, net of assets       
 acquired and liabilities assumed in purchase transactions:       
 Accounts receivable   (35,985)  (24,432)  (36,297)
 Other current assets   (3,226)  4,206  (1,515)
 Other assets   24  51  684
 Deferred revenue   207    
 Accounts payable and accrued expenses   8,256  619  3,270
 Net cash provided by operating activities   66,884  76,618  45,432
 CASH FLOWS FROM INVESTING ACTIVITIES       
 Purchase of imaging facilities   (61,774)  (6,085)  (28,859)
 Proceeds from sale of imaging facilities   -   650  - 
 Purchase of property and equipment   (40,293)  (30,752)  (29,199)
 Proceeds from sale of equipment   685  219  2,961
 Purchase of equity interest in joint ventures   -   (315)  (938)
 Net cash used in investing activities   (101,382)  (36,283)  (56,035)
 CASH FLOWS FROM FINANCING ACTIVITIES       
 Principal payments on notes and leases payable   (21,463)  (23,660)  (19,112)
 Proceeds from borrowings on notes payable   -   -   35,000
 Proceeds from borrowings upon refinancing   482,360  -   1,212
 Repayment of debt   (412,000)    
 Deferred financing costs   (17,613)  -   (4,277)
 Net payments on line of credit   -   (1,742)  (2,480)
 Payments to counterparties of interest rate swaps, net of amounts received   (6,382)  (4,739)  - 
 Distributions to noncontrolling interests   (131)  (116)  (231)
 Proceeds from issuance of common stock upon exercise of options/warrants   271  16  473
 Net cash provided by (used in) financing activities   25,042  (30,241)  10,585
 EFFECT OF EXCHANGE RATE CHANGES ON CASH   (11)  -   - 
 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   (9,467)  10,094  (18)
 CASH AND CASH EQUIVALENTS, beginning of period   10,094  -   18
 CASH AND CASH EQUIVALENTS, end of period   $ 627  $ 10,094  $ - 
       
 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION       
 Cash paid during the period for interest   $ 40,352  $ 40,092  $ 49,236
 Cash paid during the period for income taxes   $ 659  $ 348  $ 389
 
 
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS 
(IN THOUSANDS)
     
  Three Months Ended
  December 31,
  2010 2009
     
NET REVENUE  $ 145,315  $ 131,815
     
OPERATING EXPENSES    
Operating expenses  109,495  99,100
Depreciation and amortization  13,844  13,821
Provision for bad debts  8,555  7,975
Loss (gain) on sale of equipment  530  148
Severance costs  107  88
Total operating expenses  132,531  121,132
     
INCOME FROM OPERATIONS  12,784  10,683
     
OTHER EXPENSES (INCOME)    
Interest expense  12,921  11,478
Other expenses (income)  (1,466)  - 
Total other expense  11,455  11,478
     
LOSS BEFORE INCOME TAXES AND EQUITY    
IN EARNINGS OF JOINT VENTURES  1,329  (795)
     
Provision for income taxes  (53)  (162)
Earnings from joint ventures  2,116  1,617
NET INCOME (LOSS)  3,392  660
Net income attributable to noncontrolling interests  (92)  (23)
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.    
COMMON SHAREHOLDERS  $ 3,300  $ 637
     
BASIC NET INCOME (LOSS) PER SHARE    
ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS  $ 0.09  $ 0.02
     
DILUTED NET INCOME (LOSS) PER SHARE    
ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS  $ 0.09  $ 0.02
     
WEIGHTED AVERAGE SHARES OUTSTANDING    
Basic  37,143  36,238
Diluted  37,845  37,418
 
     
RADNET, INC.  
RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.  
 COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1)  
(IN THOUSANDS)  
   
  Three Months Ended
  December 31,
  2010 2009
     
     
Net Income Attributable to RadNet, Inc. Common Shareholders  $ 3,300  $ 637
Plus Provision for Income Taxes  53  162
Plus Other Expenses (Income)  (1,466)  - 
Plus Interest Expense  12,921  11,478
Plus Severence Costs  107  88
Plus Loss on Sale of Equipment  530  148
Plus Depreciation and Amortization  13,844  13,821
Plus Non Cash Employee Stock Compensation  898  670
Adjusted EBITDA(1)  $ 30,187  $ 27,004
     
     
  Fiscal Year Ended
  December 31,
  2010 2009
     
Net Loss Attributable to RadNet, Inc. Common Shareholders  $ (12,852)  $ (2,267)
Plus Provision for Income Taxes  576  443
Plus Other Expenses (Income)  505  416
Plus Interest Expense  48,398  50,016
Plus Severence Costs  838  731
Plus Loss on Sale of Equipment  1,136  523
Plus Depreciation and Amortization  53,997  53,800
Plus Non Cash Employee Stock Compensation  3,718  3,607
Plus Loss on Extinguishment of Debt  9,871  - 
Less Gain on Bargain Purchase  -   (1,387)
Adjusted EBITDA(1)  $ 106,187  $ 105,882
     
     
RADNET PAYMENTS BY PAYORS *
         
  Three Months Ended      
  December 31,  Years Ended December 31,
  2010 2010 2009 2008
         
Commercial Insurance 55.8% 55.7% 55.8% 56.6%
Medicare 19.3% 19.3% 20.0% 19.6%
Capitation 15.2% 15.3% 15.4% 15.0%
Workers Compensation/Personal Injury 3.9% 4.1% 3.5% 3.7%
Medicaid 3.3% 3.2% 3.2% 3.1%
Other 2.6% 2.4% 2.1% 2.0%
  100.0% 100.0% 100.0% 100.0%
         
RADNET PAYMENTS BY MODALITY *
         
  Three Months Ended      
  December 31,  Years Ended December 31,
  2010 2010 2009 2008
         
MRI 34.2% 34.3% 34.1% 34.2%
CT 17.2% 17.5% 19.1% 19.0%
PET/CT 5.9% 6.1% 6.0% 6.2%
X-ray 10.3% 10.1% 9.8% 10.8%
Ultrasound 11.3% 11.0% 10.3% 10.2%
Mammography 16.1% 16.0% 16.0% 14.9%
Nuclear Medicine 1.8% 1.7% 1.7% 1.6%
Other 3.3% 3.2% 3.0% 3.1%
  100.0% 100.0% 100.0% 100.0%
         
         
RADNET AVERAGE PAYMENTS BY MODALITY *
         
  Three Months Ended      
  December 31,  Years Ended December 31,
  2010 2010 2009 2008
         
MRI  $ 501  $ 501  $ 503  $ 505
CT  305  306  308  310
PET/CT  1,492  1,494  1,493  1,494
X-ray  39  40  38  37
Ultrasound  106  107  108  107
Mammography  136  135  135  134
Nuclear Medicine  322  322  323  327
Other  $ 126  $ 126  $ 127  $ 129
         
Note        
* Based upon global payments received from consolidated Imaging Centers from that year'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 excludes losses or gains on the disposal of equipment, other income or loss, loss on debt extinguishments, bargain purchase gains and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or extraordinary and one-time 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.

(2) As noted above, the Company defines Free Cash Flow as Adjusted EBITDA less total Capital Expenditures (whether completed with cash or financed) and Cash Interest paid. Free Cash Flow is a non-GAAP financial measure. The Company uses Free Cash Flow because the Company believes it provides useful information for investors and management because it measures our capacity to generate cash from our operating activities. Free Cash Flow does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of Free Cash Flow may differ from definitions used by other companies.

Free Cash Flow 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.

CONTACT: RadNet, Inc.
         Mark Stolper
         Executive Vice President and Chief Financial Officer
         310-445-2800

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

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