Financial Data and Key Metrics Changes - Total company revenue for Q1 2024 was $431.7 million, an increase of 10.5% compared to Q1 2023, while adjusted EBITDA rose 21.4% to $58.5 million [42][13] - The net loss for Q1 2024 was $2.8 million, significantly improved from a net loss of $21 million in Q1 2023, with adjusted earnings of $5 million compared to an adjusted loss of $13 million in the prior year [44][45] - The adjusted EBITDA margin increased by 120 basis points compared to the previous year, reflecting improved operational efficiency and revenue growth [14][42] Business Line Data and Key Metrics Changes - Imaging Centers segment revenue reached $417 million, up 9.9%, with adjusted EBITDA increasing 14.1% to $54.9 million [36] - The Digital Health segment reported revenue of $14.7 million, a 32.3% increase, with adjusted EBITDA soaring 17,500% to $3.5 million, driven by a significant rise in AI revenue [37][8] Market Data and Key Metrics Changes - MRI volume increased by 11.7%, CT volume by 9.1%, and PET/CT volume by 17.5% in Q1 2024 compared to the same quarter last year [39] - Overall procedure volume increased by 5.7%, with a notable shift towards advanced imaging, which now constitutes 25.7% of total procedures, up from 24.5% [49][39] Company Strategy and Development Direction - The company is focusing on growth through acquisitions, having entered the Houston market with two recent acquisitions, and plans to continue expanding through de novo facilities and partnerships [15][17] - Investments in Digital Health and AI technologies are expected to enhance operational efficiency and drive revenue growth, with a focus on automating processes through the new DeepHealth OS [65][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth driven by strong demand for advanced imaging and improved reimbursement rates from payors [10][15] - The company anticipates further margin improvements and operational efficiencies as it continues to invest in technology and expand its service offerings [14][66] Other Important Information - The company ended Q1 2024 with a cash balance of $527 million and a net debt to adjusted EBITDA ratio of slightly more than one time, indicating strong financial health [31][32] - The company has 12 de novo facilities in various stages of development, expected to open throughout the year, which are anticipated to contribute significantly to future growth [19][20] Q&A Session Summary Question: What are the expectations for continued strength in pricing and volume? - Management noted a shift from being price takers to negotiating better rates with payors, contributing to improved margins and pricing strength [74][76] Question: What is the outlook for advanced imaging volume? - Management highlighted a trend towards increased adoption of advanced imaging, particularly PET/CT, and expects this to continue as technology improves and awareness grows [82][84] Question: How is the company balancing CapEx between maintenance and growth? - The company plans to allocate over half of its projected $130 million CapEx for the construction of new facilities, indicating a strategic shift towards growth investments [89][91] Question: How does the mix shift to higher-cost scans impact margins? - A significant portion of the margin improvement is expected to drop to the bottom line, with management indicating that approximately 80% of the margin increase from a mix shift would contribute to profitability [95][97] Question: What is the adoption rate for the EBCD AI option? - The current adoption rate for EBCD on the East Coast is about 40%, with expectations to increase as educational efforts continue [108][109] Question: What metrics indicate backlog or unmet demand? - Management indicated that backlogs are driven by increased imaging use, an aging population, and a shift away from hospitals, with a focus on advanced imaging procedures [123][127]

Imaging Center Segment Performance - Adjusted EBITDA for the Imaging Center segment in 2023 was $245.1 million, a 17.2% increase compared to 2022[2] - Revenue for the Imaging Center segment in 2023 was $1,604 million, a 12.5% increase compared to 2022[2] - 2024 guidance for the Imaging Center segment projects Total Net Revenue between $1,650 - $1,700 million, representing a growth of 5.3% - 8.5%[6] - 2024 guidance for the Imaging Center segment projects Adjusted EBITDA between $250 - $260 million, representing a growth of 11.4% - 15.8%[6] - Imaging Center segment performance: Revenue grew 8.6% to $415.3 million, Adjusted EBITDA increased 11.0% to $68.3 million, and same-center procedural volume grew 5.5% in Q4 2023[45][49] Digital Health Segment Performance - 2024 guidance for the Digital Health segment projects Total Net Revenue between $60 - $70 million, representing a growth of 21.0% - 41.2%[8] - 2024 guidance for the Digital Health segment projects Adjusted EBITDA Before Non-Capitalized R&D for DeepHealth Cloud OS & Generative AI between $12 - $14 million, representing a growth of 51.4% - 76.6%[8] - The Digital Health segment has over 500 outside customers and combines informatics businesses with AI operations[9] - Formation of Digital Health reporting segment: Combining AI operations with software and informatics businesses, with 2023 pro forma results showing $49.6 million in Revenue and $7.9 million in Adjusted EBITDA[60][61] AI Segment Growth and Investments - Non-Capitalized R&D investment in DeepHealth Cloud OS and generative AI was $1.3 million in Q4 2023[1] - Pre-tax losses related to the AI reporting segment were $5.0 million in Q4 2023[1] - The company expects significant growth in 2024 from AI revenue, particularly from Enhanced Breast Cancer Detection (EBCD) implementation and lung and prostate AI licensing in Europe[10] - AI segment growth: AI revenue surged 278.4% to $5.1 million in Q4 2023 and is expected to increase over 65% in 2024, with AI Adjusted EBITDA projected to break even by end of 2024[45][48] - Digital health initiatives: Migration to cloud-based solutions, development of DeepHealth OS suite, and expansion of AI-enhanced screening programs for breast, lung, and prostate cancer[48] Financial Performance and Metrics - Net income for 2023 was $30.3 million, a decrease from $33.6 million in 2022 and $44.3 million in 2021[19] - Net cash provided by operating activities in 2023 was $220.9 million, up from $146.4 million in 2022[19] - Total service revenue for Q4 2023 was $420.4 million, compared to $383.9 million in Q4 2022[20] - Adjusted EBITDA for Q4 2023 was $65.8 million, an increase from $57.2 million in Q4 2022[21] - Adjusted EBITDA for the full year 2023 was $232.3 million, up from $192.5 million in 2022[21] - Non-cash employee stock-based compensation for 2023 was $26.8 million, compared to $23.8 million in 2022[21] - Depreciation and amortization expenses for 2023 were $128.4 million, up from $115.9 million in 2022[19] - Net cash used in investing activities for 2023 was $201.5 million, a decrease from $246.9 million in 2022[19] - Proceeds from issuance of stock in 2023 were $245.8 million, compared to $0 in 2022[19] - EBITDA losses from the AI segment for 2023 were $12.8 million, down from $16.6 million in 2022[21] - Total current assets decreased from $579.276 million in 2022 to $367.184 million in 2023[22] - Total property, plant, equipment, and right-of-use assets slightly decreased from $1.200433 billion in 2022 to $1.169485 billion in 2023[22] - Total liabilities increased from $1.877114 billion in 2022 to $1.942455 billion in 2023[22] - Adjusted net income attributable to RadNet, Inc. common stockholders increased from $6.383 million in 2022 to $13.742 million in 2023[27] - Adjusted diluted net income per share attributable to RadNet, Inc. common stockholders increased from $0.11 in 2022 to $0.20 in 2023[27] - Total service revenue increased to $1,616,630 in 2023, up 13% from $1,430,061 in 2022[65] - Net income attributable to RadNet, Inc. common stockholders decreased to $3,044 in 2023 from $10,650 in 2022[65] - Cash and cash equivalents at the end of the period rose significantly to $342,570 in 2023 from $127,834 in 2022[66] - Basic net income per share attributable to RadNet, Inc. common stockholders dropped to $0.05 in 2023 from $0.19 in 2022[65] - Weighted average shares outstanding (basic) increased to 63,580,059 in 2023 from 56,293,336 in 2022[65] - Cash paid for interest during the period rose to $64,695 in 2023 from $39,151 in 2022[66] - Cost of operations, excluding depreciation and amortization, increased to $1,395,239 in 2023 from $1,264,346 in 2022[65] - Depreciation and amortization expenses grew to $128,391 in 2023 from $115,877 in 2022[65] - Interest expense increased to $64,483 in 2023 from $50,841 in 2022[65] - Cash paid for income taxes during the period rose to $1,587 in 2023 from $587 in 2022[66] Volume Growth and Procedural Metrics - MRI procedures increased from 352,009 in Q4 2022 to 398,625 in Q4 2023[35] - Total procedures increased from 2.376995 million in Q4 2022 to 2.565720 million in Q4 2023[35] - Volume growth across modalities: MRI volume increased 13.2%, CT volume grew 11.3%, and PET/CT volume rose 18.5% in Q4 2023 compared to Q4 2022[53] Expansion and Strategic Initiatives - 2024 expansion plans: Approximately a dozen new facilities to be opened, including entry into the Houston market through acquisition of seven imaging centers[47] - 2023 capital expenditures: $153.0 million, including $18.6 million for New Jersey Imaging Network and $19.8 million for equipment previously leased[62][63] Payor Class Breakdown - Commercial insurance accounted for 58.0% of payor class breakdown in Q4 2023[31] Record Financial Performance - RadNet reported record revenue and Adjusted EBITDA for Q4 2023 and released 2024 financial guidance[43] - Record Revenue and Adjusted EBITDA in Q4 2023: Revenue increased 9.5% to $420.4 million, with Adjusted EBITDA growing 15.0% to $65.8 million compared to Q4 2022[45][50] - Full-year 2023 results: Total Revenue increased 13.0% to $1,617 million, with Adjusted EBITDA growing 20.7% to $232.3 million compared to 2022[58] Financial Leverage and Liquidity - 2023 financial leverage improvement: Net debt to Adjusted EBITDA fell below 2.0x, with $342 million cash balance and Days Sales Outstanding of 32.0 at year-end 2023[46]

Financial Data and Key Metrics Changes - For Q4 2023, RadNet reported revenue from its Imaging Center segment of $415.3 million, an increase of 8.6% from the previous year, and adjusted EBITDA of $68.3 million, up 11% [19][37] - For the full year 2023, total company revenue was $1.604 billion, a 13% increase from $1.430 billion in 2022, with adjusted EBITDA of $232.3 million, reflecting a 20.7% increase [45][47] - The adjusted EBITDA margin for the Imaging Center segment was 15.3%, an increase of 60 basis points from 2022 [44] Business Line Data and Key Metrics Changes - MRI volume increased by 13.2%, CT volume by 11.3%, and PET/CT volume by 18.5% in Q4 2023 compared to the same quarter last year [38] - Same-center procedural volume growth was 5.5% for Q4 2023, with MRI volume up 10.8%, CT volume up 8.2%, and PET/CT volume up 17.4% [39] - The AI segment revenue grew 278% in 2023, with expectations of over 65% growth in 2024 [27] Market Data and Key Metrics Changes - Demand for RadNet's services remains strong across core markets as outpatient imaging shifts from expensive hospital settings to cost-efficient ambulatory sites [4] - The Houston metropolitan area, with a population of approximately 7.3 million, represents a new market entry for RadNet, expected to enhance growth opportunities [23] Company Strategy and Development Direction - RadNet is focusing on expanding joint ventures and health system initiatives, with 24 system joint ventures representing over 35% of its centers [5] - The company is investing in de novo imaging centers and newer technologies, including AI solutions, to drive growth [9][10] - A new digital health reporting segment will combine eRAD and DeepHealth OS software businesses, projected to grow by 20% to 40% in 2024 [29][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for long-term growth, citing strong liquidity and capital resources compared to competitors [58] - The company anticipates continued strength in volumes and expects to benefit from new facility openings in 2024 [21][22] - Management highlighted the importance of AI in future healthcare, emphasizing RadNet's accumulated data and operational scale as competitive advantages [59] Other Important Information - RadNet's cash balance at year-end 2023 was over $342 million, with a net leverage ratio under 2x adjusted EBITDA [20] - The company plans to implement enhanced breast cancer detection services and expand its lung cancer screening program in collaboration with partners in the UK [25][26] Q&A Session Summary Question: What are the expectations for volume growth in 2024? - Management noted strong volume growth and the positive impact of joint ventures on profitability, indicating a bullish outlook for continued strength in volumes [66] Question: What is the strategy for entering the Houston market? - Management highlighted the attractiveness of the Houston market due to its size and growth potential, expressing high expectations for success in this new core market [71] Question: How will new technology impact scan times and capacity? - Management discussed ongoing investments in technology to reduce scan times and improve operational efficiency, which will help address capacity issues [79] Question: What is the expected contribution of acquisitions and de novo centers to EBITDA in 2024? - Management indicated that the contribution from acquisitions and de novo centers would be relatively small, estimating around $10 million to $15 million of the projected EBITDA [92] Question: When will AI initiatives start generating meaningful revenue? - Management suggested that it may take another year to 1.5 years to accumulate sufficient data to demonstrate the value of AI solutions to payers, which could lead to reimbursement [96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33307 RadNet, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 1 ...

Financial Data and Key Metrics Changes - In Q3 2023, consolidated revenue reached $402 million, a 14.8% increase from $350 million in Q3 2022 [57] - Adjusted EBITDA for Q3 2023 was $57.9 million, up 26.5% from $45.8 million in Q3 2022 [57] - Net income for Q3 2023 was $17.5 million, compared to $668,000 in Q3 2022, with diluted net income per share increasing to $0.25 from $0.01 [32][57] Business Line Data and Key Metrics Changes - Imaging centers reported revenue of $399.1 million in Q3 2023, with adjusted EBITDA increasing 20.3% to $60.4 million [31][43] - Total procedures performed in Q3 2023 were 2,511,19, with MRI volume increasing 11.7%, CT volume increasing 10.9%, and PET-CT volume increasing 17.7% compared to Q3 2022 [34][84] Market Data and Key Metrics Changes - The company is experiencing heavy demand in local markets, leading to significant scheduling backlogs [17] - The AI division's revenue has more than tripled year-over-year, with a sequential growth of over 21% from Q2 2023 [18] Company Strategy and Development Direction - The company is committed to expanding its AI capabilities, with plans to implement generative AI tools in business processes by Q2 2024 [19][46] - A new joint venture with Cedars-Sinai Medical System aims to enhance outpatient radiology access and streamline patient care [21][47] - The company plans to open approximately a dozen new de novo facilities in 2024, contributing significantly to growth and profitability [69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2024 growth initiatives, despite anticipated Medicare cuts of $7 million to $9 million [92][93] - The company is focused on maintaining strong relationships with payers to mitigate the impact of reimbursement cuts [93] - Management highlighted the importance of staffing and technology investments to address labor shortages and improve operational efficiency [103] Other Important Information - The company reported a net debt to adjusted EBITDA ratio of approximately two times, indicating strong liquidity and low leverage [25] - Cash capital expenditures for 2023 are projected to be between $115 million and $125 million, reflecting investments in new facilities [62] Q&A Session Summary Question: Can you provide insights on the AI rollout and early findings? - Management reported a 35% enrollment rate for the early breast cancer detection program on the East Coast, with expectations for further adoption [100][102] Question: How do you view the labor impact progressing throughout 2024? - Management indicated that investments in technology and salary increases are expected to help attract more candidates and improve staffing levels [103] Question: What is the expected contribution from new de novo centers? - New centers are anticipated to contribute $3 million to $5 million in revenue with EBITDA margins around 20% [126] Question: Can you elaborate on the joint venture with Cedars-Sinai? - The joint venture is structured as an asset swap, enhancing outpatient imaging capabilities and patient access [135][139]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33307 RadNet, Inc. (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or Delaware 13-3326724 (State or oth ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33307 RadNet, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3326724 (State or other ju ...

Financial Data and Key Metrics Changes - For Q2 2023, the company reported revenue of $401.3 million and adjusted EBITDA of $63.7 million, excluding AI segment losses [7] - Net income for Q2 2023 was $8.4 million, compared to $7.9 million in Q2 2022, with diluted net income per share at $0.12 versus $0.13 in the prior year [12] - The company increased its 2023 revenue guidance by $25 million at the low end and $10 million at the high end, now projecting total net revenue between $1,575 million and $1,610 million [14] Business Line Data and Key Metrics Changes - The imaging center segment revenue increased by 13.8% year-over-year, with adjusted EBITDA rising by 14.7% [119] - AI revenue grew 109% year-over-year, primarily driven by the enhanced breast cancer detection program [4] - The company lowered its revenue guidance for the AI segment by $5 million, now estimating between $11 million and $13 million for the year [36] Market Data and Key Metrics Changes - The company noted a shift in patient volumes from expensive hospital-based imaging to more cost-effective outpatient settings, benefiting its business model [2] - Medicare reimbursement cuts are anticipated to impact revenue by approximately $7 million to $9 million in 2024, but the company expects to mitigate this through increases from commercial payers [18][51] Company Strategy and Development Direction - The company is focusing on expanding its digital health platform and AI initiatives to enhance operational efficiency and reduce reliance on labor [19][20] - Plans include opening 12 new centers, with five expected to be operational by year-end 2023, to address growing demand [71] - The company aims to leverage technology to improve patient experience and operational processes, particularly through generative AI [74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth through investments in technology and digital health initiatives, despite challenges in the labor market [44] - The company anticipates continued strong demand for imaging services, supported by advancements in technology and an aging population [116] - Management believes that the final Medicare reimbursement rules may be less severe than proposed, based on historical legislative actions [18] Other Important Information - The company reported a significant reduction in reliance on contract labor, now at about 50% of last year's levels, due to improved staffing [55] - The accounts receivable balance increased by $8.1 million from year-end 2022, reflecting higher procedural volumes [35] - The company has a cash balance of $357 million and is undrawn on its $195 million revolving line of credit [34] Q&A Session Summary Question: Sustainability of strong demand trends and organic growth rates - Management emphasized that investment in the digital health platform and generative AI will be key to sustaining growth and improving operational efficiency [44] Question: Update on contract labor costs and labor environment - Management confirmed that reliance on contract labor has decreased significantly, and they expect continued improvement in staffing levels [55] Question: Equity earnings of joint ventures and future expectations - Management indicated that one quarter's performance does not indicate a trend, and they expect the line item to stabilize [59] Question: Capacity for MRI and PET scans in light of increasing demand - Management noted that while demand is high, staffing remains a challenge, but they are implementing technology to improve capacity [94] Question: Capital allocation priorities post-equity raise - Management plans to invest in de novos, upgrade technology, and potentially pay down debt, depending on cash flow projections [99]

RadNet, Inc. (NASDAQ:RDNT) Q1 2023 Earnings Conference Call May 9, 2023 10:30 AM ET Company Participants Howard Berger - Chairman, President & CEO Mark Stolper - Executive VP & CFO Conference Call Participants Brian Tanquilut - Jefferies LLC John Ransom - Raymond James Lawrence Solow - CJS Securities Operator Good morning, and welcome to the RadNet, Inc. First Quarter 2023 Financial Results Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is recorded. I ...

FORM 10-Q (Mark One) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33307 RadNet, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3326724 (State or other j ...