Start Time: 10:30 January 1, 0000 11:40 AM ET RadNet, Inc. (NASDAQ:RDNT) Q4 2020 Earnings Conference Call March 08, 2021, 10:30 AM ET Company Participants Howard Berger - President and CEO Mark Stolper - EVP and CFO Conference Call Participants Brian Tanquilut - Jefferies Mitra Ramgopal - Sidoti & Company John Ransom - Raymond James Operator Good day, and welcome to the RadNet, Inc. Q4 and Full Year 2020 Financial Results Call. Today's conference is being recorded. At this time, I would like to turn the co ...

Financial Data and Key Metrics Changes - Revenue for Q3 2020 was reported at $291.8 million, a sequential increase of 53.1% from Q2 2020, which translates to an increase of $101.2 million [6][20] - Adjusted EBITDA more than doubled from Q2 2020, increasing from $22.6 million to $45.8 million, representing a 102.8% increase [7][20] - Adjusted net income per share was $0.15 in Q3 2020, compared to a net loss per share of $0.16 in Q2 2020 and net income per share of $0.06 in Q3 2019 [8][26] Business Line Data and Key Metrics Changes - MRI volume decreased by 6.1% compared to Q3 2019, while CT volume remained flat and PET/CT volume increased by 0.4% [21] - Total procedural volumes increased by 66.2% from Q2 2020, with a total of 1,890,156 procedures performed in Q3 2020 [23][24] - Capitation revenue increased by 13.8% from Q3 2019, indicating stable enrollment in health plans during COVID-19 [12] Market Data and Key Metrics Changes - The company reported a strong liquidity position with a cash balance of $89.7 million at the end of Q3 2020, the highest in its history [11][29] - The leverage ratio improved, declining to under 4.25x net debt to EBITDA, with expectations to return to under 4x in the coming quarters [12] Company Strategy and Development Direction - The company plans to aggressively expand its footprint, particularly in Arizona, through partnerships with local health systems [15][16] - A focus on operational efficiencies and cost savings initiated during COVID-19 is expected to continue benefiting the company in future quarters [11][36] - The company is pursuing ancillary opportunities, including artificial intelligence and new imaging technologies, to drive revenue and improve margins [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of procedural volumes and the overall business environment post-COVID-19 [9][60] - The company anticipates that the efficiencies created during the pandemic will position it for strong performance in 2021 [36] - Management acknowledged potential challenges from proposed Medicare reimbursement cuts but indicated preparedness to mitigate these impacts [48][62] Other Important Information - The company completed a $57.5 million upsize of its revolving credit facility, enhancing financial flexibility for future growth [12][29] - A new partnership with Adventist Health was announced to create an outpatient imaging joint venture in California, expected to begin operations in January [13][15] Q&A Session Summary Question: Impact of Medicare rules on P&L - Management indicated a proposed 10.6% decrease in the conversion factor for Medicare reimbursement, which could result in an $11 million revenue hit if implemented [44][46] Question: Arizona market entry strategy - The entry into the Phoenix market was driven by a favorable partnership with Dignity Health and the opportunity to acquire existing centers, with expectations for significant growth [52][54] Question: Volume trends and recovery - Volumes showed a steady increase starting in mid-August, approaching 95% of original budget estimates by the end of September, with continued improvement into October [59][60] Question: Durability of cost savings initiatives - Management believes that operational efficiencies gained during the pandemic will sustain margin improvements moving forward, despite potential Medicare cuts [61][62]

RadNet, Inc. (NASDAQ:RDNT) Q2 2020 Results Earnings Conference Call August 10, 2020 10:30 AM ET Company Participants Mark Stolper - Executive Vice President, Chief Financial Officer Howard Berger - President, Chief Executive Officer Conference Call Participants Brian Tanquilut - Jefferies Mitra Ramgopal - Sidoti Operator Good day and welcome to the RadNet Inc. second quarter 2020 financial results call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Mark ...

RadNet, Inc. (NASDAQ:RDNT) Q1 2020 Earnings Conference Call May 11, 2020 10:30 AM ET Company Participants Mark Stolper - EVP & CFO Howard Berger - Chairman, President, CEO & Treasurer Conference Call Participants Brian Tanquilut - Jefferies Mitra Ramgopal - Sidoti John Ransom - Raymond James Operator Good day everyone. Welcome to today's RadNet Incorporated First Quarter 2020 Financial Results Conference. Today's conference is being recorded. At this time, I'd like to turn things over to Mr. Mark Stolper, E ...

Financial Data and Key Metrics Changes - For Q4 2019, RadNet reported revenue of $300.8 million, an increase of $43.6 million or 17% year-over-year, and adjusted EBITDA of $46.9 million, up $2.4 million or 5.5% from the prior year [26][32] - For the full year 2019, total revenue was $1.154 billion, an increase of $179 million or 18.4%, and adjusted EBITDA was $164.1 million, up $22.4 million or 15.8% compared to 2018 [32][35] - Net income for Q4 2019 was $10.4 million or $0.21 per diluted share, compared to adjusted net income of $4.5 million or $0.09 per diluted share in Q4 2018 [29] - The company had $672.4 million of net debt as of December 31, 2019, down from $677 million at the end of 2018 [38] Business Line Data and Key Metrics Changes - In Q4 2019, MRI volume increased by 6.7%, CT volume by 9.3%, and PET/CT volume by 13.6% compared to the same quarter in 2018 [27] - Total procedures performed in Q4 2019 were 2,035,439, with routine imaging accounting for 74.9% of the volume [28] - For the full year 2019, MRI volume increased by 8.9%, CT volume by 12.2%, and PET/CT volume by 9.6% [33] Market Data and Key Metrics Changes - The company noted strong performance in January and February 2020, but began to see softening in volumes in early March due to the coronavirus [55] - The impact of the coronavirus varied by market, with minimal effects in Maryland and New Jersey, while New York experienced more significant impacts [55] Company Strategy and Development Direction - RadNet aims to grow its joint venture operations, targeting 50% of its centers to be in joint ventures within the next 3 to 5 years [12] - The company is focusing on technology investments, including artificial intelligence and machine learning, to enhance operational efficiency and patient care [13][17] - The strategic acquisitions in 2019, including Kern Radiology and Zilkha Radiology, are expected to strengthen market position and profitability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, citing positive trends in patient preferences for outpatient centers over hospital settings [20] - The company has not factored the potential impact of the coronavirus into its forecasts, indicating confidence in a short-lived effect [56] - Management believes that the shift in payer policies towards outpatient imaging will benefit RadNet [21] Other Important Information - The company has made significant investments in information technology and cybersecurity to improve operational efficiency and compliance [14] - Capital expenditures for 2019 were $71.5 million, slightly above budget due to additional investments in mammography capacity [40] Q&A Session Summary Question: Impact of COVID-19 on procedures and volume recovery - Management has implemented communication protocols and screening measures for patients, but has not yet estimated the full impact of COVID-19 on volumes [52][55] - The company believes that while some procedures may be delayed, there is potential for recovery, particularly in elective procedures like mammography [59] Question: Growth drivers and payer shifts - Management indicated that growth is expected due to an aging population and increased capacity from recent investments [61] - The transition of imaging from hospitals to outpatient centers is seen as a long-term trend that will benefit RadNet [62] Question: Capitation revenue performance - The company has successfully negotiated price increases on capitated contracts, contributing to strong growth in this area [63] Question: Margin expectations and labor costs - Management acknowledged the potential for margin expansion but noted challenges due to rising labor costs in a competitive market [65]

RadNet, Inc. (NASDAQ:RDNT) Q3 2019 Earnings Conference Call November 12, 2019 10:30 AM ET Company Participants Mark Stolper - Executive Vice President & Chief Financial Officer Howard Berger - President & Chief Executive Officer Conference Call Participants Brian Tanquilut - Jefferies John Ransom - Raymond James Mitra Ramgopal - Sidoti Operator Good day and welcome to the RadNet Inc. Third Quarter 2019 Financial Results Call. Today's conference is being recorded. At this time, I would like to turn the confe ...

Financial Data and Key Metrics Changes - RadNet reported revenue of $289.1 million for Q2 2019, an increase of $44.7 million or 18.3% compared to the same quarter last year [31] - Adjusted EBITDA for the same period was $43.1 million, reflecting a growth of $5 million or 13% year-over-year [31] - Net income for Q2 2019 was $4.9 million, a decrease of approximately $507,000 from Q2 2018, but adjusted net income was $5.8 million, an increase of $405,000 year-over-year [35] Business Line Data and Key Metrics Changes - MRI volume increased by 9.7%, CT volume by 14.1%, and PET/CT volume by 9% compared to Q2 2018 [32] - Total procedures performed in Q2 2019 reached 272,875, with routine imaging exams accounting for 75% of the volume [33] Market Data and Key Metrics Changes - The company experienced a 3.5% same-center growth, attributed to effective marketing and differentiation from competitors [9] - The disparity in pricing between hospital imaging services and outpatient centers is recognized by patients and referring physicians, contributing to increased patient volumes [11] Company Strategy and Development Direction - RadNet aims to expand its joint ventures with health systems, currently holding about 25% of its centers in such partnerships, with potential to double this number in the coming years [14] - The company is focusing on artificial intelligence to enhance operational efficiency and improve diagnostic accuracy, with plans to invest in AI technologies [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing shift of patients from hospitals to outpatient centers, which is expected to continue driving growth [12] - The company anticipates significant free cash flow generation in the second half of the year, with a cash balance expected to increase substantially by year-end [25] Other Important Information - RadNet completed the acquisition of Kern Radiology, adding approximately $25 million in annual revenue and expanding its presence in Kern County, California [18] - The company is also focusing on reducing costs and improving efficiencies through technology and operational enhancements [49] Q&A Session Summary Question: What drove the robust same-store growth during the quarter? - Management attributed the growth to the migration of patients from hospitals to outpatient centers and investments in new equipment that reduced scan times, allowing for increased volume [61][62] Question: Why did margins compress despite revenue and EBITDA growth? - The margin compression was primarily due to two recent acquisitions that contributed revenue but not significant EBITDA in the short term [66][67] Question: Is the current capitation run rate sustainable? - Management confirmed that the current capitation run rate is sustainable and expected to grow, driven by new contracts and ongoing discussions with payers [69] Question: How does RadNet plan to monetize its AI capabilities? - The focus will be on improving internal efficiencies and operational effectiveness rather than significant external monetization [70][72] Question: Are there any new joint venture opportunities? - Management noted increased interest from hospitals in California for joint ventures, indicating a positive trend for future partnerships [84][85]

Financial Data and Key Metrics Changes - Revenue for Q1 2019 was $271.5 million, an increase of 17.4% compared to the same quarter last year, while adjusted EBITDA rose by 57.3% to $33.1 million [25][8]. - Net loss for Q1 2019 was $3.7 million, or negative $0.08 per share, compared to a net loss of $7.3 million, or negative $0.15 per share, in Q1 2018 [29][30]. - Days sales outstanding (DSO) improved to 47.6 days, a decrease of approximately three days from year-end 2018 [40]. Business Line Data and Key Metrics Changes - MRI volume increased by 7.3%, CT volume by 10.4%, and PET/CT volume by 7.2% compared to the prior year's first quarter [27]. - Total procedures performed in Q1 2019 reached 1,920,777, with routine imaging exams comprising 75.3% of the total volume [28]. Market Data and Key Metrics Changes - The company benefited from favorable weather conditions, which significantly impacted performance, especially in the Northeast and Mid-Atlantic regions [9][8]. - The integration of the New Jersey Imaging Network joint venture and the acquisition of Medical Arts Radiology contributed positively to the overall performance [12][13]. Company Strategy and Development Direction - The company aims to increase the percentage of centers in joint ventures from 25% to 50% over the next several years, focusing on operational improvements and infrastructure investments [50]. - There is a strong emphasis on utilizing artificial intelligence to enhance operational efficiency and improve diagnostic accuracy [51][60]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued migration of outpatient services from hospitals to lower-cost imaging centers, which is expected to drive growth [48]. - The company is optimistic about future performance, with several initiatives expected to contribute positively throughout the year [80]. Other Important Information - The company adopted lease standard ASC 842, resulting in a lease liability of $455.5 million and a right-of-use asset of $412.7 million [36][37]. - The financing raised an incremental term loan of $100 million, providing more financial flexibility for future acquisitions and joint ventures [34][35]. Q&A Session Summary Question: How does RadNet see its role in the AI space and monetizing its data? - Management highlighted the potential of AI to improve radiologist performance and the company's interest in monetizing its extensive data set through partnerships with AI developers [58][66]. Question: Is there an opportunity for RadNet to partner with retailers for imaging services? - Management confirmed that the investment in portable imaging technology could facilitate partnerships with pharmacies and urgent care centers, enhancing access to imaging services [72][74]. Question: Why maintain guidance despite strong Q1 results? - Management stated that guidance is maintained out of a cautious approach, with no anticipated slowdown in business, and several initiatives expected to contribute positively in the coming quarters [77][80]. Question: What is the status of joint ventures and capitation opportunities? - Management indicated ongoing discussions with potential partners for joint ventures and capitation contracts, with progress being made in integrating existing contracts [92][96]. Question: Are there concerns about potential M&A activity in the industry? - Management noted increased interest in the imaging sector but emphasized that RadNet's market concentration and operational efficiency position it well against competitors [105][106].

RadNet, Inc. (NASDAQ:RDNT) Q4 2018 Earnings Conference Call March 14, 2019 10:30 AM ET Company Participants Mark Stolper - EVP & CFO Howard Berger - Chairman, President, CEO & Treasurer Conference Call Participants Brian Tanquilut - Jefferies Mitra Ramgopal - Sidoti & Company Operator Good day, and welcome to the RadNet, Inc. Fourth Quarter 2018 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Mark Stolper, Executive Vice President and Chief Fina ...