RadNet(RDNT) - 2024 Q2 - Quarterly Results

Revenue Growth - Total Company Revenue increased 13.9% to $459.7 million in Q2 2024 from $403.7 million in Q2 2023[2] - Digital Health Revenue grew 36.4% to $15.8 million in Q2 2024, driven by a 136.6% increase in AI Revenue to $5.6 million[2][6] - Service fee revenue for Q2 2024 reached $422,745, a 16.1% increase from $363,918 in Q2 2023[23] Financial Performance - Adjusted EBITDA rose 19.7% to $72.3 million in Q2 2024 compared to $60.4 million in Q2 2023, with margins increasing by 76 basis points to 15.7%[2][3] - Adjusted EBITDA for Q2 2024 was $72,327, an increase of 19.5% from $60,446 in Q2 2023[26] - Adjusted net income attributable to RadNet, Inc. common stockholders for Q2 2024 was $12,047,000, up from $5,878,000 in Q2 2023, reflecting a growth of 104.0%[32] - Adjusted diluted net income per share increased to $0.16 in Q2 2024, compared to $0.10 in Q2 2023, a rise of 60.0%[32] Operational Metrics - Aggregate procedural volumes increased by 9.2%, while same-center procedural volumes rose by 6.1% compared to Q2 2023[2][8] - In Q2 2024, total procedures increased to 2,785,804, up from 2,551,382 in Q2 2023, representing a growth of approximately 9.2%[30] - MRI procedures rose to 449,781 in Q2 2024, compared to 387,619 in Q2 2023, marking an increase of 16.0%[30] - Ultrasound procedures increased to 664,043 in Q2 2024 from 620,660 in Q2 2023, representing a growth of 7.0%[30] Cash and Debt Management - The company completed a refinancing of its senior secured Term Loan and Revolver, adding approximately $168 million in cash to the balance sheet[2][5] - As of June 30, 2024, the company had a cash balance of $741.7 million and a Net Debt to Adjusted EBITDA ratio of 1.1[2][5] - Cash provided by operating activities for the first half of 2024 was $133,090, up from $100,691 in the same period of 2023[25] - Cash and cash equivalents rose significantly to $741,679,000 from $342,570,000, marking an increase of 116.6%[21] Guidance and Future Plans - Full-year 2024 guidance for Total Net Revenue was revised to $1.685 - $1.735 billion, and Adjusted EBITDA to $257 - $267 million[10] - The company plans to open approximately six new imaging centers by the end of 2024 and an additional 15 centers in 2025[5] - The DeepHealth OS technology platform is on track for implementation within RadNet in the coming months, enhancing operational efficiencies[5] Balance Sheet Highlights - Total current assets increased to $1,004,724,000 as of June 30, 2024, compared to $579,276,000 on December 31, 2023, representing a growth of 73.3%[21] - Total liabilities increased to $2,136,583,000 as of June 30, 2024, up from $1,877,114,000, reflecting a rise of 13.8%[21] - Total equity grew to $1,092,840,000 as of June 30, 2024, compared to $813,359,000, indicating a growth of 34.3%[21] Expenses and Losses - Total operating expenses for Q2 2024 were $424,868, up 12.0% from $379,274 in Q2 2023[23] - The company incurred interest expenses of $26,082 in Q2 2024, up from $16,039 in Q2 2023[26] - The company reported a loss on extinguishment of debt of $2,080 in the first half of 2024[25] Non-GAAP Metrics - The company emphasizes the importance of non-GAAP metrics alongside GAAP for measuring cash-based performance, which aids in assessing financial condition across periods[19] - Total adjustments to net income attributable to RadNet, Inc. common stockholders in Q2 2024 amounted to $15,029,000, compared to a negative adjustment of $2,491,000 in Q2 2023[32] Other Financial Metrics - The weighted average shares outstanding for Q2 2024 were 73,419,124, compared to 59,880,803 in Q2 2023[23] - Commercial insurance accounted for 58.5% of payments by payor class in Q2 2024[28] - The company reported a non-cash interest expense of $5,559,000 related to extraordinary interest rate swap OCI amortization in Q2 2024[32]