RadNet(RDNT) - 2024 Q4 - Annual Results

Financial Performance - Total Company Revenue for Q4 2024 reached a record $477.1 million, up 13.5% from$ 420.4 million in Q4 2023[4] - Adjusted EBITDA for Q4 2024 was $75.0 million, representing a 14.0% increase from$ 65.8 million in Q4 2023[4] - For full-year 2024, Total Company Revenue was $1,829.7 million, a 13.2% increase, and Adjusted EBITDA was$ 279.5 million, up 20.3%[11] - Net income attributable to RadNet, Inc. common stockholders for 2024 was $2,793, compared to$ 3,044 in 2023, reflecting a decrease of 8.2%[37] - Net income attributable to Radnet, Inc. common stockholders for Q4 2024 was $5,345, compared to a net loss of$ 1,860 in Q4 2023, representing a significant turnaround[42] - Adjusted EBITDA for Q4 2024 was $75,008, compared to$ 65,813 in Q4 2023, reflecting a growth of 13.3%[43] - Adjusted diluted net income per share attributable to Radnet, Inc. common stockholders for Q4 2024 was $0.22, up from$ 0.15 in Q4 2023[45] Revenue Segments - Digital Health Revenue increased 28.1% to $18.9 million in Q4 2024, with Adjusted EBITDA rising 61.6% to$ 4.5 million[7] - Total service revenue for 2024 reached $1,829,664, an increase of 13.2% from$ 1,616,630 in 2023[37] - Digital Health segment revenue guidance for 2025 is set between $80 million and$ 90 million, with Adjusted EBITDA before non-capitalized R&D projected at $15 million to$ 17 million[24] Cash and Debt Management - The cash balance at year-end 2024 was $740 million, with a net debt to Adjusted EBITDA leverage ratio below 1.0x, down from approximately 2.0x at year-end 2023[5] - Cash and cash equivalents increased to$ 740,020 in 2024 from $342,570 in 2023, representing a growth of 116.5%[35] - Cash paid for interest during the year was$ 84,601, up from $64,695 in 2023, indicating increased financing costs[39] - Net cash provided by operating activities for the year ended December 31, 2024 was$ 233,023, an increase from $220,863 in 2023[39] Operational Metrics - Aggregate procedural volumes grew by 8.0% and same-center procedural volumes increased by 4.0% compared to Q4 2023[4] - Total procedures for Q4 2024 reached 2,771,753, up from 2,565,720 in Q4 2023, marking an increase of 8.0%[51] - MRI procedures increased to 452,063 in Q4 2024 from 398,625 in Q4 2023, reflecting a growth of 13.4%[51] Future Guidance and Investments - 2025 guidance for Total Net Revenue is projected between$ 1,825 million and $1,875 million, with Adjusted EBITDA expected to be between$ 265 million and $273 million[22] - The company plans to implement new Digital Health solutions in 2025 to enhance operational efficiencies and address labor challenges[20] - Significant infrastructure investments will be made in 2025 to support sales, marketing, and implementation teams for Digital Health solutions[20] Assets and Liabilities - Total assets grew to$ 3,286,690 in 2024, up from $2,690,473 in 2023, marking an increase of 22.1%[35] - Long-term operating lease liabilities increased to$ 655,979 in 2024 from $605,097 in 2023, reflecting an increase of 8.4%[35] - RadNet's goodwill increased to$ 710,663 in 2024 from $679,463 in 2023, showing a rise of 4.6%[35] Miscellaneous - The company operates a network of 398 outpatient imaging centers across multiple states, employing over 11,000 individuals[27] - The company incurred severance costs of$ 1,105 in Q4 2024, compared to $621 in Q4 2023, indicating ongoing restructuring efforts[42] - The company reported a loss of$ 9,926 from equity in earnings of joint ventures in 2024, contrasting with a gain of $9,176 in 2023[39] - The restated Adjusted Earnings for 2023 include a loss of$ 4,973 from AI businesses, which is now part of the Digital Health segment[47] - The company anticipates continued impacts from COVID-19 on its business results and liquidity moving forward[28] - The company emphasizes that Adjusted EBITDA and Free Cash Flow should not be considered measures of financial performance under GAAP[55]