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Dec 31, 2021
Radnet Q4 2021 Earnings Report
RadNet's revenue increased by 8.0% and Adjusted EBITDA by 7.5% compared to Q4 2020, despite being impacted by the Omicron surge of COVID-19.
Key Takeaways
RadNet reported an 8.0% increase in revenue and a 7.5% increase in Adjusted EBITDA for Q4 2021 compared to the same period in 2020, despite a $4 million revenue and $3 million Adjusted EBITDA impact from the Omicron surge. The company's strong financial position allowed for investments in differentiating facilities, with a cash balance of over $134 million and a net debt leverage ratio under 3.0 times Adjusted EBITDA.
Revenue increased by 8.0% and Adjusted EBITDA by 7.5% compared to Q4 2020.
The Omicron surge reduced revenue by over $4 million and Adjusted EBITDA by approximately $3 million.
Cash balance at year-end 2021 was over $134 million, with a net debt leverage ratio under 3.0 times Adjusted EBITDA.
Completed acquisitions of Aidence Holding B.V. and Quantib B.V., two Artificial Intelligence companies.
Forward Guidance
RadNet anticipates growth in 2022 from same-center growth, reimbursement increases, new and expanded health system joint ventures, and acquisitions completed in 2021. The guidance excludes anticipated losses from the AI division of $12 million to $17 million.
Positive Outlook
- Growth from same-center activities.
- Reimbursement increases from private and capitated payers.
- New and expanded health system joint ventures.
- Contribution from acquisitions completed in 2021.
- Exclusion of AI division losses provides transparency.
Challenges Ahead
- 2021 Adjusted EBITDA was positively impacted by provider relief proceeds and employee retention credit.
- Estimated $7.4 million impact of Medicare reimbursement reductions for 2022.
- Approximately $15 million of additional salaries and wages expense due to a tighter labor market.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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