RadNet (RDNT) 8 Mar 212020 Q4 Earnings call transcript

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 conference over to Mr. Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet, Inc. sir. ahead, go Please

morning, Howard gentlemen, to Berger and financial fourth Good for discuss thank joining quarter results. XXXX year Dr. and full ladies you. and and you RadNet's Thank me today

like we'd under Act U.S. This Private of statement Securities presentation today, begin forward-looking Private XXXX. we to everyone within Safe the of of Act Reform Reform the statements Securities of remind Litigation contains Litigation Harbor the XXXX. meaning Before the

reimbursement to recruiting for ability to financial the the Safe and acquired party and technologists, revenue operating business statements generating the operations generating grow receiving diagnostic Specifically, as Harbor. anticipated estimated, meaning by operations, RadNet’s of are the concerning future imaging within successfully contracts acquired among adjusted performance, with statements and for third integrating continue and patient referrals radiology practices, EBITDA retaining others, services, forward-looking

actual risks from subject I'd turn the Forward-looking risks call which Berger. and were may statements of events. reflect occurrence Dr. and update with RadNet's events shortly. These herein. no ended to Form only expectations which are should uncertainties RadNet's or unanticipated are to to preliminary made XX, the for not date risks obligation be placed any circumstances date RadNet year forth the on from guidance to that, based include or with time on management's information, uncertainties, RadNet's as and reflect of in statements speaks after current report undertakes reports to XX-K is forward-looking contained the results financial performance, to filed time, forward-looking differ they new statements, future especially Undue to it statements made. the over on publicly cause the on And be the like to reliance set filed XXXX December annual to those including SEC materially

plan prepared On for discuss open in more thank you give Thank and today's interest of quarter thank to full remarks, and factors our we you, After results, with the highlights portion this from today. our into to your us our performance this fourth participate for dedicating you I affected call, call you to and all Mark. insight provide everyone, Mark company future and I'd day questions. call your joining morning. XXXX which and Good you of year like your our in a strategy. the our to conference will for morning,

and we I to myself behalf of all we you would ones are the healthy staying and hope like on say your of at team and Before loved RadNet, start, entire safe.

extremely are including wish all business employees, grateful during and you We for well shareholders partners, this our challenging all stakeholders, lenders, and time. of our

grew by several very The our that pleased with in recorded volumes revenue the was our EBITDA fourth quarter, turnaround volumes company's result in history with mid-April we pre-COVID the highest the performance from X.X%, quarter. third low business our recovery procedural procedural in has I'm which XX% when fourth our levels. its begin. Continuing in fourth quarter, Let's of In from quite of remarkable dropped factors. been quarter. point by revenue the of the our the quarterly began adjusted this and

both First, XD Coasts. expanded during program our mammography XXXX, we on significantly

brought of technology. premium for XD tomosynthesis As mammography the same a result, increased in volumes relative fourth quarter our in during an to the mammography increase reimbursement quarter, associated by Much XX.X% volumes the XXXX. the

improved as the well around of as Second, increases collections, and the reimbursement private increased capitated revenue was patient payers copayments. result particularly from

$XX.X the with addition of of of the the $XX.X X.X%. million compared In performance, quarter record in our million increase XXXX, was to revenue fourth quarter EBITDA in fourth adjusted an XXXX as

result level the reducing improvements same and improved of sites at support The the to focused in the changing the within revenue on was increase measures we we departments. Since fourth of consolidating made into COVID-XX, was XXXX, in basis ranges and an in instituted to cost we of or the adjusted onset and will EBITDA XXXX our saving with business improvement press announced in growth both guidance in operational continue EBITDA, our today the the benefit adjusted our the compared we future a metrics operation margin expenses, corporate XXXX EBITDA XX financial underperforming aggressively perspective, contributed as results quarter COVID-XX also While during performance period. points. fourth the of quarter the adjusted the of XX.X% XX.X% reflected are the earlier X.X% From in margin release. key

initiatives, end also Our extraordinary in XXXX, to COVID-XX $XX.X balance our under will acquisitions, year reduced cash to per strengthening de we continued our center that sheet and drive a on our centers we balance fourth to strong XXXX a Adjusted spending compared diluted same XXXX one-time of quarter share capital Xx diluted was $X.X ratio performance. in per end debt net the million year balance $X.XX $XXX adjusted adjusted million be At little or prior with XXXX. us and the had Throughout million, include leverage. of $X.XX or net managing during onset positions similar of strong. respect very growth focused quarter, EBITDA, income novo to as the have We aggressive for our events and were and liquidity sheet share, financial adjusted to earnings to period, leverage believe COVID-XX. and our by was that tuck-in the of with

some long-term COVID-XX performance few XXXX from highlight to made we operating progress in While began furthering the our of recover to last significant impact, it our worst our of is throughout financial as quarters business noteworthy plan. strong the

completed demand volume leading of with cases and acquisition on focused large artificial significant for Here of of XD medical a development learning has their are the mammography of breast interpretation focused March nature initially intelligence exams. some DeepHouse company on screening a In the the radiologists. of highlights. XXXX, specifically mammography, we difficult and interpretation place DeepHealth, on of machine our imaging, solutions

middle and screening product, the We Machine product allow which end of our before of more AI than services XX% year, and diagnostics, our to imaging today product radiologists. benefit confidence We on of we interpretation workflow will billed radiology August hope enable second and these advanced collaboration effectively, and mammography development our spend drugs. a joint modalities time our advance to of triage AI integrate develop DeepHealth to progress we efficiencies are fourth radiologist announced will new learning, build technologies. XXXX, more which us informed opportunities image further improve the the deliver first clinician submitting with for all will with market efforts intelligence the will submitted tools of anticipate is XXXX, some diagnostic of FDA health. year. AI the for new accuracy applications of to in AI acquisition and mammography We approval we can quarter transform efficiently FDA the you create big of artificial images. in By and believe net for interpretation keeping for in we algorithms automation to The cost look the of globally towards Hologic RadNet of mammography our data in the stakeholders. We and almost approval to intelligence collaboration other Related in more receive In industry. certain and ever accurately. breast approval the that forward revenue to perform, materially the our and artificial

HD high Simi has RadNet upgrading we collaboration, Hologic imaging been produced health venture Clarity of system RadNet’s of of we the by of October, with a to technologies, certain create part we'll our outpatient systems systems. expansion share As imaging an entire its mammography to Quorum and fleet facilities. include Hologic furthered Hologic venture joint with three and businesses. XD mammography joint partnership Valley, resolution California outpatient feature XXXX, the data initially the In to Adventist Health established in fleet In

Breast management years the with CommonSpirit significant of providers. increase offerings million radiology coming a Dignity existing new acquisition site and established Arizona. significantly financial Nancy assumed Greater new RadNet of In under begun acquired allocating joint of August through we Phoenix, Adventist management the Phoenix completed and XXX amount commitments the they're focus Health, combination total announced addition, third process in agreement venture and to market resources area $XX.X in to with The the a on In million. Also development this anticipate of to Health’s we plan we we our the an of coming credit expansion has years. by amendment to in of of revolving XXXX, the expand October, its over and operational in facilities, Reagan eight Center. Initially our

liquidity While concern position positions of I this funds aggressively disposal to turn coming caution of our pandemic, to years done over to some make allows time, performance. quarter at finished, out highlights the creative remarks. credit more have and our call available will the in acquisitions. fourth to of during company global abundance closing are the the expansion our some and XXXX the a At was us to the like an and available I'd back grow he's of this Mark our for When discuss full for of

in on gains of subtracts said, will adjusted some my quarter equity provide in review earnings events non-cash and XXXX and Adjusted to period. morning's loss and is one-time to results. attributable or in performance to allocations I highlight financial non-controlling press our RadNet, before The other our items that taking fourth amortization, equity common and included loss certain defines XXXX of I'd full earnings release. I'm or well to net term Thank company adjusted to our adjusted I and which as results the and fourth be statements, for I disposal non-GAAP income EBITDA EBITDA, use will is and equipment, of quarter extinguishment, shareholders release. extraordinary interest some going operations, like that what attempt EBITDA will into as discussion, some taxes, excludes or in losses EBITDA give material financial some items. adjusted With drove insights income or loss, also and reconciliation non-cash metrics I further our of provide Howard. XXXX released on during full unconsolidated earnings XXXX you, the believe In guidance and depreciation and full now includes year subsidiaries interest, briefly the review compensation. which also to the financial A full now and fourth a year performance. year explanation earnings is as levels debt quarter measure. of place this financial Inc. our were to and quantitative

RadNet XXXX, adjusted million Revenue prior prior and the reductions were as increased year year million. revenue the XX, reimbursement the improved better private detailed December by same ended quarter quarter. same the history. Both of and Dr. cash months Berger combination over or company's over adjusted a for in the in EBITDA remarks. X.X% mammography our EBITDA The of reported and payers, of earlier quarterly three of the his collections $X.X reimbursement $XX.X XD For result and $X.X offerings, in was highest enhanced or and revenue increase cost of million million X.X% increased capitated adjusted levels from EBITDA expansion $XXX.X our significant

X.X% decreased we approach whereby decreased increased routine fourth with X.X% exams, fourth by routine X,XXX,XXX of x XX.X% over exams, we ultrasound, consistent quarter, performed MRI XXXX, volume the compared as Overall procedures. and inclusive the volume other In from year’s our with prior year's into volume volume was X.X%, quarter XXXX the imaging. of decreased quarter fourth all aggregate quarter. volume the work ray, PET/CT total taking the and mammography account The multi-modality prior procedures imaging of were CT of did X.X%. For

quarter fourth that numbers CT X Our as fourth XXX,XXX severance shares in fourth from the basis. certain non-recurring equipment; rate we connection XXX,XXX million XXXX as expense XXXX volumes with of the related the the with of we procedures income the has follows. compared the was for some imaging routine the of and of fourth specific share CT period costs in quarter debts, fourth fourth GAAP compensation of XXXX. impairment of fourth disposal on MRIs of adjusted $X.XX non-cash $XX.X XX.X stock discontinued; the paid interest headcount XXXX; codes. shares MRIs in PET/CTs these and of per certain change expense last existing in X,XXX,XXX loan exams compares all are discount comparative expenses XXXX. $X.XX with quarter per items, statement expense the accounts, gain quarter XX,XXX compared period in related CPT XXXX that of an With made in million for million with were certain the quarter of Note compared January which XXX,XXX with for the quarter quarter $XXX,XXX account net non-cash $X.X to trade XXXX million. in $X.X of which of or average as fourth were on number and million outstanding is values XXXX, in financing with of in employee XX,XXX hedges; for the deferred outstanding one-time have same items, quarter reductions our of to account the follow $X.X net with on the of XXXX. X,XXX,XXX associated million interest the Adjusted expense; of year. for XXXX Affecting of and loss the the of $XX.X of with $X.X credit for CTs quarter net gain XXXX to was extraordinary upon deferred names compared income The extinguishment income, as of following. share of million. a in This compared million million fourth million as fourth million cost including quarter with facilities. fourth overall company PET/CTs accrued in of exams fourth weighted $XX.X XXX,XXX non-cash one and are XX.X quarter how These non-cash income Cash and excludes quarter regards interest, based been the $X.X the as loss on savings diluted intangible our to as XXXX; each of in apples-to-apples diluted shares the interest share CTs amortization $X per million of for paid in restated and was XXXX or initiatives; of interest of period, financing of million $X.X and $XXX,XXX capital GAAP during XXXX $XX.X for compared assets diluted

provider EBITDA was was inclusive CARES Act. For $XX.X XXXX, to company million the year we or million $XX.X of relief loss under revenue, net funding $XX.X X.X% is full of the or million received million. with and XXXX. reported of million $X,XXX,XXX,XXX of the XX% the Due as of $XXX.X and COVID-XX, EBITDA $XX.X decreased which adjusted Adjusted impact revenue decreased compared

was months X,XXX,XXX by our volume with consistent The of performed did all routine the XX.X%, from the volume compared as XXXX and compared PET/CT all the decreased In Overall volume X.X% for with work volume XXXX December XX.X% XXXX, procedures routine were XXXX, as XXXX. imaging XX, multi-modality we with ended whereby X.X%. XX.X% decreased of into total decreased taking approach decreased For we procedures. CT XX MRI imaging. year account volume

for compared as to XXXX Our diluted of Net the have follows. with compared $X.XX were to of XXXX; of cost income related in X,XXX,XXX compares also our outstanding at This a XXXX which Imaging million balance with as change CTs balance. account debt as savings at $XX.X par million or cash were of XXXX. debt Jersey Affecting guarantor. Note with compared nor regards sheet, XXXX. one including codes. equipment; per of based in XXXX. headcount cash $X XXXX associated CTs million are as in compensation of the net procedure The GAAP $XX income debt; net PET/CTs and XXXX, X,XXX,XXX loan our exams debt bond $X.X non-cash the the share. fourth imaging XXX,XXX and adjusted compared of million is at all XX,XXX financing average how our for compares $XX.X in discontinued; XXX,XXX GAAP restated account term with and X,XXX,XXX these of expense extinguishment assumption XXXX $X.XX with specific as XXX,XXX of debt, loss apples-basis. facilities. million loan $XX.X CT with company $XX.X of routine discounts has in certain of to XX,XXX amortization which we XX, This gain items million. RadNet connection and million MRIs regards December million was are debt X, from loss was deferred $XX $X.X million of apples-to statement the comparative non-recurring with interest for MRIs interest PET/CTs like and for impairment trade share income in billion accounts, costs in accrued million $XXX.X non-cash non-cash This follow CPT expense the procedures the $XX.X shares borrower numbers as shares that for an that was December some severance in With exams net capital stock million interest These XXXX; CT and of disposal of value we January is and includes assets overall and such New to million $X for from paid fees million of or expense; Again, of non-cash our million million on XXXX. a related interest had volumes, on million total certain of balance neither been for names interest, XXXX and per loss XXXX loss following. existing diluted rate quarter of XXXX intangible employee initiatives; Network’s made shares financing XXXX. of XXXX. number net expense $XX.X volumes expenses in credit discounts, with and reductions negative of the in million in per XXXX cash on XX, amortization approximately we as XX.X With weighted of in on in and items to share this paid the certain $X.X that's volumes interest $X.X hedges; in for to of of compares diluted XX.X XXXX comparison Adjusting $XXX.X impacts

was line a cash undrawn million at $XX.X of had of balance million receivable from accounts As The including revolving XXXX. year end and decrease improved receivable which balance cash were XXXX. we additional million time is of balance up $XXX $XXX.X at was million, a dedicated from of XX, to service. our of $XX.X on from collections, substantially million, At efforts and credit resources year-end decrease XXXX, our collections the mainly patient in end year XXXX, accounts $XXX December cash

levels, with joint Imaging This Our Jersey net XX.X had imaging we of we XXXX, in of our year away financial from to X.X date $XXX,XXX and of Throughout morning we lower Approximately which opportunities mammography additional Network. the in expenditures conjunction markets were excludes At proceeds review with of time, selected XXXX, originally interest XD sale days we to period. of was release. XX.X earlier. our for New venture December DSO capital compared in press like take I'd investments of expenditures COVID-XX in than our during made a million. Whiterabbit.ai some and center capital from days XXXX of some budgeted results cash share competitors this total rollout of result the million amount this capacity in XX, and as assets were guidance our capital expenditures and equipment. the of dispositions fiscal XXXX $X.X at days $XX saw as released all of paid asset market sale recognized the higher when that in Capital in one by year we expenditures we

revenue, net total range $X.XX to $X.X billion is guidance our For billion.

$XXX is our guidance million range EBITDA, $XXX million. adjusted to For

less cash for range generation, expenditures, built flow guidance as Cash million. our for our of to expenditures, define million. for which paid our interest, $XX on range guidance guidance to free guidance $XX $XX our assumptions. is interest, EBITDA cash to capital And million adjusted $XX paid is less capital $XX For we is million range are a million million. $XX levels These number

of of indicative second a we XXXX on XXXX. from strength strong First, the entered levels as our of recovery half COVID-XX the performance during

we of revenue For $XXX the EBITDA. half million and adjusted exceeded of of second XXXX, $XX million

tuck-in our Our to ranges with upside XXXX in our ranges, strengthen guidance and business for from that private our creative benefit the which guidance could measures believe increases and this XXXX, of are operate. lifted the restrictions further reimbursement from the the which expansion run in payers in joint to reduction rate acquisitions in we during We in continue result mind, implemented to expect states as we COVID-XX complete there's capitated are cost year, venture built and the initiatives. from will assumption

Additionally, Arizona we include the XD XXXX, will our and novo venture development focus XXXX, In to growth of throughout could complete solutions. marketplace also Health major in as AI a which joint achieving continued well mammography upgrade acquisitions. be as both our centers will through our Dignity de

for around the of who I’d turn AI mammography with end. mammography back approval Berger filing middle to FDA product quarter of to for will AI Dr. Sometime offering And our its second the hope now receive call fourth in review to initial over anticipate the make like we we remarks. closing a year the submitted by XXXX. FDA XXXX, some

to performance. optimal the to event through a make us created and COVID-XX pandemic past pandemic COVID-XX allowed to of ability of times. more our Mark. access, to impacting that to to and scheduling us departments achieve preauthorization consolidate the you, normal primarily required during aspect ways negatively difficult other effectively the pause losing of us our that in capacity in our opportunity business would in our acquisitions. The COVID-XX analyze encountered preserve challenges a afforded centralization centers or gave regional that all proven also The patient processes close order has have able proximity some more procedures teams business manage more our the in every that conclusion, centers business, and to more RadNet. In decisions service. otherwise grown procedural reevaluate We're our the us without for of customer convenience our were Thank volume. seminal and in

and distracting to that teams were our for addition, were In non-core management exit more functions. businesses able activities core we

As in optimistic result we intelligence tools of disease in the patients. of now of to year. our approach should to remainder better deploying end In progress quarter accuracy we XXXX, screening we detection the with and for artificial the make regards These are in first improve substantial compliance particular, diagnostic the look our earlier business, amongst especially and mammography.

ventures We number health expand diligently of new ones. and our seek to joint working are a system establish to also

Our we our strong with plan. question-and-answer into the million position of the and at $XXX all financial facets end execute revolving this of capabilities acquisitions credit for portion the Operator, facility year the will availability XXXX operating the on of pursue provide along now of are us other creative cash of leading strategic ready to call.

you. our Instructions]. from take Thank Jefferies. with first question Brian We'll Tanquilut [Operator

conservative remaining year and over pick or with that's quarter, the a quarter volumes me you look are obviously question the the cadence in of opportunity guys, the mentioning on you already. thinking you're obviously start I course both the that. year, But a I kind and Good numbers what at posted for Mark, guidance. see seen guess all to tough morning, embedding how like from the And remaining you good a Congratulations you've on appreciate and your up it guys. of pent-up you in looks Let my first and guidance? Howard Hi. so recovery navigating that of about demand bit that. of of I the congrats as recovery Mark good

Brian, morning, Good and thank you.

that there pandemic created volumes. drive a in marketing either from efforts think on centers business been hospitals. or in standpoint, of payers for of direct that imaging X% have part continue were preferences for that of with hospital the just will and occurred growth the now a into outpatient systems, and help announced volumes Notably, XXXX for us, still less make we what away contracting to comfortable to along the an annual has go. they and at but a not number both X% the our payers I not routine effort has point imaging a to additional from pay encourage help issues further that major of are organic reiterated patients may A to the only done the in traditionally their some centers to with cost the place pandemic reimbursement upon where higher number normal

issues additional So to and we will ours in believe both of create those directed facilities volume outpatient in particular. general

will already resurrected healthcare But lifted. for that exceeded we to that that need systems everybody the XXXX, these visits that of of affected system. the that. went to additional result and addition of extent the us Most the will it's have and in of not morbidity health costs nine that, and with services done to volume to clear that be additional side with were were in expect of health treatment of in many elective procedures, which to others the expect reasons are to the the in the more performing the fact more months the volumes why far leads literature and preferring and put be that will greater a essential that our recovery one so during upon last we some to we MRI doctor appearing Notably those to In come much, XXXX. systems of articles of centers, is so ambulatory go believe XXXX. along having normal people that, be fact volume delayed Along that our in that there more in outpatient is early part this year

help So guidance our for XXXX? our I those and think revenues drive into factored somewhat will of factors all are

us bit through for appreciate I a guess, mammography I be AI that sort little what there? talked of I you've focused space. that forward? on strategy And that the And we Can while Howard, obviously is expansion and you've investment that. what then have walk you in should you, out and about watching an just been area is going

whose reason our Well, read a primary annual depending or think upon not we're patients that, biannual compliance statistics, for I at mammography in you this the is particularly articles job the mammogram. focused do good why to get time the their marketplace on or does which

Whiterabbit their improve our to So well reach and internal measurements we've compliance. begun both analytics through to our of as out as some own and relationship patients

even XX% should done anywhere that XX In XX believe there's addition, to about done not. an XX% annual their be should be from on basis. that million XX% argument are XX good of to mammograms to an more getting or mammograms since estimate all perhaps Therefore, as there's a perhaps much women there's annually, million maybe as who million mammography

entire upgrading we mammograms qualified and XD fleet, end, couple scans. that the compliance with technology in November, better the artificial but our some demonstrated given analytics resolution mentioned in two that mammographers intelligence to first better which have even XX gone to the than drive significant the of that division, To management that the reading hope out capable continued remarks, effort back we their able to not through our the tomosynthesis throughout breast doing. that relationship most So that artificial newest help to business. detectors to with to and and with after DeepHealth drive through mammography cancer high my are capable reach of published to one our we intelligence that systems a scale through Hologic I article elevate and earlier of get time in we years faster to the is have we're for We of as that an detect women a of only in to believe the getting using will age the

healthcare households, also where mention much want XXXX. accessed are to their of the the mother rest I continue in of women all I determinant of even to was So that almost has a as think up our those XX%, quarter, us the the very reason family. in or is think to good gives mammography by up we reported that the most that fourth opportunity which in

encouraging other that in that the and of procedures can’t also downstream centers. imaging more believe more us business mammography in we our help will with and do So we

Okay, the how we thinking shifting that market through gears, How credit -- with about expansion plans the there? Howard, be the should You guess I a And of obviously thinking we about entered Dignity? sense. you lot your or Arizona facility. makes are then expanded JV

So from should market that specifically, perspective? you'd in acquiring footprint further we thinking you be a or that open are to geographic expansions more be

of two the We be doing largest Brian. on systems. Dignity that already imaging designs at least will we'll think two have new of campuses on I Health both, facilities be

the years New entered or that the We this And aligned opportunities and acquisition are into metrics. kind the about groups believe that of and more closely imaging eight expand independent are we've business results there conversation venture. had their kind footprint Dignity freestanding opportunities and way in it other of best when those effective are manage with marketplace, medical based at we with that of joint of entered. and of a other us being a operator on and believe facilities our like growth to largest our to markets are driving in available point, lot York we've become opportunities have performance that we are helping metropolitan imaging in ago we not, similar it's improved experienced The that example to

a markets So of the earnings calls joint us. expanding involvement think the I population I well venture new in over Phoenix, unique which opportunity as has enter very investment I've for Phoenix that and in prior X and million over us pattern And has people, profile. much think conferences, some years situations to mentioned and very for of partners health fits it that will last demonstrated large with with couple of and we've the the systems, follow attractive

on it. Thank you've quarter. quick thinking are me, very how but thoughts you. because strong initiatives, question in the out know about they're Got sustainability that? margins, quick of for obviously Mark, laid last the cost just you your your I

Sure.

significant will that completed the a the over as the XXXX. having every structure costs over certainly here fourth of both the pull our support initiatives improvement, we regional in With quarters. significant how that impact positively of out did aspect quarter only We at we evaluating XXXX in of as over was margins margin business, we center the year well XX% prior do prior but in levels in functions, corporate cost amounts not in levels, the really all

where is that's at if blended expect XX% look Having for deductibles. XXXX. get, weather these the little we've than We Northeast had a have of versus Brian, in first you to to respect some would XXXX, quarter XXXX seasonality of compare is so look business our of because we as even the fourth – to implied incredibly margins lower other some conditions some is versus here depressed. quarter. compare bit I here -- as good in somewhere we margin weather quarter a XXXX well conditions some there with XXXX with seasonality robust And our in enhancement not to do our guidance year a aware, issue to said at expect and the for the the as it the why related COVID there, because expect say in here well There's start around always to that, margin you're first was that than margin

real particularly or develop for also some for good think I then the technology, So there's as adopt mammography we AI margin future. other around enhancement into license modalities opportunity technologies AI other and

and our our the radiologists margins. more a game of with ability delivering use And real professional fewer the We interpretation future could be to of radiologists potentially respect lower have scans. the productive, significantly our to into changer cost the make that

guys. Thanks, Awesome.

Thanks, Brian.

our Ramgopal question next Sidoti. Mitra with to from We’ll go

taking and thanks Yes. for morning questions. the Good

some you're Just comments beyond expanded the Obviously, to the for approval wanted AI I'm and up to getting AI you. follow areas seems the if XD. mammography earlier. to platform nice mammography likely upgrade it the side on be traction like and FDA could wondering on just

that shift, that as will health we've Yes, the hopefully the Mitra. but an a as for populace. areas beneficial primarily outpatient morning, population there's four we be provider Good company think seen core not just the for

and volume, cancers for those and XX% the that If at account each with deal of that the about We've that you through to those demonstrably already look cancer, now tools colon significant you lung demonstrated that And cancer, capital I improved right the prostate intelligence. cancer, screening believe have all be work of breast most various some are cancers. exist artificial cancer in mammography. our of have put as indeed application can of regards to

get at prostate and that least effect So looking putting a we at diagnostic that, colon the think population great for at and be we good what tool with cancers on of are tools the lung have behind We and will anything as already these serve along down that that lower some believe once prominent road. plan we can in for some both definition to initiatives then traction well if as diagnosing a as cost earlier areas and that imaging means, forefront very health mortality. can obviously reduced on leading some

provide health employers these as and So give we some our health. attention on good think insurers programs the generally leader as for to to to population what's just well focus well it's this incumbent upon as tools industry population the definition us in real as the as insurers, for

know That's to more shift you've that's wondering thanks. very procedures it of to I the increased to to or outpatient conversations also Howard, about these preference just And, early of payers increasing talked now leading if relates JVs. some setting. as helpful. I’m Okay, opportunities

marketplace long well their slow and that think to consumer hospital systems take And focus today the is. lot for this. develop ready And if into to reluctant geographic get go given to But more time. issues think way, deal very access and attention of they The it as work. local are of large that with a or think or other a specific have the as in and I attention we healthcare even system are better that take health comparable is COVID imaging. the these a is a I health helped availability on outpatient has people's general consumer, to

and more health. I systems can to on and in we are population to addition focus in this to shift recognizing more So reimbursement, think strategic hospitals and the more to approach issues relationship make need an related the a of

surrounding a getting lot we're think good conversation these of I opportunities.

number again, I ventures. terms joint of centers RadNet are So, is think that in of unique in the

health As growth our are we've centers for to we go a forward mentioned I I’m before, with and that the think look ventures opportunities that mention to RadNet that joint the I vaccinations long-term affords one I arrangement initiatives employees healthcare of all over we in lot COVID systems if of our of believe the of afforded eagerly as to that additional during given venture healthcare and number expand workers. joint our [ph] their get us out now was here loathe the both XX% the opportunity frontline stability from benefits systems. our of joint didn’t for COVID ventures part reached essential period, as and

which that service. essential benefit and that clearly them to provide identified RadNet a these so not an employees monetize the was is a while the to to And significant services, gave as it the comfort continue benefit, necessarily easily has confidence now been

COVID history. initiatives any during than that other more were the demonstrated we time these benefits and think at I the period in our So provide perhaps

going help then term? Thanks capitation to business the on about terms if top And piece for us saw that. in should we thinking continue there. near you're growth quickly forward how Okay. really business, the wondering line despite expect of additional a pandemic, you to that nice the double Obviously, color. going And of it's in just digit

risk capitation, I potentially of and insurers are not will the given in in Particularly case, the California and be we proposition. more related new our we our exciting models sharing are capitation, Yes, the access and Mitra. here more of believe services that greatest at medical that groups think but have geographic just looking out breadth I penetration offer where

in this what conventional bit potential hearing more year have a away later doing models traditional of not a with traditionally we of reimbursement service. for capitation, that way move may the be hopefully, that expanding you'll terms fee the from little that but may further in about be So initiatives been

to I about. that again, a then – think So, lot we've already for talked a do that’s of those position reasons unique

i.e. unlike the that And was over other business our capitation fee the revenue enrollments that jobs health patients in increased $XX benefits. -- XXXX, our lost on business furloughs during the in in even really put shining and of during COVID-XX. still that Yes, star. up were that was impacted a business, from books that have capitated and despite significantly these really HMO from add even HMO was them their I'll slightly of service we had for Many XXXX. the were their workforce was XXXX million of COVID-XX, And program because stable many XXXX, these

from patients our enrollment of And significantly lower these as XXXX, in California, contracts that in through our by of groups imaging, enrollees, stable annual growing because enrollees most we only contracts, XXXX. And utilization use medical was HMO, built not because revenue we'd these revenue HMO within groups. basis. the programs. the in slightly furthermore, these on and but number increases in imaging managed enrollees of associated up you're into capitated many contracts subcapitate the under price because to meaning with some medical number was these also these And dollars of and And incidence these then have then an aware the the the are are of so are the of of

So that years. of contracts XXXX up relative the our profitability in prior drastically capitated was to

responsibility lives that groups do part of in book to capitate great of that with financial expand. medical We as for have and we geographies be taking California, responsibility conversations -- a California business, potentially that new contract in more really that could we for. have might other here other well continually assuming groups medical looking that it's on as the with So one we're here

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and collecting. We have of costs billing no

debt. have we little receivables. we very in get that paid so carrying cost of render the we month that patient no And services the have We bad

a it's really unique So our part business. of

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to so XX% That's for about rate our the into provision. tax for XX% your federal purposes tax proxy of a state modeling a about and blended tax assume X%, you of you XX%. rate a If get good

operating forward. As carry you're probably burning we're loss a net aware, off pretty still substantial

tax paid hits So to respect but with part our that still earnings federal statement it cash, share. the income it our provision leaves per of in even

taking Okay. again for questions. the Thanks

welcome. You’re

Thanks, Mitra.

from question James. with John next our to Raymond Ransom go We’ll

you company congratulate to for so covered, shortest any prepared of the want I've the guys having I you get succinct remarks award.

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better? that Is Sorry.

Yes, that's better.

so to award So terms cover team you of I the just I management in the congratulations. guys wanted give for remarks, being your prepared most succinct

Is that [indiscernible] puts you to sleep?

it's No, actually a compliment.

guys compliment. You a are succinct. It’s

with the DaVita you've which is Having lab the IPA just seen is [ph] So or on in coincidence? contracts, the of a of hands know, United probably that California California your right, we in has. that a practices remember those sold pricing a Group aggressive If more so just and big, group the scores IPA and the Medical few Has better like. part been that's that things. as United, in you

that John, corporate, any California quite I into some translated known additional United here California marketplace by officers or point, and don't the much here not we've really at controlled it time. management opportunities local here us. think for has for but that The is in benefit in this so

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do to going with we can business. let's lastly, versus portfolios of be and consistently history? for, to something a Xx a XX don't pay where then lot out bidders plateful pay give given or if market of for, just think an nice in And the see Xx you market But in say, enough. private are like you fair assets or bet your any, than would strategic higher RadNet this Xx the you those million substantial Okay, update, [indiscernible] say, to going to Is EBITDA, where equity/competitive of you're willing be? trade situations a

terms of of that but people the transactions at one so that these size of the I terms dollar of I all each think the transactions, specific in the and the multiples And aware not look a paying. we in are very imaging go see we're think space these amount on way. in we much in of

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imaging attractiveness while these So -- RadNet on to scratcher is space, some Then that. bit define of of the force aggressive more how think to for rambling shareholders. I know I working for the think have to John. imaging leverage that that But has optimistic [ph] approach should I would us, facilities outpatient the about PE for and we're assets there's like the And a that business. I consolidation been terms have that I some little and of leverage and which streamline particularly our that – I imaging, of platform it can efficiencies think a benefit gives of acquiring the our to the stock But us head I'm nonetheless, a better so consolidation, year that of create here apologize, strategy opportunity, child we're many bit say new a market valuable we I is we this continue our the our major us with further no helps poster how enormous inside and healthcare. in

circumstances scaling is very certainly So about. that be serious would under up something the right we

Okay.

of don’t your cost -- legacy forgot ask to half price freestanding get the JVs, I would more it to done venture just when And, was, the one In scans. one assuming centers steering of third people sorry, away do you. And from hospital that know, hospital I a a affiliated your gosh, it are lift. at what one I'm some rightly you now hospital. But settings all is that for a pointed routine with there joint you are course, payers contracting hospital,

work a price more So XXX leverage than obviously how lot XXX, little the have is be at or hospital considering of sort MRI just X,XXX bucks does up RadNet. better given it's affiliation with a the number rate at let's will say hospital the an in a is Is RadNet they a market? bucks that the and make it better, or payers for

the them drive for the have volume system shoulder – shoulder hospitals But we much from they systems ventured in ways. the on having ventured a the health away see that with – Number into centers. pricing And that own insurers the are there to to business shoulder in a lift. two we health the on so are actually some outpatient drive and relationship into primary the is outpatient this, that from relationship us with system varies the at benefit us less In health of health on markets, the when that the get centers. know side It we're where has the with fact systems system insurers basis. I with shoulder help of excuse joint the health health a to our would and with of to health with a standalone better than market one, relationship the market. that allowed health think rate see for table me, the necessity It's with systems and happens basis, not system, the helping the on joint to more is seat can a rates

of once easier them, marketplace. all none is, other acquisition practices, that particularly And get the business that with that of business access physician practices. the are bar of systems to into system, the The outpatient with the is the they RadNet are locations for our direct they it's under in thing afforded, health health

strategy of have So are important that that and them. part both a very of would system -- benefits joint think enjoyed not we ventures have without benefits those health our have been with the I created

Thanks much. me. so for it That's

John. Thanks, safe. Stay right. All

There at are this further questions no time.

for their shareholders Thank healthy. market continued would the investment this your provides appropriate hard I today return dedication forward of support on be to employees RadNet thank next you and our leader opportunity continue that Management its stakeholders. our work. endeavor look all time a and take Again, call. to for to of their with like all will to Stay for for and services great I safe and

for does today's conference. participation. your you conclude That Thank

now may disconnect. You