XML 14 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6

NOTE 2 - SUPPLEMENTAL GUARANTOR INFORMATION

3 Months Ended

Mar. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 2 — SUPPLEMENTAL GUARANTOR INFORMATION

The following tables present unaudited interim condensed consolidating financial information for: (a) RadNet, Inc. (the “Parent”) on a stand-alone basis as a guarantor of the senior secured term loan due 2016 and the senior notes due 2018 ; (b) Radnet Management, Inc., the subsidiary issuer (the “Subsidiary Issuer”) of the senior secured term loan due 2016 and the senior notes due 2018; (c) on a combined basis, the guarantor subsidiaries (the “Guarantor Subsidiaries”) of the senior secured term loan due 2016 and the senior notes due 2018, which include all other 100% owned subsidiaries of the Subsidiary Issuer; (d) on a combined basis, the non-guarantor subsidiaries, which include joint venture partnerships of which the Subsidiary Issuer holds investments of 50% or greater, as well as BRMG, which we consolidate as a variable interest entity. Separate financial statements of the Subsidiary Issuer or the Guarantor Subsidiaries are not presented because the guarantee by the Parent and each Guarantor Subsidiary is full and unconditional, joint and several. In lieu thereof, the Parent includes the following:

		Parent				Subsidiary Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	-			$	-			$	881			$	953			$	-			$	1,834
Accounts receivable, net			-				-				77,300				56,671				-				133,971
Prepaid expenses and other current assets			-				10,572				8,194				1,093				-				19,859
Total current assets			-				10,572				86,375				58,717				-				155,664
PROPERTY AND EQUIPMENT, NET			-				47,014				172,378				814				-				220,206
OTHER ASSETS
Goodwill			-				42,871				115,878				844				-				159,593
Other intangible assets			-				33				52,034				132				-				52,199
Deferred financing costs, net			-				12,719				-				-				-				12,719
Investment in subsidiaries			(69,410	)			256,851				9,898				-				(197,339	)			-
Investment in joint ventures			-				-				22,933				-				-				22,933
Deposits and other			-				1,298				1,672				-				-				2,970
Total assets		$	(69,410	)		$	371,358			$	461,168			$	60,507			$	(197,339	)		$	626,284
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Intercompany		$	-			$	(166,883	)		$	124,700			$	42,183			$	-			$	-
Accounts payable, accrued expenses and other			-				58,710				44,841				7,544				-				111,095
Due to affiliates			-				-				3,213				-				-				3,213
Deferred revenue			-				-				1,162				-				-				1,162
Current portion of notes payable			-				2,953				3,290				-				-				6,243
Current portion of deferred rent			-				506				503				-				-				1,009
Current portion of obligations under capital leases			-				2,597				2,861				-				-				5,458
Total current liabilities			-				(102,117	)			180,570				49,727				-				128,180
LONG-TERM LIABILITIES
Deferred rent, net of current portion			-				7,766				4,919				-				-				12,685
Deferred taxes			-				-				277				-				-				277
Line of credit			-				60,700				-				-				-				60,700
Notes payable, net of current portion			-				473,562				9,013				-				-				482,575
Obligations under capital leases,net of current portion			-				857				1,410				-				-				2,267
Other non-current liabilities			-				-				8,128				-				-				8,128
Total liabilities			-				440,768				204,317				49,727				-				694,812
EQUITY DEFICIT
Total Radnet, Inc.'s equity deficit			(69,410	)			(69,410	)			256,851				9,898				(197,339	)			(69,410	)
Noncontrolling interests			-				-				-				882				-				882
Total equity deficit			(69,410	)			(69,410	)			256,851				10,780				(197,339	)			(68,528	)
Total liabilities and equity deficit		$	(69,410	)		$	371,358			$	461,168			$	60,507			$	(197,339	)		$	626,284

		Parent				Subsidiary Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	-			$	1,366			$	-			$	1,089			$	-			$	2,455
Accounts receivable, net			-				-				78,229				50,203				-				128,432
Asset held for sale			-				-				2,300				-				-				2,300
Prepaid expenses and other current assets			-				11,858				6,651				631				-				19,140
Total current assets			-				13,224				87,180				51,923				-				152,327
PROPERTY AND EQUIPMENT, NET			-				46,445				168,213				869				-				215,527
OTHER ASSETS
Goodwill			-				42,784				115,878				845				-				159,507
Other intangible assets			-				50				52,916				139				-				53,105
Deferred financing costs, net			-				13,490				-				-				-				13,490
Investment in subsidiaries			(70,756	)			249,763				9,974				-				(188,981	)			-
Investment in joint ventures			-				-				22,326				-				-				22,326
Deposits and other			-				1,279				1,627				-				-				2,906
Total assets		$	(70,756	)		$	367,035			$	458,114			$	53,776			$	(188,981	)		$	619,188
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Intercompany		$	-			$	(160,017	)		$	124,679			$	35,338			$	-			$	-
Accounts payable, accrued expenses and other			-				50,262				45,324				7,515				-				103,101
Due to affiliates			-				-				3,762				-				-				3,762
Deferred revenue			-				-				1,076				-				-				1,076
Current portion of notes payable			-				2,981				3,627				-				-				6,608
Current portion of deferred rent			-				502				497				-				-				999
Current portion of obligations under capital leases			-				2,996				3,838				-				-				6,834
Total current liabilities			-				(103,276	)			182,803				42,853				-				122,380
LONG-TERM LIABILITIES
Deferred rent, net of current portion			-				7,734				4,673				-				-				12,407
Deferred taxes			-				-				277				-				-				277
Line of credit			-				58,000				-				-				-				58,000
Notes payable, net of current portion			-				474,165				9,881				-				-				484,046
Obligations under capital leases,net of current portion			-				1,168				2,170				-				-				3,338
Other non-current liabilities			-				-				8,547				-				-				8,547
Total liabilities			-				437,791				208,351				42,853				-				688,995
EQUITY DEFICIT
Total Radnet, Inc.'s equity deficit			(70,756	)			(70,756	)			249,763				9,974				(188,981	)			(70,756	)
Noncontrolling interests			-				-				-				949				-				949
Total equity deficit			(70,756	)			(70,756	)			249,763				10,923				(188,981	)			(69,807	)
Total liabilities and equity deficit		$	(70,756	)		$	367,035			$	458,114			$	53,776			$	(188,981	)		$	619,188

		Parent				Subsidiary Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
NET SERVICE FEE REVENUE
Service fee revenue, net of contractual allowances and discounts		$	-			$	34,544			$	119,581			$	14,375			$	-			$	168,500
Provision for bad debts			-				(1,267	)			(4,598	)			(619	)			-				(6,484	)
Net service fee revenue			-				33,277				114,983				13,756				-				162,016
OPERATING EXPENSES
Cost of operations			-				30,386				91,505				13,509				-				135,400
Depreciation and amortization			-				3,147				11,683				62				-				14,892
Loss on sale of equipment			-				137				(113	)			-				-				24
Severance costs			-				33				390				26				-				449
Total operating expenses			-				33,703				103,465				13,597				-				150,765
INCOME (LOSS) FROM OPERATIONS			-				(426	)			11,518				159				-				11,251
OTHER EXPENSES
Interest expense			-				7,978				5,589				-				-				13,567
Other expenses (income)			-				(1,213	)			66				-				-				(1,147	)
Total other expenses			-				6,765				5,655				-				-				12,420
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES			-				(7,191	)			5,863				159				-				(1,169	)
Provision for income taxes			-				(2	)			(243	)			-				-				(245	)
Equity in earnings (losses) of consolidated subsidiaries			(111	)			7,082				200				-				(7,171	)			-
Equity in earnings of joint ventures			-				-				1,262				-				-				1,262
NET INCOME (LOSS)			(111	)			(111	)			7,082				159				(7,171	)			(152	)
Net loss attributable to noncontrolling interests			-				-				-				(41	)			-				(41	)
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.COMMON STOCKHOLDERS		$	(111	)		$	(111	)		$	7,082			$	200			$	(7,171	)		$	(111	)

		Parent				Subsidiary Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
NET SERVICE FEE REVENUE
Service fee revenue, net of contractual allowances and discounts		$	-			$	31,116			$	97,839			$	15,128			$	-			$	144,083
Provision for bad debts			-				(991	)			(3,488	)			(552	)			-				(5,031	)
Net service fee revenue			-				30,125				94,351				14,576				-				139,052
OPERATING EXPENSES
Cost of operations			-				26,728				75,112				13,988				-				115,828
Depreciation and amortization			-				3,496				10,315				110				-				13,921
Loss on sale of equipment			-				87				172				-				-				259
Severance costs			-				69				76				-				-				145
Total operating expenses			-				30,380				85,675				14,098				-				130,153
INCOME (LOSS) FROM OPERATIONS			-				(255	)			8,676				478				-				8,899
OTHER EXPENSES
Interest expense			-				7,319				5,578				18				-				12,915
Other income			-				(1,871	)			-				-				-				(1,871	)
Total other expenses			-				5,448				5,578				18				-				11,044
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES			-				(5,703	)			3,098				460				-				(2,145	)
Provision for income taxes			-				(13	)			(132	)			(2	)			-				(147	)
Equity in earnings (losses) of consolidated subsidiaries			(876	)			4,840				390				-				(4,354	)			-
Equity in earnings of joint ventures			-				-				1,484				-				-				1,484
NET INCOME (LOSS)			(876	)			(876	)			4,840				458				(4,354	)			(808	)
Net income attributable to noncontrolling interests			-				-				-				68				-				68
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.COMMON STOCKHOLDERS		$	(876	)		$	(876	)		$	4,840			$	390			$	(4,354	)		$	(876	)

CASH FLOWS FROM OPERATING ACTIVITIES		Parent				Subsidiary Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net income (loss)		$	(111	)		$	(111	)		$	7,082			$	159			$	(7,171	)		$	(152	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			-				3,147				11,683				62				-				14,892
Provision for bad debts			-				1,267				4,598				619				-				6,484
Equity in (earnings) loss of consolidated subsidiaries			111				(7,082	)			(200	)			-				7,171				-
Distributions from consolidated subsidiaries			-				-				276				-				(276	)			-
Equity in earnings of joint ventures			-				-				(1,262	)			-				-				(1,262	)
Distributions from joint ventures			-				-				1,575				-				-				1,575
Deferred rent amortization			-				36				252				-				-				288
Amortization of deferred financing cost			-				771				-				-				-				771
Amortization of bond discount			-				65				-				-				-				65
Loss (gain) on sale of equipment			-				137				(113	)			-				-				24
Amortization of cash flow hedge			-				276				-				-				-				276
Stock-based compensation			-				294				881				-				-				1,175
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions:
Accounts receivable			-				-				(3,014	)			(9,009	)			-				(12,023	)
Other current assets			-				1,286				(1,472	)			(497	)			-				(683	)
Other assets			-				(19	)			(45	)			-				-				(64	)
Deferred revenue			-				-				86				-				-				86
Accounts payable, accrued expenses and other			-				3,175				(8,028	)			8,832				-				3,979
Net cash provided by operating activities			-				3,242				12,299				166				(276	)			15,431
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of imaging facilities			-				-				(580	)			-				-				(580	)
Purchase of property and equipment			-				(4,445	)			(9,517	)			-				-				(13,962	)
Proceeds from sale of equipment			-				43				367				-				-				410
Proceeds from sale of imaging facilities			-				-				2,300				-				-				2,300
Purchase of equity interest in joint ventures			-				-				(920	)			-				-				(920	)
Net cash used in investing activities			-				(4,402	)			(8,350	)			-				-				(12,752	)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes and leases payable			-				(1,406	)			(3,073	)			-				-				(4,479	)
Deferred financing costs			-				-				-				-				-				-
Proceeds from, net of payments on, line of credit			-				2,700				-				-				-				2,700
Payments to counterparties of interest rate swaps, net of amounts received			-				(1,500	)			-				-				-				(1,500	)
Distributions to noncontrolling interests			-				-				-				(302	)			276				(26	)
Net cash used in financing activities			-				(206	)			(3,073	)			(302	)			276				(3,305	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH											5				-								5
NET INCREASE IN CASH AND CASH EQUIVALENTS			-				(1,366	)			881				(136	)			-				(621	)
CASH AND CASH EQUIVALENTS, beginning of period			-				1,366				-				1,089				-				2,455
CASH AND CASH EQUIVALENTS, end of period		$	-			$	-			$	881			$	953			$	-			$	1,834

CASH FLOWS FROM OPERATING ACTIVITIES		Parent				Subsidiary Issuer				Guarantor Subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net income (loss)		$	(876	)		$	(876	)		$	4,840			$	458			$	(4,354	)		$	(808	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			-				3,496				10,315				110				-				13,921
Provision for bad debts			-				991				3,489				551				-				5,031
Equity in (earnings) loss of consolidated subsidiaries			876				(4,840	)			(390	)			-				4,354				-
Distributions from consolidated subsidiaries			-				-				344				-				(344	)			-
Equity in earnings of joint ventures			-				-				(1,484	)			-				-				(1,484	)
Distributions from joint ventures			-				-				1,764				-				-				1,764
Deferred rent amortization			-				69				36				-				-				105
Amortization of deferred financing cost			-				748				-				-				-				748
Amortization of bond discount			-				58				-				-				-				58
Loss on sale of equipment			-				87				172				-				-				259
Amortization of cash flow hedge			-				306				-				-				-				306
Stock-based compensation			-				262				786				-				-				1,048
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions:
Accounts receivable			-				-				(7,746	)			(4,861	)			-				(12,607	)
Other current assets			-				(981	)			(981	)			(383	)			-				(2,345	)
Other assets			-				41				10				-				-				51
Deferred revenue			-				-				(186	)			-				-				(186	)
Accounts payable, accrued expenses and other			-				(8,679	)			13,167				4,847				-				9,335
Net cash provided by (used in) operating activities			-				(9,318	)			24,136				722				(344	)			15,196
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of imaging facilities			-				-				(6,343	)			-				-				(6,343	)
Purchase of property and equipment			-				(3,167	)			(11,830	)			(619	)			-				(15,616	)
Proceeds from sale of equipment			-				-				235				-				-				235
Purchase of equity interest in joint ventures			-				-				(1,500	)			-				-				(1,500	)
Net cash used in investing activities			-				(3,167	)			(19,438	)			(619	)			-				(23,224	)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes and leases payable			-				(1,890	)			(4,515	)			(85	)			-				(6,490	)
Deferred financing costs			-				(218	)			-				-				-				(218	)
Proceeds from, net of payments on, line of credit			-				15,900				-				-				-				15,900
Payments to counterparties of interest rate swaps, net of amounts received			-				(1,611	)			-				-				-				(1,611	)
Distributions to noncontrolling interests			-				-				-				(377	)			344				(33	)
Proceeds from issuance of common stock			-				99				-				-				-				99
Net cash provided by (used in) financing activities			-				12,280				(4,515	)			(462	)			344				7,647
EFFECT OF EXCHANGE RATE CHANGES ON CASH											13				-								13
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			-				(205	)			196				(359	)			-				(368	)
CASH AND CASH EQUIVALENTS, beginning of period			-				205				-				422				-				627
CASH AND CASH EQUIVALENTS,  end of period		$	-			$	-			$	196			$	63			$	-			$	259

X

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph c

-Article 5



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 12



Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 06

-Article 9



Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 05

-Paragraph c

-Article 7



Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 45

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7656940&loc=d3e5283-111683



Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 3

-Subparagraph (SX 210.12-04)

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24072-122690



Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 24

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Name:	us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration