XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.19.2

SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2019
Accounting Policies [Abstract] |
Service Fee Revenue | total revenues during the three and six months ended June 30, 2019 and 2018 are presented in the table below based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
2019 |  | 2018 |  | 2019 |  | 2018
Commercial insurance | $ | 160,185 |  |  | $ | 135,479 |  |  | $ | 311,899 |  |  | $ | 261,751 |
Medicare | 60,151 |  |  | 49,079 |  |  | 114,280 |  |  | 93,107 |
Medicaid | 7,295 |  |  | 6,760 |  |  | 14,423 |  |  | 12,800 |
Workers' compensation/personal injury | 11,014 |  |  | 8,450 |  |  | 22,062 |  |  | 16,906 |
Other patient revenue | 6,017 |  |  | 6,521 |  |  | 11,858 |  |  | 12,112 |
Management fee revenue | 1,753 |  |  | 3,945 |  |  | 3,870 |  |  | 7,621 |
Teleradiology and Software revenue | 4,063 |  |  | 4,000 |  |  | 8,449 |  |  | 7,816 |
Other | 7,693 |  |  | 5,182 |  |  | 14,003 |  |  | 11,471 |
Service fee revenue | 258,171 |  |  | 219,416 |  |  | 500,844 |  |  | 423,584 |
Revenue under capitation arrangements | 30,926 |  |  | 24,979 |  |  | 59,803 |  |  | 52,203 |
Total revenue | $ | 289,097 |  |  | $ | 244,395 |  |  | $ | 560,647 |  |  | $ | 475,787 |
Schedule of goodwill and other intangible assets | Activity in goodwill for the six months ended June 30, 2019 is provided below (in thousands):
Balance as of December 31, 2018 | $ | 418,093 |
Adjustments to our preliminary allocation of the purchase price of Medical Arts Radiological Group, P.C. | 722 |
Goodwill acquired through the acquisition of certain assets of Dignity Health | 1 |
Goodwill acquired through the acquisition of certain assets of West Valley Imaging Center, LLC | 2,490 |
Goodwill disposed through sale of assets | (123 | )
Goodwill acquired by Lenox Hill Radiology through the membership purchase of HVRA | 3,125 |
Goodwill acquired through the acquisition of certain assets of Kern Radiology, Inc. | 11,156 |
Goodwill acquired through the acquisition of certain assets of Zilkha Radiology, Inc. | 2,245 |
Goodwill acquired through the acquisition of certain assets of Ramic Mahwah, LLC | 231 |
Balance as of June 30, 2019 | $ | 437,940 |
Effect of derivative instruments on comprehensive income | A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive loss of the 2019 SWAPS is as follows (amounts in thousands):
For the three months ended June 30, 2019
Account |  | April 1, 2019 Balance |  | Amount of comprehensive loss recognized on derivative |  | June 30, 2019 Balance |  | Location
Accumulated Other Comprehensive Loss |  | — |  |  | (5,924 | ) |  | (5,924 | ) |  | Liabilities and Equity
A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive loss of the 2016 Caps is as follows (amounts in thousands):
For the three months ended June 30, 2019
Account |  | April 1, 2019 Balance |  | Amount of comprehensive loss recognized on derivative |  | June 30, 2019 Balance |  | Location
Accumulated Other Comprehensive Income (Loss) |  | 1,310 |  |  | (2,078 | ) |  | (768 | ) |  | Liabilities and Equity
For the six months ended June 30, 2019
Account |  | January 1, 2019 Balance |  | Amount of comprehensive loss recognized on derivative |  | June 30, 2019 Balance |  | Location
Accumulated Other Comprehensive Income (Loss) |  | 2,506 |  |  | (3,274 | ) |  | (768 | ) |  | Liabilities and Equity
Schedule of fair value of assets and liabilities | The tables below summarizes the estimated fair values of certain of our financial assets that are subject to fair value measurements, and the classification of these assets on our consolidated balance sheets, as follows (in thousands):
| As of June 30, 2019
Level 1 |  | Level 2 |  | Level 3 |  | Total
Current and long term liabilities |  |  |  |  |  |  |  |  |  |  |
2016 Caps - Interest Rate Contracts | $ | — |  |  | $ | 547 |  |  | $ | — |  |  | $ | 547 |
2019 SWAPS - Interest Rate Contracts | $ | — |  |  | $ | 8,630 |  |  | $ | — |  |  | $ | 8,630 |
| As of December 31, 2018
Level 1 |  | Level 2 |  | Level 3 |  | Total
Current assets |  |  |  |  |  |  |  |  |  |  |
2016 Caps - Interest Rate Contracts | $ | — |  |  | $ | 3,316 |  |  | $ | — |  |  | $ | 3,316 |
The table below summarizes the estimated fair value compared to our face value of our long-term debt as follows (in thousands):
| As of June 30, 2019
Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value |  | Total Face Value
First Lien Term Loans and SunTrust Term Loan | $ | — |  |  | $ | 725,299 |  |  | $ | — |  |  | $ | 725,299 |  |  | $ | 726,972 |
| As of December 31, 2018
Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Total Face Value
First Lien Term Loans and SunTrust Term Loan | $ | — |  |  | $ | 633,229 |  |  | $ | — |  |  | $ | 633,229 |  |  | $ | 646,441 |
Earnings per share | Earnings per share is based upon the weighted average number of shares of common stock and common stock equivalents outstanding, net of common stock held in treasury, as follows (in thousands except share and per share data):
| Three Months Ended June 30, |  | Six Months Ended June 30,
2019 |  | 2018 |  | 2019 |  | 2018
Net income (loss) attributable to RadNet, Inc.'s common stockholders | $ | 4,899 |  |  | $ | 5,406 |  |  | $ | 1,165 |  |  | $ | (1,932 | )
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS |  |  |  |  |  |  |
Weighted average number of common shares outstanding during the period | 49,702,869 |  |  | 47,969,003 |  |  | 49,490,234 |  |  | 47,896,216 |
Basic net income (loss) per share attributable to RadNet, Inc.'s common stockholders | $ | 0.10 |  |  | $ | 0.11 |  |  | $ | 0.02 |  |  | $ | (0.04 | )
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS |  |  |  |  |  |  |
Weighted average number of common shares outstanding during the period | 49,702,869 |  |  | 47,969,003 |  |  | 49,490,234 |  |  | 47,896,216 |
Add nonvested restricted stock subject only to service vesting | 134,260 |  |  | 147,868 |  |  | 186,779 |  |  | — |
Add additional shares issuable upon exercise of stock options and warrants | 307,411 |  |  | 409,162 |  |  | 311,023 |  |  | — |
Weighted average number of common shares used in calculating diluted net income per share | 50,144,540 |  |  | 48,526,033 |  |  | 49,988,036 |  |  | 47,896,216 |
Diluted net income (loss) per share attributable to RadNet, Inc.'s common stockholders | $ | 0.10 |  |  | $ | 0.11 |  |  | $ | 0.02 |  |  | $ | (0.04 | )
Stock options excluded from the computation of diluted per share amounts: |  |  |  |  |  |  |
Weighted average shares for which the exercise price exceeds average market price of common stock | — |  |  | — |  |  | — |  |  | — |
Investment in joint ventures | The following table is a summary of our investment in joint ventures during the six months ended June 30, 2019 (in thousands):
Balance as of December 31, 2018 | $ | 37,973 |
Equity in earnings in these joint ventures | 4,117 |
Distribution of earnings | (3,438 | )
Sale of ownership interest | (134 | )
Equity contributions in existing joint ventures | 103 |
Balance as of June 30, 2019 | $ | 38,621 |
Joint venture investment and financial information | The following table is a summary of key balance sheet data for these joint ventures as of June 30, 2019 and December 31, 2018 and income statement data for the six months ended June 30, 2019 and 2018 (in thousands):
Balance Sheet Data: | June 30, 2019 |  | December 31, 2018
Current assets | $ | 29,707 |  |  | $ | 28,317 |
Noncurrent assets | 67,608 |  |  | 45,912 |
Current liabilities | (9,038 | ) |  | (4,300 | )
Noncurrent liabilities | (22,037 | ) |  | (4,898 | )
Total net assets | $ | 66,240 |  |  | $ | 65,031 |
Book value of RadNet joint venture interests | $ | 30,634 |  |  | $ | 30,030 |
Cost in excess of book value of acquired joint venture interests | 7,987 |  |  | 7,943 |
Total value of Radnet joint venture interests | $ | 38,621 |  |  | $ | 37,973 |
Total book value of other joint venture partner interests | $ | 35,606 |  |  | $ | 35,001 |
Income statement data for the six months ended June 30, | 2019 |  | 2018
Net revenue | $ | 55,624 |  |  | $ | 91,559 |
Net income | $ | 8,723 |  |  | $ | 14,174 |

X
- Definition Joint venture investment and financial information [Table Text Block] + References No definition available. + Details
Name: | rdnt_KeyFinancialDataInJointVenturesTableTextBlock
Namespace Prefix: | rdnt_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
Name: | us-gaap_EquityMethodInvestmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=109250915&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effective portion of the gains and losses on derivative instruments designated (and non-derivative instruments) designated and qualifying in cash flow hedges and net investment hedges that was recognized in other comprehensive income (loss) during the current period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsEffectOnOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill and intangible assets, which may be broken down by segment or major class. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 + Details
Name: | us-gaap_ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of revenue by reporting categories or types of financial instruments, including derivatives but excluding dividends and interests, from trading for own account by broker dealers. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=35711157&loc=d3e42567-110969 + Details
Name: | us-gaap_ScheduleOfPrincipalTransactionsRevenueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration