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NYC Legionnaires' Disease Outbreak: Cases and Deaths Double, as Officials Pinpoint the Cause

NYC Legionnaires' Disease Outbreak: Cases and Deaths Double, as Officials Pinpoint the Cause

Gizmodo5 days ago
An outbreak of Legionnaires' disease in NYC has doubled in reported cases and deaths since last week. Officials have struggled to identify the source of the outbreak, but it has now been confirmed.
Officials at the NYC Health Department issued the latest update on the outbreak Monday. Fifty-eight people living in Central Harlem have been diagnosed with Legionnaires' since July 25, while two people have died from it. On the positive side, officials have identified several cooling towers contaminated with the pneumonia-causing bacteria and have taken action to contain the spread. For now, however, residents in affected neighborhoods are still being advised to immediately seek medical attention if they develop flu-like symptoms.
A Deadly Outbreak of Legionnaires' Disease Is Hitting NYC
The outbreak first caught the attention of health officials in late July. By last week, there were 22 reported cases and one death. All cases, including this latest batch, have occurred across five zip codes in Central Harlem: 10027, 10030, 10035, 10037, and 10039.
Legionnaires' disease is caused by various Legionella bacteria, usually Legionella pneumophila. Naturally found in the soil and freshwater, the bacteria only truly become dangerous when they enter water systems that can aerosolize them into a fine mist. These systems include hot tubs, cooling towers, and humidifiers. Once aerosolized, people can easily breathe in these bacteria, allowing them to invade the lungs and infect certain immune cells called macrophages. The disease was named in reference to the first known outbreak of it, which occurred in 1976 at a convention of the American Legion in Pennsylvania.
Though treatable with antibiotics, Legionnaires' is often deadly once symptoms appear. It has a general fatality rate of 10% even today and a fatality rate of 25% in health care facilities, according to the Centers for Disease Control and Prevention. But these infections are not spread from person to person, and outbreaks can be effectively stopped once the source of contamination is found.
The NYC Health Department also reported Monday that it had identified 11 cooling towers that initially tested positive for the bacteria. All affected towers have also completed the remediation (steps taken to clear the bacteria out) required by the health department, it added. While the current danger may be over, however, it can take up to two weeks for symptoms of Legionnaires' to appear following exposure, and officials say they do expect more cases to be identified. So people living in the aforementioned zip codes should quickly see a doctor if they come down with a flu-like illness.
'Anyone in these zip codes with flu-like symptoms should contact a health care provider as soon as possible,' said Acting Health Commissioner Michelle Morse in a statement released by the department.
Legionnaires' disease is estimated to cause around 8,000 to 10,000 hospitalizations a year in the U.S., but its incidence has been on the rise since 2000. Part of this increase is likely due to simply improved screening and testing, but external factors like poorly maintained buildings or climate change are probably playing a part as well.
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RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA¹ and Revises Upwards 2025 Financial Guidance Ranges
RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA¹ and Revises Upwards 2025 Financial Guidance Ranges

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RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA¹ and Revises Upwards 2025 Financial Guidance Ranges

Total Company Revenue increased 8.4% to a quarterly record of $498.2 million in the second quarter of 2025 from $459.7 million in the second quarter of 2024; Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased 30.9% to a quarterly record of $20.7 million in the second quarter of 2025 from $15.8 million in the second quarter of 2024 Total Company Adjusted EBITDA(1) was a quarterly record of $81.2 million in the second quarter of 2025 as compared with $72.3 million in the second quarter of 2024, an increase of 12.3%; Digital Health reportable segment Adjusted EBITDA(1) increased 4.1% to $3.4 million in the second quarter of 2025 from $3.3 million in the second quarter of 2024 Total Company Adjusted EBITDA(1) margins increased by 57 basis points to 16.3% in the second quarter of 2025 as compared with 15.7% in the second quarter of 2024 As a percentage of total procedural volumes, advanced imaging increased to 27.5% in the second quarter of 2025 from 26.5% in the second quarter of 2024, an increase of 102 basis points Adjusting for unusual or one-time items in the quarter, Adjusted Earnings(3) was $23.8 million and Adjusted Earnings Per Share(3) was $0.31 for the second quarter of 2025; This compares with Adjusted Earnings(3) of $12.0 million and Adjusted Earnings Per Share(3) of $0.16 for the second quarter of 2024 In the second quarter of 2025, aggregate advanced imaging (MRI, CT and PET/CT) procedural volumes increased 9.0% and same-center advanced imaging procedural volumes increased 6.6% as compared with the second quarter of 2024 As of June 30, 2025, balance sheet cash was $833.2 million and Net Debt to Adjusted EBITDA(1) ratio was 0.96x RadNet revises full-year 2025 guidance levels to increase Revenue and Adjusted EBITDA(1) guidance ranges LOS ANGELES, Aug. 10, 2025 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 405 owned and operated outpatient imaging centers, today reported financial results for its second quarter of 2025. Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, 'Both the Imaging Center and Digital Health reportable operating segments demonstrated strong growth and achieved record quarterly results. In the second quarter of 2025, total Company Revenue grew 8.4% and Digital Health segment Revenue increased 30.9% from last year's same quarter. Growth was driven by strong increases in aggregate and same center procedural volumes, improved reimbursement from commercial and capitated payors, a continuing shift in procedural volumes towards advanced imaging modalities and incremental Digital Health sales and licenses of workflow software and AI solutions.' Dr. Berger continued, 'Our focus has been on driving more advanced imaging procedures (MRI, CT and PET/CT) and increasing advanced imaging capacity at the imaging centers through a variety of initiatives. Within MRI, the 9.0% aggregate and 6.6% same center growth in the second quarter as compared with last year's second quarter is partially the result of capacity created from investments made in MRI software upgrades and operating protocols which enable shorter scan times. CT programs have expanded on both coasts to offer more complex procedures, such as Cardiac CT Angiography, which is often enhanced with AI-assisted analytics. Within PET/CT, our fastest growing modality with 22.4% growth from last year's second quarter, emphasis has been on newer diagnostic and screening offerings for prostate cancer, Alzheimer's disease and dementia and new procedures with leading-edge tumor-specific radioactive tracers. The growth in advanced imaging, particularly MRI, has been furthered by the implementation of Digital Health's TechLiveTM, our remote screening technology recently cleared by the FDA. TechLiveTM is assisting with ongoing technologist staffing challenges by enabling remote control of advanced imaging equipment to expand hours of operation and by staffing exam rooms which otherwise would have been closed.' 'The growth in advanced imaging from these initiatives along with effective cost management contributed to an increase in our Adjusted EBITDA(1) margin to 16.3% during the second quarter of 2025, which compares with 15.7% in last year's second quarter, an improvement of 57 basis points. Adjusted EBITDA(1) during the second quarter of 2025 increased by 12.3% to $81.2 million from $72.3 million in last year's second quarter,' added Dr. Berger. Dr. Berger continued, 'In response to high demand and patient backlogs in many of RadNet's local markets, we continue to pursue capacity expansion through the development and construction of new imaging centers. One new facility was opened during the second quarter in East Brunswick, New Jersey, and nine additional de novo facility openings are projected for the remainder of 2025. Within Digital Health, we continue to see growth from the nationwide expansion of the AI-powered Enhanced Breast Cancer Detection program, where today almost 45% of RadNet screening mammography patients are electing to participate for a $40 out-of-pocket charge. We continue to make progress with the internal RadNet implementation of the TechLiveTM remote scanning solution, elements of the DeepHealth Operations and Diagnostic suites and the newly acquired See-Mode ultrasound AI capabilities.' 'Given the sustainable positive trends we are experiencing and the strong financial performance of the second quarter, we are revising upwards 2025 guidance levels for Revenue and Adjusted EBITDA(1) in anticipation of financial results that we believe will exceed both our original expectations and the amendments we made to the guidance ranges upon releasing first quarter 2025 results in May,' concluded Dr. Berger. Second Quarter Financial Results For the second quarter of 2025, RadNet reported Total Company Revenue of $498.2 million and Adjusted EBITDA(1) of $81.2 million. Revenue increased $38.5 million (or 8.4%) and Adjusted EBITDA(1) increased $8.9 million (or 12.3%) as compared with the second quarter of 2024. For the second quarter of 2025, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $20.7 million and Adjusted EBITDA(1) of $3.4 million. Revenue increased $4.9 million (or 30.9%) and Adjusted EBITDA(1) increased $134,000 (or 4.1%) as compared with the second quarter of 2024. Unadjusted for unusual or one-time items impacting the second quarter of 2025, Total Company Net Income for the second quarter of 2025 was $14.5 million as compared with a Total Company Net Loss of $3.0 million for the second quarter of 2024. Net Income Per Share for the second quarter of 2025 was $0.19, compared with a Net Loss per share of $(0.04) in the second quarter of 2024, based upon a weighted average number of diluted shares outstanding of 75.5 million shares in 2025 and 73.4 million shares in 2024. There were a number of unusual or one-time items impacting the second quarter including: $2.0 million of non-cash loss from interest rate swaps; $496,000 expense related to leases for de novo facilities under construction that have yet to open their operations; $123,000 of lease abandonment charge; $2.3 million of acquisition transaction costs; and $4.8 million of non-capitalized research and development expenses related to the DeepHealth Cloud OS and generative AI. Adjusting for the above items, Total Company Adjusted Earnings(3) was $23.8 million and diluted Adjusted Earnings Per Share(3) was $0.31 during the second quarter of 2025. This compares with Total Company Adjusted Earnings(3) of $12.0 million and diluted Adjusted Earnings Per Share(3) of $0.16 during the second quarter of 2024. For the second quarter of 2025, as compared with the prior year's second quarter, MRI volume increased 9.0%, CT volume increased 8.1%, PET/CT volume increased 22.4% and routine imaging (inclusive of nuclear medicine, ultrasound, mammography, x-ray and other exams) increased 3.5% over the prior year's second quarter. On a same-center basis, including only those centers which were part of RadNet for both the second quarters of 2025 and 2024, MRI volume increased 6.6%, CT volume increased 5.9%, PET/CT volume increased 16.2% and routine imaging increased 1.4% over the prior year's second quarter. Six Month Financial Results For the first six months of 2025, RadNet reported Total Company Revenue of $969.6 million and Adjusted EBITDA(1) of $127.6 million. Revenue increased $78.2 million (or 8.8%) and Adjusted EBITDA(1) decreased $3.1 million (or 2.4%) as compared with the first six months of 2024. The decrease in Adjusted EBITDA(1) was primarily the result of the previously estimated loss of $15 million of Adjusted EBITDA(1) as a result of the California wildfires and severe winter weather conditions impacting the first quarter of 2025. For the first six months of 2025, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $39.9 million and Adjusted EBITDA(1) of $7.1 million. Revenue increased $9.5 million (or 31.0%) and Adjusted EBITDA(1) increased $325,000 (or 4.8%) as compared with the first six months of 2024. Unadjusted for one-time or unusual items, Total Company Net Loss for the first six months of 2025 was $23.5 million as compared with a Total Company Net Loss of $5.8 million for the first six months of 2024. Net Loss Per Share for the six-month period of 2025 was $(0.32), compared with a Net Loss per share of $(0.08) in the six-month period of 2024, based upon a weighted average number of diluted shares outstanding of 74.1 million shares in 2025 and 71.8 million shares in 2024. 2025 Guidance Update RadNet updates guidance levels as follows: Imaging Center Segment Original Guidance Range Revised Guidance Range After Q1 Results Revised Guidance Range After Q2 Results Total Net Revenue $1,825 - $1,875 million $1,835 - $1,885 million $1,850 - $1,900 million Adjusted EBITDA(1) $265 - $273 million $268 - $276 million $271 - $279 million Capital Expenditures(a) $140 - $150 million $145 - $155 million $152 - $162 million Cash Interest Expense(b) $35 - $40 million $35 - $40 million $35 - $40 million Free Cash Flow (2) $70 - $80 million $70 - $80 million $70 - $80 million (a) Net of proceeds from the sale of equipment and New Jersey Imaging Network capital expenditures. (b) Net of payments from counterparties on interest rate swaps and interest income from our cash balance recorded in Other Health Segment OriginalGuidance Range RevisedGuidance Range AfterQ1 Results RevisedGuidance Range AfterQ2 Results Total Net Revenue (inclusive of intersegment revenue) $80 - $90 million $80 - $90 million $80 - $90 million Adjusted EBITDA(1) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI $15 - $17 million $15 - $17 million $15 - $17 million Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI $16 - $18 million $16 - $18 million $17 - $19 million Capital Expenditures $3 - $5 million $3 - $5 million $2 - $4 million Free Cash Flow(2) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI $11 - $13 million $11 - $13 million $11 - $13 million Free Cash Flow(2) After Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI $(5) - $(8) million $(5) - $(8) million $(5) - $(8) million Conference Call for Tomorrow Dr. Howard Berger, President and Chief Executive Officer, and Mark Stolper, Executive Vice President and Chief Financial Officer, will host a conference call to discuss its second quarter 2025 results on Monday, August 11th, 2025 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time). Conference Call Details: Date: Monday, August 11, 2025Time: 10:30 a.m. Eastern TimeDial In-Number: 844-826-3035International Dial-In Number: 412-317-5195 It is recommended that participants dial in approximately 5 minutes prior to the start of the 10:30 a.m. call. There will also be simultaneous and archived webcasts available at or under the 'Investors' menu section and 'News Releases' sub-menu of the website. An archived replay of the call will also be available and can be accessed by dialing 844-512-2921 from the U.S., or 412-317-6671 for international callers, and using the passcode Inc. is a leading national provider of freestanding, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 405 owned and/or operated outpatient imaging centers. RadNet's markets include Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. In addition, RadNet provides radiology information technology and artificial intelligence solutions marketed under the DeepHealth brand, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry. Together with contracted radiologists, and inclusive of full-time and per diem employees and technologists, RadNet has a total of over 11,000 team members. For more information, visit press release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are expressions of our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, and anticipated future conditions, events and trends. Forward-looking statements can generally be identified by words such as: 'anticipate,' 'intend,' 'plan,' 'goal,' 'seek,' 'believe,' 'project,' 'estimate,' 'expect,' 'strategy,' 'future,' 'likely,' 'may,' 'should,' 'will' and similar references to future periods. Forward-looking statements in this press release include, among others, statements about our anticipated business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing ability to service or refinance our current indebtedness. Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the availability and terms of capital to fund our business; our ability to service our indebtedness, make principal and interest payments as those payments become due and remain in compliance with applicable debt covenants, in addition to our ability to refinance such indebtedness on acceptable terms; changes in general economic conditions nationally and regionally in the markets in which we operate; the availability and terms of capital to fund the expansion of our business and improvements to our existing facilities; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; our ability to acquire, develop, implement and monetize technology, digital health initiatives, artificial intelligence algorithms and applications; volatility in interest and exchange rates, or credit markets; the adequacy of our cash flow and earnings to fund our current and future operations; changes in service mix, revenue mix and procedure volumes; delays in receiving payments for services provided; increased bankruptcies among our partner physicians or joint venture partners; the impact of the political environment and related developments on the current healthcare marketplace and on our business, including with respect to the future of the Affordable Care Act; the extent to which the ongoing implementation of healthcare reform, or changes in or new legislation, regulations or guidance, enforcement thereof by federal and state regulators or related litigation result in a reduction in coverage or reimbursement rates for our services, or other material impacts to our business; closures or slowdowns and changes in labor costs and labor difficulties, including stoppages affecting either our operations or our suppliers' abilities to deliver supplies needed in our facilities; the occurrence of hostilities, political instability or catastrophic events; the emergence or reemergence of and effects related to future pandemics, epidemics and infectious diseases; and noncompliance by us with any privacy or security laws or any cybersecurity incident or other security breach by us or a third party involving the misappropriation, loss or other unauthorized use or disclosure of confidential information. Any forward-looking statement contained in this current report is based on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of changed circumstances, new information, future developments or otherwise, except as required by applicable release contains certain financial information not reported in accordance with GAAP. The Company uses both GAAP and non-GAAP metrics to measure its financial results. The Company believes that, in addition to GAAP metrics, these non-GAAP metrics assist the Company in measuring its cash-based performance. The Company believes this information is useful to investors and other interested parties because it removes unusual and nonrecurring charges that occur in the affected period and provides a basis for measuring the Company's financial condition against other quarters. Such information should not be considered as a substitute for any measures calculated in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliation of this information to the most comparable GAAP measures is included in this release in the tables which follow. RADNET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) June 30, 2025 December 31, 2024 (unaudited) ASSETS CURRENT ASSETS Cash and Cash equivalents $ 833,152 $ 740,020 Accounts receivable 199,991 185,821 Due from affiliates 12,959 41,869 Prepaid expenses and other current assets 48,277 51,542 Total current assets 1,094,379 1,019,252 PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS Property and equipment, net 741,382 694,791 Operating lease right-of-use assets 666,054 639,740 Total property, plant, equipment and right-of-use assets 1,407,436 1,334,531 OTHER ASSETS Goodwill 751,514 710,663 Other intangible assets 91,078 81,351 Deferred financing costs 1,974 2,265 Investment in joint ventures 125,804 104,057 Deposits and other 42,781 34,571 Total Assets $ 3,514,966 $ 3,286,690 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable, accrued expenses and other $ 406,689 $ 351,464 Due to affiliates 51,067 43,650 Deferred revenue 3,433 3,288 Current operating lease liability 59,537 56,618 Current portion of notes payable 25,484 24,692 Total current liabilities 546,210 479,712 LONG-TERM LIABILITIES Long-term operating lease liability 678,783 655,979 Notes payable, net of current portion 1,077,251 991,574 Deferred tax liability, net 21,441 22,230 Other non-current liabilities 12,020 3,785 Total liabilities 2,335,705 2,153,280 EQUITY RadNet, Inc. stockholders' equity: Common stock - $0.0001 value, 200,000,000 shares authorized; 75,067,102 and 74,036,993 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 8 7 Additional paid-in-capital 1,025,936 988,147 Accumulated other comprehensive loss 6,627 (9,061 ) Accumulated deficit (100,257 ) (76,785 ) Total RadNet, Inc.'s Stockholders' equity: 932,314 902,308 Noncontrolling interests 246,947 231,102 Total Equity 1,179,261 1,133,410 Total liabilities and equity $ 3,514,966 $ 3,286,690 RADNET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 REVENUE Service fee revenue $ 468,063 $ 422,745 $ 907,412 $ 819,934 Revenue under capitation arrangements 30,167 36,969 62,217 71,487 Total service revenue 498,230 459,714 969,629 891,421 OPERATING EXPENSES Cost of operations, excluding depreciation and amortization 429,085 389,724 882,565 777,313 Lease abandonment charges 123 - 5,511 - Depreciation and amortization 35,993 34,475 71,476 66,843 Loss (gain) on sale and disposal of equipment and other 1,724 401 2,126 587 Severance costs 426 268 1,173 493 Total operating expenses 467,351 424,868 962,851 845,236 INCOME (LOSS) FROM OPERATIONS 30,879 34,846 6,778 46,185 OTHER INCOME AND EXPENSES Interest expense 17,189 26,082 34,428 42,349 Equity in earnings of joint ventures (4,356 ) (3,389 ) (6,955 ) (7,713 ) Non-cash change in fair value of interest rate hedge 1,956 1,890 4,062 674 Debt restructuring and extinguishment expenses - 8,762 - 8,762 Other (income) expenses (7,764 ) (7,900 ) (15,476 ) (10,834 ) Total other (income) expenses 7,025 25,445 16,059 33,238 INCOME (LOSS) BEFORE INCOME TAXES 23,854 9,401 (9,281 ) 12,947 Provision for income taxes (820 ) (2,456 ) 2,578 (592 ) NET INCOME (LOSS) 23,034 6,945 (6,703 ) 12,355 Net income (loss) attributable to noncontrolling interests 8,580 9,927 16,769 18,116 NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS $ 14,454 $ (2,982 ) $ (23,472 ) $ (5,761 ) BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS $ 0.19 $ (0.04 ) $ (0.32 ) $ (0.08 ) DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS $ 0.19 $ (0.04 ) $ (0.32 ) $ (0.08 ) WEIGHTED AVERAGE SHARES OUTSTANDING Basic 74,352,498 73,419,124 74,070,438 71,795,080 Diluted 75,531,743 73,419,124 74,070,438 71,795,080 RADNET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS (IN THOUSANDS) (unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (6,703 ) $ 12,355 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 71,476 66,843 Noncash operating lease expense 29,356 30,006 Equity in earnings of joint ventures, net of dividends (1,267 ) (6,713 ) Amortization of deferred financing costs and loan discount 1,471 1,541 Loss on sale and disposal of equipment 2,126 587 Loss on extinguishment of debt - 2,080 Lease abandonment charges 5,511 - Amortization of cash flow hedge 2,712 7,256 Non-cash change in fair value of interest rate swap 4,062 674 Stock-based compensation 37,235 16,645 Change in fair value of contingent consideration - 1,974 Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: Accounts receivable (14,159 ) (31,581 ) Other current assets 22,381 5,242 Other assets (2,544 ) (5,553 ) Deferred taxes (3,511 ) 1,791 Operating leases (34,726 ) (27,707 ) Deferred revenue 145 (185 ) Accounts payable, accrued expenses and other 48,264 57,835 Net cash provided by operating activities 161,829 133,090 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of imaging facilities and other acquisitions, net of cash acquired (31,985 ) (32,771 ) Purchase of property and equipment and other (101,776 ) (104,095 ) Proceeds from sale of equipment 40 9 Equity contributions in existing and purchase of interest in joint ventures (20,480 ) (1,421 ) Net cash used in investing activities (154,201 ) (138,278 ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on notes and leases payable (3,461 ) (2,624 ) Payments on Term Loan Debt (10,252 ) (682,438 ) Proceeds from issuance of new debt, net of issuing costs 99,001 863,869 Purchase of noncontrolling interests by third party 2,389 4,169 Payments on contingent consideration and holdbacks - (3,614 ) Distributions paid to noncontrolling interests (3,313 ) (2,423 ) Proceeds from sale of economic interests in majority owned subsidiary, net of taxes - 8,713 Proceeds from issuance of common stock - 218,385 Proceeds from issuance of common stock upon exercise of options 554 367 Net cash provided by financing activities 84,918 404,404 EFFECT OF EXCHANGE RATE CHANGES ON CASH 586 (107 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 93,132 399,109 CASH AND CASH EQUIVALENTS, beginning of period 740,020 342,570 CASH AND CASH EQUIVALENTS, end of period 833,152 741,679 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the period for interest $ 35,018 $ 34,203 Cash paid during the period for income taxes $ 2,428 $ 705 RADNET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA (IN THOUSANDS) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) attributable to Radnet, Inc. common stockholders $ 14,454 $ (2,982 ) $ (23,472 ) $ (5,761 ) Income taxes 820 2,456 (2,578 ) 592 Interest expense 17,189 26,082 34,428 42,349 Severance costs 426 268 1,173 493 Depreciation and amortization 35,993 34,475 71,476 66,843 Non-cash employee stock-based compensation 8,741 4,749 37,235 16,646 Loss (gain) on sale and disposal of equipment and other 1,724 401 2,126 587 Non-cash change in fair value of interest rate hedge 1,956 1,890 4,062 674 Other expenses (income) (7,764 ) (7,900 ) (15,476 ) (10,834 ) Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI 4,787 3,317 8,349 6,632 Lease abandonment charges 123 - 5,511 - Loss (gain) on extinguishment of debt and related expenses - 8,762 - 8,762 Non-cash change to contingent consideration - - - 1,974 Non-operational rent expenses 496 809 1,838 1,832 Acquisition transaction costs 2,301 - 2,973 - Adjusted EBITDA - Radnet, Inc. $ 81,246 $ 72,327 $ 127,645 $ 130,789 NOTE Adjusted EBITDA - Imaging Center Segment 77,843 69,058 120,531 124,000 Adjusted EBITDA - Digital Health Segment 3,403 3,269 7,114 6,789 PAYMENTS BY PAYOR CLASS Second Quarter 2025 Commercial Insurance 58.3% Medicare 23.3% Capitation 6.1% Medicaid 2.5% Workers Compensation/Personal Injury 2.1% Other* 7.6% Total 100.0% * Includes Management Fees, Digital Health Revenue and Heart Lung Health Revenue. RADNET PAYMENTS BY MODALITY Second Quarter Full Year Full Year Full Year 2025 2024 2023 2022 MRI 37.3 % 37.1 % 36.8 % 36.8 % CT 15.7 % 15.9 % 16.8 % 17.5 % PET/CT 8.7 % 7.2 % 6.4 % 5.8 % X-ray 5.6 % 6.0 % 6.5 % 6.7 % Ultrasound 13.6 % 13.6 % 12.9 % 12.6 % Mammography 15.8 % 16.4 % 16.0 % 15.3 % Nuclear Medicine 0.9 % 1.0 % 0.8 % 0.9 % Other 2.5 % 2.7 % 3.9 % 4.5 % 100.0 % 100.0 % 100.0 % 100.0 % PROCEDURES BY MODALITY* Second Quarter Second Quarter 2025 2024 MRI 490,299 449,781 CT 291,820 269,939 PET/CT 22,155 18,107 Nuclear Medicine 9,377 9,610 Ultrasound 701,917 664,043 Mammography 508,000 483,510 X-ray and Other 900,095 890,814 Total 2,923,663 2,785,804 * Volumes include wholy owned and joint venture centers. RADNET, INC. AND SUBSIDIARIES SCHEDULE OF ADJUSTED EARNINGS AND EARNINGS PER SHARE (3) (IN THOUSANDS EXCEPT SHARE DATA) (unaudited) Three Months Ended June 30, 2025 2024 NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS $ 14,454 $ (2,982 ) Add/Subtract non-cash change in fair value of interest rate swaps (i) 1,956 1,890 Non-cash interest expense from extraordinary interest rate swap OCI amortization - 5,559 Non-operational rent expenses (iii) 496 809 Contingent consideration - - Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI 4,787 3,317 Lease abandonment charge 123 - Acquisition transaction costs 2,301 - Debt restructing and extinguishment expenses (iv) - 8,762 Total adjustments - loss (gain) 9,663 20,337 Subtract tax impact of Adjustments (ii) (332 ) (5,308 ) Tax effected impact of adjustments 9,331 15,029 TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS 9,331 15,029 ADJUSTED NET INCOME ATTRIBUTABLE TO RADNET, INC. 23,785 12,047 COMMON STOCKHOLDERS WEIGHTED AVERAGE SHARES OUTSTANDING Diluted 75,531,743 74,944,366 ADJUSTED DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS $ 0.31 $ 0.16 (i) Impact from the change in fair value of the swaps during the quarter. Excludes the recurring amortization of the accumulation of the changes in fair value out of Other Comprehensive Income that existed prior to the hedges becoming ineffective. (ii) Tax effected using 3.44% and 26.10% blended federal and state effective tax rate for the second quarter of 2025 and 2024, respectively. (iii) Represents rent expense associated with de novo sites under construction prior to them becoming operational. (iv) Extraordinary expense related to the Company's successful April 2024 debt refinancing transaction. Footnotes (1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and adjusted for losses or gains on the sale of equipment, other income or loss, debt extinguishments and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or extraordinary and one-time events taken place during the period. Adjusted EBITDA is reconciled to its nearest comparable GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance, and is a measure of leverage capacity and ability to service debt. Adjusted EBITDA should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies. (2) As noted above, the Company defines Free Cash Flow as Adjusted EBITDA less total Capital Expenditures (whether completed with cash or financed) and Cash Interest Expense. Free Cash Flow is a non-GAAP financial measure. The Company uses Free Cash Flow because the Company believes it provides useful information for investors and management because it measures our capacity to generate cash from our operating activities. Free Cash Flow does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of Free Cash Flow may differ from definitions used by other companies. Free Cash Flow should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies. (3) The Company defines Adjusted Earnings (Loss) Per Share as net income or loss attributable to RadNet, Inc. common stockholders and excludes losses or gains on the disposal of equipment, loss on debt extinguishments, bargain purchase gains, severance costs, loss on impairment, loss or gain on swap valuation, gain on extinguishment of debt, unusual or non-recurring entries that impact the Company's tax provision and any other non-recurring or unusual transactions recorded during the period. Adjusted Earnings (Loss) Per Share is reconciled to its nearest comparable GAAP financial measure. Adjusted Earnings (Loss) Per Share is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance. Adjusted Earnings Per Share should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted Earnings Per Share should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted Earnings Per Share is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other in to access your portfolio

CDC gunman had become fixated on his distrust for COVID-19 vaccines, authorities say
CDC gunman had become fixated on his distrust for COVID-19 vaccines, authorities say

CBS News

time2 hours ago

  • CBS News

CDC gunman had become fixated on his distrust for COVID-19 vaccines, authorities say

A Georgia man who had blamed the COVID-19 vaccine for making him depressed and suicidal has been identified as the shooter who opened fire late Friday on the U.S. Centers for Disease Control and Prevention headquarters, killing a police officer. The 30-year-old suspect, who died during the incident, had also tried to get into the CDC's headquarters in Atlanta but was stopped by guards before driving to a pharmacy across the street and opening fire, a law enforcement official told The Associated Press on Saturday. The man, identified as Patrick Joseph White, was armed with five guns, including at least one long gun, the official said, speaking on condition of anonymity because they were not authorized to publicly discuss the investigation. A union representing workers at the CDC said the incident was not random and "compounds months of mistreatment, neglect, and vilification that CDC staff have endured." It demanded federal officials condemn vaccine misinformation, saying it was putting scientists at risk. Here's what to know about the shooting and the continuing investigation. Police say White opened fire outside the CDC headquarters in Atlanta on Friday, leaving bullet marks in windows across the sprawling campus. At least four CDC buildings were hit, Director Susan Monarez said on X. DeKalb County Police Officer David Rose was mortally wounded while responding. Rose, 33, a Marine veteran who served in Afghanistan, had graduated from the police academy in March. White was found on the second floor of a building across the street from the CDC campus and died at the scene, Atlanta Police Chief Darin Schierbaum said. He added that "we do not know at this time whether that was from officers or if it was self-inflicted." The Georgia Bureau of Investigation said the crime scene was "complex" and the investigation would take "an extended period of time." Thousands of people who work on critical disease research are employed on the CDC campus in Atlanta. The American Federation of Government Employees, Local 2883, said some staff were huddled in various buildings until late at night, including more than 90 young children who were locked down inside the CDC's Clifton School. The union said CDC staff should not be required to immediately return to work after experiencing such a traumatic event. In a statement released Saturday, it said windows and buildings should first be fixed and made "completely secure." "Staff should not be required to work next to bullet holes," the union said. "Forcing a return under these conditions risks re-traumatizing staff by exposing them to the reminders of the horrific shooting they endured." The union also called for "perimeter security on all campuses" until the investigation is fully completed and shared with staff. A virtual meeting with CDC employees took place Saturday to try to reassure staffers after the shooting, CBS News confirmed. One CDC employee, who was not authorized to speak publicly and was on the call, talked to CBS News under the condition of anonymity. The employee said leadership at the agency told staff they believed that their office was the target of Friday's gunfire. Employees will work remotely on Monday as campus security is assessed, the person said. The union has called on the CDC and the leadership of the Department of Health and Human Services must provide a "clear and unequivocal stance in condemning vaccine disinformation." Such a public statement by federal officials is needed to help prevent violence against scientists, the union said in a news release. "Their leadership is critical in reinforcing public trust and ensuring that accurate, science-based information prevails," the union said. Fired But Fighting, a group of laid-off CDC employees, has said HHS Secretary Robert F. Kennedy Jr. is directly responsible for the villainization of CDC's workforce through "his continuous lies about science and vaccine safety, which have fueled a climate of hostility and mistrust." Kennedy reached out to staff on Saturday, saying "no one should face violence while working to protect the health of others." White's father, who contacted police and identified his son as the possible shooter, said White had been upset over the death of his dog and also had become fixated on the COVID-19 vaccine, according to the law enforcement official. A neighbor of White told The Atlanta Journal-Constitution that White "seemed like a good guy" but spoke with her multiple times about his distrust of COVID-19 vaccines in unrelated conversations. "He was very unsettled, and he very deeply believed that vaccines hurt him and were hurting other people," Nancy Hoalst, told the Atlanta newspaper. "He emphatically believed that." But Hoalst said she never believed White would be violent: "I had no idea he thought he would take it out on the CDC." Several of White's neighbors told CBS News that he was outspokenly against vaccines, and a law enforcement source said authorities were looking into the possibility that the gunman believed the COVID-19 vaccines made him sick.

Warnings spread on TikTok about ‘Feel Free' drinks that contain kratom, which has opioid-like effects
Warnings spread on TikTok about ‘Feel Free' drinks that contain kratom, which has opioid-like effects

Yahoo

time3 hours ago

  • Yahoo

Warnings spread on TikTok about ‘Feel Free' drinks that contain kratom, which has opioid-like effects

Social media users and experts alike are warning people about Feel Free tonics and other products containing the opioid-like substance kratom, an NBC News report reveals. Products containing kratom, which comes from a plant native to Southeast Asia, are popping up in gas stations, corner stores and vape shops across the country, the Food and Drug Administration warns. The substance is often used to 'self-treat conditions such as pain, coughing, diarrhea, anxiety and depression, opioid use disorder, and opioid withdrawal,' according to the FDA. Dr. Robert Levy, an addiction medicine expert from the University of Minnesota Medical School, told NBC News he's concerned about kratom and has treated patients who are addicted to it 'many times.' TikToker Misha Brown posted a video that went viral last month, recounting how a kid approached him at a gas station and asked him to purchase a Feel Free tonic, a drink that contains kratom. When he refused, Brown said the child tried — but failed — to grab his wallet. The gas station cashier then told Brown she often sees the same customers buying the drink multiple times a day. Brown said the cashier told him, 'It's so addictive, and people lose their minds.' Brown told NBC News that people started commenting on his viral video, sharing their own 'devastating experiences' with kratom products like Feel Free. John, a TikToker who has posted about Feel Free, said he discovered the tonic when he was eight years sober after struggling with heroin and meth addictions. NBC News identified John by his first name to protect his privacy. John told the outlet he became addicted and started going through entire cases of Feel Free within a day. He was then hospitalized for withdrawal symptoms in February after trying to quit Feel Free. The Independent has contacted Feel Free for comment. Feel Free tonics come in two-ounce bottles. The label says a serving size is one ounce and that users should not consume more than two ounces in 24 hours, NBC News reports. The label also warns that the product is habit-forming and recommends that those with a history of substance abuse should consider not using the product. 'As an addiction medicine doctor, I would never suggest that somebody consume that [Feel Free] that's in recovery,' Levy told NBC News. Botanic Tonics, the company that makes Feel Free, told NBC News that 'false and misleading claims are being made' about their products. 'Botanic Tonics has sold over 129.7 million servings of feel free to date. We have received fewer than 1,000 consumer adverse event complaints total across all categories, with zero complaints involving severe addiction,' the company told the outlet. The company noted this indicates 'an exceptionally low complaint rate that contradicts sensationalized social media anecdotes being reported as representative of our customer experience.' Botanic Tonics also paid $8.75 million in 2023 to settle a class action lawsuit claiming the company failed to warn users about the dangers of kratom. The company did not admit wrongdoing by settling the lawsuit. Late last month, the FDA announced it is recommending scheduling action to control products containing 7-OH, a concentrated byproduct of the kratom plant. The agency says 7-OH has the 'potential for abuse because of its ability to bind to opioid receptors.' This recommendation does not apply to natural kratom leaf products, the agency noted. In response to the announcement, Feel Free said its 'Feel Free Classic' tonic only contains natural leaf kratom, which means the FDA's recommendation will not impact the product. Kratom may even have life-threatening effects. 'In rare cases, deaths have been associated with kratom use, as confirmed by a medical examiner or toxicology reports,' the FDA said. 'However, in these cases, kratom was usually used in combination with other drugs, and the contribution of kratom in the deaths is unclear.' A Washington family claims kratom killed their son, 37-year-old Jordan McKibban. He died in 2022 after he mixed kratom with his lemonade, his mother Pam Mauldin told the New York Post. McKibban's autopsy report revealed his death was caused by mitragynine, which is found in kratom. 'I've lost my son. I've lost my grandchildren that I could have had, I've lost watching him walk down that aisle, watching him have a life that I get to watch with my other kids. I've lost enjoying these years with him,' she told the New York Post.

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