XML 28 R17.htm IDEA: XBRL DOCUMENT v3.21.2
SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2021
Accounting Policies [Abstract]  
Schedule of Service Fee Revenue
Our total service revenues during the three and six months ended June 30, 2021 and 2020 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,
2021202020212020
Commercial insurance$187,354 $96,349 $369,566 $251,711 
Medicare71,407 35,082 134,877 92,587 
Medicaid9,039 4,300 17,486 10,980 
Workers' compensation/personal injury10,556 7,359 20,966 17,916 
Other patient revenue5,189 3,549 9,961 9,218 
Management fee revenue5,533 3,332 10,752 5,899 
Teleradiology and Software revenue2,621 2,200 5,047 5,970 
Other3,795 3,527 6,416 9,750 
Service fee revenue295,494 155,698 575,071 404,031 
Revenue under capitation arrangements38,424 34,868 74,166 68,099 
Total service revenue$333,918 $190,566 $649,237 $472,130 
Schedule of Goodwill and Other Intangible Assets Activity in goodwill for the six months ended June 30, 2021 is provided below (in thousands):
Balance as of December 31, 2020$472,879 
Goodwill acquired through acquisitions29,375 
Goodwill attributable to formation of Simi Valley Imaging Group LLC105 
Other Adjustments(28)
Balance as of June 30, 2021$502,331 
Schedule of Effect of Derivative Instruments on Comprehensive Income A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive loss of the 2019 Swaps which remain ineffective is as follows (amounts in thousands):
For the three months ended June 30, 2021
AccountMarch 31, 2021 BalanceAmount of comprehensive loss recognized on derivative net of taxesAmount of loss reclassified out of accumulated OCI into income (prior period effective portion), net of taxesJune 30, 2021 BalanceLocation
Accumulated Other Comprehensive Loss, net of taxes$(21,656)$— $920 $(20,736)Equity

For the six months ended June 30, 2021
AccountDecember 31, 2020 BalanceAmount of comprehensive loss recognized on derivative net of taxesAmount of loss reclassified out of accumulated OCI into income (prior period effective portion), net of taxesJune 30, 2021 BalanceLocation
Accumulated Other Comprehensive Loss, net of taxes$(22,581)$— $1,845 $(20,736)Equity

A tabular presentation of the effect of derivative instruments on our statement of operations of the 2019 Swaps which remain ineffective is as follows (amounts in thousands):
For the three months ended June 30, 2021
Ineffective interest rate swapAmount of gain recognized in income on derivative (current period ineffective portion)Location of gain recognized in Income on derivative (current period ineffective portion)Gross amount of loss reclassified from accumulated OCI into income (prior period effective portion)Location of loss reclassified from accumulated OCI into income (prior period effective portion)
Interest rate contracts$35 Other income (expense)$(1,245)Interest Expense

For the six months ended June 30, 2021
Ineffective interest rate swapAmount of gain recognized in income on derivative (current period ineffective portion)Location of gain recognized in Income on derivative (current period ineffective portion)Gross amount of loss reclassified from accumulated OCI into income (prior period effective portion)Location of loss reclassified from accumulated OCI into income (prior period effective portion)
Interest rate contracts$11,280 Other income (expense)$(2,169)Interest Expense
Schedule of Fair Value of Assets and Liabilities
The tables below summarize 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 condensed consolidated balance sheets, as follows (in thousands):
 As of June 30, 2021
Level 1Level 2Level 3Total
Current and long term liabilities    
2019 Swaps - Interest Rate Contracts$— $26,709 $— $26,709 
 As of December 31, 2020
Level 1Level 2Level 3Total
Current and long term liabilities    
2019 Swaps - Interest Rate Contracts$— $37,989 $— $37,989 
The table below summarizes the estimated fair value compared to our face value of our long-term debt as follows (in thousands):
 As of June 30, 2021
Level 1Level 2Level 3Total Fair ValueTotal Face Value
First Lien Term Loans and SunTrust Term Loan$— $772,313 $— $772,313 $774,125 
 As of December 31, 2020
Level 1Level 2Level 3Total Fair ValueTotal Face Value
First Lien Term Loans and SunTrust Term Loan$— $661,640 $— $661,640 $662,403 
Schedule of 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,
2021202020212020
Net income (loss) attributable to RadNet, Inc.'s common stockholders$2,873 $(10,594)$12,331 $(26,952)
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period52,238,709 50,672,219 52,004,653 50,483,274 
Basic net income (loss) per share attributable to RadNet, Inc.'s common stockholders$0.05 $(0.21)$0.24 $(0.53)
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period52,238,709 50,672,219 52,004,653 50,483,274 
Add nonvested restricted stock subject only to service vesting202,341 — 227,803 — 
Add additional shares issuable upon exercise of stock options and warrants692,041 — 658,105 — 
Weighted average number of common shares used in calculating diluted net income per share53,133,091 50,672,219 52,890,561 50,483,274 
Diluted net income (loss) per share attributable to RadNet, Inc.'s common stockholders$0.05 $(0.21)$0.23 $(0.53)
Stock options and non vested restricted awards excluded from the computation of diluted per share amounts as their effect would be antidilutive:
Nonvested restricted stock subject to service vesting— 319,659 — 319,659 
Shares issuable upon the exercise of stock options:— 604,257 — 604,257 
Schedule of Investment in Joint Ventures
The following table is a summary of our investment in joint ventures during the six months ended June 30, 2021 (in thousands):
Balance as of December 31, 2020$34,528 
Equity in earnings in these joint ventures5,406 
Equity contributions in existing joint ventures1,441 
Balance as of June 30, 2021$41,375 
Schedule of 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, 2021 and December 31, 2020 and income statement data for the six months ended June 30, 2021 and 2020 (in thousands):
Balance Sheet Data:June 30, 2021December 31, 2020
Current assets$39,925 $27,085 
Noncurrent assets68,699 68,686 
Current liabilities(12,165)(12,545)
Noncurrent liabilities(21,605)(21,582)
Total net assets$74,854 $61,644 
Book value of RadNet joint venture interests$34,901 $28,079 
Cost in excess of book value of acquired joint venture interests and other6,474 6,449 
Total value of RadNet joint venture interests$41,375 $34,528 
Income statement data for the six months ended June 30,20212020
Net revenue$64,636 $43,849 
Net income$10,258 $6,001