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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Impact of recent accounting standards change
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS                  
In thousands except per share data   As previously reported     Impact of adoption     As currently reported  
Provision for income taxes   $ (2,531 )   $ 320     $ (2,211 )
Net income     3,940       320       4,260  
Net income attributable to Radnet Inc. common shareholders     3,549       320       3,869  
Basic and diluted income per share     0.08       0.00       0.08  

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                        
In thousands     As previously reported       Impact of adoption       As currently reported  
Net income   $ 3,940     $ 320     $ 4,260  
Deferred taxes     1,746       (320 )     1,426  
Others     (5,774 )     –       (5,774 )
Net decrease in cash and cash equivalents   $ (88 )   $ –     $ (88 )

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                        
In thousands     As previously reported       Impact of adoption       As currently reported  
Net income   $ 3,940     $ 320     $ 4,260  
Foreign currency translation adjustments     (166 )     –       (166 )
Comprehensive income     3,774       320       4,094  
Less comprehensive income attributable to noncontrolling interests     391       –       391  
                         
Comprehensive income attributable to Radnet Inc. common shareholders   $ 3,383     $ 320     $ 3,703  
Service Fee Revenue

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2017   2016   2017   2016 
                 
Commercial Insurance  $140,956   $135,299   $424,639   $401,780 
Medicare   47,941    48,740    143,234    140,089 
Medicaid   6,233    7,554    19,491    21,461 
Workers' Compensation/Personal Injury   8,626    9,449    26,550    27,935 
Other   7,557    7,388    24,205    21,766 
Service fee revenue, net of contractual allowances and discounts   211,313    208,430    638,119    613,031 
Provision for bad debts   (11,687)   (11,253)   (35,187)   (33,883)
Net service fee revenue   199,626    197,177    602,932    579,148 
Revenue under capitation arrangements   27,981    27,466    83,702    80,448 
Total net revenue  $227,607   $224,643   $686,634   $659,596 

 

(1) Other consists of revenue from teleradiology services, consulting fees and software revenue.
Schedule of goodwill and other intangible assets
Balance as of December 31, 2016   $ 239,553  
 Goodwill acquired through the acquisition of Resolution Imaging Medical Corp     1,901  
 Goodwill acquired through the acquisition of MRI Centers Inc.     401  
 Goodwill disposed through the transfer to Santa Monica Imaging Group JV     (1,901 )
 Goodwill acquired through the acquisition of D&D Diagnostics, Inc.     1,519  
 Goodwill acquired through the acquisition of Stockton MRI, Inc.     3,101  
 Goodwill disposed through the sale of Hematology Oncology     (110 )
 Goodwill acquired through the acquisition of DIA, Inc.     9,185  
 Goodwill disposed through the sale of Breastlink Medical Group, Inc.     (509 )
Balance as of September 30, 2017   $ 253,140  
Fair value of derivatives
Derivatives   Balance Sheet Location   Fair Value – Liabilities  
Interest rate contracts   Current and other non-current liabilities   $ (1,975 )
Effect of derivative instruments on comprehensive income
For the three months ended September 30, 2017
Effective Interest Rate Cap     Amount of Gain Recognized on Derivative     Location of Gain Recognized in Income on Derivative
Interest rate contracts   $ 2     Other Comprehensive Loss

 

 

For the nine months ended September 30, 2017
Effective Interest Rate Cap     Amount of Loss Recognized on Derivative     Location of Loss Recognized in Income on Derivative
Interest rate contracts   $ (1,720 )   Other Comprehensive Loss
Schedule of fair value of assets and liabilities

The table below summarizes the estimated fair values of certain of our financial instruments that are subject to fair value measurements, and the classification of these assets on our consolidated balance sheets, as follows (in thousands):

 

   As of September 30, 2017 
   Level 1   Level 2   Level 3   Total 
Current and other non-current liabilities                    
Interest Rate Contracts  $–   $(1,975)  $–   $(1,975)

 

   As of December 31, 2016 
   Level 1   Level 2   Level 3   Total 
Current assets                    
Interest Rate Contracts  $–   $818   $–   $818 

 

The table below summarizes the estimated fair value and carrying amount of our long-term debt as follows (in thousands):

 

   As of September 30, 2017 
   Level 1   Level 2   Level 3   Total Fair Value   Total Face Value 
First Lien Term Loans  $–   $633,256   $–   $633,256   $628,542 

 

   As of December 31, 2016 
   Level 1   Level 2   Level 3  

Total Fair

Value

   Total Face Value 
First Lien Term Loans  $–   $483,129   $–   $483,129   $478,938 
Second Lien Term Loans  $–   $167,580   $–   $167,580   $168,000 

 
Earnings per share
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2017   2016   2017   2016 
                 
Net income attributable to RadNet, Inc.'s common stockholders  $3,226   $1,644   $7,326   $3,869 
                     
BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS                    
Weighted average number of common shares outstanding during the period   46,953,705    45,868,629    46,760,583    46,337,993 
Basic net income per share attributable to RadNet, Inc.'s common stockholders  $0.07   $0.04   $0.16   $0.08 
                     
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS                    
Weighted average number of common shares outstanding during the period   46,953,705    45,868,629    46,760,583    46,337,993 
Add nonvested restricted stock subject only to service vesting   315,830    260,389    237,595    190,428 
Add additional shares issuable upon exercise of stock options and warrants   308,216    204,952    241,183    220,415 
Weighted average number of common shares used in calculating diluted net income per share   47,577,750    46,333,970    47,239,360    46,748,836 
Diluted net income per share attributable to RadNet, Inc.'s common stockholders  $0.07   $0.04   $0.16   $0.08 
                     
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   –    165,000    225,050    272,084 
Investment in joint ventures
Balance as of December 31, 2016   $ 43,509  
Equity in earnings in these joint ventures     8,372  
Distribution of earnings     (6,785 )
Equity contributions in existing joint ventures     4,062  
Balance as of September 30, 2017   $ 49,158  
Joint venture investment and financial information
Balance Sheet Data:  September 30, 2017   December 31, 2016 
Current assets  $40,898   $40,093 
Noncurrent assets   107,657    100,146 
Current liabilities   (17,383)   (14,077)
Noncurrent liabilities   (43,115)   (44,405)
Total net assets  $88,057   $81,757 
           
Book value of RadNet joint venture interests  $41,879   $38,538 
Cost in excess of book value of acquired joint venture interests   7,279    4,970 
Total value of Radnet joint venture interests  $49,158   $43,509 
           
Total book value of other joint venture partner interests  $46,178   $43,219 
           
Income statement data for the nine months ended September 30,  2017   2016 
Net revenue  $133,108   $119,920 
Net income  $16,034   $18,001