RadNet, Inc. 10-K

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Principal Trading Market Our common stock is quoted on the NASDAQ Global Market under the symbol “RDNT”. Dividends We have never declared or paid cash dividends on our capital stock and we do not expect to pay any dividends in the foreseeable future. We currently intend to retain future earnings, if any, to finance the growth and development of our business. Our current credit facilities place restrictions on our ability to issue dividends. See discussion under “Liquidity and Capital Resources” regarding our current credit facilities. Payment of future dividends, if any, will be at the discretion of our board of directors and will depend on our financial condition, results of operations, capital requirements and such other factors as the board of directors deems relevant. Equity Compensation Plans Information The information required by this item will be contained in our definitive proxy statement, to be filed with the SEC in connection with our 2021 annual meeting of stockholders, which is expected to be filed not later than 120 days after the end of our fiscal year ended December 31, 2020, and is incorporated in this report by reference. Stock Performance Graph The following graph compares the yearly percentage change in cumulative total stockholder return of our common stock during the period from 2015 to 2020 with (i) the cumulative total return of the S&P 500 index and (ii) the cumulative total return of the S&P 500 – Healthcare Sector index. The comparison assumes $100 was invested on December 31, 2015 in our common stock and in each of the foregoing indices and the reinvestment of dividends through December 31, 2020. The stock price performance on the following graph is not necessarily indicative of future stock price performance. This graph shall not be deemed incorporated by reference by any general statement incorporating by reference this Form 10-K into any filing under the Securities Act or under the Exchange Act, except to the extent that RadNet specifically incorporates this information by reference, and shall not otherwise be deemed filed under the Securities Act or the Exchange Act. 32 ANNUAL RETURN PERCENTAGE Years Ending Company / Index 12/30/16 12/29/17 12/31/18 12/31/19 12/31/20 RadNet, Inc. 4.37 56.59 0.69 99.61 (3.6) S&P 500 Index 11.96 21.83 (4.38) 31.49 18.4 S&P Health Care Sector (2.69) 22.08 6.47 20.82 13.45 Base INDEXED RETURNS Years Ending Period Company / Index 12/31/15 12/30/16 12/29/17 12/31/18 12/31/19 12/31/20 RadNet, Inc. 100 104.37 163.43 164.56 328.48 316.67 S&P 500 Index 100 111.96 136.4 130.42 171.49 203.04 S&P Health Care Sector 100 97.31 118.79 126.47 152.81 173.36 Recent Sales of Unregistered Securities None 33 Item 6. Selected Consolidated Financial Data The following table sets forth our selected historical consolidated financial data. The selected consolidated statements of operations data set forth below for the years ended December 31, 2020, 2019 and 2018, and the consolidated balance sheet data as of December 31, 2020 and 2019, are derived from our audited consolidated financial statements and notes thereto included in this annual report on Form 10-K. The selected historical consolidated statements of operations data set forth below for the years ended December 31, 2017 and 2016, and the consolidated balance sheet data set forth below as of December 31, 2018, 2017 and 2016, are derived from our audited consolidated financial statements not included herein. This data should be read in conjunction with and is qualified in its entirety by reference to the audited consolidated financial statements and the related notes included elsewhere in this annual report and Item 7 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The financial data set forth below and discussed in this annual report are derived from the consolidated financial statements of RadNet, its subsidiaries and certain affiliates. As a result of the contractual and operational relationship among Dr. Berger, Dr. Crues and the Company, we are considered to have a controlling financial interest in the Group pursuant to applicable accounting guidance. Due to the deemed controlling financial interest, we are required to include the Group as consolidated entities in our consolidated financial statements. This means, for example, that revenue generated by the Group from the provision of professional medical services to our patients, as well as the Group's costs of providing those services, are included as net revenue and cost of operations in our consolidated statement of operations, whereas the management fee that the Group pays to us under our management agreement with the Group is eliminated as a result of the consolidation of our results. Also, because the Group is consolidated in our financial statements, any borrowings or advances we have received from or made to the Group has been eliminated in our consolidated balance sheet. If the Group was not treated as consolidated entities in our consolidated financial statements, the presentation of certain items in our income statement, such as net service fee revenue and costs and expenses, would change but our net income would not, because in operation and historically, the annual revenue of the Group from all sources closely approximates its expenses, including Dr. Berger’s and Dr. Crues’ compensation, fees payable to us and amounts payable to third parties. 34 Years Ended December 31, 2020 2019 2018 2017 2016 (in thousands, except per share data) Statement of Operations Data: Net revenue and provider relief funds $ 1,098,104 $ 1,154,179 $ 975,146 $ 922,186 $ 884,535 Operating expenses: Cost of operations, excluding depreciation and amortization 965,902 999,692 867,547 802,377 775,801 Depreciation and amortization 86,795 80,607 72,899 66,796 66,610 Loss (gain) on sale and disposal of equipment, net 1,200 2,383 (2,054) 1,142 767 Gain on sale of imaging center and medical practice — — — (3,416) — Gain on re-measurement of pre-existing interest — (768) (39,539) — — Gain on return of common stock — — — — (5,032) Meaningful use incentive — — — (250) (2,808) Gain on extinguishment of debt (4,047) — — — — Loss on impairment 4,170 — 3,937 — — Net income attributable to RadNet common stockholders (14,840) 14,756 32,243 53 7,230 Basic income per share attributable to RadNet common stockholders (0.29) 0.30 0.67 — 0.18 Diluted income per share attributable to RadNet common stockholders (0.29) 0.29 0.66 — 0.17 Balance Sheet Data: Cash and cash equivalents $ 102,018 $ 40,165 $ 10,389 $ 51,322 $ 20,638 Total assets 1,786,657 1,646,986 1,109,330 868,979 849,476 Total long-term liabilities 1,130,240 1,086,419 669,560 607,448 642,082 Total liabilities 1,528,354 1,413,847 909,077 799,054 797,423 Working capital (exclusive of current operating lease liability) (61,896) (25,048) (30,827) 43,745 62,573 Equity 258,303 233,139 200,253 69,925 52,053 35