Delaware
|
13-3326724
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
1510
Cotner Avenue
|
|
Los
Angeles, California
|
90025
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title of Each Class
|
Name of each exchange on which
registered
|
Common
Stock, $.0001 par value
|
NASDAQ
Global Market
|
Large
Accelerated
Filer
¨
|
Accelerated
Filer
x
|
||
Non-Accelerated
Filer
¨
(Do
not
check
if
a
smaller
reporting
company)
|
Smaller
Reporting
Company
¨
|
FORM 10-K ITEM
|
PAGE
|
|
PART
I.
|
||
Item 1.
|
Business
|
1
|
Item 1A.
|
Risk
Factors
|
19
|
Item 1B.
|
Unresolved
Staff Comments
|
28
|
Item
2.
|
Properties
|
29
|
Item
3.
|
Legal
Proceedings
|
29
|
Item
4.
|
(Removed
and Reserved).
|
29
|
PART
II.
|
||
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
30
|
Item
6.
|
Selected
Consolidated Financial Data
|
33
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
34
|
Item 7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
49
|
Item
8.
|
Financial
Statements and Supplementary Data
|
49
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
76
|
Item
9A.
|
Controls
and Procedures
|
76
|
Item
9B.
|
Other
Information
|
78
|
PART
III.
|
||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
80
|
Item
11.
|
Executive
Compensation
|
81
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
81
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
83
|
Item
14.
|
Principal
Accountant Fees and Services
|
83
|
PART
IV.
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
84
|
Item
1.
|
Business
|
|
·
|
MRI
spectroscopy, which can differentiate malignant from benign
lesions;
|
|
·
|
MRI
angiography, which can produce three-dimensional images of body parts and
assess the status of blood vessels;
|
|
·
|
enhancements
in teleradiology systems, which permit the digital transmission of
radiological images from one location to another for interpretation by
radiologists at remote locations;
and
|
|
·
|
the
development of combined PET/CT scanners, which combine the technology from
PET and CT to create a powerful diagnostic imaging
system.
|
|
·
|
there
is sufficient patient demand for outpatient diagnostic imaging
services;
|
|
·
|
we
believe we can gain significant market
share;
|
|
·
|
we
can build key referral relationships or we have already established such
relationships; and
|
|
·
|
payors
are receptive to our entry into the
market.
|
|
·
|
patient-friendly,
non-clinical environments;
|
|
·
|
a
24-hour turnaround on routine
examinations;
|
|
·
|
interpretations
within one to two hours, if needed;
|
|
·
|
flexible
patient scheduling, including same-day
appointments;
|
|
·
|
extended
operating hours, including
weekends;
|
|
·
|
reports
delivered by courier, facsimile or
email;
|
|
·
|
availability
of second opinions and
consultations;
|
|
·
|
availability
of sub-specialty interpretations at no additional charge;
and
|
|
·
|
standardized
fee schedules by region.
|
|
·
|
The
agreement expires on January 1, 2014. However, the agreement automatically
renews for consecutive 10-year periods, unless either party delivers a
notice of non-renewal to the other party no later than six months prior to
the scheduled expiration date. Either party may terminate the agreement if
the other party defaults under its obligations, after notice and an
opportunity to cure. We may terminate the agreement if Dr. Berger no
longer owns at least 60% of the equity of BRMG; as of December 31, 2009,
he owned 99% of the equity of BRMG.
|
|
·
|
At
its expense, BRMG employs or contracts with an adequate number of
physicians necessary to provide all professional medical services at all
of our California facilities, except for 10 facilities for which we
contract with separate medical
groups.
|
|
·
|
At
our expense, we provide all furniture, furnishings and medical equipment
located at the facilities and we manage and administer all non-medical
functions at, and provide all nurses and other non-physician personnel
required for the operation of, the
facilities.
|
|
·
|
If
BRMG wants to open a new facility, we have the right of first refusal to
provide the space and services for the facility under the same terms and
conditions set forth in the management
agreement.
|
|
·
|
If
we want to open a new facility, BRMG must use its best efforts to provide
medical personnel under the same terms and conditions set forth in the
management agreement. If BRMG cannot provide such personnel, we have the
right to contract with other physicians to provide services at the
facility.
|
|
·
|
BRMG
must maintain medical malpractice insurance for each of its physicians
with coverage limits not less than $1 million per incident and $3 million
in the aggregate per year. BRMG also has agreed to indemnify us for any
losses we suffer that arise out of the acts or omissions of BRMG and its
employees, contractors and agents.
|
% of Net Revenue
|
||||||||||||
Year Ended
December 31,
2007
|
Year Ended
December 31,
2008
|
Year Ended
December 31,
2009
|
||||||||||
Commercial Insurance
(1)
|
57 | % | 56 | % | 56 | % | ||||||
Managed
Care Capitated Payors
|
15 | % | 15 | % | 15 | % | ||||||
Medicare
|
19 | % | 20 | % | 20 | % | ||||||
Medicaid
|
3 | % | 3 | % | 3 | % | ||||||
Other
(2)
|
2 | % | 2 | % | 2 | % | ||||||
Workers
Compensation/Personal Injury
|
4 | % | 4 | % | 4 | % |
|
·
|
Physician
Education
|
|
·
|
Prospective
Review
|
|
·
|
Retrospective
Review
|
Year
Ended December 31
|
||||||||||||||||||||
2005
|
2006
|
2007
|
2008
|
2009
|
||||||||||||||||
Total
facilities owned or managed (at beginning of the year)
|
56 | 57 | 132 | 141 | 164 | |||||||||||||||
Facilities
added by:
|
||||||||||||||||||||
Acquisition
*
|
- | 78 | 12 | 24 | 14 | |||||||||||||||
Internal
development
|
1 | 4 | 2 | 4 | 3 | |||||||||||||||
Facilities
closed or sold
|
- | (7 | ) | (5 | ) | (5 | ) | (1 | ) | |||||||||||
Total
facilities owned or managed (at year end)
|
57 | 132 | * | 141 | 164 | 180 |
MRI
|
Open/MRI
|
CT
|
PET/CT
|
Mammo
|
Ultrasound
|
X-ray
|
NucMed
|
Fluoroscopy
|
Total
|
|||||||||||||||||||||||||||||||
Kansas
|
- | - | 2 | - | - | 3 | 4 | - | 1 | 10 | ||||||||||||||||||||||||||||||
California
|
47 | 22 | 29 | 18 | 62 | 103 | 69 | 15 | 51 | 416 | ||||||||||||||||||||||||||||||
Florida
|
2 | 1 | 2 | 1 | 6 | 5 | 4 | 2 | 2 | 25 | ||||||||||||||||||||||||||||||
Delaware
|
7 | 1 | 6 | 1 | 4 | 14 | 13 | 1 | 4 | 51 | ||||||||||||||||||||||||||||||
New
Jersey
|
7 | 1 | 3 | - | 3 | 5 | - | - | 3 | 22 | ||||||||||||||||||||||||||||||
New
York
|
17 | 1 | 11 | 3 | 14 | 35 | 17 | 2 | 9 | 109 | ||||||||||||||||||||||||||||||
Maryland
|
24 | 9 | 26 | 9 | 33 | 88 | 48 | 20 | 16 | 273 | ||||||||||||||||||||||||||||||
Total
|
104 | 35 | 79 | 32 | 122 | 253 | 155 | 40 | 86 | 906 |
|
·
|
capture
patient demographic, history and billing information at
point-of-service;
|
|
·
|
automatically
generate bills and electronically file claims with third-party
payors;
|
|
·
|
record
and store diagnostic report images in digital
format;
|
|
·
|
digitally
transmit in real-time diagnostic images from one location to another, thus
enabling networked radiologists to cover larger geographic markets by
using the specialized training of other networked
radiologists;
|
|
·
|
perform
claims, rejection and collection analysis;
and
|
|
·
|
perform
sophisticated financial analysis, such as analyzing cost and
profitability, volume, charges, current activity and patient case mix,
with respect to each of our managed care
contracts.
|
|
·
|
to
the extent it is necessary to protect a legitimate business interest of
the party seeking enforcement;
|
|
·
|
if
it does not unreasonably restrain the party against whom enforcement is
sought; and
|
|
·
|
if
it is not contrary to public
interest.
|
|
·
|
identify
attractive and willing candidates for
acquisitions;
|
|
·
|
identify
locations in existing or new markets for development of new
facilities;
|
|
·
|
comply
with legal requirements affecting our arrangements with contracted
radiology practices, including state prohibitions on fee-splitting,
corporate practice of medicine and
self-referrals;
|
|
·
|
obtain
regulatory approvals where necessary and comply with licensing and
certification requirements applicable to our diagnostic imaging
facilities, the contracted radiology practices and the physicians
associated with the contracted radiology
practices;
|
|
·
|
recruit
a sufficient number of qualified radiology technologists and other
non-medical personnel;
|
|
·
|
expand
our infrastructure and management;
and
|
|
·
|
compete
for opportunities. We may not be able to compete effectively
for the acquisition of diagnostic imaging facilities. Our
competitors may have more established operating histories and greater
resources than we do. Competition may also make any
acquisitions more expensive.
|
|
·
|
inability
to obtain adequate financing;
|
|
·
|
possible
adverse effects on our operating
results;
|
|
·
|
diversion
of management’s attention and
resources;
|
|
·
|
failure
to retain key personnel;
|
|
·
|
difficulties
in integrating new operations into our existing infrastructure;
and
|
|
·
|
amortization
or write-offs of acquired intangible assets, including
goodwill.
|
|
·
|
earthquakes,
fires, floods and other natural
disasters;
|
|
·
|
power
losses, computer systems failures, internet and telecommunications or data
network failures, operator negligence, improper operation by or
supervision of employees, physical and electronic losses of data and
similar events; and
|
|
·
|
computer
viruses, penetration by hackers seeking to disrupt operations or
misappropriate information and other breaches of
security.
|
|
·
|
the
federal False Claims Act;
|
|
·
|
the
federal Medicare and Medicaid Anti-Kickback Laws, and state anti-kickback
prohibitions;
|
|
·
|
federal
and state billing and claims submission laws and
regulations;
|
|
·
|
the
federal Health Insurance Portability and Accountability Act of 1996, as
amended by the Health Information Technology for Economic and Clinical
Health Act of 2009, and comparable state
laws;
|
|
·
|
the
federal physician self-referral prohibition commonly known as the Stark
Law and the state equivalent of the Stark
Law;
|
|
·
|
state
laws that prohibit the practice of medicine by non-physicians and prohibit
fee-splitting arrangements involving
physicians;
|
|
·
|
federal
and state laws governing the diagnostic imaging and therapeutic equipment
we use in our business concerning patient safety, equipment operating
specifications and radiation exposure levels;
and
|
|
·
|
state
laws governing reimbursement for diagnostic services related to services
compensable under workers compensation
rules.
|
|
·
|
require
us to dedicate a substantial portion of our cash flow from operations to
payments on our debt, reducing the availability of our cash flow to fund
working capital, capital expenditures, acquisitions and other general
corporate purposes;
|
|
·
|
increase
our vulnerability to adverse general economic and industry
conditions;
|
|
·
|
limit
our flexibility in planning for, or reacting to, changes in our business
and the industry in which we
operate;
|
|
·
|
place
us at a competitive disadvantage compared to our competitors that have
less debt; and
|
|
·
|
limit
our ability to borrow additional funds on terms that are satisfactory to
us or at all.
|
|
·
|
changes
in expectations as to future financial performance or buy/sell
recommendations of securities
analysts;
|
|
·
|
our,
or a competitor’s, announcement of new services, or significant
acquisitions, strategic partnerships, joint ventures or capital
commitments; and
|
|
·
|
the
operating and stock price performance of other comparable
companies.
|
|
·
|
permit
the board of directors to increase its own size, within the maximum
limitations set forth in the bylaws, and fill the resulting
vacancies;
|
|
·
|
authorize
the issuance of additional shares of preferred stock in one or more series
without a stockholder vote; and
|
|
·
|
establish
an advance notice procedure for stockholder proposals to be brought before
an annual meeting of our stockholders, including proposed nominations of
persons for election to the board of
directors.
|
Item
5.
|
Market for the
Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity
Securities
|
Low
|
High
|
|||||||
Quarter Ended
|
||||||||
December 31,
2009
|
$ | 1.90 | $ | 3.39 | ||||
September
30, 2009
|
2.01 | 3.18 | ||||||
June
30, 2009
|
1.00 | 2.79 | ||||||
March
31, 2009
|
0.85 | 3.96 | ||||||
December 31,
2008
|
$ | 1.90 | $ | 5.16 | ||||
September
30, 2008
|
2.94 | 6.90 | ||||||
June
30, 2008
|
6.00 | 8.00 | ||||||
March
31, 2008
|
5.99 | 10.12 |
ANNUAL RETURN PERCENTAGE
|
||||||||||||||||||||||||
Years Ending
|
||||||||||||||||||||||||
Company / Index
|
10/31/05
|
10/31/06
|
12/29/06
|
12/31/07
|
12/31/08
|
12/31/09
|
||||||||||||||||||
RadNet,
Inc.
|
-33.93 | 594.59 | -10.12 | 119.70 | -67.00 | -39.10 | ||||||||||||||||||
S&P
500 Index
|
8.72 | 16.34 | 3.33 | 5.49 | -37.00 | 26.46 | ||||||||||||||||||
S&P
Health Care Sector
|
9.57 | 11.36 | 0.91 | 7.15 | -22.81 | 19.70 |
INDEXED RETURNS
|
||||||||||||||||||||||||||||
Base
|
Years Ending
|
|||||||||||||||||||||||||||
Period
|
||||||||||||||||||||||||||||
Company / Index
|
10/29/04
|
10/31/05
|
10/31/06
|
12/29/06
|
12/31/07
|
12/31/08
|
12/31/09
|
|||||||||||||||||||||
RadNet,
Inc.
|
100 | 66.07 | 458.93 | 412.50 | 906.25 | 299.11 | 182.14 | |||||||||||||||||||||
S&P
500 Index
|
100 | 108.72 | 126.49 | 130.70 | 137.88 | 86.87 | 109.86 | |||||||||||||||||||||
S&P
Health Care Sector
|
100 | 109.57 | 122.02 | 123.13 | 131.94 | 101.84 | 121.90 |
|
·
|
In
October 2009, we issued 50,000 shares of our common stock to an individual
as part of the purchase price for acquisition of an imaging center in
Greece, New York.
|
Years Ended
|
Two Months Ended
|
Years Ended
|
||||||||||||||||||||||||||||||
December
31,
|
December
31,
|
October
31,
|
||||||||||||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2006
|
2005
|
2006
|
2005
|
|||||||||||||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||||||||||||||||||
(dollars in thousands,
except per share data)
|
||||||||||||||||||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||||||||||||||||||
Net
revenue
|
$ | 524,368 | $ | 498,815 | $ | 423,576 | $ | 192,859 | $ | 57,374 | $ | 22,520 | $ | 161,005 | $ | 145,573 | ||||||||||||||||
Operating
expenses
|
397,753 | 384,297 | 330,550 | 147,226 | 46,033 | 19,149 | 120,342 | 109,012 | ||||||||||||||||||||||||
Depreciation
and amortization
|
53,800 | 53,548 | 45,281 | 19,542 | 5,907 | 2,759 | 16,394 | 17,536 | ||||||||||||||||||||||||
Provision
for bad bebts
|
32,704 | 30,832 | 27,467 | 10,707 | 3,907 | 826 | 7,626 | 4,929 | ||||||||||||||||||||||||
Loss
(gain) on disposal of equipment, net
|
523 | 516 | 72 | 335 | (38 | ) | - | 373 | 696 | |||||||||||||||||||||||
Gain
on bargin purchase
|
(1,387 | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||
Gain
from sale of joint venture interests
|
- | - | (1,868 | ) | - | - | - | - | - | |||||||||||||||||||||||
Net
loss attributable to RadNet, Inc.
|
||||||||||||||||||||||||||||||||
common
stockholders
|
(2,267 | ) | (12,836 | ) | (18,131 | ) | (17,722 | ) | (10,983 | ) | (155 | ) | (6,894 | ) | (3,570 | ) | ||||||||||||||||
Basic
and diluted loss per share
|
(0.06 | ) | (0.36 | ) | (0.52 | ) | (0.57 | ) | (0.35 | ) | (0.01 | ) | (0.33 | ) | (0.17 | ) | ||||||||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | 10,094 | $ | - | $ | 18 | $ | 3,221 | $ | 3,221 | $ | 2 | $ | 2 | $ | 2 | ||||||||||||||||
Total
assets
|
480,671 | 495,572 | 433,620 | 394,766 | 394,766 | 119,112 | 131,636 | 117,784 | ||||||||||||||||||||||||
Total
long-term liabilities
|
456,727 | 469,994 | 428,743 | 381,903 | 381,903 | 23,586 | 179,288 | 23,840 | ||||||||||||||||||||||||
Total
liabilities
|
555,432 | 576,602 | 503,244 | 440,508 | 440,508 | 189,725 | 210,430 | 191,866 | ||||||||||||||||||||||||
Working
capital (deficit)
|
9,204 | 2,720 | 23,180 | 31,230 | 31,230 | (141,586 | ) | 2,896 | (143,430 | ) | ||||||||||||||||||||||
Stockholders'
deficit
|
(74,761 | ) | (81,030 | ) | (69,830 | ) | (46,996 | ) | (46,996 | ) | (70,613 | ) | (78,794 | ) | (74,082 | ) |
Item 7
.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
Years Ended
December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
NET
REVENUE
|
100.0 | % | 100.0 | % | 100.0 | % | ||||||
OPERATING
EXPENSES
|
||||||||||||
Operating
expenses
|
75.9 | % | 77.0 | % | 78.0 | % | ||||||
Depreciation
and amortization
|
10.3 | % | 10.7 | % | 10.7 | % | ||||||
Provision
for bad debts
|
6.2 | % | 6.2 | % | 6.5 | % | ||||||
Loss
on sale of equipment
|
0.1 | % | 0.1 | % | 0.0 | % | ||||||
Severance
costs
|
0.1 | % | 0.1 | % | 0.2 | % | ||||||
Total
operating expenses
|
92.6 | % | 94.1 | % | 95.5 | % | ||||||
INCOME
FROM OPERATIONS
|
7.4 | % | 5.9 | % | 4.5 | % | ||||||
OTHER
EXPENSES (INCOME)
|
||||||||||||
Interest
expense
|
9.4 | % | 10.4 | % | 10.5 | % | ||||||
Gain
on bargain purchase
|
-0.3 | % | 0.0 | % | 0.0 | % | ||||||
Gain
from sale of joint venture interests
|
0.0 | % | 0.0 | % | -0.4 | % | ||||||
Other
expenses (income)
|
0.2 | % | 0.0 | % | 0.0 | % | ||||||
Total
other expenses
|
9.4 | % | 10.4 | % | 10.0 | % | ||||||
LOSS
BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT
VENTURES
|
-1.9 | % | -4.5 | % | -5.5 | % | ||||||
Provision
for income taxes
|
-0.1 | % | 0.0 | % | -0.1 | % | ||||||
Equity
in earnings of joint ventures
|
1.6 | % | 2.0 | % | 1.4 | % | ||||||
NET
LOSS
|
-0.4 | % | -2.6 | % | -4.1 | % | ||||||
Net
income attributable to noncontrolling interests
|
0.0 | % | 0.0 | % | 0.1 | % | ||||||
NET
LOSS ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
|
-0.4 | % | -2.6 | % | -4.3 | % |
Years Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Salaries and professional reading
fees,
excluding stock-based
compensation
|
$ | 215,095 | $ | 210,450 | ||||
Stock-based
compensation
|
3,607 | 2,902 | ||||||
Building
and equipment rental
|
43,346 | 43,478 | ||||||
Medical
supplies
|
32,507 | 29,848 | ||||||
Other
operating expense
*
|
103,198 | 97,619 | ||||||
Operating
expenses
|
397,753 | 384,297 | ||||||
Depreciation
and amortization
|
53,800 | 53,548 | ||||||
Provision
for bad debts
|
32,704 | 30,832 | ||||||
Loss
on sale of equipment, net
|
523 | 516 | ||||||
Severance
costs
|
731 | 335 | ||||||
Total
operating expenses
|
$ | 485,511 | $ | 469,528 |
|
·
|
Salaries
and professional reading fees, excluding stock-based compensation and
severance
|
|
·
|
Stock-based
compensation
|
|
·
|
Building
and equipment rental
|
|
·
|
Medical
supplies
|
|
·
|
Depreciation
and amortization expense
|
|
·
|
Provision
for bad debts
|
|
·
|
Loss on
sale of equipment
|
|
·
|
Severance
costs
|
Years Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Salaries
and professional reading fees, excluding stock-based
compensation
|
$ | 210,450 | $ | 178,573 | ||||
Stock-based
compensation
|
2,902 | 3,313 | ||||||
Building
and equipment rental
|
43,478 | 41,299 | ||||||
General
administrative expenses
|
127,467 | 107,245 | ||||||
NASDAQ
one-time listing fee
|
- | 120 | ||||||
Operating
expenses
|
384,297 | 330,550 | ||||||
Depreciation
and amortization
|
53,548 | 45,281 | ||||||
Provision
for bad debts
|
30,832 | 27,467 | ||||||
Loss
on sale of equipment, net
|
516 | 72 | ||||||
Severance
costs
|
335 | 934 | ||||||
Total
operating expenses
|
$ | 469,528 | $ | 404,304 |
|
·
|
Salaries
and professional reading fees, excluding stock-based compensation and
severance
|
|
·
|
Stock-based
compensation
|
|
·
|
Building
and equipment rental
|
|
·
|
General and
administrative expenses
|
|
·
|
Depreciation
and amortization expense
|
|
·
|
Provision
for bad debts
|
|
·
|
Loss on
sale of equipment
|
|
·
|
Severance
costs
|
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
Total
|
||||||||||||||||||||||
Notes payable
(1)
|
$ | 6,927 | $ | 7,207 | $ | 239,097 | $ | 170,395 | $ | - | $ | - | $ | 423,626 | ||||||||||||||
Capital
leases (2)
|
16,019 | 9,597 | 4,242 | 810 | 32 | - | 30,700 | |||||||||||||||||||||
Operating
leases (3)
|
35,105 | 30,593 | 26,417 | 21,801 | 16,541 | 59,931 | 190,388 | |||||||||||||||||||||
Total
|
$ | 58,051 | $ | 47,397 | $ | 269,756 | $ | 193,006 | $ | 16,573 | $ | 59,931 | $ | 644,714 |
|
·
|
our
reported amounts of assets and liabilities in our consolidated balance
sheets at the dates of the financial
statements;
|
|
·
|
our
disclosure of contingent assets and liabilities at the dates of the
financial statements; and
|
|
·
|
our
reported amounts of net revenue and expenses in our consolidated
statements of operations during the reporting
periods.
|
Item
7A.
|
Quantitative and
Qualitative Disclosures About Market
Risk
|
Item
8.
|
Financial Statements
and Supplementary Data
|
Years Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
NET
REVENUE
|
$ | 524,368 | $ | 498,815 | $ | 423,576 | ||||||
OPERATING
EXPENSES
|
||||||||||||
Operating
expenses
|
397,753 | 384,297 | 330,550 | |||||||||
Depreciation
and amortization
|
53,800 | 53,548 | 45,281 | |||||||||
Provision
for bad debts
|
32,704 | 30,832 | 27,467 | |||||||||
Loss
on sale of equipment
|
523 | 516 | 72 | |||||||||
Severance
costs
|
731 | 335 | 934 | |||||||||
Total
operating expenses
|
485,511 | 469,528 | 404,304 | |||||||||
INCOME
FROM OPERATIONS
|
38,857 | 29,287 | 19,272 | |||||||||
OTHER
EXPENSES (INCOME)
|
||||||||||||
Interest
expense
|
49,193 | 51,811 | 44,307 | |||||||||
Gain
on bargain purchase
|
(1,387 | ) | - | - | ||||||||
Gain
from sale of joint venture interests
|
- | - | (1,868 | ) | ||||||||
Other
expenses (income)
|
1,239 | (151 | ) | (29 | ) | |||||||
Total
other expenses
|
49,045 | 51,660 | 42,410 | |||||||||
LOSS BEFORE
INCOME TAXES AND EQUITY
IN EARNINGS OF
JOINT VENTURES
|
(10,188 | ) | (22,373 | ) | (23,138 | ) | ||||||
Provision
for income taxes
|
(443 | ) | (151 | ) | (337 | ) | ||||||
Equity
in earnings of joint ventures
|
8,456 | 9,791 | 5,944 | |||||||||
NET
LOSS
|
(2,175 | ) | (12,733 | ) | (17,531 | ) | ||||||
Net
income attributable to noncontrolling interests
|
92 | 103 | 600 | |||||||||
NET
LOSS ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
|
$ | (2,267 | ) | $ | (12,836 | ) | $ | (18,131 | ) | |||
BASIC AND
DILUTED NET LOSS PER SHARE ATTRIBUTABLE
TO RADNET,
INC. COMMON STOCKHOLDERS
|
$ | (0.06 | ) | $ | (0.36 | ) | $ | (0.52 | ) | |||
WEIGHTED
AVERAGE SHARES OUTSTANDING
|
||||||||||||
Basic
and Diluted
|
36,047,033 | 35,721,028 | 34,592,716 |
Accumulated
|
||||||||||||||||||||||||||||||||
Other
|
Total
|
|||||||||||||||||||||||||||||||
Common Stock
|
Paid-in
|
Accumulated
|
Comprehensive
|
Radnet, Inc.
’
s
|
Noncontrolling
|
Total
|
||||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Loss
|
Equity Deficit
|
Interests
|
Equity Deficit
|
|||||||||||||||||||||||||
BALANCE
- DECEMBER 31, 2006
|
34,973,780 | $ | 3 | $ | 146,056 | $ | (192,287 | ) | $ | (73 | ) | $ | (46,996 | ) | $ | 1,254 | $ | (45,742 | ) | |||||||||||||
Cumulative
effect adjustment pursuant
to
adoption of SAB No. 108
|
- | - | - | (4,468 | ) | - | (4,468 | ) | - | (4,468 | ) | |||||||||||||||||||||
Issuance
of common stock upon
|
- | - | ||||||||||||||||||||||||||||||
exercise
of options/warrants
|
1,178,278 | 1 | 957 | - | - | 958 | - | 958 | ||||||||||||||||||||||||
Retirement
of treasury shares
|
(912,500 | ) | - | (695 | ) | - | - | - | - | - | ||||||||||||||||||||||
Stock-based
compensation
|
- | - | 3,313 | - | - | 3,313 | - | 3,313 | ||||||||||||||||||||||||
Dividends
paid to noncontrolling
|
- | - | ||||||||||||||||||||||||||||||
interests
|
- | - | - | - | - | - | (1,219 | ) | (1,219 | ) | ||||||||||||||||||||||
De-consolidation
of joint venture
|
(429 | ) | (429 | ) | ||||||||||||||||||||||||||||
Change
in fair value of
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
cash
flow hedge
|
- | - | - | - | (4,506 | ) | (4,506 | ) | - | (4,506 | ) | |||||||||||||||||||||
Net
loss
|
- | - | - | (18,131 | ) | - | (18,131 | ) | 600 | (17,531 | ) | |||||||||||||||||||||
Comprehensive
loss
|
- | - | - | - | - | (22,637 | ) | 600 | (22,037 | ) | ||||||||||||||||||||||
BALANCE
- DECEMBER 31, 2007
|
35,239,558 | $ | 4 | $ | 149,631 | $ | (214,886 | ) | $ | (4,579 | ) | $ | (69,830 | ) | $ | 206 | $ | (69,624 | ) | |||||||||||||
Issuance
of common stock upon
exercise
of options/warrants
|
671,916 | - | 473 | - | - | 473 | - | 473 | ||||||||||||||||||||||||
Stock-based
compensation
|
- | - | 2,902 | - | - | 2,902 | - | 2,902 | ||||||||||||||||||||||||
Dividends
paid to noncontrolling
|
- | - | ||||||||||||||||||||||||||||||
interests
|
- | - | - | - | - | - | (231 | ) | (231 | ) | ||||||||||||||||||||||
Change
in fair value of
|
- | - | ||||||||||||||||||||||||||||||
cash
flow hedge
|
- | - | - | - | (1,817 | ) | (1,817 | ) | - | (1,817 | ) | |||||||||||||||||||||
Net
loss
|
- | - | - | (12,836 | ) | - | (12,836 | ) | 103 | (12,733 | ) | |||||||||||||||||||||
Comprehensive
loss
|
(14,653 | ) | 103 | (14,550 | ) | |||||||||||||||||||||||||||
BALANCE
- DECEMBER 31, 2008
|
35,911,474 | $ | 4 | $ | 153,006 | $ | (227,722 | ) | $ | (6,396 | ) | $ | (81,108 | ) | $ | 78 | $ | (81,030 | ) | |||||||||||||
Issuance
of common stock to
shareholders
of Ridgewood Diagnostics
|
50,000 | $ | - | 129 | $ | - | $ | - | 129 | - | 129 | |||||||||||||||||||||
Issuance
of common stock upon
|
- | - | - | |||||||||||||||||||||||||||||
exercise
of options/warrants
|
297,805 | - | 16 | - | - | 16 | - | 16 | ||||||||||||||||||||||||
Stock-based
compensation
|
- | - | 3,607 | - | - | 3,607 | - | 3,607 | ||||||||||||||||||||||||
Dividends
paid to noncontrolling
|
- | - | - | |||||||||||||||||||||||||||||
interests
|
- | - | - | - | - | - | (116 | ) | (116 | ) | ||||||||||||||||||||||
Change
in fair value of
|
- | - | - | |||||||||||||||||||||||||||||
cash
flow hedge
|
- | - | - | - | (1,311 | ) | (1,311 | ) | - | (1,311 | ) | |||||||||||||||||||||
Change
in fair value of cash flow hedge from
prior
periods reclassified to earnings
|
- | - | - | - | 6,119 | 6,119 | - | 6,119 | ||||||||||||||||||||||||
Net
loss
|
(2,267 | ) | (2,267 | ) | 92 | (2,175 | ) | |||||||||||||||||||||||||
Comprehensive
income
|
- | - | - | - | - | 2,541 | 92 | 2,633 | ||||||||||||||||||||||||
BALANCE
- DECEMBER 31, 2009
|
36,259,279 | $ | 4 | $ | 156,758 | $ | (229,989 | ) | $ | (1,588 | ) | $ | (74,815 | ) | $ | 54 | $ | (74,761 | ) |
Years
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
Net
loss
|
$ | (2,175 | ) | $ | (12,733 | ) | $ | (17,531 | ) | |||
Adjustments to reconcile net
loss
to net cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization
|
53,800 | 53,548 | 45,281 | |||||||||
Provision
for bad debts
|
32,704 | 30,832 | 27,467 | |||||||||
Equity
in earnings of joint ventures
|
(8,456 | ) | (9,791 | ) | (5,944 | ) | ||||||
Distributions
from joint ventures
|
7,667 | 7,982 | 6,464 | |||||||||
Deferred
rent amortization
|
1,094 | 3,514 | 1,037 | |||||||||
Amortization
of deferred financing cost
|
2,678 | 2,567 | 1,632 | |||||||||
Net
loss on disposal of assets
|
523 | 516 | 72 | |||||||||
Gain
on bargain purchase
|
(1,387 | ) | - | - | ||||||||
Gain
from sale of joint venture interests
|
- | (1,868 | ) | |||||||||
Gain
on extinguishment of debt
|
- | (47 | ) | |||||||||
Amortization
of cash flow hedge
|
6,119 | - | - | |||||||||
Stock-based
compensation
|
3,607 | 2,902 | 3,313 | |||||||||
Changes in operating assets and
liabilities, net of assets
acquired and liabilities assumed
in purchase transactions:
|
||||||||||||
Accounts
receivable
|
(24,432 | ) | (36,297 | ) | (42,923 | ) | ||||||
Other
current assets
|
4,206 | (1,515 | ) | 4,396 | ||||||||
Other
assets
|
51 | 684 | 588 | |||||||||
Accounts
payable and accrued expenses
|
619 | 3,270 | 3,337 | |||||||||
Net
cash provided by operating activities
|
76,618 | 45,432 | 25,321 | |||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Purchase
of imaging facilities
|
(6,085 | ) | (28,859 | ) | (18,465 | ) | ||||||
Proceeds
from sale of imaging facilities
|
650 | - | - | |||||||||
Purchase
of property and equipment
|
(30,752 | ) | (29,199 | ) | (27,207 | ) | ||||||
Proceeds
from sale of equipment
|
219 | 2,961 | 845 | |||||||||
Proceeds
from sale of joint venture interests
|
- | - | 2,260 | |||||||||
Purchase
of equity interest in joint ventures
|
(315 | ) | (938 | ) | (4,413 | ) | ||||||
Adjustment
to purchase of Radio logix, net of cash acquired
|
- | - | (370 | ) | ||||||||
Proceeds
from the divestiture of imaging centers
|
- | - | 1,625 | |||||||||
Purchase
of covenant not to compete contract
|
- | - | (250 | ) | ||||||||
Payments
collected on notes receivable
|
- | - | 111 | |||||||||
Net
cash used in investing activities
|
(36,283 | ) | (56,035 | ) | (45,864 | ) | ||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
Principal
payments on notes and leases payable
|
(23,660 | ) | (19,112 | ) | (10,398 | ) | ||||||
Proceeds
from borrowings on notes payable
|
- | 35,000 | 33,137 | |||||||||
Proceeds
from borrowings upon refinancing
|
- | 1,212 | - | |||||||||
Deferred
financing costs
|
- | (4,277 | ) | (1,351 | ) | |||||||
Net
payments on line of credit
|
(1,742 | ) | (2,480 | ) | (3,787 | ) | ||||||
Distributions
to counterparties of cash flow hedges
|
(4,739 | ) | - | - | ||||||||
Distributions
to noncontrolling interests
|
(116 | ) | (231 | ) | (1,219 | ) | ||||||
Proceeds
from issuance of common stock
|
16 | 473 | 958 | |||||||||
Net
cash (used in) provided by financing activities
|
(30,241 | ) | 10,585 | 17,340 | ||||||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
10,094 | (18 | ) | (3,203 | ) | |||||||
CASH
AND CAH EQUIVALENTS, beginning of period
|
- | 18 | 3,221 | |||||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ | 10,094 | $ | - | $ | 18 | ||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
||||||||||||
Cash
paid during the period for interest
|
$ | 40,092 | $ | 49,236 | $ | 41,382 | ||||||
Cash
paid during the period for income taxes
|
$ | 348 | $ | 389 | $ | 186 |
|
·
|
maximizing
performance at our existing
facilities;
|
|
·
|
focusing
on profitable contracting;
|
|
·
|
expanding
MRI, CT and PET applications;
|
|
·
|
optimizing
operating efficiencies; and
|
|
·
|
expanding
our networks.
|
December 31,
|
||||||||
Balance
Sheet Data:
|
2009
|
2008
|
||||||
Current
assets
|
$ | 20,920 | $ | 20,732 | ||||
Noncurrent
assets
|
27,243 | 23,557 | ||||||
Current
liabilities
|
(5,929 | ) | (4,634 | ) | ||||
Noncurrent
liabilities
|
(7,692 | ) | (7,848 | ) | ||||
Total
net assets
|
$ | 34,542 | $ | 31,807 | ||||
Book
value of RadNet joint venture interests
|
$ | 14,934 | $ | 13,717 | ||||
Cost
in excess of book value of acquired joint venture
interests
|
3,383 | 3,383 | ||||||
Elimination of intercompany
profit remaining on RadNet’s
consolidated balance
sheet
|
424 | 537 | ||||||
Total
value of RadNet joint venture interests
|
$ | 18,741 | $ | 17,637 | ||||
Total
book value of other joint venture partner interests
|
$ | 19,608 | $ | 18,090 | ||||
Net
revenue
|
$ | 76,557 | $ | 80,948 | ||||
Net
income
|
$ | 12,744 | $ | 17,758 |
Balance
as of December 31, 2007
|
$ | 84,395 | ||
Adjustments
to our preliminary allocation of the purchase price of Borge Imaging
Group
|
(254 | ) | ||
Adjustments
to our preliminary allocation of the purchase price of Valley Imaging
Center, Inc.
|
212 | |||
Goodwill
acquired through the acquisition of Rolling Oaks Imaging
Group
|
5,612 | |||
Goodwill
acquired through the acquisition of Papastavros Associates Medical
Imaging
|
3,649 | |||
Goodwill
acquired through the acquisition of BreastLink Medical Group,
Inc
|
2,048 | |||
Goodwill
acquired through the acquisition of InSight Health Corp.
|
5,560 | |||
Goodwill
acquired through the acquisition of Simi Valley Advanced
Medical
|
313 | |||
Goodwill
acquired through the acquisition of NeuroSciences Imaging
Center
|
2,613 | |||
Goodwill
acquired through the acquisition of imaging practice of Parvis Gamagami, M
.D
|
600 | |||
Goodwill
acquired through the acquisition of Middletown Imaging
|
530 | |||
Balance
as of December 31, 2008
|
105,278 | |||
Goodwill
acquired through the acquisition of Elite Diagnostic Imaging,
LLC
|
100 | |||
Goodwill
acquired through the acquisition of Ridgewood Diagnostics and Unity
Hospital
|
1,105 | |||
Goodwill
acquired through the acquisition of Chesapeake Urology
Associates
|
19 | |||
Balance
as of December 31, 2009
|
$ | 106,502 |
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
Total
|
||||||||||||||||||||||
Management
Service Contracts
|
$ | 2,315 | $ | 2,315 | $ | 2,315 | $ | 2,315 | $ | 2,315 | $ | 39,069 | $ | 50,644 | ||||||||||||||
Covenant
not to compete contracts
|
745 | 682 | 510 | 135 | 64 | - | 2,136 | |||||||||||||||||||||
Trade
Names
|
150 | 150 | 150 | 113 | - | 970 | 1,533 | |||||||||||||||||||||
Total
Annual Amortization
|
$ | 3,210 | $ | 3,147 | $ | 2,975 | $ | 2,563 | $ | 2,379 | $ | 40,039 | $ | 54,313 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Land
|
$ | 250 | $ | - | ||||
Buildings
|
2 | 2 | ||||||
Medical
equipment
|
200,471 | 173,884 | ||||||
Office
equipment, furniture and fixtures
|
56,134 | 49,676 | ||||||
Leasehold
improvements
|
101,904 | 93,573 | ||||||
Equipment
under capital lease
|
57,421 | 59,543 | ||||||
416,182 | 376,678 | |||||||
Accumulated
depreciation and amortization
|
(233,611 | ) | (183,574 | ) | ||||
$ | 182,571 | $ | 193,104 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Accounts
payable
|
$ | 17,717 | $ | 26,071 | ||||
Accrued
expenses
|
32,305 | 35,449 | ||||||
Accrued
payroll and vacation
|
13,153 | 11,506 | ||||||
Accrued
professional fees
|
6,466 | 8,149 | ||||||
Total
|
$ | 69,641 | $ | 81,175 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
Revolving
lines of credit
|
$ | - | $ | 1,742 | ||||
Notes payable at interest rates
ranging from 8.8% to 13.5%,
due through 2013, collateralized
by medical equipment
|
423,626 | 425,236 | ||||||
Obligations under capital leases
at interest rates ranging
from 9.1% to 13.0%, due through
2010, collateralized by
medical and office
equipment
|
27,689 | 39,302 | ||||||
451,315 | 466,280 | |||||||
Less:
current portion
|
(21,048 | ) | (20,565 | ) | ||||
$ | 430,267 | $ | 445,715 |
2010
|
$ | 6,927 | ||
2011
|
7,207 | |||
2012
|
239,097 | |||
2013
|
170,395 | |||
$ | 423,626 |
2010
|
$ | 16,019 | ||
2011
|
9,597 | |||
2012
|
4,242 | |||
2013
|
810 | |||
2014
|
32 | |||
Total
minimum payments
|
30,700 | |||
Amount
representing interest
|
(3,011 | ) | ||
Present
value of net minimum
|
||||
lease
payments
|
27,689 | |||
Less
current portion
|
(14,121 | ) | ||
Long-term
portion
|
$ | 13,568 |
Balance Sheet Location
|
Fair Value – Asset (Liability)
Derivatives
|
||||
Derivatives
designated as hedging instruments
|
|||||
Interest
rate contracts
|
Other
non-current liabilities
|
$ | (8,901 | ) |
For the year Ended December 31, 2009 | ||||||||||
Cash Flow Hedging
Relationships
|
Amount of Gain
(Loss) Recognized
in OCI on
Derivative
(Effective Portion)
|
Location of Gain
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
|
Amount of Gain
(Loss) Recognized in
OCI During the
Term of the Hedge
Relationship
Reclassified into
Income (Effective
Portion)
|
Location of Gain (Loss)
Recognized in OCI
During the Term of the
Hedge Relationship
Reclassified into Income
(Effective Portion)
|
||||||
Interest
rate contracts
|
$ | (1,311 | ) |
Interest
income/
(expense)
|
$ | (6,119 | )* |
Interest
income/(expense)
|
Years Ended
December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Federal
tax
|
34.00 | % | 34.00 | % | 34.00 | % | ||||||
State
franchise tax, net of federal benefit
|
-16.03 | % | -1.26 | % | -2.12 | % | ||||||
Non
deductible expenses
|
-2.47 | % | -1.44 | % | -1.14 | % | ||||||
Changes
in valuation allowance
|
-39.78 | % | -32.56 | % | -32.86 | % | ||||||
Income
tax expense
|
-24.28 | % | -1.26 | % | -2.12 | % |
Deferred Tax Assets &
Liabilities:
|
||||||||
December 31,
|
||||||||
2009
|
2008
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating losses
|
$ | 67,671 | $ | 68,860 | ||||
Accrued
expenses
|
6,232 | 5,270 | ||||||
Unfavorable
contract liability
|
3,256 | 3,647 | ||||||
Equity
compensation
|
3,701 | 2,296 | ||||||
Allowance
for doubtful accounts
|
1,823 | 1,510 | ||||||
Other
|
370 | 498 | ||||||
Valuation
Allowance
|
(55,268 | ) | (57,407 | ) | ||||
Total
Deferred Tax Assets
|
$ | 27,785 | $ | 24,674 | ||||
Deferred
tax liabilities:
|
||||||||
Property
Plant & Equipment
|
(10,006 | ) | (7,421 | ) | ||||
Goodwill
|
(9,239 | ) | (8,411 | ) | ||||
Intangibles
|
(8,461 | ) | (8,619 | ) | ||||
Other
|
(356 | ) | (500 | ) | ||||
Total
Deferred Tax Liabilities
|
$ | (28,062 | ) | $ | (24,951 | ) | ||
Net
deferred tax Asset (Liability)
|
$ | (277 | ) | $ | (277 | ) |
Total Net Operating
|
Amount Subject
|
|||||||
Year Ended
|
Loss Carryforwards
|
to 382 limitation
|
||||||
2010
|
13,283 | 1,737 | ||||||
2011
|
- | - | ||||||
2012
|
- | - | ||||||
2013
|
- | - | ||||||
2014
|
- | - | ||||||
Thereafter
|
168,262 | 16,195 | ||||||
$ | 181,545 | $ | 17,932 |
For the Years Ended December 31,
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Impact of Stock-Based Compensation
|
||||||||||||||||||||||||
As Reported
|
Comp.
|
As
Reported
|
Comp.
|
As Reported
|
Comp.
|
|||||||||||||||||||
Income
from operations
|
$ | 38,857 | $ | (3,607 | ) | $ | 29,287 | $ | (2,902 | ) | $ | 19,272 | $ | (3,313 | ) | |||||||||
Net
loss attributable to RadNet, Inc.’s
common
stockholders before income taxes
|
$ | (1,824 | ) | $ | (3,607 | ) | $ | (12,685 | ) | $ | (2,902 | ) | $ | (17,794 | ) | $ | (3,313 | ) | ||||||
Net
loss attributable to RadNet, Inc.’s
common
stockholders
|
$ | (2,267 | ) | $ | (3,607 | ) | $ | (12,836 | ) | $ | (2,902 | ) | $ | (18,131 | ) | $ | (3,313 | ) | ||||||
Basic
and diluted net loss per share
attributable
to RadNet, Inc.’s common
stockholders
|
$ | (0.06 | ) | $ | (0.10 | ) | $ | (0.36 | ) | $ | (0.08 | ) | $ | (0.52 | ) | $ | (0.10 | ) | ||||||
Net
diluted earnings per share attributable
to
RadNet, Inc.’s common stockholders
|
$ | (0.06 | ) | $ | (0.10 | ) | $ | (0.36 | ) | $ | (0.08 | ) | $ | (0.52 | ) | $ | (0.10 | ) |
Weighted
Average
|
||||||||||||||||
Weighted
Average
|
Remaining
|
Aggregate
|
||||||||||||||
Outstanding
Options and Warrants
Under
the 2006 Plan
|
Shares
|
Exercise
price
Per
Common
Share
|
Contractual
Life
(in
years)
|
Intrinsic
Value
|
||||||||||||
Balance,
December 31, 2008
|
2,451,000 | $ | 5.44 | |||||||||||||
Granted
|
1,733,750 | 2.41 | ||||||||||||||
Exercised
|
- | - | ||||||||||||||
Canceled
or expired
|
(225,000 | ) | 4.72 | |||||||||||||
Balance,
December 31, 2009
|
3,959,750 | 4.15 | 4.13 | $ | 226,770 | |||||||||||
Exercisable
at December 31, 2009
|
2,133,584 | 4.09 | 3.96 | 226,770 |
Weighted Average
|
||||||||||||||||
Weighted Average
|
Remaining
|
Aggregate
|
||||||||||||||
Non-Plan
|
Exercise price
|
Contractual Life
|
Intrinsic
|
|||||||||||||
Outstanding Warrants
|
Shares
|
Per Common Share
|
(in years)
|
Value
|
||||||||||||
Balance,
December 31, 2008
|
3,432,898 | $ | 2.07 | |||||||||||||
Granted
|
- | - | ||||||||||||||
Exercised
|
(375,000 | ) | 0.64 | |||||||||||||
Canceled
or expired
|
- | - | ||||||||||||||
Balance,
December 31, 2009
|
3,057,898 | 2.24 | 2.32 | $ | 1,847,266 | |||||||||||
Exercisable
at December 31, 2009
|
2,614,566 | 1.91 | 2.35 | 1,797,666 |
|
Risk-free
|
Expected
|
Expected
|
Expected
|
||||||||||
Interest Rate
|
Life
|
Volatility
|
Dividends
|
|||||||||||
December
31, 2009
|
2.65 | % |
3.1
years
|
91.45 | % | - | ||||||||
December
31, 2008
|
2.75 | % |
3.41
years
|
71.75 | % | - | ||||||||
December
31, 2007
|
4.54 | % |
4.19
years
|
94.38 | % | - |
Facilities
|
Equipment
|
Total
|
||||||||||
2010
|
$ | 28,105 | $ | 7,000 | $ | 35,105 | ||||||
2011
|
24,644 | 5,949 | 30,593 | |||||||||
2012
|
22,247 | 4,169 | 26,416 | |||||||||
2013
|
19,197 | 2,605 | 21,802 | |||||||||
2014
|
16,395 | 146 | 16,541 | |||||||||
Thereafter
|
59,931 | - | 59,931 | |||||||||
$ | 170,519 | $ | 19,869 | $ | 190,388 |
2009 Quarter Ended
|
2008 Quarter Ended
|
|||||||||||||||||||||||||||||||
Mar 31
|
June 30
|
Sept 30
|
Dec 31
|
Mar 31
|
June 30
|
Sept 30
|
Dec 31
|
|||||||||||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||||||||||||||||||
Net
revenue
|
$ | 128,003 | $ | 131,146 | $ | 133,404 | $ | 131,815 | $ | 113,897 | $ | 126,559 | $ | 130,902 | $ | 127,457 | ||||||||||||||||
Total
operating expenses
|
118,204 | 120,527 | 124,261 | 121,132 | 107,961 | 119,011 | 121,362 | 121,194 | ||||||||||||||||||||||||
Total
other expense
|
13,219 | 13,370 | 12,365 | 11,478 | 13,556 | 12,495 | 12,047 | 13,562 | ||||||||||||||||||||||||
Equity
in earnings of joint ventures
|
2,635 | 2,453 | 1,751 | 1,617 | 2,292 | 2,837 | 2,686 | 1,976 | ||||||||||||||||||||||||
Income
tax expense
|
37 | 13 | 231 | 162 | 123 | 14 | 14 | - | ||||||||||||||||||||||||
Net
income (loss)
|
(822 | ) | (311 | ) | (1,702 | ) | 660 | (5,451 | ) | (2,124 | ) | 165 | (5,323 | ) | ||||||||||||||||||
Net
income attributable to noncontrolling
interests
|
20 | 25 | 24 | 23 | 24 | 25 | 27 | 27 | ||||||||||||||||||||||||
Net
income (loss) attributable to RadNet, Inc. common
stockholders
|
(842 | ) | (336 | ) | (1,726 | ) | 637 | (5,475 | ) | (2,149 | ) | 138 | (5,350 | ) | ||||||||||||||||||
Basic
net income (loss) per share
attributable
to RadNet, Inc.
common
stockholders
|
(0.02 | ) | (0.01 | ) | (0.05 | ) | 0.02 | (0.15 | ) | (0.06 | ) | 0.00 | (0.15 | ) | ||||||||||||||||||
Diluted
net income (loss) per
share
attributable to RadNet, Inc.
common
stockholders
|
(0.02 | ) | (0.01 | ) | (0.05 | ) | 0.02 | (0.15 | ) | (0.06 | ) | 0.00 | (0.15 | ) | ||||||||||||||||||
Weighted
average shares outstanding
|
||||||||||||||||||||||||||||||||
Basic
|
35,916 | 35,924 | 36,105 | 36,238 | 35,561 | 35,672 | 35,760 | 35,875 | ||||||||||||||||||||||||
Diluted
|
35,916 | 35,924 | 36,105 | 37,418 | 35,561 | 35,672 | 37,015 | 35,875 |
Item 9.
|
Changes In and
Disagreements with Accountants on Accounting and Financial
Disclosure
|
Item 9A.
|
Controls and
Procedures
|
/s/
Ernst & Young LLP
|
Item 9B
|
Other
Information
|
Name
|
Age
|
Officer
Since
|
Position
|
|||
Howard
G. Berger, M.D.
|
64
|
1992
|
President
and Chief Executive Officer
|
|||
John
V. Crues, III, M.D.
|
60
|
2000
|
Medical
Director
|
|||
Stephen
M. Forthuber
|
49
|
2006
|
Executive
Vice President and Chief Operating Officer-Eastern
Operations
|
|||
Norman
R. Hames
|
53
|
1996
|
Executive
Vice President, Secretary, Chief Operating Officer-Western
Operations
|
|||
Jeffrey
L. Linden
|
67
|
2001
|
Executive
Vice President and General Counsel
|
|||
Mark
D. Stolper
|
38
|
2004
|
Executive
Vice President and Chief Financial Officer
|
|||
Michael
N. Murdock
|
55
|
2007
|
Executive
Vice President and Chief Development
Officer
|
Item
11.
|
Executive
Compensation
|
Item
12.
|
Security Ownership of
Certain Beneficial Owners and Management and Related Stockholder
Matters
|
|
·
|
each
person we know to be the beneficial owner of 5% or more of our outstanding
shares of common stock,
|
|
·
|
each
of our Named Executive Officers and directors,
and
|
|
·
|
all
of our current executive officers and directors as a
group.
|
Name of Beneficial Owner
|
Shares
Beneficially
Owned
|
Percent of
Shares
Beneficially
Owned
|
||||||
Howard
G. Berger, M.D.
(1)
|
6,505,140 | 17.9 | % | |||||
Marvin
S. Cadwell
|
125,178 |
(2)
|
* | |||||
John
v. Crues, III, M.D.
|
773,262 |
(3)
|
2.1 | % | ||||
Norman
R. Hames
|
1,347,898 |
(4)
|
3.7 | % | ||||
Lawrence
L. Levitt
|
156,250 |
(5)
|
* | |||||
Michael
L. Sherman, M.D.
|
155,065 |
(6)
|
* | |||||
David
L. Swartz
|
191,250 |
(7)
|
* | |||||
Jeffrey
L. Linden
|
985,000 |
(8)
|
2.7 | % | ||||
Mark
D. Stolper
|
360,538 |
(9)
|
1 | % | ||||
Stephen
M. Forthuber
|
391,667 |
(10)
|
1 | % | ||||
Michael
N. Murdock
|
85,000 |
(11)
|
* | |||||
All
directors and executive officers as a group (11
persons)
|
11,076,298 |
(12)
|
30.5 | % |
*
|
Represents
less than 1%.
|
**
|
Subject
to applicable community property statutes and except as otherwise noted,
each holder named in the table has sole voting and investment power with
respect to all shares of common stock shown as beneficially
owned.
|
(1)
|
As
a result of his stock ownership and positions as president and director,
Dr. Berger may be deemed to be a controlling person of our
company.
|
(2)
|
Beneficial
ownership includes 106,250 shares subject to options exercisable within 60
days of December 31, 2009.
|
(3)
|
Beneficial
ownership includes 350,000 shares subject to options and warrant
exercisable within 60 days of December 31,
2009.
|
(4)
|
Beneficial
ownership includes 1,322,898 shares subject to options and warrants
exercisable within 60 days of December 31,
2009.
|
(5)
|
Beneficial
ownership includes 131,250 shares subject to options and warrants
exercisable within 60 days of December 31,
2009.
|
(6)
|
Beneficial
ownership includes 106,250 shares subject to options exercisable within 60
days of December 31, 2009.
|
(7)
|
Beneficial
ownership includes 156,250 shares subject to options and warrants
exercisable within 60 days of December 31,
2009.
|
(8)
|
Beneficial
ownership includes 437,500 shares subject to options and warrants
exercisable within 60 days of December 31,
2009.
|
(9)
|
Beneficial
ownership includes 283,334 shares subject to options and warrants
exercisable within 60 days of December 31,
2009.
|
(10)
|
Beneficial
ownership includes 391,667 shares subject to options exercisable within 60
days of December 31, 2009.
|
(11)
|
Beneficial
ownership includes 85,000 shares subject to options exercisable within 60
days of December 31, 2009.
|
(12)
|
Beneficial
ownership includes 3,370,399 shares subject to options and warrants
exercisable within 60 days of December 31,
2009.
|
Item
13.
|
Certain Relationships
and Related Transactions, and Director
Independence
|
Item
14.
|
Principal Accountant
Fees and Services
|
Item
15.
E
x
h
i
b
i
ts
and
F
i
n
a
n
c
ia
l
St
a
t
em
e
n
t
S
c
h
e
du
l
e
s
|
P
a
ge
N
o
.
|
|
(a)
Financial Statements – The following financial statements are filed
herewith:
|
||
Report
of Independent Registered Public Accounting Firm
|
50
|
|
Consolidated Balance Sheets
|
51
|
|
Consolidated Statements of Operations
|
52
|
|
Consolidated Statements of Equity
Deficit
|
53
|
|
Consolidated Statements of Cash Flows
|
54
|
|
Notes to Consolidated Financial Statements
|
56
to 75
|
|
(b)
Financial Statements Schedules
|
Schedules – The Following financial statement schedules are filed herewith:
|
|
Schedule II – Valuation and Qualifying Accounts
|
Balance at
|
Charges
|
|||||||||||||||
Beginning of
|
Against
|
Deductions
|
Balance at End
|
|||||||||||||
Year
|
Income
|
from Reserve
|
of Year
|
|||||||||||||
Year
Ended December 31, 2009
|
||||||||||||||||
Accounts Receivable-Allowance
for Bad Debts
|
$ | 12,065 | $ | 32,704 | $ | (31,818 | ) | $ | 12,951 | |||||||
Year
Ended December 31, 2008
|
||||||||||||||||
Accounts Receivable-Allowance
for Bad Debts
|
$ | 11,571 | $ | 30,832 | $ | (30,338 | ) | $ | 12,065 | |||||||
Year
Ended December 31, 2007
|
||||||||||||||||
Accounts Receivable-Allowance
for Bad Debts
|
$ | 8,486 | $ | 27,467 | $ | (24,382 | ) | $ | 11,571 |
E
x
h
i
b
i
t
N
o.
|
D
e
s
crip
t
io
n
o
f
Ex
h
i
b
i
t
|
Incorporated by
R
ef
ere
n
ce
t
o
|
||
2.1
|
Agreement
and Plan of Merger, dated as of July 6, 2006, by and among Primedex,
Radiologix, Radnet Management, Inc. and Merger Sub
|
(E)
|
||
2.2
|
Agreement
and Plan of Merger and Reorganization, dated as of September 3,
2008
|
(M)
|
||
3.1
|
Certificate
of Incorporation of RadNet, Inc., a Delaware corporation
|
(M)
|
||
3.2
|
Certificate
of Amendment to Certificate of Incorporation of RadNet, Inc., a Delaware
corporation, dated September 2, 2008
|
(M)
|
||
3.3
|
Bylaws
|
(M)
|
||
4.1
|
Form
of Common Stock Certificate
|
(G)
|
||
10.1
|
2000
Incentive Stock Option Plan (as amended)*
|
(C)
|
||
10.2
|
2006
Equity Incentive Plan*
|
(E)
|
||
10.3
|
First
Amendment to the 2006 Equity Incentive Plan*
|
(K)
|
||
10.4
|
Form
of Warrant recharacterized as under the 2006 Equity Incentive plan – Form
A
|
(K)
|
||
10.5
|
Form
of Warrant recharacterized as under the 2006 Equity Incentive plan – Form
B
|
(K)
|
||
10.6
|
Form
of Indemnification Agreement between the registrant and each of its
officers and directors*
|
(L)
|
||
10.7
|
Employment
Agreement dated as of June 12, 1992 between RadNet and Howard G. Berger,
M.D.
|
(A)
|
||
and
amendment to agreement.*
|
(D)
|
|||
10.8
|
Employment
Agreement dated April 16, 2001, with Jeffrey L. Linden
|
(B)
|
||
and
amendment to agreement*
|
(D)
|
|||
10.9
|
Employment
Agreement with Norman R. Hames dated May 1, 2001
|
(B)
|
||
and
amendment to agreement*
|
(D)
|
|||
10.10
|
Employment
Agreement with Mark Stolper effective January 1,
2009*
|
(N)
|
||
10.11
|
Retention
Agreement with Stephen Forthuber dated November 15,
2006*
|
(H)
|
||
10.12
|
Amended
and Restated Management and Service Agreement between Radnet Management,
Inc. and Beverly Radiology Medical Group III dated January 1,
2004
|
(C)
|
||
10.14
|
Credit
Agreement, dated as November 15, 2006, among Radnet Management, Inc.,
the Credit Parties designated therein, General Electric Capital
Corporation, as Agent, the lenders described therein, and GE Capital
Markets, Inc.
|
(F)
|
||
10.15
|
Amendment
No. 1 of Existing Credit Agreement with General Electric Capital dated
April 2007.
|
(N)
|
||
10.16
|
Amendment
No. 2 of Existing Credit Agreement with General Electric Capital dated May
2007.
|
(N)
|
||
10.17
|
Amendment
No. 3 of Existing Credit Agreement with General Electric Capital
Corporation dated August 2007.
|
(I)
|
||
10.18
|
Amendment
No. 4 of Existing Credit Agreement with General Electric Capital
Corporation dated November 2007.
|
(N)
|
E
x
h
i
b
i
t
N
o.
|
D
e
s
crip
t
io
n
o
f
Ex
h
i
b
i
t
|
Incorporated by
R
ef
ere
n
ce
t
o
|
||
10.19
|
Amendment
No. 5 of Existing Credit Agreement with General Electric Capital
Corporation dated February 2008.
|
(J)
|
||
10.20
|
Amendment
No. 6 of Existing Credit Agreement with General Electric Capital
Corporation dated April 2008.
|
(N)
|
||
10.21
|
Second
Lien Credit Agreement, dated as of November 15, 2006, among Radnet
Management, Inc., the Credit Parties designated therein, General Electric
Capital Corporation, as Agent, the Lenders described therein, and GE
Capital Markets, Inc.
|
(F)
|
||
10.22
|
Amendment
of Second Lien Credit Agreement with General Electric Capital Corporation
dated May 2007.
|
(N)
|
||
10.23
|
Amendment
of Second Lien Credit Agreement with General Electric Capital Corporation
dated August 2007.
|
(I)
|
||
10.24
|
Amendment
of Second Lien Credit Agreement with General Electric Capital Corporation
dated November 2007.
|
(N)
|
||
10.25
|
Guaranty,
dated as of November 15, 2006, by and among the Guarantors identified
therein and General Electric Capital Corporation.
|
(F)
|
||
10.26
|
Second
Lien Guaranty, dated as of November 15, 2006, by and among the
Guarantors identified therein and General Electric Capital
Corporation.
|
(F)
|
||
10.27
|
Pledge
Agreement, dated as of November 15, 2006, by and among the Pledgors
identified therein and General Electric Capital
Corporation.
|
(F)
|
||
10.28
|
Security
Agreement, dated as of November 15, 2006, by and among the Grantors
identified therein and General Electric Capital
Corporation.
|
(F)
|
||
10.29
|
Second
Lien Security Agreement, dated as of November 15, 2006, by and among
the Grantors identified therein and General Electric Capital
Corporation.
|
(F)
|
||
10.30
|
Commitment
and Term Loan Engagement Letter dated March 12, 2010.
|
(N)
|
||
14
|
Code
of Financial Ethics
|
(C)
|
||
21
|
List
of Subsidiaries
|
(N)
|
||
23.1
|
Consent
of Registered Independent Public Accounting Firm
|
(N)
|
||
24
|
Power
of Attorney
|
(O)
|
||
31.1
|
CEO
Certification pursuant to Section 302
|
(N)
|
||
31.2
|
CFO
Certification pursuant to Section 302
|
(N)
|
||
32.1
|
CEO
Certification pursuant to Section 906
|
(N)
|
||
32.2
|
CFO
Certification pursuant to Section 906
|
(N)
|
(A)
|
Incorporated
by reference to exhibit filed in an amendment to Form 8-K report for June
12, 1992.
|
(B)
|
Incorporated
by reference to exhibit filed with the Form 10-K for the year ended
October 31, 2001.
|
(C)
|
Incorporated
by reference to exhibit filed with the Form 10-K for the year ended
October 31, 2003.
|
(D)
|
Incorporated
by reference to exhibit filed with the Form 10-Q for the quarter ended
January 31, 2004.
|
(E)
|
Incorporated
by reference to exhibit filed with Registrant’s Registration Statement on
Form S-4 (File No. 333-136800).
|
(F)
|
Incorporated
by reference to exhibit filed with Form 8-K for November 21,
2006.
|
(G)
|
Incorporated
by reference to exhibit filed with Form 10-K for October 31,
2006.
|
(H)
|
Incorporated
by reference to exhibit filed with Form 10-K/T for December 31,
2006.
|
(I)
|
Incorporated
by reference to exhibit filed with Form 8-K for August 24,
2007.
|
(J)
|
Incorporated
by reference to exhibit filed in an amendment to Form 10-K for
December 31, 2007.
|
(K)
|
Incorporated
by reference to exhibit filed with Form 10-Q for the quarter ended June
30, 2008.
|
(L)
|
Incorporated
by reference to exhibit filed with Form 10-Q for the quarter ended March
31, 2008.
|
(M)
|
Incorporated
by reference to exhibit filed with Form 8-K for September 4,
2008.
|
(N)
|
Filed
herewith.
|
(O)
|
Included
on signature page.
|
RADNET,
INC.
|
|||
Date: March
15, 2010
|
/
s/ H
O
WARD
G
.
B
ER
G
ER
,
M.D
.
|
||
Howard
G. Berger, M.D., President,
|
|||
Chief
Executive Officer and Director
|
By
|
/
s/
H
O
WARD
G
.
B
ER
G
ER
,
M.D
.
|
Howard
G. Berger, M.D., Director, Chief Executive Officer and
President
|
|
Date: March
15, 2010
|
|
By
|
/s/
MARVIN
S. CADWELL
|
Marvin
S. Cadwell, Director
|
|
Date: March
15, 2010
|
|
By
|
/s/
J
O
HN
V.
CRUES, III, M.D.
|
John
V. Crues, III, M.D., Director
|
|
Date: March
15, 2010
|
|
By
|
/s/
N
O
RMAN
R. HAMES
|
Norman
R. Hames, Director
|
|
Date: March
15, 2010
|
|
By
|
/s/
DAVID
L. SWARTZ
|
David
L. Swartz,
Director
|
Date: March
15, 2010
|
|
By
|
/s/
LAWRENCE
L. LEVITT
|
Lawrence
L. Levitt, Director
|
|
Date: March
15, 2010
|
|
By
|
/s/
MICHAEL
L. SHERMAN,
M.D.
|
Michael
L. Sherman, M.D., Director
|
|
Date: March
15, 2010
|
|
By
|
/s/
MARK
D. STOLPER
|
Mark D. Stolper,
Chief Financial Officer
(Principal Accounting Officer)
|
|
Date: March
15,
2010
|
COMPANY: |
EMPLOYEE:
|
||
RADNET MANAGEMENT, INC. | |||
By: |
/s/ Howard G. Berger, M.D.
|
/s/ Mark D. Stolper
|
|
Howard
G. Berger, M.D., President
|
Mark
D. Stolper
|
RADNET
MANAGEMENT, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
PRIMEDEX
HEALTH SYSTEMS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
BEVERLY
RADIOLOGY MEDICAL GROUP
III
|
|
By:
ProNet Imaging Medical Group, Inc., its
general
partner
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
By:
Beverly Radiology Medical Group, Inc., its
general
partner
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
PRONET
IMAGING MEDICAL GROUP, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
BEVERLY
RADIOLOGY MEDICAL GROUP,
INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
RADNET
SUB, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
SO
CAL MR SITE MANAGEMENT, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
RADNET
MANAGEMENT I, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
RADNET
MANAGEMENT II, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
RADNET
MANAGED IMAGING
SERVICES,
INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
DIAGNOSTIC
IMAGING SERVICES, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
Chief
Financial
Officer
|
RADIOLOGIX,
INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
ADVANCED
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
IDE
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
MID
ROCKLAND IMAGING PARTNERS,
INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
PACIFIC
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
QUESTAR
IMAGING, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
TREASURE
COAST IMAGING PARTNERS,
INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
COMMUNITY
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
RADIOLOGY
AND NUCLEAR MEDICINE
IMAGING
PARTNERS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
VALLEY
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
QUESTAR
DULUTH, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
QUESTAR
LOS ALAMITOS, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
QUESTAR
VICTORVILLE, INC.
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
ROCKY
MOUNTAIN OPENSCAN MRI, LLC
|
|
By:
|
/s/
Howard
G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
FRI,
INC.
|
|
By:
|
/s/ Howard G. Berger
|
Name:
|
Howard
G. Berger, M.D.
|
Title:
|
President
|
GENERAL
ELECTRIC CAPITAL
CORPORATION,
|
|
as
Agent and a Lender
|
|
By:
|
/s/ GENERAL ELECTRIC CAPITAL
CORPORATION
|
Duly
Authorized Signatory
|
[INSERT NAME OF LENDER],
as a Lender
|
|
By:
|
|
Name:
|
|
Title:
|
RADNET
MANAGEMENT, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
PRIMEDEX
HEALTH SYSTEMS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
BEVERLY
RADIOLOGY MEDICAL GROUP
III |
|||
By:
ProNet Imaging Medical Group, Inc., its
general
partner
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
By:
Beverly Radiology Medical Group, Inc., its
general
partner
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
PRONET
IMAGING MEDICAL GROUP, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
BEVERLY
RADIOLOGY MEDICAL GROUP,
INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
RADNET
SUB, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
SO
CAL MR SITE MANAGEMENT, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
RADNET
MANAGEMENT I, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
RADNET
MANAGEMENT II, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
RADNET
MANAGED IMAGING
SERVICES,
INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
DIAGNOSTIC
IMAGING SERVICES, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
Chief Financial
Officer
|
|||
RADIOLOGIX,
INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
ADVANCED
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
IDE
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
MID
ROCKLAND IMAGING PARTNERS,
INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
PACIFIC
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
QUESTAR
IMAGING, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
TREASURE
COAST IMAGING PARTNERS,
INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
COMMUNITY
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
RADIOLOGY
AND NUCLEAR MEDICINE
IMAGING
PARTNERS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
VALLEY
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
QUESTAR
DULUTH, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
QUESTAR
LOS ALAMITOS, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
QUESTAR
VICTORVILLE, INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
ROCKY
MOUNTAIN OPENSCAN MRI, LLC
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
|||
FRI,
INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger,
M.D.
|
|||
Title:
President
|
GENERAL
ELECTRIC CAPITAL
CORPORATION,
|
||
as
Agent and a Lender
|
||
By:
|
/s/
GENERAL ELECTRIC CAPITAL CORPORATION
|
|
Duly
Authorized Signatory
|
[
INSERT NAME OF
LENDER
]
, as a
Lender
|
||
By:
|
||
Name:
|
||
Title:
|
RADNET
MANAGEMENT, INC.
|
|
By:
|
/s/ Howard G. Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
RADNET,
INC.
|
|
By:
|
/s/ Howard G. Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
BEVERLY
RADIOLOGY MEDICAL GROUP
III
|
|
By:
ProNet Imaging Medical Group, Inc., its
general
partner
|
|
By:
|
/s/
Howard G. Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
By:
Beverly Radiology Medical Group, Inc., its
general
partner
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
PRONET
IMAGING MEDICAL GROUP, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
BEVERLY
RADIOLOGY MEDICAL GROUP,
INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
RADNET
SUB, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
SO
CAL MR SITE MANAGEMENT, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
RADNET
MANAGEMENT I, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
RADNET
MANAGEMENT II, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
RADNET
MANAGED IMAGING
SERVICES,
INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
DIAGNOSTIC
IMAGING SERVICES, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
Chief
Financial Officer
|
RADIOLOGIX,
INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
ADVANCED
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
IDE
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
MID
ROCKLAND IMAGING PARTNERS,
INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
PACIFIC
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
QUESTAR
IMAGING, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
TREASURE
COAST IMAGING PARTNERS,
INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
COMMUNITY
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
RADIOLOGY
AND NUCLEAR MEDICINE
IMAGING
PARTNERS, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
VALLEY
IMAGING PARTNERS, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
QUESTAR
DULUTH, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
QUESTAR
LOS ALAMITOS, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
QUESTAR
VICTORVILLE, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
ROCKY
MOUNTAIN OPENSCAN MRI, LLC
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
FRI,
INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
FRI
II, INC.
|
|
By:
|
/s/
Howard G.
Berger
|
Name:
|
Howard G. Berger, M.D. |
Title:
|
President |
GENERAL
ELECTRIC CAPITAL
CORPORATION,
|
|
as
Agent and a Lender
|
|
By:
|
/s/
General Electric Capital Corporation
|
Duly
Authorized Signatory
|
[INSERT NAME OF LENDER],
as a Lender
|
|
By:
|
|
Name:
|
|
Title:
|
RADNET
MANAGEMENT, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
PRIMEDEX
HEALTH SYSTEMS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
BEVERLY
RADIOLOGY MEDICAL GROUP
III |
|||
By:
ProNet Imaging Medical Group, Inc., its
general partner |
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
By:
Beverly Radiology Medical Group, Inc., its
general partner |
|||
By: |
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
PRONET
IMAGING MEDICAL GROUP, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
BEVERLY
RADIOLOGY MEDICAL GROUP,
INC. |
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
RADNET
SUB, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
SO
CAL MR SITE MANAGEMENT, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
RADNET
MANAGEMENT I, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
RADNET
MANAGEMENT II, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
RADNET
MANAGED IMAGING
SERVICES, INC. |
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
DIAGNOSTIC
IMAGING SERVICES, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
Chief Financial
Officer
|
|||
RADIOLOGIX,
INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
ADVANCED
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
IDE
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
MID
ROCKLAND IMAGING PARTNERS,
INC. |
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
PACIFIC
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
QUESTAR
IMAGING, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
TREASURE
COAST IMAGING PARTNERS,
INC. |
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
COMMUNITY IMAGING
PARTNERS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
RADIOLOGY
AND NUCLEAR MEDICINE
|
|||
IMAGING
PARTNERS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
VALLEY
IMAGING PARTNERS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
QUESTAR
DULUTH, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
QUESTAR
LOS ALAMITOS, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
QUESTAR
VICTORVILLE, INC.
|
|||
By:
|
/s/ Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
ROCKY
MOUNTAIN OPENSCAN MRI, LLC
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
|||
FRI,
INC.
|
|||
By:
|
/s/
Howard G. Berger
|
||
Name:
Howard
G. Berger, M.D.
|
|||
Title:
President
|
GENERAL
ELECTRIC CAPITAL
CORPORATION, |
|||
as Agent | |||
By:
|
/s/ General Electric Capital Corporation | ||
Duly
Authorized Signatory
|
[INSERT
NAME OF LENDER],
as a
Lender
|
|||
By:
|
|
||
Name: | |||
Title: |
RADNET
MANAGEMENT, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
RADNET,
INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
BEVERLY
RADIOLOGY MEDICAL GROUP III
|
||
By:
ProNet Imaging Medical Group, Inc., its general partner
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
By:
Beverly Radiology Medical Group, Inc., its general
partner
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
PRONET
IMAGING MEDICAL GROUP, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
BEVERLY
RADIOLOGY MEDICAL GROUP, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
RADNET
SUB, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
SO
CAL MR SITE MANAGEMENT, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
RADNET
MANAGEMENT I, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
RADNET
MANAGEMENT II, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
RADNET
MANAGED IMAGING
|
||
SERVICES,
INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
DIAGNOSTIC
IMAGING SERVICES, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
RADIOLOGIX,
INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
ADVANCED
IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
IDE
IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
MID
ROCKLAND IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
PACIFIC
IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
QUESTAR
IMAGING, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
TREASURE
COAST IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
COMMUNITY
IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
RADIOLOGY
AND NUCLEAR MEDICINE IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
VALLEY
IMAGING PARTNERS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
QUESTAR
DULUTH, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
QUESTAR
LOS ALAMITOS, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
QUESTAR
VICTORVILLE, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
ROCKY
MOUNTAIN OPENSCAN MRI, LLC
|
||
By:
|
||
Name:
|
||
Title:
|
FRI,
INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
|
FRI
II, INC.
|
||
By:
|
/s/
Howard G. Berger
|
|
Name:
|
Howard
G. Berger, M.D.
|
|
Title:
|
President
|
GENERAL
ELECTRIC CAPITAL
|
||
CORPORATION,
|
||
as
Agent and a Lender
|
||
By:
|
/s/
General Electric Capital Corporation
|
|
Duly
Authorized Signatory
|
[INSERT
NAME OF LENDER], as a Lender
|
||
By:
|
||
Name:
|
||
Title:
|
|
·
|
$275.0
million under a senior secured first lien term loan facility (the “
Term Facility
”)
having the terms set forth in
Exhibit A;
|
|
·
|
$100.0 million
under a senior secured first lien revolving credit facility (the “
Revolving
Facility
” and, together with the Term Facility, the “
Credit
Facilities
”) having the terms set forth in Exhibit A;
and
|
|
·
|
the
issuance by the Borrower of $210.0 million of unsecured senior notes
(the “
Notes
”)
pursuant to a registered public offering or Rule 144A or other
private placement (the “
Notes
Offering
”).
|
1.
|
Commitments and Agency
Roles
|
2.
|
Conditions
Precedent
|
3.
|
Syndication
|
4.
|
Information
|
5.
|
Indemnification
|
6.
|
Assignments
|
7.
|
USA PATRIOT Act
Notification
|
8.
|
Sharing Information;
Affiliate Activities; Absence of Fiduciary
Relationship
|
9.
|
Waiver of Jury Trial;
Governing Law; Submission to Jurisdiction; Surviving
Provisions
|
10.
|
Termination;
Acceptance
|
Very
truly yours,
|
||
BARCLAYS
BANK PLC
|
||
By:
|
/s/
BARCLAYS
BANK PLC
|
|
Name:
|
||
Title:
|
DEUTSCHE
BANK SECURITIES INC.
|
||
By:
|
/s/
DEUTSCHE BANK SECURITIES INC.
|
|
Name:
|
||
Title:
|
||
By:
|
/s/
DEUTSCHE BANK SECURITIES INC.
|
|
Name:
|
||
Title:
|
||
DEUTSCHE
BANK TRUST COMPANY AMERICAS
|
||
By:
|
/s/
DEUTSCHE BANK TRUST COMPANY AMERICAS
|
|
Name:
|
||
Title:
|
||
By:
|
/s/
DEUTSCHE BANK TRUST COMPANY AMERICAS
|
|
Name:
|
||
Title:
|
GENERAL
ELECTRIC CAPITAL CORPORATION
|
||
By:
|
/s/
GENERAL ELECTRIC CAPITAL CORPORATION
|
|
Name:
|
||
Title:
|
||
GE
CAPITAL MARKETS, INC.
|
||
By:
|
/s/
GE CAPITAL MARKETS, INC.
|
|
Name:
|
||
Title:
|
ROYAL
BANK OF CANADA
|
||
By:
|
/s/
Gordon MacArthur
|
|
Name:
Gordon MacArthur
|
||
Title:
Authorized Signatory
|
JEFFERIES
FINANCE LLC
|
||
By:
|
/s/
JEFFERIES FINANCE LLC
|
|
Name:
|
||
Title:
|
RADNET
MANAGEMENT, INC.
|
||
By:
|
/s/
Howard
G. Berger.
|
|
Name:
Howard
G. Berger, M.D.
|
||
Title:
President
|
||
RADNET,
INC.
|
||
By:
|
/s/
Howard
G. Berger.
|
|
Name:
Howard
G. Berger, M.D.
|
||
Title:
President
|
Registrant’s
Su
b
s
i
d
iarie
s
|
Percentage
O
w
n
er
s
hip
|
State of
I
n
c
o
r
p
ora
t
i
on
|
||
Radnet
Management, Inc.
|
100%
|
California
|
||
Radnet
Managed Imaging Services, Inc.
|
100%
|
California
|
||
Radnet
Management I, Inc.
|
100%
|
California
|
||
Radnet
Management II, Inc.
|
100%
|
California
|
||
Radnet
Sub, Inc.
|
100%
|
California
|
||
FRI
II, Inc.
|
100%
|
California
|
||
FRI,
Inc.
|
100%
|
California
|
||
Pacific
Imaging Partners, Inc.
|
100%
|
California
|
||
Rolling
Oaks Imaging Corporation
|
100%
|
California
|
||
Rolling
Oaks Radiology, Inc.
|
100%
|
California
|
||
SoCal
MR Site Management, Inc.
|
100%
|
California
|
||
Valley
Imaging Partners Inc.
|
100%
|
California
|
||
Advanced
Imaging Partners, Inc.
|
100%
|
Delaware
|
||
Community
Imaging Partners, Inc.
|
100%
|
Delaware
|
||
Delaware
Imaging Partners, Inc.
|
100%
|
Delaware
|
||
Diagnostic
Imaging Services, Inc.
|
100%
|
Delaware
|
||
Ide
Imaging Partners, Inc.
|
100%
|
Delaware
|
||
Mid
Rockland Imaging Partners, Inc.
|
100%
|
Delaware
|
||
Radiologix,
Inc.
|
100%
|
Delaware
|
||
Radiology
and Nuclear Medicine Imaging Partners, Inc.
|
100%
|
Delaware
|
||
Treasure
Coast Imaging Partners, Inc.
|
100%
|
Delaware
|
||
Questar
Imaging, Inc.
|
100%
|
Florida
|
||
Questar
Los Alamitos,Inc.
|
100%
|
Florida
|
||
Questar
Victorville, Inc.
|
100%
|
Florida
|
||
New
Jersey Imaging Partners, Inc.
|
|
100%
|
|
New
Jersey
|
/
s
/ Ernst & Young
L
L
P
|
|||
Los
Angeles, California
|
|||
March
15, 2010
|
a.
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b.
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c.
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d.
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
a.
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
b.
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
/s
/
|
Howard G. Berger, M.D.
|
||
Howard
G. Berger, M.D.
|
|||
President,
Chief Executive Officer and Chairman of the Board of
Directors
|
|
a.
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
b.
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c.
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d.
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
a.
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
b.
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
/s/
|
Mark
D. Stolper
|
||
Mark
D. Stolper
|
|||
Executive
Vice President
|
|||
and
Chief Financial Officer
|
/s/
|
Howard G. Berger, M.D.
|
||
Howard
G. Berger, M.D.
|
|||
Chairman,
President and Chief Executive Officer
|
|||
(Principal
Executive Officer)
|
|||
March
15, 2010
|
/s/
|
Mark D. Stolper
|
||
Mark
D. Stolper
|
|||
Chief
Financial Officer
|
|||
(Principal
Financial Officer)
|
|||
March
15, 2010
|