Company News: Page (1) of 1 - 08/01/14 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook

Digirad Corporation Reports Financial Results for Second Quarter and First Six Months of 2014

(August 01, 2014)



  • Year over year revenue growth of 13% for both periods


  • Adjusted net income improved by more than $1.0 million and $2.7 million, respectively


  • Announces financial guidance for 2014


  • Announces a regular quarterly cash dividend of $0.05 cents per share


SUWANEE, Ga., Aug. 1, 2014 (GLOBE NEWSWIRE) -- Digirad Corporation (Nasdaq:DRAD) today reported its financial results for the second quarter and first six months ended June 30, 2014.



Total revenues for the 2014 second quarter were $14.6 million, an increase of 13 percent compared to the prior year's second quarter revenue of $12.9 million. GAAP net income, which included $0.1 million of restructuring costs associated with its previously announced lease termination, was $0.8 million, or $0.04 per diluted share, compared to a GAAP net loss of $0.6 million, or $0.03 loss per diluted share in the prior year quarter.



Total revenues for the first six months of 2014 were up 13 percent year over year to $27.6 million. Net income for the first six months of 2014 was $0.7 million, or $0.04 per diluted share. Total revenues in the first six months of 2013 were $24.4 million with a net loss of $3.0 million, or a loss of $0.16 per diluted share.


Digirad President and CEO Matt Molchan said, "We have had an outstanding year so far in 2014. Our revenues once again increased this quarter, and also for the first six months, on a year over year basis, showing that our new strategic direction is definitely gaining hold. Excluding the impact of our recent Telerhythmics acquisition, revenues in our Diagnostic Services business increased 6 percent during the second quarter, showing we are growing both organically as well as from our acquisitions. Our Diagnostic Imaging business revenue was down slightly for the quarter, as we can be affected by timing and volume of cameras sold in each quarterly period, but overall, we had a great quarter and six months and we continue to be on track to grow our Diagnostic Services business."




"I am also very pleased to announce that the integration of our recent Telerhythmics acquisition is going well and as planned. We are working hard and fast to get the business fully integrated within all our sales programs and operations, as well as the back office activities. This process will take some time as we previously announced, but once complete, we believe Telerhythmics will be poised for outstanding growth."



The Company's cash, cash equivalents and available-for-sale securities balance at June 30, 2014 was $21.4 million, an increase from the March 31, 2014 balance of $19.4 million. This increase reflects cash flow generation of the business and positive working capital changes totaling $2.9 million, partially offset by payment of cash dividends of $0.9 million.



Excluding the $0.1 million restructuring charge for the lease termination and $0.1 million of acquired intangible amortization, adjusted net income for the second quarter of 2014 was $1.1 million, or $0.06 adjusted net income per diluted share. Excluding the $0.6 million of restructuring charges and $0.1 million of acquired intangible amortization recorded in the 2013 second quarter, the adjusted results were essentially break even.



Adjusted EBITDA for the second quarter of 2014 was $1.5 million, compared to adjusted EBITDA of $0.6 million for the same period of the prior year. The current restructuring charges are related to the previously announced lease termination in Poway, CA, a move that the Company believes will save between $400,000 and $500,000 annually once the transition is complete. A reconciliation of adjusted net income and adjusted EBITDA to net income is provided later in this release.



The Company also announced a cash dividend of $0.05 cents per share that will be paid on August 25, 2014, to shareholders of record on August 12, 2014.



2014 Six-Month Financial Highlights



Net income in the first six months of 2014 improved year over year from the loss in the first six months of 2013 by more than $3.7 million, or $0.20 per diluted share.



Adjusted net income for the first six months of 2014 was $1.4 million, or an adjusted $0.08 per diluted share, which was a year-over-year improvement of more than $2.7 million, or an adjusted $0.15 per diluted share.



Adjusted EBITDA for the first six months of this year was $2.3 million compared to an adjusted EBITDA loss of $0.2 million in the first six months of 2013.



2014 Financial Guidance



For fiscal year 2014, the Company expects to generate revenues between $53.5 million and $55.0 million; non-GAAP adjusted diluted earnings per share between $0.13 and $0.15; and non-GAAP adjusted EBITDA between $4.5 million and $5.0 million. In fiscal year 2013, the Company generated $49.4 million of revenue, non-GAAP adjusted diluted earnings per share of $0.03 and non-GAAP adjusted EBITDA of $2.6 million.



The Company's non-GAAP financial measure adjusted diluted earnings per share excludes restructuring charges and acquired intangible asset amortization. Adjusted EBITDA further excludes stock-based compensation expense.



Conference Call Information



A conference call is scheduled for 11:00 a.m. EDT today to discuss the results and management's outlook. The call may be accessed by dialing 877-407-9039 five minutes prior to the scheduled start time and referencing Digirad. A simultaneous webcast of the call may be accessed online from the Events & Presentations link on the Investor Relations page at www.digirad.com; an archived replay of the webcast will be available within 15 minutes of the end of the conference call.



Use of Non-GAAP Financial Measures by Digirad Corporation



This Digirad news release presents the non-GAAP financial measures "adjusted operating expenses," "adjusted net income (loss)", "adjusted net income (loss) per diluted share" and "adjusted EBITDA". The most directly comparable measure for these non-GAAP financial measures are operating expenses, net income (loss) and diluted net income (loss) per share. The Company has included below unaudited adjusted financial information, which present the Company's results of operations after excluding restructuring charges, purchase intangible asset amortization, and gain on the sale of assets and license agreement, and in the measure of adjusted EBITDA, interest, taxes, depreciation, amortization and stock-based compensation.



A discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information to investors regarding Digirad's financial condition and results of operations is included as Exhibit 99.2 to Digirad's report on Form 8-K filed with the Securities and Exchange Commission on August 1, 2014.



About Digirad Corporation



Digirad delivers convenient, effective, and efficient diagnostic solutions on an as needed, when needed, and where needed basis. Digirad is one of the largest national providers of in-office nuclear cardiology and ultrasound imaging services, and also provides cardiac event monitoring services. These services are provided to physician practices, hospitals and imaging centers through its Diagnostic Services business. Digirad also sells medical diagnostic imaging systems, including solid-state gamma cameras, for nuclear cardiology and general nuclear medicine applications, as well as provides service on the products sold through its Diagnostic Imaging business. For more information, please visit www.digirad.com. Digirad® and Cardius® are registered trademarks of Digirad Corporation.



Forward-Looking Statements



This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seek," "approximately," "intends," "plans," "estimates," or "anticipates," or the negative of those words or other comparable terminology, or in specific statements such as the Company's ability to deliver value to customers, the ability to grow and generate positive cash flow, the ability to execute on restructuring activities, and ability to successfully execute acquisitions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These risks are detailed in Digirad's filings with the U.S. Securities and Exchange Commission, including the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports. Readers are cautioned to not place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Digirad undertakes no obligation to revise or update the forward-looking statements contained herein.



(Financial tables follow)
























































































































































































































































































































Digirad Corporation

Condensed Consolidated Statements of Income (Loss)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

(in thousands, except per share amounts)

2014

2013

2014

2013

 

 

 

 

 

Revenues:

 

 

 

 

Diagnostic Services

$ 11,340

$ 9,475

$ 20,895

$ 18,414

Diagnostic Imaging

3,247

3,415

6,689

6,022

Total revenues

14,587

12,890

27,584

24,436

Cost of revenues:

 

 

 

 

Diagnostic Services

8,204

7,179

15,738

14,004

Diagnostic Imaging

1,878

1,918

3,899

3,822

Total cost of revenues

10,082

9,097

19,637

17,826

 

 

 

 

 

Gross profit

4,505

3,793

7,947

6,610

Total gross profit percentage

30.9%

29.4%

28.8%

27.1%

Diagnostic Services gross profit percentage

27.7%

24.2%

24.7%

23.9%

Diagnostic Imaging gross profit percentage

42.2%

43.8%

41.7%

36.5%

 

 

 

 

 

Operating expenses:

 

 

 

 

Research and development


177


996

Marketing and sales

1,245

1,009

2,340

2,245

General and administrative

2,193

2,571

4,188

4,673

Amortization of intangible assets

104

58

170

123

Restructuring charges

138

610

579

1,614

Total operating expenses

3,680

4,425

7,277

9,651

 

 

 

 

 

Income (loss) from operations

825

(632)

670

(3,041)

 

 

 

 

 

Other income (expense):

 

 

 

 

Interest and other income, net

15

16

32

39

Interest expense

(9)

(4)

(17)

(5)

Total other income

6

12

15

34

 

 

 

 

 

Income (loss) before income taxes

831

(620)

685

(3,007)

Income tax benefit (expense)

(8)

4

(10)

(28)

Net income (loss)

$ 823

 $ (616)

$ 675

$ (3,035)

 

 

 

 

 

Net income (loss) per share – basic

$ 0.04

$ (0.03)

$ 0.04

$ (0.16)

Net income (loss) per share – diluted

$ 0.04

$ (0.03)

$ 0.04

$ (0.16)

 

 

 

 

 

Weighted average shares outstanding – basic

18,554

19,032

18,536

19,177

Weighted average shares outstanding – diluted

18,839

19,032

18,831

19,177


















































































































































































































 

 

Digirad Corporation

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

 

June 30,

December 31,

(in thousands, except share data)

2014

2013

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$ 11,579

$ 18,744

Securities available-for-sale

9,825

7,673

Accounts receivable, net

6,219

5,430

Inventories, net

3,495

3,881

Other current assets

422

697

Restricted cash

477

244

Total current assets

32,017

36,669

 

 

 

Property and equipment, net

4,586

4,153

Intangible assets, net

2,763

353

Goodwill

1,337

184

Other assets

72

92

Total assets

$ 40,775

$ 41,451

 

 

 

Liabilities and stockholders' equity

 

 

Accounts payable

$ 1,478

$ 611

Accrued compensation

2,555

3,472

Accrued warranty

155

137

Deferred revenue

1,478

1,631

Other accrued liabilities

1,868

1,774

Total current liabilities

7,534

7,625

Other liabilities

774

440

Total liabilities

8,308

8,065

 

 

 

Stockholders' equity:

 

 

Preferred stock



Common stock

2

2

Treasury stock

(5,728)

(5,728)

Additional paid-in capital

155,384

156,968

Accumulated other comprehensive loss

(12)

(2)

Accumulated deficit

(117,179)

(117,854)

Total stockholders' equity

32,467

33,386

Total liabilities and stockholders' equity

$ 40,775

$ 41,451


















































































































































































































































































 

 

Digirad Corporation

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

 

 

 

 

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

(in thousands, except per share amounts)

2014

2013

2014

2013

 

 

 

 

 

Total operating expenses

$ 3,680

$ 4,425

$ 7,277

$ 9,651

Restructuring charges(1)

(138)

(610)

(579)

(1,614)

Non-GAAP Adjusted operating expenses

$ 3,542

$ 3,815

$ 6,698

$ 8,037

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$ 823

$ (616)

$ 675

$ (3,035)

Restructuring charges(1)

138

610

579

1,614

Acquired intangible amortization

102

55

165

118

Income tax items(2)

(2)


(6)


Non-GAAP Adjusted net income (loss)

$ 1,061

$ 49

$ 1,413

$ (1,303)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - diluted

$ 0.04

$ (0.03)

$ 0.04

$ (0.16)

Restructuring charges(1)(3)

0.01

0.03

0.03

0.09

Acquired intangible amortization(3)

0.01


0.01

0.01

Income tax items(2)(3)





Non-GAAP Adjusted net income (loss) per share – diluted(3)

$ 0.06

$ —

$ 0.08

 $ (0.07)

 

 

 

 

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

(in thousands)

2014

2013

2014

2013

 

 

 

 

 

Net income (loss)

$ 823

$ (616)

$ 675

$ (3,035)

Restructuring charges(1)

138

610

579

1,614

Depreciation and amortization

485

479

938

972

Stock-based compensation

61

105

111

226

Interest and other income, net

(15)

(16)

(32)

(39)

Interest expense

9

4

17

5

Income tax expense (benefit)

8

(4)

10

28

Non-GAAP Adjusted EBITDA

$ 1,509

$ 562

$ 2,298

$ (229)

 

 

 

 

 

 

 

 

 

 

(1) Reflects nonrecurring charges primarily related to restructuring of the Diagnostic Imaging reporting segment and lease termination of the Poway, CA facility.

(2)  Reflects income tax effect for adjusted financial data.

 

 

 

 

(3)  Per share amounts are computed independently for each discrete item presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal to the total for the year, and sum of individual items may not equal the total.








































































































































































































































































































































 

 

Digirad Corporation

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

(in thousands, except per share amounts)

June 30,

2013

September 30,

2013

December 31,

2013

March 31,

2014

June 30,

2014

 

 

 

 

 

 

Total operating expenses

$ 4,425

$ 1,386

$ 2,908

$ 3,597

$ 3,680

Restructuring charges(1)

(610)

(79)

(35)

(441)

(138)

Gain on sale of assets and license agreement(2)


1,568




Non-GAAP Adjusted operating expenses

$ 3,815

$ 2,875

$ 2,873

$ 3,156

$ 3,542

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$ (616)

$ 2,512

$ 787

$ (148)

$ 823

Restructuring charges(1)

610

79

35

441

138

Gain on sale of assets and license agreement(2)


(1,568)




Acquired intangible amortization

55

 51

 51

64

102

Income tax items(3)




(4)

(2)

Non-GAAP Adjusted net income (loss)

$ 49

$ 1,074

$ 873

$ 353

$ 1,061

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share – diluted(4)

$ (0.03)

$ 0.14

$ 0.04

$ (0.01)

$ 0.04

Restructuring charges(1)(4)

0.03



0.02

0.01

Gain on sale of assets and license agreement(2)(4)


(0.08)




Acquired intangible amortization





0.01

Income tax items(3)(4)






Non-GAAP Adjusted net income per share - diluted(4)

$ —

$ 0.06

$ 0.05

$ 0.02

$ 0.06

 

 

 

 

 

 

 

Three Months Ended

(in thousands)

June 30,

2013

September 30,

2013

December 31,

2013

March 31,

2014

June 30,

2014

 

 

 

 

 

 

Net income (loss)

$ (616)

$ 2,512

$ 787

$ (148)

$ 823

Restructuring charges(1)

610

79

35

441

138

Gain on sale of assets and license agreement(2)


(1,568)




Depreciation and Amortization

479

475

466

453

485

Stock-based Compensation

105

74

40

50

61

Interest and other income, net

(16)

(13)

(11)

(17)

(15)

Interest expense

4

5

5

8

9

Income tax benefit (expense)

(4)

(72)

(1)

2

8

Non-GAAP Adjusted EBITDA

$ 562

$ 1,492

$ 1,321

$ 789

$ 1,509

 

 

 

 

 

 

(1) Reflects nonrecurring charges primarily related to restructuring of the Diagnostic Imaging reporting segment and lease termination of the Poway, CA facility.

(2) Reflects a nonrecurring gain related to the sale of assets associated with an uncommercialized surgical imaging system, and the licensing of certain existing Company technology.

(3)  Reflects income tax effect for adjusted financial data.

(4)  Per share amounts are computed independently for each discrete item presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal to the total for the year, and sum of individual items may not equal the total.




































 

 

Digirad Corporation

2014 Financial Guidance

 

(in thousands, except per share amounts)

 

Revenue

$53,500 - $55,000

Adjusted diluted earnings per share(1)

$0.13 - $0.15

Adjusted EBITDA(1)

$4,500 - $5,000











 

(1) Adjusted diluted earnings per share and adjusted EBITDA are non-GAAP financial measures. The non-GAAP financial measure adjusted diluted earnings per share excludes restructuring charges and acquired intangible asset amortization. Adjusted EBITDA further excludes stock-based compensation expense.

CONTACT: Jeffry Keyes
Chief Financial Officer
858-726-1600
ir@digirad.com



Digirad Corporation Logo


Page: 1


Related Keywords: EARNINGS, MEDICALPro AV, Post/Production, Management, Presentors, Management, Business, Business Issues, Internet Media, Presentation, Events, webcast, USA, Medicine, Technology, Surgery, Medication, Physician, Science, Medical Technology, Medical, Business, Other, Medical Professionals,


DMO TEXT LINKS
(Click here to place a textlink on this site)

Get 10 days of free unlimited access to lynda.com.
What do you want to learn today? Online video tutorials to help you learn software, creative, and business skills.
Click Here!


500 GB hard drives
ThinkCentre M93z 10AF000FUS All-in-One Computer - Intel Core i3 i3-4130 3.4GHz - Desktop - Business Black (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4400 - Windows 7 Professional 64-bit - 23" Display - Wireless LAN - Bluetooth)
By Lenovo, start from $ 918.28
ThinkCentre M73z 10BC000DUS All-in-One Computer - Intel Core i3 i3-4130 3.4GHz - Desktop - Business Black (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4400 - Windows 7 Professional 64-bit - 20" Display - Wireless LAN - Bluetooth)
By Lenovo, start from $ 694.99
Edge E540 20C6008QUS 15.6" LED Notebook - Intel - Core i7 i7-4702MQ 2.2GHz - Matte Black - Silver (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4600 - Windows 7 Professional 64-bit - 1366 x 768 Display - Bluetooth)
By Lenovo, start from $ 679.99
ThinkCentre M93p Small Form Factor Desktop (2.9 GHz Intel Core i5-4570T, 4 GB DDR3, 500 GB HDD, Intel HD Graphics 4600, Windows 7 Professional)
By Lenovo, start from $ 559.99
ThinkCentre M93p 10A7000BUS Desktop Computer - Intel Core i5 i5-4570 3.20 GHz - Mini-tower - Business Black (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4600 - Windows 7 Professional 64-bit)
By Lenovo, start from $ 699.88
X140e 20BL000BUS 11.6" LED Notebook - AMD - A-Series A4-5000 1.5GHz - Midnight Black (4 GB RAM - 500 GB HDD - AMD Radeon HD 8330 - Windows 7 Professional 64-bit - 1366 x 768 Display - Bluetooth)
By Lenovo, start from $ 389.99
HOT THREADS on DMN Forums
Content-type: text/html  Rss  Add to Google Reader or
Homepage    Add to My AOL  Add to Excite MIX  Subscribe in
NewsGator Online 
Real-Time - what users are saying - Right Now!

@ Copyright, 2014 Digital Media Online, All Rights Reserved