Digirad Corporation (Nasdaq: DRAD) reported today its financial
results for the fourth quarter and twelve months ended
December 31, 2018.
Total revenues from continuing operations for
the fourth quarter were $25.9 million, compared to $26.3 million in
the fourth quarter of the prior year.
Net loss from continuing operations for the
fourth quarter was $0.9 million, or $0.05 net loss per diluted
share, compared to net loss from continuing operations of $22.6
million or $1.13 net loss per diluted share in the same period in
the prior year. Non-GAAP adjusted net loss from continuing
operations for the fourth quarter was $1.2 million, or $0.06 per
diluted share, compared to adjusted net loss of $1.4 million, or
$0.07 per diluted share in the same period in the prior year.
Operating cash flow for the fourth quarter was
$2.8 million, compared to $2.0 million for the same period in the
prior year. Non-GAAP adjusted EBITDA from continuing operations for
the fourth quarter was $0.8 million, compared to $0.8 million in
the same period in the prior year. Non-GAAP free cash flow was $2.9
million for the fourth quarter, compared to $1.0 million in the
same period in the prior year.
Total revenues for the twelve months ended
December 31, 2018 were $104.2 million, compared to $104.6
million in the same period in the prior year.
Net loss from continuing operations for the
twelve months ended December 31, 2018 was $3.8 million, or
$0.19 net loss per diluted share, compared to net loss of $35.0
million, or $1.75 net loss per diluted share in the same period in
the prior year. Non-GAAP adjusted net loss for the twelve months
ended December 31, 2018 was $2.8 million, or $0.14 per diluted
share, compared to adjusted net loss of $3.1 million, or $0.15 per
diluted share in the same period in the prior year.
Operating cash flow for the twelve months ended
December 31, 2018 was $5.1 million, compared to $6.1 million
for the twelve months ended December 31, 2017. Non-GAAP
adjusted EBITDA for the twelve months ended December 31, 2018
was $6.0 million, compared to $6.3 million in the same period in
the prior year. Non-GAAP free cash flow was $5.0 million for
the twelve months ended December 31, 2018, compared to $3.7
million in the same period in the prior year.
Digirad President and CEO Matt Molchan said,
“Overall, we finished 2018 within our guidance range for revenue
and free cash flow, but below for adjusted EBITDA. Our adjusted
EBITDA was below our guidance range mainly due to lower than
expected camera sales in Diagnostic Imaging and higher than
anticipated costs in our Mobile Healthcare unit. We have
reorganized our business for 2019 to better align our executive
management team to focus on growing revenues organically and
reducing expenses across the whole organization. From an overall
business perspective, our Diagnostic Imaging Solutions (DIS) unit
performed well during the year, growing revenues by 4% year over
year. Our Mobile Healthcare business experienced higher than
anticipated costs associated with equipment and trailer
maintenance, which offset better than expected revenue performance.
Diagnostic Imaging finished the year below expectations, but did
have a solid 4th quarter, which should bode well for our
performance in 2019. In terms of debt levels, we paid down $10
million in debt during the year, which amounts to a 50% reduction
versus a year ago, and we paid down $4 million of debt in the 4th
Quarter alone.”
The proposed merger with ATRM Holdings, Inc. to
form “HoldCo”, previously announced on September 10th, 2018,
continues to progress with an anticipated closing midyear 2019. As
previously stated, HoldCo, once it is formed, expects to make
high-return internal investments as well as look for attractive
acquisition opportunities in addition to repurchasing shares. Share
repurchases will be evaluated against organic growth investments
and acquisitions, and the Company expects to continually allocate
capital to its highest and best use.
Finally, Digirad Corporation has approximately
$84 million of usable net operating losses (“NOL”) in the U.S.,
which the Company considers to be a very valuable asset for its
stockholders. Protecting the value of this NOL asset limits
the amount of stock than can be repurchased over a given time
period. In order to protect the value of the NOL for all
stockholders, the Company has a charter amendment in place that
limits beneficial ownership of Digirad common stock to
4.99%. Stockholders who wish to own more than 4.99% of Digirad
common stock, or who already own more than 4.99% of Digirad common
stock and wish to buy more, may only acquire additional Shares with
the Board’s prior written approval.
If you have any questions, either prior to or
after our scheduled Earnings Conference call, please e-mail
ir@digirad.com.
2018 Financial Guidance
The Company met its previously announced 2018
financial guidance for revenues from continuing operations of
between $100 million and $105 million and free cash flow between $4
million and $5 million. The Company’s non-GAAP adjusted EBITDA was
$6.0 million compared to previously announced target of $7.0
million.
Conference Call Information
A conference call is scheduled for 11:00 a.m.
EDT on March 1, 2019 to discuss the results and management’s
outlook. The call may be accessed by dialing 1-877-407-9039
(international callers: +1-201-689-8470) 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
http://drad.client.shareholder.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 net income (loss),” “adjusted net
income (loss) per diluted share,” “free cash flow”, and “adjusted
EBITDA.” The most directly comparable measure for these non-GAAP
financial measures are net income and diluted net income per share.
The Company has included below unaudited adjusted financial
information, which presents the Company’s results of operations
after excluding acquired intangible asset amortization, acquisition
related contingent consideration adjustments, unrealized gain
(loss) on available-for-sale securities, and non-recurring related
income tax adjustments. Further excluded in the measure of adjusted
EBITDA are 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 March 1, 2019.
About Digirad Corporation
Digirad delivers convenient, effective, and
efficient healthcare solutions on an as needed, when needed, and
where needed basis. Digirad’s diverse portfolio of mobile
healthcare solutions and diagnostic imaging equipment and services,
provides hospitals, physician practices, and imaging centers
through the United States access to technology and services
necessary to provide exceptional patient care in the rapidly
changing healthcare environment. For more information, please visit
www.digirad.com.
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
CorporationCondensed Consolidated Statements of
Operations(Unaudited)
| |
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember 31, |
| (in thousands,
except per share amounts) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenues: |
|
|
|
|
|
|
|
|
| Services |
|
$ |
22,346 |
|
|
$ |
22,932 |
|
|
$ |
92,197 |
|
|
$ |
92,551 |
|
| Product
and product-related |
|
3,582 |
|
|
3,380 |
|
|
11,983 |
|
|
12,081 |
|
| Total
revenues |
|
25,928 |
|
|
26,312 |
|
|
104,180 |
|
|
104,632 |
|
| Cost of revenues: |
|
|
|
|
|
|
|
|
|
Services |
|
20,084 |
|
|
19,935 |
|
|
79,068 |
|
|
76,391 |
|
| Product
and product-related |
|
2,105 |
|
|
1,841 |
|
|
6,841 |
|
|
7,045 |
|
| Total
cost of revenues |
|
22,189 |
|
|
21,776 |
|
|
85,909 |
|
|
83,436 |
|
| Gross profit |
|
3,739 |
|
|
4,536 |
|
|
18,271 |
|
|
21,196 |
|
|
Total gross profit percentage |
|
14.4 |
% |
|
17.2 |
% |
|
17.5 |
% |
|
20.3 |
% |
|
Services gross profit percentage |
|
10.1 |
% |
|
13.1 |
% |
|
14.2 |
% |
|
17.5 |
% |
|
Product and product-related gross profit
percentage |
|
41.2 |
% |
|
45.5 |
% |
|
42.9 |
% |
|
41.7 |
% |
| Operating
expenses: |
|
|
|
|
|
|
|
|
| Marketing
and sales |
|
1,209 |
|
|
1,487 |
|
|
5,418 |
|
|
6,249 |
|
| General
and administrative |
|
3,620 |
|
|
4,255 |
|
|
15,038 |
|
|
18,586 |
|
|
Amortization of intangible assets |
|
308 |
|
|
373 |
|
|
1,377 |
|
|
1,494 |
|
| Goodwill
impairment |
|
— |
|
|
166 |
|
|
476 |
|
|
166 |
|
| Loss on
sale of buildings |
|
— |
|
|
— |
|
|
507 |
|
|
— |
|
| Total
operating expenses |
|
5,137 |
|
|
6,281 |
|
|
22,816 |
|
|
26,495 |
|
| Loss from
operations |
|
(1,398 |
) |
|
(1,745 |
) |
|
(4,545 |
) |
|
(5,299 |
) |
| Other expense: |
|
|
|
|
|
|
|
|
| Other
expense, net |
|
51 |
|
|
(74 |
) |
|
(61 |
) |
|
(311 |
) |
| Interest
expense, net |
|
(188 |
) |
|
(156 |
) |
|
(751 |
) |
|
(730 |
) |
| Loss on
extinguishment of debt |
|
— |
|
|
— |
|
|
(43 |
) |
|
(709 |
) |
| Total other
expense |
|
(137 |
) |
|
(230 |
) |
|
(855 |
) |
|
(1,750 |
) |
| Loss before income
taxes |
|
(1,535 |
) |
|
(1,975 |
) |
|
(5,400 |
) |
|
(7,049 |
) |
| Income
tax benefit (expense) |
|
621 |
|
|
(20,630 |
) |
|
1,561 |
|
|
(27,987 |
) |
| Loss from
continuing operations, net of tax |
|
(914 |
) |
|
(22,605 |
) |
|
(3,839 |
) |
|
(35,036 |
) |
| (Loss)
income from discontinued operations, net of tax |
|
(680 |
) |
|
622 |
|
|
4,575 |
|
|
(694 |
) |
| Net (loss) income |
|
$ |
(1,594 |
) |
|
$ |
(21,983 |
) |
|
$ |
736 |
|
|
$ |
(35,730 |
) |
| |
|
|
|
|
|
|
|
|
| Net (loss) income per
share - basic and diluted |
|
|
|
|
|
|
|
|
| Continuing
operations |
|
$ |
(0.05 |
) |
|
$ |
(1.13 |
) |
|
$ |
(0.19 |
) |
|
$ |
(1.75 |
) |
| Discontinued
operations |
|
(0.03 |
) |
|
0.03 |
|
|
0.23 |
|
|
(0.03 |
) |
| Net (loss) income per
share - basic and diluted |
|
$ |
(0.08 |
) |
|
$ |
(1.10 |
) |
|
$ |
0.04 |
|
|
$ |
(1.79 |
) |
| Dividends declared per
common share |
|
$ |
— |
|
|
$ |
0.055 |
|
|
$ |
0.165 |
|
|
$ |
0.210 |
|
| Weighted average shares
outstanding – basic and diluted |
|
20,242 |
|
|
20,058 |
|
|
20,158 |
|
|
19,995 |
|
| |
|
|
|
|
|
|
|
|
| Net (loss) income |
|
$ |
(1,594 |
) |
|
$ |
(21,983 |
) |
|
$ |
736 |
|
|
$ |
(35,730 |
) |
| Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
Unrealized gain on available-for-sale marketable securities |
|
— |
|
|
17 |
|
|
— |
|
|
17 |
|
|
Reclassification of unrealized gain on available-for-sale
marketable securities to retained earnings |
|
— |
|
|
— |
|
|
(17 |
) |
|
— |
|
|
Reclassification of other-than-temporary losses on
available-for-sale securities included in net (loss) income |
|
— |
|
|
— |
|
|
— |
|
|
52 |
|
| Total
other comprehensive income (loss) |
|
— |
|
|
17 |
|
|
(17 |
) |
|
69 |
|
| Provision for income
taxes |
|
— |
|
|
(22 |
) |
|
— |
|
|
(22 |
) |
| Total other
comprehensive income (loss), after tax |
|
— |
|
|
(5 |
) |
|
(17 |
) |
|
47 |
|
| Comprehensive (loss)
income |
|
$ |
(1,594 |
) |
|
$ |
(21,988 |
) |
|
$ |
719 |
|
|
$ |
(35,683 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digirad
CorporationCondensed Consolidated Balance
Sheets(Unaudited)
| (in thousands,
except share data) |
|
December 31, 2018 |
|
December 31, 2017 |
|
Assets: |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash
equivalents |
|
$ |
1,545 |
|
|
$ |
1,877 |
|
| Equity
securities |
|
153 |
|
|
97 |
|
| Accounts
receivable, net |
|
12,642 |
|
|
15,887 |
|
| Inventories,
net |
|
5,402 |
|
|
5,501 |
|
| Restricted
cash |
|
167 |
|
|
242 |
|
| Other
current assets |
|
1,285 |
|
|
1,972 |
|
| Total
current assets |
|
21,194 |
|
|
25,576 |
|
| Property and equipment,
net |
|
21,645 |
|
|
28,365 |
|
| Intangible assets,
net |
|
5,228 |
|
|
7,830 |
|
| Goodwill |
|
1,745 |
|
|
2,393 |
|
| Restricted cash |
|
101 |
|
|
101 |
|
| Non-current assets held
for sale |
|
— |
|
|
1,735 |
|
| Other assets |
|
681 |
|
|
703 |
|
| Total
assets |
|
$ |
50,594 |
|
|
$ |
66,703 |
|
| |
|
|
|
|
|
Liabilities: |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts
payable |
|
$ |
5,206 |
|
|
$ |
5,207 |
|
| Accrued
compensation |
|
3,862 |
|
|
5,507 |
|
| Accrued
warranty |
|
197 |
|
|
204 |
|
| Deferred
revenue |
|
1,687 |
|
|
2,302 |
|
| Current
liabilities held-for-sale |
|
— |
|
|
835 |
|
| Other
current liabilities |
|
2,265 |
|
|
2,915 |
|
| Total
current liabilities |
|
13,217 |
|
|
16,970 |
|
| Long-term debt |
|
9,500 |
|
|
19,500 |
|
| Deferred tax
liabilities |
|
121 |
|
|
254 |
|
| Other liabilities |
|
1,956 |
|
|
2,180 |
|
| Total
liabilities |
|
24,794 |
|
|
38,904 |
|
| |
|
|
|
|
| Stockholders’
equity: |
|
|
|
|
| Preferred stock, $0.0001
par value: 10,000,000 shares authorized; no shares issued or
outstanding |
|
— |
|
|
— |
|
| Common stock, $0.0001 par
value: 80,000,000 shares authorized; 20,249,786 and 20,060,311
shares issued and outstanding (net of treasury shares) at
December 31, 2018 and 2017, respectively |
|
2 |
|
|
2 |
|
| Treasury stock, at cost;
2,588,484 shares at December 31, 2018 and 2017 |
|
(5,728 |
) |
|
(5,728 |
) |
| Additional paid-in
capital |
|
145,428 |
|
|
148,163 |
|
| Accumulated other
comprehensive loss |
|
(22 |
) |
|
(5 |
) |
| Accumulated deficit |
|
(113,880 |
) |
|
(114,633 |
) |
| Total
stockholders’ equity |
|
25,800 |
|
|
27,799 |
|
| Total
liabilities and stockholders’ equity |
|
$ |
50,594 |
|
|
$ |
66,703 |
|
| |
|
|
|
|
|
|
|
|
Digirad
CorporationReconciliation of Non-GAAP Financial
Measures(Unaudited)
| |
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember 31, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
|
|
|
|
|
|
|
|
| Net loss from
continuing operations |
|
$ |
(914 |
) |
|
$ |
(22,605 |
) |
|
$ |
(3,839 |
) |
|
$ |
(35,036 |
) |
| Acquired
intangible amortization |
|
308 |
|
|
373 |
|
|
1,377 |
|
|
1,494 |
|
|
Unrealized (gain) loss on available-for-sale securities (1) |
|
(50 |
) |
|
74 |
|
|
62 |
|
|
311 |
|
|
Litigation reserve (2) |
|
— |
|
|
— |
|
|
— |
|
|
1,339 |
|
|
Restructuring costs (3) |
|
(4 |
) |
|
— |
|
|
93 |
|
|
— |
|
| Loss on
extinguishment of debt |
|
— |
|
|
— |
|
|
43 |
|
|
709 |
|
| Goodwill
impairment (4) |
|
— |
|
|
166 |
|
|
476 |
|
|
166 |
|
| Loss on
sale of buildings (5) |
|
— |
|
|
— |
|
|
507 |
|
|
— |
|
|
Transaction Cost (6) |
|
91 |
|
|
— |
|
|
91 |
|
|
— |
|
|
Acquisition related contingent consideration valuation adjustment
(7) |
|
— |
|
|
— |
|
|
— |
|
|
(57 |
) |
| Income
tax items (8) |
|
(621 |
) |
|
20,630 |
|
|
(1,561 |
) |
|
27,987 |
|
| Non-GAAP
adjusted net loss from continuing operations |
|
$ |
(1,190 |
) |
|
$ |
(1,362 |
) |
|
$ |
(2,751 |
) |
|
$ |
(3,087 |
) |
| |
|
|
|
|
|
|
|
|
| Net loss per
diluted share from continuing operations (9) |
|
$ |
(0.05 |
) |
|
$ |
(1.13 |
) |
|
$ |
(0.19 |
) |
|
$ |
(1.75 |
) |
| Acquired
intangible amortization |
|
0.02 |
|
|
0.02 |
|
|
0.07 |
|
|
0.07 |
|
|
Unrealized loss on available-for-sale securities (1) |
|
— |
|
|
— |
|
|
— |
|
|
0.02 |
|
|
Litigation reserve (2) |
|
— |
|
|
— |
|
|
— |
|
|
0.07 |
|
|
Restructuring costs (3) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Loss on
extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
0.04 |
|
| Goodwill
impairment (4) |
|
— |
|
|
0.01 |
|
|
0.02 |
|
|
0.01 |
|
| Loss on
sale of buildings (5) |
|
— |
|
|
— |
|
|
0.03 |
|
|
— |
|
|
Transaction Cost (6) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Acquisition related contingent consideration valuation adjustment
(7) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Income
tax items (8) |
|
(0.03 |
) |
|
1.03 |
|
|
(0.08 |
) |
|
1.40 |
|
| Non-GAAP
adjusted net loss per basic and diluted share from continuing
operations (9) |
|
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digirad
CorporationReconciliation of Non-GAAP Financial
Measures(Unaudited)
| |
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember 31, |
| (in
thousands) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
|
|
|
|
|
|
|
|
| Net loss from
continuing operations |
|
$ |
(914 |
) |
|
$ |
(22,605 |
) |
|
$ |
(3,839 |
) |
|
$ |
(35,036 |
) |
|
Unrealized (loss) gain on equity securities (1) |
|
(50 |
) |
|
74 |
|
|
62 |
|
|
311 |
|
|
Litigation reserve (2) |
|
— |
|
|
— |
|
|
— |
|
|
1,339 |
|
|
Restructuring costs (3) |
|
(4 |
) |
|
— |
|
|
93 |
|
|
— |
|
| Goodwill
impairment (4) |
|
— |
|
|
166 |
|
|
476 |
|
|
166 |
|
| Loss on
extinguishment of debt |
|
— |
|
|
— |
|
|
43 |
|
|
709 |
|
|
Depreciation and amortization |
|
1,988 |
|
|
2,339 |
|
|
8,706 |
|
|
9,363 |
|
|
Stock-based compensation |
|
88 |
|
|
25 |
|
|
634 |
|
|
834 |
|
| Loss on
sale of buildings (5) |
|
— |
|
|
— |
|
|
507 |
|
|
— |
|
| Interest
expense, net |
|
188 |
|
|
156 |
|
|
751 |
|
|
730 |
|
|
Transaction cost (6) |
|
91 |
|
|
— |
|
|
91 |
|
|
— |
|
|
Acquisition related contingent consideration valuation adjustment
(7) |
|
— |
|
|
— |
|
|
— |
|
|
(57 |
) |
| Income
tax (benefit) expense |
|
(621 |
) |
|
20,630 |
|
|
(1,561 |
) |
|
27,987 |
|
| Non-GAAP
adjusted EBITDA from continuing operations |
|
$ |
766 |
|
|
$ |
785 |
|
|
$ |
5,963 |
|
|
$ |
6,346 |
|
(1) Reflects change in fair value of investments
in equity securities.
(2) Reflects legal settlement for wage and hour
litigation in 2017.
(3) Reflects severance related costs.
(4) Reflects impairment of goodwill for
Telerhythmics reporting unit.
(5) Reflects loss on sale a portion of land and
buildings in our Fargo location.
(6) Reflects legal costs related to one
time transactions, include the ATRM acquisition, joint venture, and
stock issuance in Q4 2018.
(7) Reflects fair value adjustment to estimate
of contingent consideration related to acquisitions.
(8) The Company has a significant tax NOL that
is offset by a full valuation allowance recorded in the fourth
quarter of 2017 in the GAAP consolidated financial statements. As a
result, for purposes of non-GAAP measures, we utilized a 0%
effective tax rate for both periods.
(9) 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
CorporationReconciliation of Operating Cash Flow
to Free Cash Flow(Unaudited)
| |
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember 31, |
| (in
thousands) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net cash
provided by (used in) operating activities |
|
$ |
2,846 |
|
|
$ |
1,968 |
|
|
$ |
5,064 |
|
|
$ |
6,069 |
|
| Purchases of property
and equipment, net of dispositions |
|
71 |
|
|
(971 |
) |
|
(68 |
) |
|
(2,364 |
) |
| Free cash
flow |
|
$ |
2,917 |
|
|
$ |
997 |
|
|
$ |
4,996 |
|
|
$ |
3,705 |
|
Digirad
CorporationSupplemental Debt
Information(Unaudited)
The following table reflects outstanding principal balances and
interest rates for the Company’s debt at December 31, 2018 and
December 31, 2017:
| |
|
December 31, 2018 |
|
December 31, 2017 |
| |
|
Amount |
|
Interest Rate |
|
Amount |
|
Interest Rate |
| Revolving Credit
Facility (1) |
|
$ |
9,500 |
|
|
4.87 |
% |
|
$ |
19,500 |
|
|
3.90 |
% |
(1) Revolving Credit Agreement was entered
into with Comerica Bank in June 2017, which was subsequently
amended on January 30, 2018 and September 30, 2018. The agreement
consists of a revolving credit facility with a five-year term,
maturing on June 21, 2022.
Digirad
CorporationSupplemental Segment
Information(Unaudited)
| |
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember 31, |
| (in
thousands) |
|
2018 |
|
2017 (1) |
|
2018 |
|
2017 (1) |
| Revenue by segment: |
|
|
|
|
|
|
|
|
| Diagnostic Services |
|
$ |
11,552 |
|
|
$ |
12,084 |
|
|
$ |
49,256 |
|
|
$ |
49,016 |
|
| Diagnostic
Imaging |
|
3,582 |
|
|
3,380 |
|
|
11,983 |
|
|
12,081 |
|
| Mobile
Healthcare |
|
10,794 |
|
|
10,848 |
|
|
42,941 |
|
|
43,535 |
|
| Consolidated revenue |
|
$ |
25,928 |
|
|
$ |
26,312 |
|
|
$ |
104,180 |
|
|
$ |
104,632 |
|
| Gross profit by
segment: |
|
|
|
|
|
|
|
|
| Diagnostic
Services |
|
$ |
1,827 |
|
|
$ |
1,790 |
|
|
$ |
9,447 |
|
|
$ |
9,942 |
|
| Diagnostic
Imaging |
|
1,477 |
|
|
1,539 |
|
|
5,142 |
|
|
5,036 |
|
| Mobile
Healthcare |
|
435 |
|
|
1,207 |
|
|
3,682 |
|
|
6,218 |
|
| Consolidated gross
profit |
|
$ |
3,739 |
|
|
$ |
4,536 |
|
|
$ |
18,271 |
|
|
$ |
21,196 |
|
| Income (loss) from
continuing operations by segment: |
|
|
|
|
|
|
|
|
| Diagnostic
Services |
|
$ |
(32 |
) |
|
$ |
(577 |
) |
|
$ |
732 |
|
|
$ |
(134 |
) |
| Diagnostic
Imaging |
|
140 |
|
|
(150 |
) |
|
(304 |
) |
|
(1,097 |
) |
| Mobile
Healthcare |
|
(1,506 |
) |
|
(852 |
) |
|
(3,990 |
) |
|
(2,563 |
) |
| Segment loss from
continuing operations |
|
$ |
(1,398 |
) |
|
$ |
(1,579 |
) |
|
$ |
(3,562 |
) |
|
$ |
(3,794 |
) |
| Loss on sale of buildings
(2) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(507 |
) |
|
$ |
— |
|
| Goodwill impairment
(3) |
|
— |
|
|
(166 |
) |
|
(476 |
) |
|
(166 |
) |
| Litigation reserve
(4) |
|
— |
|
|
— |
|
|
— |
|
|
(1,339 |
) |
| Consolidated loss from
continuing operations |
|
$ |
(1,398 |
) |
|
$ |
(1,745 |
) |
|
$ |
(4,545 |
) |
|
$ |
(5,299 |
) |
(1) Segment information has been recast for all periods
presented to reflect the MDSS disposition as discontinued
operations. As certain shared function costs previously allocated
to MDSS are not allocable to discontinued operations, prior period
corporate costs have been re-allocated amongst the continuing
reportable segments.
(2) Reflects loss on sale a portion of land and buildings in our
Fargo location.
(3) Reflects goodwill impairment adjustment for Telerhythmics
reporting unit.
(4) Reflects legal settlement reserve for wage and hour
litigation in 2017.
| |
|
|
| |
|
For more
information contact: |
| |
|
Jeffrey E.
Eberwein |
| |
|
Chairman of the Board |
| |
|
203-489-9501 |
| |
|
ir@digirad.com |
Digirad (NASDAQ:DRAD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Digirad (NASDAQ:DRAD)
Historical Stock Chart
From Apr 2023 to Apr 2024
