Digirad Corporation (Nasdaq: DRAD) reported today its financial
results for the second quarter ended June 30, 2019.
Total revenues from continuing operations for
the second quarter were $25.8 million, compared to $27.1 million in
the second quarter of the prior year.
Net loss from continuing operations for the
second quarter was $1.5 million, or $0.72 net loss per basic and
diluted share, compared to net loss from continuing operations of
$0.4 million, or $0.17 net loss per basic and diluted share in the
same period in the prior year. Non-GAAP adjusted net loss from
continuing operations for the second quarter was $0.1 million, or
$0.04 per basic and diluted share, compared to adjusted net income
of $0.4 million, or $0.20 per basic and diluted share in the same
period in the prior year.
Operating cash flow for the second quarter was
an inflow of $2.6 million, compared to an inflow of $2.6 million
for the same period in the prior year. Non-GAAP adjusted EBITDA
from continuing operations for the second quarter was $2.1 million,
compared to $2.7 million in the same period in the prior year.
Non-GAAP free cash flow was an inflow of $2.6 million for the
second quarter, compared to an inflow of $2.2 million in the same
period in the prior year.
Total revenues from continuing operations for
the six months ended June 30, 2019 were $49.7 million, compared to
$52.5 million in the six months ended June 30, 2018.
Net loss from continuing operations for the six
months ended June 30, 2019 was $3.1 million, or $1.54 net loss per
basic and diluted share, compared to net loss from continuing
operations of $1.7 million, or $0.86 net loss per basic and diluted
share in the same period in the prior year. Non-GAAP adjusted net
loss from continuing operations for the six months ended June 30,
2019 was $0.9 million, or $0.46 per basic and diluted share,
compared to adjusted net loss of $0.9 million, or $0.46 per basic
and diluted share in the same period in the prior year.
Operating cash flow for the six months
ended June 30, 2019 was an inflow of $0.4 million, compared to an
inflow of $3.0 million for the same period in the prior year.
Non-GAAP adjusted EBITDA from continuing operations for the six
months ended June 30, 2019 was $2.9 million, compared to $3.6
million in the same period in the prior year. Non-GAAP free cash
flow was an inflow of $0.2 million for the six months ended June
30, 2019, compared to an inflow of $2.4 million in the same period
in the prior year.
Digirad President and CEO Matt Molchan said,
“The second quarter of 2019 was ahead of our expectations for
revenue and adjusted EBITDA. Our Diagnostic Imaging Solutions (DIS)
division continues to perform well, with revenue growth of 4% year
over year, outperforming our expectations for revenue and adjusted
EBITDA. Our Mobile Healthcare division also performed well in the
quarter - finishing ahead of plan for revenue and adjusted EBITDA,
with gross margin percentage improving year over year by 3%. Our
Diagnostic Imaging division also exceeded expectations for both
revenue and adjusted EBITDA in the quarter, with revenue growing
11% year over year.”
Significant progress was made towards the
formation of “HoldCo”, Digirad’s go-forward strategy previously
announced on September 10, 2018. Since then we have created a new
subsidiary of Digirad - Star Real Estate Holdings USA (SRE) to
manage the real estate assets of Digirad and the future “HoldCo”
diversified holding company. SRE has already purchased 3 modular
building factories. Additionally, Digirad signed a merger agreement
to acquire ATRM Holdings, Inc. on July 3, 2019 and then on July 19,
2019, Digirad filed our registration statement on Form S-4 to
register the preferred shares to be issued in the merger. As
previously stated, HoldCo, once it is fully functional, expects to
make high-return internal investments as well as look for
attractive acquisition opportunities, and will also consider
repurchasing shares from time to time. Share repurchases will be
evaluated against organic growth investments and acquisitions, and
the Company expects to continually allocate capital to maximize
shareholder value.
Finally, Digirad Corporation has approximately
$83.7 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.
2019 Financial Guidance
The Company confirmed its financial guidance for
2019, which is to generate revenues from continuing operations of
between $95 million and $100 million, non-GAAP adjusted EBITDA
between $5.5 million and $6.5 million, and free cash flow between
$3 million and $4 million.
Conference Call Information
A conference call is scheduled for 11:00 a.m.
EDT on August 6, 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://ir.digirad.com/events-presentations; 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 basic and diluted share,” “free cash flow”, and
“adjusted EBITDA.” The most directly comparable measure for these
non-GAAP financial measures are net income and basic 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 August 6, 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 Corporation |
|
Condensed Consolidated Statements of
Operations |
|
(Unaudited) |
|
(In thousands, except for per share amounts) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
|
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| Revenues: |
|
|
|
|
|
|
|
|
|
Services |
|
$ |
22,749 |
|
|
$ |
24,324 |
|
|
$ |
44,138 |
|
|
$ |
46,947 |
|
|
Product and product-related |
|
3,049 |
|
|
2,756 |
|
|
5,572 |
|
|
5,598 |
|
|
Real estate operations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Total revenues |
|
25,798 |
|
|
27,080 |
|
|
49,710 |
|
|
52,545 |
|
| Cost of revenues: |
|
|
|
|
|
|
|
|
|
Services |
|
18,648 |
|
|
20,023 |
|
|
36,842 |
|
|
39,284 |
|
|
Product and product-related |
|
1,969 |
|
|
1,490 |
|
|
3,706 |
|
|
3,087 |
|
|
Real estate operations |
|
177 |
|
|
— |
|
|
177 |
|
|
— |
|
|
Total cost of revenues |
|
20,794 |
|
|
21,513 |
|
|
40,725 |
|
|
42,371 |
|
| Gross profit |
|
5,004 |
|
|
5,567 |
|
|
8,985 |
|
|
10,174 |
|
|
Total gross profit percentage |
|
19.4 |
% |
|
20.6 |
% |
|
18.1 |
% |
|
19.4 |
% |
|
Services gross profit percentage |
|
18.0 |
% |
|
17.7 |
% |
|
16.5 |
% |
|
16.3 |
% |
|
Product and product-related gross profit
percentage |
|
35.4 |
% |
|
45.9 |
% |
|
33.5 |
% |
|
44.9 |
% |
| Operating expenses: |
|
|
|
|
|
|
|
|
|
Marketing and sales |
|
1,215 |
|
|
1,461 |
|
|
2,358 |
|
|
2,928 |
|
|
General and administrative |
|
3,652 |
|
|
3,522 |
|
|
7,342 |
|
|
7,914 |
|
|
Amortization of intangible assets |
|
283 |
|
|
356 |
|
|
566 |
|
|
713 |
|
|
Goodwill impairment |
|
— |
|
|
476 |
|
|
— |
|
|
476 |
|
|
Merger and financing |
|
1,000 |
|
|
— |
|
|
1,000 |
|
|
— |
|
|
Total operating expenses |
|
6,150 |
|
|
5,815 |
|
|
11,266 |
|
|
12,031 |
|
| Loss from operations |
|
(1,146 |
) |
|
(248 |
) |
|
(2,281 |
) |
|
(1,857 |
) |
| Other expense: |
|
|
|
|
|
|
|
|
|
Other expense, net |
|
(5 |
) |
|
(19 |
) |
|
(203 |
) |
|
(36 |
) |
|
Interest expense, net |
|
(254 |
) |
|
(189 |
) |
|
(435 |
) |
|
(363 |
) |
|
Loss on sale of building |
|
(232 |
) |
|
— |
|
|
(232 |
) |
|
— |
|
|
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
(151 |
) |
|
(43 |
) |
| Total other expense |
|
(491 |
) |
|
(208 |
) |
|
(1,021 |
) |
|
(442 |
) |
| Loss before income taxes |
|
(1,637 |
) |
|
(456 |
) |
|
(3,302 |
) |
|
(2,299 |
) |
|
Income tax benefit |
|
162 |
|
|
106 |
|
|
170 |
|
|
561 |
|
|
Net loss from continuing operations |
|
(1,475 |
) |
|
(350 |
) |
|
(3,132 |
) |
|
(1,738 |
) |
|
Net income from discontinued operations |
|
266 |
|
|
— |
|
|
266 |
|
|
5,494 |
|
| Net (loss) income |
|
$ |
(1,209 |
) |
|
$ |
(350 |
) |
|
$ |
(2,866 |
) |
|
$ |
3,756 |
|
| |
|
|
|
|
|
|
|
|
| Net (loss) income per share -
basic and diluted |
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
(0.72 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.54 |
) |
|
$ |
(0.86 |
) |
| Discontinued operations |
|
0.13 |
|
|
— |
|
|
0.13 |
|
|
2.73 |
|
| Net (loss) income per share -
basic and diluted |
|
$ |
(0.59 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.41 |
) |
|
$ |
1.87 |
|
| Dividends declared per common
share |
|
$ |
— |
|
|
$ |
0.55 |
|
|
$ |
— |
|
|
$ |
1.10 |
|
| Weighted-average shares
outstanding – basic and diluted |
|
2,038 |
|
|
2,012 |
|
|
2,034 |
|
|
2,011 |
|
| |
|
|
|
|
|
|
|
|
| Net (loss) income |
|
$ |
(1,209 |
) |
|
$ |
(350 |
) |
|
$ |
(2,866 |
) |
|
$ |
3,756 |
|
| Other comprehensive income
(loss): |
|
|
|
|
|
|
|
|
|
Reclassification of tax provision impact |
|
— |
|
|
— |
|
|
22 |
|
|
— |
|
|
Reclassification of unrealized gains on equity securities to
retained earnings |
|
— |
|
|
— |
|
|
— |
|
|
(17 |
) |
|
Total other comprehensive income (loss) |
|
— |
|
|
— |
|
|
22 |
|
|
(17 |
) |
| Comprehensive (loss)
income |
|
$ |
(1,209 |
) |
|
$ |
(350 |
) |
|
$ |
(2,844 |
) |
|
$ |
3,739 |
|
|
Digirad Corporation |
|
Condensed Consolidated Balance Sheets |
|
(Unaudited) |
|
(In thousands) |
| |
| |
|
June 30, 2019 |
|
December 31, 2018 |
| Assets: |
|
|
|
|
| Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
864 |
|
|
$ |
1,545 |
|
|
Restricted cash |
|
168 |
|
|
167 |
|
|
Equity securities |
|
17 |
|
|
153 |
|
|
Accounts receivable, net |
|
12,783 |
|
|
12,642 |
|
|
Inventories, net |
|
5,781 |
|
|
5,402 |
|
|
Other current assets |
|
1,456 |
|
|
1,285 |
|
|
Total current assets |
|
21,069 |
|
|
21,194 |
|
| Property and equipment, net |
|
24,324 |
|
|
21,645 |
|
| Operating lease right-of-use
assets |
|
3,973 |
|
|
— |
|
| Intangible assets, net |
|
4,662 |
|
|
5,228 |
|
| Goodwill |
|
1,745 |
|
|
1,745 |
|
| Restricted cash |
|
— |
|
|
101 |
|
| Deferred tax assets |
|
75 |
|
|
— |
|
| Investments in and receivables
from related parties |
|
1,275 |
|
|
275 |
|
| Other assets |
|
728 |
|
|
406 |
|
|
Total assets |
|
$ |
57,851 |
|
|
$ |
50,594 |
|
| |
|
|
|
|
|
Liabilities: |
|
|
|
|
| Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
4,584 |
|
|
$ |
5,206 |
|
|
Accrued compensation |
|
4,121 |
|
|
3,862 |
|
|
Accrued warranty |
|
283 |
|
|
197 |
|
|
Deferred revenue |
|
1,455 |
|
|
1,687 |
|
|
Operating lease liabilities, current portion |
|
1,427 |
|
|
— |
|
|
Other current liabilities |
|
2,939 |
|
|
2,265 |
|
|
Total current liabilities |
|
14,809 |
|
|
13,217 |
|
| Long-term debt |
|
15,314 |
|
|
9,500 |
|
| Deferred tax liabilities |
|
121 |
|
|
121 |
|
| Operating lease liabilities, net
of current portion |
|
2,674 |
|
|
— |
|
| Other liabilities |
|
1,721 |
|
|
1,956 |
|
|
Total liabilities |
|
34,639 |
|
|
24,794 |
|
| |
|
|
|
|
| Stockholders’
equity: |
|
|
|
|
| Preferred stock, $0.0001 par
value: 10,000,000 shares authorized; no shares issued or
outstanding |
|
— |
|
|
— |
|
| Common stock, $0.0001 par value:
30,000,000 shares authorized; 2,042,493 and 2,024,979 shares issued
and outstanding (net of treasury shares) at June 30, 2019 and
December 31, 2018, respectively |
|
2 |
|
|
2 |
|
| Treasury stock, at cost; 258,849
shares at June 30, 2019 and December 31, 2018 |
|
(5,728 |
) |
|
(5,728 |
) |
| Additional paid-in capital |
|
145,706 |
|
|
145,428 |
|
| Accumulated other comprehensive
loss |
|
— |
|
|
(22 |
) |
| Accumulated deficit |
|
(116,768 |
) |
|
(113,880 |
) |
|
Total stockholders’ equity |
|
23,212 |
|
|
25,800 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
57,851 |
|
|
$ |
50,594 |
|
|
Digirad Corporation |
|
Reconciliation of Non-GAAP Financial Measures |
|
(Unaudited) |
|
(In thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| |
|
|
|
|
|
|
|
|
| Net loss from
continuing operations |
|
$ |
(1,475 |
) |
|
$ |
(350 |
) |
|
$ |
(3,132 |
) |
|
$ |
(1,738 |
) |
|
Acquired intangible amortization |
|
283 |
|
|
356 |
|
|
566 |
|
|
713 |
|
|
Unrealized (gain) loss on equity securities (1) |
|
5 |
|
|
19 |
|
|
(23 |
) |
|
36 |
|
|
Restructuring costs (2) |
|
62 |
|
|
— |
|
|
62 |
|
|
97 |
|
|
Loss on extinguishment of debt (3) |
|
— |
|
|
— |
|
|
151 |
|
|
43 |
|
|
Goodwill impairment |
|
— |
|
|
476 |
|
|
— |
|
|
476 |
|
|
Loss on sale of buildings |
|
232 |
|
|
— |
|
|
232 |
|
|
— |
|
|
Write-off of Star Real Estate Holding Assets |
|
143 |
|
|
— |
|
|
143 |
|
|
— |
|
|
Transaction cost (4) |
|
726 |
|
|
— |
|
|
956 |
|
|
— |
|
|
Write-off of preferred stock issuance cost (5) |
|
273 |
|
|
— |
|
|
273 |
|
|
— |
|
|
Income tax benefit |
|
(162 |
) |
|
(106 |
) |
|
(170 |
) |
|
(561 |
) |
| Non-GAAP adjusted net
loss from continuing operations |
|
$ |
87 |
|
|
$ |
395 |
|
|
$ |
(942 |
) |
|
$ |
(934 |
) |
| |
|
|
|
|
|
|
|
|
| Net loss per diluted
share from continuing operations |
|
$ |
(0.72 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.54 |
) |
|
$ |
(0.86 |
) |
|
Acquired intangible amortization |
|
0.14 |
|
|
0.18 |
|
|
0.28 |
|
|
0.35 |
|
|
Unrealized (gain) loss on equity securities (1) |
|
— |
|
|
0.01 |
|
|
(0.01 |
) |
|
0.02 |
|
|
Restructuring costs (2) |
|
0.03 |
|
|
— |
|
|
0.03 |
|
|
0.05 |
|
|
Loss on extinguishment of debt (3) |
|
— |
|
|
— |
|
|
0.07 |
|
|
0.02 |
|
|
Goodwill impairment |
|
— |
|
|
0.24 |
|
|
— |
|
|
0.24 |
|
|
Loss on sale of buildings |
|
0.11 |
|
|
— |
|
|
0.11 |
|
|
— |
|
|
Write-off of Star Real Estate Holding Assets |
|
0.07 |
|
|
— |
|
|
0.07 |
|
|
— |
|
|
Transaction cost (4) |
|
0.36 |
|
|
— |
|
|
0.47 |
|
|
— |
|
|
Write-off of preferred stock issuance cost (5) |
|
0.13 |
|
|
— |
|
|
0.13 |
|
|
— |
|
|
Income tax benefit |
|
(0.08 |
) |
|
(0.05 |
) |
|
(0.08 |
) |
|
(0.28 |
) |
| Non-GAAP adjusted net
loss per basic and diluted share from continuing operations
(6) |
|
$ |
0.04 |
|
|
$ |
0.20 |
|
|
$ |
(0.46 |
) |
|
$ |
(0.46 |
) |
|
Digirad Corporation |
|
Reconciliation of Non-GAAP Financial Measures |
|
(Unaudited) |
|
(In thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| Net loss from
continuing operations |
|
$ |
(1,475 |
) |
|
$ |
(350 |
) |
|
$ |
(3,132 |
) |
|
$ |
(1,738 |
) |
|
Unrealized (gain) loss on equity securities (1) |
|
5 |
|
|
19 |
|
|
(23 |
) |
|
36 |
|
|
Restructuring costs (2) |
|
62 |
|
|
— |
|
|
62 |
|
|
97 |
|
|
Loss on extinguishment of debt (3) |
|
— |
|
|
— |
|
|
151 |
|
|
43 |
|
|
Depreciation and amortization |
|
1,851 |
|
|
2,288 |
|
|
3,660 |
|
|
4,553 |
|
|
Stock-based compensation |
|
190 |
|
|
171 |
|
|
302 |
|
|
372 |
|
|
Loss on sale of building |
|
232 |
|
|
— |
|
|
232 |
|
|
— |
|
|
Interest expense, net |
|
254 |
|
|
189 |
|
|
435 |
|
|
363 |
|
|
Goodwill impairment |
|
— |
|
|
476 |
|
|
— |
|
|
476 |
|
|
Write-off of Star Real Estate Holding Assets |
|
143 |
|
|
— |
|
|
143 |
|
|
— |
|
|
Transaction cost (4) |
|
726 |
|
|
— |
|
|
956 |
|
|
— |
|
|
Write-off of preferred stock issuance cost (5) |
|
273 |
|
|
— |
|
|
273 |
|
|
— |
|
|
Income tax benefit |
|
(162 |
) |
|
(106 |
) |
|
(170 |
) |
|
(561 |
) |
| Non-GAAP adjusted
EBITDA from continuing operations |
|
$ |
2,099 |
|
|
$ |
2,687 |
|
|
$ |
2,889 |
|
|
$ |
3,641 |
|
| |
|
|
| (1) |
|
Reflects change in fair value of
investments in equity securities. |
| (2) |
|
Reflects severance related
costs. |
| (3) |
|
Reflects write-off of unamortized
deferred financing costs associated with the Comerica Credit
Agreement. |
| (4) |
|
Reflects legal and other costs
related to the proposed ATRM merger and HoldCo establishment. |
| (5) |
|
Reflects write-off of costs
related to a potential offering of preferred stock the Company does
not expect to complete. |
| (6) |
|
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 Operating Cash Flow to Free Cash
Flow |
|
(Unaudited) |
|
(In thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| Net cash (used in)
provided by operating activities |
|
$ |
2,553 |
|
|
$ |
2,621 |
|
|
$ |
368 |
|
|
$ |
3,041 |
|
| Purchases of property and
equipment, net of dispositions |
|
4 |
|
|
(433 |
) |
|
(126 |
) |
|
(594 |
) |
| Free cash
flow |
|
$ |
2,557 |
|
|
$ |
2,188 |
|
|
$ |
242 |
|
|
$ |
2,447 |
|
|
Digirad Corporation |
|
Supplemental Debt Information |
|
(Unaudited) |
|
(In thousands) |
The following table reflects outstanding principal balances and
interest rates for the Company’s debt:
| |
|
June 30, 2019 |
|
December 31, 2018 |
| |
|
Amount |
|
Interest Rate |
|
Amount |
|
Interest Rate |
| Revolving Credit Facility -
SNB (1) |
|
$ |
15,314 |
|
|
4.90 |
% |
|
$ |
— |
|
|
— |
% |
| Revolving Credit Facility -
Comerica (2) |
|
$ |
— |
|
|
— |
% |
|
$ |
9,500 |
|
|
4.87 |
% |
| (1) |
|
Entered into with Sterling National Bank in March 2019. The
agreement consists of a revolving credit facility with a five-year
term, maturing in March 2024. |
| (2) |
|
Entered into with Comerica Bank in June 2017, which was
subsequently amended on January 30, 2018 and September 30, 2018.
The Company used a portion of the financing made available under
the SNB Credit Facility to refinance and terminate, effective as of
March 29, 2019, its credit facility with Comerica Bank. |
|
Digirad Corporation |
|
Supplemental Segment Information |
|
(Unaudited) |
|
(In thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| Revenue by segment: |
|
|
|
|
|
|
|
|
|
Diagnostic Services |
|
$ |
12,318 |
|
|
$ |
13,267 |
|
|
$ |
24,044 |
|
|
$ |
25,292 |
|
|
Diagnostic Imaging |
|
3,049 |
|
|
2,756 |
|
|
5,572 |
|
|
5,598 |
|
|
Mobile Healthcare |
|
10,431 |
|
|
11,057 |
|
|
20,094 |
|
|
21,655 |
|
|
Real Estate Holdings |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Consolidated revenue |
|
$ |
25,798 |
|
|
$ |
27,080 |
|
|
$ |
49,710 |
|
|
$ |
52,545 |
|
| |
|
|
|
|
|
|
|
|
| Gross profit by segment: |
|
|
|
|
|
|
|
|
|
Diagnostic Services |
|
$ |
2,805 |
|
|
$ |
2,969 |
|
|
$ |
5,386 |
|
|
$ |
5,216 |
|
|
Diagnostic Imaging |
|
1,080 |
|
|
1,266 |
|
|
1,866 |
|
|
2,511 |
|
|
Mobile Healthcare |
|
1,296 |
|
|
1,332 |
|
|
1,910 |
|
|
2,447 |
|
|
Real Estate Holdings |
|
(177 |
) |
|
— |
|
|
(177 |
) |
|
— |
|
| Consolidated gross profit |
|
$ |
5,004 |
|
|
$ |
5,567 |
|
|
$ |
8,985 |
|
|
$ |
10,174 |
|
| |
|
|
|
|
|
|
|
|
| Loss from continuing operations
by segment: |
|
|
|
|
|
|
|
|
|
Diagnostic Services |
|
$ |
1,957 |
|
|
$ |
1,096 |
|
|
$ |
3,693 |
|
|
$ |
2,089 |
|
|
Diagnostic Imaging |
|
565 |
|
|
1,035 |
|
|
908 |
|
|
1,654 |
|
|
Mobile Healthcare |
|
439 |
|
|
72 |
|
|
(184 |
) |
|
21 |
|
|
Real Estate Holdings |
|
(199 |
) |
|
— |
|
|
(199 |
) |
|
— |
|
|
Unallocated corporate and other expenses |
|
(2,908 |
) |
|
(1,975 |
) |
|
(5,499 |
) |
|
(5,145 |
) |
| Segment (loss) income from
operations |
|
(146 |
) |
|
228 |
|
|
(1,281 |
) |
|
(1,381 |
) |
|
Goodwill impairment |
|
— |
|
|
(476 |
) |
|
— |
|
|
(476 |
) |
| Merger and finance
costs |
|
(1,000 |
) |
|
— |
|
|
(1,000 |
) |
|
— |
|
| Consolidated loss from
operations |
|
$ |
(1,146 |
) |
|
$ |
(248 |
) |
|
$ |
(2,281 |
) |
|
$ |
(1,857 |
) |
| |
|
|
|
|
|
|
|
|
| Depreciation and amortization by
segment: |
|
|
|
|
|
|
|
|
|
Diagnostic Services |
|
$ |
305 |
|
|
$ |
936 |
|
|
$ |
609 |
|
|
$ |
1,240 |
|
|
Diagnostic Imaging |
|
73 |
|
|
74 |
|
|
151 |
|
|
152 |
|
|
Mobile Healthcare |
|
1,438 |
|
|
1,750 |
|
|
2,865 |
|
|
3,177 |
|
|
Real Estate Holdings |
|
35 |
|
|
— |
|
|
35 |
|
|
— |
|
| Total depreciation and
amortization |
|
$ |
1,851 |
|
|
$ |
2,760 |
|
|
$ |
3,660 |
|
|
$ |
4,569 |
|
| For more information
contact: |
| Jeffrey E. Eberwein |
| Chairman of the Board |
| 203-489-9501 |
| ir@digirad.com |
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