KBS, a Subsidiary of Digirad Corporation, Announces Signing of $2.0 Million Contract to Manufacture Modular Residential Units...
June 11 2020 - 8:30AM
Digirad Corporation (Nasdaq: DRAD; DRADP) (“Digirad” or the
“Company”), a diversified holding company with three divisions:
Healthcare, Building & Construction, and Real Estate &
Investments, announced today that KBS Builders, Inc. (“KBS”) has
signed a $2.0 million contract to manufacture housing units for
military veterans. KBS is the Maine-based modular building
manufacturing business of the Company’s Building & Construction
division.
KBS’s contract is part of a larger housing
project that involves the renovation and expansion of an existing
mixed-use building in downtown Quincy, MA. The existing structure
consists of ground level retail, commercial, and restaurant space
with sixteen residential units for military veterans. The expansion
plan contemplates the retrofitting of the existing building by
adding two additional stories consisting of 32 residential housing
units. The expansion project is privately funded by Martin Realty
in a collaborative effort with the City of Quincy and HUD’s
Veterans Administration Supportive Housing Program (HUD-VASH)
program.
Using its plant in South Paris, ME, KBS will
produce 58 building modules to be used for the construction of 32
housing units. Manufacturing is expected to commence in June 2020
with delivery to be completed by August 2020.
Jeff Eberwein, Digirad’s Chairman noted, “We are
proud to be part of this significant HUD-VASH program that provides
housing assistance to our military veterans. This new $2.0 million
contract and the recently announced $5.2 million contract to
manufacture multi-family housing units for U.S. Army, are expected
to generate significant revenue for KBS in 2020. KBS is currently
involved in multiple discussions for various large commercial
construction projects for the New England market and its potential
sales pipeline currently totals more than $50 million. To fund
working capital for these projects, in May 2020, we raised $5.5
million (before fees and expenses) through a public equity offering
of 2.45 million common shares, which includes the full exercise of
the underwriter’s overallotment which closed on June 10, 2020.”
About Digirad
CorporationDigirad Corporation is a diversified holding
company with three divisions: Healthcare, Building &
Construction, and Real Estate & Investments.
Healthcare Division (Digirad
Health)Digirad Health designs, manufactures, and
distributes diagnostic medical imaging products and services.
Digirad Health operates in three businesses: Diagnostic Imaging,
Diagnostic Services, and Mobile Healthcare. The Diagnostic
Imaging business designs, manufactures, and sells proprietary
solid-state gamma cameras. It also services the installed base of
these proprietary cameras. The Diagnostic Services business offers
imaging and monitoring services to healthcare providers as an
alternative to purchasing equipment or outsourcing procedures. The
Mobile Healthcare business provides contract diagnostic
imaging, including computerized tomography (“CT”), magnetic
resonance imaging (“MRI”), positron emission tomography (“PET”),
PET/CT, and nuclear medicine and healthcare expertise through a
convenient, mobile service.
Building & Construction Division
(ATRM)ATRM Holdings, Inc. (“ATRM”) manufactures modular
housing units for commercial and residential real estate projects.
ATRM operates in two businesses: (i) modular building manufacturing
and (ii) structural wall panel and wood foundation manufacturing,
including building supply retail operations. The modular building
manufacturing business is operated by KBS Builders, Inc. (“KBS”),
the structural wall panel and wood foundation manufacturing segment
is operated by EdgeBuilder, Inc. (“EdgeBuilder”), and the retail
building supplies are sold through Glenbrook Building Supply, Inc.
(“Glenbrook”). KBS, EdgeBuilder, and Glenbrook are wholly-owned
subsidiaries of ATRM, which is a wholly-owned subsidiary of
Digirad.
Real Estate & Investments
DivisionThis business division manages the Company’s real
estate assets and investments.
Forward-Looking Statements Disclaimer
Statement“Safe Harbor” Statement under the Private
Securities Litigation Reform Act of 1995: This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements in this
release that are not statements of historical fact are hereby
identified as “forward-looking statements” for the purpose of the
safe harbor provided by Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Forward-looking Statements include, without limitation,
statements regarding (i) the plans and objectives of management for
future operations, including plans or objectives relating to
acquisitions and related integration, development of commercially
viable products, novel technologies, and modern applicable
services, (ii) projections of income (including income/loss),
EBITDA, earnings (including earnings/loss) per share, free cash
flow (FCF), capital expenditures, cost reductions, capital
structure or other financial items, (iii) the future financial
performance of Digirad Corporation or acquisition targets and (iv)
the assumptions underlying or relating to any statement described
above. Moreover, forward-looking statements necessarily involve
assumptions on the Company’s part. These forward-looking statements
generally are identified by the words “believe”, “expect”,
“anticipate”, “estimate”, “project”, “intend”, “plan”, “should”,
“may”, “will”, “would”, “will be”, “will continue” or similar
expressions. Such forward-looking statements are not meant to
predict or guarantee actual results, performance, events or
circumstances and may not be realized because they are based upon
the Company's current projections, plans, objectives, beliefs,
expectations, estimates and assumptions and are subject to a number
of risks and uncertainties and other influences, many of which the
Company has no control over. Actual results and the timing of
certain events and circumstances may differ materially from those
described above as a result of these risks and uncertainties.
Factors that may influence or contribute to the inaccuracy of
forward-looking statements or cause actual results to differ
materially from expected or desired results may include, without
limitation, the substantial amount of debt of the Company and the
Company’s ability to repay or refinance it or incur additional debt
in the future; the Company’s need for a significant amount of cash
to service and repay the debt and to pay dividends on the Company’s
preferred stock; the restrictions contained in the debt agreements
that limit the discretion of management in operating the business;
legal, regulatory, political and economic risks in markets and
public health crises that reduce economic activity and cause
restrictions on operations (including the recent coronavirus
COVID-19 outbreak); the length of time associated with servicing
customers; losses of significant contracts; disruptions in the
relationship with third party vendors; accounts receivable
turnover; insufficient cash flows and resulting in liquidity; the
Company's inability to expand the Company's business; unfavorable
changes in the extensive governmental legislation and regulations
governing healthcare providers and the provision of healthcare
services and the competitive impact of such changes (including
unfavorable changes to reimbursement policies); high costs of
regulatory compliance; the liability and compliance costs regarding
environmental regulations; the underlying condition of the
technology support industry; the lack of product diversification;
development and introduction of new technologies and intense
competition in the healthcare industry; existing or increased
competition; risks to the price and volatility of the Company’s
common stock and preferred stock; stock volatility and in
liquidity; risks to preferred stockholders of not receiving
dividends and risks to the Company’s ability to pursue growth
opportunities if the Company continues to pay dividends according
to the terms of the Company’s preferred stock; the Company’s
ability to execute on its business strategy (including any cost
reduction plans); the Company’s failure to realize expected
benefits of restructuring and cost-cutting actions; the Company’s
ability to preserve and monetize its net operating losses; risks
associated with the Company’s possible pursuit of acquisitions; the
Company’s ability to consummate successful acquisitions and execute
related integration, including to successfully integrate ATRM’s
operations and realize the synergies from the acquisition of ATRM,
as well as factors related to the Company’s business (including
ATRM) including economic and financial market conditions generally
and economic conditions in the Company’s markets; failure to keep
pace with evolving technologies and difficulties integrating
technologies; system failures; losses of key management personnel
and the inability to attract and retain highly qualified management
and personnel in the future; and the continued demand for and
market acceptance of the Company’s services. For a detailed
discussion of cautionary statements and risks that may affect the
Company’s future results of operations and financial results,
please refer to the Company’s filings with the Securities and
Exchange Commission, including, but not limited to, the risk
factors in the Company’s most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. This release reflects management’s
views as of the date presented.
All forward-looking statements are necessarily
only estimates of future results, and there can be no assurance
that actual results will not differ materially from expectations,
and, therefore, you are cautioned not to place undue reliance on
such statements. Further, any forward-looking statement speaks only
as of the date on which it is made, and we undertake no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events.
For more information contact: |
|
Digirad
Corporation |
The Equity
Group |
Jeffrey E. Eberwein |
Lena Cati |
Chairman of the Board |
The Equity Group |
203-489-9501 |
212-836-9611 |
ir@digirad.com |
lcati@equityny.com |
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