COEUR D'ALENE, Idaho, Aug. 5, 2009 (GLOBE NEWSWIRE) -- NightHawk Radiology Holdings, Inc. (Nasdaq:NHWK), the leading provider of radiology solutions to radiology groups across the United States, today announced financial results for second quarter 2009.
Second Quarter 2009 Highlights
* Revenue grew $3.5 million sequentially, or 9%, to $42.3 million
driven by robust same site volume growth, improved customer
retention and healthy revenue growth from new customers.
* Final scan revenue increased 18% sequentially to $5.9 million, and
now represents 14% of total revenue.
* Total scan volume reached a record high of approximately 817,000
scans during the quarter.
* Adjusted net income was $4.4 million, or $0.16 per diluted share.
Adjusted net income excludes non-cash charges for stock
compensation, amortization of intangible assets, losses on
cancelled interest rate swap contracts, mark to market gains on
interest rate hedge contracts and malpractice reserve adjustments.
* GAAP net income was $2.1 million, or $0.08 per share. A
reconciliation of adjusted net income to GAAP net income is
included in the tables attached to this press release.
* Cash flow from operations grew 11% to $8.3 million, up from
$7.5 million in the year-ago quarter. Free cash flow was
$7.2 million during the quarter, an increase of 22% from
$5.9 million in the year-ago quarter.
* Cash and investments at June 30, 2009 totaled $52.1 million.
"We are very pleased with our second quarter operating results and continued strong cash flow. Looking ahead, we are confident that the initiatives on which we are focused will continue to enhance long term shareholder value. These initiatives leverage our position as the leading provider of high quality, high value solutions to the radiology marketplace," said David Engert, the company's president and chief executive officer.
Third Quarter 2009 Outlook
The company expects scan volume and revenue for the third quarter of 2009 to increase sequentially from the second quarter, with revenue expected to be in the range of $42 to $43 million. The company also expects third quarter 2009 adjusted earnings per share to be in the range of 15 to 16 cents.
Forward Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding the company's outlook on its scan volume, revenue and adjusted earnings per share for the third quarter of 2009 and statements regarding our ability to enhance shareholder value in the future. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, competitive conditions in the radiology industry, and regulatory risks. Other factors that could cause operating and financial results to differ are described in the company's periodic reports filed with the Securities and Exchange Commission (SEC). Other risks may be detailed from time to time in reports to be filed with the SEC. NightHawk does not undertake any obligation to publicly update its forward-looking statements based on events or circumstances after the date hereof.
Earnings Conference Call
The second quarter conference call will be held today, August 5, 2009 at 4:30 p.m. eastern. A live webcast of the conference call, as well as a replay, will be available online on the company's corporate website at http://www.nighthawkrad.net. Participants can also access the call by dialing (877)941-6013 or (480)629-9770 (for international callers). A replay of the call will be available approximately two hours after the conclusion of the call and will remain available until midnight (ET) on Wednesday, August 26, 2009. To access the replay, dial (800)406-7325 or (303)590-3030 (for international callers) and enter the conference ID number: 4123256.
About NightHawk
NightHawk Radiology (Nasdaq:NHWK) is leading the transformation of the practice of radiology by providing high-quality, cost-effective solutions to radiology groups and hospitals throughout the United States. NightHawk provides the most complete suite of solutions, including professional services, business services, and its advanced, proprietary clinical workflow technology, all designed to increase efficiencies and improve the quality of patient care and the lives of physicians who provide it. NightHawk's team of U.S. board-certified, state-licensed, and hospital-privileged physicians located in the United States, Australia, and Switzerland, provides services 24 hours a day, seven days a week, to approximately 1,590 sites, representing approximately 28% of all hospitals in the United States. For more information, visit http://www.nighthawkrad.net.
The NightHawk Radiology Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5531
Presentation of Non-GAAP Financial Information
The presentation of adjusted net income and adjusted earnings per diluted share are not measures of financial performance under GAAP and should not be considered a substitute for or superior to GAAP. Management believes these non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses that may not be indicative of our core results and provide consistency in financial reporting. Specifically, the company's non-GAAP adjusted net income measure, and related adjusted earnings per diluted share, described in this release exclude (i) the non-cash charges related to our stock-based compensation, (ii) the non-cash expense associated with the amortization of intangibles associated with acquisitions, (iii) the non-cash expenses (or credits) associated with adjustments to our IBNR reserve (incurred but not reported medical liability reserves), (iv) the non-cash charges for goodwill impairment, (v) the non-cash charge for the amortization of losses incurred on cancelled interest rate swap contracts, and (vi) the non-cash gain (or loss) resulting from mark to market adjustments of our interest rate hedge contracts. We exclude the non-cash charges related to our stock-based compensation due to the varying valuation methodologies, subjective assumptions and the variety of types of awards that companies can use when applying FAS 123R along with the fact that a substantial portion of our outstanding options and restricted stock units are held by our independent contractor physicians and require accounting treatment that differs from the accounting treatment for options and restricted stock units held by employees.
The company provides non-GAAP adjusted net income and related adjusted earnings per diluted share as financial measures because management believes these measures provide greater transparency with respect to information used by management in its financial and operational decision making and to enhance investors' overall understanding of our current financial performance and our future prospects. For reconciliation of our non-GAAP financial measures to the most applicable GAAP financial measure, please refer to the information included in the attached tables of this press release and in the Investor Relations section of our corporate website.
"NHWKF"
NIGHTHAWK RADIOLOGY HOLDINGS, INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS (unaudited)
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June 30, Dec.
