SCOTTSDALE, Ariz., Nov. 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 its financial results for third quarter 2009.

Third Quarter 2009 Highlights

 * Revenue was $43.5 million driven by record total scan volume of
   865,000 scans.
 * Final read revenue increased 40% from the year-ago quarter as
   final scan volumes increased 56%.
 * Adjusted net income was $4.3 million, or $0.17 per diluted share
   at the high end of the company's guidance range of 16 to 17 cents
   and 1 cent better than consensus estimates. Adjusted net income
   excludes non-cash charges for stock compensation, amortization of
   intangible assets, losses on cancelled interest rate swap
   contracts, mark to market adjustments on interest rate hedge
   contracts, malpractice reserve adjustments, and restructuring
   charges.
 * GAAP net income was $1.7 million, or $0.07 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 was $6.3 million and free cash flow
   generated during the quarter was $4.8 million.
 * Cash and investments at September 30, 2009 totaled $30.9 million

"We are pleased with our third quarter operating results, particularly our all-time record scan volumes and robust growth in our final reads business. These results reflect our improved execution as well as continued strong demand for teleradiology services," said David Engert, the company's president and chief executive officer.

Fourth Quarter 2009 Outlook

Consistent with both our historical experience and normal industry seasonality, the company expects scan volumes to decline sequentially in the fourth quarter from the third quarter. Revenue for the fourth quarter of 2009 is expected to be in the range of $38 to $40 million and fourth quarter 2009 adjusted earnings per diluted share is expected to be in the range of 8 to 10 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 fourth quarter of 2009. 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 third quarter conference call will be held today, November 5, 2009 at 4:30 p.m. eastern time. 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 (888)549-7880 or (480)629-9039 (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 eastern time on Thursday, November 26, 2009. To access the replay, dial (800)406-7325 or (303)590-3030 (for international callers) and enter the conference ID number: 4176845.

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 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 1,580 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, (vi) the non-cash gain (or loss) resulting from mark to market adjustments of our interest rate hedge contracts, and (vii) non-cash charges and adjustments for restructuring activities. 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 The Compensation Topic of the FASB Accounting Standards Codification (Topic 718) (formerly Stock Compensation, 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
                CONSOLIDATED BALANCE SHEETS (unaudited)
                                                 Sept. 30,   Dec.