- Beats the upper end of previously announced 2014 financial guidance
- Year over year revenue growth of 13% for the quarter and twelve months ended 2014
- Announces financial guidance for 2015
- Discusses acquisition of MD Office Solutions
SUWANEE, Ga., March 6, 2015 (GLOBE NEWSWIRE) -- Digirad Corporation (Nasdaq:DRAD) today reported its financial results for the fourth quarter and twelve months ended December 31, 2014.
Total revenues for the 2014 fourth quarter were $14.1 million, an increase of 13 percent compared to the prior year’s fourth quarter revenues of $12.5 million. Adjusted net income for the 2014 fourth quarter was $892,000, or $0.05 per diluted share, compared to adjusted net income $873,000, or $0.05 per diluted share in the prior year’s fourth quarter. Adjusted EBITDA for the 2014 fourth quarter was $1.5 million, compared to $1.3 million for the prior year quarter.
Total revenues for all of 2014 were $55.6 million, an increase of 13 percent compared to 2013 revenue of $49.4 million. Adjusted net income for all of 2014 was $3.5 million, or $0.18 per diluted share, compared to adjusted net income of $645,000, or $0.03 per diluted share for 2013. Adjusted EBITDA for all of 2014 was $5.5 million, compared to $2.6 million for 2013. A reconciliation of adjusted net income and adjusted EBITDA is provided later in this release.
Digirad President and CEO Matt Molchan said, “I am extremely pleased with the results this quarter, and also for all of 2014. We have closed out a very successful year for Digirad, not just financially, but strategically and operationally as well.”
Molchan continued, “With 2014 closed out, we are now focusing our efforts on growing our business in 2015 in the near term, and in the long-term, our overall strategic plan of organic growth, growth from new services, and growth from financially disciplined acquisitions. To that point, I am very pleased about our other announcement this morning, the acquisition of MD Office Solutions. MD Office is a very well-run business that puts us in a market that we are not currently in, and we are very excited about the potential this acquisition brings. Finally, we continue to believe the market is moving in our direction and we believe there are other potential opportunities from disciplined acquisitions in the healthcare services arena moving forward.”
The Company’s cash, cash equivalents and available-for-sale securities balance at December 31, 2014 was $22.0 million, a slight increase from the September 30, 2014 balance of $21.8 million. Cash activity for the quarter mainly included cash generation from the businesses, partially offset by payment of cash dividends.
2015 Financial Guidance
For fiscal year 2015, the Company expects to generate revenues between $61.0 million and $63.0 million; non-GAAP adjusted diluted earnings per share between $0.19 and $0.21; and non-GAAP adjusted EBITDA between $6.5 million and $6.9 million.
The Company’s non-GAAP financial measure adjusted diluted earnings per share excludes restructuring charges and acquired intangible asset amortization. Adjusted EBITDA further excludes stock-based compensation expense.
Conference Call Information
A conference call is scheduled for 11:00 a.m. EST on March 6, 2015 to discuss the results and management’s outlook. The call may be accessed by dialing 1-877-407-9039 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 operating expenses,” “adjusted net income (loss),” “adjusted net income (loss) per diluted share” and “adjusted EBITDA.” The most directly comparable measure for these non-GAAP financial measures are operating expenses, net income (loss) and diluted net income (loss) per share. The Company has included below unaudited adjusted financial information, which present the Company’s results of operations after excluding restructuring charges, acquired intangible asset amortization, and gain on the sale of assets and license agreement, and in the measure of adjusted EBITDA, 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 6, 2015.
About Digirad Corporation
Digirad delivers convenient, effective, and efficient diagnostic solutions on an as needed, when needed, and where needed basis. Digirad is one of the largest national providers of in-office nuclear cardiology and ultrasound imaging services, and also provides cardiac event monitoring services. These services are provided to physician practices, hospitals and imaging centers through its Diagnostic Services business. Digirad also sells medical diagnostic imaging systems, including solid-state gamma cameras, for nuclear cardiology and general nuclear medicine applications, as well as provides service on the products sold through its Diagnostic Imaging business. For more information, please visit www.digirad.com. Digirad® and Cardius® are registered trademarks of Digirad Corporation.
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.
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