NightHawk Radiology Holdings, Inc. Releases Record Third Quarter 2007 Results
biz.yahoo.com
Tuesday October 30, 6:59 pm ET
Revenue Tops $45 Million Reflecting 79% Growth Over Prior Year Quarter; Company Revises 2007 Guidance and Reaffirms 2008 Guidance
COEUR D'ALENE, Idaho, Oct. 30 /PRNewswire-FirstCall/ -- NightHawk Radiology Holdings, Inc. (Nasdaq: NHWK), the leading provider of radiology solutions to radiology groups across the United States, today announced financial results for its third quarter ended September 30, 2007. Revenue grew 79% year-over-year to a record $45.2 million in the third quarter of 2007 from $25.2 million in the third quarter of 2006. Excluding the impact of acquisitions, the company experienced significant year-over-year organic revenue growth of 24%. The company also achieved strong adjusted EPS growth of 24% in the third quarter, while making significant investments in acquisitions, infrastructure, and management necessary to enhance its platform for future growth.
Third-Quarter Highlights
-- Third quarter 2007 revenues grew 79% to $45.2 million from $25.2
million in the third quarter 2006. Third quarter 2007 scan volumes
grew 70% to an all-time high of 787,673 scans compared with 463,028
scans in the third quarter 2006.
-- Organic revenue grew 24% year-over-year and organic scan volume grew
28% year-over-year.
-- For the nine months ended September 30, 2007, cash flow from
operations grew 20% to $17.5 million from $14.6 million for the same
period in 2006.
-- New service offerings, primarily daytime final reads and business
services, represented 18% of total revenue for the quarter and 12% of
total year-to-date revenue.
-- Adjusted net income grew to $8.0 million, or $0.26 per diluted share
in the third quarter 2007, from $6.5 million, or $0.21 per diluted
share in the third quarter 2006. Adjusted net income was impacted by
the record scan volumes and revenues, higher expenses associated with
acquired companies where integration is not yet complete, interest
expense on acquisition-related debt financing, and additional
investments necessary to support future growth.
-- GAAP net income was $3.8 million, or $0.12 per diluted share,
compared to $5.6 million, or $0.18 per diluted share in the third
quarter 2006. GAAP net income was impacted by higher expenses
associated with acquired companies where integration is not yet
complete; interest expense on acquisition-related debt financing;
additional investments necessary to support future growth; and higher
non-cash charges for stock compensation, IBNR (incurred but not
reported medical liability reserves), and amortization of
intangibles.
-- On July 16, 2007, the company acquired Midwest Physician Services,
LLC, the business services division of St. Paul Radiology. With this
acquisition, NightHawk expanded its service offerings and now
provides the broadest suite of integrated radiology solutions
available - professional services, clinical workflow technology, and
business services. The acquisition further distinguishes NightHawk as
the leading provider of radiology solutions.
2007 and 2008 Guidance
-- The company revised its full year 2007 guidance for revenue and
adjusted earnings per diluted share. Full year 2007 revenue guidance
was lowered from $155-$162 million to $152-$155 million. Full year
2007 guidance for adjusted earnings per diluted share was narrowed
from $0.94-$0.98 to $0.94-$0.96. The company expects to finish 2007
strongly and reaffirmed its 2008 guidance of $215-$225 million in
revenue and $1.31-$1.36 in adjusted earnings per diluted share. |
