NightHawk Radiology Holdings, Inc. Announces Fourth Quarter and Full-Year 2007 Results; Updates 2008 Guidance
biz.yahoo.com
Wednesday February 13, 4:02 pm ET
COEUR D'ALENE, Idaho, Feb. 13 /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 fourth quarter and full year ended December 31, 2007.
2007 Highlights
-- Full year revenues grew 65% to $151.7 million from $92.2 million for
the full-year 2006. Organic revenue grew $21.4 million, or 23%
year-over-year, while acquisitions contributed an additional
$38.1 million of revenue for the full year.
-- New service offerings represented 15% of total revenue, or
$22.4 million, including final interpretations at 8% of total revenue,
or $12.1 million, and business services at 7% of total revenue, or
$9.9 million.
-- The company completed and integrated three acquisitions: Teleradiology
Diagnostic Service, Inc. (TDS) in February, Radlinx Group, Ltd. in
April, and Midwest Physician Services, LLC in July. Through these
acquisitions, NightHawk increased its market share and the number of
affiliated radiologists providing professional interpretations, and
expanded its service offerings to include business services such as
revenue cycle management, accounting and financial management, and
transcription and records management. NightHawk provides the broadest
suite of integrated radiology solutions available.
-- The company ended the year providing services to nearly 1,500 sites,
representing approximately 26% of all hospitals in the United States.
Full-Year Results
-- Full-year revenue grew 65% to $151.7 million from $92.2 million for the
full-year 2006. Full-year scan volumes grew 62% to 2.7 million, scans
compared with 1.7 million scans in 2006.
-- Organic revenue and organic scan volumes grew 23% and 27%,
respectively, year-over-year.
-- New service offerings, including daytime final and subspecialty reads,
cardiac 3D reconstructions and interpretations, and business services,
represented 15% of total revenue for the year. Final interpretations
comprised approximately 8% of revenue.
-- Adjusted net income grew 35% to $28.3 million, or $0.91 per diluted
share, from $20.9 million, or $0.70 per diluted share in the prior
year. The company's adjusted net income excludes certain non-cash
charges, including stock compensation, IBNR reserve and the
amortization of intangibles associated with acquisitions. Also excluded
from the calculation of 2007 adjusted earnings per diluted share is a
one-time charge of approximately $0.5 million related to the settlement
of an acquisition-related legal dispute with a former advisor.
-- GAAP net income was $14.7 million, or $0.47 per diluted share, compared
to ($28.5) million, or ($1.00) per diluted share in the same period of
2006. GAAP net income was impacted by higher non-cash charges for stock
compensation, IBNR, and amortization of intangibles and, in 2006, a
pre-IPO non cash expense related to the company's then outstanding
preferred stock.
-- The company's 2007 results were impacted by slightly lower fourth
quarter scan volumes due to greater than expected seasonality and a
delay in transitioning the former Radlinx physician contracts to the
company's compensation model to late in the fourth quarter.
Fourth-Quarter Results
-- Fourth quarter 2007 revenue grew 77% to $42.7 million from
$24.1 million in the fourth quarter 2006. Fourth quarter 2007 scan
volumes grew 63% to 730,992 scans compared with 448,084 scans in the
fourth quarter 2006.
-- Fourth quarter organic revenue and organic scan volume grew 19% and
24%, respectively, year-over-year.
-- New service offerings, primarily daytime final reads and business
services, represented 21%, or $8.8 million, of total revenue for the
quarter.
-- Adjusted net income for the fourth quarter of 2007 grew 72% to
$8.1 million, or $0.26 per diluted share, from $4.7 million, or
$0.15 per diluted share in the fourth quarter 2006.
-- GAAP net income grew 41% to $3.1 million, or $0.10 per diluted share,
compared to $2.2 million, or $0.07 per diluted share in the fourth
quarter 2006.
Updated Full-Year 2008 Guidance
The company updated its full-year 2008 guidance for revenue and adjusted earnings per diluted share. Full year 2008 revenue is now projected to be in the range of $195-$205 million, and adjusted earnings per diluted share is projected to be in the range of $1.10-$1.20.
"Our business continues to remain fundamentally strong, and we are pleased with our continued organic growth, our success at integrating acquisitions, and the traction we've achieved with our new service offerings. NightHawk has the leading market presence, a scalable business with high operating margins and strong cash flows, and a brand that is synonymous with quality and service, leaving us well positioned to execute on our vision," said Dr. Berger. |
