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NightHawk third quarter results show scan volume up 1%, prices off 3%

October 30, 2008 NightHawk third quarter results show scan volume up 1%, prices off 3% COEUR D'ALENE, Idaho, Oct 29 -- NightHawk Radiology Holdings announced Wednesday financial results for its third quarter ended Sept. 30. The following are third quarter 2008 highlights: * Revenue was $43.4 million compared with $45.2 million in the year-ago quarter. Scan volume grew 1% to 792,000 scans while pricing declined 3%. * Revenue from new service offerings, including final reads and business services, was $8.9 million, or 20% of total revenue. Final reads revenue increased 34% to $4.9 million, or 11% of total revenue. * Adjusted net income was $6.2 million, or $0.21 per diluted share, compared with $8.0 million, or $0.26 per diluted share, in the year-ago quarter. Adjusted net income excludes noncash charges for stock compensation, amortization of intangible assets, and malpractice reserve adjustments. Adjusted net income in the third quarter of 2008 also excludes a pretax restructuring charge of $0.7 million ($0.4 million after tax) related to the closure of redundant facilities. * GAAP net income was $3.3 million, or $0.11 per diluted share, compared with $3.8 million, or $0.12 per diluted share, in the third quarter of 2007. * Cash flow from operations increased 100% to a record $9.6 million, up from $4.8 million in the third quarter of 2007. Free cash flow was a record $8.8 million during the quarter, up 144% from $3.6 million in the third quarter of 2007. * Cash and cash equivalents on hand at Sept. 30 totaled $55.2 million. "Considering the modest sequential increase in scan volume and revenue, we were able to increase adjusted earnings sequentially by 13% through improved productivity and prudently focusing on our costs," said Dr. Paul Berger, chair and CEO. "Our overall financial position remains very strong with $55.2 million in cash on hand and record cash flow from operations of $9.6 million during the third quarter and $22.9 million for the first nine months of 2008. We also saw encouraging results from our initiatives focused on improving our customer service and sales execution.

See full article and related articles at DiagnosticImaging.com
This article was republished with permission from CMPMedica, LLC

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