November 1, 2007 - NightHawk Radiology Holdings Inc. today announced financial results for its third quarter, with a revenue growth of 79 percent 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 percent. The company also achieved strong adjusted EPS growth of 24 percent in the third quarter, while making significant investments in acquisitions, infrastructure, and management necessary to enhance its platform for future growth.
Organic revenue grew 24 percent year-over-year and organic scan volume grew 28 percent year-over-year and the nine months ended Sept. 30, 2007, cash flow from operations grew 20 percent 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 pecent of total revenue for the quarter and 12 percent 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.
For more information: www.nighthawkrad.net