Digirad Corporation (DRAD) Q3 2020 Earnings Conference Call November 13, 2020 11:00 AM ET Company Participants Jeffrey Eberwein - Chairman Matt Molchan - Chief Executive Officer Dave Noble - Chief Operating and Chief Financial Officer Conference Call Participants Theodore O'Neill - Litchfield Hills Tate Sullivan - Maxim Group Jeff Kobylarz - Diamond Bridge Capital Michael Santelli - Ancora Advisors Operator Greetings, ladies and gentlemen, and welcome to the Digirad Corporation Third Quarter 2020 Results Co ...

Financial Data and Key Metrics Changes - Revenue for the Healthcare division fell by 32.9% to $17.3 million in Q2 2020 compared to the same period last year, primarily due to the COVID-19 pandemic [24][25] - Gross profit for Q2 2020 decreased by 41.4% compared to the same period last year, reflecting lower revenue [24] - The company reported a net loss from continuing operations of $1.3 million in Q2 2020, an improvement from a net loss of $1.5 million in Q2 2019 [30] - Non-GAAP adjusted net loss was $0.3 million or $0.11 per share in Q2 2020, compared to adjusted net income of $87,000 or $0.04 per share in the same quarter last year [30] - Non-GAAP adjusted EBITDA decreased to $1.8 million in Q2 2020 from $2.1 million in Q2 2019 [32] Business Line Data and Key Metrics Changes - In the Diagnostic Services segment, revenue fell to $7.1 million with a gross margin of 13.3%, down from $12.3 million and 22.8% in the prior year [25] - Mobile Healthcare revenue was $7.8 million with a gross margin of 10.9%, compared to $10.4 million and 12.4% in the previous year [26] - Diagnostic Imaging revenue was $2.3 million with a gross margin of 52.8%, down from $3.0 million and 35.4% in the prior year, but gross margin improved due to lower costs [27] - The Building & Construction division generated $5 million in revenue with a gross margin of 20.9% in Q2 2020, with no prior year data available due to the merger timing [28] Market Data and Key Metrics Changes - The company noted a slow but steady return to normal operations in late June as doctor offices reopened and hospitals resumed non-emergency procedures [15] - The Building & Construction division faced startup delays on major projects but secured significant contracts worth $5.2 million and $2 million for the U.S. Army and military veterans, respectively [17] Company Strategy and Development Direction - The company is focused on growth through internal investments and acquisitions, with plans to create new business divisions over time [12] - There is an ongoing exploration of divesting non-strategic assets to finance expansion, particularly in the Building & Construction division [13] - The company aims to expand its commercial construction business in New England and may consider reopening its Oxford, Maine plant to double production capacity if growth continues [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in managing business operations amid the COVID-19 pandemic and expects the second half of 2020 to align with initial projections made before the pandemic [21] - The company anticipates that Q3 will outperform Q2, and Q4 will be better than Q3, with a potential return to pre-COVID operational levels [45] - Management highlighted a robust sales pipeline and increased inquiries in the Building & Construction division, indicating strong future demand [63] Other Important Information - The company raised $5.5 million through a public offering in May 2020, which helped mitigate some supply chain challenges [14][38] - As of June 30, 2020, the company had cash and cash equivalents of $9.3 million, significantly up from $1 million a year ago [51] Q&A Session Summary Question: Supply chain issues related to lumber shortages - Management acknowledged price increases due to production shortages but confirmed no actual shortages experienced, operating at full capacity [37] Question: Future bidding activity and project pipeline - Management indicated robust sales activity and a full booking schedule, with ongoing monitoring of lead times [39] Question: Outlook for the Healthcare division - Management noted that while some areas are seeing reduced patient volume, there is pent-up demand for examinations, and operations are returning to normal [49] Question: Potential for positive cash flow - Management expressed strong confidence in achieving positive cash flow in the second half of the year, despite the need for increased working capital as sales rise [47] Question: Evaluation of non-core asset sales - Management confirmed ongoing evaluations of non-core assets, with past sales contributing significant revenue [53] Question: Revenue expectations for 2021 - Management projected potential revenue of $150 million for 2021 if the Healthcare division returns to pre-COVID levels and the Building & Construction division continues to grow [82]

Digirad Corporation (DRAD) Q1 2020 Earnings Conference Call May 15, 2020 11:00 AM ET Company Participants Jeff Eberwein - Chairman Matt Molchan - Chief Executive Officer David Noble - Chief Operating Officer and Chief Financial Officer Conference Call Participants Theodore O'Neill - Litchfield Hills Research Operator Greetings ladies and gentlemen, welcome to the Digirad Corporation First Quarter 2020 Results Conference Call. As a reminder, certain statements made during this conference call including the q ...

Common Stock Nasdaq: DRAD Series A 10% Preferred Stock Nasdaq: DRADP DIGIRAD Corp. A Diversified Holding Company (HoldCo) seeking growth both organically and through acquisitions | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|------------|-------|-------------------------|-------|-------|-------|---------------------------|-------| | | | | | | | | | | | | Healthcare | | Building & Construction | | | | Real Estate & Investments | | | | | | | | | | | | Forward-looking Statements "Safe Harbor ...

Digirad Corporation (DRAD) Q4 2019 Earnings Conference Call March 6, 2020 10:00 AM ET Company Participants Jeff Eberwein - Chairman Matt Molchan - Chief Executive Officer David Noble - Chief Operating Officer and Chief Financial Officer Conference Call Participants Theodore O'Neill - Litchfield Hills Research Operator Greetings ladies and gentlemen and welcome to the Digirad Corporation Fourth Quarter and Year End 2019 Results Conference Call. As a reminder, certain statements made during this conference ca ...

Digirad Corporation (DRAD) Q3 2019 Earnings Conference Call November 14, 2019 10:00 AM ET Company Participants Jeff Eberwein - Chairman Matt Molchan - CEO David Noble - COO and CFO Conference Call Participants Operator Greetings, ladies and gentlemen, and welcome to Digirad Corporation's Third Quarter 2019 Earnings Conference Call. As a reminder, certain statements made during this conference call, including the questionand-answer period, are forward-looking statements within the meaning of the Private Secu ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2019 was $25.8 million, down from $27.1 million in Q2 2018, with a gross margin of 19.4% compared to 20.6% in the prior year [11] - For the first six months of 2019, total revenue was $49.7 million, down from $52.5 million in the same period of 2018, with a gross margin of 18.1% compared to 19.4% [11] - Adjusted net loss for Q2 2019 was $0.09 million, compared to an adjusted net income of $0.4 million in Q2 2018 [16] - Adjusted EBITDA for Q2 2019 was $2.1 million, down from $2.7 million in Q2 2018 [17] Business Line Data and Key Metrics Changes - **Diagnostic Services**: Revenue was $12.3 million with a gross margin of 22.8%, compared to $13.3 million and 22.4% in Q2 2018 [12] - **Mobile Healthcare**: Revenue was $10.4 million with a gross margin of 12.4%, down from $11.1 million and 12.0% in the prior year [14] - **Diagnostic Imaging**: Revenue was $3 million with a gross margin of 35.4%, compared to $2.8 million and 45.9% in Q2 2018 [15] Market Data and Key Metrics Changes - The overall performance of all three operating units exceeded expectations for revenue and adjusted EBITDA in Q2 2019, with Diagnostic Imaging experiencing an 11% year-over-year revenue growth [10] Company Strategy and Development Direction - The company is progressing towards its HoldCo strategy, which aims to maximize long-term shareholder value [10] - The proposed merger with ATRM Holdings Incorporated is a significant step towards forming HoldCo, with expectations for high return internal investments and attractive acquisition opportunities [20][21] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the second quarter results, which were ahead of expectations for revenue and adjusted EBITDA [19] - The company confirmed its financial guidance for 2019, projecting revenues from continuing operations between $95 million and $100 million [19] Other Important Information - The company reported an operating cash inflow of $2.6 million for Q2 2019, with a free cash inflow of $2.2 million in the same period last year [18] - As of June 30, 2019, the outstanding balance of the credit facility was $15.3 million, with a net debt position of $14.5 million [18] Q&A Session Summary - There were no questions during the Q&A session [23]

Digirad Corporation (DRAD) Q1 2019 Results Earnings Conference Call May 3, 2019 11:00 AM ET Company Participants Matt Molchan – President and Chief Executive Officer Conference Call Participants Operator Greetings, and welcome to Digirad Corporation's First Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] And as a reminder, this conference is being recorded. It is now my ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2018 was $25.9 million, a slight decrease from $26.3 million in Q4 2017. For the full year 2018, total revenue was $104.2 million compared to $104.6 million in 2017 [15][12] - Overall gross margin for Q4 2018 was 14.4%, down from 17.2% in Q4 2017. For the full year 2018, gross margin was 17.5%, compared to 20.3% in 2017 [15][12] - Adjusted net loss for Q4 2018 was $1.2 million or $0.06 per share, an improvement from an adjusted net loss of $1.4 million or $0.07 per share in Q4 2017 [22] - Adjusted EBITDA for Q4 2018 was $800,000, consistent with Q4 2017 [23] Business Line Data and Key Metrics Changes - In Diagnostic Services, Q4 revenue was $11.6 million with a gross margin of 15.8%, compared to $12.1 million and 14.8% in Q4 2017. For 2018, revenue was $49.3 million with a gross margin of 19.2% [16] - Mobile Healthcare business revenue for Q4 was $10.8 million with a gross margin of 4.0%, unchanged from Q4 2017. For 2018, revenue was $42.9 million with a gross margin of 8.6% [19] - Diagnostic Imaging revenue for Q4 was $3.6 million with a gross margin of 41.2%, compared to $3.4 million and 45.5% in Q4 2017. For 2018, revenue was $12 million with a gross margin of 42.9% [20] Market Data and Key Metrics Changes - The company faced challenges due to weather-related issues impacting Diagnostic Services, but still managed to grow gross profit percentage [16] - The increase in Diagnostic Services revenue was attributed to a higher volume of imaging days and studies performed, despite a loss of revenue from the sale of the Telerythmics business [17] Company Strategy and Development Direction - The company is transitioning towards a HoldCo strategy, which is expected to enhance growth and maximize shareholder value over the long term [11][27] - The merger with ATRM Holdings is anticipated to close in the second half of 2019, with a focus on high-return internal investments and acquisitions [26][27] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to business conditions and the sale of two operating units in 2018 but noted that they met revenue and free cash flow expectations [12] - The company plans to evaluate share repurchases against organic growth investments and acquisitions as part of its HoldCo strategy [27] Other Important Information - The company paid down $10 million in debt during 2018, with $4 million paid down in Q4 alone [12] - As of December 31, 2018, the outstanding balance of the credit facility was $9.5 million, and the overall net debt position was $8 million [25] Q&A Session Summary Question: Any details on the ATRM acquisition? - Management indicated that ATRM is focused on completing its financials and SEC filings, with more information expected in Q2 [32] Question: Update on capital allocation and stock repurchase activity? - Management confirmed that the stock repurchase window has not been open yet due to specific criteria that need to be met [34][36] Question: Does the ATRM transaction affect the stock repurchase window? - Management clarified that the announced information does not close the window unless there is undisclosed material information [38]