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]
Star Equity (STRR) - 2019 Q2 - Earnings Call Transcript