NightHawk Radiology Holdings Inc. (NHWK, Financial) filed Quarterly Report for the period ended 2009-06-30.
NightHawk Radiology Services is the world\'s leading provider of overnight and off-hour radiology coverage for hospitals clinics and imaging centers across America. NightHawk is a radiology coverage pioneer with a combined experience in radiology and teleradiology as well as an accreditation by the Joint Commission on Accreditation of Healthcare Organizations. These Services has developed an innovative approach to the delivery of radiology services by operating centralized state-of-the-art reading centers in Sydney Australia and Zurich Switzerland. Staffing U.S.-trained board-certified radiologists specializing in emergency radiology. NightHawk Radiology Holdings Inc. has a market cap of $130.8 million; its shares were traded at around $4.94 with a P/E ratio of 10.4 and P/S ratio of 0.7.
The preliminary read revenue decline was predominately due to a 9% price decline for the period. Preliminary read volumes increased 2% over the same period, consisting of same site growth of 9% and new customer volumes of 6%, offset by a 13% decrease in volumes from the cumulative impact of customers lost over the past 12 months.
The increase in final read revenue was due predominantly to a 22% increase in volumes. New customer volume for final reads grew 49% and was offset in part by a 6% decrease in same site volumes and 22% decrease in volumes from the impact of customers lost over the past 12 months. Pricing for final reads was flat for the period.
The preliminary read revenue decline was predominately due to an 8% price decline. Preliminary read volume was essentially flat. The increase in final read revenue was due to a combination of a 6% increase in the average price due to a modality shift towards more complex exams and an 8% volume increase primarily driven by new customers.
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NightHawk Radiology Services is the world\'s leading provider of overnight and off-hour radiology coverage for hospitals clinics and imaging centers across America. NightHawk is a radiology coverage pioneer with a combined experience in radiology and teleradiology as well as an accreditation by the Joint Commission on Accreditation of Healthcare Organizations. These Services has developed an innovative approach to the delivery of radiology services by operating centralized state-of-the-art reading centers in Sydney Australia and Zurich Switzerland. Staffing U.S.-trained board-certified radiologists specializing in emergency radiology. NightHawk Radiology Holdings Inc. has a market cap of $130.8 million; its shares were traded at around $4.94 with a P/E ratio of 10.4 and P/S ratio of 0.7.
Highlight of Business Operations:
We generate revenue from a number of sources, including off-hours preliminary exams, business services offerings and final and subspecialty interpretations. The revenue growth that we have historically experienced has been due in large part to the growth of our off-hours preliminary business, which continues to make up the bulk of our revenue. The market for off-hours preliminary interpretations has historically experienced rapid volume growth. This volume growth has been driven by an increase in our customer base, an increase in utilization of our services by our customers, acquisitions, an expansion of our service hours, a high customer retention rate and growth in the use of diagnostic imaging technologies and procedures in the healthcare industry in general. In recent quarters, however, our volume growth in the off-hours preliminary business has slowed as the market for these services has matured and become more competitive. As a result of these factors, we have seen the average price for our preliminary reads decline and have also experienced customer losses which, combined, have caused our revenues from our off-hours preliminary business to decline in recent periods. We expect these challenges to continue in the foreseeable future which will affect our ability to grow revenue organically in our off-hours preliminary business. In response to such trends, our strategy is to sell new services (including final interpretations and business services) to our existing customers by communicating their value and demonstrating the advantages we offer over our competitors. Our future growth depends primarily upon our ability to successfully execute that strategy while also effectively responding to competitive pressures in the market for off-hours preliminary exams. Our new services accounted for approximately 24% of our total revenue in the second quarter of 2009, up from 20% in the second quarter of 2008.The preliminary read revenue decline was predominately due to a 9% price decline for the period. Preliminary read volumes increased 2% over the same period, consisting of same site growth of 9% and new customer volumes of 6%, offset by a 13% decrease in volumes from the cumulative impact of customers lost over the past 12 months.
The increase in final read revenue was due predominantly to a 22% increase in volumes. New customer volume for final reads grew 49% and was offset in part by a 6% decrease in same site volumes and 22% decrease in volumes from the impact of customers lost over the past 12 months. Pricing for final reads was flat for the period.
The preliminary read revenue decline was predominately due to an 8% price decline. Preliminary read volume was essentially flat. The increase in final read revenue was due to a combination of a 6% increase in the average price due to a modality shift towards more complex exams and an 8% volume increase primarily driven by new customers.
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