Earnings Labs

Star Equity Holdings, Inc. (STRR)

Q3 2018 Earnings Call· Fri, Nov 2, 2018

$9.64

-2.53%

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Transcript

Operator

Operator

Greetings, and welcome to the Digirad Corporation Third Quarter 2018 Results Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the conference over to your host, Rica Lindsey.

Rica Lindsey

Analyst

Thank you, Wilmer, and thank you all for joining us this morning. If you didn't receive a copy of our press release and would like one, please contact our office at 858-726-1600 after the call, and we'll be happy to get you one. Also, this call is being broadcast live over the Internet and may be accessed at Digirad's website via www.digirad.com. Shortly after the call, a replay will also be available on the Company's website. I would like to remind everyone that certain statements made during this conference call, including the question-and-answer period, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include, but are not limited to, statements about the Company's revenues, costs and expenses, margins, operations, financial results, acquisitions, and other topics related to Digirad's business strategy and outlook. These forward-looking statements are based on current assumptions and expectations and involve risks and uncertainties that could cause actual events and financial performance to differ materially. Risks and uncertainties include, but are not limited to, business and economic conditions, technological change, industry trends, changes in the Company's market and competition. More information about the risks and uncertainties is available in the Company's filings with the U.S. Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K as well as today's press release. The information discussed on this morning's conference call should be used in conjunction with the consolidated financial statements and notes included in those reports and speak only as of the date of this call. The Company undertakes no obligation to update these forward-looking statements. Hosting the call today from Digirad, is President, CEO, and Interim CFO, Matt Molchan. Also on the call today is Digirad's Chairman of the Board, Jeff Eberwein; and its COO, David Noble. They will discuss the 2018 third quarter financial results, update us on the Company's strategy, and comment on the Company's outlook. A question-and-answer period will then follow. With that, I'd like to turn the call over to Matt Molchan. Good morning, Matt.

Matt Molchan

Analyst

Good morning and thank you, Rica. Good morning, everyone, and thank you all for joining us today for our third quarter 2018 results conference call. In the earnings release today and in my comments, I make references to both GAAP results as well as adjusted results. The adjusted results are non-GAAP and do not include nonrecurring charges. I will also make references to adjusted EBITDA, which is a non-GAAP measure that further excludes depreciation, amortization, interest, taxes and stock-based compensation. Finally, I'll make references to free cash flow, which is a non-GAAP measure, taking operating cash flow and subtracting cash paid for capital expenditures. We believe the presentation of these non-GAAP measures, along with our GAAP financial statements and reconciliations, provide a more thorough analysis of our ongoing financial performance. You can find a reconciliation of our results on a GAAP versus non-GAAP basis in the earnings release. We had a very busy last few months as we positioned our Company in anticipation of the formation and implementation of our previously announced HoldCo strategy. In addition to running the business we created a new stock repurchase plan, we made the strategic decision to eliminate our quarterly dividend, and we sold our Telerhythmics business. All these moves were done to prepare us for our eventual transformation into HoldCo, which we believe will give our Company its best opportunity to grow and maximize value per share over the long run. In terms of our current operating businesses, we're faced with many challenges during the quarter which we expect to be temporary in nature. Despite these challenges we were still able to keep overall revenue basically flat on a year-over-year basis, with Diagnostic Services revenue outperforming over the prior year. Our Digirad Imaging Solutions or DIS unit within Diagnostic Services did suffer weather…

Operator

Operator

Matt Molchan

Analyst

Thank you, Wilmer. As always, we appreciate all our shareholders and your continued feedback and support. We're looking forward to our next update call.

Operator

Operator

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.