Company profile

Ticker
DRAD
Exchange
Website
CEO
Matthew Gabel Molchan
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
330145723

DRAD stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

15 May 20
11 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 28.86M 36.14M 28.33M 25.8M
Net income -2.95M -257K -1.5M -1.21M
Diluted EPS -1.67 -0.42 -0.74 -0.59
Net profit margin -10.23% -0.71% -5.31% -4.69%
Operating income -2.6M -102K -1.21M -1.38M
Net change in cash -398K 342K 615K 67K
Cash on hand 1.42M 1.82M 1.48M 864K
Cost of revenue 24.42M 28.21M 23.14M 20.79M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 114.19M 104.18M 104.63M 125.47M
Net income -4.63M 736K -35.73M 14.3M
Diluted EPS -2.56 0.37 -1.79 0.71
Net profit margin -4.05% 0.71% -34.15% 11.40%
Operating income -3.83M -4.5M -5.3M 3.09M
Net change in cash 276K -332K -326K -13.67M
Cash on hand 1.82M 1.55M 1.88M 2.2M
Cost of revenue 92.07M 85.91M 89.94M 89.69M

Financial data from Digirad earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
11 Jun 20 Eberwein Jeffrey E. 10% Series A Cumulative Perpetual Preferred Stock Sell Dispose S No 7.91 1,514 11.98K 845,412
28 May 20 Cunnion Michael A. Common Stock Buy Aquire P No 2.24 5,000 11.2K 15,047
28 May 20 Cunnion Michael A. Warrant Common Stock Buy Aquire P No 0.01 5,000 50 5,000
28 May 20 Eberwein Jeffrey E. Common Stock Buy Aquire P No 2.24 44,000 98.56K 135,963
28 May 20 Eberwein Jeffrey E. Warrant Common Stock Buy Aquire P No 0.01 44,000 440 44,000
28 May 20 Matthew G. Molchan Common Stock Buy Aquire P No 2.24 2,000 4.48K 27,735
28 May 20 Matthew G. Molchan Warrant Common Stock Buy Aquire P No 0.01 2,000 20 2,000
28 May 20 Quain Mitchell I Common Stock Buy Aquire P No 2.24 22,000 49.28K 42,478
28 May 20 Quain Mitchell I Warrant Common Stock Buy Aquire P No 0.01 22,000 220 22,000
15.1% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 12 20 -40.0%
Opened positions 0 2 EXIT
Closed positions 8 5 +60.0%
Increased positions 0 2 EXIT
Reduced positions 5 9 -44.4%
13F shares
Current Prev Q Change
Total value 820K 47.61M -98.3%
Total shares 316.89K 633.43K -50.0%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
Dimensional Fund Advisors 103.49K $267K -0.3%
Renaissance Technologies 93.52K $243K 0.0%
Bridgeway Capital Management 44.09K $114K 0.0%
Vanguard 36.8K $95K -49.4%
Ancora Advisors 34.54K $90K -22.4%
BLK BlackRock 2.73K $7K 0.0%
Advisor 561 $1K 0.0%
Acadian Asset Management 378 $1K 0.0%
Victory Capital Management 345 $1K -1.4%
Valeo Financial Advisors 320 $1K 0.0%
Largest transactions
Shares Bought/sold Change
Cannell Capital 0 -223.12K EXIT
Vanguard 36.8K -35.87K -49.4%
Ariel Investments 0 -19.53K EXIT
Dalton Greiner Hartman Maher & Co 0 -16.56K EXIT
Weber Alan W 0 -10K EXIT
Ancora Advisors 34.54K -9.99K -22.4%
UBS UBS 120 -445 -78.8%
Tower Research Capital 0 -402 EXIT
Dimensional Fund Advisors 103.49K -275 -0.3%
Bray Capital Advisors 0 -166 EXIT

Financial report summary

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Competition
RCMAlliance HealthCare ServicesSpect
Risks
  • Risks Related to Our Business and Industry
  • Our HoldCo Conversion and related acquisitions or investments could involve unknown risks that could harm our business and adversely affect our financial condition.
  • We rely on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could materially harm our business.
  • We may not be able to achieve the anticipated synergies and benefits from business acquisitions.
  • There can be no assurances that we will be successful as a diversified holding company.
  • We are subject to particular risks associated with real estate ownership, which could result in unanticipated losses or expenses.
  • Our revenues may decline due to reductions in Medicare and Medicaid reimbursement rates.
  • Our Diagnostic Services revenues may decline due to changes in diagnostic imaging regulations and the use of third party benefit managers by states and private payors to drive down diagnostic imaging volumes.
  • Manufacturing and providing service for our nuclear imaging cameras is highly dependent upon the availability of certain suppliers, thereby making us vulnerable to supply problems that could harm our business.
  • Our Diagnostic Services and portions of our Mobile Healthcare operations are highly dependent upon the availability of certain radiopharmaceuticals, thereby making us vulnerable to supply problems and price fluctuations that could harm our business.
  • We compete against businesses that have greater resources and different competitive strengths.
  • Our quarterly and annual financial results are difficult to predict and are likely to fluctuate from period to period.
  • We spend considerable time and money complying with federal and state laws, regulations, and other rules, and if we are unable to fully comply with such laws, regulations, and other rules, we could face substantial penalties.
  • Healthcare policy changes could have a material adverse effect on our business.
  • Any intrusions or attacks on our information technology infrastructure could impact our ability to conduct operations and could subject us to fines, penalties, and lawsuits related to healthcare privacy laws.
  • We are subject to risks associated with self-insurance related to health benefits.
  • A portion of our operations are located in a facility that may be at risk from fire, earthquakes, or other disasters.
  • The medical device industry is litigious, which could result in the diversion of our management’s time and efforts, and require us to incur expenses and pay damages that may not be covered by our insurance.
  • If we cannot provide quality technical and applications support, we could lose customers and our business and prospects will suffer.
  • Our long-term results depend upon our ability to improve existing products and services and introduce and market new products and services successfully.
  • If we do not successfully manage the development and launch of new products and services, our financial results could be adversely affected.
  • Undetected errors or defects in our products could harm our reputation or decrease market acceptance of our products.
  • Our ability to protect our intellectual property and proprietary technology through patents and other means is uncertain.
  • The measures that we use to protect the security of our intellectual property and other proprietary rights may not be adequate, which could result in the loss of legal protection for, and thereby diminish the value of, such intellectual property and other rights.
  • We may need to enter into license agreements in the future.
  • If we are sued for infringing intellectual property rights of third parties, it would be costly and time consuming, and an unfavorable outcome in that litigation could have a material adverse effect on our business.
  • Our issued patents could be found invalid or unenforceable if challenged in court or at the Patent Office or other administrative agency, which could have a material adverse impact on our business.
  • We may be involved in lawsuits to protect or enforce our patents, which could be expensive, time-consuming and unsuccessful.
  • We may make financial investments in other businesses that may lose value.
  • Our mobile healthcare fleet is highly utilized; any downtime in our assets could have a material impact on our revenues and costs.
  • Our goodwill and other long-lived assets are subject to potential impairment that could negatively impact our earnings.
  • The Company is dependent on its senior management team and other key employees.
  • ATRM’s operating results could be adversely affected by changes in the cost and availability of raw materials.
  • If KBS is unable to maintain or establish its relationships with independent dealers and contractors who sell its homes, KBS revenue could decline.
  • Due to the nature of ATRM’s business, many of its expenses are fixed costs and if there are decreases in demand for its products, it may adversely affect its operating results.
  • Certain actions taken in connection with reducing operating costs may have a negative impact on ATRM’s business.
  • Due to the nature of the work the Company and its subsidiaries perform, the Company may be subject to significant liability claims and disputes.
  • ATRM’s costs of doing business could increase as a result of changes in, expanded enforcement of, or adoption of new federal, state or local laws and regulations.
  • Risks Related to our Indebtedness
  • Our indebtedness could restrict our operations and make us more vulnerable to adverse economic conditions.
  • The Company Loan Agreements governing our indebtedness contain restrictive covenants that restrict our operating flexibility and require that we maintain specified financial ratios. If we cannot comply with these covenants, we may be in default under one or more of the Loan Agreements.
  • Substantially all of our assets (including the assets of our subsidiaries) have been pledged to lenders as security for our indebtedness under the Loan Agreements.
  • The inability of the Company, ATRM, KBS, or any of the Company’s other subsidiaries to comply with applicable financial covenants under the Loan Agreements could have a material adverse effect on financial condition of the Company.
  • If we are unable to generate or borrow sufficient cash to make payments on our indebtedness, our financial condition would be materially harmed, our business could fail, and stockholders may lose all of their investment.
  • Increases in interest rates could adversely affect our results from operations and financial condition.
  • Risks Related to our Common Stock and our Company Preferred Stock
  • The market price of our common stock may be volatile, and the value of your investment could decline significantly.
  • Our common stock has a low trading volume and shares available under our equity compensation plans could affect the trading price of our common stock.
  • Payment of dividends on our common stock is prohibited unless we have declared and paid (or set apart for payment) full accumulated dividends on the Company Preferred Stock, which also has a significant liquidation value.
  • If Nasdaq delists the Company Preferred Stock from quotation on its exchange, investors’ ability to make transactions in the Company Preferred Stock could be limited.
  • The market for Company Preferred Stock may not provide investors with adequate liquidity.
  • The Company Preferred Stock will bear a risk in connection with redemption.
  • Digirad may not be able to redeem the Company Preferred Stock upon a Change of Control Triggering Event.
  • Market interest rates may materially and adversely affect the value of the Company Preferred Stock.
  • Holders of the Company Preferred Stock may be unable to use the dividends-received deduction and may not be eligible for the preferential tax rates applicable to “qualified dividend income.”
  • A holder of Company Preferred Stock has extremely limited voting rights.
  • The Company Preferred Stock is not convertible into common stock, including in the event of a change of control of the Company, and investors will not realize a corresponding upside if the price of the our common stock increases.
  • Our cash available for dividends to holders of the Company Preferred Stock may not be sufficient to pay anticipated dividends, nor can we assure you of our ability to make dividends in the future, and we may need to borrow to make such dividends or may not be able to make such dividends at all.
  • The protective amendment contained in our Restated Certificate of Incorporation, which is intended to help preserve the value of certain income tax assets, primarily tax net operating loss carryforwards (“NOLs”), may have unintended negative effects.
  • Anti-takeover provisions in our organizational documents and Delaware law may prevent or delay removal of current management or a change in control.
Management Discussion
  • Revenues for continuing operations were $114.2 million for the year ended December 31, 2019. This is an increase of $10.0 million, or 9.6%, compared to the prior year due to the following:
  • Gross profit for continuing operations increased $3.8 million, or 21.0%, compared to the prior year mainly due to a $2.0 million increase in Building and Construction division gross profit subsequent to the ATRM Merger and a $1.3 million increase in Mobile Healthcare segment, which was driven by consolidations of non-profitable routes and systems. It further reduced maintenance, transport, and depreciation. Additionally, we experienced lower health insurance premiums year over year, which partially offset by higher lease expense from an increase in sublease revenue and operating leases.
  • Total operating expenses increased $3.1 million, or 13.7%, for the year ended December 31, 2019 compared to the prior year, primarily due to additional $2.3 million merger and financing expenses and $1.1 million sales and general and administrative expenses and offset in part by $0.5 million lower goodwill impairment, and $0.1 million lower stock-based compensation.
Content analysis ?
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Constraining
Legalese
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