Digirad delivers convenient, effective, and efficient healthcare solutions on an as needed, when needed, and where needed basis. Digirad’s diverse portfolio of mobile healthcare solutions and diagnostic imaging equipment and services, provides hospitals, physician practices, and imaging centers through the United States access to technology and services necessary to provide exceptional patient care in the rapidly changing healthcare environment. For more information, please visit www.digirad.com.
Our HoldCo Conversion and related acquisitions or investments could involve unknown risks that could harm our business and adversely affect our financial condition.
We are subject to particular risks associated with real estate ownership, which could result in unanticipated losses or expenses.
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 successfully complete our planned conversion into a diversified holding company or complete its proposed acquisition of ATRM
Our indebtedness could restrict our operations and make us more vulnerable to adverse economic conditions.
The SNB Loan Agreement governing our indebtedness contains restrictive covenants that will 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 the SNB Loan Agreement.
Substantially all of our assets have been pledged to SNB as security for our indebtedness under the SNB Loan Agreement.
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.
Revenues for continuing operations were $104.2 million for the year ended December 31, 2018. This is a decrease of $0.5 million, or 0.4%, compared to the prior year due to the following:
Gross profit for continuing operations decreased $2.9 million, or 13.8%, compared to the prior year mainly due to a $2.5 million decrease in Mobile Healthcare segment, which was driven by lower utilization of the owned assets and higher equipment maintenance costs.
Total operating expenses decreased $3.7 million, or 13.9%, for the year ended December 31, 2018 compared to the prior year, primarily due to lower litigation-related costs of $1.5 million related to the settlement of a wage and hour lawsuit in the prior year, lower employee related costs of $0.7 million due to reductions in headcount, higher gains on equipment and vehicle sales of $0.5