NightHawk Radiology Holdings, Inc. Announces Fourth Quarter and Full-Year 2007 Results; Updates 200...(Professional services (includes st...),Health

stock compensation expense of

$862,328 and $1,553,248 and

IBNR reserve of ($410,924)

and $2,000,000) 16,773,144 (451,404) 16,321,740

Sales, general, and

administrative (includes stock

compensation expense of

$4,758,207 and $412,943

and one time legal cost of

$477,862, and $0) 17,157,481 (5,236,069) 11,921,412

Depreciation and amortization 2,648,449 (1,810,734) 837,715

Total operating costs

and expenses 36,579,074 (7,498,207) 29,080,867

Operating income 6,127,011 7,498,207 13,625,218

Other income (expense):

Interest expense (2,220,769) (2,220,769)

Interest income 662,186 662,186

Other, net (3,321) (3,321)

Change in fair value of

redeemable preferred stock

conversion feature

Total other income

(expense) (1,561,904) (1,561,904)

Income before income

taxes 4,565,107 7,498,207 12,063,314

Income tax expense 1,504,757 2,465,861 3,970,618

Net income 3,060,350 5,032,346 8,092,696

Redeemable preferred stock accretion

Income applicable to common

stockholders $3,060,350 $5,032,346 $8,092,696

Earnings per share:

Basic $0.10 $0.27

Diluted $0.10 $0.26

Weighted average shares

outstanding:

Basic 30,260,996 30,260,996

Dilute
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