NightHawk Radiology Holdings, Inc. Announces Fourth Quarter and Full-Year 2007 Results; Updates 200...((62916) (62916) ...),Health

Change in fair value of

redeemable preferred stock

conversion feature

Total other income

(expense) (2,818,092) (2,818,092)

Income (loss)

before income taxes 23,309,198 21,575,978 44,885,176

Income tax expense 8,615,352 7,983,112 16,598,464

Net income (loss) 14,693,846 13,592,866 28,286,712

Redeemable preferred stock

accretion

Income (loss) applicable to

common stockholders $14,693,846 $13,592,866 $28,286,712

Earnings (loss) per share:

Basic $0.49 $0.94

Diluted $0.47 $0.91

Weighted average shares

outstanding:

Basic 30,083,080 30,083,080

Diluted 31,083,971 31,083,971

Year Ended

December 31, 2006

GAAP Adjustments As Adjusted

Service revenue $92,168,246 $92,168,246

Operating costs and expenses:

Professional services

(includes stock compensation

expense of $4,429,358 and

$4,886,678 and IBNR reserve

of $1,038,000 and $2,000,000) $38,963,287 (6,886,678) 32,076,609

Sales, general, and

administrative (includes

stock compensation expense

of $10,601,004 and

$1,073,455 and one time

legal cost of $477,862

and $0) 27,607,317 (1,073,455) 26,533,862

Depreciation and amortization 2,198,714 (508,875) 1,689,839

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