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NightHawk Radiology Holdings, Inc. Releases Record Third Quarter 2007 Results
Date:10/30/2007

061,658

Diluted 31,012,036 28,061,658

NIGHTHAWK RADIOLOGY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

RECONCILIATION BETWEEN GAAP AND ADJUSTED NET INCOME

Three Months Ended

September 30, 2007

GAAP Adjustments As Adjusted

Service revenue $45,151,201 $45,151,201

Operating costs and expenses:

Professional services (includes

non-cash compensation expense

of $1,536,432 and $1,086,747) 19,069,295 (1,990,356) 17,078,939

Sales, general, and

administrative (includes

non-cash compensation expense

of $3,159,734 and $309,068) 15,753,703 (3,159,734) 12,593,969

Depreciation and amortization 2,608,472 (1,740,292) 868,180

Total operating costs

and expenses 37,431,470 (6,890,382) 30,541,088

Operating income 7,719,731 6,890,382 14,610,113

Other income (expense):

Interest expense (2,388,529) (2,388,529)

Interest income 745,719 745,719

Other, net (27,259) (27,259)

Change in fair value of

redeemable preferred stock

conversion feature

Total other income

(expense) (1,670,069) (1,670,069)

Income before income

taxes 6,049,662 6,890,382 12,940,044

Income tax expense 2,261,818 2,687,249 4,949,067

Net income 3,787,844 4,203,133 7,990,977

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SOURCE NightHawk Radiology Holdings, Inc.
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