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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