Change in fair value of
redeemable preferred stock
conversion feature
Total other income
(expense) 854,991 854,991
Income before income
taxes 9,062,766 1,515,982 10,578,748
Income tax expense 3,480,615 591,233 4,071,848
Net income 5,582,151 924,749 6,506,900
Redeemable preferred stock
accretion
Income applicable to common
stockholders $5,582,151 $924,749 $6,506,900
Earnings per share:
Basic $0.19 $0.22
Diluted $0.18 $0.21
Weighted average shares
outstanding:
Basic 29,836,960 29,836,960
Diluted 30,760,414 30,760,414
NIGHTHAWK RADIOLOGY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
RECONCILIATION BETWEEN GAAP AND ADJUSTED NET INCOME (LOSS)
Nine Months Ended
September 30, 2007
GAAP Adjustments As Adjusted
Service revenue $108,955,957 $108,955,957
Operating costs and expenses:
Professional services
(includes non-cash
compensation expense of
$3,567,030 and $3,333,430) 46,844,263 (5,015,954) 41,828,309
Sales, general, and
administrative (includes
non-cash compensation
expense of $5,842,797 and
$660,512) 36,860,609 (5,842,797) 31,017,812
Depreciation and amortization 5,
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