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Digirad Corporation Changes Status To HoldCo, Shares 2020 Guidance

Tanzeel Akhtar

Digirad Corporation (NASDAQ: DRAD) recently converted into a diversified holding company following the acquisition of ATRM Holdings on Sept. 10 and shared 2020 guidance.

The Company

The newly formed HoldCo is split into divisions such asDigirad Health, which designs, manufactures and distributes diagnostic medical imaging products and offers mobile health care services. Building & Construction ervices residential and commercial construction projects by manufacturing modular housing units.

What Happened

Digirad shared its preliminary guidance for fiscal year 2020 revenues of $130 million to $150 million; adjusted EBITDA of $10 million to $12 million; and free cash flow of $7 million to $9 million.

"We are very excited to commence operations as a diversified holding company," Jeff Eberwein, the chairman of Digirad, said in a statement.

What Next

"Under this new structure, our objective is to maximize shareholder value over the long term through high-return internal investments that promote revenue growth, operating efficiencies, and cash flow generation. We will also look for attractive acquisition opportunities in two categories: bolt-on acquisitions for our existing platform companies as well as acquisitions that create new platform companies for HoldCo," Eberwein said. 

Digirad Corporation shares were down 1.77% at $5.55 Monday afternoon. The stock has a 52-week range between $15.90 and $4.20.

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