Star Equity Holdings, Inc. · NASDAQ:STRR
Star Equity — Digirad — IPO Roadshow (April 2019)
20 slides from Star Equity's IPO roadshow presentation, Apr 12, 2019
Slide 1: Free Writing Prospectus Statement
Filed Pursuant to Rule 433 Issuer Free Writing Prospectus Dated April 12, 2019 (To Preliminary Prospectus dated April 9, 2019) Registration Statement No. 333 - 230210 This free writing prospectus relates to the proposed public offering of securities of Digirad Corporation (the “Company”) that is bei
Slide 2: Digirad Corporation Preferred Stock Offering
April 2019 Digirad Corporation Preferred Stock Offering
Slide 3: Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 : This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . All statements in this presentation that are not statements of historical fact are
Slide 4: Details of the Proposed Offering
Details of the Proposed Offering Series A Cumulative Term Preferred Stock Liquidation Preference/Par Value: $25.00 per share Dividend Rate: Dividends Payable: Quarterly in cash Dividend Dates (1) : May 15, Aug 15, Nov 15, Feb 15 Redemption Date (1)(2) : 2026 at par Use of Proceeds: Partial debt repa
Slide 5: Senior Management Team
Senior Management Team Matt Molchan CEO Matt Molchan became Digirad’s President, Chief Executive Officer, and member of the Board of Directors on July 1, 2013. Mr. Molchan also served as Digirad’s Interim Chief Financial Officer from April 10, 2018 until January 15, 2019. He has been with the compan
Slide 6: Healthcare Services and Healthcare Products
• Mobile Nuclear Imaging • Mobile CT, MRI, and PET Imaging • Other Customized, Imaging - Related Solutions HEALTHCARE Services HEALTHCARE P r oduc t s • Manufactures and Sells Mobile Solid - State Nuclear Gamma Cameras • Services Installed Base of Digirad Cameras as well as Non - Digirad Products Di
Slide 7: Digirad's Services and Products Overview
Diagn o s tic Services Diagn o s tic Imaging Mobile H e althca r e Mobile nuclear imaging, ultrasound services, and other imaging - related services Manufactures and sells mobile solid - state nuclear gamma cameras; Supports installed base of Digirad cameras as well as non Digirad products Mobile he
Slide 8: Diagnostic Services
• Diagnostic Services offers mobile imaging services to medical providers on - site as an alternative to purchasing equipment themselves or outsourcing the procedures to other providers • Mobile imaging services include nuclear imaging, echocardiography, vascular, and general ultrasound tests » Digi
Slide 9: Diagnostic Services Growth Goals
ACQUISITION GOALS • Tuck - in: consolidation of smaller players • Larger, deep - value opportunities • Looking for the right opportunities at the right price SOURCES OF NEW REVENUE STREAMS • New service lines • Digirad Select: array of tailored services to fit customer needs and utilizes Digirad’s p
Slide 10: Mobile Healthcare
• Through DMS Health, Mobile Healthcare provides provisional healthcare and contract diagnostic imaging through a convenient, mobile service platform • Diagnostic imaging includes: » Computerized Tomography (“CT”) » Magnetic Resonance Imaging (“MRI”) » Positron Emission Tomography (“PET”) » PET/CT »
Slide 11: Diagnostic Imaging
S • Diagnostic Imaging manufactures and sells internally - developed, mobile solid - state gamma cameras and provides camera maintenance contracts and support • Cameras include nuclear cardiac imaging systems and general purpose nuclear imaging systems • Digirad is a leader in the development and di
Slide 12: Digirad's Nuclear Gamma Cameras
CARDIUS LINE • Open, patient - friendly design • Superior cardiac images • High specificity with attenuation correction (X - ACT+) ERGO • Point - of - care imaging for better clinical outcomes • Multiple collimators for ultimate versatility Cardius X - ACT+ 11 Cardius 2XPO / 2MXPO Cardius 3XPO E rg
Slide 13: The Digirad Advantage
PRODUCT SALES & CUSTOMER SERVICE • Dedicated and mobile nuclear imaging cameras with solid - state technology • Focused sales approach to maximize margins and cash flow • Expanding opportunities by developing relationships outside the United States • Outsourced manufacturing for efficiency and savin
Slide 14: Financial Snapshot
Overview ($mm, except per share amounts) Stock Price (4/5/2019) $0 .83 Shares Outstanding (3/29/2019) 20 .2 Market Capitalization (4/5/2019) $16 .9 Average Daily Share Volume (past 12 months) ~103K Net Debt (12/31/2018) (1) $ 7 .7 2018 Results ($mm) Revenue (2) $ 1 0 4 .2 Diagnostic Services Revenue
Slide 15: HoldCo Strategy
• We believe that converting our company into a diversified holding company structure (“HoldCo”) with a shared services center (“SSC”) could create tremendous value for DRAD over the long - term • Benefits include: » Potential for multiple expansion from stronger growth outlook » Potential for impro
Slide 16: Real Estate Division and Modular Manufacturing Facilities
• As part of the launch of our HoldCo strategy, we recently formed a real estate division and a wholly - owned legal subsidiary to hold any significant real estate assets we acquire » We recently acquired two manufacturing facilities and agreed to acquire a third manufacturing facility in Maine, wit
Slide 17: Summary: The Digirad Formula for Increasing Value
We believe that we have developed a strategy to increase and deliver value for our security holders . We believe value will be created by following our formula for growth : THE DIGIRAD FORMULA FOR INCREASING VALUE Organic growth with focused sales efforts + Introducing and acquiring new services to
Slide 18: Appendix
App e ndix
Slide 19: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Non - GAAP Measures Digirad Corporation Reconciliation of Net Loss to Adjusted EBITDA (In thousands, unaudited) Year Ended December 31, 2018 Net loss from continuing operations $ (3,839) Unrealized (loss) gain on equity securities (1) 62 Restructuring costs (2) 93 Goodwill impairme
Slide 20: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Non - GAAP Measures Digirad Corporation Reconciliation of Operating Cash Flow to Free Cash Flow (In thousands, unaudited) Year Ended December 31, 2018 Net cash provided by (used in) operating activities $ 5,064 Purchases of property and equipment, net of dispositions (68) Free cash