Star Equity Holdings, Inc. · NASDAQ:STRR
Star Equity — Digirad — BIOCOM Investor Meetings (Oct 2009)
22 slides from Star Equity's conference presentation, Oct 27, 2009
Slide 1: Investor Meetings — BIOCOM (Oct 2009)
Todd Clyde, CEO Digirad Corporation NASDAQ: DRAD Investor Meetings — BIOCOM (Oct 2009)
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation that are not a description of historical facts are forward-looking statements as determined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and
Slide 3: Digirad
DIGIRAD Digirad provides diagnostic imaging products and equipment & personnel leasing services that improve patient care while driving positive health care economics xeact Because Your Doctor Cares
Slide 4: Diagnostic Imaging
Diagnostic Imaging Portable Imaging for Today’s Patient, Physician Needs (Efficient Economics) DIGI « Diagnostic requirements for aging population ry a5 2 ¢ Early detection is better health care 5 8 « Patients prefer own primary-care physicians a5 =r « Leasing equipment/technicians solves physician
Slide 5: Population Growth (USA) — People over 65
Population Growth (USA) — People over 65 WebMD > USA Population Growth - Millions = —a ae 700 Healthy Aging Health Center 600. ee 500 ‘Americans Over 65 to Double by 2020 ewe ab, Longe Lie Spe to Sin Global Heatboare Resouces 400 2010 2030 + USA Population to Double from 2010 to 2030 from 35 M to 71
Slide 6: In-Office Cardiovascular Imaging
In-Office Cardiovascular Imaging es “ | | | South Dakota | + Existing Service Hubs | A Network of 38 Locations IGIRADec @e OO’ (~]
Slide 7: Centers of Influence Strategy
DIGI Centers of Influence Strategy Relationships for the Long-term * Centers of Influence — New revenues from reading fees — New revenue from interventional procedures « Referrals from primary-care physicians improve « Primary-Care Physicians — Affiliation with luminary institution — Higher retentio
Slide 8: Product Line
Product Line High-Quality, High-Performance Equipment Zh iS be t Cardius2xPo® Technology to Drive Future Clinical Protocols IGIRADec & OOD fois]
Slide 9: New Technology — New Clinical Protocols
New Technology — New Clinical Protocols Likely to Accelerate System Migration Absolute QUANT Simultaneous S/R SPECT VCT Rapid Imaging (Geometries/SW) SPECT AC Gated SPECT SPECT Imaging Gated Imaging Planar Imaging (Technology Progression) Black = Migrations = = Future Migrations ) © wo oO )
Slide 10: New Technology
et New Technology cardius (Being sold today!!) Deee® @©@O°]Dd @
Slide 11: Easy Access to Automated Report Generation
East Access to Automated Patient Image Data Report Generation
Slide 12: 2009 Digirad Mission
2009 Digirad Mission Statement: “Make Money and Generate Cash” NIGIRAD ee @ @ —
Slide 13: Management team
Management team Senior Management Todd Clyde, President & CEO — CEO and President and member of the Board of Directors since Oct 2008; he joined Digirad as Chief Financial Officer in Nov 2002 — Formerly head senior financefaccounting positions at Verance Corporation, LBus/Phoenix and Ernst & Young,
Slide 14: Balance Sheet
Balance Sheet Liquid, Strong Ratios, No Long-Term Debt (In millions, except per share data) Cash/equivalents and securities Total current assets Total current liabilities Long-term debt Shareholders’ equity Current ratio Quick ratio Working capital Shareholders’ equity per share et RA Yeo e@ @ — — S
Slide 15: Current Ratio
6.05 5.0 4 4.05 3.04 Current Ratio Healthy Current Ratio ’ $M 2.0 4 Min. Acceptable for Current Ratio 1.05 0.0 © © OC MM A A SKF ES IK OK SS os ° gs es Ss —i- Current Ratio IGI RA Yjeoe @ — (ui)
Slide 16: Equity Trends
Equity Trends 100.0 $5.00 80.0 $4.00 $3.00 40.0 $2.00 20.0 $1.00 0.0 $0.00 ain? a207 as07 ago? alte 20s ase -20.0 $ -40.0 $ Gas Market Cap Gamal Enterprise Value —e—Stack Price ——-Cash/Share —s=Equity keeCash IGIRADec @e OO’ (5)
Slide 17: Operating Results
Operating Results (Unaudited) (In millions, except per share) YTD Sept’09 2008 2007 2006 Revenues $ 53.2 $80.4 $73.9 $71.9 Gross Profit $ 15.5 $ 20.1 $ 20.5 $19.1 Operating Expenses $15.4 $ 27.7 $ 23.4 $ 27.3 Operating Income/(Loss) $ 0.1 $ (7.6) $ (2.8) $ (8.2) Net Income/(Loss) $0.4 $ (6.9) $ (1.4
Slide 18: Consolidated Results
Consolidated Results Revenue 0 C4 7 qa 5 50 Z40 cx) 2 10 o 2005 2006 2007 2008 2008 YTD Not IncomeLoss: } 2 : “por - 2009 YTD Pa Eos 3 10 12 _ — IGIRAD ec oe @ DOD @
Slide 19: Margin Trends
Margin Trends Gross Margin, SG&A as % of Revenue — Driving Improvement 35% 33% R% 30% 25% 20% 15% 10% 5% 0% + 2005 2006 2007 2008 2009 YTD (through Sept) mmm Gross Margin —e—SG8&A as %of Revenue IGIRAD ee &0 @ OSD
Slide 20: Investment Merits
Investment Merits *« Demographics result in diagnostic imaging demand « Focus on profit, cash generation ¢ Driving favorable technology trends « Strong balance sheet — ~$31.1 million cash/securities available-for-sale (Sept 30, 2009) — No long-term debt * Attractive valuation — ~$1.64 cash/securitie
Slide 21: Stock Data
Nasdaq symbol 52-week trading range Close 10/23/2009 Average daily trading volume 140K shares Shares outstanding Float (shares) Market capitalization (9/30/2009) Source: Yahoo Finance Oct 23, 2009 DIGI Dee Oo @ — RA Stock Data DRAD $0.48 to $3.14 $2.40 19.0 million 18.5 million $45.5 million
Slide 22: Digirad Corporation
Digirad Corporation Nasdaq: DRAD October 2009 DIGIRAD eee @ OD