Star Equity Holdings, Inc. · NASDAQ:STRR
Star Equity — Digirad — J.P. Morgan Healthcare Conference (January 2009)
21 slides from Star Equity's conference presentation, Jan 15, 2009
Slide 1: Todd Clyde, CEO – J.P. Morgan Healthcare Conference
Todd Clyde, CEO Digirad Corporation NASDAQ: DRAD J.P. Morgan Healthcare Conference
Slide 2: Forward-Looking Statements
DIGIRAD 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 f
Slide 3: Business Summary
aaa Business Summary Digirad provides diagnostic imaging products and equipment & personnel leasing services that improve patient care while driving positive healthcare economics
Slide 4: Diagnostic Imaging
DIGIRAD Diagnostic Imaging Portable Imaging for Today’s Patient, Physician Needs + Diagnostic requirements for aging population + Early detection is better healthcare * Trend to decentralized (non-hospital) services « Patients prefer own primary-care physicians + Leasing equipment/technicians solves
Slide 5: Product Line
ee} Product Line High-Quality, High-Performance Equipment 20201<® Technology to Drive Future Clinical Protocols better patient care sefficient economics
Slide 6: Nuclear Imaging Market Trend
DIGIRAD Nuclear Imaging Market Trend Resuming Yearly Uptrend in Nuclear Imaging Patient Visits Continuing Trend To Non-Hospital Providers Total Number of Nuclear Medicine Patient Visits, : : Hospital and Nonhospital Sites, 1997-2007 > Market recovery In 2007 ‘Secular uptrend resuming 1 Monhosptas Tr
Slide 7: Consolidated Results
Consolidated Results $90 $75 $60 $45 $30 $15 $0 $15 $ Millions 2005 2006 2007 2008 Estimate* Net Loss Gl Revenue *Midpoints of guidance as of October 23, 2008 (excludes restructuring charges & goodwill impairment estimated at $3.6M - $3.9M filed in an &-K on Dec 24,
Slide 8: New Management - New Focus
DIGIRAD’ New Management - New Focus Key Challenges Being Addressed Today + Past investments in growth unproductive ¢ Hub utilization poor in some regions * Competing with larger players for equipment market share * Serial losses/missed expectations Because Your Doctor Cores better patient care seffi
Slide 9: New Management - New Focus
DIGIRAD New Managem New Focus New strategies underway — Enhance team -— flatten organization — Rationalize DIS — increase utilization within hub system — Refine and proceed on “Centers of Influence” strategy — Product introductions — drive technology migration — Bundle new products in existing chann
Slide 10: U.S. Regional Presence
ee} U.S. Regional Presence IK Existing Services Hubs ebetter patient care efficient economics
Slide 11: Centers of Influence Strategy
DIGIRAD 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 reten
Slide 12: Centers of Influence Locations
DIGIRAD’ Centers of Influence Locations | a 9 \ Wea Ay MWY val) iP ebetter patient care eefficient economics
Slide 13: Absolute QUANT
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 ebetter patient care eefficient economics
Slide 14: New Technology
DIGIRAD New Technology cardius efficient low dose Economical hig recision (available mid-2009)
Slide 15: New Management - Measuring Our Progress
DIGIRAD’ New Management - New Focus Measuring Our Progress ¢ Flatten the organization and realignment —- Underway * Sell or close underperforming hubs — First half 2009 « New product introductions — Two in 2009 + Progress towards consistent cash flow and profitability re a better patient care seffic
Slide 16: Margins: Trend & Targets
DIGIRAD Margins: Trend & gets Gross Margin, SG&A as % of Revenue - Driving Improvement 35% 33% 32% 30% 27% 26% 25% ee 20% 15% 10% 5% 0% + + + + + 1 2005 2006 2007 2008 9-mos Future YTD Targets MEMEGross Margin —=*=SG&A as % of Revenue 9 better patient care eefficient economics
Slide 17: Operating Results
Operating Results (Unaudited) {An millions, except per share) YTD Sept'08 2007 2006 2005 Revenues $58.4 $73.9 $71.9 $68.2 Gross Profit 13.8 20.5 19.1 15.2 Operating Expenses 17.9 23.4 27.3 26.2 Operating Loss (4.1) (2.8) (8.2) (11.0) Net Income (Loss) $(3.4) $(1.4) $(6.3) $(9.6) Earnings (Loss) Per
Slide 18: Balance Sheet
Balance Sheet Liquid, Strong Ratios, No Long-Term Debt Sep 30, 2008 Dec 31, 2007 (In millions, except per share data) (Unaudited) Cash/equivalents and securities $25.6 $31.7 Total current assets 40.9 47.4 Total current liabilities 12.4 13.5 Long-term debt 0.0 0.0 Shareholders’ equity 52.0 55.2 Curre
Slide 19: Investment Merits
eis Investment Merits Turnaround Underway Demographics result in diagnostic imaging demand Focus on profit, cash generation Driving favorable technology trends Strong balance sheet — ~$28.0 million cash/securities available-for-sale (Dec 31, 2008 est.) — No long-term debt — $2.75 shareholders’ equit
Slide 20: Stock Data
SNS) Stock Data Nasdaq symbol DRAD 52-week trading range $0.48 to $3.50 Close 1/14/2009 $0.95 Average daily trading volume 53,868 shares Shares outstanding 18.94 million Float (shares) 16.1 million Market capitalization $18.0 million Pat : : ~ Source: Yahoo Finance Jan 14, 2009 SS better patient car
Slide 21: Digirad Corporation
DIGIRAD Digirad Corporation Nasdaq: DRAD 3 January 2009 Ss better patient care sefficient economics
Digirad — J.P. Morgan Healthcare Conference (January 2009) on 6ix