NightHawk Radiology Holdings, Inc. Q2 2008 Earnings Call Transcript

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2008-07-30 17:32:10.0

Tags: NightHawk Radiology Holdings Inc.

Question-and-Answer Session

Operator

Thank you, sir. Ladies and gentlemen, this time we'll begin our question-and-answer session. (Operator Instructions) Our first question is from the line of Shelley Gnall with Goldman Sachs. Please go ahead.

Shelley Gnall - Goldman Sachs

Hi, thanks for taking my question. First congratulations on an inline quarter. I guess the revenue was a bit lower than my expectations. I'm just wondering if you could talk a little bit about the volumes understanding that there are some contracts lost during the quarter, 7% is that's also remain with your competitors' result, I'm wondering if you can give us an update on what industry growth is looking like to you now? And this is still the sort of 11% to 13% we have heard about in the past, any thoughts on update there?

Tim Murnane

Yeah. Hi, Shelley, it's Tim. Looking at the same side growth statistics looking at what our overall growth would have been if we had done better on customer losses. It pretty quickly leads me to look at the overall growth of 7% we did suffer an impact on volumes this quarter from previously lost customers were around 10% or 11%.

So, you are quickly arriving the mid teens, which I actually alluded to on in my prepared remarks. So, nothing that we see today, we just to believe that if we are successful on all fronts of our business, it's something in the mid teens per volume growth. This is a reasonable target to think of.

Shelley Gnall - Goldman Sachs

Okay. And then it was also my understanding that implied in the guidance was sort of maintenance of organic volume growth essential volume growth sort of to be 11% to 13% range. I'm just wondering there is the 7% that you are parting this quarter. I know you just spoken to some expectations for the third and fourth quarter on volumes. But I guess do the contract losses you have seen so far put your volume expectation for the year at risk or I guess, where will you makeup the shortfall is that due to the new sales initiative?

Tim Murnane

Well, the first answer is no. It does not put our overall view of where our volumes and revenue range ends up for the year at risk. And you answered the question of the second one that you posed to me which is there a number of levers that will ultimately result in our revenues. We are out winning new business and in fact in a very short period of time our pipeline and the quality of the pipeline is improving.

 

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