 SUWANEE, Ga., Aug. 13, 2020 GLOBE NEWSWIRE -- Digirad Corporation Nasdaq: DRAD; DRADP Digirad or the Company reported today its financial results for the second quarter Q2 and six months 6M ended June 30, 2020. Q2 2020 Financial Highlights vs. Q2 2019 Total revenue decreased to 22.3 million from 25.8 million Gross profit decreased to 4.0 million from 5.0 million Net loss from continuing operations was 1.3 million or 0.42 per basic and diluted share compared to a net loss of 1.5 million or 0.72 per basic and diluted share Non-GAAP adjusted EBITDA from continuing operations decreased to 1.8 million from 2.1 million Non-GAAP free cash outflow of 0.6 million versus inflow of 3.3 million Cash and cash equivalents and restricted cash of 9.3 million versus 1.0 million and net debt was 16.5 million versus 14.3 million6M 2020 Financial Highlights vs. 6M 2019 Total revenue increased to 51.2 million from 49.7 million Gross profit decreased to 8.5 million from 9.0 million Net loss from continuing operations was 4.2 million or 1.66 per basic and diluted share compared to a net loss from continuing operations of 3.1 million or 1.54 per basic and diluted share Non-GAAP adjusted EBITDA from continuing operations decreased to 2.3 million from 2.9 million Since September 10, 2019, Digirad has been operating as a diversified holding company HoldCo with three divisions: Healthcare, Building Construction, and Real Estate Investments. Digirads Q2 2020 and 6M 2020 results include financial and operational data for the two newly created divisions - Building Construction and Real Estate Investments. No operational or financial data was recorded in the 2019 corresponding periods for these two divisions. In May 28, 2020, Digirad completed a public offering through the issuance of 2,225,000 shares of its common stock. Per share amounts for Q2 2020 and 6M 2020 periods, reflect the new share count. Jeff Eberwein, Chairman of Digirad, noted, Our Q2 2020 operations and financial results were impacted by the nationwide shutdown due to COVID-19. Revenue for all three businesses of our Healthcare division declined as many doctor offices temporarily closed in mid-March and many hospitals temporarily suspended non-emergency scanning procedures. In late June, we noticed a slow but steady return to normal operations at both doctor offices and hospitals.Our Building Construction division experienced some startup delays in Q2 on several commercial projects, but our outlook for the rest of the year is strong. KBS was recently awarded two significant commercial projects a 5.2 million contract to manufacture living units for the U.S. Army and a 2.0 million contract to manufacture housing units for military veterans. Deliveries for these projects are expected to be completed before year-end. To meet the higher manufacturing requirements for these two commercial projects, KBS recently hired back all factory employees previously furloughed due to COVID-19 and increased its work force by an incremental 20. Our growth strategy for the Building Construction division is to further expand the commercial construction business for KBS in the New England market. If KBS grows as expected in 2020, we will explore re-opening our Oxford, Maine plant, which we believe would effectively double KBSs production capacity.Mr. Eberwein concluded, We continue to execute on our HoldCo growth strategy and value enhancement initiatives to maximize stockholder value. Our HoldCo structure allows division CEOs to focus on operations and growth, while HoldCo management focuses on capital allocation. In addition to looking for attractive bolt-on acquisitions for our existing operating businesses, we will also look to create new business divisions in the future through the disciplined acquisition of businesses complementary to our HoldCo structure. Also, we are exploring the potential divestiture of non-strategic assets.RevenueThe Companys total Q2 2020 revenue decreased by 13.4 to 22.3 million from 25.8 million in the second quarter of the prior year. 6M 2020 total revenue of 51.2 million slightly increased from 6M 2019 revenue of 49.7 million.Revenue in million Q2 2020 Q2 2019 change 6M 2020 6M 2019 change Healthcare 17,305 25,798 32.9 40,647 49,710 18.2 Building Construction 5,035 10,519 Real Estate Investments 161 350 Corporate, eliminations and other 159 317 Total Revenue 22,342 25,798 13.4 51,199 49,710 3.0 Revenue for the Healthcare division for Q2 2020 decreased from Q2 2019 by 8.5 million, offset by a 5.0 million increase in Building and Construction revenue. The decrease in revenue for the Healthcare division was due to the COVID-19 pandemic as many doctors offices were temporarily closed and many hospitals stopped performing non-emergency procedures, tests, and scans.Gross ProfitGross Profit in million Q2 2020 Q2 2019 change 6M 2020 6M 2019 change Healthcare 3,036 5,181 41.4 7,109 9,162 22.4 Building Construction 1,053 1,456 Real Estate Investments 95 177 153.7 218 177 223.2 Corporate, eliminations and other 158 316 Total Gross Profit 4,026 5,004 19.5 8,467 8,985 5.8 Q2 2020 gross profit for the Healthcare division decreased by 41.4 from the prior years quarter due to reduced revenue as a result of the COVID-19 pandemic.Operating ExpensesQ2 2020 marketing, sales, general and administrative MSGA expenses decreased by 2.4 or 0.1 million from the prior year period, mainly due to costs savings from lower travelling costs and marketing and selling expenses offset by MSGA expenses for the Building and Construction division. Our 6M 2020 MSGA expenses increased by 13.2 or 1.3 million, compared to the same period of 2019 due to the addition of MSGA in the Building and Construction division.Non-GAAP Adjusted EBITDAQ2 2020 non-GAAP adjusted EBITDA from continuing operations decreased to 1.8 million from 2.1 million in the same quarter of the prior year due to lower revenue generated from high-margin mobile scanning services because of the COVID-19 pandemic. 6M 2020 non-GAAP adjusted EBITDA from continuing operations decreased to 2.3 million, compared to 2.9 million in the prior year period, reflecting COVID-19 impact.Net LossQ2 2020 net loss from continuing operations for the second quarter was 1.3 million, or 0.42 per basic and diluted share, compared to net loss of 1.5 million, or 0.72 per basic and diluted share, in the same period in the prior year. Q2 2020 non-GAAP adjusted net loss from continuing operations was 0.3 million, or 0.11 per basic and diluted share, compared to adjusted net income of 0.1 million, or 0.04 per basic and diluted share, in the prior year period.6M 2020 net loss from continuing operations was 4.2 million, or 1.66 per basic and diluted share, compared to net loss from continuing operations of 3.1 million, or 1.54 per basic and diluted share, in the same period in the prior year. 6M 2020 non-GAAP adjusted net loss from continuing operations decreased to 2.0 million, or 0.78 per basic and diluted share, compared to adjusted net loss of 0.9 million, or 0.46 per basic and diluted share, in the prior year period.Operating cash flowQ2 2020 cash flow from operations was an outflow of 0.6 million, compared to an inflow of 2.6 million for the same period in the prior year. 6M 2020 cash flow from operations was an inflow of 49 thousand, compared to an inflow of 0.4 million for the prior year period.Free Cash FlowThe Company calculates a non-GAAP measure of free cash flow. The Company defines free cash flow as net cash provided by used in operating activities, less purchases of property and equipment, plus net dispositions of property and equipment, and the acquisition-related net working capital. The Company believes this measure of free cash flow provides management and investors further useful information about cash generation or use in our primary operations.Q2 2020 non-GAAP free cash flow was an outflow of 0.6 million, compared to an inflow of 3.3 million in the same quarter in the prior year period. 6M 2020 non-GAAP free cash flow was an outflow of 38 thousand, compared to an inflow of 1.2 million in the prior year period.Net Operating Loss Carryforward NOLDigirad Corporation has approximately 91.6 million of usable net operating losses NOL in the U.S. as of year end 2019, which the Company considers to be a very valuable asset for its stockholders. In order to protect the value of the NOL for all stockholders, the Company has a charter amendment in place limiting beneficial ownership of Digirad common stock to 4.99. Stockholders who wish to own more than 4.99 of Digirad common stock, or who already own more than 4.99 of Digirad common stock and wish to buy more, may only acquire additional shares with the Boards prior written approval.Conference Call InformationA conference call is scheduled for 11:00 a.m. ET 8:00 a.m. PT on August 13, 2020 to discuss the results and managements outlook. The call may be accessed by dialing 1-877-407-9039 international callers: 1-201-689-8470 five minutes prior to the scheduled start time and referencing Digirad. A simultaneous webcast of the call may be accessed online from the Events Presentations link on the Investor Relations page at an archived replay of the webcast will be available within 15 minutes of the end of the conference call.If you have any questions, either prior to or after our scheduled Earnings Conference call, please e-mail or 