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NightHawk Radiology Holdings repurchases 3 million shares from founder

NightHawk Radiology Holdings, a leading provider of radiology solutions to radiology groups and hospitals throughout the United States announced that it has entered into an agreement to repurchase 3,000,000 shares of its common stock held by the company's founder and former Chairman, Dr. Paul E. Berger. Under the terms of the agreement, which is subject to typical closing and delivery provisions, the company will pay $4.63 per share, reflecting a 6 percent discount from the closing price on the effective date of the agreement, August 12, 2009. The company believes that this repurchase is in the best interests of its remaining shareholders, given the company's current cash position and ability to generate free cash flow.

The share repurchase will result in a reduction in the weighted average number of shares outstanding and thus is expected to result in an increase in adjusted earnings per share in the third quarter of 2009 of approximately one cent per share. Accordingly, the company updated its guidance to reflect this impact of a lower share count, and now expects adjusted earnings per share of 16 to 17 cents for the third quarter of 2009.

Source: NightHawk Radiology Holdings