FONAR Announces First Fiscal 2014 Quarter Earnings Results
MELVILLE, NY--(Marketwired - Nov 15, 2013) - FONAR Corporation
(NASDAQ: FONR)
- First Fiscal 2014 Quarter net revenues increase 77% over
First Fiscal Quarter 2013 to $16.8 million
- First Fiscal 2014 Quarter net income increases 104% over
First Fiscal Quarter 2013 to $3.6 million
- Diluted Net Income Available to Common Stockholders for the
First Fiscal 2014 Quarter was $0.37, an increase of 68% over First
Fiscal Quarter 2013
- FONAR records fifteenth straight quarter of positive net
income and income from operations
FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™,
reported its first quarter fiscal 2014 results for the quarter
ended September 30, 2013. The Company's two industry segments are:
development, manufacturing and servicing of the UPRIGHT®
Multi-Position™ MRI, and management of Stand-Up® MRI (UPRIGHT® MRI)
centers. The Company is known as the first Company to invent and
manufacture an MRI (Magnetic Resonance) scanner. Leading the list
of FONAR's most recent patented inventions is its technology
enabling full weight-bearing MRI imaging, in contrast to
the conventional weightless recumbent MRI, for the first time on
all the gravity sensitive regions of the human anatomy, e.g. the
spine, brain, hip, knee, ankle, foot, shoulder, and pelvis. The
FONAR UPRIGHT® Multi-Position™ MRI scanner is the world's only MRI
scanner licensed under FONAR's multiple UPRIGHT® MRI patents to
scan all the patient's body parts in their normal fully
weight-bearing UPRIGHT® position.
Financial Highlights
The management of diagnostic imaging center segment, consisting
of Patient and Management fee revenues, increased 149% to $14.3
million for the quarter ended September 30, 2013, over the
comparable quarter one year earlier ended September 30, 2012. The
Company's total revenues were $16.8 million for the quarter ended
September 30, 2013 an increase of 77% one year earlier when total
revenues were $9.5 million.
The increase in revenues resulted in a 104% increase in net
income to $3.6 million for the quarter ended September 30, 2013, as
compared to $1.8 million for the quarter ended September 30,
2012.
Income from operations for the quarter ended September 30, 2013
was $4.0 million as compared to $1.9 million for the quarter ended
September 30, 2012.
Basic net income per common share available to Common
Stockholders for the quarter ended September 30, 2013 was $0.38, as
compared to $0.23 for the quarter ended September 30, 2012. Diluted
income per common share available to Common Stockholders for the
quarter ended September 30, 2013 was $0.37, as compared to $0.22
for the quarter ended September 30, 2012.
Total assets were $75.6 million at September 30, 2013 as
compared to $73.2 million at June 30, 2013.
Total liabilities were $35.3 million at September 30, 2013 as
compared to $35.4 at June 30, 2013.
Total current liabilities were $22.4 million at September 30,
2013 as compared to $21.1 million at June 30, 2013.
At September 30, 2013, total cash and cash equivalents increased
17% to $9.2 million, as compared to $7.9 million at June 30,
2013.
Management
Commentary
Raymond V. Damadian, M.D., president and chairman of Fonar
Corporation, said: "We had understood that the acquisition of HDM
would be a significant source of profitability. This has been the
case and the Company's diluted earnings per share available for the
common stockholder for the 1st quarter of Fiscal 2014 increased 68%
to $0.37 when compared to one year earlier.
"There are more reasons why this acquisition makes a lot of
sense," continued Dr. Damadian. "By combining the resources of HMCA
and HDM, we will enjoy the benefits of economies of scale, shared
administrative and technical expertise and capabilities, and joint
marketing strategies. HMCA's 11 STAND-UP® MRIs together with HDM's
12 form a network of 23 FONAR weight-bearing MRI scanners,
the largest in the world as compared to the conventional
essentially weightless MRI.* Of course, we're not finished
growing," said Dr. Damadian. "We will continue to pursue additional
management contracts, primarily in New York and Florida."
"Our successful business model is made possible by the success
of our current MRI scanner, the UPRIGHT® Multi-Position™ MRI,"
continued Dr. Damadian. "This scanner is extremely popular with
patients who experience claustrophobia or can't lie down for long
periods. However, patient comfort is only one side of this product.
The much more compelling reason a patient would want to be scanned
is to get the right diagnosis. This is the world's only
scanner that can scan all body parts in their normal
weight-bearing posture. It is essential to visualize the
body in its normal weight-bearing positions in order to
accurately diagnose the source of the patient's pain, so that the
optimum treatment for the patient can be prescribed. In the
weightless posture of the conventional recumbent MRI, it
is impossible to accurately assess the patients'
weight-bearing anatomic pathologies so they can be
correctly treated. It is self-evident that if you can't see them
you can't treat them. It is very common with the UPRIGHT®
weight-bearing MRI to encounter disc herniations and
spinal dislocations that were not visible in the conventional
"weightless" recumbent MRI position.*"
*The calculated weight load of a 180 lb. upright patient on the
L3/4 lumbar vertebral disc is 45.5 lbs. per square inch as compared
to a weight-load of 4.5 lbs per square inch in a conventional
recumbent "weightless" MRI which is only bearing 1/10th
the weight the disc is bearing throughout the course of its common
upright every day
activities.
"This past April 6th we held 'Symposium 2013' in New York City.
The symposium was called 'The Cranio-Cervical Syndrome (CCS): The
Vulnerability of the Human Neck and Its Impact on Cerebrospinal
Fluid (CSF) Flow'," said Dr. Damadian. "There is a pandemic degree
of injuries to the neck and head, resulting from the 1.2 million
automobile whiplash injuries occurring each year in the United
States that are currently going unrecognized. The principal purpose
of Symposium 2013 was to bring the existence of this
Cranio-Cervical Syndrome to the attention of the medical community
and to the general populace. We will publish early next year a
monograph containing the presentation of the faculty who presented
at the conference. I urge all interested parties to see the
presentations which are found on line at:
www.youtube.com/user/FonarMRIimaging."
"Our understanding of the Cranio-Cervical Syndrome (CCS) and the
vulnerability of the human neck and its impact on cerebrospinal
fluid (CSF) flow began with our UPRIGHT® MRI research and findings
on multiple sclerosis," said Dr. Damadian. "On September 20, 2011,
I and co-author, FONAR scientist David Chu, PhD., published a paper
titled "The Possible Role of Cranio-Cervical Trauma and Abnormal
CSF Hydrodynamics in the Genesis of Multiple Sclerosis," in the
journal Physiological Chemistry and Physics and Medical
NMR (Sept. 20, 2011, 41: 1-17), found at
http://www.fonar.com/. With this new understanding of the role that
cervical trauma plays in the etiology of disease, it is imperative
to certify that the sustained neck or head injuries of professional
athletes such as NFL football players, whiplash patients and others
with severe neck trauma, have not resulted in any obstructions of
CSF flow, which would eventually lead to the symptomatology of the
Cranio-Cervical Syndrome."
"The Company is fortunate to have as its flagship product the
FONAR UPRIGHT® Multi-Position™ MRI," continued Dr. Damadian. "This
is truly a unique technology producing exquisite images in all
positions of the body. It not only yields a whole new treasure of
new medical applications in such calamitous medical categories as
multiple sclerosis, and other dementia, but it also possesses the
strong potential to provide fresh new insights into the
debilitating chronic consequences of sports injuries, the current
epidemic of automobile whiplash injuries, all spine injuries, and
more diseases yet to be unearthed."
About FONAR
FONAR (NASDAQ: FONR), Melville, NY, The Inventor of MR
Scanning™, was incorporated in 1978, and is the first, oldest and
most experienced MRI company in the industry. FONAR introduced the
world's first commercial MRI in 1980, and went public in 1981.
Since its inception, nearly 300 recumbent-OPEN MRIs and 157
UPRIGHT® Multi-Position™ MRI scanners have been installed
worldwide. FONAR's stellar product is the UPRIGHT® MRI (also known
as the Stand-Up® MRI), the only whole-body MRI that performs
Position™ imaging (pMRI™) and scans patients in numerous
weight-bearing positions, i.e. standing, sitting, in
flexion and extension, as well as the conventional lie-down
position. The FONAR UPRIGHT® MRI often sees the patient's problem
that other scanners cannot because they are lie-down and
"weightless" only scanners. The patient-friendly UPRIGHT®
MRI has a near-zero claustrophobic rejection rate by patients. As a
FONAR customer states, "If the patient is claustrophobic in this
scanner, they'll be claustrophobic in my parking lot."
Approximately 85% of patients are scanned sitting while they watch
a 42" flat screen TV. FONAR is headquartered on Long Island, New
York.
UPRIGHT® and STAND-UP® are registered trademarks and The
Inventor of MR Scanning™, Full Range of Motion™, Multi-Position™,
Upright Radiology™, The Proof is in the Picture™, True Flow™,
pMRI™, Spondylography™, Dynamic™,Spondylometry™, CSP™, and
Landscape™, are trademarks of FONAR Corporation.
This release may include forward-looking statements from the
company that may or may not materialize. Additional information on
factors that could potentially affect the company's financial
results may be found in the company's filings with the Securities
and Exchange Commission.
|
|
FONAR CORPORATION AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT PER SHARE
AMOUNTS) |
|
(UNAUDITED) |
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
September 30, 2013 |
|
|
June 30, 2013* |
|
Current Assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
9,238 |
|
|
$ |
7,871 |
|
|
Accounts receivable - net |
|
|
5,026 |
|
|
|
4,444 |
|
|
Accounts receivable - related party |
|
|
90 |
|
|
|
-- |
|
|
Medical receivable - net |
|
|
8,552 |
|
|
|
8,126 |
|
|
Management and other fees receivable - net |
|
|
12,075 |
|
|
|
11,466 |
|
|
Management and other fees receivable - related medical
practices - net |
|
|
2,743 |
|
|
|
2,382 |
|
|
Inventories |
|
|
2,126 |
|
|
|
2,077 |
|
|
Prepaid expenses and other current assets |
|
|
1,292 |
|
|
|
1,500 |
|
|
|
|
Total
Current Assets |
|
|
41,142 |
|
|
|
37,866 |
|
|
Property and equipment - net |
|
|
17,067 |
|
|
|
17,524 |
|
|
Goodwill |
|
|
1,767 |
|
|
|
1,767 |
|
|
Other intangible assets - net |
|
|
11,608 |
|
|
|
11,904 |
|
|
Deferred income tax asset |
|
|
2,936 |
|
|
|
2,936 |
|
|
Other assets |
|
|
1,078 |
|
|
|
1,154 |
|
|
|
|
Total
Assets |
|
$ |
75,598 |
|
|
$ |
73,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FONAR CORPORATION AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT PER SHARE
AMOUNTS) |
|
(UNAUDITED) |
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
September 30, 2013 |
|
|
June 30, 2013 |
|
Current Liabilities: |
|
|
|
|
|
|
|
|
|
Current portion of long-term debt and capital
leases |
|
|
3,154 |
|
|
|
2,886 |
|
|
Accounts payable |
|
|
2,695 |
|
|
|
2,752 |
|
|
Other current liabilities |
|
|
9,011 |
|
|
|
8,636 |
|
|
Unearned revenue on service contracts |
|
|
5,516 |
|
|
|
4,965 |
|
|
Unearned revenue on service contracts - related
party |
|
|
83 |
|
|
|
-- |
|
|
Customer advances |
|
|
1,917 |
|
|
|
1,858 |
|
|
Income tax payable |
|
|
-- |
|
|
|
20 |
|
|
|
|
Total
Current Liabilities |
|
|
22,376 |
|
|
|
21,117 |
|
|
Long-Term Liabilities: |
|
|
|
|
|
|
|
|
|
Due to related medical practices |
|
|
230 |
|
|
|
231 |
|
|
Long-term debt and capital leases, less current
portion |
|
|
11,649 |
|
|
|
12,887 |
|
|
Deferred income tax liability |
|
|
462 |
|
|
|
462 |
|
|
Other liabilities |
|
|
625 |
|
|
|
654 |
|
|
|
|
Total
Long-Term Liabilities |
|
|
12,966 |
|
|
|
14,234 |
|
|
|
|
Total
Liabilities |
|
|
35,342 |
|
|
|
35,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FONAR CORPORATION AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT PER SHARE
AMOUNTS) |
|
(UNAUDITED) |
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (Continued) |
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
September 30, 2013 |
|
|
June 30, 2013 |
|
|
Class A non-voting preferred stock $.0001 par value;
453 shares authorized at September 30, 2013 and June 30, 2013, 313
issued and outstanding at September 30, 2013 and June 30, 2013 |
|
|
-- |
|
|
|
-- |
|
|
Preferred stock $.001 par value; 567 shares authorized
at September 30, 2013 and June 30, 2013, issued and outstanding -
none |
|
|
-- |
|
|
|
-- |
|
|
Common Stock $.0001 par value; 8,500 shares authorized
at September 30, 2013 and June 30, 2013, 5,999 and 5,981 issued at
September 30, 2013 and June 30, 2013, respectively; 5,988 and 5,969
outstanding at September 30, 2013 and June 30, 2013,
respectively |
|
|
1 |
|
|
|
1 |
|
|
Class B Common Stock (10 votes per share) $.0001 par
value; 227 shares authorized at September 30, 2013 and June 30,
2013; .146 issued and outstanding at September 30, 2013 and June
30, 2013 |
|
|
-- |
|
|
|
-- |
|
|
Class C Common Stock (25 votes per share) $.0001 par
value; 567 shares authorized at September 30, 2013 and June 30,
2013, 383 issued and outstanding at September 30, 2013 and June 30,
2013 |
|
|
-- |
|
|
|
-- |
|
|
Paid-in capital in excess of par value |
|
|
174,628 |
|
|
|
174,499 |
|
|
Accumulated deficit |
|
|
(157,218 |
) |
|
|
(159,655 |
) |
|
Notes receivable from employee stockholders |
|
|
(53 |
) |
|
|
(55 |
) |
|
Treasury stock, at cost - 12 shares of common stock at
September 30, 2013 and June 30, 2013 |
|
|
(675 |
) |
|
|
(675 |
) |
|
Total Fonar Corporation Stockholder Equity |
|
|
16,683 |
|
|
|
14,115 |
|
|
Noncontrolling interests |
|
|
23,573 |
|
|
|
23,685 |
|
|
Total Stockholders' Equity |
|
|
40,256 |
|
|
|
37,800 |
|
|
Total Liabilities and Stockholders' Equity |
|
$ |
75,598 |
|
|
$ |
73,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FONAR CORPORATION AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT PER SHARE
AMOUNTS) |
|
(UNAUDITED) |
|
|
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30, |
|
REVENUES |
|
2013 |
|
|
2012 |
|
|
Product sales - net |
|
$ |
28 |
|
|
$ |
1,041 |
|
|
Service and repair fees - net |
|
|
2,512 |
|
|
|
2,709 |
|
|
Service and repair fees - related parties - net |
|
|
28 |
|
|
|
27 |
|
|
Patient fee revenue, net of contractual allowances and
discounts |
|
|
5,827 |
|
|
|
-- |
|
|
Provision for bad debts for patient fee |
|
|
(2,040 |
) |
|
|
-- |
|
|
Management and other fees - net |
|
|
8,143 |
|
|
|
3,769 |
|
|
Management and other fees - related medical practices - net |
|
|
2,333 |
|
|
|
1,965 |
|
|
Total
Revenues - Net |
|
|
16,831 |
|
|
|
9,511 |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
|
Costs
related to product sales |
|
|
48 |
|
|
|
1,056 |
|
|
Costs
related to service and repair fees |
|
|
544 |
|
|
|
865 |
|
|
Costs
related to service and repair fees - related parties |
|
|
6 |
|
|
|
9 |
|
|
Costs
related to patient fee revenue |
|
|
1,848 |
|
|
|
-- |
|
|
Costs
related to management and other fees |
|
|
5,075 |
|
|
|
2,171 |
|
|
Costs
related to management and other fees - related medical
practices |
|
|
1,219 |
|
|
|
817 |
|
|
Research and development |
|
|
395 |
|
|
|
330 |
|
|
Selling, general and administrative |
|
|
3,737 |
|
|
|
2,212 |
|
|
Provision for bad debts |
|
|
(94 |
) |
|
|
175 |
|
|
Total
Costs and Expenses |
|
|
12,778 |
|
|
|
7,635 |
|
|
Income From Operations |
|
|
4,053 |
|
|
|
1,876 |
|
|
Interest Expense |
|
|
(243 |
) |
|
|
(76 |
) |
|
Investment Income |
|
|
61 |
|
|
|
59 |
|
|
Other
Expense |
|
|
(151 |
) |
|
|
(9 |
) |
|
Income Before Provision for Income Taxes and Noncontrolling
Interests |
|
|
3,720 |
|
|
|
1,850 |
|
|
Provision for Income Taxes |
|
|
100 |
|
|
|
72 |
|
|
Net
Income |
|
|
3,620 |
|
|
|
1,778 |
|
|
Net
Income - Noncontrolling Interests |
|
|
(1,183 |
) |
|
|
(326 |
) |
|
Net
Income - Controlling Interests |
|
$ |
2,437 |
|
|
$ |
1,452 |
|
|
Net
Income Available to Common Stockholders |
|
$ |
2,277 |
|
|
$ |
1,355 |
|
|
Net
Income Available to Class A Non-Voting Preferred Stockholders |
|
$ |
119 |
|
|
$ |
72 |
|
|
Net
Income Available to Class C Common Stockholders |
|
$ |
41 |
|
|
$ |
25 |
|
|
Basic
Net Income Per Common Share Available to Common Stockholders |
|
$ |
0.38 |
|
|
$ |
0.23 |
|
|
Diluted Net Income Per Common Share Available to Common
Stockholders |
|
$ |
0.37 |
|
|
$ |
0.22 |
|
|
Basic
and Diluted Income Per Share - Common C |
|
$ |
0.11 |
|
|
$ |
0.06 |
|
|
Weighted Average Basic Shares Outstanding - Common
Stockholders |
|
|
5,978 |
|
|
|
5,901 |
|
|
Weighted Average Diluted Shares Outstanding - Common
Stockholders |
|
|
6,106 |
|
|
|
6,029 |
|
|
Weighted Average Basic Shares Outstanding - Class C Common |
|
|
383 |
|
|
|
383 |
|
|
Weighted Average Diluted Shares Outstanding - Class C Common |
|
|
383 |
|
|
|
383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Daniel Culver Director of Communications E-mail: Email
Contact Phone: (631) 694-2929 www.fonar.com
Fonar (NASDAQ:FONR)
Historical Stock Chart
From Apr 2024 to May 2024
Fonar (NASDAQ:FONR)
Historical Stock Chart
From May 2023 to May 2024