(NYSE Amex: DXR) Daxor Corporation Announces Third Quarter 2010 Earnings and an Update on the Team HF Study


NEW YORK, NY--(Marketwire - November 12, 2010) - Daxor Corporation (NYSE Amex: DXR)


                           Three Months Ended        Nine Months Ended
                              September 30              September 30

                            2010         2009         2010       2009
                        -----------  -----------  -----------  -----------
Total Operating
 Revenues               $   453,281  $   414,376  $ 1,217,885  $ 1,228,833
Total Costs & Expenses  $ 1,738,146  $ 1,661,809  $ 5,349,976  $ 4,936,868
                        -----------  -----------  -----------  -----------
Loss from Operations    $(1,284,865) $(1,247,433) $(4,132,091) $(3,708,035)

Total Other Income      $ 5,688,781  $ 3,946,122  $ 9,176,090  $11,613,102
                        -----------  -----------  -----------  -----------

Income Before
Income Taxes            $ 4,403,916  $ 2,698,689  $ 5,043,999  $ 7,905,067

Income Tax Expense      $ 1,799,112  $    72,847  $ 2,343,258  $   583,814
                        -----------  -----------  -----------  -----------

Net Income              $ 2,604,804  $ 2,625,842  $ 2,700,741  $ 7,321,253
                        -----------  -----------  -----------  -----------

Weighted Average Number
Of Shares Outstanding-
Basic                     4,232,691    4,250,518    4,240,753    4,266,707

Earnings Per Share-
Basic                   $      0.62  $      0.62  $      0.64  $      1.72

Weighted Average Number
Of Shares Outstanding-
Diluted                   4,232,691    4,250,518    4,240,753    4,288,707

Earnings Per Share-
Diluted                 $      0.62  $      0.62  $      0.64  $      1.71

Daxor Corporation, (NYSE Amex: DXR), a medical instrumentation and biotechnology company, today announced earnings for the third quarter of 2010. The Company had net income of $0.62 per share for the current quarter versus net income of $0.62 per share for the same period in 2009. Other Income includes realized gains on sales of securities and dividend income of $3,006,188 for the current quarter versus $5,212,730 for the same period in 2009. The Company continues to be dependent upon income from investments to cover losses from operations.

Income tax expense for the three months ended September 30, 2010 and 2009 includes accruals of $782,792 and tax benefits of $(254,844) respectively, for Federal and State income taxes. Also included in Income tax expense for the comparative three month periods are accruals of $80,943 and $180,000 for personal holding company tax and deferred tax expense of $935,377 and $147,691.

Income tax expense for the nine months ended September 30, 2010 and 2009 includes accruals of $2,755,082 and $1,593,125 for income taxes and $870,496 and $785,000 for personal holding company tax. These accruals were mostly offset by reductions of $1,282,320 and $1,794,311 for deferred taxes attributable to the marking to market of short positions.

The Company had net income of $0.64 per share for the nine months ended September 30, 2010 versus net income of $1.72 per share for the same period in 2009. Other Income includes realized gains on sales of securities and dividend income of $11,659,501 for the current nine month period versus $12,287,683 for the same period in 2009.

For the three months ended September 30, 2010, total operating revenues increased to $453,281 from $414,376 for the same period in 2009, an increase of $38,905 or 9.4%. This is mainly attributable to the sale of one Blood Volume Analyzer during the current quarter for $65,000 versus no instruments being sold during the quarter ended September 30, 2009. The revenue from Blood Volume Kit Sales decreased to $257,783 from $293,055 during the current quarter for a reduction of $35,272 or 12.0%.

Total costs and operating expenses increased during the three months ended September 30, 2010 by $76,337 or 4.6% to $1,738,146 versus $1,661,809 for the same period in 2009. This is mostly attributable to an increase in professional fees of $77,836 for the current quarter.

For the nine months ended September 30, 2010 total operating revenues decreased to $1,217,885 from $1,228,833 for the same period in 2009, a decrease of $10,948. The Company sold one Blood Volume Analyzer during the current nine month period for $65,000 versus no instruments being sold during the same period in 2009. This was offset by a decrease of $86,626 or 10.1% in revenue from Blood Volume Kit Sales to $770,695 during the current nine month period versus $857,321 for the same period last year.

Total costs and operating expenses increased for the current nine month period by $413,108 or 8.4% to $5,349,976 versus $4,936,868 for the same period in 2009. This is mainly due to increases in research and development costs of $335,893 and professional fees of $195,901 during the current period.

At September 30, 2010, the Company had total assets of $86,248,076 with total stockholders' equity of $48,315,097 versus total assets of $75,186,990 and $47,625,337 of stockholders' equity at December 31, 2009.

The company is maintaining its efforts associated with research and development as part of the ongoing effort to develop products that are complementary to its current product line. There were 56 Blood Volume Analyzers placed in medical facilities as of September 30, 2010 versus 55 instruments as of September 30, 2009.

The Company has paid a total dividend of $0.35 for the nine months ended September 30, 2010 as follows: $0.10 per share on June 16, 2010 and $0.25 per share on September 30, 2010. The Board of Directors will decide in the near future about the next dividend payment for 2010.

For the Year Ended December 31, 2009, the Company paid a total dividend of $1.35 per share as follows: $0.10 per share on June 15th and $0.25 per share on September 8th along with a year end dividend of $1.00 per share on December 24th.

The goal of Management is to follow a similar policy for 2010 and pay a total dividend of $1.00 per share for the year if funds are available.

The Board of Directors authorized the continuation of the common share buyback program of up to 250,000 shares per year.

Daxor Corporation is sponsoring a multi-center, prospective, randomized clinical trial (TEAM-HF) which will compare heart failure management strategies based on either standard clinical practices or on direct blood volume measurement through use of Daxor's Blood Volume Analyzer BVA-100. Dr. Stuart Katz, the Helen L. and Martin S. Kimmel Professor of Advanced Cardiac Therapeutics and Director of the Heart Failure Program at New York University, will serve as the National Principal Investigator for this study. The objective of the TEAM-HF Study is to determine whether incorporation of blood volume results into the diagnosis and treatment of HF patients leads to decreased hospitalization and mortality, and an improvement in exercise capacity and quality of life. This trial will enroll 300 heart failure patients from 12 medical centers. If it can be demonstrated in a large-scale study that blood volume analysis leads to better patient outcomes, the BVA-100 may become a standard of care in heart failure. Patient enrollment into this study is expected to begin at the end of the fourth quarter of 2010.

On September 17, 2010, the United States Securities and Exchange Commission ("SEC") instituted administrative proceedings pursuant to the Investment Company Act of 1940 in an attempt to have Daxor declared an Investment Company. A hearing on the Investment Company issue was originally scheduled for November 8, 2010. A teleconference was held instead and it is now expected that the hearing will be held in the latter part of the First Quarter of 2011.

The Company feels strongly that its history of operations demonstrate that it is primarily an operating medical instrumentation and Biotechnology Company and not primarily an Investment Company. Daxor intends to defend its position before the SEC and if need be, in the courts.

For more detailed information on our financial results and the SEC administrative proceedings, please refer to our Form 10-Q for the quarter ended September 30, 2010 which will be filed later today.

Contact Information: Contact Information: Daxor Corporation Stephen Feldschuh 212-330-8515 Chief Operating Officer stephen@daxor.com David Frankel 212-330-8504 Chief Financial Officer dfrankel@daxor.com