Daxor Corporation Announces Second Quarter 2011 Earnings

NEW YORK, NY--(Marketwire - Aug 9, 2011) - Daxor Corporation (NYSE Amex: DXR)

		Three Months Ended								Six Months Ended
		June 30, 2011				June 30, 2010				June 30, 2011				June 30, 2010
Total Operating Revenue		$	358,139			$	368,332			$	735,608			$	764,604
Total Costs & Expenses			1,701,936				1,873,402				4,255,342				3,611,830
Loss From Operations			(1,343,797	)			(1,505,070	)			(3,519,734	)			(2,847,226	)
Total Other Income			976,946				1,653,480				766,608				3,487,309
Income (Loss) Before Income Taxes			(366,851	)			148,410				(2,753,126	)			640,083
Income Tax Expense (Benefit)			(182,331	)			(39,946	)			(1,242,344	)			544,146
Net Income (Loss)		$	(184,520	)		$	188,356			$	(1,510,782	)		$	95,937
Weighted Average Number of Shares Outstanding			4,225,349				4,242,285				4,225,743				4,244,785
Income (Loss) Per Share		$	(0.04	)		$	0.04			$	(0.36	)		$	0.02

Daxor Corporation (NYSE Amex: DXR), a medical instrumentation and biotechnology company, today announced earnings for the second quarter of 2011. The Company had a net loss per share of $(0.04) during the current quarter versus net income of $0.04 per share for the quarter ended June 30, 2010. Other income includes realized gains on sales of securities and options and dividend income of $2,779,561 for the current quarter versus $2,008,523 for the same period in 2010. The Company continues to be dependent upon income from investments to offset losses from operations.

Income tax benefit for the three months ended June 30, 2011 and 2010 includes accruals of $306,920 and $151,822 for income tax and $81,061 and $22,528 for personal holding company tax. These tax accruals were completely offset by reductions of $570,312 in 2011 and $214,296 in 2010 for deferred taxes primarily attributable to the loss from the marking to market of short positions.

For the three months ended June 30, 2011 total operating revenues decreased by $10,193 or 3% to $358,139 from $368,332 in 2010. This is directly attributable to a decrease in revenue from cryobanking. There were no BVA-100 Blood Volume Analyzers sold in the second quarter of 2011 or 2010. The drastic reduction of 33% in Medicare reimbursement for diagnostic radiopharmaceutical products such as Daxor's Volumex Kit that became effective in 2008 continues to negatively impact the sale of Blood Volume Analyzers.

Company Management believes that this reduction in reimbursement for the Volumex Kit will ultimately prove to be self defeating because it is likely to result in the discharge of inadequately treated congestive heart failure patients from hospitals. This will in turn lead to higher rates of readmission and increased death rates in congestive heart failure patients which could otherwise be avoided.

The Company engages in short-term trial agreements to allow customers to begin utilization of the instrument and to become familiar with the clinical benefits of a measured blood volume prior to purchase of the instrument.

Total costs and operating expenses for the second quarter of 2011 decreased by $171,466 or 9% to $1,701,936 from $1,873,402 for the second quarter of 2010 primarily due to reductions of $44,160 in professional fees, $33,139 in laboratory supplies and $44,882 in payroll and related expenses. The Company incurred $143,191 of Legal Expenses during the second quarter for the SEC Administrative Proceeding which contributed approximately $(0.03) per share to the net loss of $(0.04) per share.

The Company had a net loss of per share of $(0.36) during the current six month period versus net income of $0.02 for the same period in 2010. Other income includes realized gains on sales of securities and options and dividend income of $7,097,600 for the current six month period versus $8,653,313 for the same period in 2010.

Income tax benefit for the six months ended June 30, 2011 includes accruals of $987,486 for income tax and $135,496 for personal holding company tax. This was completely offset by a reduction of $2,365,326 for deferred taxes primarily attributable to the loss from the marking to market of short positions. Income tax expense for the six months ended June 30, 2010 included accruals $1,972,290 of income tax and $789,553 of personal holding company tax which were mostly offset by a reduction of $2,217,697 for deferred taxes.

For the six months ended June 30, 2011, consolidated operating revenues decreased to $735,608 from $764,604 for the same period in 2010, a decrease of $28,996 or 4% which was mainly due to a reduction of $19,195 in revenue from cryobanking and related services. There were no Blood Volume Analyzers sold during the six months ended June 30, 2011 and June 30, 2010.

Total costs and operating expenses for the six months ended June 30, 2011 were $4,255,342 versus $3,611,830 for the same period in 2010 for an increase of $643,512 or 18%. Professional fees were $873,945 higher during the current six month period versus the same period in 2010. There were $1,014,839 of Legal Expenses incurred during the six months ended June 30, 2011 for the SEC Administrative Proceeding.

The proceeding took place from March 7, 2011 through March 9, 2011 in New York City. The Company presented over 500 exhibits during the proceeding. Management feels strongly that this extensive documentation of its history of operations will demonstrate that it is primarily an operating medical instrumentation and biotechnology company and not primarily an investment company. The Company expects to receive a decision from the SEC by September 6, 2011.

The SEC proceeding is described in greater detail in the Company's Form 10-Q for the Quarter ended June 30, 2011 which will be filed later today.

The Company has maintained and increased spending on marketing and research and development even as operating losses have increased. The Company has disclosed in previous public filings that it is dependent upon earnings from its investment portfolio in order to continue these efforts. Dr. Joseph Feldschuh, the Company's President and Chief Executive Officer, has sole responsibility for investment decisions with respect to the Company's investment portfolio.

At June 30, 2011, the Company had total assets of $96,237,008 with total stockholders' equity of $45,580,753 versus total assets of $91,195,415 and $46,995,044 of stockholders' equity at December 31, 2010. The decrease in stockholders' equity is mainly due to the net loss of $(1,510,782) during the current period.

The Company is committed to continuing its research and development program as part of the ongoing effort to develop products that are complementary to its current product line. There were 58 Blood Volume Analyzers in service at June 30, 2011 versus 55 instruments at June 30, 2010.

Gains on sales of securities and options and dividend income were $7,097,600 or 23.3% of average invested capital for the six months ended June 30, 2011 and $8,653,313 or 29.3% for the six months ended June 30, 2010.

The Company paid a dividend of $0.15 per share on June 16, 2011.

In 2008, Management instituted a policy of paying dividends when funds were available.

For the Year Ended December 31, 2010, the Company paid a total dividend of $1.00 per share as follows: $0.10 per share on June 16^th and $0.25 per share on September 30^th along with a yearend dividend of $0.65 per share on December 30^th.

For more detailed information on our financial results, please refer to our Form 10-Q for the quarter ended June 30, 2011 which will be filed later today.

The BVA-100 Blood Volume Analyzer produced and marketed by Daxor Corporation provides key information that can be used to diagnose and treat various medical conditions including congestive heart failure, hypertension, anemia, blood loss during surgery, trauma, and shock (collapse of blood pressure). At the present time, physicians must treat these conditions by guessing whether or not they are due to volume expansions or contractions. The Blood Volume Analyzer allows precise quantitation of patients' total blood volume and red blood cell volume, which takes the guesswork out of this process. Appropriate therapies can then be employed to correct excesses or deficits in volume, leading to better outcomes for patients.

The passage of the Patient Protection and Affordable Care Act (H.R. 3590) in March 2010 gave Centers for Medicare and Medicaid Services (CMS) the authority to penalize hospitals for excess readmission rates in heart failure, acute myocardial infarction, and pneumonia beginning in 2013. Hospitals that readmit heart failure patients within 30 days of discharge will not be reimbursed. This has important financial implications, as it effectively penalizes hospitals for not optimally treating patients during their initial visits.

This highlights a significant opportunity for the BVA-100, which may be used to identify patients at higher risk of mortality due to inadequate treatment of blood volume overload. This may help to drive increased utilization of the BVA-100: Medicare reimburses hospitals on the basis of diagnostic related guidelines (DRGs). Under the current system, when a patient is admitted for heart failure, the hospital is paid the same amount of money whether the patient is hospitalized for 2 days or for 10 days. Not surprisingly, the hospital's physicians are under great pressure to discharge the patient as quickly as possible. This has produced a situation in which between 20%-30% of heart failure patients are readmitted within 30 days or less.