MELVILLE, NY--(Marketwired - Feb 14, 2014) - FONAR Corporation (
FONAR Corporation (
Statement of Operations Items
Income from operations for the quarter ended December 31, 2013, increased 91% to $3.3 million, as compared to $1.7 million for the same period one year earlier. For the six month period ended December 31, 2013, income from operations was $7.4 million as compared to $3.6 million during the corresponding period one year earlier, an increase of 104%.
Net Income for the quarter ended December 31, 2013, increased 88% to $3.0 million, as compared to $1.6 million for the same period one year earlier. For the six month period ended December 31, 2013, net income was $6.7 million as compared to $3.4 million during the corresponding period one year earlier, an increase of 96%.
Diluted Net Income per Common Share available to Common shareholders for the quarter ended December 31, 2013 increased 57% to $0.33, as compared to $0.21 for the same period one year earlier.
For the six month period ended December 31, 2013, Diluted Net Income per Common Share available to Common shareholders increased 63% to $0.70, as compared to $0.43 for the same period one year earlier.
Total revenues for the quarter ended December 31, 2013, increased 83% to $17.6 million as compared to $9.6 million during the same period one year earlier. For the six month period ended December 31, 2013, total revenues increased 80% to $34.4 million as compared to $19.1 million, one year earlier.
Revenue from the patient fee segment and management and other fees segment, for the quarter ended December 31, 2013, increased 149% to $14.3 million, as compared to $5.7 million during the same period one year earlier. At six months this also increased 149% to $28.5 million as compared to the same period one year earlier at $11.5 million. This is the revenue that comes from patient fees and the management of the 23 FONAR Stand-Up™ MRI diagnostic imaging centers, by FONAR's HMCA subsidiary.
Balance Sheet Items
At December 31, 2013, total current assets were $43.5 million, total assets were $77.1 million, total current liabilities were $23.2 million, and total long-term liabilities were $11.8 million.
At December 31, 2013, total cash and cash equivalents were $9.4 million.
At December 31, 2013, total stockholder's equity was $42.1 million.
See the accompanying tables for more details.
Recent Significant Events
In December, 2013, the Company settled a two-year old patent infringement case brought against it. The infringement action alleged that FONAR's Upright® MRI scanners infringe plaintiff's patent which relates to the moving of a patient into the scanner. The Company took the position that the plaintiff's claims were without merit and that their patent was invalid. The parties have settled the case and while FONAR will pay $150,000, there are certain licenses and covenants not to sue again.
Management Discussion
The acquisition of Health Diagnostic Management (HDM) has been a significant source of profitability for the Company. The diluted earnings per share available for the common stockholder for the six months which ended on December 31, 2013 increased 63% to $0.70 when compared to one year earlier. The Company plans to continue to grow at a reasonable pace while maintaining its highly profitable profile."
FONAR (
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 | ||||||
ASSETS | December 31, 2013 |
June 30, 2013 |
||||
Cash and cash equivalents | $ | 9,425 | $ | 7,871 | ||
Accounts receivable - net | 5,359 | 4,444 | ||||
Accounts receivable - related party | 60 | - | ||||
Medical receivable - net | 8,884 | 8,126 | ||||
Management and other fees receivable - net | 12,347 | 11,466 | ||||
Management and other fees receivable - related medical practices - net | 2,985 | 2,382 |
||||
Inventories | 2,562 | 2,077 | ||||
Prepaid expenses and other current assets | 1,901 | 1,500 | ||||
Total Current Assets | 43,523 | 37,866 | ||||
Property and equipment - net | 16,538 | 17,524 | ||||
Goodwill | 1,767 | 1,767 | ||||
Other intangible assets - net | 11,271 | 11,904 | ||||
Deferred income tax asset | 2,936 | 2,936 | ||||
Other assets | 1,050 | 1,154 | ||||
Total Assets | $ | 77,085 | $ | 73,151 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | December 31, 2013 |
June 30, 2013 |
||||||
Current Liabilities: | ||||||||
Current portion of long-term debt and capital leases | $ | 3,048 | $ | 2,886 | ||||
Accounts payable | 2,941 | 2,752 | ||||||
Other current liabilities | 9,401 | 8,636 | ||||||
Unearned revenue on service contracts | 5,725 | 4,965 | ||||||
Unearned revenue on service contracts - related party | 55 | - | ||||||
Customer advances | 2,041 | 1,858 | ||||||
Income tax payable | - | 20 | ||||||
Total Current Liabilities | 23,211 | 21,117 | ||||||
Long-Term Liabilities: | ||||||||
Due to related medical practices | 229 | 231 | ||||||
Long-term debt and capital leases, less current portion | 10,530 | 12,887 | ||||||
Deferred income tax liability | 462 | 462 | ||||||
Other liabilities | 596 | 654 | ||||||
Total Long-Term Liabilities | 11,817 | 14,234 | ||||||
Total Liabilities | 35,028 | 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: | December 31, 2013 | June 30, 2013 | ||||||
Class A non-voting preferred stock $.0001 par value; 453 shares authorized at December 31, 2013 and June 30, 2013, 313 issued and outstanding at December 31, 2013 and June 30, 2013 | - | - | ||||||
Preferred stock $.001 par value; 567 shares authorized at December 31, 2013 and June 30, 2013, issued and outstanding - none | - | - | ||||||
Common Stock $.0001 par value; 8,500 shares authorized at December 31, 2013 and June 30, 2013, 6,022 and 5,981 issued at December 31, 2013 and June 30, 2013, respectively; 6,010 and 5,969 outstanding at December 31, 2013 and June 30, 2013, respectively | 1 | 1 | ||||||
Class B Common Stock (10 votes per share) $ .0001 par value; 227 shares authorized at December 31, 2013 and June 30, 2013, .146 issued and outstanding at December 31, 2013 and June 30, 2013 | - | - | ||||||
Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at December 31, 2013 and June 30, 2013, 383 issued and outstanding at December 31, 2013 and June 30, 2013 | - | - | ||||||
Paid-in capital in excess of par value | 174,770 | 174,499 | ||||||
Accumulated deficit | (155,075 | ) | (159,655 | ) | ||||
Notes receivable from employee stockholders | (42 | ) | (55 | ) | ||||
Treasury stock, at cost - 12 shares of common stock at December 31, 2013 and June 30, 2013 | (675 |
) | (675 |
) | ||||
Total Fonar Corporation Stockholder Equity | 18,979 | 14,115 | ||||||
Non controlling interests | 23,078 | 23,685 | ||||||
Total Stockholders' Equity | 42,057 | 37,800 | ||||||
Total Liabilities and Stockholders' Equity | $ | 77,085 | $ | 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 DECEMBER 31, | ||||||||||
REVENUES | 2013 | 2012 | ||||||||
Product sales - net | $ | 755 | $ | 1,080 | ||||||
Service and repair fees - net | 2,548 | 2,765 | ||||||||
Service and repair fees - related parties - net | 28 | 28 | ||||||||
Patient fee revenue, net of contractual allowances and discounts | 5,894 | - | ||||||||
Provision for bad debts for patient fee | (2,223 | ) | - | |||||||
Management and other fees - net | 8,274 | 3,775 | ||||||||
Management and other fees - related medical practices - net | 2,333 | 1,965 | ||||||||
Total Revenues - Net | 17,609 | 9,613 | ||||||||
COSTS AND EXPENSES | ||||||||||
Costs related to product sales | 631 | 904 | ||||||||
Costs related to service and repair fees | 587 | 894 | ||||||||
Costs related to service and repair fees - related parties | 6 | 9 | ||||||||
Costs related to patient fee revenue | 2,028 | - | ||||||||
Costs related to management and other fees | 5,190 | 2,235 | ||||||||
Costs related to management and other fees - related medical practices | 1,270 | 852 | ||||||||
Research and development | 374 | 320 | ||||||||
Selling, general and administrative | 4,352 | 2,352 | ||||||||
Provision for bad debts | (124 | ) | 325 | |||||||
Total Costs and Expenses | 14,314 | 7,891 | ||||||||
Income From Operations | 3,295 | 1,722 | ||||||||
Interest Expense | (237 | ) | (103 | ) | ||||||
Investment Income | 60 | 60 | ||||||||
Other Expense | - | (4 | ) | |||||||
Income Before Provision for Income Taxes and Non Controlling Interests | 3,118 | 1,675 | ||||||||
Provision for Income Taxes | 70 | 55 | ||||||||
Net Income | 3,048 | 1,620 | ||||||||
Net Income - Non Controlling Interests | (905 | ) | (271 | ) | ||||||
Net Income - Controlling Interests | $ | 2,143 | $ | 1,349 | ||||||
Net Income Available to Common Stockholders | $ | 2,003 | $ | 1,259 | ||||||
Net Income Available to Class A Non-Voting Preferred Stockholders | $ | 104 | $ | 67 | ||||||
Net Income Available to Class C Common Stockholders | $ | 36 | $ | 23 | ||||||
Basic Net Income Per Common Share Available to Common Stockholders | $ | 0.33 | $ | 0.21 | ||||||
Diluted Net Income Per Common Share Available to Common Stockholders | $ | 0.33 | $ | 0.21 | ||||||
Basic and Diluted Income Per Share-Common C | $ | 0.09 | $ | 0.06 | ||||||
Weighted Average Basis Shares Outstanding-Common Stockholders | 6,006 | 5,926 | ||||||||
Weighted Average Diluted Shares Outstanding | 6,133 | 6,054 | ||||||||
Weighted Average Basic Shares Outstanding - Class C | 383 | 383 | ||||||||
Weighted Average Diluted Shares Outstanding - Class C Common | 383 | 383 | ||||||||
FONAR CORPORATION AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||
(UNAUDITED) | ||||||||||
FOR THE SIX MONTHS ENDED DECEMBER 31, | ||||||||||
2013 | 2012 | |||||||||
REVENUES | ||||||||||
Product sales - net | $ | 783 | $ | 2,121 | ||||||
Service and repair fees - net | 5,060 | 5,474 | ||||||||
Service and repair fees - related parties - net | 55 | 55 | ||||||||
Patient fee revenue, net of contractual allowances and discounts | 11,721 | - | ||||||||
Provision for bad debts for patient fee | (4,262 | ) | - | |||||||
Management and other fees - net | 16,417 | 7,544 | ||||||||
Management and other fees - related medical practices - net | 4,666 | 3,930 | ||||||||
Total Revenues - Net | 34,440 | 19,124 | ||||||||
COSTS AND EXPENSES | ||||||||||
Costs related to product sales | 678 | 1,959 | ||||||||
Costs related to service and repair fees | 1,131 | 1,760 | ||||||||
Costs related to service and repair fees - related parties | 12 | 18 | ||||||||
Costs related to patient fee revenue | 3,877 | - | ||||||||
Costs related to management and other fees | 10,264 | 4,406 | ||||||||
Costs related to management and other fees - related medical practices | 2,490 | 1,669 | ||||||||
Research and development | 769 | 650 | ||||||||
Selling, general and administrative | 8,089 | 4,564 | ||||||||
Provision for bad debts | (218 | ) | 500 | |||||||
Total Costs and Expenses | 27,092 | 15,526 | ||||||||
Income From Operations | 7,348 | 3,598 | ||||||||
Interest Expense | (480 | ) | (179 | ) | ||||||
Investment Income | 121 | 120 | ||||||||
Other Expense | (151 | ) | (13 | ) | ||||||
Income Before Provision for Income Taxes and Non Controlling Interests | 6,838 | 3,526 | ||||||||
Provision for Income Taxes | 170 | 127 | ||||||||
Net Income | 6,668 | 3,399 | ||||||||
Net Income - Non Controlling Interests | (2,088 | ) | (598 | ) | ||||||
Net Income - Controlling Interests | $ | 4,580 | $ | 2,801 | ||||||
Net Income Available to Common Stockholders | $ | 4,280 | $ | 2,616 | ||||||
Net Income Available to Class A Non-voting Preferred Stockholders | $ | 223 | $ | 138 | ||||||
Net Income Available to Class C Common Stockholders | $ | 77 | $ | 47 | ||||||
Basic Net Income Per Common Share Available to Common Stockholders | $ | 0.71 | $ | 0.44 | ||||||
Diluted Net Income Per Common Share Available to Common Stockholders | $ | 0.70 | $ | 0.43 | ||||||
Basic and Diluted Income Per Share-Common C | $ | 0.20 | $ | 0.12 | ||||||
Weighted Average Basic Shares Outstanding | 5,992 | 5,914 | ||||||||
Weighted Average Diluted Shares Outstanding | 6,120 | 6,041 | ||||||||
Weighted Average Basic Shares Outstanding - Class C Common | 383 | 383 | ||||||||
Weighted Average Diluted Shares Outstanding - Class C Common | 383 | 383 |
Contact Information:
Contact:
Daniel Culver
Director of Communications
E-mail:
www.fonar.com