MELVILLE, NY--(Marketwired - May 15, 2014) - FONAR Corporation (
- Third Quarter Fiscal 2014 Net Revenues increased 46% to $17.0 million over Third Quarter Fiscal 2013
- Third Quarter Fiscal 2014 Diluted Net Income per common share available to common shareholders was $0.26, an increase of 53% over Third Quarter Fiscal 2013
- Third Quarter Fiscal 2014 Net Income was $2.1 million, an increase of 36% over Third Quarter Fiscal 2013
- Record sixteenth (16) straight quarter of positive net income and income from operations of which most recent eleven (11) were greater than $1.5 million
Fonar Corporation (
Statement of Operations Items
Revenues increased 67% to $51.5 million for the nine month period ended March 31, 2014 from $30.8 million for the corresponding nine month period one year earlier. Revenues for the third fiscal quarter ended March 31, 2014 were $17.0 million versus $11.6 million for the corresponding quarter one year earlier.
Net Income increased 77% to $8.8 million for the nine month period ended March 31, 2014 from $5.0 million for the corresponding nine month period one year earlier. Net Income for the third fiscal quarter ended March 31, 2014 was $2.1 million versus $1.6 million for the corresponding nine month period one year earlier.
Income from Operations increased 85% to $9.7 million for the nine month period ended March 31, 2014 from $5.2 million for the corresponding nine month period one year earlier. Income from Operations for the third fiscal quarter ended March 31, 2014 was $2.3 million, an increase of 42% from $1.6 million for the corresponding nine month period one year earlier.
Diluted net income per common share available to common shareholders increased 60% to $0.96 for the nine month period ended March 31, 2014 from $0.60 for the corresponding nine month period one year earlier. Diluted net income per common share available to common shareholder for the third fiscal quarter ended March 31, 2014 was $0.26 versus $0.17 for the corresponding quarter one year earlier, an increase of 53%.
Balance Sheet Items
Total assets at the quarter ended March 31, 2014 were $76.1 million, as compared to $73.2 million at June 30, 2013.
Total liabilities at the quarter ended March 31, 2014 were $32.7 million, as compared to $35.4 million at June 30, 2013.
Total current assets at the quarter ended March 31, 2014 were $43.4 million, as compared to $37.9 million at June 30, 2013.
Total cash and cash equivalents March 31, 2014, were $9.6 million, as compared to $7.9 million at June 30, 2013.
Total current liabilities at the quarter ended March 31, 2014 were $22.2 million, as compared to $21.1 million at June 30, 2013.
Management Discussion
Raymond V. Damadian, president and chairman of Fonar Corporation, said, "We have had increased pressure due to cuts in MRI reimbursements brought about by the Affordable Care Act. Thanks to the uniqueness of our UPRIGHT® full weight-loaded MRI scans, the steadily increasing volumes at the Stand-Up® MRI scanning centers provide significant relief."
"In March, the scan volume at the MRI scanning centers we manage was 15% higher than that of March 2013, setting a new company record," said Dr. Damadian. "I am very pleased."
"We expect to facilitate growth of imaging centers through acquisitions, supporting new UPRIGHT® imaging centers, and increasing scan volume at our existing locations by continuing to educate the medical community about the unique diagnostic advantages of UPRIGHT® Multi-Position™ full weight-loaded MRI," added Dr. Damadian.
Significant Events
The Company will hold its annual meeting on June 23, 2014. Dr. Damadian has issued his annual shareholder letter which can be seen on the Company's Web site at http://www.fonar.com/shareholder_letter_5_2014.htm.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||
(UNAUDITED) | ||||||
ASSETS | ||||||
March 31, 2014 |
June 30, 2013 * |
|||||
Cash and cash equivalents | $ | 9,589 | $ | 7,871 | ||
Accounts receivable - net | 4,444 | 4,444 | ||||
Accounts receivable - related party | 30 | - | ||||
Medical receivable - net | 8,924 | 8,126 | ||||
Management and other fees receivable - net | 12,675 | 11,466 | ||||
Management and other fees receivable - related medical practices - net | 3,463 | 2,382 | ||||
Inventories | 2,510 | 2,077 | ||||
Prepaid expenses and other current assets | 1,708 | 1,500 | ||||
Total Current Assets | 43,343 | 37,866 | ||||
Property and equipment - net | 16,045 | 17,524 | ||||
Goodwill | 1,767 | 1,767 | ||||
Other intangible assets - net | 11,043 | 11,904 | ||||
Deferred income tax asset | 2,936 | 2,936 | ||||
Other assets | 1,013 | 1,154 | ||||
Total Assets | $ | 76,147 | $ | 73,151 | ||
* Condensed from audited financial statements |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
(UNAUDITED) | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
March 31, 2014 |
June 30, 2013 * |
|||||||
Current Liabilities: | ||||||||
Current portion of long-term debt and capital leases | $ | 2,967 | $ | 2,886 | ||||
Accounts payable | 2,863 | 2,752 | ||||||
Other current liabilities | 9,665 | 8,636 | ||||||
Unearned revenue on service contracts | 4,873 | 4,965 | ||||||
Unearned revenue on service contracts - related party | 28 | - | ||||||
Customer advances | 1,791 | 1,858 | ||||||
Income tax payable | - | 20 | ||||||
Total Current Liabilities | 22,187 | 21,117 | ||||||
Long-Term Liabilities: | ||||||||
Due to related medical practices | 231 | 231 | ||||||
Long-term debt and capital leases, less current portion | 9,404 | 12,887 | ||||||
Deferred income tax liability | 462 | 462 | ||||||
Other liabilities | 433 | 654 | ||||||
Total Long-Term Liabilities | 10,530 | 14,234 | ||||||
Total Liabilities | $ | 32,717 | $ | 35,351 | ||||
* Condensed from audited financial statements |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
(UNAUDITED) | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (Continued) | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | March 31, 2014 | June 30, 2013 * | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2014 and June 30, 2013, 313 issued and outstanding at March 31, 2014 and June 30, 2013 | $ | - | $ | - | ||||
Preferred stock $.001 par value; 567 shares authorized at March 31, 2014 and June 30, 2013, issued and outstanding - none | - | - | ||||||
Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2014 and June 30, 2013, 6,037 and 5,981 issued at March 31, 2014 and June 30, 2013, respectively; 6,025 and 5,969 outstanding at March 31, 2014 and June 30, 2013, respectively | 1 | 1 | ||||||
Class B Common Stock (10 votes per share) $ .0001 par value; 227 shares authorized at March 31, 2014 and June 30, 2013, .146 issued and outstanding at March 31, 2014 and June 30, 2013 | - | - | ||||||
Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2014 and June 30, 2013, 383 issued and outstanding at March 31, 2014 and June 30, 2013 | - | - | ||||||
Paid-in capital in excess of par value | 175,023 | 174,499 | ||||||
Accumulated deficit | (153,336 | ) | (159,655 | ) | ||||
Notes receivable from employee stockholders | (41 | ) | (55 | ) | ||||
Treasury stock, at cost - 12 shares of common stock at March 31, 2014 and June 30, 2013 | (675 | ) | (675 | ) | ||||
Total Fonar Corporation Stockholder Equity | 20,972 | 14,115 | ||||||
Non controlling interests | 22,458 | 23,685 | ||||||
Total Stockholders' Equity | 43,430 | 37,800 | ||||||
Total Liabilities and Stockholders' Equity | $ | 76,147 | $ | 73,151 | ||||
* Condensed from audited financial statements |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||
(UNAUDITED) | ||||||||||
FOR THE THREE MONTHS ENDED MARCH 31 | ||||||||||
REVENUES | 2014 | 2013 | ||||||||
Product sales - net | $ | 478 | $ | 416 | ||||||
Service and repair fees - net | 2,518 | 2,867 | ||||||||
Service and repair fees - related parties - net | 27 | 27 | ||||||||
Patient fee revenue, net of contractual allowances and discounts | 6,090 | 965 | ||||||||
Provision for bad debts for patient fee | (2,868 | ) | - | |||||||
Management and other fees - net | 8,538 | 5,402 | ||||||||
Management and other fees - related medical practices - net | 2,257 | 1,965 | ||||||||
Total Revenues - Net | 17,040 | 11,642 | ||||||||
COSTS AND EXPENSES | ||||||||||
Costs related to product sales | 223 | 498 | ||||||||
Costs related to service and repair fees | 623 | 819 | ||||||||
Costs related to service and repair fees - related parties | 7 | 8 | ||||||||
Costs related to patient fee revenue | 1,947 | 791 | ||||||||
Costs related to management and other fees | 5,327 | 2,606 | ||||||||
Costs related to management and other fees - related medical practices | 1,318 | 900 | ||||||||
Research and development | 360 | 381 | ||||||||
Selling, general and administrative | 3,935 | 3,774 | ||||||||
Provision for bad debts | 981 | 235 | ||||||||
Total Costs and Expenses | 14,721 | 10,012 | ||||||||
Income From Operations | 2,319 | 1,630 | ||||||||
Interest Expense | (203 | ) | (79 | ) | ||||||
Investment Income | 57 | 55 | ||||||||
Other Income | 39 | - | ||||||||
Income Before Provision for Income Taxes | 2,212 | 1,606 | ||||||||
Provision for Income Taxes | 65 | 25 | ||||||||
Net Income | 2,147 | 1,581 | ||||||||
Net Income - Non Controlling Interests | (408 | ) | (505 | ) | ||||||
Net Income - Controlling Interests | $ | 1,739 | $ | 1,076 | ||||||
Net Income Available to Common Stockholders | $ | 1,625 | $ | 1,005 | ||||||
Net Income Available to Class A Non-Voting Preferred Stockholders | $ | 85 | $ | 53 | ||||||
Net Income Available to Class C Common Stockholders | $ | 29 | $ | 18 | ||||||
Basic Net Income Per Common Share Available to Common Stockholders | $ | 0.27 | $ | 0.17 | ||||||
Diluted Net Income Per Common Share Available to Common Stockholders | $ | 0.26 | $ | 0.17 | ||||||
Basic and Diluted Income Per Share-Common C | $ | 0.08 | $ | 0.05 | ||||||
Weighted Average Basis Shares Outstanding-Common Stockholders | 6,022 | 5,937 | ||||||||
Weighted Average Diluted Shares Outstanding | 6,150 | 6,065 | ||||||||
Weighted Average Basic Shares Outstanding - Class C | 383 | 383 | ||||||||
Weighted Average Diluted Shares Outstanding - Class C Common | 383 | 383 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||
(UNAUDITED) | ||||||||||
FOR THE NINE MONTHS ENDED MARCH 31, | ||||||||||
REVENUES | 2014 | 2013 | ||||||||
Product sales - net | $ | 1,261 | $ | 2,536 | ||||||
Service and repair fees - net | 7,578 | 8,341 | ||||||||
Service and repair fees - related parties - net | 83 | 83 | ||||||||
Patient fee revenue, net of contractual allowances and discounts | 17,811 | 965 | ||||||||
Provision for bad debts for patient fee | (7,130 | ) | - | |||||||
Management and other fees - net | 24,955 | 12,946 | ||||||||
Management and other fees - related medical practices - net | 6,923 | 5,895 | ||||||||
Total Revenues - Net | 51,481 | 30,766 | ||||||||
COSTS AND EXPENSES | ||||||||||
Costs related to product sales | 902 | 2,457 | ||||||||
Costs related to service and repair fees | 1,755 | 2,579 | ||||||||
Costs related to service and repair fees - related parties | 19 | 26 | ||||||||
Costs related to patient fee revenue | 5,823 | 791 | ||||||||
Costs related to management and other fees | 15,591 | 7,013 | ||||||||
Costs related to management and other fees - related medical practices | 3,808 | 2,568 | ||||||||
Research and development | 1,128 | 1,031 | ||||||||
Selling, general and administrative | 12,024 | 8,338 | ||||||||
Provision for bad debts | 763 | 735 | ||||||||
Total Costs and Expenses | 41,813 | 25,538 | ||||||||
Income From Operations | 9,668 | 5,228 | ||||||||
Interest Expense | (682 | ) | (258 | ) | ||||||
Investment Income | 178 | 174 | ||||||||
Other Expense | (113 | ) | (13 | ) | ||||||
Income Before Provision for Income Taxes | 9,051 | 5,131 | ||||||||
Provision for Income Taxes | 235 | 152 | ||||||||
Net Income | 8,816 | 4,979 | ||||||||
Net Income - Non Controlling Interests | (2,497 | ) | (1,103 | ) | ||||||
Net Income - Controlling Interests | $ | 6,319 | $ | 3,876 | ||||||
Net Income Available to Common Stockholders | $ | 5,907 | $ | 3,621 | ||||||
Net Income Available to Class A Non-voting Preferred Stockholders | $ | 307 | $ | 190 | ||||||
Net Income Available to Class C Common Stockholders | $ | 105 | $ | 65 | ||||||
Basic Net Income Per Common Share Available to Common Stockholders | $ | 0.98 | $ | 0.61 | ||||||
Diluted Net Income Per Common Share Available to Common Stockholders | $ | 0.96 | $ | 0.60 | ||||||
Basic and Diluted Income Per Share-Common C | $ | 0.27 | $ | 0.17 | ||||||
Weighted Average Basic Shares Outstanding | 6,002 | 5,921 | ||||||||
Weighted Average Diluted Shares Outstanding | 6,130 | 6,049 | ||||||||
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
The Inventor of MR Scanning™
An ISO 9001 Company
Melville, New York 11747
Phone: (631) 694-2929
Fax: (631) 390-1709