Welcome!

News Feed Item

FONAR Announces Fiscal 2014 Second Quarter Earnings Results

MELVILLE, NY -- (Marketwired) -- 02/14/14 -- FONAR Corporation (NASDAQ: FONR),

  • Second Fiscal 2014 Quarter Net Revenues increase 83% over Second Fiscal Quarter 2013 to $17.6 million.
  • Second Fiscal 2014 Quarter Net Income increases 88% over Second Fiscal Quarter 2013 to $3.0 million
  • Diluted EPS Available to Common Stockholders for the Second Fiscal 2014 Quarter was $0.33, an increase of 57% over Second Fiscal Quarter 2013
  • FONAR records Fifthteenth straight quarter of positive Net Income and Income from Operations of which most recent ten were greater than $1.5 Million

FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported its second quarter, fiscal 2014 results for the quarter ended December 31, 2013. The Company's two industry segments include the management of 23 Stand-Up® MRI (UPRIGHT® MRI) centers as well as its traditional MRI development, manufacturing and service business. Its stellar product line includes the FONAR UPRIGHT® Multi-Position™ MRI (aka STAND-UP® MRI which enables full weight-bearing MRI imaging and is particularly powerful in 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.

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."

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

                                                 December 31,     June 30,
ASSETS                                                2013          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

                                                 December 31,    June 30,
LIABILITIES                                           2013          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)

                                                 December 31,    June 30,
STOCKHOLDERS' EQUITY:                                2013          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:
Daniel Culver
Director of Communications
E-mail: Email Contact
www.fonar.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.