Welcome!

News Feed Item

FONAR Announces 3rd Quarter Fiscal 2014 & Nine Month Earnings Report

MELVILLE, NY -- (Marketwired) -- 05/15/14 -- FONAR Corporation (NASDAQ: FONR)

  • 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 (NASDAQ: FONR), The Inventor of MR Scanning™, reported its financial position for the period ended March 31, 2014. The Company's two industry segments are: development, manufacturing and servicing of the UPRIGHT® Multi-Position™ MRI and management of Stand-Up® MRI (UPRIGHT® MRI) centers. The Company is known as the first Company to invent and manufacture an MRI (Magnetic Resonance) scanner. Leading the list of FONAR's most recent patented inventions is its technology enabling full weight-bearing MRI imaging, in contrast to the conventional weightless recumbent MRI imaging. This enables, for the first time, full weight-bearing imaging of all 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 full weight-bearing UPRIGHT® position.

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.

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.



                    CONDENSED CONSOLIDATED BALANCE SHEETS
         (AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                 (UNAUDITED)

                                   ASSETS

                                                        March 31,  June 30,
                                                          2014      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,   June 30,
                                                          2014      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)

                                                      March 31,   June 30,
LIABILITIES AND STOCKHOLDERS' EQUITY                    2014       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:
Daniel Culver
Director of Communications
E-mail: Email Contact
www.fonar.com

The Inventor of MR Scanning™
An ISO 9001 Company
Melville, New York 11747
Phone: (631) 694-2929
Fax: (631) 390-1709

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
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...