FONAR Announces 3rd Quarter and Nine Months Financial Results for Fiscal 2016
/EINPresswire.com/ -- MELVILLE, NY -- (Marketwired) -- 05/10/16 -- FONAR Corporation (NASDAQ: FONR)
- Third Quarter Fiscal 2016 Net Revenues increased 9% to $18.6 million versus the same period a year earlier.
- Third Quarter Fiscal 2016 Diluted Net Income Per Common Share Available to Common Stockholders increased 45% to $0.45 per share versus the same period a year earlier.
- At March 31, 2016 Cash and Cash Equivalents increased 39% to $13.1 million from $9.4 million at June 30, 2015.
- Third Quarter Fiscal 2016 Income from Operations increased 54% to $4.1 million versus the same period a year earlier.
- Third Quarter Fiscal 2016 Net Income increased 54% to $3.9 million versus the same period a year earlier.
- Company appoints Timothy R. Damadian as President and CEO of FONAR.
- Company announces date of annual shareholder's meeting: June 13, 2016.
Fonar Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported its fiscal 2016 third quarter and nine-months results for the period ended March 31, 2016. FONAR, a leader in the MRI industry, is the first to manufacture an MRI (Magnetic Resonance Imaging) scanner. FONAR's substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging in all the gravity-sensitive regions of the human anatomy, especially the brain, extremities, and spine.
The Company's two industry segments: HMCA, which manages 25 FONAR-equipped centers (all but one are equipped with UPRIGHT® Multi-Position™ MRIs); and the development, manufacturing and servicing of the FONAR scanners. Its premier MRI product, the FONAR UPRIGHT® Multi-Position™ MRI scanner, is the world's only MRI scanner licensed under FONAR's multiple UPRIGHT® Multi-Position™ MRI patents to scan all the patient's body parts in their normal fully weight-bearing UPRIGHT® positions.
Statement of operation items
Net Revenues for the quarter ended March 31, 2016 increased 9% to $18.6 million as compared to $17.1 million for the corresponding quarter one year earlier.
Net Revenues for the nine-month period ended March 31, 2016 increased 5% to $54.6 million as compared to $52.2 million for the corresponding nine-month period one year earlier.
Net Income for the quarter ended March 31, 2016 increased 54% to $3.9 million as compared to $2.5 million for the corresponding quarter one year earlier.
Net Income for the nine-month period ended March 31, 2016 increased 24% to $11.5 million as compared to $9.2 million for the corresponding nine-month period one year earlier.
Income from Operations for the quarter ended March 31, 2016 increased 54% to $4.1 million as compared to $2.7 million for the corresponding quarter one year earlier.
Income from Operations for the nine-month period ended March 31, 2016 increased 23% to $11.9 million as compared to $9.7 million for the corresponding nine-month period one year earlier.
Diluted net income per common share available to common shareholders for the quarter ended March 31, 2016 increased 45% to $0.45 as compared to $0.31 for the corresponding quarter one year earlier.
Diluted net income per common share available to common shareholders for the nine-month period ended March 31, 2016 increased 30% to $1.42 as compared to $1.09 for the corresponding nine-month period one year earlier.
Balance sheet items
Cash and cash equivalents increased 39% to $13.1 million at March 31, 2016, from $9.4 million at June 30, 2015.
Total current assets at March 31, 2016 were $50.9 million, as compared to $43.6 million at June 30, 2015.
Total assets at March 31, 2016 were $82.0 million, as compared to $76.5 million at June 30, 2015.
Total current liabilities at March 31, 2016 were $18.6 million, as compared to $18.8 million at June 30, 2015.
Total liabilities at March 31, 2016 were $23.9 million, as compared to $25.7 million at June 30, 2015.
Total stockholder's equity at March 31, 2016 was $58.1 million, as compared to $50.8 million at June 30, 2015.
Significant Events
On February 8, 2016, The Company announced that Timothy R. Damadian was named President and Chief Executive Officer of Fonar Corporation.
Tim Damadian joined FONAR as a consultant in 2010, at which point FONAR embraced his vision and plan for improving the performance of FONAR's management subsidiary, HMCA. Over the next five years FONAR's revenue more than doubled (from $31.8 million for the year ending June 30, 2010 to $69.1 million for the year ending June 30, 2015) -- an achievement primarily attributable to the success of HMCA. Over the same period Net (Loss) Income per Common Share went from ($0.61) to $2.00. (For more details visit: www.fonar.com/news/020816.htm)
Raymond V. Damadian, the founder of Fonar Corporation continues his role as Chairman of the Board. Dr. Damadian founded FONAR in 1978 after making the key discovery that ushered in the MRI industry. Since then, the Company made many of the inventions used today on MRI scanners as well as manufacturing approximately 400 MRI scanners.
The Company will hold its annual meeting on June 13, 2016. Dr. Damadian has issued his annual shareholder letter which can be seen on the Company's Web site at www.fonar.com/shareholder-letter.htm.
Management Discussion
Timothy R. Damadian, president and CEO of Fonar Corporation, said, "I am humbled by my appointment as president and CEO, and I look forward to serving the Company and its shareholders to the best of my ability.
"The financial results of this quarter are very good. Year-over-year comparisons show a 54% increase in Net Income. Also, our revenues and Net Income from our MRI management subsidiary, HMCA, show consistent, gradual growth."
Mr. Damadian continued, "Although many MRI centers across the country are having a very difficult time dealing with ever-declining reimbursement rates, our centers have endured, even thrived, by increasing scan volume, which is largely attributable to the enormous appeal of the FONAR STAND-UP® MRI.
"Our goal for the future is to continue to increase profitability while maintaining a strong cash position. This can be achieved not only by improving profitability at existing centers but also by establishing new sites and through strategic acquisitions."
Raymond V. Damadian, M.D., Chairman of Fonar Corporation, said, "I am very pleased with the seamless transition that has occurred for Timothy as he assumed the office of president and CEO. I am confident that he will guide FONAR to a sustained profitable future.
"A wonderful advantage of Timothy assuming primary management duties is my being able to focus on research into the important area of neck injury and its impact on brain health. The UPRIGHT® Multi-Position MRI is a marvelous scanner that is able to see the neck in its weight-bearing position. We often see patients' neck problems missed by the recumbent-only MRI scanners. In addition, we have developed new technology for viewing the flow of cerebral spinal fluid (CSF) as it circulates in and around the brain. We are able to see CSF leakage and CSF pooling, and can often trace these problems to neck injuries. We can do all of this on our UPRIGHT® Multi-Position™ MRI (aka STAND-UP® MRI)."
About FONAR
FONAR, The Inventor of MR Scanning™, is located in Melville, NY, 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. FONAR's stellar product is the FONAR 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 has new works-in-progress technology for visualizing and quantifying the flow of cerebrospinal fluid (CSF) which circulates throughout the brain and vertebral column at the rate of 32 quarts per day. This imaging and quantifying of the dynamics of this vital life-sustaining physiology of the body's neurologic system has been made possible first by FONAR's introduction of the MRI and now due to this latest works-in-progress for quantifying CSF in all the normal positions of the body, particularly in its upright flow against gravity. The type of patient that will benefit from this technology includes those with various types of dementia such as former NFL quarterback Jim McMahon.
FONAR's substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging on all the gravity sensitive regions of the human anatomy, especially the brain, extremities and spine. FONAR's UPRIGHT® Multi-Position™ MRI is the only scanner licensed under these patents.
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
March 31, June 30,
2016 2015 *
--------- ---------
Cash and cash equivalents $ 13,147 $ 9,449
Accounts receivable - net 4,326 3,791
Accounts receivable - related party 30 -
Medical receivable - net 10,097 9,082
Management and other fees receivable - net 15,901 14,058
Management and other fees receivable - related medical
practices - net 4,059 3,507
Costs and estimated earnings in excess of billing on
uncompleted contracts 279 682
Inventories 2,234 2,192
Prepaid expenses and other current assets 834 860
--------- ---------
Total Current Assets 50,907 43,621
--------- ---------
Deferred income tax asset 8,423 8,423
Property and equipment - net 11,877 12,901
Goodwill 1,767 1,767
Other intangible assets - net 8,066 8,950
Other assets 972 830
--------- ---------
Total Assets $ 82,012 $ 76,492
========= =========
*Condensed from audited financial statements.
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, June 30,
2016 2015 *
--------- ---------
Current Liabilities:
Current portion of long-term debt and capital leases $ 2,455 $ 2,490
Accounts payable 1,345 1,783
Other current liabilities 8,638 8,253
Unearned revenue on service contracts 4,350 4,187
Unearned revenue on service contracts - related party 28 -
Customer advances 1,511 1,938
Billings in excess of costs and estimated earnings on
uncompleted contracts 255 142
--------- ---------
Total Current Liabilities 18,582 18,793
Long-Term Liabilities:
Deferred income tax liability 510 510
Due to related medical practices 237 237
Long-term debt and capital leases, less current
portion 3,863 5,699
Other liabilities 718 469
--------- ---------
Total Long-Term Liabilities 5,328 6,915
--------- ---------
Total Liabilities 23,910 25,708
--------- ---------
*Condensed from audited financial statements.
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)
March 31, June 30,
2016 2015 *
STOCKHOLDERS' EQUITY:
--------- ---------
Class A non-voting preferred stock $.0001 par value;
453 shares authorized at March 31, 2016 and June 30,
2015, 313 issued and outstanding at March 31, 2016
and June 30, 2015 $ - $ -
Preferred stock $.001 par value; 567 shares authorized
at March 31, 2016 and June 30, 2015, issued and
outstanding - none - -
Common Stock $.0001 par value; 8,500 shares authorized
at March 31, 2016 and June 30, 2015, 6,062 issued at
March 31, 2016 and June 30, 2015; 6,051 outstanding
at March 31, 2016 and June 30, 2015 1 1
Class B Common Stock (10 votes per share) $ .0001 par
value; 227 shares authorized at March 31, 2016 and
June 30, 2015, .146 issued and outstanding at March
31, 2016 and June 30, 2015 - -
Class C Common Stock (25 votes per share) $.0001 par
value; 567 shares authorized at March 31, 2016 and
June 30, 2015, 383 issued and outstanding at March
31, 2016 and June 30, 2015 - -
Paid-in capital in excess of par value 175,448 175,448
Accumulated deficit (126,989) (136,349)
Notes receivable from employee stockholders (26) (32)
Treasury stock, at cost - 12 shares of common stock at
March 31, 2016 and June 30, 2015 (675) (675)
--------- ---------
Total Fonar Corporation Stockholder Equity 47,759 38,393
Noncontrolling interests 10,343 12,391
--------- ---------
Total Stockholders' Equity 58,102 50,784
--------- ---------
Total Liabilities and Stockholders' Equity $ 82,012 $ 76,492
========= =========
*Condensed from audited financial statements.
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
FOR THE THREE MONTHS
ENDED MARCH 31
--------------------
REVENUES 2016 2015
--------- ---------
Product sales - net $ 20 $ 160
Service and repair fees - net 2,406 2,299
Service and repair fees - related parties - net 27 27
Patient fee revenue, net of contractual allowances
and discounts 8,695 7,284
Provision for bad debts for patient fee (3,830) (3,201)
Management and other fees - net 9,394 8,653
Management and other fees - related medical
practices - net 1,907 1,874
--------- ---------
Total Revenues - Net 18,619 17,096
--------- ---------
COSTS AND EXPENSES
Costs related to product sales 263 352
Costs related to service and repair fees 552 630
Costs related to service and repair fees - related
parties 6 7
Costs related to patient fee revenue 2,549 2,044
Costs related to management and other fees 5,649 5,285
Costs related to management and other fees - related
medical practices 1,045 1,284
Research and development 395 360
Selling, general and administrative 4,533 3,706
Provision for bad debts (470) 762
--------- ---------
Total Costs and Expenses 14,522 14,430
--------- ---------
Income From Operations 4,097 2,666
Interest Expense (127) (169)
Investment Income 56 52
--------- ---------
Income Before Provision for Income Taxes and
Noncontrolling Interests 4,026 2,549
Provision for Income Taxes 145 30
--------- ---------
Net Income 3,881 2,519
Net Income - Noncontrolling Interests (876) (500)
--------- ---------
Net Income - Controlling Interests $ 3,005 $ 2,019
========= =========
Net Income Available to Common Stockholders $ 2,810 $ 1,888
========= =========
Net Income Available to Class A Non-Voting Preferred
Stockholders $ 145 $ 98
========= =========
Net Income Available to Class C Common Stockholders $ 50 $ 33
========= =========
Basic Net Income Per Common Share Available to Common
Stockholders $ 0.46 $ 0.31
========= =========
Diluted Net Income Per Common Share Available to
Common Stockholders $ 0.45 $ 0.31
========= =========
Basic and Diluted Income Per Share-Class C Common $ 0.13 $ 0.09
========= =========
Weighted Average Basic Shares Outstanding-Common
Stockholders 6,050 6,050
========= =========
Weighted Average Diluted Shares Outstanding - Common
Stockholders 6,178 6,178
========= =========
Weighted Average Basic Shares Outstanding - Class C
Common 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 NINE MONTHS
ENDED MARCH 31,
--------------------
REVENUES 2016 2015
--------- ---------
Product sales - net $ 780 $ 1,806
Service and repair fees - net 6,970 7,288
Service and repair fees - related parties - net 83 83
Patient fee revenue, net of contractual allowances
and discounts 24,596 20,700
Provision for bad debts for patient fee (10,608) (9,244)
Management and other fees - net 27,180 26,004
Management and other fees - related medical
practices - net 5,598 5,536
--------- ---------
Total Revenues - Net 54,599 52,173
--------- ---------
COSTS AND EXPENSES
Costs related to product sales 939 1,674
Costs related to service and repair fees 1,542 1,611
Costs related to service and repair fees - related
parties 18 18
Costs related to patient fee revenue 7,015 5,845
Costs related to management and other fees 16,664 15,665
Costs related to management and other fees - related
medical practices 3,116 3,893
Research and development 1,243 1,116
Selling, general and administrative 12,425 11,108
Provision for bad debts (300) 1,540
--------- ---------
Total Costs and Expenses 42,662 42,470
--------- ---------
Income From Operations 11,937 9,703
Interest Expense (416) (545)
Investment Income 164 173
Other Income (Expense) 1 (2)
--------- ---------
Income Before Provision for Income Taxes and
Noncontrolling Interests 11,686 9,329
Provision for Income Taxes 235 99
--------- ---------
Net Income 11,451 9,230
Net Income - Noncontrolling Interests (2,091) (2,018)
--------- ---------
Net Income - Controlling Interests $ 9,360 $ 7,212
========= =========
Net Income Available to Common Stockholders $ 8,752 $ 6,743
========= =========
Net Income Available to Class A Non-voting Preferred
Stockholders $ 453 $ 350
========= =========
Net Income Available to Class C Common Stockholders $ 155 $ 119
========= =========
Basic Net Income Per Common Share Available to Common
Stockholders $ 1.45 $ 1.11
========= =========
Diluted Net Income Per Common Share Available to
Common Stockholders $ 1.42 $ 1.09
========= =========
Basic and Diluted Income Per Share-Class C Common $ 0.40 $ 0.31
========= =========
Weighted Average Basic Shares Outstanding - Common
Stockholders 6,050 6,050
========= =========
Weighted Average Diluted Shares Outstanding - Common
Stockholders 6,178 6,178
========= =========
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
Melville, New York 11747
Phone: (631) 694-2929
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
