NEW YORK, NY--(Marketwire - March 29, 2010) -
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Gains on sales of securities and dividend income were $12,626,401 or 31.8% of average invested capital for the year ended December 31, 2009 and $19,759,682 or 49.0% for the year ended December 31, 2008. The invested capital at December 31, 2009, 2008 and 2007 was $28,630,149, $50,709,601 and $29,987,157 respectively.
The Company paid total dividends of $5,739,299 or $1.35 per share in 2009 and $6,452,502 or $1.50 per share in 2008. The Company anticipates declaring a dividend within the next 60 days. The goal of Company Management is to pay a minimum total yearly dividend of $1.00 per share as long as funds are available.
At December 31, 2009, the Company had total assets of $75,186,990 and stockholders' equity of $47,625,337 versus total assets of $76,824,181 and $43,460,641 of stockholders' equity at December 31, 2008. The Return on Stockholders' Equity decreased to 12.8% in 2009 from 30.8% in 2008 due to a decrease in net income from $15,123,269 in 2008 to $5,822,758 in 2009. A major reason for the increase in stockholders' equity is the improvement in net unrealized gain on the Company's available for sale securities to $24,640,577 at December 31, 2009 versus $17,629,542 at December 31, 2008.
Operating revenues decreased by 4.1% in 2009 to $1,688,826 from $1,761,055 in 2008. A significant reduction in Medicare reimbursement for radiopharmaceutical manufacturers such as Daxor negatively impacted the sale of Blood Volume Analyzers. The Company engages in clinical trial agreements to allow customers to begin utilization of the instrument and to become familiar with the clinical benefits of a measured blood volume prior to the purchase of the instrument. Revenue from kit sales increased by 13.2% in 2009 versus 2008 which can be attributed to an increase in utilization of existing instruments along with 56 instruments being in service at December 31, 2009 versus 53 at December 31, 2008.
For the year ended December 31, 2009 consolidated operating expenses decreased by 2.5% to $6,093,148 from $6,250,929 in 2008. The decrease in expenses is mostly due to a reduction in payroll and related expenses. However, expenses for research and development increased by 15.9% in 2009 to $2,825,151 from $2,438,423 in 2008. Management remains strongly committed to the Company's ongoing research, development and marketing efforts.
For more detailed information on our financial results, please refer to our Annual Report on Form 10-K for the year ended December 31, 2009 which will be filed later today.
The Blood Volume Analyzer produced and marketed by Daxor Corporation provides key information that can be used to diagnose and treat various medical conditions including congestive heart failure, hypertension, anemia due to blood loss, trauma, and conditions involving shock (collapse of blood pressure). At the present time, physicians must treat these conditions by guessing whether or not they are due to volume expansions or contractions. The Blood Volume Analyzer allows precise quantitation of patients' total blood volume and red blood cell volume, which takes the guesswork out of this process. Appropriate therapies can then be employed to correct excesses or deficits in volume, leading to better outcomes for patients.
Fifteen published peer-reviewed research studies sponsored by Daxor Corporation, as well as several studies presented at major medical conferences in 2009, document that improved analysis of blood volume status may save lives and result in better outcomes for patients. Past published studies from the Columbia University Medical School have provided evidence for developing the guidelines used to treat congestive heart failure patients so that they achieve a normal blood volume, which results in a marked improvement in the mortality rate.
This study showed that at the end of one year, heart failure patients with normal blood volumes were all alive, whereas 39% of patients with expanded volume had died; at the end of two years, when the study was completed, all of the normovolemic patients were still alive, while 55% of the patients with expanded volumes had died. The same study also documented that experienced physicians were correct only 51% of the time in estimating patients' blood volume status.
Daxor anticipates publication of a major outcomes study in which the Blood Volume Analyzer was used to diagnose and treat trauma patients at the University of Hawaii, The Queen's Medical Center in the near future.
Finally, Daxor anticipates that recently proposed changes to Medicare guidelines may help to drive increased utilization of the BVA-100: Medicare reimburses hospitals on the basis of diagnostic related guidelines (DRGs). Under the current system, when a patient is admitted for heart failure, the hospital is paid the same amount of money whether the patient is hospitalized for 2 days or for 10 days. Not surprisingly, the hospital's physicians are under great pressure to discharge the patient as quickly as possible. This has produced a situation in which 20% of heart failure patients are readmitted within 30 days or less.
Medicare is proposing to change their policy so hospitals will not be reimbursed if the patient is readmitted within 30 days for the same diagnosis of heart failure. This is intended to discourage hospitals from prematurely discharging patients and then receiving double payment when the patient is readmitted for the same, incompletely treated, condition. The use of the Blood Volume Analyzer can help physicians to accurately diagnose and treat heart failure patients which has the potential to improve patient outcomes so they will be less likely to be readmitted to the hospital within 30 days. This could save hospitals significant amounts of money, which would provide them with a substantial return on their investment in the BVA-100.
YEAR ENDED
Selected Financial Data: December 31, 2009 December 31, 2008
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Total Operating Revenues $ 1,688,826 $ 1,761,055
Total Operating Expenses $ 6,798,014 $ 6,968,207
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Net Loss from Operations $ (5,109,188) $ (5,207,152)
Total Other Income $ 12,261,060 $ 24,888,385
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Net Income Before
Income Taxes $ 7,151,872 $ 19,681,233
Income Tax Expense $ 1,329,114 $ 4,557,964
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Net Income $ 5,822,758 $ 15,123,269
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Weighted Average Number
of Shares Outstanding-Basic 4,262,643 4,350,951
Earnings per Share-Basic $ 1.37 $ 3.48
Weighted Average Number
of Shares Outstanding-Diluted 4,284,643 4,375,623
Earnings per Share-Diluted $ 1.36 $ 3.46
Dividends per Share $ 1.35 $ 1.50
Contact Information: Daxor Corporation Stephen Feldschuh, 212-330-8515 (Chief Operating Officer) stephen@daxor.com or David Frankel, 212-330-8504 (Chief Financial Officer) dfrankel@daxor.com
