MELVILLE, NY--(Marketwired - November 09, 2015) - FONAR Corporation (NASDAQ: FONR)
- Diluted Net Income per Common Shares Available to Common Stockholders increased 13% to $0.43 per share for 1st Quarter Fiscal 2016 versus same quarter one year earlier.
- Net Income Available to Common Stockholders increased 13% to $2.7 million for 1st Quarter Fiscal 2016 versus same quarter one year earlier.
- Net Income increased 6% to $3.5 million for 1st Quarter Fiscal 2016 versus same quarter one year earlier.
- Income from Operations for 1st Quarter Fiscal 2016 increased 5% to $3.6 million versus same quarter one year earlier.
- Total Revenues for 1st Quarter Fiscal 2016 decreased 2% to $17.6 million versus the same quarter one year earlier.
FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported its first quarter fiscal 2016 results for the quarter ended September 30, 2015. FONAR is the first Company in the MRI industry to manufacture an MRI (Magnetic Resonance Imaging) scanner. 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. FONAR's substantial list of patents include 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.
These include FONAR's newest 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. Imaging and quantifying the dynamics of this vital life-sustaining physiology of the body's neurologic system has been made possible by FONAR's introduction of the MRI and its latest works-in-progress for quantifying CSF in all the normal positions of the body, particularly in its upright flow against gravity.
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.
Financial Highlights
Total Revenues - Net for the quarter ended September 30, 2015 were $17.6 million as compared to $18.0 million for the corresponding quarter ended September 30, 2014.
Net Income for the quarter ended September 30, 2015 increased 6% to $3.5 million as compared to $3.3 million for the corresponding quarter ended September 30, 2014.
Income from Operations for the quarter ended September 30, 2015 increased 5% to $3.6 million as compared to $3.4 million for the corresponding quarter ended September 30, 2014.
Basic Net Income per Common Share Available to Common Shareholders for the quarter ended September 30, 2015 increased 13% to $0.44 as compared to $0.39 for the corresponding quarter ended September 30, 2014.
Diluted Net Income per Common Share Available to Common Shareholders for the quarter ended September 30, 2015 increased 13% to $0.43 as compared to $0.38 for the corresponding quarter ended September 30, 2014.
Total Assets at September 30, 2015 were $79.0 million, as compared to $76.5 million at June 30, 2015.
Total Current Assets at September 30, 2015 were $46.9 million, as compared to $43.6 million at June 30, 2015.
Total Cash and Cash Equivalents at September 30, 2015 increased 16% to $11.0 million, as compared to $9.4 million at June 30, 2015.
Total Liabilities at September 30, 2015 were $26.0 million, as compared to $25.7 million at June 30, 2015.
Total Current Liabilities at September 30, 2015 were $19.7 million, as compared to $18.8 million at June 30, 2015.
Significant Events
Earlier this year, a medical monograph was published by S. Karger, AG based in Basel, Switzerland (see www.karger.com/Book/Home/261956). It is titled "The Craniocervical Syndrome and MRI," and highlights the FONAR UPRIGHT® Multi-Position MRI. It also highlights the recently discovered syndrome that shows how neck injury can interfere with cerebrospinal fluid (CSF) flow in the brain, causing a variety of brain diseases. For more details and a press release visit www.fonar.com/news/050515.htm
Management Discussion
Raymond V. Damadian, president and chairman of FONAR Corporation said, "The Company continues to focus on ways to increase revenue and net income. We are still concerned about potential cuts in MRI reimbursement rates, however we will continue to explore all opportunities to expand our capacity. Various new applications of FONAR's UPRIGHT® MRI technology can deliver additional positive results to patients, referring doctors and our shareholders."
"In any case," said Dr. Damadian, "the success for our managed Stand-Up MRI centers is because physicians have come to understand that they will obtain 'BETTER PATIENT OUTCOMES' from the treatment of patients if they obtain their images, (particularly the spine) with their patients in their usual upright fully weight-loaded symptom generating positions. They understand that they run the risk of failure to visualize structural abnormalities in the spines of their patients that could result in poor outcomes from their treatment. Obtaining their patients' images in the fully weight-loaded multiple positions provided by FONAR's UPRIGHT® Multi-Position™ MRI can significantly reduce the prospect of poor outcomes."
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. 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 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
September 30, June 30,
2015 2015 *
------------- -------------
Current Assets:
Cash and cash equivalents $ 10,973 $ 9,449
Accounts receivable - net 4,591 3,791
Accounts receivable - related party 90 -
Medical receivable - net 9,442 9,082
Management and other fees receivable - net 14,484 14,058
Management and other fees receivable - related
medical practices - net 3,600 3,507
Costs and estimated earnings in excess of
billings on uncompleted contracts 682 682
Inventories 2,296 2,192
Prepaid expenses and other current assets 775 860
------------- -------------
Total Current Assets 46,933 43,621
------------- -------------
Deferred income tax asset 8,423 8,423
Property and equipment - net 12,439 12,901
Goodwill 1,767 1,767
Other intangible assets - net 8,647 8,950
Other assets 818 830
------------- -------------
Total Assets $ 79,027 $ 76,492
============= =============
*Condensed from audited financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(Unaudited)
Liabilities and Stockholders' Equity
September 30, June 30,
2015 2015 *
------------- -------------
Current Liabilities:
Current portion of long-term debt and capital
leases $ 2,478 $ 2,490
Accounts payable 1,595 1,783
Other current liabilities 8,764 8,253
Unearned revenue on service contracts 4,714 4,187
Unearned revenue on service contracts - related
party 83 -
Customer deposits 1,939 1,938
Billings in excess of costs and estimated
earnings on uncompleted contracts 142 142
------------- -------------
Total Current Liabilities 19,715 18,793
------------- -------------
Long-Term Liabilities:
Deferred income tax liability 510 510
Due to related medical practices 233 237
Long-term debt and capital leases, less current
portion 5,088 5,699
Other liabilities 485 469
------------- -------------
Total Long-Term Liabilities 6,316 6,915
------------- -------------
Total Liabilities 26,031 25,708
------------- -------------
*Condensed from audited financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(Unaudited)
Liabilities and Stockholders' Equity (Continued)
September 30, June 30,
STOCKHOLDERS' EQUITY: 2015 2015 *
------------- -------------
Class A non-voting preferred stock $.0001 par
value; 453 shares authorized at September 30,
2015 and June 30, 2015, 313 issued and
outstanding at September 30, 2015 and June
30, 2015 $ - $ -
Preferred stock $.001 par value; 567 shares
authorized at September 30, 2015 and June 30,
2015, issued and outstanding - none - -
Common Stock $.0001 par value; 8,500 shares
authorized at September 30, 2015 and June 30,
2015, 6,062 issued at September 30, 2015 and
June 30, 2015; 6,051 outstanding at September
30, 2015 and June 30, 2015 1 1
Class B Common Stock (10 votes per share)
$.0001 par value; 227 shares authorized at
September 30, 2015 and June 30, 2015; .146
issued and outstanding at September 30, 2015
and June 30, 2015 - -
Class C Common Stock (25 votes per share)
$.0001 par value; 567 shares authorized at
September 30, 2015 and June 30, 2015, 383
issued and outstanding at September 30, 2015
and June 30, 2015 - -
Paid-in capital in excess of par value 175,448 175,448
Accumulated deficit (133,487) (136,349)
Notes receivable from employee stockholders (30) (32)
Treasury stock, at cost - 12 shares of common
stock at September 30, 2015 and June 30, 2015 (675) (675)
------------- -------------
Total Fonar Corporation's Stockholders' Equity 41,257 38,393
Noncontrolling interests 11,739 12,391
------------- -------------
Total Stockholders' Equity 52,996 50,784
------------- -------------
Total Liabilities and Stockholders' Equity $ 79,027 $ 76,492
============= =============
*Condensed from audited financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts and shares in thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED
SEPTEMBER 30,
REVENUES 2015 2014
--------- ---------
Product sales - net $ 18 $ 1,271
Service and repair fees - net 2,284 2,491
Service and repair fees - related parties - net 28 28
Patient fee revenue, net of contractual allowances
and discounts 8,114 6,787
Provision for bad debts for patient fee (3,507) (3,146)
Management and other fees - net 8,829 8,738
Management and other fees - related medical
practices - net 1,845 1,816
--------- ---------
Total Revenues - Net 17,611 17,985
--------- ---------
COSTS AND EXPENSES
Costs related to product sales 112 1,085
Costs related to service and repair fees 543 507
Costs related to service and repair fees - related
parties 7 6
Costs related to patient fee revenue 2,228 1,899
Costs related to management and other fees 5,419 5,590
Costs related to management and other fees - related
medical practices 1,058 979
Research and development 436 397
Selling, general and administrative 3,775 3,578
Provision for bad debts 418 506
--------- ---------
Total Costs and Expenses 13,996 14,547
--------- ---------
Income From Operations 3,615 3,438
Interest Expense (150) (204)
Investment Income 50 62
--------- ---------
Income Before Provision for Income Taxes and
Noncontrolling Interests 3,515 3,296
Provision for Income Taxes 50 40
--------- ---------
Net Income 3,465 3,256
--------- ---------
Net Income - Noncontrolling Interests (603) (721)
--------- ---------
Net Income - Controlling Interests $ 2,862 $ 2,535
========= =========
Net Income Available to Common Stockholders $ 2,676 $ 2,370
========= =========
Net Income Available to Class A Non-Voting Preferred
Stockholders $ 139 $ 123
========= =========
Net Income Available to Class C Common Stockholders $ 47 $ 42
========= =========
Basic Net Income Per Common Share Available to
Common Stockholders $ 0.44 $ 0.39
========= =========
Diluted Net Income Per Common Share Available to
Common Stockholders $ 0.43 $ 0.38
========= =========
Basic and Diluted Income Per Share - Class C Common $ 0.12 $ 0.11
========= =========
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
The Inventor of MR Scanning™
An ISO 9001 Company
Melville, New York 11747
Phone: (631) 694-2929
Fax: (631) 390-1709
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