FONAR Set to Join Russell 3000 Index
MELVILLE, NEW YORK, June 23, 2017 - FONAR Corporation
(NASDAQ-FONR), The Inventor
of MR Scanning™, reported today that it is set to join
the broad-market Russell 3000® Index at the conclusion of
the Russell indexes annual reconstitution, effective after the
US market opens on June 26, according to a preliminary list of
additions posted June 9 and today, June 23.
The annual Russell indexes reconstitution captures
the 4,000 largest US stocks as of the end of May, ranking them
by total market capitalization. Membership in the US all-cap Russell
3000® Index, which remains in place for one year, means automatic
inclusion in the large-cap Russell 1000® Index or small-cap
Russell 2000® Index as well as in appropriate growth and value
style indexes. FTSE (Financial Times and Stock Exchange) Russell
determines membership for its Russell indexes primarily by objective,
market-capitalization rankings and style attributes.
Raymond Damadian, founder and Chairman of FONAR
said, “I am proud of this remarkable milestone for our Company.
It is based on our Company’s share price and is an indication
that we have been delivering shareholder value. It is a result
of the successful strategy we have put in place in recent years
that has allowed the Company to be profitable for 28 consecutive
quarters.”
Timothy R. Damadian, President and CEO of FONAR
said, “FONAR’s inclusion in the Russell 3000 is important
because it gives institutions, mutual funds and the investing
community greater visibility of our Company. They’re all
looking for successful value stocks, and we’ve shown that
FONAR can deliver.”
Russell indexes are widely used by investment managers
and institutional investors for index funds and as benchmarks
for active investment strategies. Approximately $8.4 trillion
in assets are benchmarked against Russell’s US indexes.
Russell indexes are part of FTSE Russell, a leading global index
provider. For more information on the Russell 3000® Index
and the Russell indexes reconstitution, go to the “Russell
Reconstitution” section on the FTSE Russell website.
About FTSE Russell:
FTSE Russell is a leading global index provider
creating and managing a wide range of indexes, data and analytic
solutions to meet client needs across asset classes, style and
strategies. Covering 98% of the investable market, FTSE Russell
indexes offer a true picture of global markets, combined with
the specialist knowledge gained from developing local benchmarks
around the world.
FTSE Russell index expertise and products are used
extensively by institutional and retail investors globally. Approximately
$12.5 trillion is currently benchmarked to FTSE Russell indexes.
For over 30 years, leading asset owners, asset managers, ETF providers
and investment banks have chosen FTSE Russell indexes to benchmark
their investment performance and create investment funds, ETFs,
structured products and index-based derivatives. FTSE Russell
indexes also provide clients with tools for asset allocation,
investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell
index design and management: a transparent rules-based methodology
is informed by independent committees of leading market participants.
FTSE Russell is focused on index innovation and customer partnership
applying the highest industry standards and embracing the IOSCO
Principles. FTSE Russell is wholly owned by London Stock Exchange
Group.
For more information, visit www.ftserussell.com
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 signature product is the FONAR UPRIGHT® Multi-Position™ 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 detects patient problems that other MRI scanners cannot because they are lie-down and ”weightless” only scanners. The patient-friendly UPRIGHT® MRI has a near-zero patient claustrophobic rejection rate. 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 watching
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 by this latest works-in-progress
method for quantifying CSF flow in all the normal positions of
the body, particularly in its upright flow against gravity. Patients
with whiplash or other neck injuries are among those who will
benefit from this new understanding.
FONAR’s substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging of 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
|
| |
December 31,
2016
|
June 30,
2016
|
Cash and cash equivalents
|
$ 7,692 |
$ 8,528 |
Accounts receivable – net
|
4,325 |
4,370 |
Accounts receivable - related party
|
60 |
— |
|
|
10,824 |
10,127 |
Management and other fees receivable - net
|
17,420 |
15,638 |
Management and other fees receivable – related medical practices – net
|
4,464 |
4,064 |
|
|
2,735 |
2,074 |
Prepaid expenses and other current assets
|
926 |
759 |
Total Current Assets |
48,446 |
45,560 |
Deferred income tax asset
|
13,842 |
13,042 |
Property and equipment – net
|
14,914 |
14,513 |
|
|
3,322 |
3,322 |
Other intangible assets – net
|
7,202 |
7,719 |
|
|
560 |
732 |
Total Assets
|
$ 88,286
================ |
$ 84,888
================ |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| |
December 31,
2016
|
June 30,
2016 |
Current Liabilities:
|
|
|
Current portion of long-term debt and capital leases
|
$ 1,674 |
$ 2,448 |
Accounts payable
|
1,470 |
1,254 |
Other current liabilities
|
8,109 |
10,827 |
Unearned revenue on service contracts
|
4,752 |
4,679 |
Unearned revenue on service contracts – related party
|
55 |
— |
Customer advances
|
1,036 |
1,199 |
Billings in excess of costs and estimated earnings on uncompleted contracts
|
176 |
207 |
Total Current Liabilities
|
17,272 |
20,614 |
Long-Term Liabilities:
|
|
|
Deferred income tax liability
|
482 |
482 |
Due to related medical practices
|
228 |
245 |
Long-term debt and capital leases, less current portion |
411 |
2,059 |
Other liabilities
|
883 |
712 |
Total Long-Term Liabilities
|
2,004 |
3,498 |
Total Liabilities
|
19,276 |
24,112 |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY (Continued)
|
Stockholders' Equity:
|
December 31,
2016 |
June 30,
2016 *
|
|
|
|
Class A non-voting preferred stock $.0001 par value; 453 shares authorized at December 31, 2016 and June 30, 2016, 313 issued and outstanding at December 31, 2016 and June 30, 2016
|
$ — |
$ — |
Preferred stock $.001 par value; 567 shares authorized at December 31, 2016 and June 30, 2016, issued and outstanding – none
|
— |
— |
Common Stock $.0001 par value; 8,500 shares authorized at December 31, 2016 and June 30, 2016, 6,171 and 6,062 issued at December 31, 2016 and June 30, 2016; 6,159 and 6,051 outstanding at December 31, 2016 and June 30, 2016
|
1 |
1 |
Class B Common Stock (10 votes per share) $ .0001 par value; 227 shares authorized at December 31, 2016 and June 30, 2016, .146 issued and outstanding at December 31, 2016 and June 30, 2016
|
— |
— |
Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at December 31, 2016 and June 30, 2016, 383 issued and outstanding at December 31, 2016 and June 30, 2016
|
—
|
—
|
Paid-in capital in excess of par value
|
175,970 |
173,702 |
Accumulated deficit
|
(112,812) |
(120,624) |
Notes receivable from employee stockholders
|
(22) |
(24) |
Treasury stock, at cost - 12 shares of common stock at December 31, 2016 and June 30, 2016
|
(675)
|
(675)
|
Total Fonar Corporation Stockholder Equity |
62,464 |
52,380 |
Noncontrolling interests
|
6,546 |
8,396 |
Total Stockholders' Equity
|
69,010 |
60,776
|
Total Liabilities and Stockholders' Equity
|
$ 88,286
================
|
$ 84,888
================ |
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 |
2016 |
2015
|
|
|
$ 93 |
$ 742 |
Service and repair fees – net
|
2,356 |
2,280 |
Service and repair fees - related parties – net
|
28 |
28 |
Patient fee revenue, net of contractual allowances and discounts
|
8,657 |
7,786 |
Provision for bad debts for patient fee |
(4,002) |
(3,270) |
Management and other fees – net
|
9,364 |
8,958 |
Management and other fees - related medical practices – net
|
1,907 |
1,845 |
|
|
18,403 |
18,369 |
COSTS AND EXPENSES
|
|
|
Costs related to product sales |
(34) |
564 |
Costs related to service and repair fees
|
683 |
447 |
Costs related to service and repair fees - related parties
|
8 |
5 |
Costs related to patient fee revenue
|
2,323 |
2,238 |
Costs related to management and other fees
|
5,257 |
5,597 |
Costs related to management and other fees – related medical practices
|
1,127 |
1,012 |
|
|
361 |
412 |
Selling, general and administrative
|
4,069 |
3,869 |
|
|
13,794 |
14,144 |
|
|
4,609 |
4,225 |
Interest Expense
|
(77) |
(139) |
Investment Income |
49 |
58 |
Income Before Benefit/(Provision) for Income Taxes and Non Controlling Interests
|
4,581 |
4,144 |
Benefit/(Provision) for Income Taxes |
353 |
( 40) |
Net Income |
4,934 |
4,104 |
Net Income - Non Controlling Interests |
(692) |
(611) |
Net Income - Controlling Interests |
$ 4,242
=============== |
$ 3,493
=============== |
Net Income Available to Common Stockholders |
$ 3,971
=============== |
$ 3,266
=============== |
Net Income Available to Class A Non-Voting Preferred Stockholders
|
$ 202
=============== |
$ 169
================ |
Net Income Available to Class C Common Stockholders |
$ 69
=============== |
$ 58
================ |
Basic Net Income Per Common Share Available to Common Stockholders
|
$ 0.64
=============== |
$ 0.54
================ |
Diluted Net Income Per Common Share Available to Common Stockholders |
$ 0.63
=============== |
$ 0.53
================ |
Basic and Diluted Income Per Share – Class C Common
|
$ 0.18
=============== |
$ 0.15
================ |
Weighted Average Basis Shares Outstanding-Common Stockholders
|
6,158
=============== |
6,051
================ |
Weighted Average Diluted Shares Outstanding-Common Stockholders |
6,286
=============== |
6,179
================ |
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 SIX MONTHS ENDED DECEMBER 31,
|
| REVENUES |
2016
|
2015
|
|
|
$ 335 |
$ 760 |
Service and repair fees – net
|
4,708 |
4,564 |
Service and repair fees - related parties – net
|
55 |
55 |
Patient fee revenue, net of contractual allowances and discounts
|
17,481 |
15,901 |
Provision for bad debts for patient fee
|
(7,880) |
(6,778) |
Management and other fees – net
|
18,625 |
17,786 |
Management and other fees - related medical practices – net
|
3,814 |
3,691 |
|
|
37,138 |
35,979 |
COSTS AND EXPENSES
|
|
|
Costs related to product sales
|
179 |
676 |
Costs related to service and repair fees
|
1,339 |
990 |
Costs related to service and repair fees - related parties
|
16 |
12 |
Costs related to patient fee revenue
|
4,737 |
4,466 |
Costs related to management and other fees
|
10,518 |
11,015 |
Costs related to management and other fees – related medical practices
|
2,080 |
2,070 |
|
|
773 |
849 |
Selling, general and administrative
|
8,135 |
8,061 |
|
|
27,777 |
28,139 |
|
|
9,361 |
7,840 |
Interest Expense
|
(174) |
(289) |
Investment Income |
97 |
107 |
Other (Expense) Income
|
(3) |
1 |
Income Before Benefit/(Provision) for Income Taxes and Non Controlling Interests
|
9, 281 |
7,659 |
Benefit/(Provision) for Income Taxes
|
153 | ( 90) |
Net Income
|
9,434 |
7,569 |
Net Income - Non Controlling Interests
|
(1,622) |
(1,214) |
Net Income - Controlling Interests
|
$ 7,812
=============== |
$ 6,355
=============== |
Net Income Available to Common Stockholders
|
$ 7,313
=============== |
$ 5,942
=============== |
Net Income Available to Class A Non-Voting Preferred Stockholders
|
$ 372
=============== |
$ 308
================ |
Net Income Available to Class C Common Stockholders
|
$ 127
=============== |
$ 105
================ |
Basic Net Income Per Common Share Available to Common Stockholders
|
$ 1.19
=============== |
$ 0.98
================ |
Diluted Net Income Per Common Share Available to Common Stockholders
|
$ 1.17
=============== |
$ 0.96
================ |
Basic and Diluted Income Per Share – Class C Common
|
$ 0.33
=============== |
$ 0.27
================ |
Weighted Average Basis Shares Outstanding-Common Stockholders
|
6,131
=============== |
6,051
================ |
Weighted Average Diluted Shares Outstanding-Common Stockholders
|
6,259
=============== |
6,179
================ |
Weighted Average Basic Shares Outstanding – Class C Common
|
383
=============== |
383
================ |
Weighted Average Diluted Shares Outstanding – Class C Common
|
383
=============== |
383
================ |
FONAR™ Corporation
110 Marcus Drive
Melville, N.Y. 11747
Tel. 631-694-2929
Fax. 631-390-9540
Email sales@FONAR.com
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