Fonar Header
 
Fonar Press Releases

For Immediate Release

The Inventor of MR Scanning™

An ISO 9001 Company

Contact: Daniel Culver

110 Marcus Drive

Director of Communications

Melville, NY 11747-4292

Web site: www.fonar.com

Phone: (631) 694-2929

Email: investor @ fonar. com

Fax: (631) 390-1709

FONAR Announces Fiscal 2017 Year-End Earnings

  • 23% Increase of Fiscal 2017 Diluted Net Income per Common Share available to Common Shareholders to $2.92, versus prior year

  • 26% Increase of Fiscal 2017 Net Income to $23.7 million, versus prior year

  • 33% Increase of Fiscal 2017 Income from Operations to $19.1 million, versus prior year

  • 6% Increase of Fiscal 2017 Net Revenues to $78.0 million, versus prior year

  • Diluted Net Income per Common Share available to Common Shareholders for the Fiscal year ending June 30, 2017 was $2.92, including a $5.0 million impact of recorded income tax benefits

MELVILLE, NEW YORK, September 14, 2017 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™, reported today its fiscal 2017 results as of June 30, 2017. Known throughout the world for its contributions to the MRI industry, FONAR’s primary source of income is derived from its subsidiary’s (Health Management Company of American) management of 26 diagnostic imaging centers, 24 of which feature the FONAR UPRIGHT® Multi-Position™ MRI, aka Stand-Up® MRI

Basic net income per common share available to common shareholders increased 23% to $2.98 for the fiscal year ended June 30, 2017 as compared to $2.43 for the fiscal year ended June 30, 2016.

Diluted net income per common share available to common shareholders increased 23% to $2.92 for the fiscal year ended June 30, 2017 as compared to $2.38 for the fiscal year ended June 30, 2016.

Net income increased 26% to $23.7 million for the fiscal year ended June 30, 2017, as compared to $18.8 million for the fiscal year ended June 30, 2016.

Income from operations increased 33% to $19.1 million for the fiscal year ended June 30, 2017, as compared to $14.4 million for the fiscal year ended June 30, 2016.

Net revenues increased 6% to $78.0 million for the fiscal year ended June 30, 2017, as compared to $73.4 million for the fiscal year ended June 30, 2016.

Total Costs and Expenses for the fiscal year ending June 30, 2017, remained basically flat at $58.9 million as compared to $59.0 million for the fiscal year ended June 30, 2016.

For the year ended June 30, 2017, the revenues from the management of the diagnostic imaging center segment, consisting of patient and management and other fee revenue, and less the provision for bad debt for patient revenue, increased 7% to $66.8 million as compared to $62.6 million one year earlier.

At June 30, 2017, total assets increased 16% to $98.8 million, as compared to $84.9 million for the fiscal year ended June 30, 2016.

At June 30, 2017, total cash and cash equivalents increased 19% to $10.1 million, as compared to $8.5 million for the fiscal year ended June 30, 2016.

At June 30, 2017, total liabilities decreased 34% to $15.9 million, as compared to $24.1 million for the fiscal year ended June 30, 2016.

At June 30, 2017, total current liabilities decreased 31% to $14.2 million, as compared to $20.6 million for the fiscal year ended June 30, 2016.

Significant Events

On July 3, 2017, FONAR acknowledged the 40th anniversary of the world’s first whole-body MRI scan, thereby birthing the MRI industry. This remarkable achievement was accomplished by FONAR founder Raymond Damadian, M.D., with the assistance of graduate-students Larry Minkoff and Michael Goldsmith.

Effective June 26, 2017, FONAR stock joined the Russell 3000® Index, which has increased the Company’s membership in related index funds and ETFs (Exchange Traded Funds) to over 60, thereby giving mutual funds, institutions, and the investing community greater visibility of FONAR and helping to build shareholder value.

On March 20, 2017, Dr. Damadian was the keynote speaker at 22nd Annual Medical Technologies: A Frost & Sullivan Executive MindXchange in San Diego, CA, where he received special recognition as “the legendary inventor of the first MRI (Magnetic Resonance Imaging) machine and the innovative mind responsible for saving thousands of lives.”

On July 12, 2016 the Company’s subsidiary, Health Management Company of America (HMCA), reported three acquisitions. HMCA had purchased: 100% of the equity in Turnkey Services of New York, LLC; 100% of the equity in TK2 Equipment Management, LLC; and the remaining 50% of Diagnostic Management Services, LLC, Yonkers, NY, making it a wholly-owned subsidiary of HMCA.

On June 20, 2017, HMCA reported they had purchased a 100% interest in the FONAR MRI equipment lease related to Stand-Up MRI of Great Neck, an event that will add to FONAR’s net income and cash flow.

Management Discussion

President and CEO Timothy R. Damadian said, “We’re pleased with our six percent (6%) growth rate in net revenue. The Company made several acquisitions in Fiscal 2017 that have added to our profitability, and we remain committed to controlling costs, which is vital in the healthcare industry where insurer reimbursement rates continue to fall year after year.

“Thankfully, the appeal of the UPRIGHT® MRI (also known as the Stand-Up® MRI) among both patients and physicians, together with my experienced and competent management team, has enabled us to thrive in a very challenging business environment.

“We will continue to seek additional opportunities consistent with our growth strategy and are committed to maintaining the Company’s very positive earnings trajectory into fiscal 2018.”

Chairman of the Board Raymond V. Damadian, M.D., added, “In Fiscal 2017, we posted a profit of $2.92 per share (Diluted Net Income per Common Share available to Common Shareholders). Our net profit margin [(Net Income / Total Revenues)] was 10% in Fiscal 2011, 26% in Fiscal 2016, and 30% for Fiscal 2017. As far as our business plan is concerned, I think that says it all.

“Regarding the Company’s ongoing research, we continue to explore the impact of our new works-in-progress technology for visualizing and quantifying the flow of cerebrospinal fluid (CSF) circulating throughout the brain and vertebral column with the patient scanned in the Upright position.

“Based on a discovery FONAR had announced on November 2, 2011, the Company was recently issued a patent for the use of the FONAR UPRIGHT® Multi-Position™ MRI to diagnose patients with Multiple Sclerosis. We are hopeful that this research will help to lead to a new understanding of the role of CSF on diseases of the brain.”

Dr. Damadian concluded, “It has been 46 years since we made the discovery that birthed the MRI industry.* We’ve had the privilege and joy of witnessing its marvelous growth from infancy. Today there are approximately 60 million MRI scans performed each year worldwide in what has become a multi-billion-dollar industry. After all these years, FONAR is finally reaping the rewards, and we’re certainly very thankful for it.”

*In 1971, Dr. Damadian’s paper in Science contained the two key discoveries that remain fundamental to the operation of every MRI scanner ever made: 1) his discovery that the relaxation times of cancerous tissues are markedly prolonged relative to those of healthy tissues and 2) his discovery there are also marked differences in relaxation times across the full spectrum of healthy tissue types.

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 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.

#

CONSOLIDATED BALANCE SHEETS

ASSETS

 
June 30,
 
2017
2016
Current Assets:
Cash and cash equivalents      
$10,139,621
$8,528,309
Accounts receivable – net of allowances for doubtful accounts of $190,244 and $284,279 at June 30, 2017 and 2016, respectivelyt
4,321,760
4,370,155
Medical receivables –net of allowances for doubtful accounts of $19,853,318 and $17,451,782 at June 30, 2017 and 2016, respectively
11,744,704
10,126,397
Management and other fees receivable – net of allowances for doubtful accounts of $12,859,750 and $13,553,005 at June 30, 2017 and 2016, respectively
18,593,894
15,637,831
Management and other fees receivable – related party medical practices – net of allowances for doubtful accounts of $582,001 and $392,505 at June 30, 2017 and 2016, respectively
4,959,598
4,063,539
Costs and estimated earnings in excess of billings on uncompleted contracts
736,061
Inventories
1,624,262
2,074,300
Prepaid expenses and other current assets
1,293,806
759,042
Total Current Assets

53,413,706

45,559,573

Deferred income tax asset
17,861,777
13,042,360
Property and Equipment – Net
16,462,504
14,512,706
Goodwill
3,927,123
3,322,158
Other Intangible Assets – Net
6,644,504
7,719,358
Other Assets
452,952
731,451
Total Assets
$98,762,566
================
$84,887,606
================

 

CONSOLIDATED BALANCE SHEETS

LIABILITIES

 
June 30,
 
2017
2016
Current Liabilities:
   
Current portion of long-term debt and capital leases
$180,090
$2,447,693
Accounts payable
1,423,217
1,254,485
Other current liabilities
7,203,278
10,826,793
Unearned revenue on service contracts
4,641,534
4,678,914
Customer deposits
787,884
1,198,739
Billings in excess of costs and estimated earnings on uncompleted contracts
206,623
Total Current Liabilities
14,236,003
20,613,247
Long-Term Liabilities:
Deferred income tax liability
331,527
481,779
Due to related party medical practices
227,543
245,041
Long-term debt and capital leases, less current portion
336,761
2,059,236
Other liabilities
720,779
711,996
Total Long-Term Liabilities
1,616,610
3,498,052
Total Liabilities
15,852,613
24,111,299

 

CONSOLIDATED BALANCE SHEETS

STOCKHOLDERS EQUITY

 
June 30,
 
2017
2016
Stockholders' Equity:
   
Class A non-voting preferred stock $.0001 par value; 453,000 shares authorized at June 30, 2017 and 2016, 313,438 issued and outstanding at June 30, 2017 and 2016
$31
$31
Preferred stock $.001 par value; 567,000 shares authorized at June 30, 2017 and 2016, issued and outstanding – none
Common stock $.0001 par value; 8,500,000 shares authorized at June 30, 2017 and 2016, 6,299,154 and 6,062,809 issued at June 30, 2017 and 2016, respectively; 6,287,511 and 6,051,166 outstanding at June 30, 2017 and 2016, respectively
630
607
Class B convertible common stock (10 votes per share) $.0001 par value; 227,000 shares authorized at June 30, 2017 and 2016, 146 issued and outstanding at June 30, 2017 and 2016
Class C common stock (25 votes per share) $.0001 par value; 567,000 shares authorized at June 30, 2017 and 2016, 382,513 issued and outstanding at June 30, 2017 and 2016

38

38
Paid-in capital in excess of par value
179,131,780
173,702,335
Accumulated deficit
(101,003,389)
(120,624,010)
Notes receivable from employee stockholders
(16,546)
(23,879)
Treasury stock, at cost – 11,643 shares of common stock at June 30, 2017 and 2016
(675,390)
(675,390)
Total Fonar Corporation’s Stockholders’ Equity
77,437,154
52,379,732
Noncontrolling interests
5,472,799
8,396,575
Total Stockholders' Equity
82,909,953
60,776,307

Total Liabilities and Stockholders' Equity

$98,762,566
================
$84,887,606
================

CONSOLIDATED STATEMENTS OF INCOME

 
For the Years Ended June 30,
 
2017
2016
2015
Revenues
     
Product sales – net
$1,572,148
$1,276,882
$1,820,979
Service and repair fees – net
9,537,040
9,396,736
9,549,316
Service and repair fees – related parties – net
110,000
110,000
110,000
Patient fee revenue, net of contractual allowances and discounts
36,400,600
32,985,809
28,153,598
Provision for bad debts for patient fee
(16,171,434)
(14,539,786)
(12,770,249)
Management and other fees – net
38,361,514
36,633,230
34,805,627
Management and other fees – related party medical practices – net
8,226,718
7,505,339
7,381,725
Total Revenues – Net
78,036,586
73,368,210
69,050,996
Costs and Expenses
Costs related to product sales
931,501
1,254,328
1,882,230
Costs related to service and repair fees
2,996,736
2,148,143
2,189,373
Costs related to service and repair fees – related parties
34,564
25,147
25,220
Costs related to patient fee revenue
8,987,673
9,418,935
7,939,524
Costs related to management and other fees
20,828,581
21,949,583
20,970,116
Costs related to management and other fees – related party medical practices
4,273,370
4,074,762
3,883,953
Research and development
1,480,670
1,631,846
1,812,398
Selling, general and administrative, inclusive of compensatory element of stock issuances of $2,397,276, $2,006 and $53,200 for the years ended June 30, 2017, 2016 and 2015, respectively
19,407,411
18,509,850
17,448,305
Total Costs and Expenses
58,940,506
59,012,594
56,151,119
Income from Operations
19,096,080
14,355,616
12,899,877
Other Income and (Expenses):
     
Interest expense
28,299
(262,193)
(702,095)
Investment income
193,141
224,263
225,270
Other (expense) income – net
(1,156)
190,560
394,810
Income before benefit for income taxes and noncontrolling interests
19,316,364
14,508,246
12,817,862
Benefit for Income Taxes
4,362,434
4,287,271
2,612,521
Net Income
$23,678,798
$18,795,517
$15,430,383
Net Income – Noncontrolling Interests
(4,058,177)
(3,070,892)
(2,519,732)
Net Income – Attributable to FONAR
$19,620,621
===============
$15,724,625
===============
$12,910,651
===============
Net Income Available to Common Stockholders
$18,390,586
===============
$14,702,834
===============
$12,071,670
===============
Net Income Available to Class A Non-Voting Preferred Stockholders
$916,769
===============
$761,561
===============
$625,309
===============
Net Income Available to Class C Common Stockholders
$313,266
===============
$260,230
===============
$213,672
===============
Basic Net Income Per Common Share Available to Common Stockholders
$2.98
===============
$2.43
===============
$2.00
===============
Diluted Net Income Per Common Share Available to Common Stockholders
$2.92
===============
$2.38
===============
$1.95
===============
Basic and Diluted Income Per Share – Class C Common
$0.82
===============
$0.68
===============
$0.56
===============
Weighted Average Basic Shares Outstanding – Common Stockholders
6,161,599
===============
6,050,893
===============
6,050,632
===============
Weighted Average Diluted Shares Outstanding – Common Stockholders
6,289,103
===============
6,178,397
===============
6,178,136
===============
Weighted Average Basic and Diluted Shares Outstanding – Class C Common
382,513
===============
382,513
===============
382,513
===============

 

FONAR™ Corporation
110 Marcus Drive
Melville, N.Y. 11747
Tel. 631-694-2929
Fax. 631-390-9540
Email sales@FONAR.com
Investor Information

top of page

Site Map | Terms of Use-Our Privacy Policy Use
Copyright 2017 FONAR- All Rights Reserved