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|For Immediate Release||The Inventor of MR Scanning™|
|Contact: Daniel Culver||An ISO 9001 Company|
|Director of Communications||Melville, New York 11747|
|E-mail: email@example.com||Phone: (631) 694-2929|
|www.fonar.com||Fax: (631) 390-1709|
FONAR Announces Results For Fiscal 2014
|·||39% Increase of Fiscal 2014 Net Revenues to $68.5 million versus prior year|
|·||31% Increase of Fiscal 2014 Net Income to $13.4 million versus prior year|
|·||18% Increase of Fiscal 2014 Diluted Net Income per Common Share available to Common Shareholders to $1.58 versus prior year|
|·||63 % Increase of Fiscal 2014 Income from Operations to $12.3 million versus prior year|
MELVILLE, NEW YORK, September 15, 2014 – Fonar Corporation (NASDAQ-FONR), The Inventor of MR Scanning™, today announced its 2014 fiscal year-end results. 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. 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.
Revenues increased 39% to $68.5 million for the fiscal year ended June 30, 2014 as compared to $49.1 million for fiscal year ended June 30, 2013.
Revenues from the management of the diagnostic imaging center segment, consisting of patient and management fee revenue, increased 65% to $56.4 million for the year ended June 30, 2014, as compared to $34.3 million over the comparable period one year earlier.
Net income increased 31% to $13.4 million for the fiscal year ended June 30, 2014 as compared to $10.3 million for the earlier corresponding fiscal year.
Income from operations increased 63% to $12.3 million for the fiscal year ended June 30, 2014 from $7.5 million for the fiscal year ended June 30, 2013.
Diluted net income available to common shares for the fiscal year ending June 30, 2014 was $1.58, which includes a partial reversal of the deferred tax valuation allowance of $2.7 million, or $0.45.
Total cash and cash equivalents increased 26% to $10.0 million at June 30, 2014, from $7.9 million at June 30, 2013.
Raymond V. Damadian, M.D., president and chairman of Fonar Corporation, said, “the Company has grown and prospered significantly over the past year as evidenced by our outstanding financial results. This is in spite of some cuts in MRI reimbursements brought about by the Affordable Care Act. This is in large part due to the extraordinary abilities of the FONAR UPRIGHT® Multi-Position™ MRI, as well as our fine management staff.”
“A year and half have passed since the acquisition of the business of Health Diagnostics Management (HDM) and we can look back and see how advantageous acquiring these centers was,” continued Dr. Damadian. “By combining the resources of our wholly owned subsidiary, Health Management Corporation of America (HMCA), and HDM, we have seen the benefits of economies of scale, shared technical and administrative expertise and capabilities, and joint marketing strategies. In the future, we expect to facilitate growth of imaging centers through acquisitions, supporting new UPRIGHT® imaging centers, and increasing scan volume at our existing locations by continuing to educate the medical community about the unique diagnostic advantages of UPRIGHT® Multi-Position™ fully weight-loaded MRI. The new HMCA has 23 FONAR weight-bearing MRI scanners and is the largest of its kind in the world.”
“Our successful business model is made possible by the success of our current MRI scanner, the UPRIGHT® Multi Position™ (Stand-Up®) MRI,” continued Dr. Damadian. “This scanner is extremely popular with patients who experience claustrophobia or can’t lie down for long periods. The FONAR UPRIGHT® MRI provides unduplicated benefits in assessing the position dependence of patient symptoms. The UPRIGHT® MRI’s ability to make MRI motion pictures (cinés) of the cerebrospinal fluid (CSF) as it flows into and out of the upright brain and spine enables visualization of obstructions of CSF flow not found in other MRIs and leading to new understandings of the genesis of diseases such as multiple sclerosis (MS).
On July 17, 2014, the HDM scanning center in Naples, Florida, won the ‘People’s Choice Award’ after being selected by readers of the Naples Daily News. Stand-Up MRI of SW Florida was selected for the category of ‘Best Imaging Center’. Naples, Florida is among America’s most affluent communities.
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. Since its inception, nearly 300 recumbent-OPEN MRIs and 157 UPRIGHT® Multi-Position™ MRI scanners have been installed worldwide. FONAR’s stellar product is the 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™, Landscape™, CSP™, Dynamic™ and Spondylometry™ 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
|Cash and cash equivalents||$9,951,736||$7,870,727|
|Accounts receivable – net of allowances for doubtful accounts of $257,362 at June 30, 2014 and 2013||4,450,125||4,443,595|
|Medical receivables –net of allowances for doubtful accounts of $12,917,751 and $2,584,669 at June 30, 2014 and 2013, respectively||8,807,856||8,126,476|
|Management and other fees receivable – net of allowances for doubtful accounts of $10,901,619 and $9,095,320 at June 30, 2014 and 2013, respectively||11,970,388||11,465,913|
|Management and other fees receivable – related medical practices – net of allowances for doubtful accounts of $403,047 at June 30, 2014 and 2013||3,426,982||2,381,664|
|Costs and estimated earnings in excess of billings on uncompleted contracts||759,809||445,742|
|Prepaid expenses and other current assets||1,011,358||1,054,551|
|Total Current Assets||42,821,790||37,865,756|
|Deferred Income Tax Asset||5,740,287||2,935,750|
|Property and Equipment – Net||15,029,729||17,524,494|
|Other Intangible Assets – Net||10,508,843||11,904,248|
CONSOLIDATED BALANCE SHEETS
|Current portion of long-term debt and capital leases||$ 2,890,816||$ 2,885,769|
|Other current liabilities||9,024,033||8,494,361|
|Unearned revenue on service contracts||4,730,962||4,965,415|
|Billings in excess of costs and estimated earnings on uncompleted contracts||142,217||142,217|
|Income tax payable||-||19,501|
|Total Current Liabilities||21,196,838||21,117,612|
|Deferred Income Tax Liability||583,990||461,858|
|Due to Related Medical Practices||234,581||230,626|
|Long-Term Debt and Capital Leases, Less Current Portion||8,481,830||12,887,005|
|Total Long-Term Liabilities||9,686,413||14,233,762|
Class A non-voting preferred stock $.0001 par value; 453,000 shares authorized at June 30, 2014 and 2013, 313,438 issued and outstanding at June 30, 2014 and 2013
Preferred stock $.001 par value; 567,000 shares authorized at June 30, 2014 and 2013, issued and outstanding – none
Common stock $.0001 par value; 8,500,000 shares authorized at June 30, 2014 and 2013, 6,057,483 and 5,980,775 issued at June 30, 2014 and 2013, respectively; 6,045,840 and 5,969,132 outstanding at June 30, 2014 and 2013, respectively
Class B common stock (10 votes per share) $.0001 par value; 227,000 shares authorized at June 30, 2014 and 2013, 146 issued and outstanding at June 30, 2014 and 2013
Class C common stock (25 votes per share) $.0001 par value; 567,000 shares authorized at June 30, 2014 and 2013, 382,513 issued and outstanding at June 30, 2014 and 2013
Paid-in capital in excess of par value
Notes receivable from employee stockholders
Treasury stock, at cost – 11,643 shares of common stock at June 30, 2014 and 2013
|Total Fonar Corporation’s Stockholders’ Equity||25,311,608||14,114,061|
|Total Stockholders' Equity||45,906,592||37,799,276|
|Total Liabilities and Stockholders' Equity||$76,789,843||$73,150,650|
CONSOLIDATED STATEMENTS OF INCOME
For the Years
Ended June 30,
|Product sales – net||$ 1,877,932||$ 3,939,140|
|Service and repair fees – net||10,082,631||10,841,935|
|Service and repair fees – related parties – net||110,000||110,000|
|Patient fee revenue, net of contractual allowances and discounts||24,307,192||7,481,865|
|Provision for bad debts for patient fee||(10,333,082)||(2,584,669)|
|Management and other fees – net||34,839,969||21,493,599|
|Management and other fees – related medical practices – net||7,620,835||7,859,944|
|Total Revenues – Net||68,505,477||49,141,814|
|Costs and Expenses|
|Costs related to product sales||1,067,120||3,656,635|
|Costs related to service and repair fees||2,496,985||3,213,420|
|Costs related to service and repair fees – related parties||27,242||32,603|
|Costs related to patient fee revenue||7,670,484||2,704,758|
|Costs related to management and other fees||20,851,065||12,998,243|
|Costs related to management and other fees – related medical practices||5,134,553||3,515,706|
|Research and development||1,760,821||1,438,560|
|Selling, general and administrative, inclusive of compensatory element of stock issuances of $223,000 and $415,021 for the years ended June 30, 2014 and 2013, respectively||15,388,239||12,501,621|
|Provision for bad debts||1,806,299||1,544,521|
|Total Costs and Expenses||56,202,808||41,606,067|
|Income from Operations||12,302,669||7,535,747|
|Other Income and (Expenses):|
|Other (expense) income – net||(608,599)||725,488|
|Income before benefit (provision) for income taxes and noncontrolling interests||11,048,457||7,978,471|
|Benefit for Income Taxes||2,348,312||2,277,891|
|Net Income – Noncontrolling Interests||(3,000,639)||(1,577,820)|
|Net Income – Controlling Interests||$ 10,396,130||$ 8,678,542|
CONSOLIDATED STATEMENTS OF INCOME (Continued)
For the Years
Ended June 30,
|Net Income Available to Common Stockholders||$9,720,030||$8,107,367|
|Net Income Available to Class A Non-Voting Preferred Stockholders||$503,911||$425,708|
|Net Income Available to Class C Common Stockholders||$172,189||$145,467|
|Basic Net Income Per Common Share Available to Common Stockholders||$1.62||$1.37|
|Diluted Net Income Per Common Share Available to Common Stockholders||$1.58||$1.34|
|Basic and Diluted Income Per Share – Common C||$0.45||$0.38|
|Weighted Average Basic Shares Outstanding – Common Stockholder||6,009,822||5,933,318|
|Weighted Average Diluted Shares Outstanding – Common Stockholder||6,137,326||6,060,822|
|Weighted Average Basic Shares Outstanding – Class C Common||382,513||382,513|
|Weighted Average Diluted Shares Outstanding – Class C Common||382,513||382,513|
The following information was filed by Fonar Corp (FONR) on Tuesday, September 16, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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