Full Press Release Details
NEW YORK, NY--(Marketwire - May 13, 2011) - Daxor Corporation (NYSE Amex: DXR)
March 31, 2011 March 31, 2010
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Total Operating Revenue $ 377,469 $ 396,272
Total Costs & Expenses 2,553,406 1,738,428
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Loss From Operations (2,175,937) (1,342,156)
Total Other (Expense) Income (210,338) 1,833,829
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(Loss) Income Before Income Taxes (2,386,275) 491,673
Income Tax (Benefit) Expense (1,060,013) 584,092
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Net Loss $ (1,326,262) $ (92,419)
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Weighted Average Number of Shares
Outstanding 4,226,137 4,247,285
Loss Per Share $ (0.31) $ (0.02)
Daxor Corporation (NYSE Amex: DXR), a medical instrumentation and
biotechnology company, today announced first quarter earnings for 2011. The
Company had a net loss per share of $(0.31) during the current quarter
versus a net loss of $(0.02) per share for the quarter ended March 31,
Income tax (benefit) and expense for the three months ended March 31, 2011
and 2010 includes accruals of $680,566 and $1,820,468 for income tax and
$54,435 and $767,025 for personal holding company tax. These tax accruals
were completely offset by a reduction of $1,795,014 in 2011 and mostly
offset by a reduction of $2,003,401 in 2010 for deferred taxes primarily
attributable to the loss from the marking to market of short positions.
For the three months ended March 31, 2011 total operating revenues
decreased by $18,803 or 5% to $377,469 from $396,272 in 2010. This is
directly attributable to a decrease in kit sales of $18,301 or 7%. There
were no BVA-100 Blood Volume Analyzers sold in the first quarter of 2011 or
2010. The significant reduction in Medicare reimbursement for diagnostic
radiopharmaceutical products such as Daxor's Volumex Kit that became
effective in 2008 continues to negatively impact the sale of Blood Volume
Company Management believes that this reduction in reimbursement for the
Volumex Kit will ultimately prove to be self-defeating because it is likely
to result in the discharge of inadequately treated congestive heart failure
patients from hospitals. This will in turn lead to higher rates of
readmission and increased death rates in congestive heart failure patients
which could otherwise be avoided.
The Company engages in short-term 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 purchase of the
Total costs and operating expenses for the first quarter of 2011 increased
by $814,978 or 47% to $2,553,406 from $1,738,428 for the first quarter of
2010 primarily due to $870,909 of legal expenses from the SEC
administrative proceeding.
The proceeding took place from March 7, 2011 through March 9, 2011 in New
York City. The Company presented over 500 exhibits during the proceeding.
Management feels strongly that this extensive documentation of its history
of operations will demonstrate that it is primarily an operating medical
instrumentation and biotechnology company and not primarily an investment
company. The Company expects to receive a decision from the SEC during the
The SEC proceeding is described in greater detail in the Company's Form
10-Q for the Quarter ended March 31, 2011 which will be filed later today.
The Company has maintained and increased spending on marketing and research
and development even as operating losses have increased. The Company has
disclosed in previous public filings that it is dependent upon earnings
from its investment portfolio in order to continue these efforts. Dr.
Joseph Feldschuh, the Company's President and Chief Executive Officer, has
sole responsibility for investment decisions with respect to the Company's
investment portfolio.
At March 31, 2011, the Company had total assets of $92,666,632 with total
stockholders' equity of $46,096,663 versus total assets of $91,195,415 and
$46,995,044 of stockholders' equity at December 31, 2010. The decrease in
stockholders' equity is mainly due to the net loss of $(1,326,262) during
the current quarter.
The Company is committed to continuing its research and development program
as part of the ongoing effort to develop products that are complementary to
its current product line. There were 56 Blood Volume Analyzers in service
at March 31, 2011 versus 55 instruments at March 31, 2010.
Gains on sales of securities and dividend income were $4,318,039 or 14.3%
of average invested capital for the quarter ended March 31, 2011 and
$6,644,790 or 23.1% for the quarter ended March 31, 2010.
The Board of Directors voted to declare a dividend of $0.15 per share on
May 11, 2011. The dividend will be payable on Thursday, June 16, 2011 to
shareholders of record on Wednesday, June 1, 2011.
In 2008, Management instituted a policy of paying dividends when funds were
For the Year Ended December 31, 2010, the Company paid a total dividend of
$1.00 per share as follows: $0.10 per share on June 16th and $0.25 per share
on September 30th along with a yearend dividend of $0.65 per share on
The goal of Management is to follow a similar policy for 2011 and pay a
total dividend of $1.00 per share for the year if funds are available.
For more detailed information on our financial results, please refer to our
Form 10-Q for the quarter ended March 31, 2011 which will be filed later
The BVA-100 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, blood loss during surgery, trauma, and 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.
The passage of the Patient Protection and Affordable Care Act (H.R. 3590)
in March 2010 gave Centers for Medicare and Medicaid Services (CMS) the
authority to penalize hospitals for excess readmission rates in heart
failure, acute myocardial infarction, and pneumonia beginning in 2013.