Full Press Release Details
| NEWS | Fonar Corporation and Subsidiaries | |
| For Immediate Release | The Inventor of MR Scanning | |
| Contact: Daniel Culver | An ISO 9001 Company | |
| Director of Communications | Melville, New York 11747 | |
| E-mail: investor@fonar.com | Phone: (631) 694-2929 | |
| www.fonar.com | Fax: (631) 390-1772 |
Announces Fiscal 2019 2nd Quarter and Six Months Financial Results
Revenues - Net, increased 6% to $41.9 million, for the six month period ended December 31, 2018, versus same six month period
from Operations increased 9% to $11.5 million, for the six month period ended December 31, 2018, versus same six month period
for Income Taxes - Due to a re-evaluation of the need for a deferred tax valuation allowance, the Company was required to record
a full tax provision for the six months ended December 31, 2018 in the amount of $2.3 Million, a 208% increase as compared to
a tax provision of only $0.8 million for the six months ended December 31, 2017.
Income decreased by 5% to $9.4 million for the six
month period ended December 31, 2018, versus same six month period one
year earlier, as a result of the Company's requirement to re-evaluate the need for a deferred tax valuation allowance
and record a full Provision for Income Taxes in the amount of $2.3 million.
Net Income per Common Share available to Common Shareholders decreased 15% to $0.99 for the six
month period ended December 31, 2018, versus same six month period one
year earlier, due to the Company's need to re-evaluate its deferred tax valuation allowance and
record a full Provision for Income Taxes in the amount of $2.3 million.
and cash equivalents increased by 19% to $23.3 million for the six month period ended
December 31, 2018, versus the fiscal year ended June 30, 2018.
Capital increased by 18% to $62.0 million for the six month period ended
December 31, 2018, versus the fiscal year ended June 30, 2018.
NEW YORK, February 11, 2019 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning , reported today its financial
results for the 2nd Quarter of Fiscal 2019 and the six month period ended December 31, 2018. The
Company's two industry segments are: development, manufacturing and servicing of the FONAR UPRIGHT Multi-Position
MRI, aka Stand-Up MRI, and management of 26 MRI centers through its subsidiary,
Health Management Company of America (HMCA).
Company's popular 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. FONAR has a substantial list of patents for the many features of the UPRIGHT MRI which is unique for its ability
to image the gravity sensitive regions of the human anatomy, especially the brain, extremities, spine and cerebrospinal fluid
from Operations, for the six month period ended December 31, 2018, increased 9% to $11.5 million as compared to the six month
period ended December 31, 2017, of $10.6 million.
CORPORATION AND SUBSIDIARIES
from Operations, for the quarter ended December 31, 2018, increased 3% to $6.0 million, as compared to the quarter ended December
31, 2017, of $5.8 million.
Revenues - Net, for the six month period ended December 31, 2018, increased 6% to $41.9 million as compared to the six month
period ended December 31, 2017, of $39.5 million.
Revenues - Net, for the quarter ended December 31, 2018 increased 5% to $21.2 million as compared to the quarter ended December
31, 2017, of $20.2 million.
for Income Taxes for the six month period ended December 31, 2018, increased 208% to $2.3 million as compared to the six month
period ended December 31, 2017, of $0.8 million, resulting from the re-evaluation of the need for a deferred tax valuation allowance
and requirement to record a full tax provision for the six months December 31, 2018 in the amount of $2.3 Million.
for Income Taxes for the quarter ended December 31, 2018, increased 111% to $1.2 million as compared to the quarter ended December
31, 2017, of $0.6 million. Due to a re-evaluation of the need for a deferred tax valuation allowance, the Company was required
to record a full tax provision for the quarter ending December 31, 2018 in the amount of $1.2 million.
Income, for the six month period ended December 31, 2018, decreased 5% to $9.4 million, as compared to the six month period ended
December 31, 2017, of $9.8 million. The decrease is due to a re-evaluation of the need for a deferred tax valuation allowance
and requirement to record a full tax provision for the six months December 31, 2018 in the amount of $2.3 Million, a 208% increase
as compared to a tax provision of only $0.8 million for the six months ended December 31, 2017.
Income, for the quarter ended December 31, 2018, decreased 7% to $4.9 million, as compared to the quarter ended December 31, 2017,
of $5.2 million. This decrease is also due to a re-evaluation of the need for a deferred tax valuation allowance and requirement
to record a full tax provision.
Income Available to Common Stockholders, for the six month period ended December 31, 2018, decreased 13% to $6.4 million, as compared
to the six month period ended December 31, 2017, of $7.4 million. The decrease is due to a re-evaluation of the need for a deferred
tax valuation allowance and requirement to record a full tax provision for the six months December 31, 2018 in the amount of $2.3
Million, a 208% increase as compared to a tax provision of only $0.8 million for the six months ended December 31, 2017.
Income Available to Common Stockholders, for the quarter ended December 31, 2018, decreased 15% to $3.3 million as compared to
the quarter ended December 31, 2017, of $3.9 million. This decrease is also due to a re-evaluation of the need for a deferred
tax valuation allowance and requirement to record a full tax provision.
Net Income per Common Share Available to Common Stockholders, for the six month period ended December 31, 2018, decreased 15%
to $0.99 per share, as compared to the six month period ended December 31, 2017, of $1.16 per share. The decrease is due to a
re-evaluation of the need for a deferred tax valuation allowance and requirement to record a full tax provision for the six months
ended December 31, 2018 in the amount of $2.3 million, a 208% increase as compared to a tax provision of only $0.8 million for
the six months ended December 31, 2017.
Net Income per Common Share Available to Common Stockholders, for the quarter ended December 31, 2018, decreased 16% to $0.51
per share, as compared to the quarter ended December 31, 2017, of $0.61 per share. This decrease is also due to a re-evaluation
of the need for a deferred tax valuation allowance and requirement to record a full tax provision.
CORPORATION AND SUBSIDIARIES
Assets, at December 31, 2018, increased 4% to $122.9 million, as compared to $118.3 million at June 30, 2018.
Current Assets, at December 31, 2018, increased 10% to $73.6 million, as compared to $67.1 million at June 30, 2018.
Cash and Cash Equivalents, at December 31, 2018, increased 19% to $23.3 million, as compared to $19.6 million at June 30, 2018.
Liabilities, at December 31, 2018, were $13.0 million, as compared to $16.1 million at June 30, 2018.
Current Liabilities, at December 31, 2018, were $11.6 million, as compared to $14.6 million at June 30, 2018.
Total Assets / Total Liabilities ratio increased 28% to 9.4 for the six month period ended December 31, 2018 as compared to 7.4
November 10, 2018, FONAR Founder Raymond Vahan Damadian, M.D., received The Excellence in Medicine Medal of Honor'
from the Chiari & Syringomyelia Foundation at Brooks's in London, England.
Henderson, M.D., a neurosurgeon and a member of the steering committee for the Chiari & Syringomyelia Foundation said: "Raymond
Damadian revolutionized medicine with the discovery and development of MRI."
Donlin Long, M.D., former Chairman of Neurosurgery at Johns Hopkins University called it: "the single most important diagnostic
discovery in the history of all of medicine."
award citation included: In 1970, Raymond Damadian made the discovery that is the basis for MR scanning - that there is a marked
difference in relaxation times between normal and abnormal tissues of the same type, as well as between different types of normal
tissues. This seminal discovery, which remains the basis for the making of every MRI image ever produced, is the foundation of
and CEO, Timothy R. Damadian said, "We are very pleased with the results, in particular the 9% increase in Income from Operations
for the 6-month period ending on December 31, 2018.
important to point out that our net income is being affected by the Company's requirement to record a full Provision for
Income Taxes. Fortunately, there are ample tax loss carry-forwards for the company to utilize. Changes in the tax law have benefited
the Company by lowering its tax rate, further extending the benefit by reducing future cash outlays, once net operating losses
continuing success is fundamentally attributable to the ever-expanding appeal of FONAR MRI technology among patients and physicians.
Patients strongly prefer the UPRIGHT MRI, also known as the Stand-Up MRI, for its openness, unlike the more conventional
are drawn to the UPRIGHT MRI as well, for two reasons: They can accommodate their patients' preferences without compromising
on diagnostic image quality, and for the many instances where the anatomy of interest needs to be viewed in any of its normal
weight-bearing positions, such as the lower back with the patient standing or sitting, the UPRIGHT is the only MRI that can
great technology, but it has to be properly marketed, and the patients and their physicians have to be pleased with the service
provided at all 26 HMCA-managed facilities. Our highly experienced, skilled and dedicated management team has successfully achieved
that objective year in and year out.
ahead, we continue to evaluate potential acquisitions, but, as always, we will not take
unnecessary risks for short term gains. Apart from acquisitions, we continue to increase patient volume at our existing centers
and, at the same time, search for areas whose demographics satisfy our criteria for new locations."
CORPORATION AND SUBSIDIARIES
V. Damadian, M.D., Chairman of the Board of Directors of FONAR Corporation, said: "I am pleased to report that a peer-reviewed,
research chapter, found on-line at IntechOpen.com, gives credit to the FONAR UPRIGHT MRI. It says: The FONAR upright