Full Press Release Details
| NEWS | ||
| 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) 390-1709 |
Fiscal 2015 Year End Earnings
23% Increase of Fiscal 2015 Diluted
Net Income per Common Share available to Common Shareholders to $1.95, versus prior year
15% Increase of Fiscal 2015 Net
Income to $15.4 million, versus prior year
5 % Increase of Fiscal 2015 Income
from Operations to $12.9 million, versus prior year
Increase of Fiscal 2015 net
revenues to $69.1 million, versus prior year
YORK, September 14, 2015 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning , reported today its fiscal 2015
results for the year ended June 30, 2015. The Company is known as the first Company to invent and manufacture an MRI (Magnetic
Resonance) scanner. Leading the list of FONAR's most recent patented inventions is its technology enabling UPRIGHT full
weight-bearing MRI imaging for the first time on all the gravity sensitive regions of the human anatomy, e.g. the spine, brain,
hip, knee, ankle, foot, shoulder, and pelvis. 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 fully weight-bearing UPRIGHT position.
Net income increased
15% to $15.4 million for the fiscal year ended June 30, 2015. This compares with $13.4 million for the fiscal year ended June 30,
Income from operations
increased 5% to $12.9 million for the fiscal year ended June 30, 2015. This compares with $12.3 million for the fiscal year ended
per common share available to common shareholders increased 23% to $2.00 for the fiscal year ended June 30, 2015 as compared to
$1.62 for the fiscal year ended June 30, 2014.
per common share available to common shareholders increased 23% to $1.95 for the fiscal year ended June 30, 2015 as compared to
$1.58 for the fiscal year ended June 30, 2014.
to $69.1 million for the fiscal year ended June 30, 2015. This compares to $68.5 million for the fiscal year ended June 30, 2014.
| FONAR | ||
| Page 2 of 8 |
ended June 30, 2015, the revenues from the management of the diagnostic imaging center segment, consisting of patient and management
fee revenue, and less the provision for bad debt for patient revenue, was $57.6 million as compared to $56.4 million one year earlier.
total assets were $76.5 million, as compared to $76.8 million one year earlier.
At June 30, 2015, total cash and cash equivalents
were $9.4 million, as compared to $10.0 million one year earlier.
total liabilities were $25.7 million, as compared to $30.9 million one year earlier.
At June 30, 2015, total current liabilities
were $18.8 million, as compared to $20.9 million one year earlier.
2015, the Company purchased 20% of the Class A members ownership interest in Health Diagnostic Management, LLC., (HDM) for a cost
of approximately $5.0 million. After this cash transaction, the Company's ownership interest in HDM is 60.4%.
the Company repaid a portion of the Class A Stockholders capital contribution of approximately $1.1 million. As a result, the Company's
subsidiary, HMCA, owns a 96% interest in Imperial Management Services.
a press release (www.fonar.com/news/050515.htm) earlier this year, a 94-page, seven chapter monograph entitled, "The Craniocervical
Syndrome and MRI" was published by S. Karger, AG, (www.karger.com/Book/Home/261956). It examines the impact of rapid advances
in MRI that are transforming the treatment of patients suffering from the craniocervical syndrome (CCS). It is written by leading
international experts in the field to provide practitioners with a better understanding of the subtle anatomy and MRI appearances
at the craniocervical junction, the junction of the human skull with the first two vertebra of the spine, the atlas vertebra (C-1),
spine vertebra #1 and the axis vertebra (C-2), spine vertebra # 2 that provides the axis of rotation for the head. The Craniocervical
Syndrome monograph compiles the symptoms and medical disabilities that result from common injuries to the head and neck, e.g. 1.2
million automobile whiplash injuries occurring annually in the U.S. Of particular importance, highlighted by the authors, is the
newly discovered physiologic importance of the dynamic role of the cerebrospinal fluid (CSF) circulation throughout the brain and
spinal column, which is circulating from the brain to the bottom of the spine at the rate of 32 quarts per day. With the advent
of FONAR's new technology for capturing realtime video visualization ("movies") of the CSF as it moves in and
out of the UPRIGHT brain, the widespread pressure of the obstructions to the CSF flow in and out of the brain as a result
of trauma injuries to the neck, is now believed by FONAR and scientists working in collaboration with FONAR to be playing a major
role in the genesis of the neurodegenerative diseases such as Alzheimer's, Childhood Autism, Parkinson's, Multiple
Sclerosis and Amyotrophic Lateral Sclerosis (ALS). It directs attention to the revolutionary importance of FONAR's new UPRIGHT
MRI imaging technology and the prospect of significantly relieving the suffering of the millions of patients afflicted with these
| FONAR | ||
| Page 3 of 8 |
Raymond V. Damadian,
M.D., president and chairman of Fonar Corporation, said, "the Company has prospered significantly over the past few years
as evidenced by recent increases in diluted earnings per share of 23% in fiscal 2015, 18% in fiscal 2014 and 47% in fiscal 2013.
Specifically, for fiscal 2015, our diluted net income per common share, available to common shareholders, increased 23% to $1.95
versus fiscal 2014. For fiscal 2014, diluted net income per common share, available to common shareholders, increased 18% to $1.58
versus fiscal 2013. For fiscal 2013, diluted net income per common share, available to common shareholders, increased 47% to $1.34
versus fiscal 2012 when it was $0.91."
growth continues as the Company purchases more of the ownership interests of our minority partners. HMCA, LLC, may be expected
to expand with more diagnostic imaging centers. Scan volume is steadily increasing at our current 24 imaging centers as the medical
community learns firsthand from the improved outcomes of their patients of the unique diagnostic benefits of the FONAR UPRIGHT
Multi-Position fully weight-loaded MRI. We also continue to sell the FONAR UPRIGHT Multi-Position MRI to new customers,"
(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. FONAR's
stellar product is the FONAR 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.
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.
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
CONSOLIDATED BALANCE SHEETS
| June 30, | ||||||||
| 2015 | 2014 | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 9,448,798 | $ | 9,951,736 | ||||
| Accounts receivable - net of allowances for doubtful accounts of $362,362 and $257,362 at June 30, 2015 and 2014, respectively | 3,790,981 | 4,450,125 | ||||||
| Medical receivables -net of allowances for doubtful accounts of $25,688,000 and $12,917,751 at June 30, 2015 and 2014, respectively | 9,082,319 | 8,807,856 | ||||||
| Management and other fees receivable - net of allowances for doubtful accounts of $13,271,651 and $10,901,619 at June 30, 2015 and 2014, respectively | 14,057,962 | 11,970,388 | ||||||
| Management and other fees receivable - related medical practices - net of allowances for doubtful accounts of $403,047 at June 30, 2015 and 2014 | 3,507,204 | 3,426,982 | ||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 681,660 | 759,809 | ||||||
| Inventories | 2,191,849 | 2,443,536 | ||||||
| Prepaid expenses and other current assets | 860,040 | 1,011,358 | ||||||
| Total Current Assets | 43,620,813 | 42,821,790 | ||||||
| Deferred income tax asset | 8,423,306 | 5,740,287 | ||||||
| Property and Equipment - Net | 12,901,195 | 15,029,729 | ||||||
| Goodwill | 1,767,098 | 1,767,098 | ||||||
| Other Intangible Assets - Net | 8,950,160 | 10,508,843 | ||||||
| Other Assets | 829,505 | 922,096 | ||||||
| Total Assets | $ | 76,492,077 | $ | 76,789,843 |
CONSOLIDATED BALANCE SHEETS
| June 30, | ||||||||
| 2015 | 2014 | |||||||
| Current Liabilities: | ||||||||
| Current portion of long-term debt and capital leases | $ | 2,490,146 | $ | 2,890,816 | ||||
| Accounts payable | 1,782,442 | 2,481,997 | ||||||
| Other current liabilities | 8,252,633 | 8,750,286 | ||||||
| Unearned revenue on service contracts | 4,187,401 | 4,730,962 | ||||||
| Customer deposits | 1,937,813 | 1,926,813 | ||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 142,217 | 142,217 | ||||||
| Total Current Liabilities | 18,792,652 | 20,923,091 | ||||||
| Long-Term Liabilities: | ||||||||
| Deferred income tax liability | 510,492 | 583,990 | ||||||
| Due to related medical practices | 236,920 | 234,581 | ||||||
| Long-term debt and capital leases, less current portion | 5,699,302 | 8,481,830 | ||||||
| Other liabilities | 469,198 | 659,759 | ||||||
| Total Long-Term Liabilities | 6,915,912 | 9,960,160 | ||||||
| Total Liabilities | 25,708,564 | 30,883,251 |
CONSOLIDATED BALANCE SHEETS
STOCKHOLDERS' EQUITY
| June 30, | ||||||||
| 2015 | 2014 | |||||||
| Stockholders' Equity: | ||||||||
| Class A non-voting preferred stock $.0001 par value; 453,000 shares authorized at June 30, 2015 and 2014, 313,438 issued and outstanding at June 30, 2015 and 2014 | $ | 31 | $ | 31 | ||||
| Preferred stock $.001 par value; 567,000 shares authorized at June 30, 2015 and 2014, issued and outstanding - none | - | - | ||||||
| Common stock $.0001 par value; 8,500,000 shares authorized at June 30, 2015 and 2014, 6,062,483 and 6,057,483 issued at June 30, 2015 and 2014, respectively; 6,050,840 and 6,045,840 outstanding at June 30, 2015 and 2014, respectively | 607 | 606 | ||||||
| Class B common stock (10 votes per share) $.0001 par value; 227,000 shares authorized at June 30, 2015 and 2014, 146 issued and outstanding at June 30, 2015 and 2014 | - | - | ||||||
| Class C common stock (25 votes per share) $.0001 par value; 567,000 shares authorized at June 30, 2015 and 2014, 382,513 issued and outstanding at June 30, 2015 and 2014 | 38 | 38 | ||||||
| Paid-in capital in excess of par value | 175,447,586 | 175,284,437 | ||||||
| Accumulated deficit | (136,348,635 | ) | (149,259,286 | ) | ||||
| Notes receivable from employee stockholders | (31,495 | ) | (38,828 | ) | ||||
| Treasury stock, at cost - 11,643 shares of common stock at June 30, 2015 and 2014 | (675,390 | ) | (675,390 | ) | ||||
| Total Fonar Corporation's Stockholders' Equity | 38,392,742 | 25,311,608 | ||||||
| Noncontrolling interests | 12,390,771 | 20,594,984 | ||||||
| Total Stockholders' Equity | 50,783,513 | 45,906,592 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 76,492,077 | $ | 76,789,843 |
CONSOLIDATED STATEMENTS OF INCOME
| For the Years Ended June 30, | ||||||||
| Revenues | 2015 | 2014 | ||||||
| Product sales - net | $ | 1,820,979 | $ | 1,877,932 | ||||
| Service and repair fees - net | 9,549,316 | 10,082,631 | ||||||
| Service and repair fees - related parties - net | 110,000 | 110,000 | ||||||
| Patient fee revenue, net of contractual allowances and discounts | 28,153,598 | 24,307,192 | ||||||
| Provision for bad debts for patient fee | (12,770,249 | ) | (10,333,082 | ) | ||||
| Management and other fees - net | 34,805,627 | 34,839,969 | ||||||
| Management and other fees - related medical practices - net | 7,381,725 | 7,620,835 | ||||||
| Total Revenues - Net | 69,050,996 | 68,505,477 | ||||||
| Costs and Expenses | ||||||||
| Costs related to product sales | 1,882,230 | 1,067,120 | ||||||
| Costs related to service and repair fees | 2,189,373 | 2,496,985 | ||||||
| Costs related to service and repair fees - related parties | 25,220 | 27,242 | ||||||
| Costs related to patient fee revenue | 7,939,524 | 7,670,484 | ||||||
| Costs related to management and other fees | 20,970,116 | 20,851,065 | ||||||
| Costs related to management and other fees - related medical practices | 5,397,818 | 5,134,553 | ||||||
| Research and development | 1,812,398 | 1,760,821 | ||||||
| Selling, general and administrative, inclusive of compensatory element of stock issuances of $53,200 and $223,000 for the years ended June 30, 2015 and 2014, respectively | 13,459,408 | 15,388,239 | ||||||
| Provision for bad debts | 2,475,032 | 1,806,299 | ||||||
| Total Costs and Expenses | 56,151,119 | 56,202,808 | ||||||
| Income from Operations | 12,899,877 | 12,302,669 | ||||||
| Other Income and (Expenses): | ||||||||
| Interest expense | (702,095 | ) | (884,541 | ) | ||||
| Investment income | 225,270 | 238,928 | ||||||
| Other income (expense) - net | 394,810 | (608,599 | ) | |||||
| Income before benefit for income taxes and noncontrolling interests | 12,817,862 | 11,048,457 | ||||||
| Benefit for Income Taxes | 2,612,521 | 2,348,312 | ||||||
| Net Income | $ | 15,430,383 | $ | 13,396,769 | ||||
| Net Income - Noncontrolling Interests | (2,519,732 | ) | (3,000,639 | ) | ||||
| Net Income - Controlling Interests | $ | 12,910,651 | $ | 10,396,130 |
CONSOLIDATED STATEMENTS OF INCOME (Continued)
| For the Years Ended June 30, | ||||||||
| 2015 | 2014 | |||||||
| Net Income Available to Common Stockholders | $ | 12,071,670 | $ | 9,720,030 | ||||
| Net Income Available to Class A Non-Voting Preferred Stockholders | $ | 625,309 | $ | 503,911 | ||||
| Net Income Available to Class C Common Stockholders | $ | 213,672 | $ | 172,189 | ||||
| Basic Net Income Per Common Share Available to Common Stockholders | $ | 2.00 | $ | 1.62 | ||||
| Diluted Net Income Per Common Share Available to Common Stockholders | $ | 1.95 | $ | 1.58 | ||||
| Basic and Diluted Income Per Share - Common C | $ | 0.56 | $ | 0.45 | ||||
| Weighted Average Basic Shares Outstanding - Common Stockholder | 6,050,632 | 6,009,822 | ||||||
| Weighted Average Diluted Shares Outstanding - Common Stockholder | 6,178,136 | 6,137,326 | ||||||
| Weighted Average Basic Shares Outstanding - Class C Common | 382,513 | 382,513 | ||||||
| Weighted Average Diluted Shares Outstanding - Class C Common | 382,513 | 382,513 |