FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™,
reported today its financial results for the fiscal 2021 2nd
Quarter and Six Months period ended December 31, 2020. FONAR’s
primary source of income and growth is attributable to its
diagnostic imaging management subsidiary, Health Management Company
of America (HMCA). In 2009, HMCA managed 9 MRI scanners. Currently,
HMCA manages 38 MRI scanners.
Financial Results
Total Revenues-Net was $42.1 million for the six
months ended December 31, 2020, as compared to $43.2 million for
the corresponding six month-period ended December 31, 2019.
Total Revenues-Net for the quarter ended
December 31, 2020 was $21.2 million as compared to $21.5 million
for the quarter ended December 31, 2019. This also compares to
$21.0 million for the preceding quarter ended September 30,
2020.
Income from Operations for the six months ended
December 31, 2020 was $9.1 million as compared to $10.5 million for
the corresponding six-month period ended December 31, 2019.
Income from Operations for the quarters ended
December 31, 2020 and December 31, 2019 was $5.0 million. There was
a 20% increase for the recent quarter as compared to $4.2 million
for the preceding quarter ended September 30, 2020.
Net Income for the six months ended December 31,
2020 was $7.2 million as compared to $8.7 million for the
corresponding six-month period ended December 31, 2019.
Net Income for the quarter ended December 31,
2020 was $3.9 million as compared to $4.2 million for the
corresponding quarter ended December 31, 2019. There was a 22%
increase for the recent quarter as compared to $3.3 million for the
preceding quarter ended September 30, 2020.
Diluted Net Income per Common Share Available to
Common Stockholders for the six months ended December 31, 2020 was
$0.80 as compared to $0.92 for the corresponding six-month period
ended December 31, 2019.
Diluted Net Income per Common Share Available to
Common Stockholders for the quarters ended December 31, 2020 and
December 31, 2019 was $0.44. There was a 22% increase for the
recent quarter as compared to $0.36 for the preceding quarter ended
September 30, 2020.
Selling, general & administrative expenses
(SG&A) for the six months ended December 31, 2020 increased 27%
to $10.7 million as compared to $8.5 million for the corresponding
six months ended December 31, 2019. This increase was almost
exclusively due to reserves of an incremental $3.9 million placed
on service contracts and management fees and other receivables
resulting from the COVID-19 pandemic. It is too early to know how
much of these reserves will be recovered.
Selling, general & administrative expenses
(SG&A) for the quarter ended December 31, 2020 increased 9% to
$4.5 million, as compared to $4.2 million for the corresponding
quarter ended December 31, 2019. This increase was almost
exclusively due to reserves of an incremental $1.7 million placed
on service contracts and management fees and other receivables
resulting from the COVID-19 pandemic. It is too early to know how
much of these reserves will be recovered.
Research and Development (R&D) expenses were
$0.8 million for the six months ended December 31, 2020, as
compared to $1.1 million for the corresponding six-month period
ended December 31, 2019.
Research and Development (R&D) expenses for
the quarter ended December 31, 2020 were $0.4 million as compared
to $0.6 million for the quarter ended December 31, 2019.
Operating Cash Flow at December 31, 2020
decreased 6% to $9.6 million, compared with $10.2 million for the
period ended December 31, 2019. For comparison, Operating Cash Flow
for the year ended June 30, 2020 was $20.4 million, an increase of
5% versus $19.4 million for the previous fiscal year ended June 30,
2019.
Cash and cash equivalents and short term
investments increased 10% to $40.6 million at December 31, 2020
versus $36.8 million at the fiscal year ended June 30, 2020.
Total Current Assets at December 31, 2020 were
$101.6 million, as compared to $95.9 million at June 30, 2020.
Total Assets were $182.1 million at December 31,
2020 as compared to $180.3 million at June 30, 2020.
Total Current Liabilities were $16.9 million at
December 31, 2020 as compared to $18.7 million at June 30,
2020.
Total Liabilities at December 31, 2020 was $50.3
million, as compared to $54.0 million at June 30, 2020.
The Total Assets / Total Liabilities ratio at
December 31, 2020 was 3.6 as compared to 3.3 at June 30, 2020 .
Working Capital increased 10% to $84.7 million
at December 31, 2020 versus $77.2 million at the fiscal year ended
June 30, 2020.
Management Discussion
President and CEO, Timothy R. Damadian, said,
“Although the COVID-19 pandemic has negatively impacted our
management subsidiary, HMCA, since March of last year, we are
steadily recovering.
The MRI scan volume in the quarter ending June
30, 2020 was 27,757, which was 38% lower than the scan volume in
the prior quarter (45,123). The scan volume for the next quarter
(the quarter ending on September 30, 2020) grew by 50% to 41,556.
The scan volume for the quarter ending December 31, 2020 grew by
another 7% to 44,493. In comparison to pre-pandemic scan volume a
year ago (46,802 scans in the quarter ending December 31, 2019)
we’re now 95% recovered. HMCA-managed facilities are located in
Florida and New York. By the time both states return to normalcy,
hopefully in fiscal 2021, I expect to be back to pre-pandemic scan
volumes and once again on the path of steady growth.
“Prior to the pandemic,” continued Mr. Damadian,
“we had planned to invest between $4 million and $6 million dollars
at four (4) HMCA-managed MRI scanning centers in Fiscal 2020. We
installed a second MRI scanner in the Ormond Beach, Florida
facility in October, 2019, and the first MRI of what will be a
two-MRI facility in Pembroke Pines, Florida in June, 2020. COVID-19
delayed the installation of a second MRI in the Islandia, New York
facility until October 2020. The pandemic also delayed the
installation of a second MRI in the Westchester County facility.
However, I am pleased to report that it was recently installed and
is currently operational in White Plains, New York, making it the
38th HMCA-managed MRI. While the execution of the plan took longer
than expected, we are grateful to have all four MRIs already
contributing to the growth of the company.
“With the installation of a second MRI in the
White Plains facility, we now manage eleven (11) facilities with
two or more MRI scanners – five (5) in New York and six (6) in
Florida. Our vertical growth strategy of installing a second or
even a third MRI at high-volume, high-patient-backlog facilities
has been very successful. Naturally we focus on growing our
remaining single-MRI facilities sites to the point where a second
MRI is justified and feasible.
“As reported previously, we are planning to
establish a de novo center in Bronx County, New York; we continue
our search for promising locations currently underserved by FONAR’s
Upright® MRI technology; and, as always, we seek to make
acquisitions that would expand our existing networks of managed
facilities.
Mr. Damadian concluded, “I remain grateful for
the efforts of the non-controlling-interest group members of our
management team. I’ve worked with them for many years. Their
management skills, concern for the safety of patients and
employees, and commitment to the success of FONAR and HMCA have
enabled us to be profitable even in the midst of a pandemic that
has been hampering our business for nearly a year.”
“Some more good news,” said Raymond V. Damadian,
M.D., Chairman of the Board of FONAR Corporation, “is that the
enormous appeal of the comfort and diagnostic strength that is
offered by our UPRIGHT® Multi Position™ MRI, aka STAND-UP® MRI, has
given the Company favorable word-of-mouth benefit. I am told by our
executive team that many, or most, potential patients are already
aware of this technology. So, when given the opportunity to choose,
they select their MRI scans at an imaging center that features our
UPRIGHT® Multi-Position™ MRI scanner.
“Physicians are also aware of the benefits of
scanning the spine in the fully weight-loaded position,” continued
Dr. Damadian. “Being scanned on the FONAR UPRIGHT® Multi-Position™
MRI gives them the advantage of being able to see the fully
weight-loaded stress on the spine that occurs in their patient’s
daily activities. Our management team spends a great deal of effort
to assure that the need of the referring physician to visualize his
patient’s spine in its FULL RANGE of FULLY WEIGHT-LOADED POSITIONS
is a key provision. That it enables them to select the treatment
that best addresses the patient's SPECIFIC physio-anatomic
deficiency is our priority.
“I expect that the Company will have returned to
its pre-pandemic levels of growth and profitability this year. We
share the sorrow that the COVID-19 pandemic has wrought upon our
society. Now with the vaccine, and other measures in place, we look
forward to a rebounding economy and our own continued success.
Dr. Damadian concluded, “The Company continues
its research of the imaging and quantifying of cerebrospinal fluid
(CSF) flow as it circulates from the brain, down the spine and
throughout the brain. We believe that this research will lead to a
new understanding of the role of CSF physiology in the
neurodegenerative diseases Multiple Sclerosis, Alzheimer’s,
Parkinson’s, Amyotrophic Lateral Sclerosis (ALS) and childhood
autism. In Fiscal 2021, the Company will continue with this
valuable research made possible by the introduction of Fonar’s
UPRIGHT® MRI imaging technology.”
About FONAR
FONAR, the Inventor of MR Scanning™, 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, ”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 cerebral hydraulics of the central
nervous system, 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 primary source of income and growth is
attributable to its wholly-owned diagnostic imaging management
subsidiary, Health Management Company of America (HMCA)
www.hmca.com.
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. It includes its newest
technology for measuring the Upright cerebral hydraulics of the
cerebrospinal fluid (CSF) of the central nervous system. FONAR’s
UPRIGHT® Multi-Position™ MRI is the only scanner licensed under
these patents.
UPRIGHT® and STAND-UP® are registered
trademarks. The Inventor of MR Scanning™, CSP™, Multi-Position™,
UPRIGHT RADIOLOGY™, The Proof is in the Picture™, pMRI™, CSF
Videography™ and Dynamic™, 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.
CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in
thousands, except per share amounts) (UNAUDITED)ASSETS |
|
|
|
|
|
|
|
December 31, 2020 |
|
June 30, 2020 * |
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
40,579 |
|
|
$ |
36,802 |
|
Short term investments |
|
|
32 |
|
|
|
32 |
|
Accounts receivable – net |
|
|
4,171 |
|
|
|
4,313 |
|
Accounts receivable - related party |
|
|
72 |
|
|
|
6 |
|
Medical receivable – net |
|
|
16,373 |
|
|
|
16,172 |
|
Management and other fees receivable – net |
|
|
29,808 |
|
|
|
27,438 |
|
Management and other fees receivable – related medical practices –
net |
|
|
7,262 |
|
|
|
6,896 |
|
Inventories |
|
|
1,844 |
|
|
|
1,649 |
|
Costs and estimated earnings in excess of billings on uncompleted
contracts |
|
|
153 |
|
|
|
153 |
|
Income tax receivable |
|
|
— |
|
|
|
671 |
|
Prepaid expenses and other current assets |
|
|
1,302 |
|
|
|
1,758 |
|
|
|
|
|
|
|
|
|
|
Total Current Assets |
|
|
101,596 |
|
|
|
95,890 |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
2,594 |
|
|
|
2,730 |
|
Deferred income tax asset |
|
|
16,848 |
|
|
|
18,810 |
|
Property and equipment – net |
|
|
21,683 |
|
|
|
21,364 |
|
Right-of-use Asset – operating lease |
|
|
29,570 |
|
|
|
31,392 |
|
Right-of-use Asset – financing lease |
|
|
1,226 |
|
|
|
1,326 |
|
Goodwill |
|
|
3,985 |
|
|
|
3,985 |
|
Other intangible assets – net |
|
|
4,014 |
|
|
|
4,109 |
|
Other assets |
|
|
632 |
|
|
|
653 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
182,148 |
|
|
$ |
180,259 |
|
*Condensed from audited financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts and shares in
thousands, except per share amounts) (UNAUDITED)LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
December 31, 2020 |
|
June 30, 2020 * |
Current Liabilities: |
|
|
|
|
|
|
|
|
Current portion of long-term debt and capital leases |
|
$ |
222 |
|
|
$ |
108 |
|
Accounts payable |
|
|
2,198 |
|
|
|
1,965 |
|
Other current liabilities |
|
|
5,584 |
|
|
|
8,185 |
|
Unearned revenue on service contracts |
|
|
4,029 |
|
|
|
4,105 |
|
Unearned revenue on service contracts – related party |
|
|
55 |
|
|
|
— |
|
Operating lease liability - current portion |
|
|
3,403 |
|
|
|
3,370 |
|
Financing lease liability - current portion |
|
|
200 |
|
|
|
75 |
|
Customer deposits |
|
|
1,232 |
|
|
|
855 |
|
|
|
|
|
|
|
|
|
|
Total
Current Liabilities |
|
|
16,923 |
|
|
|
18,663 |
|
|
|
|
|
|
|
|
|
|
Long-Term
Liabilities: |
|
|
|
|
|
|
|
|
Unearned revenue on service contracts |
|
|
2,528 |
|
|
|
2,656 |
|
Deferred income tax liability |
|
|
234 |
|
|
|
234 |
|
Due to related medical practices |
|
|
93 |
|
|
|
93 |
|
Operating lease liability – net of current portion |
|
|
28,415 |
|
|
|
30,105 |
|
Financing lease liability – net of current portion |
|
|
1,151 |
|
|
|
1,251 |
|
Long-term debt and capital leases, less current portion |
|
|
780 |
|
|
|
865 |
|
Other liabilities |
|
|
148 |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
Total
Long-Term Liabilities |
|
|
33,349 |
|
|
|
35,354 |
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
|
50,272 |
|
|
|
54,017 |
|
*Condensed from audited financial statements.
CONDENSED
CONSOLIDATED BALANCE SHEETS (Amounts and shares in thousands,
except per share amounts) (UNAUDITED) LIABILITIES AND
STOCKHOLDERS’ EQUITY (Continued) |
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
December 31, 2020 |
|
June 30, 2020 * |
Class A non-voting preferred stock $.0001 par value; 453
shares authorized at December 31, 2020 and June 30, 2020, 313
issued and outstanding at December 31, 2020 and June 30, 2020 |
|
$ |
— |
|
|
$ |
— |
|
Preferred stock $.001 par value; 567 shares authorized at December
31, 2020 and June 30, 2020, issued and outstanding – none |
|
|
— |
|
|
|
— |
|
Common Stock $.0001 par value; 8,500 shares authorized at
December 31, 2020 and June 30, 2020, 6,566 and 6,459 issued at
December 31, 2020 and June 30, 2020, 6,554 and 6,447
outstanding at December 31, 2020 and June 30, 2020 |
|
|
1 |
|
|
|
1 |
|
Class B Common Stock (10 votes per share) $.0001 par value; 227
shares authorized at December 31, 2020 and June 30, 2020; .146
issued and outstanding at December 31, 2020 and June 30,
2020 |
|
|
— |
|
|
|
— |
|
Class C Common Stock (25 votes per share) $.0001 par value; 567
shares authorized at December 31, 2020 and June 30, 2020, 383
issued and outstanding at December 31, 2020 and June 30, 2020 |
|
|
— |
|
|
|
— |
|
Paid-in capital in excess of par value |
|
|
185,101 |
|
|
|
183,076 |
|
Accumulated deficit |
|
|
(50,596 |
) |
|
|
(56,215 |
) |
Treasury stock, at cost - 12 shares of common stock at December 31,
2020 and June 30, 2020 |
|
|
(675 |
) |
|
|
(675 |
) |
Total Fonar Corporation’s Stockholders’ Equity |
|
|
133,831 |
|
|
|
126,187 |
|
Noncontrolling interests |
|
|
(1,955 |
) |
|
|
55 |
|
Total Stockholders' Equity |
|
|
131,876 |
|
|
|
126,242 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
182,148 |
|
|
$ |
180,259 |
|
*Condensed from audited financial statements.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (Amounts and shares in thousands,
except per share amounts) (UNAUDITED) |
|
|
|
|
|
FOR THE THREE MONTHS ENDED DECEMBER 31, |
REVENUES |
|
2020 |
|
2019 |
Patient fee revenue – net of contractual allowances and
discounts |
|
$ |
5,238 |
|
|
$ |
5,996 |
|
Product sales – net |
|
|
3 |
|
|
|
3 |
|
Service and repair fees – net |
|
|
1,862 |
|
|
|
2,038 |
|
Service and repair fees - related parties – net |
|
|
28 |
|
|
|
28 |
|
Management and other fees – net |
|
|
11,340 |
|
|
|
10,996 |
|
Management and other fees - related medical practices – net |
|
|
2,693 |
|
|
|
2,390 |
|
Total Revenues – Net |
|
|
21,164 |
|
|
|
21,451 |
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
|
Costs related to patient fee revenue |
|
|
2,649 |
|
|
|
2,958 |
|
Costs related to product sales |
|
|
192 |
|
|
|
120 |
|
Costs related to service and repair fees |
|
|
608 |
|
|
|
772 |
|
Costs related to service and repair fees - related parties |
|
|
9 |
|
|
|
10 |
|
Costs related to management and other fees |
|
|
6,237 |
|
|
|
6,203 |
|
Costs related to management and other fees – related medical
practices |
|
|
1,522 |
|
|
|
1,621 |
|
Research and development |
|
|
424 |
|
|
|
583 |
|
Selling, general and administrative |
|
|
4,541 |
|
|
|
4,163 |
|
Total Costs and Expenses |
|
|
16,182 |
|
|
|
16,430 |
|
Income From Operations |
|
|
4,982 |
|
|
|
5,021 |
|
Interest Expense |
|
|
(16 |
) |
|
|
(19 |
) |
Investment Income |
|
|
75 |
|
|
|
139 |
|
Income Before Provision for Income Taxes and Noncontrolling
Interests |
|
|
5,041 |
|
|
|
5,141 |
|
Provision for Income Taxes |
|
|
(1,113 |
) |
|
|
(932 |
) |
Net Income |
|
|
3,928 |
|
|
|
4,209 |
|
Net Income - Noncontrolling Interests |
|
|
(817 |
) |
|
|
(1,105 |
) |
Net Income – Attributable to FONAR |
|
$ |
3,111 |
|
|
$ |
3,104 |
|
Net Income Available to Common Stockholders |
|
$ |
2,923 |
|
|
$ |
2,914 |
|
Net Income Available to Class A Non-Voting Preferred
Stockholders |
|
$ |
140 |
|
|
$ |
142 |
|
Net Income Available to Class C Common Stockholders |
|
$ |
48 |
|
|
$ |
48 |
|
Basic Net Income Per Common Share Available to Common
Stockholders |
|
$ |
0.45 |
|
|
$ |
0.45 |
|
Diluted Net Income Per Common Share Available to Common
Stockholders |
|
$ |
0.44 |
|
|
$ |
0.44 |
|
Basic and Diluted Income Per Share – Class C Common |
|
$ |
0.12 |
|
|
$ |
0.13 |
|
Weighted Average Basic Shares Outstanding – Common
Stockholders |
|
|
6,465 |
|
|
|
6,447 |
|
Weighted Average Diluted Shares Outstanding - Common
Stockholders |
|
|
6,593 |
|
|
|
6,575 |
|
Weighted Average Basic and Diluted Shares Outstanding – Class C
Common |
|
|
383 |
|
|
|
383 |
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (Amounts and shares in thousands,
except per share amounts) (UNAUDITED) |
|
|
|
|
|
FOR THE SIX MONTHS ENDED DECEMBER 31, |
REVENUES |
|
2020 |
|
2019 |
Patient fee revenue – net of contractual allowances and
discounts |
|
$ |
10,330 |
|
|
$ |
12,041 |
|
Product sales – net |
|
|
31 |
|
|
|
195 |
|
Service and repair fees – net |
|
|
3,788 |
|
|
|
4,102 |
|
Service and repair fees - related parties – net |
|
|
55 |
|
|
|
55 |
|
Management and other fees – net |
|
|
22,554 |
|
|
|
22,024 |
|
Management and other fees - related medical practices – net |
|
|
5,386 |
|
|
|
4,780 |
|
Total Revenues – Net |
|
|
42,144 |
|
|
|
43,197 |
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
|
Costs related to patient fee revenue |
|
|
5,169 |
|
|
|
5,820 |
|
Costs related to product sales |
|
|
325 |
|
|
|
450 |
|
Costs related to service and repair fees |
|
|
1,234 |
|
|
|
1,522 |
|
Costs related to service and repair fees - related parties |
|
|
18 |
|
|
|
20 |
|
Costs related to management and other fees |
|
|
11,788 |
|
|
|
12,208 |
|
Costs related to management and other fees – related medical
practices |
|
|
2,950 |
|
|
|
3,157 |
|
Research and development |
|
|
824 |
|
|
|
1,055 |
|
Selling, general and administrative |
|
|
10,704 |
|
|
|
8,458 |
|
Total Costs and Expenses |
|
|
33,012 |
|
|
|
32,690 |
|
Income From Operations |
|
|
9,132 |
|
|
|
10,507 |
|
Other Expenses |
|
|
(140 |
) |
|
|
— |
|
Interest Expense |
|
|
(38 |
) |
|
|
(40 |
) |
Investment Income |
|
|
187 |
|
|
|
287 |
|
Income Before Provision for Income Taxes and Noncontrolling
Interests |
|
|
9,141 |
|
|
|
10,754 |
|
Provision for Income Taxes |
|
|
(1,962 |
) |
|
|
(2,039 |
) |
Net Income |
|
|
7,179 |
|
|
|
8,715 |
|
Net Income - Noncontrolling Interests |
|
|
(1,560 |
) |
|
|
(2,313 |
) |
Net Income – Attributable to FONAR |
|
$ |
5,619 |
|
|
$ |
6,402 |
|
Net Income Available to Common Stockholders |
|
$ |
5,281 |
|
|
$ |
6,010 |
|
Net Income Available to Class A Non-Voting Preferred
Stockholders |
|
$ |
252 |
|
|
$ |
292 |
|
Net Income Available to Class C Common Stockholders |
|
$ |
86 |
|
|
$ |
100 |
|
Basic Net Income Per Common Share Available to Common
Stockholders |
|
$ |
0.82 |
|
|
$ |
0.93 |
|
Diluted Net Income Per Common Share Available to Common
Stockholders |
|
$ |
0.80 |
|
|
$ |
0.92 |
|
Basic and Diluted Income Per Share – Class C Common |
|
$ |
0.23 |
|
|
$ |
0.26 |
|
Weighted Average Basic Shares Outstanding – Common
Stockholders |
|
|
6,456 |
|
|
|
6,440 |
|
Weighted Average Diluted Shares Outstanding - Common
Stockholders |
|
|
6,584 |
|
|
|
6,568 |
|
Weighted Average Basic and Diluted Shares Outstanding – Class C
Common |
|
|
383 |
|
|
|
383 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts and shares
in thousands, except per share amounts)(UNAUDITED) |
|
|
|
|
|
FOR THE SIX MONTHSENDED DECEMBER 31, |
|
|
2020 |
|
2019 |
Cash Flows from Operating
Activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,179 |
|
|
$ |
8,715 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,009 |
|
|
|
2,003 |
|
Amortization on right-of-use assets |
|
|
1,922 |
|
|
|
1,656 |
|
Provision(Recovery) for bad debts |
|
|
2,825 |
|
|
|
(978 |
) |
Deferred income tax – net |
|
|
1,962 |
|
|
|
1,816 |
|
Compensatory element of stock issuances |
|
|
83 |
|
|
|
— |
|
Stock issued for costs and expenses |
|
|
1,941 |
|
|
|
1,990 |
|
Abandoned patents |
|
|
1 |
|
|
|
— |
|
(Increase) decrease in operating assets, net: |
|
|
|
|
|
|
|
|
Accounts, medical and management fee receivable(s) |
|
|
(5,549 |
) |
|
|
(4,300 |
) |
Notes receivable |
|
|
25 |
|
|
|
11 |
|
Costs and estimated earnings in excess of billings on uncompleted
contracts |
|
|
— |
|
|
|
372 |
|
Inventories |
|
|
(195 |
) |
|
|
47 |
|
Income tax receivable |
|
|
671 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
452 |
|
|
|
330 |
|
Other assets |
|
|
(1 |
) |
|
|
(45 |
|
Increase (decrease) in operating liabilities, net: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
233 |
|
|
|
(576 |
) |
Other current liabilities |
|
|
(2,748 |
) |
|
|
430 |
|
Operating lease liabilities |
|
|
(1,657 |
) |
|
|
(1,447 |
) |
Financing lease liabilities |
|
|
24 |
|
|
|
— |
|
Customer deposits |
|
|
378 |
|
|
|
28 |
|
Billings in excess of costs and estimated earnings on uncompleted
contracts |
|
|
— |
|
|
|
12 |
|
Other liabilities |
|
|
(3 |
) |
|
|
123 |
|
Net cash provided by operating
activities |
|
|
9,552 |
|
|
|
10,187 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(2,143 |
) |
|
|
(4,656 |
) |
Purchase of short term investment |
|
|
— |
|
|
|
(199 |
) |
Cost of patents |
|
|
(90 |
) |
|
|
(62 |
) |
Net cash used in investing activities |
|
|
(2,233 |
) |
|
|
(4,917 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Repayment of borrowings and capital lease obligations |
|
|
(35 |
) |
|
|
(24 |
) |
Proceeds from debt |
|
|
63 |
|
|
|
— |
|
Distributions to noncontrolling interests |
|
|
(3,570 |
) |
|
|
(3,735 |
) |
Net cash used in financing activities |
|
|
(3,542 |
) |
|
|
(3,759 |
) |
Net Increase in Cash and Cash Equivalents |
|
|
3,777 |
|
|
|
1,511 |
|
Cash and Cash Equivalents - Beginning of Period |
|
|
36,802 |
|
|
|
13,882 |
|
Cash and Cash Equivalents - End of Period |
|
$ |
40,579 |
|
|
$ |
15,393 |
|
Contact: Daniel Culver
Director of Communications
E-mail: investor@fonar.com
www.fonar.com
Phone: (631) 694-2929
Fax: (631) 390-1772
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