Fonar Corporation (NASDAQ:FONR)

Fonar Corporation (NASDAQ:FONR) announced Q2 2024 results:

• Sales of $25.4 million vs $24.3 million in the prior year

• EPS of $0.54 vs $0.32 in the prior year

“I’m pleased with our current rate of growth. In the past, we have added MRI scanners to facilities when the demand for MRIs was approaching their scanning capacities, or where the introduction of high-field MRI technology significantly expanded the referring physician base. It’s been a very successful strategy, and so we will continue to pursue it. As always, we also seek to establish new locations or to acquire existing centers that will enhance our existing networks and increase their profitability. Currently, we manage 42 MRI scanners, 25 in New York and 17 in Florida. Fiscal 2024 looks very promising, and so I remain grateful for our management team and all of our employees.”

Alert Sent To Members 11/18/2013

Fonar  (NASDAQ:FONR) - FONR engages in the design, manufacture, sale, and service of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases.   In Friday’s email, we gave a brief history of why we started tracking FONR and that the company had reported strong first quarter 2014 results.  We stated we felt shares could hit $15.00.  The stock easily exceeded our target reaching a high of $18.08 in Friday’s trading session, up 69% from the prior day close and up 101% from our 10/15/2013 email where we stated “we think FONR is ready for a possible technical breakout as investors begin to dissect the company’s strong fourth quarter 2013 results ended in June.”

We initiated a trede in FONR Feb 22, 2011 at $2.35, which became more protracted as we continued to follow the story.

As of today, we have closed out our trade in FONR.

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First Quarter 2014 Results

• The Company's total revenues were $16.8 million for the quarter ended September 30, 2013 an increase of 77% one year earlier when total revenues were $9.5 million.
• Diluted income per common share available to Common Stockholders for the quarter ended September 30, 2013 was $0.37, as compared to $0.22 for the quarter ended September 30, 2012.

Raymond V. Damadian, M.D., president and chairman of Fonar Corporation, said: "We had understood that the acquisition of HDM would be a significant source of profitability. This has been the case and the Company's diluted earnings per share available for the common stockholder for the 1st quarter of Fiscal 2014 increased 68% to $0.37 when compared to one year earlier.

"There are more reasons why this acquisition makes a lot of sense," continued Dr. Damadian. "By combining the resources of HMCA and HDM, we will enjoy the benefits of economies of scale, shared administrative and technical expertise and capabilities, and joint marketing strategies. HMCA's 11 STAND-UP® MRIs together with HDM's 12 form a network of 23 FONAR weight-bearing MRI scanners, the largest in the world as compared to the conventional essentially weightless MRI.* Of course, we're not finished growing," said Dr. Damadian. "We will continue to pursue additional management contracts, primarily in New York and Florida."

"Our successful business model is made possible by the success of our current MRI scanner, the UPRIGHT® Multi-Position™ MRI," continued Dr. Damadian. "This scanner is extremely popular with patients who experience claustrophobia or can't lie down for long periods. However, patient comfort is only one side of this product. The much more compelling reason a patient would want to be scanned is to get the right diagnosis. This is the world's only scanner that can scan all body parts in their normal weight-bearing posture. It is essential to visualize the body in its normal weight-bearing positions in order to accurately diagnose the source of the patient's pain, so that the optimum treatment for the patient can be prescribed. In the weightless posture of the conventional recumbent MRI, it is impossible to accurately assess the patients' weight-bearing anatomic pathologies so they can be correctly treated. It is self-evident that if you can't see them you can't treat them. It is very common with the UPRIGHT® weight-bearing MRI to encounter disc herniations and spinal dislocations that were not visible in the conventional "weightless" recumbent MRI position.*"

"The Company is fortunate to have as its flagship product the FONAR UPRIGHT® Multi-Position™ MRI," continued Dr. Damadian. "This is truly a unique technology producing exquisite images in all positions of the body. It not only yields a whole new treasure of new medical applications in such calamitous medical categories as multiple sclerosis, and other dementia, but it also possesses the strong potential to provide fresh new insights into the debilitating chronic consequences of sports injuries, the current epidemic of automobile whiplash injuries, all spine injuries, and more diseases yet to be unearthed."

Fiscal 2013 Results

Fiscal 2013 net revenues increase 25% over 2012 to $49.1 million

Diluted Net Income Available to Common Shares for the Fiscal year ending June 30, 2013 was $1.34, which includes a partial reversal of the deferred tax valuation allowance of $2.5 million, or $0.41