Fonar Corp (FONR, Financial), the inventor of MR Scanning, announced its fiscal 2023 results on September 28, 2023. The company's primary source of income is its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA). Despite facing challenges such as an acute shortage of MRI technologists and the ongoing effects of the COVID-19 pandemic, the company managed to increase its total revenues by 1% to $98.6 million for the fiscal year ended June 30, 2023, compared to $97.6 million for the fiscal year ended June 30, 2022.
Financial Performance
However, Fonar Corp (FONR, Financial) also reported an increase in total costs and expenses by 11% to $83.9 million, leading to a decrease in income from operations by 33% to $14.8 million. Net income also decreased by 30% to $12.1 million. Diluted net income per common share available to common shareholders decreased by 25% to $1.32.
Balance Sheet and Cash Flow
On the balance sheet, total assets at June 30, 2023, were $200.6 million, a slight increase from $199.3 million at June 30, 2022. Total liabilities decreased to $49.8 million from $53.1 million over the same period. The company's cash and cash equivalents and short-term investments increased by 5% to $51.3 million. Operating cash flow was $14.5 million for the fiscal year ended June 30, 2023, compared to $15.3 million for the fiscal year ended June 30, 2022.
Management Commentary
Timothy Damadian, President and CEO of FONAR, said: “For the most part, the effects of the pandemic are behind us. The scan volume of 188,348 at the HMCA-managed sites in Fiscal 2023 was 13.0% higher than that achieved in Fiscal 2020 (166,698), when COVID-19 first hit our shores. I am grateful that we have maintained positive trends in both revenue and profit over the course of some very challenging years.”
Stock Repurchase Plan
As part of its stock repurchase plan announced on September 13, 2022, the company repurchased 103,148 shares at a cost of $1,759,457 as of June 30, 2023.
Looking Forward
Despite the challenges, Fonar Corp (FONR, Financial) continues to innovate, focusing on research to quantify cerebrospinal fluid (CSF) flow and its role in neurodegenerative diseases. The company also expanded its network of HMCA-managed sites in New York in July 2023.
