Fonar Corp. (FONR, Financial) filed Quarterly Report for the period ended 2008-12-31.
Fonar Corp. has a market cap of $7.19 million; its shares were traded at around $0.7699 with and P/S ratio of 0.97.
compared to the six month period ended December 31, 2007 decreased by 3.0% ($5.3
million compared to $5.4 million). Unrelated party service and repair fees
decreased by 5.7% ($4.6 million compared to $4.9 million) and related party
service and repair fees increased by 23% ($635,000 compared to $516,000).
For the first six months of fiscal 2009 the consolidated revenues decreased
by 6.6% to $18.1 from $19.4 million for the first six months of fiscal 2008
while the total costs and expenses decreased by 29.7% to $19.2 million for the
first six months of fiscal 2009 from $27.3 million for the first six months of
fiscal 2008. Our operating loss decreased from $8.0 million in the first six
months of fiscal 2008 to $1.1 million in the first six months of fiscal 2009.
The overall trends reflected in the results of operations for the first six
months of fiscal 2009 are a decrease in revenues from product sales, as compared
to the first six months of fiscal 2008 ($5.8 million for the first six months of
fiscal 2009 as compared to $6.6 million for the first six months of fiscal
2008), and a decrease in MRI equipment segment revenues relative to HMCA
revenues ($12.9 million or 71.1% from the MRI equipment segment as compared to
$5.2 million or 28.9% from HMCA, for the first six months of fiscal 2009, as
compared to $13.2 million or 68.2% from the MRI equipment segment and $6.2
million or 31.8%, from HMCA, for the first six months of fiscal 2008). In
addition, unrelated party sales constituted 100% of our medical equipment
product sales for the first six months of fiscal 2009 at $5.8 million and for
the first six months of fiscal 2008 at $6.6 million.
Cash used in operating activities for the first six months of fiscal 2009
was $3.6 million. Cash used in operating activities was attributable to a
decrease in customer advances of $1.4 million, a decrease in billings in excess
of costs and estimated earnings on uncompleted contracts of $1.9 million and an
increase in accounts, management fee and medical receivables of $1.1 million
offset by an increase in other current liabilities of $637,000 and the net
income of $331,000.
Total liabilities decreased by 6.9% to $36.6 million at December 31, 2008
from $39.3 million at June 30, 2008. We experienced an increase in long-term
debt and capital leases from $757,000 at June 30, 2008 to $780,000 at December
31, 2008 and an increase in accounts payable from $4.0 million at June 30, 2008
to $4.3 million at December 31, 2008, along with a decrease in billings in
excess of costs and estimated earnings on uncompleted contracts from $5.8
million at June 30, 2008 to $3.9 million at December 31, 2008, and a decrease in
customer advances from $14.3 million at June 30, 2008 to $12.8 million at
December 31, 2008. Unearned revenue on service contracts increased from $5.2
million at June 30, 2008 to $6.2 million at December 31, 2008.
Our working capital deficit decreased from $16.0 million as of June 30,
2008 to $14.8 million as of December 31, 2008. This resulted from decrease in
current liabilities ($38.0 million at June 30, 2008 as compared to $35.3 million
at December 31, 2008, particularly a decrease in customer advances of $1.4
million ($14.3 million at June 30, 2008 as compared to $12.8 million at December
31, 2008), and a decrease in billings in excess of costs and estimated earnings
on uncompleted contracts from $5.8 million at June 30, 2008 to $3.9 million at
December 31, 2008; notwithstanding a decrease in current assets ($22.0 million
at June 30, 2008 compared to $20.5 million at December 31, 2008) resulting
primarily from a decrease in management fee receivable of $1.2 million ($6.4
million at June 30, 2008 compared to $5.2 million at December 31, 2008) and a
decrease in current portion of notes receivable ($2.5 million at June 30, 2008
as compared to $500,000 at December 31, 2008), offset by an increase in accounts
receivable of $1.3 million ($5.2 million at June 30, 2008 as compared to $6.5
million at December 31, 2008) and an increase in inventories of approximately
$600,000 ($3.3 million at June 30, 2008 as compared to $3.9 million at December
31, 2008).
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Fonar Corp. has a market cap of $7.19 million; its shares were traded at around $0.7699 with and P/S ratio of 0.97.
Highlight of Business Operations:
Service revenues for the six month period ended December 31, 2008, ascompared to the six month period ended December 31, 2007 decreased by 3.0% ($5.3
million compared to $5.4 million). Unrelated party service and repair fees
decreased by 5.7% ($4.6 million compared to $4.9 million) and related party
service and repair fees increased by 23% ($635,000 compared to $516,000).
For the first six months of fiscal 2009 the consolidated revenues decreased
by 6.6% to $18.1 from $19.4 million for the first six months of fiscal 2008
while the total costs and expenses decreased by 29.7% to $19.2 million for the
first six months of fiscal 2009 from $27.3 million for the first six months of
fiscal 2008. Our operating loss decreased from $8.0 million in the first six
months of fiscal 2008 to $1.1 million in the first six months of fiscal 2009.
The overall trends reflected in the results of operations for the first six
months of fiscal 2009 are a decrease in revenues from product sales, as compared
to the first six months of fiscal 2008 ($5.8 million for the first six months of
fiscal 2009 as compared to $6.6 million for the first six months of fiscal
2008), and a decrease in MRI equipment segment revenues relative to HMCA
revenues ($12.9 million or 71.1% from the MRI equipment segment as compared to
$5.2 million or 28.9% from HMCA, for the first six months of fiscal 2009, as
compared to $13.2 million or 68.2% from the MRI equipment segment and $6.2
million or 31.8%, from HMCA, for the first six months of fiscal 2008). In
addition, unrelated party sales constituted 100% of our medical equipment
product sales for the first six months of fiscal 2009 at $5.8 million and for
the first six months of fiscal 2008 at $6.6 million.
Cash used in operating activities for the first six months of fiscal 2009
was $3.6 million. Cash used in operating activities was attributable to a
decrease in customer advances of $1.4 million, a decrease in billings in excess
of costs and estimated earnings on uncompleted contracts of $1.9 million and an
increase in accounts, management fee and medical receivables of $1.1 million
offset by an increase in other current liabilities of $637,000 and the net
income of $331,000.
Total liabilities decreased by 6.9% to $36.6 million at December 31, 2008
from $39.3 million at June 30, 2008. We experienced an increase in long-term
debt and capital leases from $757,000 at June 30, 2008 to $780,000 at December
31, 2008 and an increase in accounts payable from $4.0 million at June 30, 2008
to $4.3 million at December 31, 2008, along with a decrease in billings in
excess of costs and estimated earnings on uncompleted contracts from $5.8
million at June 30, 2008 to $3.9 million at December 31, 2008, and a decrease in
customer advances from $14.3 million at June 30, 2008 to $12.8 million at
December 31, 2008. Unearned revenue on service contracts increased from $5.2
million at June 30, 2008 to $6.2 million at December 31, 2008.
Our working capital deficit decreased from $16.0 million as of June 30,
2008 to $14.8 million as of December 31, 2008. This resulted from decrease in
current liabilities ($38.0 million at June 30, 2008 as compared to $35.3 million
at December 31, 2008, particularly a decrease in customer advances of $1.4
million ($14.3 million at June 30, 2008 as compared to $12.8 million at December
31, 2008), and a decrease in billings in excess of costs and estimated earnings
on uncompleted contracts from $5.8 million at June 30, 2008 to $3.9 million at
December 31, 2008; notwithstanding a decrease in current assets ($22.0 million
at June 30, 2008 compared to $20.5 million at December 31, 2008) resulting
primarily from a decrease in management fee receivable of $1.2 million ($6.4
million at June 30, 2008 compared to $5.2 million at December 31, 2008) and a
decrease in current portion of notes receivable ($2.5 million at June 30, 2008
as compared to $500,000 at December 31, 2008), offset by an increase in accounts
receivable of $1.3 million ($5.2 million at June 30, 2008 as compared to $6.5
million at December 31, 2008) and an increase in inventories of approximately
$600,000 ($3.3 million at June 30, 2008 as compared to $3.9 million at December
31, 2008).
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