Fonar Corp. (FONR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Fonar Corp. has a market cap of $17.3 million; its shares were traded at around $1.52 with and P/S ratio of 3. FONR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
million from $2.5 million for the third quarter of fiscal 2009, primarily due to
increased revenues from our Florida locations. HMCA revenues for the first nine
months of fiscal 2010, increased slightly by 1.6% from $7.7 million in the first
nine months of fiscal 2009 to $7.8 million in the first nine months of fiscal
2010. We now manage ten sites, nine of which are equipped with FONAR UPRIGHT(R)
MRI scanners. HMCA experienced an operating loss of $1.4 million for the first
nine months of fiscal 2010 compared to operating loss of $593,000 for the first
nine months of fiscal 2009. The greater operating loss was due primarily to an
increase in the marketing personnel for the sites managed by HMCA and an
increase in selling, general and administrative expenses.
For the first nine months of fiscal 2010 the consolidated revenues decreased by
20.8% to $23.2 million from $29.3 million for the first nine months of fiscal
2009 while the total costs and expenses decreased by only 12.9% to $25.9 million
for the first nine months of fiscal 2010 from $29.7 million for the first nine
months of fiscal 2009. Our operating loss increased from $386,000 in the first
nine months of fiscal 2009 to $2.7 million in the first nine months of fiscal
2010.
The overall trends reflected in the results of operations for the first nine
months of fiscal 2010 are an increase in revenues from service and repair fees,
as compared to the first nine months of fiscal 2009 ($8.3 million for the first
nine months of fiscal 2010 as compared to $7.9 million for the first nine months
of fiscal 2009), and a decrease in MRI equipment segment revenues both
absolutely ($15.4 million as compared to $21.6 million) and relative to HMCA
revenues ($15.4 million or 66.3% from the MRI equipment segment as compared to
$7.8 million or 33.7% from HMCA, for the first nine months of fiscal 2010, as
compared to $21.6 million or 73.8% from the MRI equipment segment and $7.7
million or 26.2%, from HMCA, for the first nine months of fiscal 2009).
Unrelated party sales constituted 100% of our medical equipment product sales
for both the first nine months of fiscal 2010 and of fiscal 2009.
Cash used in operating activities for the first nine months of fiscal 2010 was
$1.7 million. Cash used in operating activities was attributable to a decrease
of inventories of $241,000, an increase in billings in excess of costs and
estimated earnings on uncompleted contracts of $1.0 million and a decrease in
costs and estimated earnings in excess of billings on uncompleted contracts of
$464,000, an increase in other current liabilities of $212,000, offset by a
decrease in customer advances of $3.0 million and the net loss of $3.0 million.
Total liabilities decreased by 7.3% to $29.0 million at March 31, 2010 from
$31.3 million at June 30, 2009. We experienced an increase in long-term debt and
capital leases from $759,000 at June 30, 2009 to $1.2 million at March 31, 2010
and a decrease in accounts payable from $3.7 million at June 30, 2009 to $3.5
million at March 31, 2010, along with an increase in billings in excess of costs
and estimated earnings on uncompleted contracts from $2.0 million at June 30,
2009 to $3.0 million at March 31, 2010, and a decrease in customer advances from
$9.2 million at June 30, 2009 to $6.1 million at March 31, 2010. Unearned
revenue on service contracts increased from $5.5 million at June 30, 2009 to
$5.8 million at March 31, 2010.
Our working capital deficit remained constant at $10.8 million at March 31, 2010
and June 30, 2009. This resulted from a decrease in current assets ($18.3
million at June 30, 2009 as compared to $15.7 million at March 31, 2010)
particularly a decrease in the current portion of notes receivable of $432,000
($518,000 at June 30, 2009 as compared to $86,000 at March 31, 2010), and a
decrease in management fee receivable of $704,000 ($5.5 million at June 30, 2009
as compared to $4.8 million at March 31, 2010) along with a decrease in current
liabilities ($29.1 million at June 30, 2009 as compared to $26.5 million at
March 31, 2010) resulting primarily from a decrease of approximately $179,000 in
the current portion of accounts payable ($3.5 million at June 30, 2009 as
compared to $3.3 million at March 31, 2010) and a decrease of $3.1 million in
customer advances ($9.2 million at June 30, 2009 as compared to $6.1 million at
March 31, 2010).
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Fonar Corp. has a market cap of $17.3 million; its shares were traded at around $1.52 with and P/S ratio of 3. FONR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
HMCA revenues increased in the third quarter of fiscal 2010 by 10.0% to $2.7million from $2.5 million for the third quarter of fiscal 2009, primarily due to
increased revenues from our Florida locations. HMCA revenues for the first nine
months of fiscal 2010, increased slightly by 1.6% from $7.7 million in the first
nine months of fiscal 2009 to $7.8 million in the first nine months of fiscal
2010. We now manage ten sites, nine of which are equipped with FONAR UPRIGHT(R)
MRI scanners. HMCA experienced an operating loss of $1.4 million for the first
nine months of fiscal 2010 compared to operating loss of $593,000 for the first
nine months of fiscal 2009. The greater operating loss was due primarily to an
increase in the marketing personnel for the sites managed by HMCA and an
increase in selling, general and administrative expenses.
For the first nine months of fiscal 2010 the consolidated revenues decreased by
20.8% to $23.2 million from $29.3 million for the first nine months of fiscal
2009 while the total costs and expenses decreased by only 12.9% to $25.9 million
for the first nine months of fiscal 2010 from $29.7 million for the first nine
months of fiscal 2009. Our operating loss increased from $386,000 in the first
nine months of fiscal 2009 to $2.7 million in the first nine months of fiscal
2010.
The overall trends reflected in the results of operations for the first nine
months of fiscal 2010 are an increase in revenues from service and repair fees,
as compared to the first nine months of fiscal 2009 ($8.3 million for the first
nine months of fiscal 2010 as compared to $7.9 million for the first nine months
of fiscal 2009), and a decrease in MRI equipment segment revenues both
absolutely ($15.4 million as compared to $21.6 million) and relative to HMCA
revenues ($15.4 million or 66.3% from the MRI equipment segment as compared to
$7.8 million or 33.7% from HMCA, for the first nine months of fiscal 2010, as
compared to $21.6 million or 73.8% from the MRI equipment segment and $7.7
million or 26.2%, from HMCA, for the first nine months of fiscal 2009).
Unrelated party sales constituted 100% of our medical equipment product sales
for both the first nine months of fiscal 2010 and of fiscal 2009.
Cash used in operating activities for the first nine months of fiscal 2010 was
$1.7 million. Cash used in operating activities was attributable to a decrease
of inventories of $241,000, an increase in billings in excess of costs and
estimated earnings on uncompleted contracts of $1.0 million and a decrease in
costs and estimated earnings in excess of billings on uncompleted contracts of
$464,000, an increase in other current liabilities of $212,000, offset by a
decrease in customer advances of $3.0 million and the net loss of $3.0 million.
Total liabilities decreased by 7.3% to $29.0 million at March 31, 2010 from
$31.3 million at June 30, 2009. We experienced an increase in long-term debt and
capital leases from $759,000 at June 30, 2009 to $1.2 million at March 31, 2010
and a decrease in accounts payable from $3.7 million at June 30, 2009 to $3.5
million at March 31, 2010, along with an increase in billings in excess of costs
and estimated earnings on uncompleted contracts from $2.0 million at June 30,
2009 to $3.0 million at March 31, 2010, and a decrease in customer advances from
$9.2 million at June 30, 2009 to $6.1 million at March 31, 2010. Unearned
revenue on service contracts increased from $5.5 million at June 30, 2009 to
$5.8 million at March 31, 2010.
Our working capital deficit remained constant at $10.8 million at March 31, 2010
and June 30, 2009. This resulted from a decrease in current assets ($18.3
million at June 30, 2009 as compared to $15.7 million at March 31, 2010)
particularly a decrease in the current portion of notes receivable of $432,000
($518,000 at June 30, 2009 as compared to $86,000 at March 31, 2010), and a
decrease in management fee receivable of $704,000 ($5.5 million at June 30, 2009
as compared to $4.8 million at March 31, 2010) along with a decrease in current
liabilities ($29.1 million at June 30, 2009 as compared to $26.5 million at
March 31, 2010) resulting primarily from a decrease of approximately $179,000 in
the current portion of accounts payable ($3.5 million at June 30, 2009 as
compared to $3.3 million at March 31, 2010) and a decrease of $3.1 million in
customer advances ($9.2 million at June 30, 2009 as compared to $6.1 million at
March 31, 2010).
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