-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BuQlPYUWlNZEFZtbSiOa6pICeSIlsIUeaBs40rThbd8higCiq/vcz6DrPnjb9Rxh s3/hNkmnE60trGqnSxI67g== 0000355019-04-000014.txt : 20040517 0000355019-04-000014.hdr.sgml : 20040517 20040517090905 ACCESSION NUMBER: 0000355019-04-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040517 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FONAR CORP CENTRAL INDEX KEY: 0000355019 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-SPECIALTY OUTPATIENT FACILITIES, NEC [8093] IRS NUMBER: 112464137 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10248 FILM NUMBER: 04809953 BUSINESS ADDRESS: STREET 1: 110 MARCUS DR CITY: MELVILLE STATE: NY ZIP: 11747 BUSINESS PHONE: 6316942929 MAIL ADDRESS: STREET 1: 110 MARCUS DRIVE CITY: MELVILLE STATE: NY ZIP: 11747 8-K 1 k8.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Act of 1934 Date of Report (Date of earliest event reported): May 17, 2004 FONAR CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 0-10248 11-2464137 - --------------- ---------------- ------------------- (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification No.) incorporation) 110 Marcus Drive Melville, New York 11747 (631) 694-2929 --------------------------------------------------- (Address, including zip code, and telephone number of registrant's principal executive office) Item 12. Results of Operations and Financial Condition On May 17, 2004 concurrently with the filing of our Form 10-Q for the fiscal quarter ended March 31, 2004, we issued a press release concerning the results of operations and financial condition of the company. The text of the press release is filed as an exhibit to this Form 8-K. Item 7. Financial Statements and Exhibits Financial Statements None Exhibits 99. Press Release dated May 17, 2004 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FONAR CORPORATION (Registrant) By: /s/ Raymond V. Damadian Raymond V. Damadian President Dated: May 17, 2004 EX-99 3 x99k8.txt FONAR CORPORATION FonarMRInews The MRI Specialist For Immediate Release An ISO 9001 Company Contact: Daniel Culver, 110 Marcus Drive Director of Communications Melville, NY 11742 David Terry, Senior V.P. Tel: 631/694-2929 email: invest @ fonar. com Fax: 631/390-9540 ================================================================================ FONAR CONTINUES TO SHOW INCREASES IN SCANNER SALES REVENUES; GROSS PROFIT MARGINS ON PRODUCT SALES INCREASE OVER SAME PERIODS FROM PRIOR YEAR First Three HMCA - Managed Stand-Up(TM) MRI Centers contribute $1.3 million in net operating income to HMCA for the first nine months of Fiscal 2004 MELVILLE, NEW YORK, May 17, 2004 - FONAR Corporation (NASDAQ-FONR), The MRI Specialist(TM), reported a net loss of $1.5 million on revenues of $19.4 million for the third quarter of fiscal 2004 as compared to a net loss of $6.3 million on revenues of $9.8 million for the third quarter of fiscal 2003. This represented a decline in our net loss of 76% and an improvement of 98% in our revenues. The Company reported a net loss of $8.0 million on revenues of $50.5 million for the nine-month period ended March 31, 2004, as compared to a net loss of $12.0 million ($11.7 million from continuing operations) on revenues of $39.0 million for the nine-month period ended March 31, 2003. Dr. Raymond Damadian, president and chairman of Fonar said, "I am very pleased with our progress. Revenues and net losses improved continuously from quarter to quarter during fiscal 2004: a net loss of $3.8 million on revenues of $13.3 million for the first quarter, a net loss of $2.6 million on revenues of $17.9 million for the second quarter and a net loss of $1.5 million on revenues of $19.4 million for the third quarter. These results are clear indicators that our business is achieving its goals." FONAR Corporation Total Revenues and Net Losses Chart for 1st 3 Quarters of Fiscal 2004 appears on Web site as part of this release. http://www.fonar.com/news/051704.htm (000,000s omitted) 1st Qtr 2nd Qtr 3rd Qtr Total Revenues $13.3 $17.9 $19.4 Net Losses $(3.8) $(2.6) $(1.5) High gross profit margins on product sales continued to increase: 38.4% for the first nine months of fiscal 2004 compared to 34.9% for the first nine months of fiscal 2003 and 36.9% for the third quarter of fiscal 2004 compared to 34.6% for the third quarter of fiscal 2003. We attribute these trends to the continuing growth of our MRI product sales, particularly our Stand-Up(TM) MRI scanners and the increased efficiencies resulting from our higher sales volumes. For the three month period ended March 31, 2004, as compared to the three month period ended March 31, 2003, overall revenues from MRI product sales increased 273.2% ($12.2 million compared to $3.3 million). Overall, for the third quarter of fiscal 2004, revenues for the medical equipment segment increased by 206.3% to $13.6 million from $4.4 million for the third quarter of fiscal 2003. For the nine month period ended March 31, 2004, as compared to the nine month period ended March 31, 2003, overall revenues from MRI product sales increased 60.2% ($28.8 million as compared to $18.0 million). Overall, revenues for the medical equipment segment increased by 51.6% to $33.0 million for the first nine months of fiscal 2004 as compared to $21.8 million for the first nine months of fiscal 2003. Orders for 30 Stand-Up(TM) MRI scanners were received during the first nine months of fiscal 2004 as compared to orders for 12 Stand-Up(TM) MRI scanners during the first nine months of fiscal 2003, representing an increase in orders of 150%. The total costs and expenses for the Company, however, increased by only 16.1% to $58.2 million for the first nine months of fiscal 2004 from $50.1 million for the first nine months of fiscal 2003 (as compared to a 29.6% increase in revenues) and by only 32.5% to $20.8 million for the third quarter of fiscal 2004 from $15.7 million for the third quarter of fiscal 2003 (as compared to a 98% increase in revenues). In the aggregate, cash, cash equivalents and marketable securities increased from $15.2 million at June 30, 2003 to $18.4 million at March 31, 2004. Working capital approximated $20.5 million as of March 31, 2004, as compared to working capital of $13.1 million as of June 30, 2003, increasing by 57.4%. HMCA revenues increased in the third quarter of fiscal 2004, by 7.6% to $5.7 million from $5.3 million for the third quarter of fiscal 2003 and in the first nine months of fiscal 2004 by 1.9% to $17.6 million from $17.3 million for the first nine months of 2003. This resulted in large measure from our continuing program of replacing older scanners at the sites we manage with Stand-Up(TM) MRI scanners. Dr. Damadian said, "We're pleased at the results of our efforts to upgrade the MRI facilities. The first three of HMCA's Stand-Up(TM) MRI upgrades are working well contributing $1.3 million in operating income to HMCA for the first nine months of fiscal 2004 as compared to $909,000 for the first six months of fiscal 2004. In addition we completed the installation of a fourth Stand-Up(TM) MRI scanner in March, 2004 in Boca Raton, Florida. We are planning to open two new sites with Stand-Up(TM) MRI scanners within the next 12 months, which would bring the total number of facilities with Stand-Up(TM) MRI scanners we manage to six." The Company believes that the existing trends in both our medical equipment division and in the upgrading and streamlining of HMCA's operations, absent unforeseen circumstances, should result in improved operating results. Factors beyond our control, such as the timing and rate of market growth which depend on economic conditions, make it impossible, however, to forecast when or if Fonar will become profitable, but we believe we are pursuing the correct policies to bring us to the point where we should be profitable and that those policies should prove successful in moving the Company in that direction. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THREE MONTHS ENDED MARCH 31, 2004 2003 ------------ ------------ Revenues $19,353,000 $9,775,000 Loss From ============ ============ Continuing Operations $(1,484,000) $(6,256,000) Loss - Discontinued Operations - $(70,000) ------------ ------------ Net Loss $(1,484,000) $(6,326,000) ============ ============ Basic & Diluted Loss per Share - Continuing Operations $(0.02) $(0.08) Basic & Diluted Loss per Share - Discontinued Operations - - ------------ ------------ Basic & Diluted Net Loss per Share $(0.02) $(0.08) ============ ============ FOR NINE MONTHS ENDED MARCH 31, 2004 2003 ------------ ------------ Revenues $50,544,000 $39,006,000 Loss From ============ ============ Continuing Operations $(7,957,000) $(11,657,000) Loss - Discontinued Operations - $(295,000) ------------ ------------ Net Loss $(7,957,000) $(11,952,000) ============ ============ Basic & Diluted Loss per Share - Continuing Operations $(0.09) $(0.16) Basic & Diluted Loss per Share - Discontinued Operations - - ------------ ------------ Basic & Diluted Net Loss per Share $(0.09) $(0.16) ============ ============ - -------------------------------------------------------------------------------- MRI Specialist, Stand-Up, Upright, Position, PMRI and The Proof is in the Picture are trademarks of FONAR Corporation. Be sure to visit FONAR's Web site for Company product and investor information: www.fonar.com 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. ### -----END PRIVACY-ENHANCED MESSAGE-----