On September 27, 2024, Fonar Corp (FONR, Financial) released its 8-K filing detailing the financial results for the fiscal year ended June 30, 2024. Fonar Corp, a pioneer in the MRI industry, designs, manufactures, sells, and services MRI scanners and manages diagnostic imaging centers through its subsidiary, Health Management Company of America (HMCA).
Financial Performance Overview
Fonar Corp (FONR, Financial) reported a 4% increase in total revenues, reaching $102.9 million for the fiscal year ended June 30, 2024, compared to $98.6 million in the previous fiscal year. This growth was driven primarily by a 5% increase in revenues from the management of diagnostic imaging centers, which totaled $94.6 million.
Total costs and expenses rose by 3% to $86.3 million, up from $83.9 million in the prior year. Despite the increase in costs, income from operations improved by 12% to $16.5 million, compared to $14.8 million in fiscal 2023. Net income saw a significant rise of 16%, amounting to $14.1 million, up from $12.1 million the previous year. Diluted net income per common share also increased by 16% to $1.53.
Key Financial Metrics
Fonar Corp (FONR, Financial) demonstrated strong financial health with a 10% increase in total cash and cash equivalents and short-term investments, which stood at $56.5 million as of June 30, 2024. Total assets grew to $214.2 million, up from $200.6 million in the previous year. However, total liabilities also increased by 15% to $57.5 million, primarily due to higher operating lease liabilities and increased federal and state income taxes payable.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues - Net | $102.9 million | $98.6 million |
| Total Costs and Expenses | $86.3 million | $83.9 million |
| Income from Operations | $16.5 million | $14.8 million |
| Net Income | $14.1 million | $12.1 million |
| Diluted Net Income per Common Share | $1.53 | $1.32 |
Operational Highlights
Fonar Corp (FONR, Financial) continues to expand its diagnostic imaging capabilities. The total scan volume at HMCA-managed MRI centers increased by 11.1% to 209,346 scans in fiscal 2024. This growth was partly attributed to the opening of new MRI centers and the implementation of SwiftMRâ„¢, an AI product that enhances MRI image quality and reduces exam times.
"The total fourth-quarter scan volume at HMCA-managed MRI centers was 54,556, which was 3.3% higher than that of the previous quarter (52,800), and the third of three consecutive quarterly scan-volume records," said Timothy Damadian, president and CEO of FONAR.
Balance Sheet and Cash Flow
Fonar Corp (FONR, Financial) reported a 10% increase in total cash and cash equivalents and short-term investments, reaching $56.5 million as of June 30, 2024. Total assets grew to $214.2 million, while total liabilities increased to $57.5 million. The company's current ratio stood at 7.9, indicating strong liquidity. Operating cash flow was $14.1 million, slightly down from $14.5 million in the previous year.
Stockholders' Equity
Total stockholders' equity increased to $156.8 million, up from $150.8 million in the previous year. The net book value per common share was $24.78 as of June 30, 2024.
Conclusion
Fonar Corp (FONR, Financial) has shown robust financial performance in fiscal 2024, with significant growth in revenues and net income. The company's strategic expansion and technological advancements in MRI imaging have contributed to its success. However, the increase in liabilities and operating costs presents challenges that need to be managed carefully. For more detailed insights, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Fonar Corp for further details.
