Fonar(US:FONR)2023-11-13 16:00Financial Performance - For the first quarter of fiscal 2024, the company reported a net income of $5.4 million on revenues of $25.8 million, compared to a net income of $2.7 million on revenues of $23.2 million for the same period in fiscal 2023, representing an increase in revenue of 11.4%[82][106] - Consolidated operating income rose to $6.6 million in the first quarter of fiscal 2024, up from $3.9 million in the first quarter of fiscal 2023, while total costs and expenses remained constant at $19.3 million[84][106] - Revenues from the diagnostic facilities management segment increased by 11.6% to $23.8 million in the first quarter of fiscal 2024, accounting for 92.0% of total revenues[100][110] - The operating income for the diagnostic facilities management segment increased to $7.3 million in the first quarter of fiscal 2024, compared to $4.7 million in the first quarter of fiscal 2023[102] Revenue Sources - Patient fee revenue increased by $2.6 million, from $6.1 million in the first quarter of fiscal 2023 to $8.7 million in the first quarter of fiscal 2024[83] - Foreign revenues increased by 39.4%, from approximately $99,000 in the first quarter of fiscal 2023 to approximately $138,000 in the first quarter of fiscal 2024[96] Operational Metrics - The number of scans performed increased to 50,744 in the first quarter of fiscal 2024 from 44,471 in the first quarter of fiscal 2023, attributed to the opening of new facilities and a return to full operating schedules[90][102] Expenses - Research and development expenses increased by 33.8% to $467,000 in the first quarter of fiscal 2024 from $349,000 in the first quarter of fiscal 2023[108] - Selling, general and administrative expenses decreased to $4.9 million in the first quarter of fiscal 2024 from $6.3 million in the first quarter of fiscal 2023, primarily due to reduced reserves on management fees[107] Cash Flow and Liquidity - Cash provided by operating activities for Q1 fiscal 2024 was $2.6 million, driven by net income of $5.4 million and depreciation of $1.2 million[118] - Cash used in investing activities for Q1 fiscal 2024 was $79,000, primarily for patent costs and property and equipment purchases[119] - Cash used in financing activities for Q1 fiscal 2024 was $2.1 million, including $714,000 for treasury stock purchases and $1.4 million in distributions to non-controlling interests[120] - Cash and cash equivalents increased slightly from $51.3 million at June 30, 2023, to $51.7 million at September 30, 2023[117] Balance Sheet - Total liabilities decreased by 4.6% to $47.5 million as of September 30, 2023, down from $49.8 million at June 30, 2023[121] - "Other" current liabilities decreased by 26.8% to $4.0 million at September 30, 2023, compared to $5.4 million at June 30, 2023[121] - The current portion of service contract liabilities increased by 5.0% to $4.0 million at September 30, 2023, compared to $3.8 million at June 30, 2023[121] - Customer deposits increased from $602,000 at June 30, 2023, to $623,000 at September 30, 2023[121] - Working capital increased to $114.9 million at September 30, 2023, up from $110.0 million at June 30, 2023[123] Strategic Initiatives - Fonar has entered into an agreement with AIRS Medical to install the SwiftMR™ product on all Fonar Upright® scanners, enhancing image quality through AI technology[129] - The company believes its business plan has supported profitability for nine consecutive fiscal years and through Q1 fiscal 2024[131]