Fonar-FONR's Stock Down Despite Earnings, Revenues Uptick in Fiscal 2024

Core Viewpoint - FONAR Corporation reported solid financial results for fiscal 2024, with notable increases in earnings per share and net income, driven primarily by the HMCA segment's performance and an increase in MRI scan volume [1][9][11]. Revenue Summary - FONAR's total revenues for fiscal 2024 were $102.9 million, reflecting a 4.3% increase from$ 98.6 million in fiscal 2023 [2]. - The HMCA segment generated revenues of $94.6 million, up 4.6% from$ 90.4 million in the previous year, attributed to a 13.5% rise in patient fees [5]. - Revenues from the medical equipment segment remained stable at $8.3 million, with product sales and service revenues both increasing by 0.8% [3]. Segment Performance - Total MRI scan volume at HMCA-managed sites rose by 11.1% to 209,346 scans in fiscal 2024, with new MRI centers contributing to this growth [6]. - The fourth quarter saw a 3.3% increase in scan volume at HMCA-managed MRI centers, totaling 54,556 scans [7]. Operating Expenses - Selling, general, and administrative expenses decreased by 8.6% to$ 26.9 million due to improved management fee reserves [8]. - Research and development expenses increased by 10.7% to $1.7 million, focusing on upgrades for the Upright MRI scanner [8]. Profitability Metrics - Operating income for fiscal 2024 was$ 16.5 million, an increase of 11.8% from the previous year [9]. - Net income rose to $14.1 million, reflecting a 16.3% increase compared to fiscal 2023 [9]. Liquidity and Debt Management - FONAR ended fiscal 2024 with cash and cash equivalents of$ 56.5 million, up from $51.3 million at the end of fiscal 2023 [9]. - Total debt decreased to$ 113.9 million from $158.8 million year-over-year [9]. Future Outlook - Management plans to add high-field MRI machines to HMCA-managed sites, which is expected to further enhance revenue and scan volume in fiscal 2025 [11].