-----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, QGMYh3hBoRYuetr4Ks0j5WN84tka6MWdWwV9VRkQMxYPem0oKXyH9Q1AAeVkIX5E SScVhPhl47imi+Aif+oqvA== 0000355019-03-000021.txt : 20031006 0000355019-03-000021.hdr.sgml : 20031006 20031006172657 ACCESSION NUMBER: 0000355019-03-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030630 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031006 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: 03930245 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 k8k.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): September 29, 2003 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 September 29, 2003, prior to the filing of our Form 10-K for the fiscal year ended June 30, 2003, 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 September 29, 2003 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/ David B. Terry David B. Terry Vice President and Secretary Dated: October 6, 2003 EX-99 3 x99.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, VP, Secretary Tel: 631/694-2929 FONARinvestor @ fonar. com Fax: 631/390-9540 ================================================================================ FONAR IMPROVES CASH POSITION 16% AND REVENUES 23% IN FISCAL 2003; First Managed Stand-Up MRI Center Nets $1.1 Million in Operating Income MELVILLE, NEW YORK, September 29, 2003 - FONAR Corporation, The MRI Specialist(TM), reported today a net loss of $15.0 million on revenues of $52.9 million for fiscal 2003, as compared to a net loss of $22.9 million on revenues of $43.2 million for fiscal 2002. This represents an increase of 23% in revenues and a decrease in the net loss of 35% from fiscal 2002 to fiscal 2003. Most significantly, revenues attributable to the Company's medical equipment segment increased by 85% to $30.0 million in fiscal 2003 from $16.2 million in fiscal 2002. Revenues from product sales more than doubled, increasing by 115% from $11.6 million in fiscal 2002 to $24.9 million in fiscal 2003, attributable primarily to the increase in scanner sales revenues for the Company's Stand-Up(TM) MRI from $11.1 million to $24.3 million. In addition, the Company's gross profit on product sales improved significantly from 28% in fiscal 2002 to 35.6% in fiscal 2003. The Company's backlog of unfilled orders at July 1, 2003 was approximately $26.8 million, as compared to $25.5 million at July 1, 2002. Confirming the Company's expectations of increased demand for its scanners, product sales to unrelated parties more than tripled, increasing by 228% in fiscal 2003 from $5.4 million in fiscal 2002 to $17.7 million in fiscal 2003. Product sales to related parties increased 17.7% in fiscal 2003 from $6.2 million in fiscal 2002 to $7.3 million in fiscal 2003. Revenues attributable to the Company's physician and diagnostic services management segment, Health Management Corporation of America, ("HMCA"), however, decreased by 15.1% to $22.9 million in fiscal 2003 from $27.0 million in fiscal 2002, reflecting the closing of certain MRI facilities and other facilities and a decline in MRI scan volume at certain MRI facilities prior to the installation of Stand-Up(TM) MRI's. HMCA had an operating loss of $3.8 million for fiscal 2003. However, HMCA now manages three MRI facilities with Stand-Up(TM) MRI scanners, one of which, located in Islandia, New York, produced $1.1 million in operating income for HMCA, for the year ended June 30, 2003. HMCA plans to upgrade additional site locations as well, and has leased premises in Boca Raton, Florida for a Stand-Up(TM) MRI to replace the existing MRI facility in Deerfield Beach, Florida. The Company's consolidated operating loss increased, however, by 5.3% to $15.1 million for fiscal 2003 as compared to an operating loss of $14.4 million for fiscal 2002. Of the operating loss, however, approximately $800,000 resulted from the writing down of the value (impairment) of the management agreement with an unprofitable physical rehabilitation and therapy facility which HMCA closed in fiscal 2003. In addition, HMCA discontinued its operation of primary medical care practices in fiscal 2003 when it sold A&A Services, Inc., its subsidiary which managed these practices. As a result of the sale, the Company recognized a net gain from discontinued operations of $194,000 in fiscal 2003, as compared to a net loss from discontinued operations of $5.9 million in fiscal 2002. The Company's cash, cash equivalents and marketable securities increased by 16% to $15.2 million at June 30, 2003 from $13.1 at June 30, 2002. Raymond Damadian, president and chairman of FONAR, said, "The Company showed several important developments in Fiscal 2003: Revenues from our Stand-Up(TM) MRI more than doubled and cash increased. We disposed of unprofitable HMCA-managed physician practices, and now have three HMCA-managed Stand-Up(TM) MRI sites in operation, positioning HMCA for a much improved year. Given the marketplace acceptance of the FONAR Stand-Up(TM) MRI, we expect next year to be a very good one." CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Fiscal 2003 Fiscal 2002 ----------- ------------ Revenues $52,892,000 $43,161,000 Net Loss From Continuing Operations (15,201,000) (16,956,000) Net Gain (Loss) - Discontinued Operations 195,000 (5,926,000) ---------- ---------- Net Loss $(15,006,000) $(22,882,000) ========== ========== Basic & Diluted Net Loss/Share Continuing Operations (0.20) (0.27) Basic & Diluted Net Loss/Share Discontinued Operations (0.09) ---------- ---------- Basic & Diluted Net Loss/Share (0.20) (0.36) ========== ========== - -------------------------------------------------------------------------------- MRI Specialist, Stand-Up, Upright, Position Imaging and PMRI 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-----