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Shares of FONAR Corporation FONR have lost 9.5% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 0.5% gain over the same time frame. Over the past month, the stock lost 4.5% versus the S&P 500’s 0.7% rise.
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Financial Performance
FONAR’s total revenues for the second quarter of fiscal 2025 ended Dec. 31, 2024, declined 1.7% to $24.9 million from $25.4 million in the prior-year quarter. For the six-month period ended Dec. 31, 2024, revenues decreased 2.6% to $49.9 million from $51.2 million in the year-ago period.
Income from operations dropped 50.2% to $2.4 million for the quarter from $4.9 million in the prior-year period. For the six-month period, income from operations declined 38.5% to $7 million from $11.5 million.
Net income also saw a significant drop, decreasing 52.3% to $2.2 million for the quarter from $4.6 million in the prior-year period. Over the six-month period, net income fell 37.8% to $6.2 million from $9.9 million. On a per-share basis, diluted net income per common share declined 46.3% to $0.29 for the quarter from $0.54 in the prior-year quarter and 33.9% to $0.74 for the six-month period from $1.12 a year ago.
Fonar Corporation Price, Consensus and EPS Surprise
Fonar Corporation price-consensus-eps-surprise-chart | Fonar Corporation Quote
Segment Performance
FONAR’s diagnostic imaging management subsidiary, Health Management Company of America (HMCA), remains the company’s primary revenue driver. MRI scan volume at HMCA-managed sites increased 7.4% to 79,207 scans during the six-month period from 73,776 scans for the six-month period ended Dec. 31, 2023, while scan volume at HMCA-owned sites decreased 4.4% to 26,961 scans from 28,214 scans for the six-month period ended Dec. 31, 2023.
Revenues from management and other fees, which make up the largest portion of FONAR’s revenues, were $12.2 million for the quarter, down 1% from $12.3 million a year ago. Patient fee revenues declined 3.4% year over year to $7.9 million from $8.2 million. Service and repair fees, another revenue contributor, remained nearly flat at $1.8 million.
Other Key Business Metrics
Operating expenses increased, with selling, general, and administrative (SG&A) costs rising 23.9% to $6.9 million for the quarter from $5.6 million in the year-ago period and 15.4% to $12.1 million over the six-month period from $10.5 million in the year-ago period. This increase was attributed to a significant reserve against accounts receivable related to American Transit Insurance Company, which is approaching insolvency, as well as costs associated with a new outside billing contract.