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FONAR Corporation FONR reported earnings per share of $1.53 in fiscal 2024, which increased 15.9% from the comparable fiscal 2023 period.
FONR’s Revenues in Detail
FONAR registered revenues of $102.9 million in fiscal 2024, up 4.3% from $98.6 million in the comparable fiscal 2023 period.
Shares of this company lost nearly 0.3% in pre-market trading today.
FONAR’s Segment Details
FONAR derives revenues from two segments — Medical Equipment and Physician Management and Diagnostic Services (HMCA).
For fiscal 2024, revenues attributable to the medical equipment segment remained constant at $8.3 million compared with fiscal 2023, with product sales revenues increasing 0.8% to $0.7 million in fiscal 2024. Service revenues increased 0.8% to $7.6 million in fiscal 2024.
Lower reimbursement rates have reduced the demand for MRI products, resulting in lower sales volumes. As a result of fewer sales, service revenues have decreased since older scanners are taken out of service, and there are fewer new scanners available to sign service contracts.
Revenues attributable to the HMCA segment increased to $94.6 million in fiscal 2024, up 4.6% from $90.4 million in fiscal 2023. The increase resulted from a 13.5% increase in patient fees (net of contractual allowances and discounts) from patient and third-party payers recognized by six of the facilities in Florida. Management and other fees increased 0.2% year over year to $60.7 million.
Total MRI scan volume at the HMCA-managed sites increased 11.1% to 209,346 scans in fiscal 2024 from 188,348 in fiscal 2023. Per management, the opening of a new Stand-Up MRI center in Casselberry, FL and another in the Bronx, NY, accounted for 20% of the increase in total scan volume in fiscal 2024. Management also stated that another major reason for the increase in scan volume at HMCA-managed sites in fiscal 2024 was the employment of SwiftMR, an artificial intelligence product of AIRS Medical.
For the fiscal fourth quarter, scan volume at HMCA-managed MRI centers was 54,556, up 3.3% from 52,800 in the previous quarter.
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FONR’s Operating Expenses Analysis
Selling, general and administrative expenses at the end of fiscal 2024 declined 8.6% to $26.9 million due to less reserves on management fees and other receivables due to increased scan volume as compared to fiscal 2023.
At the end of fiscal 2024, research and development expenses increased 10.7% to $1.7 million. The expenses for fiscal 2024 represented continued research and development of various upgrades for the Upright MRI scanner.