FONAR Corporation reported earnings per share of $1.53 in fiscal 2024, marking a 15.9% increase from the previous fiscal period in 2023.
FONR’s Revenue Overview
In fiscal 2024, FONAR’s revenues reached $102.9 million, reflecting a 4.3% growth from $98.6 million in the same period in 2023.
The company’s stock experienced a minor decline of nearly 0.3% in pre-market trading activities today.
FONAR’s Business Segment Insight
FONAR’s revenues come from two primary segments – Medical Equipment and Physician Management and Diagnostic Services (HMCA).
In fiscal 2024, revenues from the medical equipment segment remained stable at $8.3 million, with product sales revenues increasing by 0.8% and service revenues by the same margin.
Lower demand for MRI products due to decreased reimbursement rates led to a decline in sales volume and service revenues as older scanners phased out and fewer new scanners entered service contracts.
The HMCA segment saw an increase in revenues to $94.6 million in fiscal 2024, up by 4.6% driven by enhanced patient fees and management revenue.
Total MRI scan volume at HMCA-managed sites surged by 11.1% to 209,346 scans in fiscal 2024, with notable contributions from new MRI center openings.
Despite the uptick in revenues, lower reimbursement rates impacted MRI product sales negatively, affecting performance for the fiscal year.
FONR’s Cost Analysis
Selling, general, and administrative expenses decreased by 8.6% to $26.9 million by the close of fiscal 2024 due to improved management fee reserves and increased scan volumes compared to fiscal 2023.
Research and development expenses rose by 10.7% in fiscal 2024 to $1.7 million, supporting ongoing upgrades for the Upright MRI scanner.
FONAR’s Financial Performance
FONAR generated an operating income of $16.5 million in fiscal 2024, reflecting an 11.8% increase from the previous fiscal year.
Net income for fiscal 2024 stood at $14.1 million, a rise of 16.3% compared to the prior fiscal year.
FONR’s Financial Health and Debt Management
By the end of fiscal 2024, FONAR held cash and short-term investments worth $56.5 million, up from $51.3 million in fiscal 2023, while total debt declined to $113.9 million from $158.8 million in the previous year.
Cumulative net cash from operating activities in fiscal 2024 was $14.1 million, a slight decrease from $14.5 million in the prior year.
Our Perspective
FONAR’s fiscal 2024 performance boasted solid top and bottom-line results, with promising revenue growth and MRI scan volume upticks from the HMCA segment.
Management’s strategic expansions in MRI services in Florida and New York signal optimism for future growth.
However, challenges relating to lower reimbursement rates impacting MRI product demand pose concerns despite the company’s overall positive performance.