FONR today posted earnings in Q2 2016.
Highlights from the Q2 reports are:
1. Revenue was record $18.4 or up $1.3M 8%.year on year. product sales was $0.7M, but most important gross margin on product sales was 24%. A very important change from previous quarters gross margins between -5% to +5%.
2. Gross margin on revenue excluded product sales in first 6 month of fiscal 2016 was 47.3% compared to 45.7% in the 12 month of fiscal 2015.
3. SG&A was $4.1M or up $0.3M year on year and qoq. Explanation might be cost on "merger" January 1 2016.
4. Provision for bad debts decreased $0.7M year on year and qoq.
5. The purchase of ownership in subsidiaries improve net income controlling interests and EPS. Net income - non controlling interests year on year dropped $0.2M from $0.8m to $0.6M as net income increased $0.9M. Net income - non controlling intersts was unchanged $0.6M qoq as net income incredsed $0.6m qoq.
6. Cash flow has improved to $13M or more than 50% of the total liabilities.
7. Book value per diluted share $7.24. My estimate on EPS fiscal 2016 is up from $2.3 to $2.5. Fiscal 2016 EPS estimate exclude tax benefit $2.0. My estimate on EPS the next 24 month $4.75-5.25. Book value per diluted share Dec 2017 $12-12.5.
My 2 year target on FONR is $25-28 up from my previous target of $25. Trading at a PE of 10-11. (PE exclude tax benefit 12.5-14).
The new CEO is great news as the next generation in management is in place. Tim Dimidian is experienced and has been in the industry more than 10 years. The next step is to renew the board by younger board members.
More cash and profit rolls in. New quarterly results are excellent.
It is great to see FONR hit record revenue and to have record profits. And we have record shareholder equity. Fonar is on the cutting edge of technology, developing and running things that no other company has. This company is going to bring in over $13 million in net income for the year, yet their enterprise value is only $79 million. Intrinsically it is worth $130 million. That would put FONR over $22 per share.
Sentiment: Strong Buy
The Dr thinks he invented the MRI...and he admittedly was an important contributor to the magnetic imagining industry. Feels he should have got the Nobel. Can't quite get that out of his system. Has nothing to do with the company now. they make money and when the old fart dies the company will really take off. I say buy! I own a lot and have for 30 years.
Diluted Net Income Per Common Share Available to Common Stockholders increased 33% to $0.53 per share for Fiscal 2016 2nd Quarter versus the same period a year earlier.
Cash and cash equivalents increased 37% to $13.0 million at December 31, 2015, from $9.5 million at June 30, 2015.
Net Revenues for Fiscal 2016 2nd Quarter increased 8% to $18.4 million versus the same period a year earlier.
Net Income for Fiscal 2016 2nd Quarter increased 19% to $4.1 million versus the same period a year earlier.
Net Income From Operations for Fiscal 2016 2nd Quarter increased 17% to $4.2 million versus the same period a year earlier.
Net Income Available to Common Stockholders for Fiscal 2016 2nd Quarter increased 31% to $3.3 million versus the same period a year earlier.
Sentiment: Strong Buy
Fonar Sales should contact The NFLPA and NCAA football teams. If any of their current or former players are experiencing the same symptons as Jim Mcmahon a Fonar upright MRI could help save them.
the fonar upright weight baring mri can pinpoint exactly where the problem is like it did for McMahon which other test could not see. Once knowing exactly what and where you are dealing with you can start to heal it. Specifically an area that is preventing necessary spinal fluid flow which is at the root of many many issues.
very good espn special on 85 Bears. The fonar technology can save people from way more then dementia. Really liked the part jim exlained the spinal fluid was not getting where it needed to go. In my opinion that leads to numerous problems. good things ahead in all areas for this technology.
Purchased FONR again the last 3 days. In 2016 I've added 60% to my FONR holdings. FONR has for me been a fantastic investment the last 12 month. The Q2 report is out February 8-10. It might drive FONR up to $20. A level it ought to trade at. Even if my strategy is not to have a huge Investment in one company I just have to buy FONR below $15.
I'll keep this short and sweet...Google "Penny Stock 101 org' signup for their free newsletter and get their next trade alert. Come back and thank me tomorrow!
Right now we experience a China crisis and an oil crisis. Analysts talk of a drop in S&P500 of another 10%. January 7 I predicted FONR in a crisis could trade as low as $14. The last 2 days FONR traded below $14, but closed approx at $14. I've used the drop from $18 to increase my FONR holdings by 40%. My average cost on my 2016 purchase is $13.94. I expect to continue to buy FONR at levels below $14.