FONAR Corporation (FONR) has reported a 24.77 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.57 million, or $0.54 a share in the quarter, compared with $2.86 million, or $0.43 a share for the same period last year.
Revenue during the quarter grew 6.38 percent to $18.73 million from $17.61 million in the previous year period. Gross margin for the quarter expanded 246 basis points over the previous year period to 49.27 percent. Total expenses were 74.63 percent of quarterly revenues, down from 79.47 percent for the same period last year. This has led to an improvement of 484 basis points in operating margin to 25.37 percent.
Operating income for the quarter was $4.75 million, compared with $3.62 million in the previous year period.
President and CEO Timothy R. Damadian said, "I am delighted with our Diluted Net Income Per Common Share Available to Common Stockholders of $0.54, a 26% year-over-year increase. Further, Net Income Available to the Common Stockholder advanced to $3.3 million, a 25% increase, and Income from Operations grew to $4.8 million, a 31% increase."
Working capital increases
FONAR Corporation has recorded an increase in the working capital over the last year. It stood at $28.69 million as at Sep. 30, 2016, up 5.42 percent or $1.47 million from $27.22 million on Sep. 30, 2015. Current ratio was at 2.57 as on Sep. 30, 2016, up from 2.38 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 159 days for the quarter from 169 days for the last year period. Days sales outstanding were almost stable at 163 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 11 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went down to 15 days for the quarter from 17 for the same period last year.
Debt comes down significantly
Fonar Corp has recorded a decline in total debt over the last one year. It stood at $3.10 million as on Sep. 30, 2016, down 59.07 percent or $4.47 million from $7.57 million on Sep. 30, 2015. Total debt was 3.60 percent of total assets as on Sep. 30, 2016, compared with 9.57 percent on Sep. 30, 2015. Debt to equity ratio was at 0.05 as on Sep. 30, 2016, down from 0.14 as on Sep. 30, 2015. Interest coverage ratio improved to 48.50 for the quarter from 24.10 for the same period last year.
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