FONAR Corporation (FONR) has reported a 21.44 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $4.24 million, or $0.63 a share in the quarter, compared with $3.49 million, or $0.53 a share for the same period last year.
Revenue during the quarter went up marginally by 0.19 percent to $18.40 million from $18.37 million in the previous year period. Gross margin for the quarter expanded 281 basis points over the previous year period to 49.12 percent. Total expenses were 74.96 percent of quarterly revenues, down from 77 percent for the same period last year. This has led to an improvement of 204 basis points in operating margin to 25.04 percent.
Operating income for the quarter was $4.61 million, compared with $4.22 million in the previous year period.
President and chief executive officer Timothy R. Damadian said, "I am delighted to report that our bottom line EPS (Diluted Net Income Per Common Share Available to Common Stockholders) has increased by 22% to $1.17 per share for the six months ended December 31, 2016, as compared to the corresponding period one year earlier." “Despite the uncertainties and challenges in today’s healthcare arena, the HMCA management team is proud to have helped FONAR deliver to its shareholders a steady annual growth rate of 6% over the past 6 years."
Working capital increases marginally
FONAR Corporation has recorded an increase in the working capital over the last year. It stood at $31.17 million as at Dec. 31, 2016, up 4.82 percent or $1.43 million from $29.74 million on Dec. 31, 2015. Current ratio was at 2.80 as on Dec. 31, 2016, up from 2.57 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 117 days for the quarter from 169 days for the last year period. Days sales outstanding went down to 118 days for the quarter compared with 162 days for the same period last year.
Days inventory outstanding has decreased to 13 days for the quarter compared with 21 days for the previous year period. At the same time, days payable outstanding went up to 15 days for the quarter from 13 for the same period last year.
Debt comes down significantly
FONAR Corporation has recorded a decline in total debt over the last one year. It stood at $2.08 million as on Dec. 31, 2016, down 69.97 percent or $4.86 million from $6.94 million on Dec. 31, 2015. Total debt was 2.36 percent of total assets as on Dec. 31, 2016, compared with 8.63 percent on Dec. 31, 2015. Debt to equity ratio was at 0.03 as on Dec. 31, 2016, down from 0.12 as on Dec. 31, 2015. Interest coverage ratio improved to 59.86 for the quarter from 30.40 for the same period last year.
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