FONAR Corporation (FONR) has reported a 96.34 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $5.90 million, or $0.88 a share in the quarter, compared with $3 million, or $0.45 a share for the same period last year. Revenue during the quarter grew 7.46 percent to $20.01 million from $18.62 million in the previous year period. Gross margin for the quarter expanded 812 basis points over the previous year period to 54.06 percent. Total expenses were 70 percent of quarterly revenues, down from 78 percent for the same period last year. This has led to an improvement of 799 basis points in operating margin to 30 percent.
Operating income for the quarter was $6 million, compared with $4.10 million in the previous year period.
Reflecting upon his first year as president and chief executive officer of FONAR Corporation, Timothy R. Damadian stated: "The transition has been seamless, we’re successfully executing our business plan, and earnings are growing steadily. Naturally our stockholders focus on Diluted Net Income per Common Share Available to Common Stockholders, which for the quarter ending March 31 was $0.88. That’s a 96% increase as compared to the corresponding quarter a year ago. And for the nine-month period ending March 31, we’re at $2.05 per share, which is up 44% as compared to the corresponding period a year ago."
Working capital increases
FONAR Corporation has recorded an increase in the working capital over the last year. It stood at $36.39 million as at Mar. 31, 2017, up 12.57 percent or $4.06 million from $32.32 million on Mar. 31, 2016. Current ratio was at 3.52 as on Mar. 31, 2017, up from 2.74 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 161 days for the quarter from 172 days for the last year period. Days sales outstanding went down to 160 days for the quarter compared with 163 days for the same period last year.
Days inventory outstanding has decreased to 13 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding was almost stable at 12 days for the quarter, when compared with the previous year period.
Debt comes down significantly
FONAR Corporation has recorded a decline in total debt over the last one year. It stood at $1.08 million as on Mar. 31, 2017, down 82.99 percent or $5.24 million from $6.32 million on Mar. 31, 2016. Total debt was 1.17 percent of total assets as on Mar. 31, 2017, compared with 7.70 percent on Mar. 31, 2016. Debt to equity ratio was at 0.01 as on Mar. 31, 2017, down from 0.11 as on Mar. 31, 2016. Interest coverage ratio improved to 86.99 for the quarter from 32.26 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
