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FONR Nasdaq· Fonar Corp
Earnings report Q4 2023

FONR Reports 8.0% Increase in Consolidated Net Revenues for the First Six Months of Fiscal 2024

Segments of revenue

FONR's net revenues for the first six months of fiscal 2024 increased by 8.0% to $51.2 million compared to $47.4 million in the first six months of fiscal 2023. The breakdown of the different segment revenues for the six-month period includes:

  • Patient fee revenue: $16.9 million
  • Product sales: $0.2 million
  • Service and repair fees: $3.6 million
  • Service and repair fees - related parties: $0.1 million
  • Management and other fees: $24.4 million
  • Management and other fees - related medical practices: $6.0 million

Strengths

FONR's increase in net revenues can be attributed to the growth in various segments. Patient fee revenue saw a significant increase from $13.2 million in the first six months of fiscal 2023 to $16.9 million in the same period of fiscal 2024. This growth indicates a higher demand for FONR's services. Additionally, the decrease in selling, general, and other administrative costs contributed to the increase in operating income.

Challenges

While FONR experienced overall revenue growth, some segments showed minimal or no growth. Product sales remained relatively flat at $0.2 million, and service and repair fees saw a slight decrease from $3.7 million to $3.6 million. These segments may require further attention to drive growth and maximize revenue potential.

Noteworthy

FONR's operating income increased to $11.5 million in the first six months of fiscal 2024 compared to $8.1 million in the same period of fiscal 2023. This growth can be attributed to the increase in net revenues and the lower percentage increase in selling, general, and other administrative costs.

Summary

FONR reported an 8.0% increase in consolidated net revenues for the first six months of fiscal 2024, driven by growth in patient fee revenue and other segments. The company's operating income also improved due to the increase in net revenues and effective cost management. However, challenges remain in stagnant product sales and a slight decline in service and repair fees. FONR should focus on strategies to stimulate growth in these segments to further enhance its financial performance.

Source documents

Form 10-Q  filed on Feb 14, 2024
187 pages scanned

Reference data

Company financials Q4 revenue 25.4M
Analyst estimates Q4 EPS missed by NaN%
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