SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________________
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Act of 1934
FOR QUARTER ENDED MARCH 31, 1995
Commission File Number 0-12248
DAXOR CORPORATION
(Exact Name as Specified in its Charter)
New York 13-2682108
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
350 Fifth Avenue
Suite 7120
New York, New York 10118
(Address of Principal Executive Offices & Zip Code)
Registrant's Telephone Number: (212) 244-0555
(Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports required
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes ( X ) No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS OUTSTANDING AT MARCH 31, 1995
COMMON STOCK 5,066,630
PAR VALUE: $.O1 per share
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PART I. FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS PAGE
Consolidated Balance Sheets as at
March 31, 1995 and December 31, 1994 2
Consolidated Statements of Operations for the
Three Months Ended March 31, 1995 and 1994 3
Consolidated Statements of Cash Flows for the
Three Months ended March 31, 1995 and 1994 4
Notes to Financial Statements 5
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DAXOR CORPORATION
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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MARCH 31, DECEMBER 31,
1995 1994
ASSETS
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Current Assets
Cash $ 44,284 $ 59,962
Marketable Securities at Fair Value
March 31, 1995 and
December 31,1994 (Notes 1 and 2) 33,379,511 33,598,931
Accounts Receivable 215,373 215,831
Other Current Assets 882,191 472,307
Tax Refunds Receivable 206,233 206,233
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TOTAL CURRENT ASSETS 34,727,592 34,553,264
Equipment and Improvements
Storage Tanks 125,815 125,815
Leasehold Improvements, Furniture
and Equipment 593,803 592,240
Laboratory Equipment 279,964 279,964
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999,582 998,019
Less: Accumulated Depreciation and
Amortization (593,305) (579,805)
--------- ---------
Net Equipment and Improvements 406,277 418,214
Other Assets 39,758 41,160
TOTAL ASSETS $ 35,173,627 $35,012,638
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LIABILITIES AND SHAREHOLDERS' EQUITY
_____________________________________________________________________________
Current Liabilities
Accounts Payable and Accrued
Liabilities $ 15,417 $ 15 682
Loans Payable (Notes 1 and 2) 2,727,117 3,864,605
Other Liabilities 75,742 110,406
Deferred Taxes 2,088,310 1,822,765
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TOTAL CURRENT LIABILITIES 4,906,586 5,813,458
Shareholders' Equity
Common Stock, par value $.01 per Share:
Authorized 10,000,000 Shares: Issued
and Outstanding 5,066,630 shares at
March 31, 1995 and 5,067,630 at
December 31, 1994 53,097 53,097
Additional Paid in Capital 8,579,803 8,579,803
Net Unrealized holding gains on
available-for-sale securities(Note 2) 3,975,311 3,470,428
Retained Earnings 18,621,076 18,051,094
Treasury Stock (962,246) (955,242)
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TOTAL SHAREHOLDERS' EQUITY 30,267,041 29,199,180
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 35,173,627 $35,012,638
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<FN>SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31
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1995 1994
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REVENUES
Operating Revenues $ 503,480 $ 486,175
Dividend Income 549,352 516,487
Gains/(Losses) on Sale of Securities 198,038 71,684
Gains/(Losses) On Sale of
Options and Commodities (4,368) 37,586
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TOTAL REVENUES 1,246,502 1,111,932
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COSTS AND EXPENSES
Operations of Laboratories 279,363 302,433
Selling, General, and Administrative 398,734 304,115
Interest Expense, Net of Interest Income (51,294) (55,463)
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TOTAL COSTS AND EXPENSES 626,803 551,085
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Net Income (Loss) Before Income Taxes 619,699 560,634
Provision for Income Taxes 49,717 48,692
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NET INCOME (LOSS) $ 569,982 $ 512,155
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Weighted Average Number of Shares Outstanding 5,067,297 5,149,296
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Net Income Per Common Equivalent Share $ 0.11 $ 0.10
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<FN>SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31
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1995 1994
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CASH FLOWS FROM OPERATING EXPENSES
Net Income or (Loss) $ 569,982 $ 512,155
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Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation equipment and improvements......... 13,500 13,015
Amortization - goodwill......................... 1,402 1,402
(Gain) Loss on sale of investments.............. (193,670) (109,270)
Change in assets and liabilities:
(increase) decrease in accounts receivable.... 458 8,355
(increase) decrease in other current assets... (409,884) 4,245
(increase) decrease in other assets net of
goodwill amortization...................... 0 0
increase (decrease) in accounts payable, accrued
and other liabilities net of "short sales". (1,950) 14,599
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Total adjustments............................ (590,144) (67,654)
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Net cash provided by operating
activities................................... (20,162) 444,501
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Cash Flows from investing activities:
- ------------------------------------
Payment for purchase of equipment and
improvements................................. (1,563) (8,308)
Net cash provided or (used in) purchase and
sale of investments.......................... 1,074,797 (328,436)
Net proceeds (repayments) of loans from brokers
used to purchase investments................. (1,137,488) (585,422)
Proceeds from "short sales" not closed......... 75,742 291,601
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Net cash provided by or (used in) investing
activities................................... 11,488 (630,565)
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Cash flows from financing activities:
Payment for purchase of treasury stock....... (7,004) (29,160)
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Net cash provided by (used in) financing
activities................................. (7,004) (29,160)
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Net decrease in cash and cash equivalents...... (15,678) (215,224)
Cash and cash equivalents at beginning of year 59,962 262,299
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Cash and cash equivalents at end of year..... $ 44,284 $ 47,075
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<FN>SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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DAXOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 1995 AND 1994
In the opinion of the Company, the accompanying unaudited consolidated financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of March 31,
1995 and December 31, 1994, the results of operations for the three months ended
March 31, 1995 and 1994 and cash flows for the three months ended March 31, 1995
and March 31, 1994. The consolidated financial statements include the accounts
of the Company and its subsidiary. All significant intercompany transactions
and balances have been eliminated in consolidation.
1. MARKETABLE SECURITIES
Upon adoption of FASB No. 115, management has determined that the company's
portfolio is best characterized as "Available-For-Sale". This has resulted in
the balance sheet carrying value of the company's marketable securities
investments, as of March 31, 1995, and December 31, 1994 being increased
approximately 22.2% and 18.7% respectively over its historical cost. A
corresponding increase in shareholders' equity has been effectuated. In
accordance with the provisions of FASB No.115, the adjustment in shareholders'
equity to reflect the company's unrealized gains has been made net of the tax
effect had these gains been realized. The prior period has not been restated.
The following table summarizes the company's investments as of March 31, 1995.
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TYPE OF COST FAIR VALUE UNREALIZED UNREALIZED
SECURITY HOLDING GAINS HOLDING LOSSES
Equity $ 25,565,875 $ 31,678,555 $ 8,847,042 $ 2,434,362
Debt 1,750,016 1,700,956 75,366 26,306
------------ ------------ ----------- -----------
Total $ 27,315,891 $ 33,379,511 $ 8,573,348 $ 2,509,728
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The following table summarizes the company's investments as of December 31, 1994
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TYPE OF COST FAIR VALUE UNREALIZED UNREALIZED
SECURITY HOLDING GAINS HOLDING LOSSES
Equity $ 26,555,721 $ 31,892,894 $ 7,991,063 $ 2,653,890
Debt 1,750,016 1,706,037 22,544 66,523
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Total $ 28,305,737 $ 33,598,931 $ 8,013,607 $ 2,720,413
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At March 31, 1995, the securities held by the Company had a market value of
$33,379,511 and a cost basis of $27,315,891 resulting in a net unrealized gain
of $6,063,620 or 22.20% of cost.
At December 31, 1994, the securities held by the Company had a market value of
$33,598,931 and a cost basis of $28,305,737 resulting in a net unrealized gain
of $5,293,194 or 18.70% of cost. At March 31, 1995 and December 31, 1994,
marketable securities, primarily consisting of preferred and common stocks of
utility companies, are valued at fair value.
LOANS PAYABLE
As at March 31, 1995 and December 31, 1994, the Company had loans outstanding
aggregating $2,600,000 borrowed on a short-term basis from a bank, which are
secured by certain marketable securities owned by the Company. These loans
bear interest at approximately 8.5 %.
Short term margin debt due to brokers, secured by the Companies marketable
securities, totaled $127,117 at March 31, 1995 and $1,264,605 at December 31,
1994.
PART II. OTHER INFORMATION
ITEM 6(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the quarter ended
March 31, 1994.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
For the three months ended March 31, 1995, total revenues were $ 1,246,502 as
compared to $ 1,111,932 in 1994. Operating revenues were $ 503,480 in 1995,
and $ 486,175 in 1994. In 1995, dividend income was $ 549,352 with a net
interest income of $ 51,294 versus dividend income of $ 516,487 and an
interest income of $ 55,463 in 1994. In the 1995 quarter, the Company had a
net income of $ 619,699 before income taxes as compared to a net income of
$ 560,634 before taxes in the 1994 period. Operating revenues have remained
flat as the Company has focused on obtaining additional licenses for its blood
banking division. Significant additional revenues are not expected to occur
until the blood volume analyzer and its isotope are approved for medical use.
Liquidity and Capital Resources
The Company has adequate resources for the development and marketing of its
instrument (the Blood Volume Analyzer BVA-100) and the liquid capital to
sustain its blood bank. If the Company were to expand its blood banking
operation on a full scale, nation-wide basis, it would require additional
capital.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
DAXOR CORPORATION
(Registrant)
DATE: May 15, 1995 /s/Joseph Feldschuh, M.D.
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JOSEPH FELDSCHUH, M.D.
President
DATE: May 15, 1995 /s/ Helen Fajardo
-------------------------
HELEN FAJARDO
Vice President
DATE: May 15, 1995 /s/ Octavia Atanasiu
-------------------------
OCTAVIA ATANASIU
Treasurer
DATE: May 15, 1995 /s/ Stephen D. Feldschuh
---------------------------
STEPHEN D. FELDSCHUH
Secretary
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