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, 1996
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, 1996
COMMON STOCK 4,722,709
PAR VALUE: $.O1 per share
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS PAGE
Consolidated Balance Sheets as at
March 31, 1996 and December 31, 1995 2
Consolidated Statements of Operations for the
Three Months Ended March 31, 1996 and 1995 3
Consolidated Statements of Cash Flows for the
Three Months ended March 31, 1996 and 1995 4
Notes to Financial Statements 5
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DAXOR CORPORATION
BALANCE SHEETS (UNAUDITED)
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Consolidated
MARCH 31, DECEMBER 31,
1996 1995
ASSETS
__________________________________________________________________
Current Assets
Cash $ 200,654 $ 1,987
Marketable Securities at Fair Value
March 31, 1996 and December 31,1995
(Notes 1 and 2) 33,588,246 35,735,073
Accounts Receivable 545,735 409,196
Accounts receivable-Related Parties 172,951 172,951
Other Current Assets 103,282 764,695
Tax Refunds Receivable 206,233 206,233
---------- ----------
TOTAL CURRENT ASSETS 34,817,101 37,290,135
---------- ----------
Equipment and Improvements
Storage Tanks 125,815 125,815
Leasehold Improvements, Furniture
and Equipment 628,617 628,617
Laboratory Equipment 274,418 274,418
---------- ----------
1,028,850 1,028,850
Less: Accumulated Depreciation and
Amortization (620,995) (606,180)
---------- ----------
Net Equipment and Improvements 407,855 422,670
---------- ----------
Other Assets 31,816 31,816
---------- ----------
TOTAL ASSETS $ 35,256,772 $37,744,621
========== ==========
___________________________________________________________________
LIABILITIES AND SHAREHOLDERS' EQUITY
___________________________________________________________________
Current Liabilities
Accounts Payable and Accrued
Liabilities $ 131,752 $ 323,815
Loans Payable (Notes 1 and 2) 318,997 1,536,609
Other Liabilities 32,520 93,056
Deferred Taxes 3,733,649 3,738,310
---------- ----------
TOTAL CURRENT LIABILITIES 4,216,918 5,691,790
---------- ----------
Shareholders' Equity
Common Stock, par value $.01 per Share:
Authorized 10,000,000 Shares: Issued
and Outstanding 4,722,709 shares at
March 31, 1996 and 4,742,709 at
December 31, 1995 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) 6,351,715 7,119,401
Retained Earnings 19,226,418 19,338,209
Treasury Stock (3,171,179) (3,037,679)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 31,039,854 32,052,831
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 35,256,772 $37,744,621
========== ==========
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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1996 1995
_________ __________
REVENUES
Operating Revenues $ 177,676 $ 503,480
Dividend Income 513,701 549,352
Gains/(Losses) on Sale of Securities 142,045 198,038
Gains/(Losses) On Sale of
Options and Commodities (197,426) (4,368)
--------- -------
TOTAL REVENUES 635,996 1,246,502
--------- ---------
COSTS AND EXPENSES
Operations of Laboratories 130,127 279,363
Selling, General, and Administrative 585,072 398,734
Interest Expense, Net of Interest Income 19,281 (51,294)
-------- ---------
TOTAL COSTS AND EXPENSES 734,480 626,803
-------- ---------
Net Income (Loss) Before Income Taxes (98,484) 619,699
Provision for Income Taxes 13,311 49,717
-------- ---------
NET INCOME (LOSS) $ (111,795) $ 569,982
======== =========
Weighted Average Number of Shares
Outstanding 4,736,042 5,067,297
Net Income Per Common Equivalent Share $ (0.02) $ 0.11
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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1996 1995
___________________________________________ ---- ----
CASH FLOWS FROM OPERATING EXPENSES
Net Income or (Loss) $ 111,795 $ 569,982
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation equipment and improvements......... 14,815 13,500
Amortization - goodwill......................... -0- 1,402
(Gain) Loss on sale of investments.............. 55,381 (193,670)
Change in assets and liabilities:
(increase) decrease in accounts receivable.... (136,539) 458
(increase) decrease in other current assets... 661,413 (409,884)
increase (decrease) in accounts payable, accrued
and other liabilities net of "short sales". (192,533) (1,950)
-------- --------
Total adjustments............................ 402,537 (590,144)
-------- --------
Net cash used in/provided by operating
activities................................... 290,742 (20,162)
-------- -------
___________________________________________
Cash Flows from investing activities:
Payment for purchase of equipment and
improvements................................. -0- (1,563)
Net cash provided or (used in) purchase and
sale of investments.......................... 1,235,324 1,074,797
Net proceeds (repayments) of loans from brokers
used to purchase investments................. (317,612) (1,137,488)
Proceeds from "short sales" not closed......... 23,713 75,742
--------- ---------
Net cash provided by or (used in) investing
activities................................... 941,425 11,488
___________________________________________ --------- ---------
Cash flows from financing activities:
Payment for purchase of treasury stock....... (133,500) (7,004)
--------- ---------
Repayment of bank loan....................... (900,000) -0-
--------- ---------
Net cash provided by (used in) financing
activities................................. (1,033,500) (7,004)
--------- ---------
Net increase (decrease) in cash
and cash equivalents...................... 198,667 (15,678)
Cash and cash equivalents at beginning of year 1,987 59,962
--------- ---------
Cash and cash equivalents at end of year..... $ 200,654 $ 44,284
--------- ---------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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DAXOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
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,
1996 and December 31, 1995, the results of operations for the three months
ended March 31, 1996 and 1995 and cash flows for the three months ended
March 31, 1996 and March 31, 1995. 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 31,1996, and December 31,1995 being increased
approximately 42.91% and 43.64% 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'
eguity 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.
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The following table summarizes the company's investments as of March 31, 1996.
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TYPE OF COST FAIR VALUE UNREALIZED UNREALIZED
SECURITY HOLDING GAINS HOLDING LOSSES
Equity $23,476,671 $33,532,253 $12,982,037 $2,926,455
Debt 26,212 55,993 29,781 -0-
----------- ----------- ----------- ----------
Total $23,502,883 $33,588,246 $13,011,818 $2,926,455
=========== =========== =========== ==========
The following table summarizes the company's investments as of
December 31, 1995.
TYPE OF COST FAIR VALUE UNREALIZED UNREALIZED
SECURITY HOLDING GAINS HOLDING LOSSES
Equity $24,851,151 $35,673,901 $13,470,588 $2,647,838
Debt 26,212 61,172 34,960 -0-
----------- ----------- ----------- ----------
Total $24,877,363 $35,735,073 $13,505,548 $2,647,838
=========== =========== =========== ==========
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At March 31, 1996, the securities held by the Company had a market value of
$33,588,246 and a cost basis of $23,502,883 resulting in a net unrealized gain
of $10,085,363 or 42.91% of cost.
At December 31, 1995, the securities held by the Company had a market value of
$35,735,073 and a cost basis of $24,877,363 resulting in a net unrealized gain
of $10,857,710 or 43.64% of cost. At March 31, 1996 and December 31, 1995,
marketable securities, primarily consisting of preferred and common stocks of
utility companies, are valued at fair value.
LOANS PAYABLE
As at March 31, 1996 and December 31, 1995, the Company had loans outstanding
aggregating $2,000,000 and $1,100,000 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 7.8 %.
Short term margin debt due to brokers, secured by the Companies marketable
securities, totaled $118,997 at March 31, 1996 and $436,609 at December 31,1995.
PART II. OTHER INFORMATION
ITEM 6(b) Reports on Form 8-K
The Company did file a report on Form 8-K during the quarter ended
March 31, 1995.
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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, 1996, total revenues were $635,996 as
compared to $1,246,502 in 1995. Operating revenues were $177,676 in 1996, and
$503,480 in 1995. In 1996, dividend income was $513,701 versus dividend income
of $549,352 in 1995. In the 1996 quarter, the Company had a net loss of
$111,795 before income taxes as compared to a net income of $619,699 before
taxes in the 1995 period. Operating revenues have fallen sharply since the
licenses of Daxor's Idant Laboratories division were revoked on August 21, 1995,
and the laboratories functioned on a restricted basis. The Company on May 16,
1996, was notified that the Appellate Court in New York State in a 5 - 0
unanimous decision against the New York State Department of Health had ordered
restoration of all of Daxor's licenses. Daxor expects its revenues will return
to previous levels as full scale operations are phased in. Significant
additional revenues are expected to occur when the blood volume analyzer and
its isotope are approved for medical use. The Company has begun to receive
revenues from Daxor Health Services, Inc., a wholly owned Florida subsidiary
incorporated on January 10, 1996.
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. The Company has adequate capital for the initial phase of its
Daxor Health Services subsidiary in Florida.
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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, 1996 /s/Joseph Feldschuh
JOSEPH FELDSCHUH, M.D.
President
DATE: May 15, 1996 /s/Robert Rosenthal
ROBERT ROSENTHAL, M.D.
Vice President
DATE: May 15, 1996 /s/Octavia Atanasiu
OCTAVIA ATANASIU
Treasurer
DATE: May 15, 1996 /s/ Virginia Fitzpatrick
VIRGINIA FITZPATRICK
Secretary
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