SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the
Securities Act of 1934
FOR QUARTER ENDED SEPTEMBER 30, 2000
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 Ave
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 SEPTEMBER 30, 2000
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COMMON STOCK
PAR VALUE: $.O1 per share 4,672,909
<PAGE>
PART I. FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS PAGE
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Consolidated Balance Sheets as at September 30,2000 and
December 31, 1999 F-1
Consolidated Statements of Income for the Three and Nine
Months ended September 30,2000 and 1999 F-2
Consolidated Statement of Cash Flows for the Nine Months
ended September 30, 2000 and 1999 F-3
Notes to Financial Statements F-4
<PAGE>
DAXOR CORPORATION
FINANCIAL STATEMENT
DAXOR CORPORATION
CONSOLIDATED BALANCE SHEETS [UNAUDITED]
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
ASSETS
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<S> <C> <C>
CURRENT ASSETS
Cash $ 19,067 $ 67,783
Marketable Securities at Fair Value
September 30,2000 and December 31,
1999. (Notes 1 and 2) 45,769,669 34,867,286
Accounts receivable 108,579 6,745
Other current assets 312,105 493,991
------------ ------------
Total Current Assets 46,209,420 35,435,805
EQUIPMENT AND IMPROVEMENTS
Storage tanks 125,815 125,815
Leasehold improvements, furniture
and equipment 826,424 825,794
Laboratory equipment 278,087 275,817
------------ ------------
1,230,326 1,227,426
Less: Accumulated depreciation and amortization 904,152 861,156
------------ ------------
Net equipment and improvements 326,174 366,270
Other Assets 40,990 43,990
Total Assets $ 46,576,584 $ 35,846,065
============ ============
</TABLE>
<TABLE>
<CAPTION>
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LIABILITIES AND SHAREHOLDERS' EQUITY
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<S> <C> <C>
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 47,738 $ 127,341
Loans payable (Notes 1 and 2) 1,756,122 2,443,794
Other Liabilities 33,499 33,738
Deferred Taxes (Note 1) 7,929,170 3,961,623
------------ ------------
Total Liabilities 9,766,529 6,566,496
SHAREHOLDERS' EQUITY
Common stock, par value $.01 per share:
Authorized 10,000,000 shares: issued and
outstanding shares 4,672,909 September 30,
2000 and 4,692,909 December 31, 1999 53,097 53,097
Additional Paid in capital 9,798,232 9,798,232
Net unrealized holding gains
on available-for-sale securities (Note 1) 15,391,918 7,690,209
Retained earnings 16,294,436 16,195,846
Treasury stock (4,727,628) (4,457,815)
------------ ------------
Total Shareholders' Equity 36,810,055 29,279,569
Total Liabilities and Shareholders' Equity $ 46,576,584 $ 35,846,065
============ ============
</TABLE>
See accompanying notes to financial statements
F-1
<PAGE>
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Operating revenues $ 167,211 $ 209,430 $ 529,208 $ 433,557
Other revenues $ 15,267 $ 39,208 $ 65,499 $ 39,208
Dividend income 456,104 464,547 1,395,649 1,387,542
Gains (losses) on sale
of securities 178,238 (9,077) 184,243 388,117
Total Revenues 816,820 704,108 2,174,599 2,248,424
----------- ----------- ----------- -----------
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COSTS AND EXPENSES
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Operations of Laboratories 324,846 254,481 847,146 973,618
Selling, General, and
Administrative 355,842 358,443 1,057,555 1,017,905
Interest expense, net of
interest income 57,393 41,519 157,567 99,837
----------- ----------- ----------- -----------
Total Costs and Expenses 738,081 654,443 2,062,268 2,091,360
----------- ----------- ----------- -----------
Net Income (Loss) Before Income
Taxes 78,739 49,665 112,331 157,064
Provision for income taxes 12,386 -- 13,746 2,512
----------- ----------- ----------- -----------
Net Income (Loss) $ 66,353 $ 49,665 $ 98,585 $ 154,552
----------- ----------- ----------- -----------
Weighted Average Number of Shares
Outstanding 4,672,909 4,716,876 4,679,242 4,731,198
Net Income of (Loss) per Common
Equivalent Share $ 0.01 $ 0.01 $ 0.02 $ 0.03
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements
F-2
<PAGE>
<TABLE>
<CAPTION>
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------- -----------------
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CASH FLOWS FROM OPERATING ACTIVITIES
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<S> <C> <C>
Net Income or (loss) $ 98,585 $ 154,552
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Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation equipment and improvements 42,996 54,228
(Gain) loss on sale of investments (184,243) (388,117)
(Gain) loss on sale of machinery & equipment (1,918)
Change in assets and liabilities:
(Increase) decrease in accounts receivable (101,834) 8,910
(Increase) decrease in other current assets 181,886 (67,605)
(Increase) decrease in other assets 3,000 (6,019)
Increase (decrease) in accounts payable,
accrued and other liabilities net of "short sales" (78,603) (57,872)
--------------------- -----------------
Total adjustments (136,798) (458,393)
--------------------- -----------------
Net Cash Provided by or (used in) operating activities (38,213) (303,841)
--------------------- -----------------
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CASH FLOWS FROM INVESTING ACTIVITIES
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Payment for purchase of equipment and improvements (2,900) (26,192)
Proceeds from sale of equipment - 50,000
Net cash provided or (used) in purchase and sale of
investments 922,535 700,023
Net proceeds (repayments) of loans from brokers used
to purchase investments (687,667) 48,650
Proceeds from "short sales" not closed 27,342 16,807
--------------------- -----------------
Net cash provided by or (used in) investing activities 259,310 789,288
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CASH FLOWS FROM FINANCING ACTIVITIES
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Payment for purchase of treasury stock (269,813) (540,282)
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Net cash provided by or (used in) financing activities (269,813) (540,282)
--------------------- -----------------
Net increase (decrease) in cash and cash equivalents (48,716) (54,835)
Cash and cash equivalents at beginning of year 67,783 79,511
--------------------- -----------------
Cash and cash equivalents at end of period $ 19,067 $ 24,676
===================== =================
</TABLE>
See accompanying notes to financial statements
F-3
<PAGE>
DAXOR CORPORATION
NOTES TO CONSOLIDATED STATEMENTS (UNAUDITED)
DAXOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
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
September 30,2000, and December 31, 1999, the results of operations for the
three and nine months ended September 30 2000 and 1999 and cash flows for the
nine months ended September 30,2000 and 1999. 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 September 30, 2000 and December 31, 1999 being
increased approximately 103.89% and 50.19% 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 following tables summarize the company's investments as of :
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000
Type of Unrealized Unrealized
SECURITY COST FAIR VALUE HOLDING GAINS HOLDING LOSSES
-------- ---- ---------- ------------- --------------
<S> <C> <C> <C> <C>
EQUITY $22,433,722 $45,768,769 $24,453,329 $1,118,282
DEBT 14,859 900 0 13,959
--------------------- ----------------------- --------------------------- -----------------------------
TOTAL $22,448,581 $45,769,669 $24,453,329 $1,132,241
=========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
Type of Unrealized Unrealized
SECURITY COST FAIR VALUE HOLDING GAINS HOLDING LOSSES
<S> <C> <C> <C> <C>
EQUITY $23,200,595 $34,866,386 $13,640,132 $1,974,341
DEBT 14,859 900 0 13,959
---------------------- ---------------------- --------------------------- -----------------------------
TOTAL $23,215,454 $34,867,286 $13,640,132 $1,988,300
=========== =========== =========== ==========
</TABLE>
F-4
<PAGE>
At September 30, 2000 the securities held by the Company had a market
value of $45,769,669 and a cost basis of $22,448,581 resulting in a net
unrealized gain of $23,321,088 or 103.89% of cost.
At December 31, 1999, the securities held by the Company had a market
value of $34,867,286 and a cost basis of $23,215,454 resulting in a net
unrealized gain of $11,651,832 or 50.19% of cost.
At September 30, 1999 and December 31, 1998 marketable securities,
primarily consisting of preferred and common stocks of utility companies, are
valued at fair value.
2) LOANS PAYABLE
As at September 30, 2000 and December 31, 1999, the Company had loans
outstanding aggregating $1,000,000 borrowed on a short term basis from a bank,
which are secured by certain marketable securities of the Company. The loans
bear interest at approximately 8.25%.
Short term margin debt due to brokers, secured by the Companies marketable
securities, totaled $756,122 at September 30, 2000 and $1,443,794 at December
31, 1999.
F-5
<PAGE>
PART II OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
None
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 2.
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2000 AS COMPARED WITH THREE MONTHS ENDED
SEPTEMBER 30, 1999.
For the three months ended September 30, 2000 total revenues were
$816,820, up from $704,108 in 1999. Operating revenues were $167,211 in 2000
down from $209,430 in 1999. Dividend income was $456,104 with a net interest
expense of $57,393 in 2000, as compared to dividend income of $464,547 with a
net interest expense of $41,519 in 1999. In 2000, the Company had a net loss of
$78,739 before income taxes versus $49,665 before income taxes in 1999. The
Company anticipates that it's sales of equipment and kits will become the major
source of income for the Company. The Company is currently initiating
distribution networks but no income has yet been received from sales by
non-Company personnel.
NINE MONTHS ENDED SEPTEMBER 30, 2000 AS COMPARED WITH NINE MONTHS ENDED
SEPTEMBER 30, 1999.
For the nine months ended September 30,2000, total revenues were
$2,174,599 down from $2,248,424 in 1999. Operating revenues were $529,208 up
from $433,557 in 1999. Dividend income was $1,395,649 with a net interest
expense of $157,567, as compared to the dividend income of $1,387,542 with a net
interest expense of $99,837 in 1999. In 1999, the Company had $388,117 in
capital gains vs $184,243 in 2000. The Company was able to increase its
operating revenues while decreasing its cost of operations. In 2000, the Company
had a net income of $112,331 before income taxes versus $157,064 before income
taxes in 1999. The increase in operating revenues was related to the BVA-100
operations. The Company has also provided complimentary testing kits to certain
hospitals for research and testing purposes. Medicare has recently established a
specific code for the Volumex kit Albumin I-131 which is used in conjunction
with the BVA-100. This will make it easier for hospitals to obtain the
appropriate reimbursement when billing for blood volume measurement.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2000 the Company had total assets of $46,576,584 and
total liabilities of $9,766,529 with shareholders' equity of $36,810,055. The
Company has a net pre-taxed unrealized gain of $23,321,088 and $ $15,391,918 of
net after tax unrealized capital gains on available-for-sale securities in its
portfolio. This amount is included in the calculation of Total Shareholders'
Equity. The Company's stock portfolio had a market value of $45,769,669 with
short-term loans of $1,756,122 with 4,672,909 shares outstanding.
The Company has adequate resources for the current marketing level of its
Blood Volume Analyzer as well as capital to sustain its localized semen and
blood banking services. The Company is reviewing various options in regard to
establishing a nationwide sales force as opposed to utilizing independent local
dealer distribution networks for marketing the Blood Volume Analyzer. The
Company is evaluating the possibility of acquiring additional capital which
would enable it to undertake a more rapid marketing program nationally as well
as internationally. The Company has an instrument loaner reagent plan which
requires use of the Company's reserves. Under a sale or a lease plan, the
Company receives income immediately on its equipment. The equipment loaner
reagent plan permits a user to make a minimal initial capital commitment. This
results in a slower return on capital expenditure for the Company. The Company
will arrange for all leases through independent leasing companies, to whom it
will sell the BVA-100. The company is evaluating blood volume instrumentation
management programs for hospitals. Under such a plan, the Company would provide
equipment and personnel on a sub-contract basis. The Company will use its
current financial reserves primarily for developing and marketing the Blood
Volume Analyzer. The company is evaluating various options to expand blood
banking services in conjunction with the use of the Blood Volume Analyzer.
The Company did not file any reports on form 8-K.
<PAGE>
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: NOVEMBER 13,2000 /S/
JOSEPH FELDSCHUH, M.D.
President
DATE: NOVEMBER 13,2000 /S/
DAN WELLINGTON
Vice President
DATE: NOVEMBER 13,2000 /S/
OCTAVIA ATANASIU
Treasurer
DATE: NOVEMBER 13,2000 /S/
VIRGINIA FITZPATRICK
Secretary
