SOURCE: Daxor Corp.

November 13, 2008 08:30 ET

(AMEX: DXR) Daxor Corporation Announces Third Quarter 2008 Earnings

NEW YORK, NY--(Marketwire - November 13, 2008) - Daxor Corporation (AMEX: DXR), a medical instrumentation and biotechnology company, today announced third quarter earnings for 2008. For the quarter ended September 30, 2008, total operating revenues increased by 29.1 % to $451,253 from $349,547 for the same period in 2007. This was mainly the result of one Blood Volume Analyzer being sold during the current quarter for $65,000 versus no Blood Volume Analyzers sold during the same period last year. During the current quarter, Volumex kit sales increased by $28,423 or 12.7% versus the same period in 2007.

For the nine months ended September 30, 2008, total operating revenues increased by 2.0% to $1,428,753 from $1,400,747 for the same period in 2007. Four Blood Volume Analyzers were sold in the nine months ended September 30, 2008 for a total of $260,000 versus the sale of five instruments for the same period in 2007 for a total of $325,500. The Centers for Medicare and Medicaid Services (CMS) implemented a policy change effective January 1, 2008 which significantly reduced the reimbursement for diagnostic radiopharmaceutical products. It is the opinion of management that this change has negatively impacted instrument sales. For the nine months ended September 30, 2008, Volumex kit sales increased by $112,201 or 16.5%. For the nine months ended September 30, 2008, total costs and expenses decreased by 4.9% to $5,143,528 from $5,409,714 for the same period in 2007.

At September 30, 2008, the Company had total assets of $91,761,470 with total stockholders' equity of $53,628,415 versus total assets of $102,560,500 and $54,915,885 of stockholders' equity at December 31, 2007. In the first three and nine months of 2008 and 2007, the company had significant income from investments which completely offset the operating loss.

Total other income for the nine months ended September 30, 2008 increased by 90.7% to $21,666,967 from $11,364,479 for the same period in 2007. The basic net income per share for the nine months ended September 30, 2008 was $3.49 versus $1.60 for the same period in 2007.

The company is continuing its efforts associated with research and development as part of the ongoing effort to develop products that are complementary to its current product line. The improvement in the company's financial structure is important for the company's expansion plans. There were 53 Blood Volume Analyzers placed at September 30, 2008 versus 55 instruments at September 30, 2007.

One of the clinical outcome studies that the Company has begun this year focuses on utilizing the Blood Volume Analyzer BVA-100 to guide therapy for heart failure patients undergoing ultrafiltration treatment to achieve a normal volume status. Ultrafiltration is a therapy which removes fluid from a patient, similar to dialysis. Removal of inadequate quantities of fluid in some heart failure patients has been associated with poor outcomes. Removal of excess quantities of fluid may result in kidney damage. However, achievement to a normal volume status has been a difficult parameter to achieve without a measured blood volume. This very important prospective outcome study will be conducted at Christiana Hospital of Newark, Delaware.

As a result of The Board of Directors voting to enact a policy of paying quarterly dividends of $0.25 per share, a dividend will be paid on November 26, 2008 in addition to the previous dividend paid on August 27, 2008. The Board of Directors will meet during the latter part of November to review the possibility of paying a special dividend in December of 2008. The Company intends to continue a policy of paying dividends on a quarterly basis if net income is available to maintain the dividend.

Under the provisions of the Company's stock buyback program, Daxor may purchase up to 250,000 shares of the Company's common stock each year. As part of this program, the Company purchased 166,400 shares of Daxor Common Stock during the nine months ended September 30, 2008 and 163,808 during the year ended December 31, 2007.

                            Three Months Ended        Nine Months Ended
                              September 30               September 30
                            2008         2007         2008         2007
                        -----------  -----------  -----------  -----------

Total Operating
 Revenues               $   451,253  $   349,547  $ 1,428,753  $ 1,400,747
Total Costs & Expenses  $ 1,672,976  $ 1,918,386  $ 5,143,528  $ 5,409,714
                        -----------  -----------  -----------  -----------
Net Loss from
 Operations             $(1,221,723) $(1,568,839) $(3,714,775) $(4,008,967)

Total Other Income      $ 9,948,065  $ 3,524,442  $21,666,967  $11,364,479
                        -----------  -----------  -----------  -----------

Net Income Before Income
 Taxes                  $ 8,726,342  $ 1,955,603  $17,952,192  $ 7,355,512

Income Tax Expense      $ 2,325,000  $         0  $ 2,725,000  $         0
                        -----------  -----------  -----------  -----------

Net Income              $ 6,401,342  $ 1,955,603  $15,227,192  $ 7,355,512
                        -----------  -----------  -----------  -----------

Weighted Average Number
 Of Shares Outstanding-
 Basic                    4,324,885    4,578,485    4,369,440    4,591,563

Earnings Per Share-
 Basic                  $      1.48  $      0.43  $      3.49  $      1.60

Weighted Average Number
 Of Shares Outstanding-
 Diluted                  4,346,885    4,578,485    4,440,140    4,591,563

Earnings Per Share-
 Diluted                $      1.47  $      0.43  $      3.43  $      1.60

Contact Information

  • Contact Information:
    Daxor Corporation
    Stephen Feldschuh
    212-330-8515
    (Chief Operating Officer)
    stephen@daxor.com

    David Frankel
    212-330-8504
    (Chief Financial Officer)
    dfrankel@daxor.com