Daxor Corp Reports Operating Results (10-Q)
Daxor Corporation is a medical device manufacturing corporation with additional biotech services. Daxor Corp has a market cap of $55.7 million; its shares were traded at around $13 with a P/E ratio of 3.7 and P/S ratio of 31.6. The dividend yield of Daxor Corp stocks is 3.8%. Daxor Corp had an annual average earning growth of 48.6% over the past 5 years. Highlight of Business Operations: Total S G & A (selling, general and administrative) and R&D (Research and Development) costs for Equipment Sales and Related Services were $1,178,962 for the three months ended March 31, 2009 versus $1,329,904 for the same period in 2008, for a decrease of $150,942 or 11.34%. The main reason for this was decreased payroll and related costs of $108,365 for the three months ended March 31, 2009 as compared to the same period in 2008.
Operating revenues for the Cryobanking segment, which includes both blood banking and semen banking, decreased to $89,074 in 2009 from $97,133 in 2008, for a decrease of $8,059 or 8.30%. The main reason for this was a decrease in Semen Bank Storage fees and related items of $6,015 for the three months ended March 31, 2009 as compared to 2008.
The total consolidated operating expenses including cost of sales for the first quarter of 2009 were $1,548,533 versus $1,689,714 in 2008 for a decrease of $141,181 or 8.36%, which is mainly attributable to a reduction in payroll and related expenses of $106,512.
Dividend income earned on the Companys security portfolio for the three months ended March 31, 2009 was $987,097 versus $630,782 for the same period in 2008 for an increase of $356,315 or 56.49%. The main reason for this increase was the receipt of a onetime special dividend of $282,425 on a stock which was still in the Companys investment portfolio at March 31, 2009.
Gains on the sale of investments were $5,070,441 for the three months ended March 31, 2009 versus $5,830,999 for the same period in 2008 for a decrease of $760,558 or 13.04%. For the current quarter, the Company had a loss from the marking to the market of short positions of stocks and put and call options of ($6,264,931) versus a gain of $2,176,041 for the same period in 2008. Interest expense net of interest income was $67,699 for the three months ended March 31, 2009 versus $29,515 for the three months ended March 31, 2008. Administrative expenses relating to portfolio investments were $31,886 in 2008 versus $ 21,414 for the same period in 2008. A detailed description of investment policies and historical records over the past 16 years was included in the recent 10-K filing for the year ended December 31, 2008.
As of March 31, 2009, cash and cash equivalents totaled $37,612 versus $2,545,040 at December 31, 2008. Cash used in operating activities was $2,966,222 for the three month period ended March 31, 2009. The decrease in cash and cash equivalents was primarily due to funding the operating loss for the current quarter.
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