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 MARCH 31, 2001
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 p receding 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, 2001
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COMMON STOCK
PAR VALUE: $.01 per share 4,664,909
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS PAGE
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Consolidated Balance Sheets as at March 31, 2001 and
December 31, 2000 F-1
Consolidated Statement of Income and Statement of Income
For the Three Months ended March 31, 2001 and 2000 F-2
Consolidated Statement of Cash Flows and Statement of Cash Flows
For the Three Months ended March 31, 2001 and 2000 F-3
Notes to Financial Statements F-4
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 2
ITEM 2. RESULTS OF OPERATIONS 2
DAXOR CORPORATION
FINANCIAL STATMENTS
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, December 31,
2001 2000
---- ----
ASSETS
CURRENT ASSETS
Cash $ 57,012 $ 18,439
Marketable Securities at Fair Value
March 31, 2001 and December 31, 2000, (Notes 1 and 2) 46,660,425 48,722,403
Accounts receivable 124,808 107,927
Other current Assets 330,235 363,758
------------ ------------
Total Current Assets 47,172,480 49,212,527
EQUIPMENT AND IMPROVEMENTS
Storage tanks 125,815 125,815
Leasehold improvements, furniture
and equipment 837,015 836,813
Laboratory equipment 278,087 278,087
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1,240,917 1,240,715
Less: Accumulated depreciation and amortization 930,933 919,414
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Net equipment and improvements 309,984 321,301
Other Assets 41,290 41,290
Total Assets $ 47,523,754 $ 49,575,118
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 89,265 $ 42,431
Loans payable (Notes 1 and 2) 1,885,737 1,775,363
Other Liabilities 87,858 73,741
Deferred Taxes (NOTE 1) 8,242,257 9,011,745
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Total Liabilities 10,305,117 10,903,280
SHAREHOLDERS' EQUITY
Common stock, par value $.01 per share:
Authorized 10,000,000 shares: issued and
Outstanding shares 4,664,909 March 31,
2001 and 4,664,909 December 31, 2000 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) 15,999,675 17,493,387
Retained earnings 16,181,163 16,140,652
Treasury stock (4,813,530) (4,813,530)
------------ ------------
Total Shareholders' Equity 37,218,637 38,671,838
Total Liabilities and Shareholders' Equity $ 47,523,754 $ 49,575,118
============ ============
See accompanying notes to consolidated financial statements
(F-1)
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31,
2001 2000
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Revenues:
Operating revenues $ 140,077 $ 211,559
Other revenues $ 42,334 $ 24,441
Dividend income 473,919 473,494
Gains/(losses) on sale of securities (8,704) 8,242
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Total revenues 647,626 717,736
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Costs and expenses:
Operations of Laboratories & Costs of Production 220,240 206,594
Selling, General, and Administrative 333,197 370,707
Interest expense, net of interest income 34,409 45,082
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Total Costs and Expenses 587,846 622,383
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Net Income Before Income Taxes 59,780 95,353
Provision for income taxes 19,269 1,360
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Net Income $ 40,511 $ 93,993
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Weighted Average Number of Shares Outstanding 4,664,609 4,685,576
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Net Income per Common Equivalent Share $ 0.01 $ 0.02
=========== ==========
See accompanying notes to consolidated financial statemens
F-2
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31,
2001 2000
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Cash flows from operating activities:
Net income or (loss) $ 40,511 $ 93,993
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation Equipment and
improvements 11,519 14,332
(Gain) loss on sale of investments 8,704 (8,242)
Change in assets and liabilities:
(Increase) decrease in accounts receivable (16,881) (1,796)
(Increase) decrease in other current assets 33,523 133,372
Increase (decrease) in accounts payable, accrued
and other liabilities net of "short sales" 47,434 (19,882)
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Total adjustments 84,299 117,784
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Net cash (used in) operating activities 124,810 211,777
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Cash flows from investing activities
Payment for purchase of equipment and
improvements (202) (2,899)
Net cash provided or (used) in purchase
and sale of investments (277,510) (243,664)
Net proceeds (repayments) of loans from
brokers used to purchase investments 110,374 114,366
Proceeds from "short sales" not closed 81,101 56,998
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Net cash provided by/(used in)
investing activities (86,237) (75,199)
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Cash flows from financing activities
Payment for purchase of treasury stock 0 (106,063)
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Net cash provided by/(used in) financing activities 0 (106,063)
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Net increase (decrease) in cash and
cash equivalents 38,573 30,515
Cash and cash equivalents at beginning of year 18,439 67,783
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Cash and equivalents at the end of period $ 57,012 $ 98,298
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See accompanying notes to consolidated financial statements
F-3
DAXOR CORPORATION
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2001 AND 2000
In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of March 31,
2001, and December 31, 2000, the results of operations for the three months
ended March 31, 2001 and 2000 and cash flows for the three months ended March
31, 2001 and 2000.
(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 or the company's marketable securities
investments, as of March 31, 2001 and December 31, 2000 being increased
approximately 108.13% and 119.30% 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:
March 31, 2001
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Type of Unrealized Unrealized
Security Cost Fair Value Holding gains Holding losses
-------- ---- ---------- ------------- --------------
Equity $22,403,634 $ 46,659,525 $25,250,566 $ 994,675
Debt 14,859 900 13,959
----------- ----------- ----------- ----------
Total $22,418,493 $46,660,425 $25,250,566 $1,008,634
=========== =========== =========== ==========
December 31, 2000
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Type of Unrealized Unrealized
Security Cost Fair Value Holding gains Holding losses
-------- ---- ---------- ------------- --------------
Equity $22,202,412 $48,721,503 $27,425,484 $ 906,393
Debt 14,859 900 0 13,959
----------- ----------- ----------- ---------
Total $22,217,271 $48,722,403 $27,425,484 $ 920,352
=========== =========== =========== =========
At March 31, 2001 the securities held by the Company had a market value of
$46,660,425 and a cost basis of $22,418,493 resulting in a net unrealized gain
of $24,241,932 or 108.13% of cost.
At December 31, 2000, the securities held by the Company had a market value
of $48,722,403 and a cost basis of $22,217,271 resulting in a net unrealized
gain of $25,505,132 or 119.30% of cost.
At March 31, 2001 and December 31, 2000 marketable securities, primarily
consisting of preferred and common stocks of utility companies, are valued at
fair value.
F-4
(2) LOANS PAYABLE
As at March 31, 2001 and December 31, 2000, 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 7.1875%.
Short term margin debt due to brokers, secured by the Companies marketable
securities, totaled $885,737 at March 31, 2001 and $775,363 at December 31,
2000.
F-5
PART II. OTHER INFORMATION
ITEM 1.
Legal Proceedings
There are no current legal proceedings. The Company is not aware of any pending
legal proceedings.
MANAGEMENT'S DISCUSSION ANALYSIS
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 2.
RESULTS OF OPERATIONS
Three months ended March 31, 2001 as compared with three months ended March 31,
2000.
For the three months ended March 31, 2001, total revenues were $647,626
down from $717,636 in 2000. Capital gains in 2000 contributed $8,242 and was a
loss of $8,704 in 2001. Operating revenues in the first quarter of 2000 included
the sale of 3 Blood Volume Analyzers. The Company is now focusing on a lease or
loaner plan for its Blood Volume Analyzer which results in less immediate
income. The Company may elect to directly lease its own equipment. Under such
plans, income would be recorded over the term of the lease. If equipment is sold
to a leasing company, then it would be recorded as a direct sale. Dividend
income in 2001 was $473,919 with a net interest expense of $34,409, as compared
to dividend income of $473,494 with a net interest expense of $45,082 in 2000.
In 2001, the Company had a net profit of $59,780 before income taxes versus
$95,353 before income taxes in 2000. In 2001, the Company had a net profit of
$59,780 before income taxes versus $95,353 before income taxes in 2000. The
Company received in the first quarter of 2000 its first income from the Blood
Volume Analyzer. 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.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2001 the Company had total assets of $47,523,754 and total
liabilities of $10,305,117 with shareholders' equity of $37,218,637. The Company
has a net pre-taxed unrealized gain of $24,241,932 and $15,999,675 of net after
tax unrealized capital gains on available-for-sale securities in its portfolio.
This amount is included in the calculation of Total Shareholder's Equity. The
Company's stock portfolio had a market value of $46,660,425 with short-term
loans of $1,885,737 with 4,664,909 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 baking services. The Company is reviewing various options in regard to
establishing a nationwide sales force as opposed to utilizing independent local
dealer distribution networks. 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.
Because of higher reagent cost, such plans have the potential for an ultimate
higher return for the Company. The Company's experience to date on equipment
sales has been too limited to evaluate whether sales or loaner reagent plans
will predominate. The Company will arrange some 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 financial reserves primarily for developing and
marketing the Blood Volume Analyzer.
The Company did not file any reports on form 8-K during the first three
months of 2001.
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 14, 2001 /s/
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JOSEPH FELDSCHUH, M.D.
President
Date: May 14, 2001 /s/
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DAN WELLINGTON
Vice President
Date: May 14, 2001 /s/
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OCTAVIA ATANASIU
Treasurer
Date: May 14, 2001 /s/
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VIRGINIA FITZPATRICK
Secretary