Amended Release from March 23, 2009 - No Change to Financial DataPlease note change to language describing clinical studies.
New York, NY, March 23, 2009 - Daxor Corporation, (NYSE Amex: DXR), a medical instrumentation and biotechnology company, today announced earnings for the year ended December 31, 2008. The Company had basic and diluted earnings per share of $3.48 and $3.46 respectively in 2008, versus basic and diluted earnings per share of $2.33 per share in 2007. This can be attributed to the increase in income from investments to $24,888,385 in 2008 from $17,389,110 in 2007. Gains on sales of securities and dividend income were 39.0% of invested capital for the year ended December 31, 2008 versus 57.6% for the year ended December 31, 2007. This percentage decline is due to the increase in the cost of available for sale securities to $50,709,601 at December 31, 2008 from $29,987,157 at December 31, 2007.
The personal holding company tax for 2008 was reduced by the total dividends paid of $6,452,502 or $1.50 per share. The Company utilized all of its available net operating loss carry forward in 2008 which partially accounted for the the increased tax expense in 2008 of $4,557,964 versus $1,311,024 in 2007. Due to the full utilization of its available net operating loss carry forward, the Company recorded deferred tax expense in 2008 of $1,896,483 on the mark to market adjustment on short sales. There was no adjustment made for deferred tax expense relating to short sales in 2007.
At December 31, 2008, the Company had total assets of $76,824,181 and stockholders’ equity of $43,460,641 versus total assets of $102,560,500 and $54,915,885 of stockholders’ equity at December 31, 2007. The Return on Stockholders’ Equity improved to 30.7% in 2008 from 21.2% in 2007.The decrease in total assets and stockholders’ equity is mainly due to a reduction in the net unrealized gain on the Company’s available for sale securities to $17,629,542 at December 31, 2008 from $44,932,036 at December 31, 2007. This is mostly attributable to the decline in the value of common stocks of certain electric utility stocks that represent a substantial part of the Company’s investment portfolio.
Operating revenues decreased in 2008 by 5.8% to $1,761,055 from $1,869,779 in 2007. The major reason for the decrease was the sale of four BVA-100 Blood Volume Analyzers in 2008 for $260,000 versus six instruments during 2007 for $390,500. The Company engages in clinical trial agreements to allow customers to begin utilization of the instrument and to become familiar with the clinical benefits of a measured blood volume prior to the purchase of the instrument. All of the four units sold in 2008 were purchased after a trial period. Revenue from kit sales increased by 4.4% in 2008 versus 2007 which can be attributed to an increase in utilization of existing instruments along with 53 instruments being in service at December 31, 2008 versus 50 at December 31, 2007.
For the year ended December 31, 2008 operating expenses decreased by 4.6% to $6,968,207 from $7,300,649 in 2007. The decrease in expenses is mostly due to a reduction in payroll and related expenses. Management remains strongly committed to the Company’s ongoing research, development and marketing efforts.
The Blood Volume Analyzer provides critical information for conditions such as congestive heart failure, hypertension, anemia due to blood loss, serious complications that may develop in an intensive care unit, conditions involving shock (collapse of blood pressure) and other serious problems. At the present time the overwhelming majority of decisions made in treating these conditions are made on the basis of “guesstimates” by physicians treating these patients.
Eighteen published peer review studies sponsored by Daxor and six independent studies presented at major medical conferences document that improved analysis of blood volume status may save lives and result in better outcomes for patients. Daxor anticipates publication of major studies from institutions such as the University of Hawaii in the near future. Past published studies from the Columbia College of Physicians and Surgeons have documented that in the treatment of congestive heart failure, the stated goal of treating a patient so they achieve a normal blood volume results in a marked improvement in the mortality rate. The same studies also documented that experienced physicians were correct only 51% of the time on the basis of clinical evaluation as to whether the patients had normal amounts of blood volume, too much blood volume or too little blood volume. This study also showed that at the end of one year, heart failure patients with normal blood volumes were all alive versus 39% of the hypervolemic patients who had expired; at the end of two years, when the study was completed, 55% of the hypervolemic patients had expired and all of the normovolemic patients were still alive.
In addition to the current published studies, Daxor’s commitment to educating clinicians regarding the benefit of a measured blood volume in many chronic and acute medical conditions is continuing through several clinical trials. Currently, there are five on-going studies at four separate major medical institutions and three planned clinical studies scheduled to begin in 2009. Improvement in care, reductions in the cost of care (i.e., length of hospital stay and unnecessary or inappropriate treatments) and increasing survival rates are the main areas of focus for these on-going and upcoming trials in heart failure, critical care medicine, hypertension and orthostatic hypotension. One current study, “Utilizing Blood Volume Measurements in the Treatment of Heart Failure Patients”, is utilizing blood volume measurements to help guide fluid removal by ultrafiltration in patients hospitalized with heart failure. Ultrafiltration is a treatment method utilized to remove excess fluid from a heart failure patient. Preliminary unpublished data (not related to any ongoing clinical trial) has shown that it may be beneficial to perform a blood volume prior to ultrafiltration to determine exactly how much fluid should be removed from a patient.
| ||YEAR ENDED |
|Selected Financial Data: ||Dec 31, 2008 || ||Dec 31, 2007 |
|Total Operating Revenues ||$ ||1,761,055 ||$ ||1,869,779 |
|Total Operating Expenses ||$ ||6,968,207 ||$ ||7,300,649 |
|Net Loss from Operations ||$ ||(5,207,152) ||$ ||(5,430,870) |
|Total Other Income ||$ ||24,888,835 ||$ ||17,389,110 |
|Net Income Before Taxes ||$ ||19,681,233 ||$ ||11,958,240 |
|Income Tax Expense ||$ ||4,557,964 ||$ ||1,311,024 |
|Net Income ||$ ||15,123,269 ||$ ||10,647,216 |
|Weighted Average Number |
of Shares Outstanding - Basic
| ||4,350,951 || ||4,572,119 |
|Earnings per Share - Basic || ||$3.48 || ||$2.33 |
|Weighted Average Number |
of Shares Outstanding - Diluted
| ||4,375,623 || ||4,572,119 |
|Earnings per Share - Diluted || ||$3.46 || ||$2.33 |
|Dividends per Share || ||$1.50 || ||$ -- |
Contact Information: Daxor Corporation Stephen Feldschuh, 212-330-8515 (Chief Operating Officer) firstname.lastname@example.org or David Frankel, 212-330-8504 (Chief Financial Officer) email@example.com