Daxor Corporation (Daxor), a in vitro diagnostics company, has reported total operating revenues of $1.7 million for the full year of 2008, compared with total operating revenues of $1.8 million in the previous year-end. It has also reported a net income of $15.1 million, or $3.46 per diluted share, for the full year of 2008, compared with the net income of $10.6 million, or $2.33 per diluted share, in the previous year-end.
Gains on sales of securities and dividend income were 39.0% of invested capital for the year ended December 31, 2008, compared with up 57.6 for the year 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 increased income tax expense in 2008 of $4,557,964, compared with $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 for 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, compared with 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.
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, compared with the sale of 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 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.