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(NYSE Amex: DXR) Daxor Corporation Announces Year End 2010 Earnings

March 29, 2011 - NEW YORK, NY

Daxor Corporation, (NYSE Amex: DXR)


Selected Financial Data: December 31, 2010 December 31, 2009
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Total Operating Revenues $ 1,579,257 $ 1,688,826
Total Operating Expenses $ 7,238,368 $ 6,798,014
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Net Loss from Operations $ (5,659,111) $ (5,109,188)

Total Other Income $ 14,009,267 $ 12,261,060
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Net Income Before Income Taxes $ 8,350,156 $ 7,151,872

Income Tax Expense $ 3,381,892 $ 1,329,114
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Net Income $ 4,968,264 $ 5,822,758
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Weighted Average Number
of Shares Outstanding-Basic 4,237,216 4,262,643

Earnings per Share-Basic $ 1.17 $ 1.37

Weighted Average Number
of Shares Outstanding-Diluted 4,237,216 4,284,643

Earnings per Share-Diluted $ 1.17 $ 1.36

Dividends per Share $ 1.00 $ 1.35

Daxor Corporation, (NYSE Amex: DXR), a medical instrumentation andbiotechnology company, announced earnings today for the year ended December31, 2010. The Company had basic and diluted earnings of $1.17 and $1.17 pershare respectively, in 2010, versus basic and diluted earnings per share of$1.37 and $1.36, respectively in 2009. This reduction can mainly beattributed to the increase in income tax expense to $3,381,892 in 2010 from$1,329,114 in 2009. More than 99% of the Company's other income consists ofincome from investments.

Operating revenues decreased by 6.5% in 2010 to $1,579,257 from $1,688,826in 2009. The significant reduction in Medicare reimbursement for diagnosticradiopharmaceutical products such as Daxor's Volumex Kit that becameeffective in 2008 continues to negatively impact the sale of Blood VolumeAnalyzers.

Company Management believes that this reduction in reimbursement for theVolumex Kit will ultimately prove to be self defeating because it is likelyto result in the discharge of inadequately treated congestive heart failurepatients from hospitals. This will in turn lead to higher rates ofreadmission and increased death rates in congestive heart failure patientswhich could otherwise be avoided.

The Company engages in short-term trial agreements to allow customers tobegin utilization of the instrument and to become familiar with theclinical benefits of a measured blood volume prior to purchase of theinstrument.

The revenues from kit sales decreased by 10.4% in 2010 versus 2009 whichcan be attributed to a decrease in utilization of the Blood VolumeAnalyzer. There were the same number of instruments (56) in service onDecember 31, 2010 as on December 31, 2009.

At December 31, 2010, the Company had total assets of $91,195,415 andstockholders' equity of $46,995,044 versus total assets of $75,186,990 and$47,625,337 of stockholders' equity at December 31, 2009. The Return onAverage Stockholders' Equity decreased to 10.5% in 2010 from 12.8% in 2009due to a decrease in net income from $5,822,758 in 2009 to $4,968,264 in2010.

For the year ended December 31, 2010 consolidated expenses, not includingcost of goods sold, increased by 6.9% to $6,510,718 in 2010 from $6,093,148in 2009. This increase in expenses was mostly due to the following twofactors:

  • An increase in research and development expenses to $3,041,640 in 2010from $2,825,151 in 2009. Management remains strongly committed to theCompany's ongoing research, development and marketing efforts.
  • Increased professional fees of $302,085 in 2010 which is mostly due tocosts relating to the SEC administrative proceeding that were incurred in2010. The SEC proceeding is discussed in greater detail in the Company'sAnnual Report on Form 10-K for the year ended December 31, 2010 which willbe filed later today.

Gains on sales of securities and dividend income were $15,735,516 or 52.8%of average invested capital for the year ended December 31, 2010 and$13,848,176 or 34.9% for the year ended December 31, 2009. The investedcapital at December 31, 2010, 2009 and 2008 was $30,967,959, $28,630,149and $50,709,601 respectively.

The Company paid total dividends of $4,229,520 or $1.00 per share in 2010and $5,739,299 or $1.35 per share in 2009. The Company has yet to declareor pay a dividend in 2011. The goal of Company Management is to pay aminimum total yearly dividend of $1.00 per share as long as funds areavailable.

For more detailed information on our financial results, please refer to ourAnnual Report on Form 10-K for the year ended December 31, 2010 which willbe filed later today.

The BVA-100 Blood Volume Analyzer produced and marketed by DaxorCorporation provides key information that can be used to diagnose and treatvarious medical conditions including congestive heart failure,hypertension, anemia, blood loss during surgery, trauma, and shock(collapse of Blood Pressure). At the present time, physicians must treatthese conditions by guessing whether or not they are due to volumeexpansions or contractions. The Blood Volume Analyzer allows precisequantitation of patients' total blood volume and red blood cell volume,which takes the guesswork out of this process. Appropriate therapies canthen be employed to correct excesses or deficits in volume, leading tobetter outcomes for patients.

Nineteen published peer-reviewed research studies sponsored by DaxorCorporation since 2002, as well as twenty-two studies presented at majormedical conferences since 2006, document that precise determination ofblood volume status may save lives and result in better outcomes forpatients. Previously published studies by Dr. Stuart Katz and colleaguesat the Columbia University Medical School have provided evidence for theguidelines which recommend that healthcare providers perform a blood volumeevaluation at every clinical visit for congestive heart failure patients.

This study showed that heart failure patients with normal blood volumeswere all still alive at the end of one year, whereas 39% of patients withexpanded blood volume had died; at the end of two years, all of thenormovolemic patients were still alive, while 55% of the patients withexpanded blood volume had died. This study also documented that experiencedphysicians were correct only 51% of the time in estimating patients' bloodvolume status.

Dr. Mihae Yu and colleagues at The Queen's Medical Center in Honolulu,Hawaii, have conducted a research study to evaluate the use of blood volumemeasurement in the critical care unit. Their most recent findings werepublished in the March 2011 issue of the medical journal Shock. The resultsshowed that use of the BVA-100 to guide fluid and red blood cell managementled to a significant improvement in mortality in critically ill surgicalpatients with septic shock, severe sepsis, severe respiratory failureand/or cardiovascular collapse. Patients in the control group exhibited asignificantly greater death rate (24%) than did patients in the bloodvolume measurement group (8%; P=0.03). In addition, patients in thecontrol group had longer hospital stays (54.7 days) compared to patients inthe blood volume group (43.7 days). These findings indicate that bloodvolume analysis permits more accurate assessment of patients' volume statusand more precise fluid resuscitation, which leads to shorter hospital staysand a significant number of lives being saved.

The passage of the Patient Protection and Affordable Care Act (H.R. 3590)in March 2010 gave Centers for Medicare and Medicaid Services (CMS) theauthority to penalize hospitals for excess readmission rates in heartfailure, acute myocardial infarction, and Pneumonia beginning in 2013.Hospitals that readmit heart failure patients within 30 days of dischargewill not be reimbursed. This has important financial implications, as iteffectively penalizes hospitals for not optimally treating patients duringtheir initial visits.

This highlights a significant opportunity for the BVA-100, which may beused to identify patients at higher risk of mortality due to inadequatetreatment of blood volume overload. This may help to drive increasedutilization of the BVA-100: Medicare reimburses hospitals on the basis ofdiagnostic related guidelines (DRGs). Under the current system, when apatient is admitted for heart failure, the hospital is paid the same amountof money whether the patient is hospitalized for 2 days or for 10 days.Not surprisingly, the hospital's physicians are under great pressure todischarge the patient as quickly as possible. This has produced a situationin which 20% of heart failure patients are readmitted within 30 days orless.

Additional information on Daxor and the BVA-100 can be found on theCompany's website at

Contact Information:

Daxor Corporation
Stephen Feldschuh
(Chief Operating Officer)


David Frankel
(Chief Financial Officer)


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