Welcome!

News Feed Item

American Shared Hospital Services Reports First Quarter Results

AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, today announced financial results for the first quarter of 2014.

First Quarter Results

In the three months ended March 31, 2014, medical services revenue was $4,064,000 compared to $4,668,000 for the first quarter of 2013. This revenue reduction was attributable in part to equipment downtime due to a Perfexion upgrade and routine maintenance at another site. Furthermore, severe winter weather conditions affected procedure volumes at several of AMS’ sites. However, for the first quarter 2014, medical services revenue increased 3.2% or $127,000 compared to the fourth quarter 2013.

The net loss for the first quarter of 2014 was $96,000, or $0.02 per share, which included a pre-tax gain from foreign currency transactions of $15,000 due to the strengthening of the Turkish Lira against the U.S. Dollar. In comparison, net income for the first quarter of 2013 was $25,000, or $0.01 per basic and diluted share, which included a pre-tax loss from foreign currency transactions of $141,000.

The number of procedures performed on Gamma Knife® PerfexionTM systems supplied by AMS increased 3% for the first quarter of 2014 compared to the same period of 2013. The total number of procedures performed in AMS' Gamma Knife business, including Gamma Knife and Gamma Knife Perfexion procedures, decreased 5% for the first quarter compared to the same period of 2013.

Medical services gross margin for the first quarter of 2014 was 31.7%, compared to medical services gross margin of 45.4% for the first quarter of 2013. In addition to the impact of lower revenue, the decrease in gross margin reflected higher depreciation and maintenance costs associated with the opening of a new Perfexion site in the second quarter of 2013, as well as the upgrade to Perfexion specifications of a Gamma Knife at another site and two cobalt reloads which occurred in the fourth quarter of 2013. Because an upgrade or cobalt reload increases the book value of the unit, depreciation expense also increases.

Selling and administrative expenses for the first quarter of 2014 decreased 25.3% to $922,000 compared to $1,235,000 for the first quarter of 2013.

Cash flow, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA), was $1,997,000 for the first quarter of 2014, compared to $2,036,000 for the first quarter of 2013.

Balance Sheet Highlights

At March 31, 2014, cash, cash equivalents and certificates of deposit were $9,957,000 compared to $10,909,000 at December 31, 2013. Shareholders' equity at March 31, 2014 was $23,816,000, or $5.17 per outstanding share. This compares to shareholders' equity at December 31, 2013 of $24,055,000, or $5.22 per outstanding share.

CEO Comments

Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "Lower volume was the primary cause of the decrease in revenue and earnings for this year’s first quarter, although the reduction in Medicare reimbursement for Gamma Knife services mandated by the American Taxpayer Relief Act of 2012 also played a role.

"The decrease in volume for this year's first quarter compared to prior year was the result of several factors. One of our sites was down for five weeks for an upgrade. Two other sites were down for approximately one month each due to equipment and personnel issues. In addition, extreme winter weather in the Midwest and Northeast during this year's first quarter reduced volume at several of our other sites.

"Our aggressive cost reduction program helped mitigate the impact of lower revenue on our bottom line. General and administrative expenses decreased 25.3% for this year's first quarter versus a year ago. We are on track to achieve the goal we announced last April to reduce future cash outlays by approximately $1,000,000 annually.

"In our proton therapy business, construction of the dedicated proton center at the University of Florida Health Cancer Center at Orlando Health continues. AMS will supply a MEVION S250TM Proton Therapy System for this facility. The MEVION S250 has received FDA approval. Delivery of the MEVION synchrocyclotron to the UF Health Cancer Center is expected this fall, and the facility is expected to begin treating patients in late 2015. The UF Health Cancer Center at Orlando Health is the model for additional proton centers AMS is developing."

Earnings Conference Call

American Shared has scheduled a conference call at 12:00 p.m. PDT (3:00 p.m. EDT) today. To participate in the live call, dial (800) 351-9852 at least 5 minutes prior to the scheduled start time. A simultaneous WebCast of the call may be accessed through the Company's website, www.ashs.com, or through CCBN, www.earnings.com (individual investors) or www.streetevents.com (institutional investors). A replay will be available for 30 days at these same internet addresses, or by calling (888) 843-7419, pass code 37294011.

About AMS

American Shared Hospital Services provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. AMS is the world leader in providing Gamma Knife radiosurgery equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia (facial pain). The Company also offers the latest IGRT and IMRT systems, as well as its proprietary Operating Room for the 21st CenturySM concept. AMS owns a common stock investment in Mevion Medical Systems, Inc., developer of the compact MEVION S250 Proton Therapy System.

Safe Harbor Statement

This press release may be deemed to contain certain forward-looking statements with respect to the financial condition, results of operations and future plans of American Shared Hospital Services, which involve risks and uncertainties including, but not limited to, the risks of the Gamma Knife and radiation therapy businesses, the risks of developing The Operating Room for the 21st Century program, and the risks of investing in a development-stage company, Mevion Medical Systems, Inc. Further information on potential factors that could affect the financial condition, results of operations and future plans of American Shared Hospital Services is included in the filings of the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2013, and the definitive Proxy Statement for the Annual Meeting of Shareholders to be held on June 10, 2014.

   

Selected Financial Data

(unaudited)

 
 
Summary of Operations Data
   
Three months ended
March 31,
2014 2013
 
Revenue $ 4,064,000 $ 4,668,000
Costs of revenue 2,775,000 2,550,000
 
Gross margin 1,289,000 2,118,000
 
Selling & administrative expense 922,000 1,235,000
Interest expense   470,000     471,000  
 
Operating (loss) income (103,000 ) 412,000
Gain (loss) from foreign currency transactions 15,000 (141,000 )
Interest & other income   9,000     14,000  
 
(Loss) income before income taxes (79,000 ) 285,000
Income tax (benefit) expense   (30,000 )   52,000  
 
Net (loss) income $ (49,000 ) $ 233,000
Less: Net income attributable to non-controlling interest   (47,000 )   (208,000 )
 
Net (loss) income attributable to American Shared Hospital Services $ (96,000 ) $ 25,000  
 
(Loss) earnings per common share:
Basic $ (0.02 ) $ 0.01  
 
Assuming dilution $ (0.02 ) $ 0.01  
 
           
Balance Sheet Data
March 31, December 31,
2014 2013
 
Cash and cash equivalents $ 957,000 $ 1,909,000
Current assets $ 7,255,000 $ 7,706,000
Certificate of deposit $ 9,000,000 $ 9,000,000
Investment in equity securities $ 2,701,000 $ 2,701,000
Total assets $ 69,783,000 $ 71,742,000
 
Current liabilities $ 11,830,000 $ 11,785,000
Shareholders' equity $ 23,816,000 $ 24,055,000

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.