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 2016.
First Quarter Results
For the three months ended March 31, 2016, medical services
revenue increased 2.9% to $4,238,000 compared to medical services
revenue of $4,117,000 for the first quarter of 2015. Excluding one
customer contract that expired after the first quarter of 2015,
medical services revenue increased $374,000, or 10.0%.
Net income for the first quarter of 2016 of $51,000, or $0.01
per share, included a loss on the early extinguishment of debt of
$108,000 related to the payoff during the quarter of a $1,000,000
promissory note due in October 2017. Excluding this non-cash loss,
net of estimated income tax, net income for the first quarter of
2016 was $115,000 compared to net income for the first quarter of
2015 of $128,000, or $0.02 per share.
Excluding one customer contract that expired after the first
quarter of 2015, the total number of procedures performed in AMS'
Gamma Knife business increased 6.2% for the first quarter of 2016
compared to the same period of 2015.
Medical services gross margin for the first quarter of 2016
increased to 40.9%, compared to medical services gross margin of
38.8% for the first quarter of 2015, primarily the result of
reduced maintenance costs.
Operating income increased 9.4% to $499,000 for the first
quarter of 2016 compared to operating income of $456,000 for the
same period a year earlier. Pre-tax income, net of income
attributable to non-controlling interest and the loss on early
extinguishment of debt, decreased to $223,000 for the first quarter
of 2016, compared to pre-tax income, net of income attributable to
non-controlling interest, of $258,000 for the first quarter of
2015.
Selling and administrative expenses for the first quarter of
2016 increased to $949,000 compared to selling and administrative
expenses of $821,000 for the first quarter of 2015, primarily the
result of higher accounting and consulting expenses.
Adjusted EBITDA, a non-GAAP financial measure, was $2,129,000
for the first quarter of 2016, compared to $2,119,000 for the first
quarter of 2015. Please refer to the financial statements included
with this press release for a reconciliation of GAAP to this
non-GAAP financial measure.
Balance Sheet Highlights
At March 31, 2016, cash and cash equivalents were $2,190,000
compared to $2,259,000 at December 31, 2015. Shareholders' equity
at March 31, 2016 was $25,481,000, or $4.75 per outstanding share.
This compares to shareholders' equity at December 31, 2015 of
$25,180,000, or $4.69 per outstanding share.
CEO Comments
Chairman and Chief Executive Officer Ernest A. Bates, M.D.,
said, "Our Gamma Knife business performed well in the first
quarter, continuing the trend of year-over-year gains in treatment
volume, revenue, gross margin and operating income the business has
delivered consistently in recent quarters. We remain focused on
improving operating margins, and working with our hospital partners
to increase utilization of our Gamma Knife systems.
"Early in April we were pleased to announce the initiation of
patient treatments at AMS' first proton therapy center, The
Marjorie and Leonard Williams Center for Proton Therapy at UF
Health Cancer Center-Orlando Health in Florida. We expect our new
proton business to contribute modestly to revenue in the second
quarter and more substantially in the year's second half as UF
Health Cancer Center-Orlando Health moves up the learning curve
with the MEVION S250 proton device we supplied. The steady
accumulation of professional research and clinical experience with
this advanced treatment modality underscores the advantages of
protons over conventional X-rays in the treatment of a wide range
of cancers. We believe we have entered a period of sustained growth
in the development of proton centers at hospitals throughout the
county, and the successful development and opening of UF Health
Cancer Center-Orlando Health positions AMS to be a significant
beneficiary."
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) 446-1671 at least 5 minutes prior to the scheduled start
time, and mention confirmation number 42509287. A simultaneous
WebCast of the call may be accessed through the Company's website,
www.ashs.com, or www.streetevents.com (institutional investors). A
replay will be available for 30 days at these same internet
addresses, or by dialing 888-843-7419 and entering 42509287# when
prompted.
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 proton therapy,
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, the risks of investing in Mevion Medical Systems,
Inc., and the risks of the timing, financing, and operations of the
Company’s proton therapy business. 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, 2015, and the definitive Proxy
Statement for the Annual Meeting of Shareholders to be held on June
21, 2016.
Non-GAAP Financial Measure
Adjusted EBITDA, the non-GAAP measure presented in this press
release and supplementary information, is not a measure of
performance under accounting principles generally accepted in the
United States ("GAAP"). Adjusted EBITDA should not be considered a
substitute for, and investors should also consider, income from
operations, net earnings, earnings per share and other measures of
performance as defined by GAAP as indicators of the Company's
performance or profitability.
Selected Financial Data
(unaudited)
Summary of Operations Data
Three months ended
March 31,
2016
2015
Revenue
$
4,238,000
$
4,117,000
Costs of revenue
2,505,000
2,520,000
Gross margin
1,733,000
1,597,000
Selling & administrative expense
949,000
821,000
Interest expense
285,000
320,000
Operating income
499,000
456,000
(Loss) on early extinguishment of debt
(108,000
)
--
Interest & other income
5,000
6,000
Income before income taxes
396,000
462,000
Income tax expense
64,000
130,000
Net income
332,000
332,000
Less: Net income attributable to
non-controlling interest
(281,000
)
(204,000
)
Net income attributable to American Shared
Hospital Services
$
51,000
$
128,000
Earnings per common share:
Basic
$
0.01
$
0.02
Assuming dilution
$
0.01
$
0.02
Balance Sheet Data
March 31,
December 31,
2016
2015
Cash and cash equivalents
$
2,190,000
$
2,259,000
Current assets
$
6,366,000
$
5,974,000
Investment in equity securities
$
579,000
$
579,000
Total assets
$
60,087,000
$
54,042,000
Current liabilities
$
9,185,000
$
8,665,000
Shareholders' equity
$
25,481,000
$
25,180,000
Adjusted EBITDA
March 31,
2016
2015
Net Income
$
51,000
$
128,000
Plus:
Income Tax Expense
$
64,000
$
130,000
Interest Expense
$
285,000
$
320,000
Depreciation and Amortization Expense
$
1,562,000
$
1,505,000
Share-Based Payment
$
59,000
$
36,000
Early Extinguishment of Debt
$
108,000
$
0
Adjusted EBITDA
$
2,129,000
$
2,119,000
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160510005517/en/
American Shared Hospital ServicesErnest A. Bates, M.D., (415)
788-5300Chairman and Chief Executive
Officereabates@ashs.comorBerkman AssociatesNeil Berkman, (310)
477-3118Presidentinfo@berkmanassociates.com
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