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 2015. Among the first
quarter highlights:
- Revenue increased 10.3% compared to the
first quarter of 2014, excluding prior year's revenue in
Turkey.
- Operating income increased to $456,000
versus an operating loss of $103,000 last year.
- Net income increased to $128,000 versus
a net loss of $96,000 for the first quarter of 2014.
- Book value increased to $4.93 per share
versus $4.78 per share at December 31, 2014.
First Quarter Results
For the three months ended March 31, 2015, medical services
revenue increased 1.3% to $4,117,000 compared to medical services
revenue of $4,064,000 for the first quarter of 2014. Revenue for
last year's first quarter included the Company's operations in
Turkey, which were sold effective May 31, 2014. Excluding prior
year's revenue in Turkey, medical services revenue increased 10.3%
for the first quarter of 2015 compared to the first quarter of
2014.
Net income for the first quarter of 2015 was $128,000, or $0.02
per share. This compares to a net loss for the first quarter of
2014 of $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.
The total number of procedures performed in AMS' U.S. Gamma
Knife business increased 8.1% for the first quarter
compared to the same period of 2014, excluding procedures performed
in Turkey.
Medical services gross margin for the first quarter of 2015
increased to 38.8%, compared to medical services gross margin of
31.7% for the first quarter of 2014, primarily the result of lower
costs due to the sale of the Turkish subsidiary.
Operating income increased to $456,000 for the first quarter of
2015 compared to an operating loss of $103,000 for the same period
a year earlier. Pretax income, net of income attributable to
non-controlling interest, increased to $258,000 for the first
quarter of 2015 compared to a pretax loss of $126,000 for the first
quarter of 2014.
Selling and administrative expenses for the first quarter of
2015 decreased to $821,000 compared to $922,000 for the first
quarter of 2014, primarily due to the sale of the Company's
operations in Turkey, as well as lower payroll-related costs and
rent expense.
Balance Sheet Highlights
At March 31, 2015, cash and cash equivalents were $927,000
compared to $1,059,000 at December 31, 2014. As of December 31,
2014, AMS had a $9,000,000 renewable line of credit with a bank
secured by a certificate of deposit. This line was paid in full on
January 2, 2015 using the proceeds from the certificate of deposit.
As a result, current liabilities decreased to $7,583,000 at March
31, 2015 compared to $16,251,000 at December 31, 2014.
Shareholders' equity at March 31, 2015 was $26,434,000, or $4.93
per outstanding share. This compares to shareholders' equity at
December 31, 2014 of $26,154,000, or $4.78 per outstanding
share.
CEO Comments
Chairman and Chief Executive Officer Ernest A. Bates, M.D.,
said, "The trend of improved operating performance for AMS' Gamma
Knife business that began last year continued in the first quarter
of 2015, the result of increased procedure volume, higher Medicare
reimbursement for certain procedures, and continued tight control
over operating costs. The Gamma Knife Perfexion remains the 'gold
standard' for cranial radiosurgery. It is an excellent device for
treating metastatic brain tumors, which are diagnosed in an
estimated 180,000 new patients annually. We remain optimistic about
our Gamma Knife business in 2015."
Regarding Medicare reimbursement, Dr. Bates explained that the
Centers for Medicare and Medicaid Services (CMS) established a
comprehensive Ambulatory Payment Classification (APC) for Gamma
Knife and LINAC one session cranial radiosurgery, one of the most
common procedures performed on these devices. Beginning January 1,
2015, the comprehensive reimbursement rate of approximately $9,768
is inclusive of the delivery and ancillary codes but exclusive of
co-insurance payments or other adjustments. For 2014, the average
CMS reimbursement rate for delivery and ancillary codes (exclusive
of co-insurance and other adjustments) was approximately
$5,600.
Dr. Bates continued, "Longer term, we believe that proton
therapy will be the primary driver of AMS' growth. Our first proton
center, now under construction at UF Health Cancer Center at
Orlando Health, is expected to begin treating patients in first
quarter 2016. We are in discussions with other hospitals around the
country that have expressed strong interest in partnering with AMS
to develop proton centers of their own, also employing the
advanced, single treatment room MEVION S250™ proton therapy system
now being installed at UF Health Cancer Center at Orlando
Health.
"With more than a year of clinical experience with the world's
first MEVION S250 system at the S. Lee Kling Proton Therapy Center
at Barnes-Jewish Hospital and Washington University School of
Medicine in St. Louis, the issues of the device's reliability and
throughput--top priorities for many hospitals considering this
system--have largely been put to rest. The clinical data from the
first year of treating patients at this site recently reported by
Mevion are remarkably positive. The MEVION S250 took just 11 months
to treat its first 100 patients--the fastest per treatment room
ramp-up of any proton therapy system. The system has already
treated more than 20 patients in a single day and in a single work
shift. The system also has demonstrated efficient treatment times,
with 97% operational uptime just five months after opening, and the
ability to treat a diverse and complex array of cancers in both
children and adult.
"Just last month, the MEVION S250 proton therapy system located
at the Ackerman Cancer Center in Jacksonville, Florida became the
second system to begin treating patients with this advanced form of
radiation therapy.
"This is why we are confident that we can launch additional
proton projects in short order once appropriate financing is
available. Based on the outstanding performance of the MEVION S250
in St. Louis, the initial patient treatments at the Ackerman Cancer
Center, and the progress of our device in Orlando, lenders we speak
with are increasingly comfortable that the demonstrated clinical
advantages of proton technology in the treatment of a wide range of
cancers will support a robust economic return for the Mevion
device, even with its relatively high purchase price and long lead
time required to get the system up and running compared to other
radiotherapy devices."
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 3972 5527#.
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, the risks of investing in a development-stage
company, 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, 2014, and the definitive Proxy Statement for the Annual Meeting
of Shareholders to be held on June 16, 2015.
Selected Financial Data
(unaudited)
Summary of Operations Data Three months ended March
31, 2015 2014 Revenue $ 4,117,000 $ 4,064,000 Costs of revenue
2,520,000 2,775,000 Gross margin
1,597,000 1,289,000 Selling & administrative expense 821,000
922,000 Interest expense 320,000 470,000
Operating income (loss) 456,000 (103,000 ) Gain from foreign
currency transactions -- 15,000 Interest & other income
6,000 9,000 Income (loss) before income taxes
462,000 (79,000 ) Income tax expense (benefit) 130,000
(30,000 ) Net income (loss) 332,000 (49,000 )
Less: Net income attributable to
non-controlling interest
(204,000 ) (47,000 )
Net income (loss) attributable t oAmerican
Shared Hospital Services
$ 128,000 $ (96,000 ) Earnings (loss) per common share: Basic $
0.02 $ (0.02 ) Assuming dilution $ 0.02 $ (0.02 )
Balance Sheet Data
March 31,
Dec. 31,
2015 2014 Cash and cash equivalents $ 927,000 $ 1,059,000
Current assets $ 5,853,000 $ 14,247,000 Certificate of deposit $ --
$ 9,000,000 Investment in equity securities $ 2,709,000 $ 2,709,000
Total assets $ 58,953,000 $ 67,528,000 Current liabilities $
7,583,000 $ 16,251,000 Shareholders' equity $ 26,434,000 $
26,154,000
American Shared Hospital ServicesErnest A. Bates, M.D., (415)
788-5300Chairman and Chief Executive
Officereabates@ashs.comorBerkman AssociatesNeil Berkman, (310)
477-3118Presidentinfo@berkmanassociates.com
American Shared Hospital... (AMEX:AMS)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Shared Hospital... (AMEX:AMS)
Historical Stock Chart
From Apr 2023 to Apr 2024