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
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 Feb 2024 to Mar 2024
American Shared Hospital... (AMEX:AMS)
Historical Stock Chart
From Mar 2023 to Mar 2024