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 fourth quarter and 2015.
Fourth Quarter Results
For the three months ended December 31, 2015, medical services
revenue increased 4.3% to $4,162,000 compared to medical services
revenue of $3,992,000 for the fourth quarter of 2014.
Net income for the fourth quarter of 2015 more than quadrupled
to $277,000, or $0.05 per share, compared to net income of $58,000,
or $0.01 per share, for the fourth quarter of 2014.
The total number of procedures performed in AMS' Gamma Knife
business decreased 1.7% for the fourth quarter of 2015
compared to the same period of 2014, primarily due to the
expiration of a site contract in March 2015. The increase in
revenue despite the decrease in procedure volume reflected a
favorable mix of treatments at the Company's retail sites, as well
as an increase in Medicare reimbursement for Gamma Knife services
that went into effect on January 1, 2015.
Medical services gross margin for the fourth quarter of 2015
increased to 44.7%, compared to medical services gross margin of
38.6% for the fourth quarter of 2014. The improvement in gross
margin was primarily the result of reduced maintenance costs.
Operating income increased 91.9% to $731,000 for the fourth
quarter of 2015 compared to operating income of $381,000 for the
same period a year earlier. Pre-tax income, net of income
attributable to non-controlling interest, increased to $383,000 for
the fourth quarter of 2015 compared to pre-tax income, net of
income attributable to non-controlling interest, of $154,000 for
the fourth quarter of 2014.
Selling and administrative expenses for the fourth quarter of
2015 decreased 5.5% to $792,000 compared to SG&A expenses of
$838,000 for the fourth quarter of 2014, primarily the result of
lower consulting expenses.
2015 Results
For the twelve months ended December 31, 2015, medical services
revenue increased 7.3% to $16,548,000 compared to medical services
revenue of $15,417,000 for 2014. Revenue for 2014 included the
Company's operations in Turkey, which were sold effective on May
31, 2014. Excluding prior year's revenue in Turkey, medical
services revenue increased 11.2% for 2015 compared to 2014.
The net loss for 2015 was $1,522,000, or $0.28 per share. The
loss was primarily attributable to a write-down of $2,140,000, or
$0.40 per share, related to AMS' strategic equity investment in
Mevion Medical Systems. Excluding this charge, the Company would
have reported net income of $618,000, or $0.12 per share, for 2015.
This compares to a net loss for 2014 of $952,000, or $0.19 per
share, which included a pre-tax loss on the sale of the Turkey
subsidiary of $572,000 and a pre-tax gain on foreign currency
transactions of $161,000 due to the strengthening of the Turkish
Lira against the U.S. Dollar.
The total number of procedures performed in AMS' Gamma Knife
business increased 6.9% for 2015 compared to 2014, excluding
procedures performed in Turkey. This increase reflected higher
procedure volume at certain of AMS' existing sites, as well as the
opening of the Company’s newest Gamma Knife site in Springfield,
Oregon in December 2014, offset by the expiration of one Gamma
Knife agreement in March 2015.
Operating income for 2015 increased to $1,980,000 compared to an
operating loss of $50,000 for 2014.
Interest expense decreased to $1,239,000 in 2015 compared to
$1,699,000 for 2014. Excluding interest expense in Turkey, this
decrease was due to the closure of the Company’s line of credit on
January 2, 2015, the pay-down of the Company’s existing debt
obligation for its IGRT device at the end of 2014 and an existing
lease obligation for a Gamma Knife site at the end of the first
quarter 2014, and a one-time benefit for a lease modification,
recorded in the third quarter of 2015.
Balance Sheet Highlights
At December 31, 2015, cash and cash equivalents were $2,209,000
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 $8,698,000 at
December 31, 2015 compared to $16,251,000 at December 31, 2014.
Shareholders' equity at December 31, 2015 was $25,180,000, or $4.69
per outstanding share. This compares to shareholders' equity at
December 31, 2014 of $26,154,000, or $4.88 per outstanding
share.
CEO Comments
Chairman and Chief Executive Officer Ernest A. Bates, M.D.,
said, "Our Gamma Knife business performed well in the fourth
quarter and 2015 overall, with gains in treatments, revenue and
operating income compared to 2014. We attribute this top and bottom
line growth to our hard work this past year to refine our cost
structure to improve operating margins, and increased utilization
by our hospital partners. Our efforts in these areas will continue
in the new year.
"Based on the hospital outpatient prospective payment rates for
2016 announced by the Centers for Medicare and Medicaid Services
(CMS), we estimate that the average CMS reimbursement rate for
delivery of Gamma Knife or LINAC one session cranial radiosurgery
and separately reimbursable ancillary codes (exclusive of
co-insurance and other adjustments) will decrease by approximately
10% compared to 2015. To put this in perspective, we estimate that
CMS’s Gamma Knife rate reduction would have reduced AMS' annualized
2015 revenue by approximately 2%. So with our operations running
increasingly efficiently and the impact of Medicare rate reductions
on our revenue likely to be minimal, we expect our Gamma Knife
business to deliver another solid performance in 2016.
"We look forward with enthusiasm to the initiation of patient
treatments next month at AMS' first proton therapy center now
nearing completion at The Marjorie and Leonard Williams Center for
Proton Therapy at UF Health Cancer Center-Orlando Health in
Florida. In a major milestone, the MEVION S250 at this center has
completed its rigorous acceptance testing and has entered the
clinical commissioning phase. Clinical commissioning is the final
step before the first patient is treated. During the rigorous
acceptance testing phase, the MEVION S250 in Orlando met or
exceeded all specifications. Its operational control has been
officially transitioned to the physics and radiation oncology
proton teams at UF Health Cancer Center.
"We recently announced that AMS has entered into a definitive
agreement for the financing of our Orlando center. We expect our
success in guiding this complex project from inception through
delivery and installation of the MEVION S250 proton system and the
placing of permanent financing to facilitate our negotiations with
other hospitals around the country that have expressed interest in
partnering with AMS to develop proton centers of their own. We
believe that the clinical advantages of proton therapy in the
treatment of a wide range of cancers will support rapid growth in
the application of this advanced therapeutic technology, and we are
convinced that AMS will 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) 351-9852 at least 5 minutes prior to the scheduled start
time, and mention confirmation number 42198893. 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 42198893 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, 2014, its quarterly reports on
Form 10-Q for the three months ended March 31, 2015, June 30, 2015,
and September 30, 2015, and the definitive Proxy Statement for the
Annual Meeting of Shareholders held on June 16, 2015.
Selected Financial Data
(unaudited)
Summary of Operations Data Three
months ended
Twelve months ended December 31, December 31, 2015 2014 2015 2014
Medical services revenue $ 4,162,000 $ 3,992,000 $
16,548,000 $ 15,417,000 Costs of revenue 2,300,000
2,450,000 9,833,000 10,138,000
Gross margin 1,862,000 1,542,000 6,715,000 5,279,000 Selling
& administrative expense 792,000 838,000 3,496,000 3,630,000
Interest expense 339,000 323,000
1,239,000 1,699,000 Operating income(loss)
731,000 381,000 1,980,000 (50,000 )
(Loss) on write down of investment in
equity securities
(26,000 ) -- (2,140,000 ) -- (Loss) on sale of subsidiary -- -- --
(572,000 ) Gain on foreign currency transactions -- -- -- 161,000
Other income 4,000 6,000 18,000
28,000 Income(loss) before income taxes
709,000 387,000 (142,000 ) (433,000 ) Income tax expense
106,000 96,000 434,000
129,000 Net income(loss) $ 603,000 $ 291,000 $ (576,000 ) $
(562,000 )
Less: Net (income) loss attributable to
non-controlling interest
(326,000 ) (233,000 ) (946,000 )
(390,000 )
Net income(loss) attributable to American
Shared Hospital Services
$ 277,000 $ 58,000 $ (1,522,000 ) $ (952,000 )
Earnings(loss) per common share: Basic $ 0.05 $ 0.01
$ (0.28 ) $ (0.19 ) Assuming dilution $ 0.05 $ 0.01 $
(0.28 ) $ (0.19 )
Balance Sheet Data
December 31, 2015 2014 Cash and cash
equivalents $ 2,209,000 $ 1,059,000 Current assets $ 6,007,000 $
14,247,000 Certificate of deposit $ -- $ 9,000,000 Investment in
equity securities $ 579,000 $ 2,709,000 Total assets $ 54,114,000 $
67,528,000 Current liabilities $ 8,698,000 $ 16,251,000
Shareholders' equity $ 25,180,000 $ 26,154,000
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160329005316/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
American Shared Hospital... (AMEX:AMS)
Historical Stock Chart
From Aug 2024 to Sep 2024
American Shared Hospital... (AMEX:AMS)
Historical Stock Chart
From Sep 2023 to Sep 2024