AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS) (the
"Company", "AMS"), a leading provider of turnkey technology
solutions for advanced radiosurgical and radiation therapy
services, today announced financial results for the first quarter
of 2017.
First Quarter Results
For the three months ended March 31, 2017, medical services
revenue increased 16.0% to $4,914,000 compared to medical services
revenue of $4,238,000 for the first quarter of 2016.
First quarter revenue for the Company's initial proton therapy
system installed at The Marjorie and Leonard Williams Center for
Proton Therapy at UF Health Cancer Center-Orlando Health in Florida
was $1,155,000.
Revenue for the Company's Gamma Knife operations decreased to
$3,619,000 for the first quarter of 2017 compared to $4,125,000 for
the first quarter of 2016, primarily because two sites were offline
during this year's first quarter for Cobalt-60 reload.
Net income attributable to the Company for the first quarter of
2017 increased to $293,000, or $0.05 per share. This compares to
net income attributable to the Company for the first quarter of
2016 of $51,000, or $0.01 per share.
Medical services gross margin for the first quarter of 2017
increased to 47.7% of revenue, compared to medical services gross
margin of 40.9% of revenue for the first quarter of 2016, primarily
reflecting the increase in revenue from proton therapy.
Operating income increased 51.1% to $754,000 for the first
quarter of 2017 compared to operating income of $499,000 for the
same period a year earlier. Income before income taxes increased
91.4% to $758,000 for the first quarter of 2017 compared to
$396,000 for the first quarter of 2016. Non-GAAP pre-tax income,
net of income attributable to non-controlling interest, was
$509,000 for the first quarter of 2017. This compares to non-GAAP
pre-tax income, net of income attributable to non-controlling
interest, of $115,000 for the first quarter of 2016.
Selling and administrative expenses for the first quarter of
2017 increased to $1,139,000, compared to selling and
administrative expenses of $949,000 for the first quarter of 2016.
Interest expense increased to $453,000 for the first quarter of
2017, compared to interest expense of $285,000 for the first
quarter of 2016, primarily reflecting the addition of the proton
center in Orlando.
Adjusted EBITDA, a non-GAAP financial measure, was $2,616,000
for the first quarter of 2017, compared to $2,129,000 for the first
quarter of 2016. 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, 2017, cash and cash equivalents was $2,403,000,
compared to $2,871,000 at December 31, 2016. Shareholders' equity
at March 31, 2017 was $27,774,000, or $4.87 per outstanding share.
This compares to shareholders' equity at December 31, 2016 of
$27,173,000, or $4.97 per outstanding share.
CEO Comments
Chairman and Chief Executive Officer Ernest A. Bates, M.D. said,
"Patient treatments that began in April 2016 at our proton center
at UF Health Cancer Center-Orlando Health continue to drive
improved financial performance for AMS. Treatment volume at this
center increased to 1,220 fractions in the first quarter, compared
to 1,019 fractions performed in last year's fourth quarter, 869
fractions performed in the third quarter and 442 fractions
performed in the second quarter. The reliability and throughput of
the MEVION S250 proton system we supplied Orlando Health is meeting
or exceeding our expectations, and we believe there is room for
further growth in treatment volume.
"The decrease in revenue in our Gamma Knife business in this
year's first quarter was the anticipated consequence of routine
Cobalt-60 reload at two of our centers. As previously announced, we
will lose one of our sites due to the expiration of its contract
term in this year's second quarter; however, we expect the Gamma
Knife® Perfexion™ system we recently contracted to supply
to Bryan Medical Center in Lincoln, Nebraska to begin treating
patients in this year's second half. We also expect patient
treatments to begin in this year's third quarter on a Gamma Knife
located at the Air Force Hospital in Lima, Peru.
"We are focused on taking advantage of the attractive growth
opportunities available to us in both our proton and Gamma Knife
businesses. Building on the success we have achieved to date, we
are confident that AMS will deliver further growth in the years
ahead."
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) 588-4973 at least 5 minutes prior to the scheduled start
time, and mention confirmation number 4493 2897. 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 14 days at these same internet
addresses, or by dialing 888-843-7419 and entering 4493 2897# 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,
and the latest IGRT and IMRT systems. 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 (including statements regarding the expected continued
growth in treatment volume of the MEVION S250 system, the expansion
of the Company's proton therapy business, the growth of the
Company, and the timing of treatments by new Gamma Knife systems)
which involve risks and uncertainties including, but not limited
to, the risks of variability of financial results between quarters,
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, 2016, and the definitive Proxy
Statement for the Annual Meeting of Shareholders to be held on June
27, 2017.
Non-GAAP Financial Measure
None of Adjusted EBITDA and non-GAAP pre-tax income, the
non-GAAP measures presented in this press release and supplementary
information, is a measure of performance under the accounting
principles generally accepted in the United States ("GAAP"). These
non-GAAP financial measures should not be considered as substitute
for, and investors should also consider, income (loss) before
income taxes, income from operations, net income attributable to
the Company, earnings (loss) per share and other measures of
performance as defined by GAAP as indicators of the Company's
performance or profitability. We use these non-GAAP financial
measures as a means to evaluate period-to-period comparisons. Our
management believes that these non-GAAP financial measures provide
meaningful supplemental information regarding our performance by
excluding certain expenses and charges that may not be indicative
of the operating results of our recurring core business, such as
the loss on early extinguishment of debt. We believe that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing our performance.
AMERICAN SHARED HOSPITAL SERVICES Selected
Financial Data (unaudited)
Summary of Operations Data Three months ended March
31, 2017 2016
Revenue
$
4,914,000
$
4,238,000
Costs of revenue
2,568,000
2,505,000
Gross margin
2,346,000
1,733,000
Selling & administrative expense
1,139,000
949,000
Interest expense
453,000
285,000
Operating income
754,000
499,000
(Loss) on early extinguishment of debt
--
(108,000
)
Interest & other income
4,000
5,000
Income before income taxes
758,000
396,000
Income tax expense
216,000
64,000
Net income
$
542,000
$
332,000
Less: Net income attributable to
non-controlling interest
(249,000
)
(281,000
)
Net income attributable to American Shared
Hospital Services
$
293,000
$
51,000
Earnings per common share:
Basic
$
0.05
$
0.01
Assuming dilution
$
0.05
$
0.01
Balance Sheet Data
March 31,
December 31,
2017
2016
Cash and cash equivalents
$
2,403,000
$
2,871,000
Current assets
$
8,765,000
$
8,388,000
Investment in equity securities
$
579,000
$
579,000
Total assets
$
60,433,000
$
60,598,000
Current liabilities
$
8,438,000
$
8,681,000
Shareholders' equity
$
27,774,000
$
27,173,000
AMERICAN SHARED HOSPITAL SERVICES Selected
Financial Data (unaudited)
Adjusted EBITDA
Three months endedMarch 31,
2017 2016 Net Income $ 293,000 $ 51,000 Plus:
Income Tax Expense $ 216,000 $ 64,000 Interest Expense $ 453,000 $
285,000 Depreciation and Amortization Expense $ 1,604,000 $
1,562,000 Stock-Based Compensation Expense $ 50,000 $ 59,000 (Loss)
on Early Extinguishment of Debt $ -- $ 108,000 Adjusted
EBITDA $ 2,616,000 $ 2,129,000
AMERICAN SHARED HOSPITAL
SERVICES Selected Financial Data (unaudited)
Non-GAAP Pre-tax Income
Three months ended
March 31,
2017
2016
Income before income taxes
$ 758,000
$
396,000
Less: Net (income) attributable to
non-controlling interest
$ (249,000
)
$
(281,000
)
Non-GAAP Pre-tax Income
$ 509,000
$
115,000
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170515005375/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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