AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS) (the
"Company"), a leading provider of turnkey technology solutions for
advanced radiosurgical and radiation therapy services, today
announced financial results for the fourth quarter and 2016.
Fourth Quarter Results
For the three months ended December 31, 2016, medical services
revenue increased 21.6% to $5,060,000 compared to medical services
revenue of $4,162,000 for the fourth quarter of 2015.
Fourth 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 $903,000.
Revenue for the Company's Gamma Knife operations was $4,056,000
for the fourth quarter of 2016 compared to $4,028,000 for the
fourth quarter of 2015, as treatment volume was essentially
unchanged versus prior year.
Net income attributable to the Company for the fourth quarter of
2016 increased 63.2% to $452,000, or $0.08 per share. This compares
to net income attributable to the Company for the fourth quarter of
2015 of $277,000, or $0.05 per share.
Medical services gross margin for the fourth quarter of 2016
increased to 55.9% of revenue, compared to medical services gross
margin of 44.7% of revenue for the fourth quarter of 2015,
reflecting the increase in revenue from proton therapy as well as a
favorable mix of Gamma Knife procedures.
Operating income increased 98.1% to $1,448,000 for the fourth
quarter of 2016 compared to operating income of $731,000 for the
same period a year earlier. Income before income taxes was
$1,452,000 for the fourth quarter of 2016 compared to $709,000 for
the fourth quarter of 2015. Non-GAAP pre-tax income, net of income
attributable to non-controlling interest, was $971,000 for the
fourth quarter of 2016. This compares to non-GAAP pre-tax income,
net of income attributable to non-controlling interest, of $383,000
for the fourth quarter of 2015.
Selling and administrative expenses for the fourth quarter of
2016 increased to $891,000, compared to selling and administrative
expenses of $792,000 for the fourth quarter of 2015. With the
addition of the proton center in Orlando, interest expense
increased to $488,000 for the fourth quarter of 2016, compared to
interest expense of $339,000 for the fourth quarter of 2015.
Adjusted EBITDA, a non-GAAP financial measure, was $2,877,000
for the fourth quarter of 2016, compared to $2,340,000 for the
fourth 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.
Twelve Months Results
For the twelve months ended December 31, 2016, medical services
revenue increased 13.0% to $18,700,000 compared to medical services
revenue of $16,548,000 for 2015.
Excluding treatments at a customer site whose contract expired
at the end of the first quarter of 2015, Gamma Knife volume was
essentially unchanged for 2016 compared to 2015. Revenue for the
Company's proton therapy system for the April through December 2016
period was $2,149,000.
Net income attributable to the Company for 2016 was $930,000, or
$0.17 per share. This compares to a net loss attributable to the
Company for 2015 of $1,522,000, or ($0.28) per share. Excluding the
loss on early extinguishment of debt of $108,000, net of estimated
taxes, non-GAAP net income attributable to the Company for 2016 was
$994,000, or $0.18 per share. This compares to non-GAAP net income
attributable to the Company for 2015, excluding the loss
attributable to an impairment charge, of $618,000, or $0.11 per
share.
Adjusted EBITDA, a non-GAAP financial measure, was $10,165,000
for 2016, compared to $8,654,000 for 2015.
Balance Sheet Highlights
At December 31, 2016, cash and cash equivalents was $2,871,000
compared to $2,209,000 at December 31, 2015. Shareholders' equity
at December 31, 2016 was $27,173,000, or $4.97 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, "2016 was an excellent year for AMS. Our first proton center
began treating patients in April and, not coincidentally, net
income for the year was the highest since 2007. We are excited by
the opportunities before us.
"The MEVION S250 proton system we supplied UF Health Cancer
Center-Orlando Health continues to deliver outstanding performance.
Fourth quarter treatment volume increased to 1,019 fractions, up
from 869 fractions performed in the third quarter and 442 fractions
performed in the second quarter. We believe there is room for
additional growth in treatment volume in 2017.
"Proton treatment accuracy and patient positioning took a
significant step forward in January as Orlando Health treated the
first patient on its MEVION S250 in conjunction with a mobile,
diagnostic computed tomography (CT) scanner. This advanced 3D
CT-based technology, integrated with the MEVION S250's proprietary
patient positioning system, provides superior, high-resolution
images that can be used for both positioning and adaptive
treatment. We are proud that the device AMS supplied Orlando Health
is the first Mevion system to integrate this functionality.
"Even as we negotiate with several hospitals to develop
additional proton centers, we continue to build our Gamma Knife
business. In March 2017, we entered into a contract to supply
a Gamma Knife® Perfexion™ system to Bryan Medical Center in
Lincoln, Nebraska. This new Perfexion system is expected to begin
treating patients in the second half of 2017. Later this year we
also expect patient treatments to begin on a Gamma Knife located at
the Air Force Hospital in Lima, Peru. While we will be losing one
of our sites due to the expiration of its contract term in this
year's second quarter, AMS continues to lead the way in making the
Gamma Knife available to hospitals and their brain tumor,
trigeminal neuralgia and vascular malformation patients."
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 4460 4047. 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 4460 4047# 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 volume of the MEVION S250 system, the expansion of the
Company's proton therapy business, 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, 2015, its Form 10-Q for the quarters ended March 31, 2016, June
30, 2016 and September 30, 2016, and the definitive Proxy Statement
for the Annual Meeting of Shareholders held on June 21, 2016.
Non-GAAP Financial Measure
None of Adjusted EBITDA, non-GAAP pre-tax income, non-GAAP net
income attributable to the Company, and non-GAAP net income per
share, 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 impairment charge related to the Company's
equity investment in Mevion and 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
Twelve months ended December 31, December 31, 2016
2015 2016 2015 Medical services
revenue $ 5,060,000 $ 4,162,000 $ 18,700,000 $ 16,548,000 Costs of
revenue 2,233,000 2,300,000
9,905,000 9,833,000 Gross margin
2,827,000 1,862,000 8,795,000 6,715,000 Selling &
administrative expense 891,000 792,000 3,802,000 3,496,000 Interest
expense 488,000 339,000
1,707,000 1,239,000 Operating income
1,448,000 731,000 3,286,000 1,980,000 (Loss) on early
extinguishment of debt -- -- (108,000 ) --
(Loss) write down of investment in equity
securities
-- (26,000 ) -- (2,140,000 ) Other income 4,000
4,000 15,000 18,000
Income(loss) before income taxes 1,452,000 709,000 3,193,000
(142,000 ) Income tax expense 519,000 106,000
943,000 434,000 Net
income(loss) $ 933,000 $ 603,000 $ 2,250,000 $ (576,000 )
Less: Net (income) attributable to
non-controlling interest
(481,000 ) (326,000 ) (1,320,000 )
(946,000 )
Net income (loss) attributable to American
Shared Hospital Services
$ 452,000 $ 277,000 $ 930,000 $ (1,522,000 )
Earnings(loss) per common share: Basic $ 0.08 $ 0.05
$ 0.17 $ (0.28 )
Assuming dilution
$
0.08
$
0.05
$
0.17
$
(0.28
)
Balance Sheet Data December 31, 2016 2015 Cash and
cash equivalents $ 2,871,000 $ 2,209,000 Current assets $ 8,388,000
$ 6,007,000 Investment in equity securities $ 579,000 $ 579,000
Total assets $ 60,598,000 $ 54,114,000 Current liabilities $
8,681,000 $ 8,698,000 Shareholders' equity $ 27,173,000 $
25,180,000
AMERICAN SHARED HOSPITAL SERVICES
Selected Financial Data (unaudited)
Adjusted EBITDA Three months ended
Twelve months ended December 31, December 31, 2016
2015 2016 2015 Net Income (loss)
$ 452,000 $ 277,000 $ 930,000 $ (1,522,000 ) Plus: Income
Tax Expense $ 519,000 $ 106,000 $ 943,000 $ 434,000 Interest
Expense $ 488,000 $ 339,000 $ 1,707,000 $ 1,239,000 Depreciation
and Amortization Expense $ 1,364,000 $ 1,520,000 $ 6,262,000 $
6,139,000 Stock-Based Compensation Expense $ 54,000 $ 72,000 $
215,000 $ 224,000
Loss on write down of Investment in equity
securities
$ -- $ 26,000 $ -- $ 2,140,000 Early Extinguishment of Debt $ -- $
-- $ 108,000 $ -- Adjusted EBITDA $ 2,877,000 $
2,340,000 $ 10,165,000 $ 8,654,000
AMERICAN SHARED HOSPITAL
SERVICES
Selected Financial Data
(unaudited)
Non-GAAP Pre-tax and Net Income (loss)
Three months ended Twelve months
ended December 31, December 31, 2016 2015 2016
2015 Income (loss) before income taxes $ 1,452,000 $ 709,000
$ 3,193,000 $ (142,000 )
Less: Net (income) attributable to
non-controlling interest
$ (481,000 ) $ (326,000 ) $ (1,320,000 ) $ (946,000 )
Non-GAAP pre-tax income (loss) $ 971,000 $ 383,000 $ 1,873,000 $
(1,088,000 ) Net Income (loss) $ 452,000 $ 277,000 $ 930,000
$ (1,522,000 )
Loss on write down of investment in equity
securities
$ -- $ 26,000 $ -- $ 2,140,000
Early extinguishment of debt, net of
estimated tax
$ -- $ -- $ 64,000 $ -- Non-GAAP
Net Income $ 452,000 $ 303,000 $ 994,000 $
618,000 Non-GAAP Net Income Per Share $ 0.08 $
0.05 $ 0.18 $ 0.11
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version on businesswire.com: http://www.businesswire.com/news/home/20170323005403/en/
American Shared Hospital ServicesErnest A. Bates, M.D., (415)
788-5300Chairman and Chief Executive Officereabates@ashs.comBerkman
AssociatesNeil Berkman, (310)
477-3118Presidentinfo@berkmanassociates.com
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