via NewMediaWire -- American Shared Hospital Services (NYSE
American: AMS) (the "Company"), a leading provider of turnkey
technology solutions for stereotactic radiosurgery and advanced
radiation therapy equipment and services, today announced financial
results for the second quarter ending June 30, 2022.
Second Quarter 2022 Financial
Highlights
-
Total revenue in the second quarter was $5,034,000, an increase of
12.5% from the comparable period in 2021. Total proton
therapy revenue and fractions increased 49.0% and 19.4%,
respectively, period-over-period.Gamma Knife revenue and volumes
for same centers in operation decreased 7% and 6%, respectively,
when compared to Gamma Knife volumes for those same centers during
the same period of the prior year.
- Gross margin increased 29.9% in dollars, to $2.1 million.
The gross margin percentage expanded 560 basis points to 41.5% of
revenue compared to 35.9% for the second quarter of
2021.
-
Operating income for the second quarter of 2022 was $793,000
compared to operating income of $352,000 in the second quarter of
2021, an increase of 125%.
-
Net income attributable to American Shared Hospital Services in the
second quarter was $497,000, or $0.08 per diluted share, compared
to a net loss of $87,000, or ($0.01) per diluted share, for the
same period in the prior year, and 85% higher compared to the
Company’s net income attributable to American Shared Hospital
Services in the first quarter of 2022 of $269,000, or $0.04 per
diluted share.
-
Adjusted EBITDA, a non-GAAP financial measure, was $2,129,000 for
the second quarter of 2022, compared to $1,829,000 for the second
quarter of 2021, an increase of 16.4%.
-
Cash at June 30, 2022 was $11,967,000, an increase of $3,704,000
from the December 31, 2021 balance of $8,263,000.
- In May 2022, AMS strengthened its global sales and marketing
team with the appointment of Tim Keel, a senior healthcare finance
professional, to a new VP of Sales and Marketing position to lead
an enhanced outreach sales strategy.
-
In April 2022, the Company announced that it had signed a joint
venture agreement to partner in a radiation therapy facility in
Puebla, Mexico, located 80 miles from Mexico City, its third
international center.
Ray Stachowiak, Chief Executive Officer,
commented, “AMS had a strong second quarter with volumes continuing
to rebound to pre-pandemic levels. This was especially true of the
Company’s PBRT site which reported increases in revenue and
fractions of 49.0% and 19.4%, respectively. Our
stand-alone wholly owned facilities in Peru and Ecuador have also
begun to return to pre-pandemic levels and we expect this trend to
continue through the year. Average reimbursement rates increased
for both Gamma Knife and PBRT procedures, and combined with the
increased volumes for PBRT, drove a 12.5% increase in total revenue
to $5.0 million, the highest since the third quarter of 2019. Gross
margin increased 30% to $2.1 million, or 41.5% of revenue, which is
near pre-pandemic highs.
“Operating Income increased 125% to $793,000
from $352,000 in the year ago quarter, and net income was $497,000,
or $0.08 per share. This is the highest net income we’ve reported
since the fourth quarter of 2017, over four years ago, and the
fourth consecutive quarter of increases, building on the first
quarter’s net income of $269,000, or $0.04 per share, the $219,000,
or $0.04 per share, that was reported in the fourth quarter of 2021
and the $33,000, or $0.01 per share, reported in the third quarter
of 2021. This increased profitability has contributed to our cash
balances reaching almost $12 million, or approximately $1.91 per
share, based on the June 30th fully diluted share count of 6.3
million shares.
“Our significant cash balances and $7 million
unused credit line provide us with the resources we need to pursue
new business opportunities more aggressively. We recently hired a
highly experienced healthcare financial professional to head up our
expanded sales and marketing efforts. We’re also continuing to move
ahead on the new radiation center joint venture in Puebla, Mexico
that we announced in April. We continue to expect to reopen the
upgraded center early in 2023. With strong operating trends gaining
traction, significant cash resources, and increased investment in
sales and marketing initiatives, we believe AMS is on its way to
sustained growth and profitability,” concluded Mr. Stachowiak.
Financial Results for the Three Months
Ended June 30, 2022
For the three months ended June 30, 2022,
revenue increased 12.5% to $5,034,000 compared to $4,476,000 in the
year ago period and an increase of 3.9% compared to $4,847,000 for
the first quarter of 2022.
Second quarter revenue for the Company's proton
therapy system installed at Orlando Health in Florida increased
49.0% to $2,308,000 compared to revenue for the second quarter of
2021 of $1,549,000 due to increased volumes and higher average
reimbursement for the current period.
Total proton therapy fractions in the second
quarter were 1,324, an increase of 19.4% compared to 1,109 proton
therapy fractions in the second quarter of 2021 primarily due
to the impact from the COVID-19 pandemic on the prior year’s
results.
Revenue for the Company's Gamma Knife operations
decreased 6.9% to $2,726,000 for the second quarter of 2022
compared to $2,927,000 for the second quarter of 2021. The
decrease was due to a decrease in procedures, offset by an increase
in average reimbursement. The increase in average
reimbursement was driven by an increase in the average rate at the
Company’s retail sites caused by a favorable shift in payor mix to
more commercial payors. Revenue for same centers in
operation, which excludes the two Gamma Knife contracts that
expired, one each in the first and fourth quarters of 2021,
decreased 7% when compared to those same centers during the same
period of the prior year.
Gamma Knife procedures decreased by 10.9% to 335
for the second quarter of 2022 from 376 in the same period of the
prior year primarily due to the expiration of the two contracts,
noted above. Gamma Knife volumes for same centers in operation
decreased 6.0% when compared to Gamma Knife volumes for those same
centers during the same period of the prior year, which are viewed
as normal cyclical fluctuations.
Gross margin for the second quarter of 2022
increased 29.9% to $2,088,000, or 41.5% of revenue, compared to
gross margin of $1,607,000, or 35.9% of revenue, for the second
quarter of 2021. The increase was achieved despite
higher operating costs at the Company’s international sites driven
by increased volumes.
Selling and administrative costs increased by
5.1% to $1,146,000 for the second quarter of 2022 compared to
$1,090,000 for the same period in the prior year due to higher
sales, legal and related fees associated with new business
opportunities.
Operating income for the second quarter of 2022
was $793,000 compared to operating income of $352,000 in the second
quarter of 2021, an increase of 125%, reflecting higher revenue and
average reimbursement rates for both Gamma Knife and PBRT
procedures. Operating income in the first quarter of 2022 was
$600,000.
Income tax expense increased to $248,000 for the
three-month period ended June 30, 2022 compared to a tax benefit of
$24,000 for the same period in the prior year. The increase in
income tax expense for the current period was due to increased
earnings during the current period, return-to-provision adjustments
arising from foreign income tax returns filed during the current
period, as well as permanent domestic tax differences that are
expected to continue through the end of this year.
Net income attributable to American Shared
Hospital Services in the second quarter 2022 was $497,000, or
$0.08 per diluted share, compared to a net loss of $87,000, or
($0.01) per diluted share, for the second quarter of 2021. The
increase in net income was due to increased revenues and higher
average reimbursement rates on both Gamma Knife and PBRT
procedures. The 2021 second quarter includes a pretax loss on the
extinguishment of debt of $401,000. Net income attributable to
American Shared Hospital Services in the second quarter of 2021,
excluding the net effect of this extinguishment of debt after
non-controlling interest and income taxes of $244,000, was
$157,000, or $0.03 per diluted share. Fully diluted weighted
average common shares outstanding were 6,281,000 and 5,802,000 for
the second quarter of 2022 and 2021, respectively.
Adjusted EBITDA, a non-GAAP financial measure,
was $2,129,000for the second quarter of 2022, compared to
$1,829,000 for the second quarter of 2021, an increase of 16.4%.
The increase was due to higher operating income period over
period.
Financial Results for the Six Months Ended
June 30, 2022
For the six months ended June 30, 2022, revenue
increased 11.8% to $9,881,000 compared to revenue of $8,840,000 for
the first six months of 2021. Gamma Knife revenue decreased 4.9% to
$5,534,000 for the first half of 2022 compared to $5,819,000 for
the first half of 2021. The number of Gamma Knife procedures in the
first six months of 2022 was 664, a decrease of 9.2% compared to
731 Gamma Knife procedures in the comparable period of 2021. Proton
therapy revenue increased 41.1% to $4,347,000 for the first half of
2022 compared to $3,080,000 for the first half of 2021. Total
proton therapy fractions in the first six months of 2022 were
2,952, an increase of 26.2% compared to 2,340 proton therapy
fractions in the comparable period of 2021.
Net income attributable to American Shared
Hospital Services for the first six months of 2022 was $766,000, or
$0.12 per diluted share, compared to a net loss of $58,000, or
$(0.01) per diluted share, for the first six months of
2021. Net income attributable to American Shared Hospital
Services excluding the net effect of the extinguishment of debt
after non-controlling interest and income taxes of $244,000, was
$186,000, or $0.03 per diluted share.Adjusted EBITDA, a non-GAAP
financial measure, was $4,051,000 for the first six months of 2022,
compared to $3,462,000 for the first six months of 2021.
Balance Sheet Highlights
At June 30, 2022, cash, cash equivalents, and
restricted cash was $11,967,000, compared to $8,263,000 at December
31, 2021. American Shared Hospital Services' equity
(excluding non-controlling interests in subsidiaries) at June 30,
2022 and December 31, 2021 was $20,823,000 or $3.32 per diluted
share and $19,893,000, or $3.28 per diluted share,
respectively.
Conference Call and Webcast
Information
AMS has scheduled a conference call at 9:00 a.m.
PT (12:00 p.m. ET) tomorrow, August 12, 2022. To participate,
please call 1 (844) 413-3972 at least 10 minutes prior to the start
of the call and ask to join the American Shared Hospital Services
call. A simultaneous Webcast of the call may be accessed through
the Company's website, http://www.ashs.com, or
at http://www.streetevents.com for institutional
investors.
A replay of the call will be available at 1 (877)
344-7529, access code 8516286, through August 19, 2022. The call
will also be available for replay on the Company’s
website, http://www.ashs.com, for one year.
About American Shared Hospital Services
(NYSE American: AMS)
American Shared Hospital Services is a leading
provider of turnkey technology solutions for stereotactic
radiosurgery and advanced radiation therapy equipment and
services. AMS is a leading provider 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, IMRT and MR/LINAC systems. For more
information, please visit: www.ashs.com .
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 of the Company and the expansion of the
Company’s Gamma Knife, proton therapy and MR/LINAC business, which
involve risks and uncertainties including, but not limited to, the
risks of economic and market conditions, the risks of variability
of financial results between quarters, the risks of the Gamma Knife
and proton therapy businesses, the risks of developing The
Operating Room for the 21st Century program, the risks of
changes to CMS reimbursement rates or reimbursement methodology,
the risks of the timing, financing, and operations of the Company’s
Gamma Knife, proton therapy, and MR/LINAC businesses, the risks of
the COVID-19 pandemic and its effect on the Company’s business
operations and financial condition, the risk of expanding within or
into new markets, the risk that the integration or continued
operation of acquired businesses could adversely affect financial
results and the risk that current and future acquisitions may
negatively affect the Company’s financial position. 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 Quarterly Report on Form 10-Q for the three month period
ended March 31, 2022, the Annual Report on Form 10-K for the year
ended December 31, 2021 and the definitive Proxy Statement for the
Annual Meeting of Shareholders that was held on June 21, 2022.
Non-GAAP Financial Measure
Adjusted EBITDA, the non-GAAP measure presented
in this press release and supplementary information, is not a
measure of performance under the accounting principles generally
accepted in the United States ("GAAP"). This non-GAAP
financial measure has limitations as an analytical tool, including
that it does not have a standardized meaning. When assessing our
operating performance, this non-GAAP financial measure should not
be considered a substitute for, and investors should also consider,
income before income taxes, income from operations, net income
attributable to the Company, earnings per share and other measures
of performance as defined by GAAP as indicators of the Company's
performance or profitability.
EBITDA is a non-GAAP financial measure
representing our earnings before interest expense, income tax
expense, depreciation, and amortization. We define Adjusted EBITDA
as net income before interest expense, income tax expense,
depreciation and amortization expense, stock-based compensation
expense, and loss on extinguishment of debt.
We use this non-GAAP financial measure as a
means to evaluate period-to-period comparisons. Our management
believes that this non-GAAP financial measure provides 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 loss on
extinguishment of debt and stock-based compensation expense.
We believe that both management and investors benefit from
referring to this non-GAAP financial measure in assessing our
performance.
Contacts:
American Shared Hospital ServicesRay
StachowiakChief Executive Officerrstachowiak@ashs.com
Investor RelationsPCG AdvisoryStephanie PrinceP:
(646) 863-6341sprince@pcgadvisory.com
American Shared Hospital Services |
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Statement of
Operations |
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Summary of Operations Data |
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(Unaudited) |
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Three months ended June 30, |
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Six months ended June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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Revenues |
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$5,034,000 |
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$4,476,000 |
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$9,881,000 |
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$8,840,000 |
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Costs of revenue |
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2,946,000 |
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2,869,000 |
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5,726,000 |
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5,799,000 |
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Gross margin |
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2,088,000 |
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1,607,000 |
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4,155,000 |
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3,041,000 |
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Selling and administrative
expense |
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1,146,000 |
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1,090,000 |
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2,465,000 |
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2,174,000 |
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Interest expense |
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149,000 |
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165,000 |
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297,000 |
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425,000 |
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Operating income |
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793,000 |
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352,000 |
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1,393,000 |
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442,000 |
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(Loss) on extinguishment of
debt |
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- |
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-401,000 |
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- |
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-401,000 |
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Other (loss) income |
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-5,000 |
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-2,000 |
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-5,000 |
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1,000 |
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Income (loss) before income
taxes |
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788,000 |
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-51,000 |
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1,388,000 |
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42,000 |
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Income tax expense
(benefit) |
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248,000 |
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-24,000 |
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454,000 |
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-18,000 |
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Net income
(loss) |
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540,000 |
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-27,000 |
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934,000 |
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60,000 |
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Less: Net income attributable to
non-controlling interest |
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-43,000 |
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-60,000 |
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-168,000 |
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-118,000 |
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Net income (loss) attributable
to American Shared Hospital Services |
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$497,000 |
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($87,000) |
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$766,000 |
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($58,000) |
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Income (loss) per common
share: |
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Basic |
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$0.08 |
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($0.01) |
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$0.12 |
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($0.01) |
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Assuming dilution |
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$0.08 |
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($0.01) |
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$0.12 |
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($0.01) |
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Weighted Average Shares |
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Basic |
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6,203,000 |
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5,802,000 |
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6,187,000 |
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5,801,000 |
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Assuming dilution |
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6,281,000 |
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5,802,000 |
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6,266,000 |
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5,801,000 |
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Balance Sheet Data |
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(Unaudited) |
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6/30/22 |
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12/31/21 |
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Cash, cash equivalents and
restricted cash |
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$11,967,000 |
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$8,263,000 |
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Current assets |
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$16,840,000 |
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$15,087,000 |
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Total assets |
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$44,525,000 |
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$45,430,000 |
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Current liabilities |
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$4,630,000 |
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$5,891,000 |
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Shareholders' equity |
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$25,337,000 |
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$24,239,000 |
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American Shared
Hospital Services |
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Adjusted
EBITDA |
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Reconciliation of
GAAP to Non-GAAP Adjusted Results |
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(Unaudited) |
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Three months ended June 30, |
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Six months ended June 30, |
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2022 |
2021 |
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2022 |
2021 |
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Net Income
(Loss) |
$497,000 |
$(87,000) |
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$766,000 |
$(58,000) |
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Plus: |
Income Tax Expense
(Benefit) |
248,000 |
(24,000) |
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454,000 |
(18,000) |
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Interest Expense |
149,000 |
165,000 |
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297,000 |
425,000 |
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Depreciation and Amortization
Expense |
1,163,000 |
1,278,000 |
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2,375,000 |
2,509,000 |
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Stock-Based Compensation
Expense |
72,000 |
96,000 |
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159,000 |
203,000 |
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Loss on Extinguishment of
Debt |
- |
401,000 |
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- |
401,000 |
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Adjusted
EBITDA |
$2,129,000 |
$1,829,000 |
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$4,051,000 |
$3,462,000 |
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