Attached files
| file | filename |
|---|---|
| 8-K - AMERICAN SHARED HOSPITAL SERVICES | v200948_8k.htm |
AMERICAN
SHARED HOSPITAL SERVICES
REPORTS
THIRD QUARTER RESULTS
San Francisco, CA, November 4,
2010 — AMERICAN SHARED HOSPITAL
SERVICES (NYSE AMEX:AMS), a leading provider of turnkey
technology solutions for advanced radiosurgical and radiation therapy services,
today announced financial results for the third quarter and first nine months of
2010.
Third
Quarter Results
For the
three months ended September 30, 2010, revenue increased 9% to $4,280,000
compared to $3,926,000 for the third quarter of 2009, and increased sequentially
for the second consecutive quarter. Operating income for this year's
third quarter increased 14% to $196,000 compared to $172,000 for the third
quarter of 2009. Pre-tax income increased 30% to $223,000 and net
income for the third quarter of 2010 was $6,000, or $0.00 per
share. This compares to pre-tax income of $172,000 and net income of
$17,000, or $0.00 per share, for the third quarter of 2009.
The total
number of Gamma Knife®
procedures performed during this year's third quarter increased 15% over same
quarter last year, and are now up 5% year-to-date. Gross margin
improved to 43% for the third quarter of 2010 compared to 40% for the third
quarter of 2009.
Selling
and administrative expenses for this year's third quarter increased to
$1,091,000 compared to $875,000 for the third quarter of 2009, and were
essentially flat sequentially, as the Company continues to invest in its
domestic and international growth initiatives.
Cash
flow, as measured by earnings before interest, taxes, depreciation and
amortization (EBITDA), was $2,067,000 for the third quarter and $6,052,000 for
the first nine months of 2010, compared to $2,220,000 for the third quarter and
$6,360,000 for the first nine months of 2009.
At
September 30, 2010, AMS reported cash, cash equivalents and certificates of
deposit of $10,091,000. This compares to cash, cash equivalents and certificates
of deposit of $9,833,000 at December 31, 2009. Shareholders' equity
at September 30, 2010 was $22,958,000, or $4.99 per outstanding
share. This compares to shareholders' equity at December 31, 2009 of
$22,755,000, or $4.95 per outstanding share.
Nine
Month Results
For the
nine months ended September 30, 2010, revenue was $12,523,000 compared to
$12,676,000 for the first nine months of 2009. Net income for this
year's first nine months was $17,000, or $0.00 per diluted
share. This compares to a net loss for the first nine months of 2009
of ($51,000), or ($0.01) per share.
Discussion
and Analysis
Chairman
and Chief Executive Officer Ernest A. Bates, M.D., said, "We are investing the
time and capital required to properly implement our strategy for long-term
growth. These investments are now beginning to deliver the results we
anticipated, including our recently announced contract to supply radiation
therapy services at Hospital Santa Paula in São Paulo, Brazil, and our contracts
to supply Gamma Knife services at Hospital Central FAP in Lima, Peru and Fort
Sanders Regional Medical Center in Knoxville, Tennessee.
"The
steady upswing in procedure volume and revenue in our Gamma Knife business
confirms our decision to upgrade many of our existing Gamma Knife sites to the
new Leksell Gamma Knife®
PerfexionTM
unit. We are already starting to see the benefits of the Perfexion
upgrades that recently went into service at Smilow Cancer Hospital at Yale-New
Haven in the second quarter and at Methodist Hospital in San Antonio, Texas in
the third quarter. We are optimistic that growth in our Gamma Knife
business will continue as we add additional Perfexion
units. Treatments at our sites in Lima and Fort Sanders are expected
to begin early in 2011. Fort Sanders will be our ninth Perfexion unit
to be placed into service. Radiation therapy treatments at our site
in São Paulo are expected to begin in 2012. We plan to place
additional Perfexion systems over the next two years, which is especially
important because of their substantially higher treatment volume when compared
to the Gamma Knife. We are also negotiating additional contracts in
South America, Europe and in the United States."
"Even as
we continue building our Gamma Knife portfolio, we are also making significant
strides in our proton therapy business. We have centers under
development in Dayton, Ohio, Boston, Massachusetts, Orlando, Florida and Long
Beach, California and we are pursuing many other opportunities. Still
in its infancy today, the proton therapy market is expected to grow dramatically
in the years ahead as clinicians and their patients recognize the benefits of
this advanced treatment modality. We have positioned AMS to be a
leader in this exciting new market."
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) 559-1203 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
28330094.
About
AMS
American
Shared Hospital Services (www.ashs.com)
provides turnkey technology solutions for advanced radiosurgical and radiation
therapy services. Since 1991, AMS' creative financing solutions have
enabled its clinical partners to make the latest advances in radiation oncology
available to patients at an affordable price. 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 Century®
concept. AMS also is a leader in proton beam radiation therapy
(PBRT), the next great growth opportunity in radiation oncology. AMS
currently is developing PBRT centers in Dayton, Ohio (Kettering Medical Center),
Boston (Tufts Medical Center), Orlando (Orlando Regional Healthcare) and Long
Beach, California (Long Beach Memorial Medical Center), and is negotiating
additional projects. AMS also owns a preferred stock investment in
Still River Systems, developer of the compact Monarch 250 PBRT system, which has
not yet been approved by the FDA.
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,
Still River Systems, Inc., without a proven product. 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, 2009, the Quarterly Report on Form 10-Q for the quarters
ended March 31, 2010 and June 30, 2010, and the definitive Proxy Statement for
the Annual Meeting of Shareholders held on June 2, 2010.
|
Contacts:
|
American
Shared Hospital Services
|
|
Ernest
A. Bates, M.D., (415) 788-5300
|
|
|
Chairman
and Chief Executive Officer
|
|
|
e.bates@ashs.com
|
|
|
Berkman
Associates
|
|
|
Neil
Berkman, (310) 826-5051
|
|
|
President
|
|
|
info@berkmanassociates.com
|
AMERICAN SHARED HOSPITAL SERVICES
|
PRESS RELEASE
|
November
4, 2010
|
|
Third
Quarter 2010 Financial Results
|
Page 3
|
Selected Financial Data
(unaudited)
|
Summary
of Operations Data
|
||||||||||||||||
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Medical services revenue
|
$ | 4,280,000 | $ | 3,926,000 | $ | 12,523,000 | $ | 12,676,000 | ||||||||
|
Costs of revenue
|
2,435,000 | 2,343,000 | 7,229,000 | 7,578,000 | ||||||||||||
|
Gross margin
|
1,845,000 | 1,583,000 | 5,294,000 | 5,098,000 | ||||||||||||
|
Selling & administrative expense
|
1,091,000 | 875,000 | 3,235,000 | 2,870,000 | ||||||||||||
|
Transaction costs
|
— | 22,000 | — | 342,000 | ||||||||||||
|
Interest expense
|
558,000 | 514,000 | 1,542,000 | 1,526,000 | ||||||||||||
|
Operating income
|
196,000 | 172,000 | 517,000 | 360,000 | ||||||||||||
|
Other income
|
27,000 | — | 89,000 | 16,000 | ||||||||||||
|
Income before income taxes
|
223,000 | 172,000 | 606,000 | 376,000 | ||||||||||||
|
Income tax expense (benefit)
|
19,000 | 16,000 | 51,000 | (49,000 | ) | |||||||||||
|
Net income
|
204,000 | 156,000 | 555,000 | 425,000 | ||||||||||||
|
Less: Net income attributable
|
||||||||||||||||
|
to non-controlling interest
|
(198,000 | ) | (139,000 | ) | (538,000 | ) | (476,000 | ) | ||||||||
|
Net income (loss) attributable to
|
||||||||||||||||
|
American Shared Hospital Services
|
$ | 6,000 | $ | 17,000 | $ | 17,000 | $ | (51,000 | ) | |||||||
|
Earnings per common share:
|
||||||||||||||||
|
Basic
|
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | |||||||
|
Assuming dilution
|
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | |||||||
|
Balance Sheet Data
|
||||||||
|
Sep. 30,
|
Dec. 31,
|
|||||||
|
2010
|
2009
|
|||||||
|
Cash and cash equivalents
|
$ | 1,091,000 | $ | 833,000 | ||||
|
Certificate of deposit
|
$ | 9,000,000 | $ | 9,000,000 | ||||
|
Current assets
|
$ | 15,104,000 | $ | 14,474,000 | ||||
|
Investment in preferred stock
|
$ | 2,617,000 | $ | 2,617,000 | ||||
|
Total assets
|
$ | 63,762,000 | $ | 60,621,000 | ||||
|
Current liabilities
|
$ | 7,616,000 | $ | 7,977,000 | ||||
|
Shareholders' equity
|
$ | 22,958,000 | $ | 22,755,000 | ||||