American Shared Hospital Services Reports First Quarter 2024 Financial Results
American Shared Hospital Services (AMS) announced its Q1 2024 financial results, highlighting a record projected revenue backlog of $210 million following the acquisition of Rhode Island Radiation Therapy Cancer Centers. Total revenue for Q1 reached $5.2 million, a 5.9% increase year-over-year, with proton beam radiation therapy revenue up by 14.5%. Gamma Knife revenue slightly decreased by 1.7%. Gross margin improved by 12.3% to $2.1 million. However, operating loss stood at $85,000 compared to a $98,000 operating income in Q1 2023, mainly due to $377,000 in acquisition-related fees. Adjusted EBITDA was $1.74 million, down from $1.90 million the previous year. Cash reserves decreased to $13.04 million from $13.80 million at the end of 2023. Despite increased selling and administrative costs, AMS remains optimistic about future growth driven by new international and domestic centers.
- Record projected revenue backlog of $210 million post-acquisition.
- Q1 2024 revenue increased by 5.9% year-over-year to $5.2 million.
- Proton beam radiation therapy revenue rose 14.5% year-over-year.
- Gross margin improved by 12.3% to $2.1 million.
- Signed new order for Leksell Gamma Knife Esprit upgrade.
- Cash reserves remain strong at $13.04 million.
- Revenue from direct patient services segment rose by 38.4%.
- Operating loss of $85,000 in Q1 2024 compared to $98,000 operating income in Q1 2023.
- Adjusted EBITDA decreased to $1.74 million from $1.90 million.
- Gamma Knife revenue slightly decreased by 1.7%, procedures down 6.8% due to expired contracts.
- Selling and administrative costs increased by 22.1% due to acquisition fees.
- Cash decreased to $13.04 million from $13.80 million at the end of 2023.
- Net income attributable to AMS decreased to $119,000 from $188,000 year-over-year.
Insights
American Shared Hospital Services' first quarter 2024 results indicate a solid performance amidst significant strategic movements. The acquisition of a 60% stake in three Rhode Island Radiation Therapy Cancer Centers has more than doubled the projected revenue backlog to
The key takeaway here is the strategic significance of the Rhode Island acquisition, anticipated to boost long-term revenue, outweighing the short-term increase in SG&A expenses. The financial health is underscored by a strong cash position at
The acquisition of the Rhode Island Radiation Therapy Cancer Centers is particularly noteworthy. This move positions American Shared Hospital Services to expand its market presence in the U.S. by directly providing patient services, marking a strategic shift from its traditional leasing model. The
Additionally, the continuity of revenue from international operations, including the new Gamma Knife in Ecuador and Peru, supports a diversified revenue base. The expansion into Puebla, Mexico, expected to commence soon, could further bolster international growth. Retail investors should watch how these strategic moves impact the market share and revenue diversification, potentially leading to a stronger competitive position.
From a medical and technological standpoint, the company's mix of advanced radiation therapy systems, like the Gamma Knife and proton beam radiation therapy, continues to show strong demand. The
The decrease in Gamma Knife procedures by
- Reports Record Projected Revenue Backlog of
- Remains on track with opening new Puebla, Mexico center -
-Conference Call Today, May 14th at 4:30 pm ET -
SAN FRANCISCO, May 14, 2024 (GLOBE NEWSWIRE) -- American Shared Hospital Services (NYSE American: AMS) (the "Company"), a leading provider of turnkey technology solutions for stereotactic radiosurgery and advanced radiation therapy cancer treatment systems and services, today announced financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Highlights
- As of May 10, 2024, reported record projected revenue backlog (see definition below) of over
$210 million representing a more than doubling with the acquisition of sixty percent of three Rhode Island Radiation Therapy Cancer Centers. - Total revenue in the first quarter was
$5.2 million , an increase of5.9% from the comparable period in 2023. Total proton beam radiation therapy revenue increased14.5% period-over-period; fractions decreased16.9% . Gamma Knife revenue decreased slightly by1.7% period-over-period; procedures decreased6.8% due to the expiration of two customer agreements. - Gross margin was
$2.1 million , a period-over-period increase of12.3% . The gross margin percentage was41.1% of revenue compared to38.7% in the year ago period and in line with historic range. - Operating loss for the first quarter of 2024 was
$85,000 compared to operating income of$98,000 in the first quarter of 2023 due to higher SG&A costs driven by$377,000 of fees associated with new business opportunities, including the acquisition of 3 Rhode Island Radiation Therapy Cancer Centers. - Adjusted EBITDA, a non-GAAP financial measure, was
$1,744,000 for the first quarter of 2024, compared to$1,903,000 for the first quarter of 2023. The decrease was due to Rhode Island acquisition costs offset by higher gross margin. - Cash at March 31, 2024 was
$13,042,000 compared to$13,808,000 at December 31, 2023. - Signed 1 new order to upgrade an existing customer to a Leksell Gamma Knife Esprit, the latest model.
Ray Stachowiak, CEO and Executive Chairman of American Shared Hospital Services, commented, “With the acquisition of sixty percent of three Rhode Island Radiation Therapy Cancer Centers we are extremely excited to report our record-breaking projected revenue backlog of over
“With the acquisition of the
“The first quarter marks a good start to the year, with revenue growth of
Craig Tagawa, President and Chief Operating Officer, added, “We continue to see the momentum building with our enhanced sales team as we expanded our product portfolio and increased our capacity for creative financial solutions. Together, this has resulted in significantly increasing the breadth of opportunities for consideration. With our sophisticated equipment’s long sales cycle, our sales pipeline remains extremely strong and we are excited to announce additional projects as they come to fruition. Our strategic partnership business model and financial flexibility enhanced by our recently added in-house customer advocate continues to yield signed lease extension agreements with many of our Gamma Knife customers.”
“Our overall momentum continues to build as the most advanced radiotherapy cancer treatment systems are now at our newest international site and with our most recent Rhode Island centers we are clearly excited with our future growth prospects. Furthermore, with the strength of our overall business supported by our strong balance sheet and consistent cash flow, we are well positioned for future growth,” concluded Mr. Tagawa.
Financial Results for the Three Months Ended March 31, 2024
For the three months ended March 31, 2024, revenue increased
First quarter revenue for the Company's proton beam radiation therapy system installed at Orlando Health in Florida increased
Total proton beam radiation therapy fractions in the first quarter were 1,276 compared to 1,536 proton beam radiation therapy fractions in the first quarter of 2023, a
Total revenue for the Company's Gamma Knife operations slightly decreased by
Total Gamma Knife procedures decreased by
Gross margin for the first quarter of 2024 increased
Selling and administrative costs increased by
Net interest expense was
Operating loss for the first quarter of 2024 was
Income tax was a benefit of
Net income attributable to American Shared Hospital Services in the first quarter of 2024 was
Adjusted EBITDA, a non-GAAP financial measure, was
Balance Sheet Highlights
At March 31, 2024, cash, cash equivalents, and restricted cash was
Conference Call and Webcast Information
AMS has scheduled a conference call to review its financial results for Tuesday, May 14th at 4:30 pm ET / 1:30 pm PT.
To participate, domestic callers may dial 1-844-413-3972 and international callers may dial 1-412-317-5776 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, www.ashs.com, or at www.streetevents.com for institutional investors.
A replay of the call will be available at 1-877-344-7529 or 1-412-317-0088, access code 5318203, through May 21, 2024. The call will also be available for replay on the Company’s website at www.ashs.com.
About American Shared Hospital Services (NYSE American: AMS)
American Shared Hospital Services (ASHS) is a leading provider of creative financial and turnkey solutions to Cancer Treatment Centers, hospitals, and large cancer networks worldwide. The company works closely with all major global Original Equipment Manufacturers (OEMs) that provide leading edge clinical treatment systems and software to treat cancer using Radiation Therapy and Radiosurgery. The company is vendor agnostic and provides financial support for a wide range of products including MR Guided Radiation Therapy Linacs, Advanced Digital Linear Accelerators, Proton Beam Radiation Therapy Systems, Brachytherapy systems and suites, and through the Company’s subsidiary, GK Financing LLC., the Leksell Gamma Knife product and services. 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, projected revenue backlog 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 beam radiation therapy and LINAC business, (the Company’s “product lines”), 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 changes to CMS reimbursement rates or reimbursement methodology, the risks of the timing, financing, and operations of the Company’s product lines, 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 Annual Report on Form 10-K for the year ended December 31, 2023, and the definitive Proxy Statement for the Annual Meeting of Shareholders to be held on June 25, 2024.
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, interest income, income tax expense, depreciation and amortization expense, loss on write down of impaired assets and associated removal costs, and stock-based compensation expense.
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 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 Services
Ray Stachowiak, Executive Chairman and CEO
rstachowiak@ashs.com
Investor Relations
Kirin Smith, President
PCG Advisory
ksmith@pcgadvisory.com
- Tables Follow –
| American Shared Hospital Services | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| Summary of Operations Data | ||||||||
| (Unaudited) | ||||||||
| Three months ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | $ | 5,216,000 | $ | 4,925,000 | ||||
| Costs of revenue | 3,073,000 | 3,017,000 | ||||||
| Gross margin | 2,143,000 | 1,908,000 | ||||||
| Selling and administrative expense | 1,879,000 | 1,539,000 | ||||||
| Interest expense | 349,000 | 271,000 | ||||||
| Operating (loss) income | (85,000 | ) | 98,000 | |||||
| Interest and other income, net | 106,000 | 70,000 | ||||||
| Income before income taxes | 21,000 | 168,000 | ||||||
| Income tax (benefit) expense | (44,000 | ) | 68,000 | |||||
| Net income | 65,000 | 100,000 | ||||||
| Plus: Net loss attributable to non-controlling interest | 54,000 | 88,000 | ||||||
| Net income attributable to American Shared Hospital Services | $ | 119,000 | $ | 188,000 | ||||
| Earnings per common share: | ||||||||
| Basic | $ | 0.02 | $ | 0.03 | ||||
| Diluted | $ | 0.02 | $ | 0.03 | ||||
| Weighted Average Shares Outstanding: | ||||||||
| Basic | 6,452,000 | 6,306,000 | ||||||
| Diluted | 6,576,000 | 6,472,000 | ||||||
| American Shared Hospital Services | ||||||||
| Balance Sheet Data | ||||||||
| Balance Sheet Data | ||||||||
| (Unaudited) | ||||||||
| 3/31/2024 | 12/31/2023 | |||||||
| Cash, cash equivalents, and restricted cash | $ | 13,042,000 | $ | 13,808,000 | ||||
| Current assets | $ | 21,365,000 | $ | 20,456,000 | ||||
| Total assets | $ | 50,124,000 | $ | 48,162,000 | ||||
| Current liabilities | $ | 10,779,000 | $ | 10,779,000 | ||||
| Shareholders' equity, excluding non-controlling interests | $ | 22,841,000 | $ | 22,624,000 | ||||
| American Shared Hospital Services | |||||||||
| Adjusted EBITDA | |||||||||
| Reconciliation of GAAP to Non-GAAP Adjusted Results | |||||||||
| (Unaudited) | |||||||||
| Three months ended March 31, | |||||||||
| 2024 | 2023 | ||||||||
| Net income attributable to American Shared Hospital Services | $ | 119,000 | $ | 188,000 | |||||
| Plus (less): | Income tax (benefit) expense | (44,000 | ) | 68,000 | |||||
| Interest expense | 349,000 | 271,000 | |||||||
| Interest (income) | (112,000 | ) | (87,000 | ) | |||||
| Depreciation and amortization expense | 1,334,000 | 1,367,000 | |||||||
| Stock-based compensation expense | 98,000 | 96,000 | |||||||
| Adjusted EBITDA | $ | 1,744,000 | $ | 1,903,000 | |||||
FAQ
What was AMS's revenue for Q1 2024?
What is the projected revenue backlog for AMS after acquiring Rhode Island centers?
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How did AMS's cash reserves change in Q1 2024?
What was AMS's net income for Q1 2024?
How did proton beam radiation therapy revenue change for AMS in Q1 2024?
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