American Shared Hospital Services Reports Fourth Quarter and Year End 2022 Financial Results
American Shared Hospital Services (AMS) reported a strong financial performance for Q4 2022, with revenue exceeding $5 million for the second time in the year, marking a 7.4% increase from Q4 2021. Net income rose by 12% to $246,000 or $0.04 per share. Full-year revenue reached nearly $20 million, representing a 12% increase, while net income surged six-fold to $1.3 million or $0.21 per share. Major highlights include a 33.4% increase in proton therapy revenue, a solid cash position of $12.5 million, and a first order of 2023 valued at $1.3 million. The company is also advancing its joint ventures in Mexico and Ecuador.
- Q4 2022 revenue increased 7.4% to $5,037,000.
- Full-year revenue up 12% to $19,746,000.
- Net income for 2022 increased six-fold to $1.3 million or $0.21 per share.
- First order of 2023 valued at $1.3 million.
- Cash position improved by 50.7% to $12,453,000.
- Adjusted EBITDA for 2022 was $8,176,000, up from $7,174,000.
- Operating income decreased by 18.4% in Q4 2022 compared to Q4 2021.
- Gamma Knife revenue decreased 7.2% for the full year.
- Total Gamma Knife procedures in 2022 decreased 10.4%.
-Q4 Revenue Exceeds
-2022 Revenue Reaches Nearly
-Conference Call Friday March 24th at 1:00pm ET / 10:00am PT-
SAN FRANCISCO, CA, March 24, 2023 (GLOBE NEWSWIRE) -- 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 fourth quarter and twelve months ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights
- Total revenue in the fourth quarter was
$5,037,000 , an increase of7.4% from the comparable period in 2021. Total proton therapy revenue increased33.4% period-over-period; fractions decreased11.9% . Gamma Knife revenue and volumes for same centers in operation decreased6.7% and8.4% , respectively.
- Gross margin increased
2.3% to$2,270,000. T he gross margin percentage was45.1% of revenue.
- Operating income for the fourth quarter of 2022 was
$590,000 compared to operating income of$723,000 in the fourth quarter of 2021, a decrease of18.4% . - Net income attributable to American Shared Hospital Services in the fourth quarter was
$246,000 , or$0.04 per diluted share, compared to net income of$219,000 , or$0.04 per diluted share, for the same period in the prior year.
- Adjusted EBITDA, a non-GAAP financial measure, was
$2,161,000 for the fourth quarter of 2022, compared to$2,150,000 for the fourth quarter of 2021.
- Cash at December 31, 2022 was
$12,453,000 , an increase of$4,190,000 or50.7% , from the December 31, 2021 balance of$8,263,000.
- For the twelve months ended December 31, 2022, revenue increased
12.0% to$19,746,000 compared to 2021. Operating income for 2022 was$2,431,000 , a79.9% increase compared to 2021. Net income attributable to American Shared Hospital Services was$1,328,000 , or$0.21 per diluted share, compared to net income attributable to American Shared Hospital Services of$194,000 , or$0.03 per diluted share, for 2021. Net income attributable to American Shared Hospital Services for 2021, excluding the net effect of the extinguishment of debt after non-controlling interest and income taxes of$244,000 , a non-GAAP financial measure, was$438,000 , or$0.07 per diluted share.
- Announced first order of 2023 totaling
$1.3 million with a new customer.
Ray Stachowiak, Executive Chairman, commented, “AMS ended a strong year with a solid fourth quarter. Quarterly revenue increased
“Our investment in sales and marketing has begun to pay off with our pipeline filling with solid opportunities. We also booked our first order of 2023 in the first quarter. The
“We also made progress toward receiving the necessary permits for our new Cancer Center joint venture in Puebla, Mexico that will have a new linear accelerator (LINAC) cancer radiation treatment system with advanced treatment planning and enhanced patient information and management software. As we’ve talked about before, our Gamma Knife Cancer Center in Ecuador will have the Perfexion to ICON upgrade installed when all permits are received, which we are expecting soon in order to begin treating patients early in the third quarter. The Gamma Knife ICON upgrade will add new patient treatment capabilities such as frameless head immobilization and a lightning treatment planning system with remote planning. Sites that have previously upgraded from Perfexion to ICON have reported improved patient experiences and outcomes.
“Most recently, the Board of Directors and myself were pleased to appoint Peter Gaccione as Chief Executive Officer; I am now Executive Chairman. Peter joined AMS six months ago as COO after 40 years in the medical oncology business. As we announced, we have begun a search for a public company CFO to succeed Craig Tagawa, who has held the position for many years and will remain CFO until a successor is in place. Craig will continue to serve as President of the Company and also Chief Executive Officer of GK Financing, the AMS subsidiary. We’re excited for this realignment of our team and believe that we have the right people in the right roles to maximize the many opportunities we see to provide advanced treatments for cancer patients,” concluded Mr. Stachowiak.
Financial Results for the Three Months Ended December 31, 2022
For the three months ended December 31, 2022, revenue increased
Fourth quarter revenue for the Company's proton therapy system installed at Orlando Health in Florida increased
Total proton therapy fractions in the fourth quarter were 981, a decrease of
Total revenue for the Company's Gamma Knife operations decreased
Total Gamma Knife procedures decreased by
Gross margin for the fourth quarter of 2022 increased
Selling and administrative costs increased by
Operating income for the fourth quarter of 2022 was
Income tax expense increased
Net income attributable to American Shared Hospital Services in the fourth quarter 2022 was
Adjusted EBITDA, a non-GAAP financial measure, was
Financial Results for the Twelve Months Ended December 31, 2022
For the twelve months ended December 31, 2022, revenue increased
Total Gamma Knife revenue decreased
PBRT revenue increased
Gross margin for the twelve months of 2022 increased
Operating income for the twelve months of 2022 was
Net income attributable to American Shared Hospital Services for the twelve months of 2022 was
Balance Sheet Highlights
At December 31, 2022, cash, cash equivalents, and restricted cash was
Conference Call and Webcast Information
AMS has scheduled a conference call to review its financial results for today, March 24, 2023 at 10:00 a.m. PT / 1:00 p.m. ET.
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, www.ashs.com, or at www.streetevents.com for institutional investors.
A replay of the call will be available at 1 (877) 344-7529, access code 7388246 through March 31, 2023. The call will also be available for replay on the Company’s website, www.ashs.com, for one year.
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 major global Original Equipment Manufacturers (OEMs) that provide leading edge clinical treatment systems and software to treat cancer using Radiation Therapy and Radiosurgery. Major products the company is able to provide include MR Guided Radiation Therapy Linacs, Advanced Linear Accelerators, Proton Beam Therapy Systems, Brachytherapy systems, and through the Company’s GK Financing partnership with Elekta, the Leksell Gamma Knife product and services. ASHS is a leading global provider of Gamma Knife radiosurgery equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations, and trigeminal neuralgia (facial pain). 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 Annual Report on Form 10-K for the year ended December 31, 2021, the Company's Quarterly Report on Form 10-Q for the three month periods ended March 31, 2022, June 30, 2022, and September 30, 2022, 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, interest income, income tax expense, depreciation and amortization expense, stock-based compensation expense, loss on extinguishment of debt, and loss on sublease and asset impairment.
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 Services
Ray Stachowiak
Executive Chairman
rstachowiak@ashs.com
Investor Relations
PCG Advisory
Stephanie Prince
P: (646) 863-6341
sprince@pcgadvisory.com
- Tables Follow -
| American Shared Hospital Services | |||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||
| Summary of Operations Data | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Revenues | $ | 5,037,000 | $ | 4,689,000 | $ | 19,746,000 | $ | 17,628,000 | |||||||||
| Costs of revenue | 2,767,000 | 2,471,000 | 11,364,000 | 10,902,000 | |||||||||||||
| Gross margin | 2,270,000 | 2,218,000 | 8,382,000 | 6,726,000 | |||||||||||||
| Loss on write down of impaired assets and associated removal costs | - | 105,000 | - | 105,000 | |||||||||||||
| Selling and administrative expense | 1,420,000 | 1,238,000 | 5,145,000 | 4,531,000 | |||||||||||||
| Interest expense | 260,000 | 152,000 | 806,000 | 739,000 | |||||||||||||
| Operating income | 590,000 | 723,000 | 2,431,000 | 1,351,000 | |||||||||||||
| Loss on extinguishment of debt | - | - | - | (401,000 | ) | ||||||||||||
| Other income (loss), net | 56,000 | (3,000 | ) | 87,000 | (3,000 | ) | |||||||||||
| Income before income taxes | 646,000 | 720,000 | 2,518,000 | 947,000 | |||||||||||||
| Income tax expense | 333,000 | 270,000 | 963,000 | 269,000 | |||||||||||||
| Net income | 313,000 | 450,000 | 1,555,000 | 678,000 | |||||||||||||
| Less: Net income attributable to non-controlling interests | (67,000 | ) | (231,000 | ) | (227,000 | ) | (484,000 | ) | |||||||||
| Net income attributable to American Shared Hospital Services | $ | 246,000 | $ | 219,000 | $ | 1,328,000 | $ | 194,000 | |||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 0.04 | $ | 0.04 | $ | 0.21 | $ | 0.03 | |||||||||
| Diluted | $ | 0.04 | $ | 0.04 | $ | 0.21 | $ | 0.03 | |||||||||
| Weighted Average Shares Outstanding: | |||||||||||||||||
| Basic | 6,276,000 | 6,103,000 | 6,297,000 | 6,044,000 | |||||||||||||
| Diluted | 6,284,000 | 6,117,000 | 6,303,000 | 6,059,000 | |||||||||||||
| American Shared Hospital Services | ||||||||||||
| Adjusted EBITDA | ||||||||||||
| Reconciliation of GAAP to Non-GAAP Adjusted Results | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Net income | $ | 246,000 | $ | 219,000 | $ | 1,328,000 | $ | 194,000 | ||||
| Plus (less): | Income tax expense | 333,000 | 270,000 | 963,000 | 269,000 | |||||||
| Interest expense | 260,000 | 152,000 | 806,000 | 739,000 | ||||||||
| Interest (income) | (68,000 | ) | - | (103,000 | ) | - | ||||||
| Depreciation and amortization expense | 1,226,000 | 1,222,000 | 4,783,000 | 4,972,000 | ||||||||
| Stock-based compensation expense | 164,000 | 108,000 | 399,000 | 420,000 | ||||||||
| Loss on extinguishment of debt | - | - | - | 401,000 | ||||||||
| Loss on sublease impairment, net | - | 74,000 | - | 74,000 | ||||||||
| Loss on write down of impaired assets and associated removal costs | - | 105,000 | - | 105,000 | ||||||||
| Adjusted EBITDA | $ | 2,161,000 | $ | 2,150,000 | $ | 8,176,000 | $ | 7,174,000 | ||||
| American Shared Hospital Services | ||||
| Balance Sheet Data | ||||
| Balance Sheet Data | ||||
| (Unaudited) | ||||
| 12/31/22 | 12/31/21 | |||
| Cash, cash equivalents and restricted cash | ||||
| Current assets | ||||
| Total assets | ||||
| Current liabilities | ||||
| Shareholders' equity, excluding non-controlling interests | ||||
| American Shared Hospital Services | ||||||
| Adjusted EBITDA | ||||||
| Reconciliation of GAAP to Non-GAAP Adjusted Results | ||||||
| (Unaudited) | ||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||
| 2022 | 2021 | 2022 | 2021 | |||
| Net income | $ 246,000 | $ 219,000 | $ 1,328,000 | $ 194,000 | ||
| Plus (less): | Income tax expense | 333,000 | 270,000 | 963,000 | 269,000 | |
| Interest expense | 260,000 | 152,000 | 806,000 | 739,000 | ||
| Interest (income) | (68,000) | - | (103,000) | - | ||
| Depreciation and amortization expense | 1,226,000 | 1,222,000 | 4,783,000 | 4,972,000 | ||
| Stock-based compensation expense | 164,000 | 108,000 | 399,000 | 420,000 | ||
| Loss on extinguishment of debt | - | - | - | 401,000 | ||
| Loss on sublease impairment, net | - | 74,000 | - | 74,000 | ||
| Loss on write down of impaired assets and associated removal costs | - | 105,000 | - | 105,000 | ||
| Adjusted EBITDA | $ 2,161,000 | $ 2,150,000 | $ 8,176,000 | $ 7,174,000 | ||
FAQ
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