American Shared Hospital Services Reports Third Quarter 2024 Financial Results
American Shared Hospital Services (NYSE American: AMS) reported Q3 2024 financial results with total revenue increasing 36.3% to $6,999,000. Direct patient services revenue grew 273.2% to $3,687,000, driven by acquisitions in Rhode Island and new facility in Puebla, Mexico. However, medical equipment leasing revenue decreased 16.1% to $3,312,000 due to lower Gamma Knife volumes. The company reported a net loss of $207,000 ($0.03 per share) compared to net income of $118,000 ($0.02 per share) in Q3 2023. Adjusted EBITDA was $1,366,000, down from $1,669,000 in the prior year period.
American Shared Hospital Services (NYSE American: AMS) ha riportato i risultati finanziari del terzo trimestre 2024, con un aumento del fatturato totale del 36,3% a $6.999.000. I ricavi dei servizi diretti ai pazienti sono aumentati del 273,2% a $3.687.000, grazie ad acquisizioni in Rhode Island e a una nuova struttura a Puebla, Messico. Tuttavia, i ricavi da leasing di apparecchiature medicali sono diminuiti del 16,1% a $3.312.000 a causa di volumi più bassi di Gamma Knife. L'azienda ha riportato una perdita netta di $207.000 ($0,03 per azione) rispetto a un utile netto di $118.000 ($0,02 per azione) nel terzo trimestre del 2023. L'EBITDA rettificato è stato di $1.366.000, in calo rispetto a $1.669.000 nello stesso periodo dell'anno precedente.
American Shared Hospital Services (NYSE American: AMS) informó resultados financieros del tercer trimestre de 2024, con un aumento del 36.3% en los ingresos totales, alcanzando $6,999,000. Los ingresos por servicios directos a pacientes crecieron un 273.2% a $3,687,000, impulsados por adquisiciones en Rhode Island y una nueva instalación en Puebla, México. Sin embargo, los ingresos por alquiler de equipos médicos disminuyeron un 16.1% a $3,312,000 debido a volúmenes más bajos de Gamma Knife. La empresa reportó una pérdida neta de $207,000 ($0.03 por acción) en comparación con una ganancia neta de $118,000 ($0.02 por acción) en el tercer trimestre de 2023. El EBITDA ajustado fue de $1,366,000, frente a $1,669,000 en el mismo período del año anterior.
American Shared Hospital Services (NYSE American: AMS)는 2024년 3분기 재무 결과를 보고했으며, 총 수익이 36.3% 증가하여 $6,999,000에 달했습니다. 직접 환자 서비스 수익은 로드아일랜드의 인수와 메히코 푸에블라의 새 시설에 힘입어 273.2% 증가하여 $3,687,000에 도달했습니다. 그러나 의료 장비 임대 수익은 감마 나이프 볼륨 감소로 인해 16.1% 감소하여 $3,312,000이었습니다. 회사는 2023년 3분기 $118,000($0.02 per share)와 비교하여 $207,000($0.03 per share)의 순손실을 보고했습니다. 조정된 EBITDA는 전년 동기 대비 $1,669,000에서 $1,366,000으로 감소했습니다.
American Shared Hospital Services (NYSE American: AMS) a annoncé les résultats financiers du troisième trimestre 2024, avec une augmentation des revenus totaux de 36,3% à 6.999.000 $. Les revenus des services directs aux patients ont crû de 273,2% pour atteindre 3.687.000 $, soutenus par des acquisitions dans l'État de Rhode Island et une nouvelle installation à Puebla, au Mexique. Cependant, les revenus issus de la location d'équipements médicaux ont diminué de 16,1% pour se chiffrer à 3.312.000 $ en raison de volumes de Gamma Knife plus faibles. La société a enregistré une perte nette de 207.000 $ (0,03 $ par action) par rapport à un bénéfice net de 118.000 $ (0,02 $ par action) au troisième trimestre de 2023. L'EBITDA ajusté était de 1.366.000 $, en baisse par rapport à 1.669.000 $ à la même période l'année précédente.
American Shared Hospital Services (NYSE American: AMS) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Anstieg des Gesamtumsatzes um 36,3% auf $6.999.000. Die Einnahmen aus direkten Patientenservices stiegen um 273,2% auf $3.687.000, was durch Übernahmen in Rhode Island und eine neue Einrichtung in Puebla, Mexiko, unterstützt wurde. Die Einnahmen aus Leasing von medizinischen Geräten sanken jedoch um 16,1% auf $3.312.000 aufgrund niedrigerer Gamma-Knife-Volumina. Das Unternehmen meldete einen Nettverlust von $207.000 ($0,03 pro Aktie) im Vergleich zu einem Nettogewinn von $118.000 ($0,02 pro Aktie) im 3. Quartal 2023. Das bereinigte EBITDA betrug $1.366.000, gegenüber $1.669.000 im Vorjahr.
- Total revenue increased 36.3% to $6,999,000
- Direct patient services revenue grew 273.2% to $3,687,000
- Proton beam therapy revenue increased 4.4% with 5.4% more treatments
- Cash position improved to $14,077,000 from $13,808,000 at year-end 2023
- Net loss of $207,000 compared to net income of $118,000 in Q3 2023
- Medical equipment leasing revenue decreased 16.1%
- Gamma Knife procedures decreased 31.0%
- Gross margin declined to 19.6% from 40.9% year-over-year
- Operating income decreased by $979,000
Insights
The Q3 2024 results present a mixed financial picture. While revenue grew
The core Gamma Knife business showed concerning weakness with a
The operational metrics reveal significant challenges in facility integration and resource optimization. The decline in Gamma Knife procedures stems from multiple factors: contract expiration, equipment upgrade downtime and physician staffing shortages - all indicating operational execution issues. The Rhode Island acquisition, while driving top-line growth, is experiencing efficiency challenges that need addressing.
The proton therapy segment shows resilience with steady treatment volumes, but the overall operational complexity has increased substantially with the new facilities. Management's focus on implementing "strategic growth initiatives" and upgrading equipment suggests awareness of these challenges, though the timeline for achieving operational synergies remains unclear.
- Revenue increases
- Conference Call on November 13th at 1:00 pm ET
SAN FRANCISCO, Nov. 13, 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 third quarter ended September 30, 2024.
Third Quarter 2024 and Recent Highlights
- Total revenue in the third quarter was
$6,999,000 , an increase of36.3% from the comparable period in 2023 bolstered by the completion of our acquisition in May 2024 (the “RI Acquisition”) of60% of the equity interest of two entities in Rhode Island (the “RI Companies”) that operate three Rhode Island radiation therapy facilities and the Company’s new facility in Puebla, Mexico. - Revenue from the Company’s direct patient services (“retail”) segment was
$3,687,000 for the three months ended September 30, 2024, compared to$988,000 for the same period in the prior year, an increase of273.2% . The increase in retail revenue was primarily due to revenue generated by the Rhode Island and Puebla, Mexico facilities. - Revenue from the Company’s medical equipment leasing (“leasing”) segment was
$3,312,000 for the three months ended September 30, 2024, compared to$3,946,000 for the same period in the prior year, a decrease of16.1% . The decrease in leasing revenue was driven by lower Gamma Knife treatment volumes. The prior year comparison excludes the$200,000 equipment sale recorded in the third quarter of 2023. - Total proton beam radiation therapy revenue increased
4.4% period-over-period; treatments increased5.4% . - Gross margin was
$1,370,000 , a period-over-period decrease of$732,000. T he gross margin percentage was19.6% of revenue compared to40.9% in the year-ago period. - Operating income for the third quarter of 2024 decreased by
$979,000 compared to third quarter of 2023 primarily due to increased operating costs from the Company’s recently acquired facilities in Rhode Island and the Company’s new facility in Puebla, Mexico, and lower Gamma Knife treatment volumes. - Net loss attributable to American Shared Hospital Services in the third quarter of 2024 was
$207,000 , or ($0.03) per diluted share, compared to net income of$118,000 or$0.02 per diluted share, for the third quarter of 2023. - Adjusted EBITDA, a non-GAAP financial measure, was
$1,366,000 for the third quarter of 2024, compared to$1,669,000 for the third quarter of 2023. - Cash at September 30, 2024 was
$14,077,000 compared to$13,808,000 at December 31, 2023.
Ray Stachowiak, CEO and Executive Chairman of American Shared Hospital Services, commented, “The third quarter marks another quarter of strong revenue growth of
Gary Delanois, Executive Vice President and Chief Operating Officer, added, “It is extremely gratifying to join the team at this clear inflection point. Our growth strategy is taking hold with our expanded product portfolio and increased capacity for creative financial solutions. Besides improving efficiencies by upgrading our equipment to better serve our patients we are also implementing strategic growth initiatives to drive growth in patient volumes which will improve our margins and overall profitability. The momentum in our sales pipeline continues to grow and 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. Delanois.
Financial Results for the Three Months Ended June 30, 2024
For the three months ended September 30, 2024, revenue increased
Revenue from the Company’s direct patient services (“retail”) segment was
Revenue from the Company’s medical equipment leasing (“leasing”) segment was
Third quarter revenue for the Company's proton beam radiation therapy system increased
Total proton beam radiation therapy treatments in the third quarter were 1,252 compared to 1,188 proton beam radiation therapy treatments in the third quarter of 2023, a
Total revenue for the Company's Gamma Knife operations decreased by
Selling and administrative costs increased by
Interest expense was
Operating loss for the third quarter was
Income tax expense was a benefit of
Net income attributable to American Shared Hospital Services in the third quarter of 2024 was a loss of
Adjusted EBITDA, a non-GAAP financial measure, was
Financial Results for the Nine Months Ended September 30, 2024
For the nine months ended September 30, 2024, revenue increased
Gamma Knife revenue decreased
Proton therapy revenue increased
Net income attributable to American Shared Hospital Services for the first nine months of 2024 was
Adjusted EBITDA, a non-GAAP financial measure, was
Balance Sheet Highlights
At September 30, 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 Wednesday, November 13th at 1:00 pm ET / 10:00 am 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.
A replay of the call will be available at 1-877-344-7529 or 1-412-317-0088, access code 2069271, through November 20, 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 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 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 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 periods ended March 31, 2024 and June 30, 2024, the Annual Report on Form 10-K for the year ended December 31, 2023, and the definitive Proxy Statement for the Annual Meeting of Shareholders that was 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 (loss) before interest expense, interest income, income tax expense, depreciation and amortization expense, loss on write down of impaired assets and associated removal costs, bargain purchase gain, 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, Inc.
ksmith@pcgadvisory.com
- Tables Follow –
| American Shared Hospital Services | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| Summary of Operations Data | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2024 | 2023 | 2023 | 2023 | |||||||||||||
| Revenues | $ | 6,999,000 | $ | 5,134,000 | $ | 19,271,000 | $ | 15,627,000 | ||||||||
| Costs of revenue | 5,629,000 | 3,032,000 | 13,290,000 | 9,099,000 | ||||||||||||
| Gross margin | 1,370,000 | 2,102,000 | 5,981,000 | 6,528,000 | ||||||||||||
| Selling and administrative expense | 1,923,000 | 1,735,000 | 5,698,000 | 5,262,000 | ||||||||||||
| Interest expense | 336,000 | 277,000 | 1,070,000 | 825,000 | ||||||||||||
| Loss on write down of impaired assets and associated removal costs, net | - | - | 188,000 | 578,000 | ||||||||||||
| Operating (loss) income | (889,000 | ) | 90,000 | (975,000 | ) | (137,000 | ) | |||||||||
| Bargain purchase gain, net | 263,000 | - | 3,942,000 | - | ||||||||||||
| Interest and other income | 47,000 | 135,000 | 212,000 | 318,000 | ||||||||||||
| (Loss) income before income taxes | (579,000 | ) | 225,000 | 3,179,000 | 181,000 | |||||||||||
| Income tax (benefit) expense | (169,000 | ) | 60,000 | (244,000 | ) | 93,000 | ||||||||||
| Net (loss) income | (410,000 | ) | 165,000 | 3,423,000 | 88,000 | |||||||||||
| (Less) plus: Net loss (income) attributable to non-controlling interests | 203,000 | (47,000 | ) | 91,000 | 107,000 | |||||||||||
| Net (loss) income attributable to American Shared Hospital Services | $ | (207,000 | ) | $ | 118,000 | $ | 3,514,000 | $ | 195,000 | |||||||
| (Loss) earnings per common share: | ||||||||||||||||
| Basic | ( | ) | $ | 0.02 | $ | 0.54 | $ | 0.03 | ||||||||
| Diluted | ( | ) | $ | 0.02 | $ | 0.54 | $ | 0.03 | ||||||||
| Weighted Average Shares Outstanding: | ||||||||||||||||
| Basic | 6,482,000 | 6,336,000 | 6,482,000 | 6,336,000 | ||||||||||||
| Diluted | 6,482,000 | 6,432,000 | 6,520,000 | 6,406,000 | ||||||||||||
| American Shared Hospital Services | ||||||||||||||||
| Balance Sheet Data | ||||||||||||||||
| Balance Sheet Data | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 9/30/2024 | 12/31/2023 | |||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 14,077,000 | $ | 13,808,000 | ||||||||||||
| Current assets | $ | 25,720,000 | $ | 20,456,000 | ||||||||||||
| Total assets | $ | 63,269,000 | $ | 48,162,000 | ||||||||||||
| Current liabilities | $ | 17,561,000 | $ | 10,779,000 | ||||||||||||
| Shareholders' equity American Shared Hospital Services | $ | 26,423,000 | $ | 22,624,000 | ||||||||||||
| American Shared Hospital Services | |||||||||||||||
| Adjusted EBITDA | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Adjusted Results | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) attributable to American Shared Hosptial Services | $ | (207,000 | ) | $ | 118,000 | $ | 3,514,000 | $ | 195,000 | ||||||
| Plus (less): | Income tax (benefit) expense | (169,000 | ) | 60,000 | (244,000 | ) | 93,000 | ||||||||
| Interest expense | 336,000 | 277,000 | 1,070,000 | 825,000 | |||||||||||
| Interest (income) | (63,000 | ) | (149,000 | ) | (252,000 | ) | (346,000 | ) | |||||||
| Depreciation and amortization expense | 1,644,000 | 1,265,000 | 4,501,000 | 3,874,000 | |||||||||||
| Stock-based compensation expense | 88,000 | 98,000 | 285,000 | 291,000 | |||||||||||
| Bargain purchase gain, net | (263,000 | ) | - | (3,942,000 | ) | - | |||||||||
| Loss on write down of impaired assets and associated removal costs | - | - | 188,000 | 578,000 | |||||||||||
| Adjusted EBITDA | $ | 1,366,000 | $ | 1,669,000 | $ | 5,120,000 | $ | 5,510,000 | |||||||
FAQ
What was AMS's revenue growth in Q3 2024?
How did AMS perform in terms of earnings per share in Q3 2024?
What caused the decline in AMS's Gamma Knife revenue in Q3 2024?
How much was AMS's Adjusted EBITDA in Q3 2024?
