Full Press Release Details
AMERICAN SHARED HOSPITAL SERVICES FOURTH
NET INCOME INCREASED 63.2% AS REVENUE
San Francisco, CA - March
23, 2017 -- AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS) (the "Company"), a leading provider of turnkey technology
solutions for advanced radiosurgical and radiation therapy services, today announced financial results for the fourth quarter and
Fourth Quarter Results
For the three months ended December 31,
2016, medical services revenue increased 21.6% to $5,060,000 compared to medical services revenue of $4,162,000 for the fourth
Fourth quarter revenue for the Company's
initial proton therapy system installed at The Marjorie and Leonard Williams Center for Proton Therapy at UF Health Cancer Center-Orlando
Health in Florida was $903,000.
Revenue for the Company's Gamma Knife operations
was $4,056,000 for the fourth quarter of 2016 compared to $4,028,000 for the fourth quarter of 2015, as treatment volume was essentially
unchanged versus prior year.
Net income attributable to the Company
for the fourth quarter of 2016 increased 63.2% to $452,000, or $0.08 per share. This compares to net income attributable to the
Company for the fourth quarter of 2015 of $277,000, or $0.05 per share.
Medical services gross margin for the fourth
quarter of 2016 increased to 55.9% of revenue, compared to medical services gross margin of 44.7% of revenue for the fourth quarter
of 2015, reflecting the increase in revenue from proton therapy as well as a favorable mix of Gamma Knife procedures.
Operating income increased 98.1% to $1,448,000
for the fourth quarter of 2016 compared to operating income of $731,000 for the same period a year earlier. Income before
income taxes was $1,452,000 for the fourth quarter of 2016 compared to $709,000 for the fourth quarter of 2015. Non-GAAP pre-tax
income, net of income attributable to non-controlling interest, was $971,000 for the fourth quarter of 2016. This compares
to non-GAAP pre-tax income, net of income attributable to non-controlling interest, of $383,000 for the fourth quarter of 2015.
Selling and administrative expenses for
the fourth quarter of 2016 increased to $891,000, compared to selling and administrative expenses of $792,000 for the fourth quarter
of 2015. With the addition of the proton center in Orlando, interest expense increased to $488,000 for the fourth quarter of 2016,
compared to interest expense of $339,000 for the fourth quarter of 2015.
Adjusted EBITDA, a non-GAAP financial measure,
was $2,877,000 for the fourth quarter of 2016, compared to $2,340,000
for the fourth quarter of 2015. Please refer to the financial statements included with this press release for a reconciliation
of GAAP to this non-GAAP financial measure.
Twelve Months Results
For the twelve months ended December 31,
2016, medical services revenue increased 13.0% to $18,700,000 compared to medical services revenue of $16,548,000 for 2015.
Excluding treatments at a customer site
whose contract expired at the end of the first quarter of 2015, Gamma Knife volume was essentially unchanged for 2016 compared
to 2015. Revenue for the Company's proton therapy system for the April through December 2016 period was $2,149,000.
Net income attributable to the Company
for 2016 was $930,000, or $0.17 per share. This compares to a net loss attributable to the Company for 2015 of $1,522,000, or ($0.28)
per share. Excluding the loss on early extinguishment of debt of $108,000, net of estimated taxes, non-GAAP net income attributable
to the Company for 2016 was $994,000, or $0.18 per share. This compares to non-GAAP net income attributable to the Company for
2015, excluding the loss attributable to an impairment charge, of $618,000, or $0.11 per share.
Adjusted EBITDA, a non-GAAP financial measure,
was $10,165,000 for 2016, compared to $8,654,000 for 2015.
Balance Sheet Highlights
At December 31, 2016, cash and cash equivalents
was $2,871,000 compared to $2,209,000 at December 31, 2015. Shareholders' equity at December 31, 2016 was $27,173,000, or $4.97
per outstanding share. This compares to shareholders' equity at December 31, 2015 of $25,180,000, or $4.69 per outstanding share.
Chairman and Chief Executive Officer Ernest
A. Bates, M.D., said, "2016 was an excellent year for AMS. Our first proton center began treating patients in April and,
not coincidentally, net income for the year was the highest since 2007. We are excited by the opportunities before us.
"The MEVION S250 proton system we
supplied UF Health Cancer Center-Orlando Health continues to deliver outstanding performance. Fourth quarter treatment volume increased
to 1,019 fractions, up from 869 fractions performed in the third quarter and 442 fractions performed in the second quarter. We
believe there is room for additional growth in treatment volume in 2017.
"Proton treatment accuracy and patient
positioning took a significant step forward in January as Orlando Health treated the first patient on its MEVION S250 in conjunction
with a mobile, diagnostic computed tomography (CT) scanner. This advanced 3D CT-based technology, integrated with the MEVION S250's
proprietary patient positioning system, provides superior, high-resolution images that can be used for both positioning and adaptive
treatment. We are proud that the device AMS supplied Orlando Health is the first Mevion system to integrate this functionality.
"Even as we negotiate with several
hospitals to develop additional proton centers, we continue to build our Gamma Knife business. In March 2017, we entered into
a contract to supply a Gamma Knife Perfexion system to Bryan Medical Center in Lincoln, Nebraska. This new Perfexion
system is expected to begin treating patients in the second half of 2017. Later this year we also expect patient treatments to
begin on a Gamma Knife located at the Air Force Hospital in Lima, Peru. While we will be losing one of our sites due to the expiration
of its contract term in this year's second quarter, AMS continues to lead the way in making the Gamma Knife available to hospitals
and their brain tumor, trigeminal neuralgia and vascular malformation patients."
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) 588-4973 at least 5 minutes prior to
the scheduled start time, and mention confirmation number 4460 4047. A simultaneous WebCast of the call may be accessed through
the Company's website, www.ashs.com, or www.streetevents.com (institutional investors). A replay will be available
for 30 days at these same internet addresses, or by dialing 888-843-7419 and entering 4460 4047# when prompted.
American Shared Hospital Services provides
turnkey technology solutions for advanced radiosurgical and radiation therapy services. 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 proton therapy, and the latest IGRT and IMRT systems. AMS owns a common stock
investment in Mevion Medical Systems, Inc., developer of the compact MEVION S250 Proton Therapy System.
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 in volume of the MEVION S250 system, the
expansion of the Company's proton therapy business, and the timing of treatments by new Gamma Knife systems) which involve risks
and uncertainties including, but not limited to, the risks of variability of financial results between quarters, the risks of the
Gamma Knife and radiation therapy businesses, the risks of developing The Operating Room for the 21st Century program, the risks
of investing in Mevion Medical Systems, Inc., and the risks of the timing, financing, and operations of the Company's proton
therapy business. 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, 2015, its Form 10-Q for the quarters ended March
31, 2016, June 30, 2016 and September 30, 2016, and the definitive Proxy Statement for the Annual Meeting of Shareholders held
Non-GAAP Financial Measure
None of Adjusted EBITDA, non-GAAP pre-tax
income, non-GAAP net income attributable to the Company, and non-GAAP net income per share, the non-GAAP measures presented in
this press release and supplementary information, is a measure of performance under the accounting principles generally accepted
in the United States ("GAAP"). These non-GAAP financial measures should not be considered as substitute for, and investors
should also consider, income (loss) before income taxes, income from operations, net income attributable to the Company, earnings
(loss) per share and other measures of performance as defined by GAAP as indicators of the Company's performance or profitability.
We use these non-GAAP financial measures as a means to evaluate period-to-period comparisons. Our management believes that these