Full Press Release Details
SHARED HOSPITAL SERVICES
FIRST QUARTER RESULTS
CA -- May 15, 2014 -- AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS), a leading provider of turnkey technology solutions
for advanced radiosurgical and radiation therapy services, today announced financial results for the first quarter of 2014.
months ended March 31, 2014, medical services revenue was $4,064,000 compared to $4,668,000 for the first quarter of 2013. This
revenue reduction was attributable in part to equipment downtime due to a Perfexion upgrade and routine maintenance at another
site. Furthermore, severe winter weather conditions affected procedure volumes at several of AMS' sites. However,
for the first quarter 2014, medical services revenue increased 3.2% or $127,000 compared to the fourth quarter 2013.
for the first quarter of 2014 was $96,000, or $0.02 per share, which included a pre-tax gain from foreign currency transactions
of $15,000 due to the strengthening of the Turkish Lira against the U.S. Dollar. In comparison, net income for the first
quarter of 2013 was $25,000, or $0.01 per basic and diluted share, which included a pre-tax loss from foreign currency transactions
of procedures performed on Gamma Knife PerfexionTM systems supplied by AMS increased 3% for the first
quarter of 2014 compared to the same period of 2013. The total number of procedures performed in AMS' Gamma Knife business, including
Gamma Knife and Gamma Knife Perfexion procedures, decreased 5% for the first quarter compared to the same period of 2013.
gross margin for the first quarter of 2014 was 31.7%, compared to medical services gross margin of 45.4% for the first quarter
of 2013. In addition to the impact of lower revenue, the decrease in gross margin reflected higher depreciation and maintenance
costs associated with the opening of a new Perfexion site in the second quarter of 2013, as well as the upgrade to Perfexion specifications
of a Gamma Knife at another site and two cobalt reloads which occurred in the fourth quarter of 2013. Because an upgrade or cobalt
reload increases the book value of the unit, depreciation expense also increases.
administrative expenses for the first quarter of 2014 decreased 25.3% to $922,000 compared to $1,235,000 for the first quarter
as measured by earnings before interest, taxes, depreciation and amortization (EBITDA), was $1,997,000 for the first quarter of
2014, compared to $2,036,000 for the first quarter of 2013.
2014, cash, cash equivalents and certificates of deposit were $9,957,000 compared to $10,909,000 at December 31, 2013. Shareholders'
equity at March 31, 2014 was $23,816,000, or $5.17 per outstanding share. This compares to shareholders' equity at December 31,
2013 of $24,055,000, or $5.22 per outstanding share.
Chief Executive Officer Ernest A. Bates, M.D., said, "Lower volume was the primary cause of the decrease in revenue and earnings
for this year's first quarter, although the reduction in Medicare reimbursement for Gamma Knife services mandated by the
American Taxpayer Relief Act of 2012 also played a role.
in volume for this year's first quarter compared to prior year was the result of several factors. One of our sites was down for
five weeks for an upgrade. Two other sites were down for approximately one month each due to equipment and personnel issues. In
addition, extreme winter weather in the Midwest and Northeast during this year's first quarter reduced volume at several of our
cost reduction program helped mitigate the impact of lower revenue on our bottom line. General and administrative expenses decreased
25.3% for this year's first quarter versus a year ago. We are on track to achieve the goal we announced last April to reduce future
cash outlays by approximately $1,000,000 annually.
proton therapy business, construction of the dedicated proton center at the University of Florida Health Cancer Center at Orlando
Health continues. AMS will supply a MEVION S250TM Proton Therapy System for this facility. The MEVION S250 has received
FDA approval. Delivery of the MEVION synchrocyclotron to the UF Health Cancer Center is expected this fall, and the facility is
expected to begin treating patients in late 2015. The UF Health Cancer Center at Orlando Health is the model for additional proton
centers AMS is developing."
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) 351-9852
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 37294011.
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 the latest IGRT and IMRT systems, as well
as its proprietary Operating Room for the 21st CenturySM concept. AMS owns a common stock investment in Mevion Medical
Systems, Inc., developer of the compact MEVION S250 Proton Therapy System.
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, Mevion Medical Systems, Inc. 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, 2013, and the definitive Proxy Statement for the Annual Meeting of Shareholders to be held on
| Contacts: | American Shared Hospital Services |
| Ernest A. Bates, M.D., (415) 788-5300 | |
| Chairman and Chief Executive Officer | |
| eabates@ashs.com | |
| Berkman Associates | |
| Neil Berkman, (310) 477-3118 | |
| President | |
| info@berkmanassociates.com |
AMERICAN SHARED HOSPITAL SERVICES
| PRESS RELEASE | May 15, 2014 |
| First Quarter 2014 Financial Results | Page 3 |
Selected Financial Data
| Summary of Operations Data | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| Revenue | $ | 4,064,000 | $ | 4,668,000 | ||||
| Costs of revenue | 2,775,000 | 2,550,000 | ||||||
| Gross margin | 1,289,000 | 2,118,000 | ||||||
| Selling & administrative expense | 922,000 | 1,235,000 | ||||||
| Interest expense | 470,000 | 471,000 | ||||||
| Operating (loss) income | (103,000 | ) | 412,000 | |||||
| Gain (loss) from foreign currency transactions | 15,000 | (141,000 | ) | |||||
| Interest & other income | 9,000 | 14,000 | ||||||
| (Loss) income before income taxes | (79,000 | ) | 285,000 | |||||
| Income tax (benefit) expense | (30,000 | ) | 52,000 | |||||
| Net (loss) income | $ | (49,000 | ) | $ | 233,000 | |||
| Less: Net income attributable to non-controlling interest | (47,000 | ) | (208,000 | ) | ||||
| Net (loss) income attributable to American Shared Hospital Services | $ | (96,000 | ) | $ | 25,000 | |||
| (Loss) earnings per common share: | ||||||||
| Basic | $ | (0.02 | ) | $ | 0.01 | |||
| Assuming dilution | $ | (0.02 | ) | $ | 0.01 |
| Balance Sheet Data | ||||||||
| March 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| Cash and cash equivalents | $ | 957,000 | $ | 1,909,000 | ||||
| Current assets | $ | 7,255,000 | $ | 7,706,000 | ||||
| Certificate of deposit | $ | 9,000,000 | $ | 9,000,000 | ||||
| Investment in equity securities | $ | 2,701,000 | $ | 2,701,000 | ||||
| Total assets | $ | 69,783,000 | $ | 71,742,000 | ||||
| Current liabilities | $ | 11,830,000 | $ | 11,785,000 | ||||
| Shareholders' equity | $ | 23,816,000 | $ | 24,055,000 |