Full Press Release Details
American Shared Hospital Services Reports
Fourth Quarter and Year End 2018 Results
Proton Revenue Increased 21.5%
San Francisco, CA - March 28, 2019
- American Shared Hospital Services (NYSE American: 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
twelve months ended December 31, 2018.
Chairman and Chief Executive Officer Ernest
A. Bates, M.D., said, "We are pleased to see continued traction and growth in our Proton Therapy business, with our Orlando
Health - UF Health Cancer Center ("Orlando Health") single room proton system posting steady gains in patients
served and on firm reimbursement trends. We remain focused on driving this business, with support from our Gamma Knife operations
where we anticipate upgrading at least three of our Gamma Knife units to Icon during the next 12 months. The Icon upgrades will
allow our centers to treat larger tumors and thus recognize previously untapped incremental revenues. We are also pursuing developing
new centers, both domestically and abroad. That said, we continue to develop our Proton Therapy business pipeline and look forward
to generating value as we replicate Orlando Health's success in new markets."
Financial Results for the Three Months
Ended December 31, 2018
For the three months ended December 31,
2018, rental income from medical services decreased 6.2% to $4,770,000 compared to rental income from medical services of $5,084,000
for the fourth quarter of 2017. Net income attributable to the Company for the fourth quarter of 2018 was $178,000, or $0.03 per
share. This compares to net income attributable to the Company for the fourth quarter of 2017 of $1,418,000, or $0.24 per share
which included an income tax benefit of $1,546,000 attributable to the revaluation of the Company's federal and state deferred
tax liabilities following recently enacted federal tax legislation, and the full write-down of the Company's investment in
equity securities of $579,000.
Fourth quarter revenue for the Company's
initial proton therapy system installed at Orlando Health in Florida increased 21.5% to $1,419,000 compared to revenue for the
fourth quarter of 2017 of $1,168,000.
Revenue for the Company's Gamma Knife operations
decreased 16.1% to $3,102,000 for the fourth quarter of 2018 compared to $3,697,000 for the fourth quarter of 2017. The decline
was due to fewer procedures and an unfavorable payor mix at the Company's retail sites.
Rental income from medical services gross
margin for the fourth quarter of 2018 decreased to $1,565,000 or 32.8% of revenue, compared to rental income from medical services
gross margin of $2,184,000 or 43.0% of revenue for the fourth quarter of 2017. This reflected a decline in Gamma Knife revenue
and an increase in costs of revenue primarily attributable to the initiation of maintenance and service costs for the Company's
proton therapy system at Orlando Health in September 2017.
Net income for the fourth quarter of 2018
was $178,000 compared to net income of $1,418,000 in the fourth quarter of 2017. Non-GAAP adjusted net income was $178,000 for
the fourth quarter of 2018. The compares to non-GAAP adjusted net income, net of the tax benefit from tax reform and the loss on
the write-down of the Company's investment in equity securities, of $451,000 in the fourth quarter of 2017. Please refer
to the financial statements included with this press release for a reconciliation of GAAP to non-GAAP financial measures.
Adjusted EBITDA, a non-GAAP financial measure,
was $2,346,000 for the fourth quarter of 2018, compared to $2,673,000 for the fourth quarter of 2017.
Financial Results for the Twelve Months
Ended December 31, 2018
For the twelve months ended December 31,
2018, rental income from medical services increased 0.8% to $19,714,000 compared to rental income from medical services of $19,556,000
Excluding treatments at three customer
sites lost due to the expiration of their contract terms in April 2017, August 2017, and April 2018, Gamma Knife revenue decreased
2.2% in 2018 compared to 2017.
Proton therapy revenue increased 22.4%
to $5,042,000 for 2018 compared to $4,120,000 for 2017.
Net income was $1,023,000 for 2018 compared
to net income of $1,923,000 in 2017. Non-GAAP adjusted net income, net of proceeds received from investment in equity securities,
was $1,001,000 for 2018. This compares to non-GAAP adjusted net income, net of the tax benefit from tax reform and the loss on
the write-down of the Company's investment in equity securities, of $956,000 for 2017.
Adjusted EBITDA, a non-GAAP financial
measure, was $10,051,000 for 2018, compared to $10,250,000 for 2017.
Balance Sheet Highlights
At December 31, 2018, cash, cash equivalents,
and restricted cash was $1,792,000, compared to $2,502,000 at December 31, 2017. Shareholders' equity at December 31, 2018 was
$31,048,000, or $5.43 per outstanding share. This compares to shareholders' equity at December 31, 2017 of $29,885,000, or $5.23
per outstanding share.
Conference Call and Webcast Information
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 1 (800) 446-1671 at least 5 minutes prior
to the scheduled start time and mention confirmation number 48424013. 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 until April 11, 2019 at the same internet addresses, or by dialing
1 (888) 843-7419 and entering 48424013# 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.
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, 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, 2017, its Quarterly Reports on Form 10-Q for the three months ended March 31, 2018, June
30, 2018, and September 30, 2018, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 14, 2018.
Non-GAAP Financial Measure
Neither Adjusted EBITDA nor non-GAAP net
income, 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 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. We use these non-GAAP financial measures as a means to evaluate period-to-period comparisons.
Our management believes that these non-GAAP financial measures provide 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 these non-GAAP financial
measures in assessing our performance.
American Shared Hospital Services
Ernest A. Bates, M.D., (415) 788-5300
Chairman and Chief Executive Officer
PCG Advisory, Inc., Investor Relations