Full Press Release Details
CORRECTING AND REPLACING AMERICAN SHARED
REPORTS FOURTH QUARTER AND 2011 RESULTS
CORRECTION by American Shared Hospital Services
SAN FRANCISCO-(BUSINESS WIRE)-Sixth graph, first
sentence of release should read: Cash flow, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA),
increased to $2,493,000 for the fourth quarter and $9,265,000 for 2011 (stead increased to $3,119,000 for the fourth
quarter and $11,258,000 for 2011 )
The corrected release reads:
San Francisco, CA -- March
15, 2012 -- AMERICAN SHARED HOSPITAL SERVICES (NYSE AMEX:AMS), a leading provider of turnkey technology solutions for advanced
radiosurgical and radiation therapy services, today announced financial results for the fourth quarter and 2011.
Fourth Quarter Results
the three months ended December 31, 2011, revenue increased 8.4% to $4,500,000 compared to $4,152,000 for the fourth quarter of
2010. Net income for the fourth quarter of 2011 rose to $244,000, or $0.05 per share. This compares to net income of $40,000, or
$0.00 per share, for the fourth quarter of 2010.
The number of procedures performed
on Gamma Knife PerfexionTM systems supplied by AMS increased 7.6% for the fourth quarter of 2011, and
increased 7.1% for 2011, compared to the fourth quarter and 2010, respectively. The total number of procedures performed in AMS'
Gamma Knife business increased 11.4% for this year's fourth quarter, and increased 4.8% for 2011, compared to the fourth quarter
and 2010, respectively.
Gross margin for this year's fourth
quarter decreased to 39.5% compared to 46.1% for the fourth quarter of 2010. This was primarily the result of an increase in depreciation
expense associated with the upgrade of a number of Gamma Knife systems to Perfexion specifications during the past year. Gross
margin also was affected to a lesser extent by the initiation of patient treatments during the quarter of the new devices supplied
by AMS to St. Vincent's Medical Center in Jacksonville, Florida and Baskent University in Adana, Turkey.
Selling and administrative expenses
for the fourth quarter of 2011 decreased 16.4% to $840,000 compared to $1,005,000 for the fourth quarter of 2010. Reflecting the
addition of new Perfexion systems to AMS' Gamma Knife portfolio, interest expense increased to $613,000 for this year's fourth
quarter compared to $562,000 for the fourth quarter last year.
Cash flow, as measured by earnings before interest, taxes,
depreciation and amortization (EBITDA), increased to $2,493,000 for the fourth quarter and $9,265,000 for 2011, compared to $2,159,000
for the fourth quarter and $8,211,000 for 2010.
Balance Sheet Highlights
At December 31, 2011, AMS cash, cash
equivalents and certificates of deposit increased to $11,580,000 compared to $10,438,000 at December 31, 2010. Shareholders' equity
at December 31, 2011 was $25,171,000, or $5.46 per outstanding share. This compares to shareholders' equity at December 31, 2010
of $23,044,000, or $5.01 per outstanding share.
Twelve Month Results
For the twelve months ended December
31, 2011, revenue increased to $22,221,000, consisting of medical services revenue of $17,237,000 and revenue from equipment sales
of $4,984,000. This compares to medical services revenue of $16,675,000 for 2010. Net income for 2011 increased to $506,000, or
$0.11 per diluted share, compared to net income for 2010 of $57,000, or 0.01 per diluted share.
In March 2011 AMS announced a contract
to upgrade a Gamma Knife to Perfexion specifications at Lehigh Valley Hospital in Allentown, Pennsylvania. As part of this upgrade,
AMS agreed to the early termination of the existing 10-year lease on the Gamma Knife system it supplied to Lehigh in 2004, and
Lehigh agreed to purchase the Perfexion system. Pre-tax income from this transaction of $844,000 was recognized in the third quarter
Chairman and Chief Executive Officer
Ernest A. Bates, M.D., said, "We are pleased with our fourth quarter growth, which featured initial revenue from our newest
Perfexion site, St. Vincent's Medical Center, and the Elekta AxesseTM Radiosurgery system we supplied to the Kisla Campus
of Baskent University under a contract announced in March, 2011. For sites in operation for more than one year, same site revenue
increased 9% over the third quarter of 2011.
"Our strategy to upgrade many
of our existing Gamma Knife sites to Gamma Knife Perfexion specifications, and to expand our base of Perfexion clients, is delivering
the growth we are striving for. The higher throughput and increased clinical utility of the Perfexion units compared to the Gamma
Knife units they replace is allowing us to realize significant incremental revenue within just a few months of installation. We
expect this trend to continue. As a result, while higher depreciation expense associated with the new Perfexion units affected
gross margin in the second half of 2011, gross margin should improve in 2012 with the additional gains in revenue we anticipate.
January, 2012, AMS entered into a contract to supply its twelfth Perfexion system in the United States to Sacred Heart Health System
in Pensacola, Florida. Pending regulatory approval, patient treatments on this Perfexion system are expected to begin later this
year. We are pleased to welcome Sacred Heart Health System as a new AMS client. We are seeing increased opportunities to place
Gamma Knife Perfexions at new and existing AMS sites both in the U.S. and internationally." Dr. Bates noted that the Perfexion
unit AMS will supply to Florence Nightingale Hospital Group in Istanbul, Turkey is expected to begin treating patients in the second
quarter, and the Gamma Knife unit AMS will provide to Hospital Central FAP in Lima, Peru and the linear accelerator site in S o
Paulo, Brazil are expected to begin treating patients later this year.
Dr. Bates continued, "Also in
January, 2012, Mevion Medical Systems, formerly Still River Systems, announced a $45 million investment in Mevion by a group of
leading private venture capital firms. After this funding, AMS owns approximately 1% of Mevion, the manufacturer of the MEVION
S250 Proton Therapy System. Proton therapy permits more precise dose targeting at predictable tissue depth than conventional X-rays,
allowing the treatment of targets adjacent to critical structures without inadvertent damage. However, due to the high cost, large
footprint, and technical complexity of traditional proton systems, the availability of proton therapy currently is limited. The
MEVION S250 significantly reduces the cost, size and complexity to levels similar to other modern X-ray radiation therapy devices,
and promises to bring accessibility, affordability and practicality to proton therapy.
"Just yesterday, Mevion announced
that it has received CE Mark certification for the MEVION S250 Proton Therapy System. This important commercial milestone indicates
that Mevion has completed its development in compliance with the European Union's Medical Device Directive. The CE Marking allows
the MEVION S250 to be marketed, sold, and installed in the European Union and in any country recognizing CE Mark approval.
"AMS is developing proton therapy
centers in Boston, Massachusetts, Orlando, Florida and Long Beach, California which are expected to employ the MEVION S250 proton
therapy device. The MEVION S250 at Barnes Jewish Hospital in St. Louis is now producing a powerful 250 MeV energy beam. Mevion
has filed a 510(k) application for marketing clearance with the FDA. We are also developing a two room proton therapy center in
I am pleased to report that a U.S. patent has been allowed on a variety of technologies jointly owned by AMS and NBBJ LP, a leading
global architecture and design firm, that are designed to increase efficiency and improve patient outcomes in the operating room.
These technologies, which we will incorporate in our Operating Room for the 21st Century concept, have applications
ranging from novel operating room lighting systems to innovative operating table design. We believe they have the potential to
improve patient safety and comfort, surgical team efficiency and satisfaction, and enhance returns for healthcare institutions."
Earnings Conference Call
American Shared has scheduled a conference
call at 12:00 p.m. PST (3:00 p.m. EST) today. To participate in the live call, dial (800) 588-4973 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,
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 the latest IGRT and IMRT systems, as well as its proprietary Operating Room for
the 21st Century concept. Through its preferred stock investment in Mevion Medical Systems, Inc., formerly Still
River Systems, AMS also plans to complement these services with the MEVION S250 proton beam radiation therapy (PBRT) system, which
has not yet been approved by the FDA.
Safe Harbor Statement
This press release may be deemed