Full Press Release Details
SHARED HOSPITAL SERVICES
FIRST QUARTER RESULTS
San Francisco, CA, May 14,
2010 -- 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 first quarter of 2010.
three months ended March 31, 2010, revenue decreased 2% to $4,088,000 compared
to $4,167,000 for the first quarter of 2009, and was essentially flat when
compared to revenue of $4,092,000 for the fourth quarter of
2009. Operating income for this year's first quarter increased to
$157,000 compared to an operating loss for the first quarter of 2009 of
$76,000. Pre-tax income was $188,000 and net income for the first
quarter of 2010 was $8,000, or $0.00 per share. This compares to a
pre-tax loss of $42,000 and a net loss of $94,000, or $(0.02) per share, for the
first quarter of 2009.
number of Gamma Knife procedures performed during this year's first quarter
increased 2% versus prior year. Gross margin for the first quarter of
2010 improved to $1,699,000, or 42% of revenue, compared to $1,597,000, or 38%
of revenue, for the first quarter of 2009, primarily reflecting effective cost
and administrative expenses for this year's first quarter increased to
$1,061,000 compared to $993,000 for the first quarter of 2009, but were
essentially flat sequentially. This increase was primarily to support
the Company's domestic and international growth initiatives.
flow, as measured by earnings before interest, taxes, depreciation and
amortization (EBITDA), increased to $1,984,000 for the first quarter of 2010
compared to $1,909,000 for the first quarter of 2009.
31, 2010, AMS reported cash, cash equivalents and certificates of deposit of
$9,552,000. This compares to cash and cash equivalents of $9,833,000 at December
31, 2009. Shareholders' equity at March 31, 2010 was $22,865,000, or
$4.98 per outstanding share. This compares to shareholders' equity at
December 31, 2009 of $22,755,000, or $4.95 per outstanding share.
and Chief Executive Officer Ernest A. Bates, M.D. said, "The outlook for our
Gamma Knife business continues to improve. We are now benefiting from
the new Leksell Gamma Knife PerfexionTM unit
that went into service at Smilow Cancer Hospital at Yale-New Haven in April, and
volume at one of our sites that had been sharply reduced in recent quarters due
to physician turnover is expected to pick up again beginning this
month. Another Perfexion device is scheduled to go into service later
this year, and we anticipate placing five additional Perfexion systems over the
next two years. Two of our sites experienced treatment increases
averaging approximately 50% following Perfexion installation. In
addition, Gamma Knife treatments are expected to begin late this year at our
first international site, in Lima, Peru, and we are optimistic about ongoing
contract negotiations in South America, Europe and the United
continued, "Expansion of our portfolio of Gamma Knife, Perfexion and related
systems is only one aspect of AMS' growth story. We also are building
a leadership position in proton beam radiation therapy (PBRT), the next great
growth opportunity in radiation oncology. This week we announced our
latest PBRT project, an agreement with Kettering Medical Center to
develop a proton therapy center in Dayton, Ohio. Renowned for
bringing the latest medical technology to patients in southwest Ohio, including
a Perfexion system supplied by AMS, Kettering Medical Center is the
ideal partner to develop this PBRT facility with us.
Kettering project is in addition to PBRT treatment centers that AMS is
developing in San Francisco, New York City, Boston, Orlando and Long Beach,
California. We are committed to bringing each of these projects to
fruition. Our recently announced agreement with Siebert Brandford
Shank & Co. LLC, one of the nation's leading underwriters of public debt, to
act as placement agent in connection with the debt financing of these and other
projects under development, is another important step forward for
Shared has scheduled a conference call at 8:00 a.m. PDT (11:00 a.m. EDT)
today. To participate in the live call, dial (800) 471-6718 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) 843-8996, pass code
Shared Hospital Services (www.ashs.com)
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 Still River
Systems, AMS also plans to complement these services with the Monarch 250TM PBRT
system, which has not yet been approved by the FDA.
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, 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,
Still River Systems, Inc., without a proven product. 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, 2009, and the definitive Proxy Statement for the Annual
Meeting of Shareholders to be held on June 2, 2010.
| Contacts: | American Shared Hospital Services |
| Ernest A. Bates, M.D., Chairman and Chief Executive Officer (415) 788-5300 e.bates@ashs.com Berkman Associates Neil Berkman, President (310) 826-5051 info@berkmanassociates.com |
| AMERICAN SHARED HOSPITAL SERVICES | |
| PRESS RELEASE | May 14, 2010 |
| First Quarter Financial Results | Page 3 |
| Selected Financial Data | |
| (unaudited) |
| Summary of Operations Data | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2010 | 2009 | |||||||
| Revenue | $ | 4,088,000 | $ | 4,167,000 | ||||
| Costs of revenue | 2,389,000 | 2,570,000 | ||||||
| Gross margin | 1,699,000 | 1,597,000 | ||||||
| Selling & administrative expense | 1,061,000 | 993,000 | ||||||
| Transaction costs | -- | 197,000 | ||||||
| Interest expense | 481,000 | 483,000 | ||||||
| Operating income (loss) | 157,000 | (76,000 | ) | |||||
| Interest & other income | 31,000 | 34,000 | ||||||
| Income (loss) before income taxes | 188,000 | (42,000 | ) | |||||
| Income tax expense (benefit) | 11,000 | (93,000 | ) | |||||
| Net income | 177,000 | 51,000 | ||||||
| Less: Net income attributable to non-controlling interest | (169,000 | ) | (145,000 | ) | ||||
| Net income (loss) attributable to American Shared Hospital Services | 8,000 | (94,000 | ) | |||||
| Earnings (loss) per common share: | ||||||||
| Basic | $ | 0.00 | $ | (0.02 | ) | |||
| Assuming dilution | $ | 0.00 | $ | (0.02 | ) |
| Balance Sheet Data | ||||||||
| March 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Cash and cash equivalents | $ | 552,000 | $ | 833,000 | ||||
| Certificate of deposit | $ | 9,000,000 | $ | 9,000,000 | ||||
| Current assets | $ | 14,442,000 | $ | 14,474,000 | ||||
| Investment in preferred stock | $ | 2,617,000 | $ | 2,617,000 | ||||
| Total assets | $ | 62,227,000 | $ | 60,621,000 | ||||
| Current liabilities | $ | 7,301,000 | $ | 7,977,000 | ||||
| Shareholders' equity | $ | 22,865,000 | $ | 22,755,000 |