American Shared Hospital Services Reports Second Quarter 2020 Financial Results
COVID-19 Pandemic Had Significant Impact on Q2 Volumes
SAN FRANCISCO, CA, August 14, 2020 ‒ 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 second quarter ended June 30, 2020.
Second Quarter Financial Highlights
•The Company completed its acquisition of Gamma Knife Center Ecuador S. A.
•Total revenue in the second quarter was $3,991,000, a decline of 23.2% from the comparable period in 2019. Proton therapy revenue of $1,401,000 was consistent with the second quarter of 2019. Gamma Knife revenue of $2,590,000 declined 28.1% compared to the second quarter of 2019 due to the impact of the COVID-19 pandemic on volumes, as well as lower average reimbursement at the Company’s retail sites.
•Total proton therapy fractions in the second quarter decreased 4.1% compared to the second quarter of 2019. The decrease for the second quarter resulted from the impact of the COVID-19 pandemic. Gamma Knife volumes for centers in operation decreased 8.9% from Gamma Knife volumes for those same centers during the same period of the prior year, also primarily as a result of the COVID-19 pandemic.
•Net loss in the second quarter was $483,000 compared to net income of $31,000 for the second quarter of 2019. The decrease in net income was due to lower Gamma Knife revenue, and higher expenses, including, but not limited to, the COVID-19 pandemic, the switch to a virtual annual meeting and transaction costs from the June acquisition of the Gamma Knife Center in Ecuador.
Ray Stachowiak, Interim President and Chief Executive Officer, commented, “In the second quarter, the COVID-19 pandemic impacted our financial results more than expected, with many patients delaying their treatments during the early months of this unprecedented health crisis. Lower volumes for both proton beam therapy and Gamma Knife procedures, as well as lower total reimbursement for Gamma Knife procedures, combined with a high level of fixed costs, reduced our gross margin. This was further negatively impacted by other pandemic related costs, such as the expense required to switch to a virtual format for the annual meeting of shareholders. The Company’s purchase of Gamma Knife Center, Ecuador S.A. in June also resulted in additional expenses related to the costs of completing the acquisition. As a result of these economic issues and activities, AMS reported a loss for the second quarter.
The following information was filed by American Shared Hospital Services (AMS) on Friday, August 14, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.