AMERICAN SHARED HOSPITAL SERVICES
REPORTS FOURTH QUARTER AND 2009 RESULTS
San Francisco, CA
, March 23, 2010 AMERICAN SHARED HOSPITAL SERVICES (NYSE AMEX:AMS)
leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy
services, today announced financial results for the fourth quarter and 2009.
Fourth Quarter Results
For the three months ended December 31, 2009, revenue decreased to $4,092,000 compared to
$4,740,000 for the fourth quarter of 2008, but increased sequentially from $3,926,000 reported for
the third quarter of 2009. Pre-tax income was $159,000 and the net loss for the fourth quarter of
2009 was $137,000, or ($0.03) per share. This compares to net income of $83,000, or $0.02 per
diluted share, for the fourth quarter of 2008, and to net income of $17,000, or $0.00 per share,
for the third quarter of 2009. Income tax expense was $296,000 primarily due to disproportionately
high income tax expense relating to our profitable operating subsidiary.
The total number of Gamma Knife® procedures performed during this years fourth quarter decreased
1% versus prior year, but increased 5% sequentially. The decrease in revenue also reflected a
shift in volume toward centers with relatively lower payment rates per procedure compared to the
fourth quarter of 2008.
Selling and administrative expenses increased in the quarter versus prior year, primarily to
support the Companys international growth initiatives. This effort culminated in the signing in
February 2010 of the Companys first international radiosurgery contract, a six-year agreement with
the Peruvian Air Force (FAP) to supply Gamma Knife services at Hospital Central FAP in Lima,
Cash flow, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA),
was $2,175,000 for the fourth quarter and $8,535,000 for 2009, compared to EBITDA of $2,513,000 for
the fourth quarter of 2008 and $9,811,000 for the year as a whole.
At December 31, 2009, AMS reported cash, cash equivalents and certificates of deposit of
$9,833,000. This compares to cash and cash equivalents of $10,286,000 at December 31, 2008.
Shareholders equity at December 31, 2009 was $22,755,000, or $4.95 per outstanding share. This
compares to shareholders equity at December 31, 2008 of $22,938,000, or $4.87 per outstanding
The Company repurchased 119,000 of its common shares during 2009 for an average purchase price of
$2.28 per share. The number of common shares outstanding at December 31, 2009 was 4,595,070
compared to 4,712,183 at December 31, 2008.
For the twelve months ended December 31, 2009, revenue decreased to $16,768,000 compared to
$19,099,000 for 2008. Pre-tax income was $59,000 and the net loss for 2009 was $188,000, or
($0.04) per share, which included transaction costs of $342,000. This compares to net income for
2008 of $477,000, or $0.10 per diluted share.
As previously disclosed, in 2009 the Company engaged in discussions concerning the possible sale of
its 81% interest in GKF, the operating subsidiary for the Companys Gamma Knife business. These
discussions were terminated on May 28, 2009. Under applicable accounting rules, the Company is
required to expense the legal, accounting, investment banking and other costs incurred for these
activities, which are classified separately as transaction costs.
Discussion and Analysis
Chairman and Chief Executive Officer Ernest A. Bates, M.D. announced today that he was pleased to
announce three exciting new directions for the company.
The first is the resurgence of the Gamma Knife business, a result of the introduction of
the new Perfexion Gamma Knife unit. We are installing two new Perfexion units this year and have
plans to purchase five (5) additional Perfexion systems over the next two years. Treatment
expansion should be aided by recently published articles from the University of Texas M.D. Anderson
Cancer Center and the Karolinska University
Hospital in Sweden that have stated the advantages of the Gamma Knife for treatment of certain