AMERICAN SHARED HOSPITAL SERVICES
REPORTS FOURTH QUARTER AND 2008 RESULTS
San Francisco, CA, March 13, 2009 AMERICAN SHARED HOSPITAL SERVICES (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 2008.
Fourth Quarter Results
For the three months ended December 31, 2008, revenue was $4,740,000. This compares to revenue for
the fourth quarter of 2007 of $8,311,000, which included $3,200,000 from the sale of equipment to a
clinical partner whose lease agreement on a Gamma Knife expired under its terms in January 2008.
The decrease in revenue for the fourth quarter of 2008 versus the fourth quarter of 2007, net of
revenue from the asset sale, reflected the planned reduction in Gamma Knifes in operation at
clinical partner sites, partially offset by a 5% increase in revenue for units in operation more
than one year.
Net income for the fourth quarter of 2008 was $83,000, or $0.02 per diluted share. This compares
to net income of $178,000, or $0.04 per diluted share, for the fourth quarter of 2007.
Cash flow, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA),
was $2,513,000 for the fourth quarter of 2008 and $9,811,000 for the year as a whole, compared to
EBITDA of $2,403,000 and $9,405,000 for the fourth quarter and 2007, respectively.
At December 31, 2008, AMS reported cash, cash equivalents and short and long-term securities of
$10,286,000. This compares to cash, cash equivalents and short and long-term securities of
$10,010,000 at December 31, 2007. Shareholders equity at December 31, 2008 was $19,728,000, or
$4.19 per outstanding share. This compares to shareholders equity at December 31, 2007 of
$19,540,000, or $3.89 per outstanding share.
The Company repurchased 315,904 of its common shares during the fourth quarter of 2008 for an
average purchase price of $1.40 per share, reducing the number of common shares outstanding to
4,712,183 at December 31, 2008 from 5,026,587 at December 31, 2007.
For the twelve months ended December 31, 2008, revenue decreased to $19,099,000 compared to
$22,622,000 for 2007, which included $3,200,000 from the asset sale mentioned above.
Net income for 2008 was $477,000, or $0.10 per diluted share. This compares to net income of
$951,000, or $0.19 per diluted share, for 2007.
We were pleased to deliver a profit for 2008 our tenth consecutive profitable year and strong
cash flow during these difficult economic times, even as we transition our portfolio of
radiosurgical and radiation therapy assets to next-generation devices for radiation oncology
delivery. Financing requests from current and potential clinical partners remain strong for the
entire range of radiation therapy equipment available today and on the horizon. In fact, we now
are exploring opportunities to apply our fee-for-service financing model internationally, following
the receipt of requests for proposals from potential clinical partners in South America, Europe and
the Middle East for the Gamma Knife Perfexion system. The compelling value proposition we offer
our clinical partners, together with our solid cash flow and balance sheet, position us to pursue
these opportunities aggressively, said Chairman and Chief Executive Officer Ernest A. Bates, M.D.
In addition to the three Perfexion systems that began treating patients at clinical partner sites
in 2008, during the year AMS also entered into an agreement with A.M. Nisar Syed & Associates, a
leading radiation oncology group, to place a single-treatment-room proton beam radiation therapy
(PBRT) device at Long Beach Memorial Medical Center. In 2007, AMS announced contracts to place
single-treatment- room PBRT devices at Tufts Medical Center in Boston and Orlando Regional
Healthcare (with professional services to be provided exclusively by M.D. Anderson Cancer Center