AMERICAN SHARED HOSPITAL SERVICES
REPORTS FOURTH QUARTER AND 2010 RESULTS
San Francisco, CA — March 3, 2011 — 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 2010.
Fourth Quarter Results
For the three months ended December 31, 2010, revenue increased to $4,152,000 compared to $4,092,000 for the fourth quarter of 2009. Operating income for the fourth quarter of 2010 increased 19% to $348,000 compared to $293,000 for the fourth quarter of 2009. Net income for the fourth quarter of 2010 was $40,000, or $0.01 per share. This compares to a net loss ($137,000), or ($0.03) per share, for the fourth quarter of 2009.
The total number of Gamma Knife® procedures performed during the fourth quarter of 2010 increased 2% compared to the fourth quarter of 2009, and increased 4% for 2010 versus 2009.
Selling and administrative expenses for the fourth quarter of 2010 decreased 5% to $1,005,000 compared to $1,058,000 for the fourth quarter of 2009, even as the Company continued to support its domestic and international growth initiatives.
Cash flow, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA), was $2,159,000 for the fourth quarter and $8,211,000 for 2010, compared to $2,175,000 for the fourth quarter and $8,535,000 in 2009.
At December 31, 2010, AMS reported cash, cash equivalents and certificates of deposit of $10,438,000 compared to $9,833,000 at December 31, 2009. Shareholders' equity at December 31, 2010 was $23,044,000, or $5.01 per outstanding share. This compares to shareholders' equity at December 31, 2009 of $22,755,000, or $4.95 per outstanding share.
For the twelve months ended December 31, 2010, revenue was $16,675,000 compared to $16,768,000 for 2009. Net income for 2010 was $57,000, or $0.01 per diluted share. This compares to a net loss for 2009 of ($188,000), or ($0.04) per share.
Discussion and Analysis
Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "2010 was a year of significant progress for AMS. The benefits of our decision to upgrade many of our existing Gamma Knife sites to Gamma Knife® PerfexionTM specifications are becoming increasingly apparent, primarily due to Perfexion's substantially higher treatment capacity compared to the Gamma Knife. Growth resumed in our Gamma Knife business, with the number of procedures up 8.5% and revenue up 5.2% in the second half of 2010 versus prior year. We are optimistic that these trends will continue.
"Over the next few weeks we expect to announce several new Gamma Knife and Perfexion contracts that will add significantly to our revenue base beginning in 2011. This is in addition to the continued positive impact of the Perfexion upgrades that already went into service at Smilow Cancer Hospital at Yale-New Haven in the second quarter of 2010 and at Methodist Hospital in San Antonio, Texas in the third quarter, and the launch of patient treatments at Fort Sanders Regional Medical Center in Knoxville, Tennessee, our ninth Perfexion site, in January 2011. We also anticipate that our Gamma Knife unit at Hospital Central FAP in Lima, Peru will begin treating patients later this year, and our linear accelerator site in São Paulo is scheduled to go on-line in 2012. And we
continue to negotiate additional Gamma Knife and Perfexion contracts in the United States, South America and Europe.
Dr. Bates continued, "In our proton therapy business, we are developing centers in Dayton, Ohio, Boston, Orlando, and Long Beach, California, and are pursuing many other opportunities. We also are well along in arranging the financing required to move these projects forward.
The following information was filed by American Shared Hospital Services (AMS) on Thursday, March 3, 2011 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.