American Shared Hospital Services Reports Second Quarter 2019 Results
San Francisco, CA – August 13, 2019 – 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 and six months ended June 30, 2019.
Total revenue in the second quarter was $5,197,000, a 0.5% increase vs. comparable period in 2018. Proton therapy revenue of $1,409,000 increased 3.4% quarter over quarter. Gamma Knife revenue of $3,600,000 increased 0.2% quarter over quarter due to a contractual adjustment related to Medicare reimbursement at one of the Company’s existing sites.
Total proton therapy fractions in the second quarter increased 8.6% quarter over quarter. The increase for the second quarter was the result of continuing increased awareness of the benefits of proton therapy treatment.
Net income in the second quarter was $31,000 vs. $287,000 in the comparable period in 2018. The decrease in net income was due to increased operating expense and selling and administrative costs.
Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "We are encouraged by continued procedural gains in our Proton Therapy business, with Orlando Health – UF Health Cancer Center increasing treatments across indications. We remain optimistic about procedural share gains in this business, in line with traction on the therapeutic advantages of proton therapy. In Gamma Knife, the one-time business disruptions in the quarter that limited procedural volumes was resolved beginning July 2019. Excluding this, we are pleased to see the Gamma Knife business show signs of recovery, with sales up 0.2% from a year ago, aided in part by the opening of our Merrillville, Indiana facility early this year, and with positive impact from a Medicare contractual adjustment at one site. We continue to expect completion of ongoing upgrades to Icon at Kettering Medical in Ohio in second half 2019 and maintain our focus on driving business development in Proton Therapy.”
Financial Results for the Three Months Ended June 30, 2019
For the three months ended June 30, 2019, revenues increased 0.5% to $5,197,000 compared to revenues of $5,169,000 for the second quarter of 2018. Net income attributable to the Company for the second quarter of 2019 was $31,000, or $0.01 per share. This compares to net income attributable to the Company for the second quarter of 2018 of $287,000, or $0.05 per share.
Second quarter revenue for the Company's initial proton therapy system installed at Orlando Health in Florida increased 3.4% to $1,409,000 compared to revenue for the second quarter of 2018 of $1,363,000.
Revenue for the Company’s Gamma Knife operations increased 0.2% to $3,600,000 for the second quarter of 2019 compared to $3,594,000 for the second quarter of 2018. Excluding the benefit from a contractual adjustment for Medicare reimbursement, revenue for the Company's Gamma Knife operations decreased 11.0% to $3,200,000. The decline in Gamma Knife revenues was due to a contract labor dispute at one of the Company’s existing sites resulting in no procedures performed during the second quarter. An unfavorable payor mix at the Company’s retail sites also contributed to the decline.
The following information was filed by American Shared Hospital Services (AMS) on Tuesday, August 13, 2019 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.