http://www.businesswire.com/news/home/20091105005344/en
SAN FRANCISCO--(Business Wire)--
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 third quarter and first nine months of
2009.
Third Quarter Results
For the three months ended September 30, 2009, revenue decreased to $3,926,000
compared to $4,532,000 for the third quarter of 2008. Net income for the third
quarter of 2009 was $17,000, or $0.00 per diluted share, which included
transaction costs of $22,000 incurred during the quarter. This compares to net
income of $25,000, or $0.00 per diluted share, for the third quarter of 2008.
The total number of Gamma Knife procedures performed during this year's third
quarter was unchanged versus prior year. Primarily reflecting normal
fluctuations in the mix of business, revenue decreased due to a shift in volume
toward centers with relatively lower payment rates per procedure compared to the
third quarter of 2008.
Cash flow, as measured by earnings before interest, taxes, depreciation and
amortization (EBITDA), was $2,220,000 for the third quarter and $6,360,000 for
the first nine months of 2009, compared to EBITDA of $2,273,000 for the third
quarter and $7,298,000 for the first nine months of 2008.
At September 30, 2009, AMS reported cash and cash equivalents of $9,469,000.
This compares to cash and cash equivalents of $10,286,000 at December 31, 2008.
Shareholders' equity at September 30, 2009 was $22,776,000, or $4.96 per
outstanding share. This compares to shareholders' equity at December 31, 2008 of
$22,938,000, or $4.87 per outstanding share.
The Company repurchased 74,863 of its common shares during the third quarter of
2009 for an average purchase price of $2.37 per share. The number of common
shares outstanding at September 30, 2009 was 4,595,070 compared to 4,712,183 at
December 31, 2008.
Nine Months Results
For the nine months ended September 30, 2009, revenue decreased to $12,676,000
compared to $14,359,000 for the first nine months of 2008. The net loss for this
year's first nine months was $51,000, or ($0.01) per share, which included
transaction costs of $342,000 ($174,000 on an after-tax basis, or ($0.04) per
share). This compares to net income for the first half of 2008 of $394,000, or
$0.08 per diluted share.
As previously disclosed, earlier this year the Company engaged in discussions
concerning the possible sale of its 81% interest in GKF, the operating
subsidiary for the Company's 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.
Chairman and Chief Executive Officer Ernest A. Bates, M.D. said, "AMS' creative
financing solutions have helped make advanced radiation oncology solutions
available and affordable to hospitals and their patients since 1991. Over the
years we have built the industry's largest portfolio of radiosurgical and
radiation therapy assets, including five Leksell Gamma Knife Perfexion systems,
14 Gamma Knife systems, and an IMRT system and related equipment now treating
patients at hospitals throughout the United States.
"While we are working to place additional Perfexion and related systems, our
primary focus is on proton beam radiation therapy (PBRT), the next great growth
opportunity in radiation oncology. We recently entered into discussions with a
leading cancer center regarding the development of a multi-treatment-room PBRT
facility in New York City. This center would be in addition to the
three-treatment-room PBRT facility we are developing in the San Francisco Bay
area with proton therapy equipment to be provided by Varian Medical Systems. AMS
also has entered into contracts to place three Monarch 250 single-treatment-room
PBRT devices. The Monarch 250 is an affordable, precise and compact proton
therapy system for cancer treatment under development by Still River Systems, in
which AMS owns an equity interest. We have many additional PBRT projects in
various stages of development, and are confident that this technology will drive
AMS' growth in the years ahead."
Earnings Conference Call
American Shared has scheduled a conference call at 12:00 p.m. PDT (3:00 p.m.
EDT) today. To participate in the live call, dial (800) 531-4216 at least 5
minutes prior to the scheduled start time. A simultaneous WebCast of the call
may be accessed through the Company's website, www.ashs.com, or through CCBN,
www.earnings.com (individual investors) or www.streetevents.com (institutional
investors). A replay will be available for 30 days at these same internet
addresses, or by calling (888) 843-8996, pass code 25754754#.
About AMS
American Shared Hospital Services provides turnkey technology solutions for
advanced radiosurgical and radiation therapy services. AMS is the world leader
in providing Gamma Knife radiosurgery equipment, a non-invasive treatment for
malignant and benign brain tumors, vascular malformations and trigeminal
neuralgia (facial pain). The Company also offers the latest IGRT and IMRT
systems, as well as its proprietary Operating Room for the 21st Century®
concept. Through its preferred stock investment in Still River Systems, AMS also
plans to complement these services with the Monarch 250TM proton beam radiation
therapy (PBRT) system, which has not yet been approved by the FDA.
Safe Harbor Statement
This press release may be deemed to contain certain forward-looking statements
with respect to the financial condition, results of operations and future plans
of American Shared Hospital Services, which involve risks and uncertainties
including, but not limited to, the risks of the Gamma Knife and radiation
therapy businesses, the risks of developing The Operating Room for the 21st
Century program, and the risks of investing in a development-stage company,
Still River Systems, Inc., without a proven product.Further information on
potential factors that could affect the financial condition, results of
operations and future plans of American Shared Hospital Services is included in
the filings of the Company with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year ended December
31, 2008, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2009
and June 30, 2009, and the definitive Proxy Statement for the Annual Meeting of
Shareholders held on May 28, 2009.
AMERICAN SHARED HOSPITAL SERVICES
Selected Financial Data
(unaudited)
Summary of Operations Data
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Revenue $ 3,926,000 $ 4,532,000 $ 12,676,000 $ 14,359,000
Costs of revenue 2,343,000 2,648,000 7,578,000 8,063,000
Gross margin 1,583,000 1,884,000 5,098,000 6,296,000
Selling & administrative expense 875,000 1,116,000 2,870,000 3,352,000
Transaction costs 22,000 -- 342,000 --
Interest expense 514,000 638,000 1,526,000 1,833,000
Operating income 172,000 130,000 360,000 1,111,000
Other income (expense) -- 90,000 16,000 323,000
Income before income taxes 172,000 220,000 376,000 1,434,000
Income tax expense (benefit) 16,000 24,000 (49,000 ) 378,000
Net income $ 156,000 $ 196,000 $ 425,000 $ 1,056,000
Less: Net income attributable to non-controlling interest (139,000 ) (171,000 ) (476,000 ) (662,000 )
$ 17,000 $ 25,000 $ (51,000 ) $ 394,000
Earnings per common share:
Basic $ 0.00 $ 0.00 $ (0.01 ) $ 0.08
Assuming dilution $ 0.00 $ 0.00 $ (0.01 ) $ 0.08
Balance Sheet Data
9/30/2009 12/31/2008
Cash and cash equivalents $ 9,469,000 $ 10,286,000
Current assets $ 14,086,000 $ 15,462,000
Total assets $ 61,498,000 $ 62,196,000
Current liabilities $ 8,296,000 $ 15,667,000
Shareholders' equity $ 22,776,000 $ 22,938,000
American Shared Hospital Services
Ernest A. Bates, M.D., 415-788-5300
Chairman and Chief Executive Officer
e.bates@ashs.com
or
Berkman Associates
Neil Berkman, 310-826-5051
President
info@berkmanassociates.com
Copyright Business Wire 2009
