American Shared Hospital Services (AMS, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 services a non-invasive treatment for malignant and benign brain tumors vascular malformations and trigeminal neuralgia . The Company also offers the latest IGRT and IMRT systems as well as its proprietary Operating Room for the twenty first Century concept. Through its equity investment in Still River Systems AMS also plans to complement these services with the Clinatron-two hundred fifty proton beam radiation therapy system which has not yet been approved by the FDA. American Shared Hospital Services has a market cap of $10.6 million; its shares were traded at around $2.27 with a P/E ratio of 56.8 and P/S ratio of 0.5.
Total costs of revenue decreased by $94,000 and $180,000 to $2,665,000 and $5,235,000 for the three and six month periods ended June 30, 2009 from $2,759,000 and $5,415,000 for the three and six month periods ended June 30, 2008. Maintenance and supplies increased by $108,000 and $225,000 for the three and six month periods ended June 30, 2009 compared to the same periods in the prior year, primarily due to contract maintenance that began after the end of the warranty period on three Gamma Knife Perfexion units. Depreciation and amortization decreased by $37,000 for the three month period, and increased by $29,000 for the six month period ended June 30, 2009 compared to the same periods in the prior year. The decrease for the three month period is primarily because there was no depreciation at one site while it was being upgraded to a Gamma Knife Perfexion unit. In addition, depreciation was stopped at one site because the Company is attempting to trade in the unit towards another Gamma Knife unit or place the unit at another site. The increase for the six month period is primarily due to Gamma Knife Perfexion upgrades at two sites during the past year and a new Perfexion system that began operation in the third quarter 2008. This more than offset a reduction in depreciation from a Gamma Knife unit that was sold to a customer at the end of the first quarter 2008, and depreciation being stopped for the unit that the Company is trying to trade-in or place elsewhere. Other direct operating costs decreased by $165,000 and $434,000 for the three and six month periods ended June 30, 2009 compared to the same periods in the prior year. For the three and six month periods the decrease is primarily due to lower operating costs in connection with the Companys retail sites. For the six month period the decrease is also due to lower site specific marketing related costs.
Other income (expense) decreased by $104,000 to expense of $18,000 for the three month period ended June 30, 2009 from income of $86,000 for the same period in the prior year, and decreased $217,000 to $16,000 for the six month period from $233,000 for the same period in the prior year. The decrease for both the three and six month periods was primarily due a reduction in interest income as a result of lower interest rates available on invested cash balances. For the three month period ended June 30, 2009 there was also cost of approximately $20,000 from the early extinguishment of debt. For the six month period ended June 30, 2009, there was no gain on sale of equipment compared to a gain on the sale of equipment of approximately $56,000 for the same period in the prior year.
The Company had income tax expense of $28,000 and an income tax benefit of $65,000 for the three and six month periods ended June 30, 2009 compared to income tax expense of $205,000 and $354,000 for the three and six month periods ended June 30, 2008, respectively. For the three month period, this is due to income before income taxes of $246,000 for the three month period ended June 30, 2009 compared to income before income taxes of $673,000 in the same period in 2008. For the six month period this is due to income before income taxes of $204,000 in the first six months of 2009 compared to income before income taxes of $1,214,000 for the same period in 2008. Based on the Companys current estimated effective income tax rate for 2009, a 49% income tax provision was applied to net income before income taxes and
The Company had net income of $26,000, or $0.01 per diluted share, and a net loss of $68,000, or ($0.01) per diluted share, for the three and six month periods ended June 30, 2009, compared to net income of $213,000, or $0.04 per diluted share, and $369,000, or $0.07 per diluted share, in the same periods in the prior year, respectively. The decrease for both the three and the six month periods was primarily due to reduced medical services revenue, transaction costs and lower interest income, partially offset by lower costs of revenue, selling and administrative costs and interest expense.
The Company had cash and cash equivalents of $9,861,000 at June 30, 2009 compared to $10,286,000 at December 31, 2008. The Companys cash position decreased by $425,000 due to payments for the purchase of property and equipment of $614,000, principal payments on long term debt and capital leases of $4,332,000, distributions to minority owners of $209,000 and the repurchase of Company stock of $94,000. These decreases were partially offset by net cash from operating activities of $3,824,000 and advances on the Companys line of credit with a bank of $1,000,000.
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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 services a non-invasive treatment for malignant and benign brain tumors vascular malformations and trigeminal neuralgia . The Company also offers the latest IGRT and IMRT systems as well as its proprietary Operating Room for the twenty first Century concept. Through its equity investment in Still River Systems AMS also plans to complement these services with the Clinatron-two hundred fifty proton beam radiation therapy system which has not yet been approved by the FDA. American Shared Hospital Services has a market cap of $10.6 million; its shares were traded at around $2.27 with a P/E ratio of 56.8 and P/S ratio of 0.5.
Highlight of Business Operations:
Medical services revenue decreased by $519,000 and $1,077,000 to $4,583,000 and $8,750,000 for the three and six month periods ended June 30, 2009 from $5,102,000 and $9,827,000 for the three and six month periods ended June 30, 2008, respectively. The decreases for both the three and six month periods are primarily due to low volume at one of the Companys Gamma Knife sites and one Gamma Knife unit being out of service for an extended period of time during first and second quarter 2009 for an upgrade to the Perfexion unit. Excluding these two sites, revenue at sites in operation more than one year decreased approximately 6% for both the three and six month periods, respectively. As a result, revenue from Gamma Knife operations decreased to $4,263,000 and $8,087,000 for the three and six month periods ended June 30, 2009 compared to $4,729,000 and $9,090,000 for the three and six month periods ended June 30, 2008. Revenue from the Companys radiation therapy contract decreased by $53,000 and $74,000 to $320,000 and $663,000 for the three and six month periods ended June 30, 2009 compared to the same periods in the prior year, respectively.Total costs of revenue decreased by $94,000 and $180,000 to $2,665,000 and $5,235,000 for the three and six month periods ended June 30, 2009 from $2,759,000 and $5,415,000 for the three and six month periods ended June 30, 2008. Maintenance and supplies increased by $108,000 and $225,000 for the three and six month periods ended June 30, 2009 compared to the same periods in the prior year, primarily due to contract maintenance that began after the end of the warranty period on three Gamma Knife Perfexion units. Depreciation and amortization decreased by $37,000 for the three month period, and increased by $29,000 for the six month period ended June 30, 2009 compared to the same periods in the prior year. The decrease for the three month period is primarily because there was no depreciation at one site while it was being upgraded to a Gamma Knife Perfexion unit. In addition, depreciation was stopped at one site because the Company is attempting to trade in the unit towards another Gamma Knife unit or place the unit at another site. The increase for the six month period is primarily due to Gamma Knife Perfexion upgrades at two sites during the past year and a new Perfexion system that began operation in the third quarter 2008. This more than offset a reduction in depreciation from a Gamma Knife unit that was sold to a customer at the end of the first quarter 2008, and depreciation being stopped for the unit that the Company is trying to trade-in or place elsewhere. Other direct operating costs decreased by $165,000 and $434,000 for the three and six month periods ended June 30, 2009 compared to the same periods in the prior year. For the three and six month periods the decrease is primarily due to lower operating costs in connection with the Companys retail sites. For the six month period the decrease is also due to lower site specific marketing related costs.
Other income (expense) decreased by $104,000 to expense of $18,000 for the three month period ended June 30, 2009 from income of $86,000 for the same period in the prior year, and decreased $217,000 to $16,000 for the six month period from $233,000 for the same period in the prior year. The decrease for both the three and six month periods was primarily due a reduction in interest income as a result of lower interest rates available on invested cash balances. For the three month period ended June 30, 2009 there was also cost of approximately $20,000 from the early extinguishment of debt. For the six month period ended June 30, 2009, there was no gain on sale of equipment compared to a gain on the sale of equipment of approximately $56,000 for the same period in the prior year.
The Company had income tax expense of $28,000 and an income tax benefit of $65,000 for the three and six month periods ended June 30, 2009 compared to income tax expense of $205,000 and $354,000 for the three and six month periods ended June 30, 2008, respectively. For the three month period, this is due to income before income taxes of $246,000 for the three month period ended June 30, 2009 compared to income before income taxes of $673,000 in the same period in 2008. For the six month period this is due to income before income taxes of $204,000 in the first six months of 2009 compared to income before income taxes of $1,214,000 for the same period in 2008. Based on the Companys current estimated effective income tax rate for 2009, a 49% income tax provision was applied to net income before income taxes and
The Company had net income of $26,000, or $0.01 per diluted share, and a net loss of $68,000, or ($0.01) per diluted share, for the three and six month periods ended June 30, 2009, compared to net income of $213,000, or $0.04 per diluted share, and $369,000, or $0.07 per diluted share, in the same periods in the prior year, respectively. The decrease for both the three and the six month periods was primarily due to reduced medical services revenue, transaction costs and lower interest income, partially offset by lower costs of revenue, selling and administrative costs and interest expense.
The Company had cash and cash equivalents of $9,861,000 at June 30, 2009 compared to $10,286,000 at December 31, 2008. The Companys cash position decreased by $425,000 due to payments for the purchase of property and equipment of $614,000, principal payments on long term debt and capital leases of $4,332,000, distributions to minority owners of $209,000 and the repurchase of Company stock of $94,000. These decreases were partially offset by net cash from operating activities of $3,824,000 and advances on the Companys line of credit with a bank of $1,000,000.
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