American Shared Hospital Services Announces 4th Quarter 31% Sales Growth and 72% Operating Income Growth; Earnings Call Will Take Place Today at 4:00 p.m. Eastern.Business Editors/Health/Medical Writers SAN FRANCISCO--(BUSINESS WIRE)--Jan. 27, 2004 American Shared Hospital Services (AMEX AMEX See: American Stock Exchange :AMS AMS - Andrew Message System )(PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. :AMS), the leading provider of Gamma Knife Gamma Knife A trademark for a radiologic nonsurgical device used in stereotactic radiosurgery. Gamma knife A surgical tool that focuses beams of radiation at the head, which converge in the brain to form a lesion. (R) radiosurgery radiosurgery /ra·dio·sur·gery/ (-ser´jer-e) surgery in which tissue destruction is performed by means of ionizing radiation rather than by surgical incision. services, announced today financial results for the three months and fiscal year ended December 31, 2003. For the fourth quarter of 2003, the Company's revenue rose 31% to $4,393,000 from $3,342,000 in the same period last year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 72% to $779,000 from $452,000 in the prior year. Net income rose 82% to $343,000 or $0.07 per diluted share from net income of $188,000 or $0.04 per diluted share in the same period last year. For the fiscal year ended December 31, 2003, the Company reported revenue of $16,178,000, a 21% gain from revenue of $13,366,000 in the same period a year ago. Operating income increased 34% to $2,976,000 from $2,217,000 in the prior year. Net income increased to $1,382,000 or $0.27 per diluted share from net income of $1,102,000 or $0.22 per diluted share in the same period a year ago. Treatments for the fourth quarter and fiscal year increased 33% and 22%, respectively, compared to the same periods in 2002. Fourth quarter treatments from Gamma Knife units in operation for more than one year increased 7% and increased 9% for the fiscal year ended December 31, 2003, compared to the same periods in the prior year. Commenting on American Shared Hospital Services' recent results, Craig K. Tagawa, Chief Operating and Financial Officer, said, "Strong 2003 revenue and operating income increases of 21% and 34%, respectively, were fueled by the 9% treatment increase for centers in operation for more than one year and the start of three new Gamma Knife programs. We will continue to focus on same center growth and expansion of our Gamma Knife center base. We currently have under development three additional Gamma Knife programs that are expected to generate revenue in 2004." Ernest A. Bates Bates , Katherine Lee 1859-1929. American educator and writer best known for her poem "America the Beautiful," written in 1893 and revised in 1904 and 1911. , M.D., Chairman and Chief Executive Officer, said, "We reached record Gamma Knife revenue, operating income and pre-tax income milestones in 2003. Additionally, our continued double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth allowed the Company to increase its dividend payout to $0.16 per common share in 2003, a 33% increase over 2002. Total shareholder return, including dividends in 2003 was 50%. We see future growth fueled by new Gamma Knife and Intensity Modulated mod·u·late v. mod·u·lat·ed, mod·u·lat·ing, mod·u·lates v.tr. 1. To adjust or adapt to a certain proportion; regulate or temper. 2. Radiation Therapy projects and are encouraged by the demand for these services. The high capital cost of Gamma Knife and IMRT IMRT Intensity-modulated radiation therapy Radiation oncology A format for delivering high-dose RT to regions–eg, nasopharynx, that are surrounded by radiation-sensitive areas; in IMRT, a broad radiation field is divided into hundreds of small pencil beams, units have made partnering with American Shared a desirable option for hospitals to quickly initiate these services." Earnings Conference Call American Shared has scheduled its conference call for 4:00 p.m. Eastern time (1:00 p.m. Pacific time) today. During the call, Company management will discuss the financial results announced today. To participate, please call 800-447-0521 at least 10 minutes prior to the start of the call. A live on-demand webcast of the call will be provided by CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and posted at www.ashs.com and www.companyboardroom.com. A replay of the call will be available for 30 days by calling 888-843-8996 and enter pass code 8305613. The replay will also be available at www.ashs.com and www.companyboardroom.com. American Shared Hospital Services (www.ashs.com) American Shared Hospital Services is building a profitable medical services company in an under served niche -- turnkey technology solutions for advanced radiosurgical procedures. The Company's core business is supplying hospitals with the Gamma Knife -- a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia Trigeminal Neuralgia Definition Trigeminal neuralgia is a disorder of the trigeminal nerve (the fifth cranial nerve) that causes episodes of sharp, stabbing pain in the cheek, lips, gums, or chin on one side of the face. (facial pain facial pain, n See pain, facial. ). The Gamma Knife, the gold standard in radiosurgery, reduces surgical risk and patient discomfort, resulting in a shorter hospital stay and lower risk of complications. In most cases, Gamma Knife patients resume their normal activities within a few days of treatment, compared to weeks or months for patients who undergo conventional surgery. More than 200,000 patients worldwide have already received this treatment. American Shared Hospital Services is the world leader in providing Gamma Knife radiosurgery services. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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 business and the risks of developing its IMRT and The Operating Room operating room n. Abbr. OR A room equipped for performing surgical operations. for the 21st Century(R) programs. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002, the Company's Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the periods ended March 31, 2003, June 30, 2003 and September 30, 2003 and the definitive Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. for the Annual Meeting of Shareholders held on June 12, 2003.
American Shared Hospital Services
Selected Financial Data
(Unaudited)
Summary of Operations Data
Three months ended Twelve months ended
Dec. 31, Dec. 31,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Revenue $4,393,000 $3,342,000 $16,178,000 $13,366,000
Costs of
operations 2,087,000 1,525,000 7,400,000 5,399,000
------------ ------------ ------------ ------------
Gross profit
margin 2,306,000 1,817,000 8,778,000 7,967,000
Selling &
administrative
expense 888,000 753,000 3,255,000 3,313,000
Interest expense 639,000 612,000 2,547,000 2,437,000
------------ ------------ ------------ ------------
Operating income 779,000 452,000 2,976,000 2,217,000
Minority interest (229,000) (172,000) (928,000) (831,000)
Interest & other
income 22,000 33,000 121,000 171,000
------------ ------------ ------------ ------------
Income before
income taxes 572,000 313,000 2,169,000 1,557,000
Income tax expense 229,000 125,000 787,000 455,000
------------ ------------ ------------ ------------
Net income $343,000 $188,000 $1,382,000 $1,102,000
============ ============ ============ ============
Earnings per
common share:
Basic $0.09 $0.05 $0.36 $0.30
============ ============ ============ ============
Assuming dilution $0.07 $0.04 $0.27 $0.22
============ ============ ============ ============
Balance Sheet Data
12/31/2003 12/31/2002
------------ ------------
Cash $10,312,000 $9,924,000
Restricted cash $50,000 $50,000
Current Assets $13,302,000 $13,421,000
Total Assets $46,304,000 $44,830,000
Current
Liabilities $8,034,000 $6,246,000
Total Liabilities $30,975,000 $30,290,000
Shareholders'
equity $15,329,000 $14,540,000
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