American Shared Hospital Services Announces First Quarter 13% Sales Growth and 24% Operating Income Growth.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--April 21, 2003 Earnings Call is Scheduled to Take Place at 4:00 p.m. Eastern Today 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 ended March 31, 2003. For the first quarter of 2003, the Company's revenue rose 13% to $3,669,000 from $3,245,000 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. rose 24% to $727,000 from $588,000 the prior year. For first quarter 2003, net income amounted to $336,000 or $0.07 per share (diluted) compared to net income of $320,000 or $0.06 per share (diluted) for the year earlier quarter. First quarter 2003 net income growth compared to first quarter 2002 was reduced due to a decrease in income tax benefits recorded in first quarter 2003 ($16,000) compared to first quarter 2002 ($65,000). Income tax benefits resulted from the Company's Chairman and Chief Executive Officer's exercise of previously expensed options to purchase common shares. Commenting on American Shared Hospital Services' recent results, Craig K. Tagawa, Chief Operating and Financial Officer, said, "First quarter 2003 revenue and operating income growth, 13% and 24% respectively, were driven by a 20% increase in Gamma Knife treatments. Additionally, treatments for centers open more than one year grew 9% in first quarter 2003 compared to first quarter 2002. Income before income taxes increased 25% to $533,000 while net income increased 5% to $336,000. Our net income growth was reduced due to a higher effective income tax rate in first quarter 2003 compared to first quarter 2002. The Company's March 31, 2003 cash balance increased approximately $1,417,000 to $11,341,000. The cash increase was primarily due to the net reimbursement of progress payments of $966,000 on Gamma Knife projects financed in first quarter 2003 and a decrease in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying of $313,000." 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 strive to continue double digit revenue growth through the addition of new Gamma Knife units. Our Gamma Knife unit at The Johns Hopkins Hospital
Albuquerque (pronounced [ˈæl.bə.kɚ.kiː], Spanish: [al.βu. in third or fourth quarter 2003. This year, we have signed lease agreements with Albuquerque Regional Medical Center and Northern Westchester Hospital in Mt. Kisco, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and are in negotiations with additional hospitals. We expect to have 21 Gamma Knife units in operation by the end of third quarter 2004. The success of our Gamma Knife units confirms the value of the Gamma Knife in treating brain disorders." 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 800/737-1224 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 7092071. 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 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, 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 and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 6, 2002.
AMERICAN SHARED HOSPITAL SERVICES
Selected Financial Data
(unaudited)
Summary of Operations Data
3 months ended March 31
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2003 2002
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Revenue $3,669,000 $3,245,000
Costs of operations 1,535,000 1,235,000
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Gross margin 2,134,000 2,010,000
Selling & administrative 826,000 798,000
Interest expense 581,000 624,000
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Operating income 727,000 588,000
Interest & other income 44,000 54,000
Minority interest ($238,000) ($217,000)
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Income before income taxes 533,000 425,000
Income tax expense 197,000 105,000
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Net income $336,000 $320,000
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Earnings per common share:
Basic $0.09 $0.09
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Assuming dilution $0.07 $0.06
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Balance Sheet Data
Cash $11,341,000 $11,041,000
Restricted cash $50,000 $50,000
Current assets $14,483,000 $14,533,000
Total assets $46,729,000 $42,199,000
Current liabilities $7,110,000 $5,794,000
Shareholders' equity $14,467,000 $13,638,000
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