American Shared Hospital Services Announces First Quarter 13% Sales Growth and 32% Operating Income Growth.Business Editors & Health/Medical Writers SAN FRANCISCO--(BW HealthWire)--April 24, 2002 Earnings Call Rescheduled to Take Place At 3:15 pm Eastern Today AMERICAN SHARED HOSPITAL SERVICES (AMEX AMEX See: American Stock Exchange ,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 AMS - Andrew Message System ), 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. 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, 2002. For the first quarter of 2002, the Company's revenue rose 13% to $3,245,000 from $2,860,000 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 32% to $588,000 from $446,000 the prior year. For first quarter 2002, net income amounted to $320,000 or $0.06 per share (diluted) compared to net income of $417,000 or $0.08 per share (diluted) for the year earlier quarter. There was no income tax expense in first quarter 2001 due to net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry forwards. The first quarter 2002 effective tax rate was 25%. The reduction in the first quarter 2002 effective income tax rate from 40% in the prior three quarters was due to a tax benefit recorded for the exercise of options to purchase 100,000 common shares by the Company's chairman and chief executive officer. An income tax benefit was recognized as the result of compensation expense being recognized when the options were granted in 1995. Income tax expense decreased net income $0.02 per share (diluted) for the three month period ended March 31, 2002. Commenting on American Shared Hospital Services' recent results, Craig K. Tagawa, chief operating and financial officer, said, "We are pleased to report strong revenue and operating income growth. Treatments grew 13% for first quarter 2002 compared to 2001 while treatments for centers opened for more than one year grew 2%. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"Our negotiations for Gamma Knife services with a large mid-Atlantic university medical center and medical centers in the south and in the southwest have taken longer than anticipated. Although delayed, we expect to have all signed in the second quarter." 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, "The company continues to perform well with 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" percentage growth in both revenue and operating income. We decided to expand into radiation therapy of the body with Intensity Modulated Radiation Therapy (`IMRT') in first quarter 2002 and have been pleasantly surprised by the high level of interest in our 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, fee-per-use program. We have also been approached by two of the large radiation therapy manufacturers about our IMRT fee-per-use program. The IMRT business model is similar to that of our Gamma Knife services but could serve a potentially larger market. There are approximately 2,000 hospital based and free-standing radiation therapy centers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and few with IMRT capabilities. This could represent a potentially large supplementary business for American Shared." Earnings Conference Call American Shared has rescheduled its conference call to 3:15 pm Eastern time (12:15 pm Pacific time) today. During the call, Company management will discuss the financial results announced today. To participate, please call 800/479-6004 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 5631991. 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 and radiation therapy procedures. The Company's core business is supplying hospitals with the Gamma Knife -- a non-invasive treatment of 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, uses three dimensional computer modeling to target a high dose of radiation at abnormal tissue. More than 160,000 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(SM) 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, 2001 and its 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. to be filed for the Annual Meeting of Shareholders to be 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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2002 2001
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Revenues $ 3,245,000 $ 2,860,000
Costs of operations 1,235,000 1,019,000
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Gross margin 2,010,000 1,841,000
Selling & administrative 798,000 809,000
Interest expense 624,000 586,000
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Operating income 588,000 446,000
Interest & other income 54,000 166,000
Minority interest ($ 217,000) ($ 195,000)
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Income before income taxes 425,000 417,000
Income tax expense 105,000 0
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Net income $ 320,000 $ 417,000
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Earnings per common share:
Basic $ 0.09 $ 0.12
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Assuming dilution $ 0.06 $ 0.08
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Balance Sheet Data
Cash $ 11,041,000 $ 12,214,000
Restricted cash $ 50,000 $ 50,000
Current assets $ 14,533,000 $ 14,888,000
Total assets $ 42,199,000 $ 40,604,000
Current liabilities $ 5,794,000 $ 5,112,000
Shareholders' equity $ 13,638,000 $ 13,464,000
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