American Shared Hospital Services Announces Second Quarter 12% Operating Income Growth and 16% Net Income Increase.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Earnings Call Will 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 and six months ended June 30, 2004. For the second quarter of 2004, the Company's revenue was $4,114,000 compared to $4,105,000 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 12% to $794,000 from $712,000 the prior year. Net income rose 16% to $389,000 or $0.08 per share (diluted) from net income of $334,000 or $0.07 per share (diluted) in the same period last year. For the six months ended June 30, 2004, the Company reported revenue of $8,343,000, a 7% gain from revenue of $7,774,000 in the same period a year ago. Operating income grew 12% to $1,611,000 from $1,439,000 in the same period last year. Net income increased to $759,000 or $0.15 per share (diluted) from net income of $670,000 or $0.13 per share (diluted) in the same period a year ago. Treatments in second quarter 2004 decreased 9% and treatments from Gamma Knife units in operation more than one year decreased 19% compared to the same period in the prior year. Two reasons treatments were down in the second quarter were the Leksell Gamma Knife Users meeting held in Vienna, Austria, which occurs every two years and only one treatment performed at a center due to staffing issues. Commenting on American Shared Hospital Services' recent results, Craig K. Tagawa, Chief Operating and Financial Officer, said, "Second quarter operating income was driven by strong new Gamma Knife unit performance. Our Gamma Knife unit at Lehigh Valley Hospital Lehigh Valley Hospital is a network of three hospitals in Allentown and Bethlehem, serving as the primary hospital system for the Lehigh Valley, in Pennsylvania, United States. The network consists of three hospitals and six health centers. is expected to commence operation in August 2004. The Company's Gamma Knife contract with Baptist of East Tennessee is scheduled to open in late fourth quarter 2004 or early 2005. The Northern Westchester Hospital Gamma Knife project is pending Certificate of Need approval. Our recently signed Gamma Knife contract with Mercy Health Center in Oklahoma City is anticipated to open in mid 2005." 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, "This quarter represents our 14th consecutive quarter of operating income increase compared to the same period in the prior year. The consistency of our business model allowed us to increase our quarterly dividend by 6% in third quarter 2004. Our stock currently provides a 3.2% dividend yield based on annualization of third quarter's dividend at yesterday's market close. We currently have four additional Gamma Knife units, a 24% increase, scheduled over the next one year period to continue to fuel our growth." 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 800/559-1203 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 9492715. 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 underserved 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 250,000 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, 2003, its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended March 31, 2004 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 17, 2004.
Selected Financial Data
(unaudited)
Summary of Operations Data
Three months ended Six months ended
June 30, June 30,
----------------------- -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Revenue $4,114,000 $4,105,000 $8,343,000 $7,774,000
Cost of operations 1,996,000 1,883,000 4,030,000 3,418,000
----------- ----------- ----------- -----------
Gross margin 2,118,000 2,222,000 4,313,000 4,356,000
Selling &
administrative 762,000 839,000 1,528,000 1,665,000
Interest expense 562,000 671,000 1,174,000 1,252,000
----------- ----------- ----------- -----------
Operating income 794,000 712,000 1,611,000 1,439,000
Interest & other
income 20,000 28,000 43,000 72,000
Minority interest (246,000) (237,000) (497,000) (475,000)
----------- ----------- ----------- -----------
Income before income
taxes 568,000 503,000 1,157,000 1,036,000
Income tax expense 179,000 169,000 398,000 366,000
----------- ----------- ----------- -----------
Net income $389,000 $334,000 $759,000 $670,000
=========== =========== =========== ===========
Earnings per common
share:
Basic $0.10 $0.09 $0.19 $0.18
=========== =========== =========== ===========
Assuming dilution $0.08 $0.07 $0.15 $0.13
=========== =========== =========== ===========
Balance Sheet Data
6/30/2004 6/30/2003
------------ ------------
Cash $9,344,000 $11,032,000
Restricted cash $50,000 $50,000
Current assets $12,520,000 $14,561,000
Total assets $44,399,000 $47,924,000
Current liabilities $8,059,000 $7,334,000
Shareholders' equity $15,899,000 $14,718,000
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