American Shared Hospital Services Fourth Quarter Revenue Increased 19%; Operating Income Increased to a New Record.SAN FRANCISCO -- 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, today announced financial results for the fourth quarter and 2005, highlighted by a 19% increase in fourth quarter revenue and record 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. . Fourth Quarter Results For the three months ended December 31, 2005, revenue increased 19% to $4,650,000 compared to $3,910,000 for the same period last year. Operating income increased for the 20th consecutive quarter to a record $914,000, and pre-tax income increased 9% compared to the prior-year period. Net income for fourth quarter 2005 increased to $479,000, or $0.09 per diluted share. This compares to net income for fourth quarter 2004 of $386,000, or $0.08 per diluted share. The effective tax rate for the fourth quarter 2005 was 30% compared to 38% for the same period in 2004, primarily reflecting adjustments to the estimated state income tax effective rates. At December 31, 2005, AMS reported working capital of $2,423,000, cash, cash equivalents and short-term securities of $5,835,000, and long-term securities of $2,797,000. At December 31, 2004, cash, cash equivalents and short-term securities were $9,078,000 and the Company held no long-term securities. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased to $18,320,000 compared to $17,546,000 at December 31, 2004. 2005 Results For the twelve months ended December 31, 2005, revenue increased 11% to $18,231,000 from $16,389,000 for 2004. Operating income increased 6% to a record $3,471,000 from $3,278,000 for the prior year. Income before income taxes increased 6%, to $2,547,000 from $2,397,000 a year earlier. Net income for 2005 decreased to $1,767,000, or $0.35 per diluted share, from $1,985,000, or $0.39 per diluted share, for 2004, reflecting primarily a reduction in income tax benefit for 2005 compared to 2004. Operations Review "Growth in 2005 was driven by the addition of three new Gamma Knife units to our portfolio during the year, as well as higher same-center treatment volume. Profitability also benefited from our focus on effective cost management at the corporate level and at our 21 Gamma Knife units now in operation," said 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. "As a leader in the market for Gamma Knife units and other advanced therapeutic equipment, AMS has an outstanding long-term growth opportunity. While we were disappointed that we did not enter into any new contracts in 2005, we continue to work through the sales process with several potential new clients and we are confident that contracts will be awarded to AMS soon. We continue to explore opportunities for Gamma Knife units, the latest Intensity Modulated Radiation Therapy (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 Image Guided Radiation Therapy (IGRT IGRT Image Guided Radiation Therapy ) equipment and our proprietary Operating Room operating room n. Abbr. OR A room equipped for performing surgical operations. for the 21st Century concept. We are optimistic about the outlook for 2006," Dr. Bates added. Earnings Conference Call American Shared has scheduled a conference call at 4:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT (1:00 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) today. To participate in the live call, dial 800-471-6718 at least 5 minutes prior to the scheduled start time. A simultaneous WebCast of the call may be accessed through the Company's website, www.ashs.com, or through CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network , www.earnings.com. A replay will be available for 30 days at these same internet addresses, or by calling 888-843-8996, pass code 13832223. About AMS 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 and The Operating Room 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, 2004, its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the periods ended March 31, 2005, June 30, 2005 and September 30, 2005 and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 16, 2005.
AMERICAN SHARED HOSPITAL SERVICES
Selected Financial Data
(unaudited)
Summary of Operations Data
Three months ended Twelve months ended
December 31, December 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenue $4,650,000 $3,910,000 $18,231,000 $16,389,000
Costs of revenue 2,273,000 1,951,000 9,072,000 7,887,000
------------ ------------ ------------ ------------
Gross margin 2,377,000 1,959,000 9,159,000 8,502,000
Selling &
administrative
expense 965,000 618,000 3,613,000 2,963,000
Interest expense 498,000 534,000 2,075,000 2,261,000
------------ ------------ ------------ ------------
Operating income 914,000 807,000 3,471,000 3,278,000
Interest & other
income 73,000 38,000 202,000 102,000
Minority interest
expense (302,000) (219,000) (1,126,000) (983,000)
------------ ------------ ------------ ------------
Income before
income taxes 685,000 626,000 2,547,000 2,397,000
Income tax expense 206,000 240,000 780,000 412,000
------------ ------------ ------------ ------------
Net income $479,000 $386,000 $1,767,000 $1,985,000
============ ============ ============ ============
Earnings per
common share:
Basic $0.10 $0.08 $0.36 $0.46
============ ============ ============ ============
Assuming dilution $0.09 $0.08 $0.35 $0.39
============ ============ ============ ============
Balance Sheet Data
12/31/2005 12/31/2004
------------ ------------
Cash and cash
equivalents $1,298,000 $8,121,000
Securities-current
maturities $4,537,000 $957,000
Current assets $10,709,000 $12,672,000
Securities-long
term $2,797,000 $0
Total assets $48,668,000 $47,106,000
Current
liabilities $8,286,000 $7,955,000
Shareholders'
equity $18,320,000 $17,546,000
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion