American Shared Hospital Services Reports Higher Revenue and Net Income for the First Quarter of 2005.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 higher revenue and net income for the first quarter of 2005 compared to the same period last year. For the three months ended March 31, 2005, revenue increased 5% to $4,449,000 from $4,229,000 for the first quarter of 2004. 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 compared to the prior year period for the 17th consecutive quarter to $836,000 from $817,000 last year. Net income for the first quarter of 2005 increased to $395,000 or $0.08 per diluted share. This compares to net income for the first quarter of 2004 of $370,000 or $0.07 per diluted share. 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 improvement in our first quarter financial performance caps a solid start to the new year. Our 19th Gamma Knife unit, at Baptist Hospital of East Tennessee, opened in this first quarter and our 20th unit, at 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 , treated its first patient yesterday. AMS' 21st Gamma Knife project, at Mercy Health Center in Oklahoma City, is projected to begin operating in mid-2005." Dr. Bates continued, "While AMS has emerged as the clear leader in radiosurgery services, the market is still early in its development and remains substantially untapped. This creates an outstanding opportunity for sustained long-term growth. We have identified a large number of locations throughout the United States that can support Gamma Knife, 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, "), or Image Guided Radiation Therapy ("IGRT IGRT Image Guided Radiation Therapy ") equipment, and currently are in discussions with a number of hospitals regarding the development of new centers. "The new IMRT and IGRT technologies have the potential to dramatically expand our addressable market. In this connection, we are pleased to announce that Mark Quigley has joined AMS as a director of sales. Mark, who previously held sales positions with Stereotaxis stereotaxis /ster·eo·tax·is/ (-tak´sis) 1. stereotactic surgery. 2. thigmotaxis. ster·e·o·tax·is or ster·e·o·tax·y n. 1. , Inc. and Accuray, Inc., will focus on AMS' entry into the IMRT and IGRT market. We also are continuing to explore opportunities for our OR21(R), The Operating Room operating room n. Abbr. OR A room equipped for performing surgical operations. for the 21st Century(R) concept. We previewed a 3D immersive simulation of OR21 at the recent American Association of Neurological Surgeons annual meeting." At March 31, 2005, the Company reported working capital of $4,318,000 cash, cash equivalents and securities of $8,809,000 and 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. of $17,810,000, up from $15,562,000 a year earlier. Earnings Conference Call American Shared has scheduled its conference call for today at 4:00 pm Eastern time (1:00 pm Pacific time). During the call, Company management will discuss the financial results announced today. To participate, please call 877-471-6718 at least 5 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 11563122. The replay will also be available at www.ashs.com and www.companyboardroom.com. 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 and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 17, 2004.
AMERICAN SHARED HOSPITAL SERVICES
Selected Financial Data
(unaudited)
Summary of Operations Data
3 months ended March 31
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2005 2004
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Revenue $4,449,000 $4,229,000
Costs of operations 2,157,000 2,034,000
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Gross margin 2,292,000 2,195,000
Selling & administrative 921,000 766,000
Interest 535,000 612,000
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Operating income 836,000 817,000
Interest & other income 43,000 23,000
Minority interest ($274,000) ($251,000)
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Income before income taxes 605,000 589,000
Income tax expense 210,000 219,000
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Net income $395,000 $370,000
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Earnings per common share:
Basic $0.08 $0.09
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Assuming dilution $0.08 $0.07
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Balance Sheet Data
3/31/2005 3/31/2004
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Cash and cash equivalents $7,842,000 $10,062,000
Restricted cash $50,000 $50,000
Securities $967,000 $0
Current assets $12,442,000 $13,163,000
Total assets $47,841,000 $45,143,000
Current liabilities $8,124,000 $8,087,000
Shareholders' equity $17,810,000 $15,562,000
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