AMS - Earnings call transcript Q1 2018 | American Shared Hospital Services

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Operator

Good afternoon, everyone, and welcome to the First Quarter 2018 Financial Results Conference Call for American Shared Hospital Services. [Operator Instructions] I would now like to turn the call over to Dr. Ernest Bates, Chairman and Chief Executive Officer; Craig Tagawa, Chief Operating and Financial Officer; and Alexis Wallace, Controller of American Shared Hospital Services. Mr. Tagawa, you may begin.

Craig Tagawa

thank XXXX for and Financial and AMS' us Webcast. Hilda, Quarter First Results you, you joining all for Thank Conference Call this provisions company XXXX. constitute Please may statements Act for expectations, remarks of various of forward-looking Private and conference safe Securities purposes on Reform harbor plans the note future the call for that prospects the about under that make we Litigation indicated the for of XX, statement December including company's June by of to on annual Actual discussed definitive these the for report statements from on Form results Shareholders the year may filings proxy XXXX. the result factors, and vary as XX-K be ended Meeting and Annual including held company's XXXX, various XX, the those important Securities Exchange those materially in a the forward-looking with Commission, company The call. conference the no update to assumes in information this contained obligation XXXX a is off to start. strong We this foundation believe income in first net increase the quarter and provide in increase morning revenue XX.X% the the year. X% we a reported for for solid

treatment quarter year's UF therapy by center down was X,XXX our volume fractions proton Health to Center Cancer quarter. X,XXX X for Health first from at last Orlando at First

in term in will technology, in The research first the in the its proton which, as and increase therapeutic to uniquely Orlando Medicare in resulted last we reimbursement is volume in an represents up Gamma that quarter XXXX. increase drove a Gamma treatment expiration this proton increase a sites demonstrated at in studies Lima, higher of therapy business the units compared contributed of earlier significant in We sites turn, of long-term in clinical continue We steady accretive due Knife believe with to and the pace reimbursement in However, Peru flow the benefit that growth of opportunity we a XXXX. be advanced Nebraska AMS discussed And optimistic one Volumes new company's this ramp contract of Knife positioned our month. revenue. increase average these the remain our rate Medicare reimbursement to revenue expect to lost well. average, proton quarter to to our historical where in Lincoln, benefit. increase

hand, On system new Perfexion begin Campus system Gamma other to we Gamma late recently the to is new in supply expected Knife a this Methodist contract Indiana. announced to This treating Knife Merrillville, year. patients Hospitals–Southlake

risk patients. neuralgia the As always, even system available we malformation tumor, that Knife brain make and Gamma AMS' vascular trigeminal sharing are Perfexion will pleased to arrangements more

will I results go call Alexis to the Alexis? to over Now turn Wallace over in financial the detail.

Alexis Wallace

Craig. you, Thank

quarter of attributable of For XX.X% and income the for increased income company $XXX,XXX the X% compared XXXX, XXXX the XXXX share XX, the medical or Net basic first compared or services of per first X to of for to net quarter diluted to attributable first quarter $X.XX increased the per diluted share. basic $X.XX $XXX,XXX months and the to income of services medical XXXX. income rental rental for for $X,XXX,XXX for to March $X,XXX,XXX company ended to

quarter to $X,XXX,XXX increased $X,XXX,XXX company's the quarter Revenue company's Knife the the the revenue to compared in XXXX. increased compared Gamma First XXXX system for revenue operations for $X,XXX,XXX XXXX. for quarter of first quarter Orlando therapy X.X% proton of to the $X,XXX,XXX for of to first of first X.X% for

third XXXX. began Lincoln, in revenue The Lima, August unit operations to of decrease was its sites from units and the of announced, in end Gamma of expiration its As quarter XXXX. X in the due new term second the and contract in Nebraska Knife April a partially one lost we offset AMS previously by XXXX of revenues these sites X from at that Peru

noncontrolling XX, of GAAP net to income at of financial quarter measure, first $X,XXX,XXX per XX, Gamma from this to sites, first in compared first services of Adjusted equivalents gross expired contracts At two $X,XXX,XXX medical $X,XXX,XXX first rental XXXX. December $XX,XXX,XXX included was new a revenue to the first and from quarter non-GAAP compared revenue decreased of XXXX. consistent income Knife $XXX,XXX with March of was system or the share. revenue XXXX, of a for was This compares of statements of equity costs $XX,XXX,XXX increase income the XXXX. refer primarily to of margin compared XXXX XX, XXXX, attributable at XX.X% $X,XXX,XXX equity attributable XXXX. for for December of or revenue Please income whose to the sites interest, X services the or of and outstanding to first of $X.XX net X.X% per the measures. Shareholders' to at Rental cost for with the the March Non-GAAP maintenance attributable the and XXXX. noncontrolling financial XX.X% $X,XXX,XXX financial of company's Orlando. Craig? quarter interest, at pretax for was non-GAAP XXXX, press company's This for Excluding to margin income, XXXX quarter the XXXX gross quarter $X,XXX,XXX EBITDA, the compared $XXX,XXX reconciliation XXXX $X.XX or the to increased quarter for of quarter to of medical XX, initiation of in an pretax release outstanding first cash income, to for reflected cash proton service the non-GAAP shareholders' to share. in

Craig Tagawa

for Hilda, Alexis. first Thank you, are we the question. ready

Operator

We Instructions] a [Operator a question from [Robert who's Bakkie], have private investor.

Unidentified Analyst

business? fine them? question better MEVION. us? Do a important MEVION Or to better. getting have them Is glad about with business? they The the have give us do What right we with give so I getting I'm that that's only patient's our relationship question now. and I me. is you're It's

Craig Tagawa

the their equipment really to be. MEVION that relationship We think of But is clinicians on and with us mix. the in And rely I announced what The they believe nonexclusive. would product product. have we tell recently their we choice

Unidentified Analyst

for year? picking your up this Is backlog

Craig Tagawa

we're bring But fruition. we what in concentrating seems definitely they we're on we we're see now protons of to are Hospitals – that be doing than I further to market, think that about is along serious are have interested those more terms have several that try to or been the protons, the concentrating on more I growing. and in past.

just is can think the systems Orlando – other I some very shown room be have clearly the have proton profitable. of to system room clearly that run single systems properly. therapy the be They single

So that are I think seeing people now.

Ernest Bates

single received They're well. doing are report just from demonstrating room a profitable. We that units of economically their all Yes. MEVION

Unidentified Analyst

That's great news.

it. right? hard more at get You're You working just have to in, help to business

a – room. contacts new a You of lot for have X

Ernest Bates

As at past, units hospitals to least said place we're the we've in room their negotiating facilities. single in with XX

Operator

from Anthony from – investor. who's a comes question private next The Marchese

Unidentified Analyst

Two both they're questions. to each relates related other. to One –

Knife. seeing First, say entrance Gamma you, in your resurgence to written your remarks the you're a prepared and remarks, or in

go hospitals they end or other hospital? one it sake, of wanted forward. So could have relative you maybe you're beam You the it what past your therapy, that to clarify you've mentioned words, say proton Do XX to negotiating. on new all the just And Is in argument's additional means? the Is repeatedly clarify the you second, are capital anticipate to A, to constraints? what forward you the wanted do for need? that. In go the sites. What them that capital?

Craig Tagawa

let statement the Knife. me answer regarding Well, with our question Gamma first the

the terms We done we this are brain papers tumors more What is suburban resurgence treats long-term happens urban technology mainly very further than Merrillville, in therapy how populated you Indiana is a in of general, and multiple prognosis we're some think do well. of look areas. seeing Knife radiation – can in in in our Nebraska clinical recently and metastatic areas. do X radiosurgery that proven And a this areas demonstrated very very push shows put patients, high to maybe quickly, radiosurgery the out whole to many because radiosurgery multiple well it's that and Lincoln, tumors in technology. and smaller contracts in Gamma Clearly, that for I And less technology for metastatic patients. at better have the trying into we've much

in for in a also I financing. type there. mentioned, our for we And seeing of a I America we demand see So as growth think Latin – think we're

I this by into the the are of of what terms funds requires have constraints We the model protons, our the significant facility. – think placing building obviously In put the in to equipment. get hospital to

our partners. We Dr. unfortunately, successful been diligence have that because in coming very will think with a it due still are change, don't We the process, is the good getting Bates? but dollar and very financed amounts significant. with – long up equipment to due

Ernest Bates

do will the the We investment-grade. do for company have they're that new in a hospital with relationship financing if the Chicago

Unidentified Analyst

you're investment-grade that part? hospitals negotiating the And Okay. the most are for with

Ernest Bates

Yes, they are.

Unidentified Analyst

Okay.

time, felt that it I you'll seems be I've that biggest you that long as problem. – though fair seems hospital. think, least potentially like though, it but as Would it that realized So It a a financing past, in have seems the at solves the takes partner is of the part the a statement?

Ernest Bates

before we're And looking discussed looking with more at That better think promising. stronger, equipment a certainly. to financed, equipment hospital, we've get I you and looking certainly the For this – is looking ways that's medical trust.

Operator

The from Capital. next question Tony Polak comes from Aegis

Tony Polak

capacity allowed day us proton to Orlando, patients if that? what doing – you what beam they is how the in there? an per Could idea on you're many And say give are

Craig Tagawa

And – I it's between did been you there last It are there's they and hospital. – do a the they've cases. have – that fluctuates gap more lately, like – they they would be they've I how tell they they probably obviously, think on. – put when patient for done, fall they're mid-XX anywhere many a usually, patients quarter, the and X,XXX I as fractions. pediatric obviously, – would from is after is most about patients. in that patients the large very to they Orlando, the – mix on. put they've like we patients do can to say And you're that a XX on might patients, from as gone guess. XX depends what more mentioned – hovering would But off because And It's and treatments going in facility because my pediatric they new it be again, range to complex

Tony Polak

MEVION Or hospital or Right. beam similar one And that a a is proton has Orlando therapy? you, what what the is away? another there furthest – near near

Craig Tagawa

be The be closest, be currently. proton would in would one will centers – systems and X the But those system. a Jacksonville, us closest there Miami, in the one which to there are probably closest

Ernest Bates

in Florida over XX room. a achieved day treatment has The patients MEVION Ackerman in Center single a

Operator

Mutual Lenny question of Trust from Co. next Mr. The Dunn comes from America.

Lenny Dunn

looking be this it get read some just seems like we are to X And to signed. them with we still improve I It's X that signings? or positive need the proton at statement me close improve so that clearly, earnings. one. discuss assume call, have can on a these earnings end. an decent we things the a time to pleasure quarter's we of maybe next end, And by don't done, to things And if to proton long the conference interminably getting that we could But

Ernest Bates

an signed I to Well, getting Francisco. facility we're with agreement think the close in San

that by get the year. we'll end signed think of the I

Our construction happen, take another in probably I'm will months. will will encouraged this unit But and probably San the Francisco. that first XX

Lenny Dunn

the I that one that least it our get than location. get to be the is I takes because, used time clear. the Florida future Obviously, understand get building then, But because to – But approvals at the just signings see would like course. more built, would probably of done. Of in

X my done – my that we're do time. patients that with the more question you time the from of to Orlando, San So the takes about treated. it the them of But could than the that than or [build] in get we aware getting Francisco? signings from signing just one was the Because more think actual getting length experience of

Ernest Bates

will They're by that up they're hopefully we're the that, facility I foreseeable profitable. very second And its – signing mean, now. XX the doing Well, within the well. Because next for Highly Orlando future. hopeful be months. within in busy room

Lenny Dunn

this impetus it that hospitals around – other you this because works Yes. and would a can it This But edge the is is would and that going give it concrete to plan. how the just them example, show works. why seem, in to works are get a

another bad And a again, glad is you Knife X see business, this of Gamma year? Do Okay. get not to signing. we'll I'm and the signed up another certainly or business think X those

Craig Tagawa

of more the Yes, end on least at do to the we least hope by more sign at put at least X – X year. up or

Lenny Dunn

Okay.

Now this story...

Ernest Bates

America, South South lot Knives in think in in America. for to are there interest we And a seems Lenny, be Gamma opportunities Knives. Gamma There of

Lenny Dunn

Yes.

it Of course, varies.

you're great yes, not which are I'm in. countries have the But, ones to operations safe in. of the sure are be places to ones of Some aware

Ernest Bates

of aware that. We're

Lenny Dunn

Yes.

have selling value for people. half you this The of that making tell, thing keeps that because story show current money, is with of large other we're can expectation – and we're going have you need we a now to book still value you book to We less the more than the up. growth viable price

So be we're a people in not and doing hears. of road so the the near Is of can one tree a possibility in – more a the no show that that there falls future forest this? we little of aware bit

Ernest Bates

be we're to prepared there doing and road people do now can truly shows a that We're this and starting growth more that. are we tell think going company, summer. to I out we go

Lenny Dunn

I the share value. for wake less done, because no that's be Good. we Because to needs up there's should Okay. to than what price, way think be signing book

are Well, on congratulations those questions. And Okay. a my strong again, good, quarter.

Operator

are Tagawa, further Mr. closing there questions. to make you remarks? your like Would no

Craig Tagawa

forward second quarter afternoon. I joining And with we look call later you just our us thank like all to conference everyone of this to on speaking for this summer.

Operator

and sign Thank will for be this www.ashs.com followed This you. today's To to available teleconference. access This XXX the call The concludes webcast replay. www.streetevents.com. dial will replay Thank following enter access immediately conference. by general at of XXX-XXXX call on available you participating. pound system, and the XXXXXXXX, passcode be the the the today's

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American Shared Hospital Services (AMS) 12 May 182018 Q1 Earnings call transcript