AMS - Earnings call transcript Q2 2018 | American Shared Hospital Services

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Operator

Good afternoon, everyone, and welcome to the Second Quarter ended June 30, 2018, Financial Results Conference Call for American Shared Hospital Services. [Operator Instructions] I will now turn the call over to Vivian Cervantes with Investor Relations.

Vivian Cervantes

Thank you, operator.

Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. Please note that various remarks that we make on this conference call about future expectations, plans and prospects for the company constitute forward-looking statements for the purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. with materially result indicated including for definitive XX, its proxy Shareholders the Meeting Form of in company's vary on ended statement statements these those quarterly may the months the ended a including held December as the various filings of results from report by those forward-looking discussed company's XX, XX-Q Actual of annual SEC, on for X year the important XXXX. on - the report XX-K XXXX, Form and June the Annual factors, company the this The assumes contained no update obligation information call. to conference in would With I to Dr. turn now that, the call over like to Ernest Bates, Executive Chairman and Chief Officer. Dr. you begin. Bates, may

Ernest Bates

call. And for you, everyone, Vivian. our joining you, second thank earnings on Thank conference us quarter XXXX

follows. Our is this afternoon as agenda

our review. and Controller, revenues Craig will which, Officer, period Total results. Following increased Financial walk and quarter marked AMS. financial remarks, our open nearly of Alexis call begin, through your Wallace, another execution my our After prepared Chief from provide Operating questions. business X%. To operational for the we second the then Tagawa, will will

system with Our proton our XXX% come from earnings metrics a steadily in the ongoing expect to system therapy single growth new this Health increasing UF - improving trends key in as the volume persist, Center-Orlando technology we quarter. posted applications In we and Act, room Tax the Health coming Gamma current prudent record months, online. systems therapeutic Knife to driver at Cancer in expense with growth. continued from Combined Center management proton utilization, benefits of

let now to timely territories to in turn updates. the continuing projects With Craig. also new are over and plan We new call to provide me that, evaluate

Craig Tagawa

everyone. Bates, Dr. Thank and morning, you, good

during increase in of currently X.X% opportunity of which to of We its Total increase benefits our this Orlando continue demonstrating proton with flow and the are a in led pleased expect steady research has therapy in with Combined to new or driver advanced expand sites. X,XXX X.X% therapeutic X.X% decrease Knife continued increase clinical in key report therapy business, for we of revenue, we we is fractions studies increases of In Gamma reimbursement, the proton business, in by a revenue believe of XXXX, continue of proton performance. a us. of an favorable the represents including therapy technology. XX.X% quarter proton use quarter. to was offsetting long-term therapy, to a XXX growth with X.X% growth system, proton around Health another saw our transition significant proposed to up

proton press damage As water evacuation previously our system certain resulting components system. company's water of noted in from our the therapy morning, this facility's release sustained

our in with Our latest information patient is previously commence August treatments this Monday, will issued line time line. XX, that

expected the to impact not long-term service currently to the service This a existing to a performance. repairs anticipate the not that temporary an on insurable do under be any we is interruption system significant our X-day be covered will also after growth period. expect Accordingly, have insurance interruption this and waiting We will of interruption in a impact and financial of program. event

up, to also volumes XXXX. these downtime volumes. two two procedure at Lincoln, Nebraska sites That the to and Lima, accretive due to contract X.X% Total new decrease due at sites down offset continue lost reported opening sites by affected The Gamma or sites two declined to ramp during in reload-related negatively be X the expect to to XXX of with quarter. procedures Turning XX transitions we Peru and our in Cobalt-XX was expirations, Knife. new by sites. previously said,

look forward to third site announced recently in In Merrillville, Indiana. contributions addition, we our from

detailed a return begin the in Alexis to financial discussion. patients expect I'll XXXX. late over treating We for call to

Alexis Wallace

Thank you, Craig.

for the months X to services June of rental from $X,XXX,XXX XX, ended from attributable income $X,XXX,XXX $X.XX share. for company to Net to net of to of to for compares increased second quarter per medical or was rental second share. XXXX of the per compared XXXX, company of or attributable income the services For second $XXX,XXX XXXX This the the medical quarter the X.X% XXXX. quarter income $X.XX income $XXX,XXX

Rental compared gross at Gamma Health. for to second $X,XXX,XXX quarter therapy revenue for to for attributable second gross the Non-GAAP income or services of of of Second an to quarter quarter net XX.X% rental second of system $X,XXX,XXX revenue of our to Revenue the the Shareholders' cash December second pretax revenue to results. compared at our June to XXXX revenue with quarter XXXX the non-GAAP interest, our equivalents Operator? the attributable in this per net of XXXX, share. $X,XXX,XXX decreased was the to compared income, equity to XXXX, December second of from compared $X,XXX,XXX A is interests, $X,XXX,XXX quarter the XX, the services of the XXXX. cost medical $X,XXX,XXX service of XXXX. provided XXXX quarter reflected to measure, income increased second or for non-controlling increase income, income of of for GAAP income transition. proton to second in of XXXX. XXXX from for for quarter to Knife for X.X% XX.X% press financial measures attributable installed margin $XXX,XXX This for XX.X% of was per outstanding This compares financial equity system of non-GAAP on Adjusted margin shareholders' the $X,XXX,XXX outstanding release medical non-GAAP operations Orlando XXXX, for revenue XX, $X,XXX,XXX second XX, to initiation non-controlling to company's decreased compared of $XXX,XXX. XXXX Health proton This primarily of from at the $XXX,XXX primarily second or maintenance XXXX. site of morning Orlando costs due and from the at pretax XXXX for second $XX,XXX,XXX $XX,XXX,XXX quarter for the $X.XX was $X,XXX,XXX XX, to of quarter at XXXX. reconciliation of or June was a EBITDA, quarter of $X.XX share. compares quarter Cash and

Operator

Instructions] Anthony Thank And you. we ahead. have go Marchese. [Operator Please

Unidentified Analyst

Hi, guys.

quarter. great Another

So has machines tell Question service. is you of out about more any thus far therapy for us worked you potential Orlando the Obviously, future well. into can beam getting for any proton congratulations. extremely plans future sites? What

Craig Tagawa

we've this starting could at best options couple We're I A what currently a think at sites, looking be a sites. with looking of might several couple be at hospitals. them freestanding and couple our been and partnership we're of in point. are at negotiations

Unidentified Analyst

I last time, Bates have a with that terms take said issue, financing estate lender an this. that all established a hospitals in you Dr. would real had the at some know financing problem Is or relationship of lender away

So is point, new at financing proton the beam this guys? an you therapy's with issue

Ernest Bates

an a major will issue, it but be always issue. it's not Well,

that we the in unit. financing San looking we now think that hopefully think do will near up sites two with signed one I be we're Francisco. right in have that for we'll able the get that And at future, in to

want look an that, appropriate In to the fact, that be to architectural hired we in put track make that at firm, site that for there. have will we sure machine to just NBBJ,

reasonably Southern – and site are we We a California, in sites financed. looking we're two at that those can confident also machines get

Unidentified Analyst

comment. it's question. It's my just - a really final a not And Okay.

million rate a in the trades Stock million a $XX $X.X generated EBITDA, so you're million on run for year. $XX market You at cap.

much All pretty debt have recourse. is minimal You debt. your

published here? point? at continue So done? are seeing? mind, guess, What that EBITDA. I'm outreach I Am trying missing this market I is to not I be to to more investors, guys it something plan by doing out, low baffled that do what figure you the it in on can relative is your investor cap be

Ernest Bates

we doing are Anthony, that. Well,

be in New we'll conference in going be conference in to going December. Los will We another September, the York and in Angeles to Sidoti

of more been with firm, that now that helpful So Relations very we're who've our Investor new regard. in doing

I And happen waiting confident think purchase now, looking MEVION time, machine of a I some is think are not having that's hospitals are But system. this developed is pencil with problem a for we a we people HYPERSCAN beam for. that that a that's what what particularly for. and or are going to the have announced

Unidentified Analyst

it. get I

machine, should a In under congratulations to would Yes. and good again, X of luck appealing flow machines having those any Okay. something still be trading times that getting cash actual on I argue new contract. new not people. an case, spite But in into

Ernest Bates

you. Thank

Operator

we Partners, have Kamin. Eastwood From go ahead. Tony Please

Tony Kamin

Hello. to looked It me…

Ernest Bates

Hello, Tony.

Tony Kamin

on to cash me an to the to as starting build the well sheet quarter. value. looked as your see It Hi. balance It's excellent book nice like again

Orlando you're case Marchese got the wider on real sounds - near-term make a beam? terms wanted So my you vantage helping you is slightly some the the different to of ask to that a it for possibilities. from in comment beam. I in you've questions like the hospitals? proton preempted interesting more of performance point, And Tony But How can pipeline proton showing to couple

Craig Tagawa

All right.

what think you're being room a max or two concept by single and more adopted is room rooms. X seeing I is the hospitals, either more

time cost is very the the effective. that it how people They be they out have when the the I I only worked has at failed, think and to some that Bates been X that X out. centers to not The over rest to have we're think the publicly clinically upon just Dr. what beginning, hearsay look work administrators only is of they've we're pretty come And traded doing. I and as and two gaining rates are really that's pass. point, over most because this system did increases room Knife and judge much on really that and the But the from seeing the systems company. to traction, think, Gamma room the incidence time. protons as single single they're for really, can at our like it's much rooms, And really promulgated

Ernest Bates

centers by end with probably treating will States, United think in be we'll I XXXX, MEVION HYPERSCAN. the X the have three of

Tony Kamin

experience. speaks execution think Well, the on to Orlando your of do accumulated that again, would building Knife and what experience, company's could Gamma identification your I

would you're make So more the talking to institutions comfortable. I would hope that

pipeline could question, Knife you or a of in for future Second terms talk if Gamma just Knifes. Gamma little potential

Craig Tagawa

is some there they'd like we're additional at get we a of on units this And financing, heard alternative to And they've calls like in we've something mentioned, an putting existing and this part be NRC want model, more We're we that calls more would terms year. to going getting for from installed. us one to As business Cobalt Merrillville, our a And that that, do to with be upgrade point. Indiana expensive. some might And been considering. find getting pursuing we've where way They they just and clearance of are about do we're latter to the reload, of couple and ICON going been which in systems. we're get that to pretty the waiting that.

fairly pleased And so looks with the pipeline of you. increasing the to I think pipeline. it with I'm in good honest terms be

Tony Kamin

from Final Great. question me.

in you regard? you you're you for Or were the hope about you in terms out. might that Dr. what of that Bates what -- research talk looking Just or Craig, of mentioned, coming studies a studies Can little anticipating? be the sort

Ernest Bates

Well, photons. papers with shortly. believe And showing we I we is protons And of think protons to to a survival photons. effectiveness going start new is think we out of do biological better rates we're the these that study we'll seeing that with that see be coming than superior seeing

Craig Tagawa

heart think at one on the we're are and breast rather, by the looking left using looking things centers that at, toxicity radiation is I less the protons. the to And other of --

more seeing start we'll using that. to for effectiveness protons think I as of studies the So

more So S. as think look more online proton and we you get we're the would at and centers if I encouraged U. -- that that

X or already Report, of or the either of protons. XX centers process cancer protons getting in World top & have listed, News the X

direction and is States, says the adopting I really the a most them in think top see are the where that cancer for the are of people going. Those protons. lot centers about -- protons United

So aspects I be good research well. will that as for think the

Ernest Bates

the understanding that a to our is it's willing all possibly And room to MEVION to upgrade single possible -- one that HYPERSCAN. systems are

Tony Kamin

you congratulations give hope because such It's And stuff, spurs in important shame and that research more quarter. some Wall yet. not Street Street to Wall is exciting a that I you. coverage research really noticed I really a think getting great on it's potentially But, maybe work thank

Ernest Bates

Thank you.

Operator

Trust, Lenny ahead. From Mutual go Dunn. we have Please

Lenny Dunn

is, what and steady in to proton We're the centers making you progress, earnings. market that good as glad to the afternoon. address States And of you market I'm in compared could Hi, see United just the number think what's installed? overall the steady

Craig Tagawa

believe some XX% look papers I market terms between it's think think of We're of that circulated, between number XXX currently. would rooms, it maybe when based probably you XXX that on be. been at at and -- conservatively, about and we eventually have I of the in the rooms conservatively

a see like become think I increase. So be indications long to we that as way just go. proven number more And have radiosurgery, to beneficial, you'll

Lenny Dunn

here. There year by growth rather large very get actually only the could size be in And is a your would you going opportunity the a the that than constraints of given number market.

Ernest Bates

are approximately protons And of it's that will in America. designated feeling to to treatment eventually There all centers have provide cancer Yes. these community. total care the in XX cancer have our

Lenny Dunn

Okay. very a you that roadshow. And fact going encouraged do then I'm by the to were

I something going particularly going in area, are December? San then the in a good December, you in is think you're to Sidoti the where and conference fit, Francisco or which

Craig Tagawa

I think Angeles. it's Los

Ernest Bates

Angeles. Los

Lenny Dunn

Los Angeles. I apologize.

that's very front so that out we very just aware you good get think people. good a institutions in some of different start. the you'll has And that So what getting you're is have need exist Sidoti there. think the reputation, But a I coasts I that that

I where now. obscurity, stock moved be would that have hopefully, where is. think you ends But the into it trading

you forward beam to you've another shortly. an going look thank indicated hearing And finally, on again something center see work we Thank we're the you that And shortly. for hard very to put certainly So you much. in. proton announcement

Ernest Bates

you. Thank

Operator

Edwards, have Please ahead. Chuck From we Benjamin go Blatz.

Chuck Blatz

how Bates are you and Dr. Craig, doing? Hi,

Craig Tagawa

Good.

Chuck Blatz

a were light associates. Berkman did they, of And noticed there, that the enter replacing that Advisory take Is this I partnership are Neil this with years, In PCG of that correct? now changes you and it after Group. that made I number

Ernest Bates

That's correct.

Chuck Blatz

Okay.

or coming cetera. there's So I've shares board seen weeks, since that the they've lot so, been in, over awful last month far, of exposure a an on volume few been et and in

you you give color And little to people, to institutions other do? group you little flavor it getting this a can was the and are how these other of never on do, think showing cetera? could the in et connected So to they people group front able maybe exactly that what didn't what able us give do, to been you Just a you. have help of

Ernest Bates

Well, We're we're to September, go helping us to conference, going in investors for that in to been guidance. going be to going which that when the website, that. very the need to about be with really potential York, do things think going to we're take in before, so We we didn't and to us Sidoti We're that doing meet they're New around we doing that. in improvement with helpful are going there, preparing that's our be do podcasts. good. excited we also Northeast their They're under

Chuck Blatz

of to the visibility with advisory, launch ran that previous they maybe or it, or lackluster good because you sort where get point change under praise out weren't call you going sorely things that to major of you also are a think that's at this make this. to, and need client exposure I let's a can about I time it Well, get - base in ready that

I a thing great you've is think done. this

Ernest Bates

you. Thank

Chuck Blatz

like and too. up So, see keep good it I’d Nice luck. quarter

Operator

time. further closing We'll to No Dr. remarks. for back turn this at it now questions Bates

Ernest Bates

performance. forward to to businesses Gamma well single Thank To increasing this you from volumes solution, communities. as positioned us we clinical look Knife, revenue well as steady earnings traction procedure for briefly joining our gain afternoon. we in and in our are with well proton summarize, are where and patient gains therapy, room the With positioned

we we our opportunistic with in again our updates We execute call our look enable third November. joining continue us, best to as to programs. speaking quarter forward timely We in technologies. Thank also line to conference remain you provide sites therapeutic you for and on with plan to the new to access goal we evaluate as

Operator

gentlemen, Ladies for this conference. today's you Thank and joining. concludes

disconnect. may You now

American Shared Hospital Services (AMS) 12 Aug 182018 Q2 Earnings call transcript