AMS - Earnings call transcript Q4 2018 | American Shared Hospital Services

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Operator

Welcome to the Fourth Quarter Earnings Conference Call. My name is Paulette, and I will be your operator for today's call. At this time, all participants are in a listen only mode. Later we will conduct a question-and-answer session [Operator Instructions]. Please note that this conference is being recorded. the to turn Investor Cervantes now Relations. will call Vivian over of I

may You begin.

Vivian Cervantes

Operator. you, Thank

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

Ernie Bates

Tagawa, will Financial Alexis and walk conference fourth our results. call. Wallace, business everyone. our for review. Craig our us provide XXXX you joining operational our earnings Thank and Thank Good afternoon, and through quarter Controller, financial Officer, Operating Chief afternoon, then you, Vivian. will on This year-end

questions. that we call open for your will the Following

in as our our with hard as mentioned provide on center. with California, single utilization We hometown as proton Southern on we our We're Health to are continued call, Health, we're are We these activities. quarter to pleased Orlando And our proton earnings making room third extending and Francisco. therapy at progress gains work well proton during plan report conference business, updates timely San footprint. our units talks UF focused on system Center, of

our to revenue least Gamma next to Knife of Gamma the Knife for With upgrading anticipate Turning opportunities tumors allow turn three in the incremental at that, to business, of we the Craig. units larger XX over our call me treatment now let months. Icon

Craig Tagawa

Bates. Dr. you, afternoon, thank and us. Good Thank for everyone joining you

and significant long-term to continue increased therapeutic business and number up of continues fractions Driving patients use of XX% quarter. positive XXXX. represents are as in remains was pleased trend therapy the its for approximately growth by the the increasing annual of treated with growth benefits XX% the rates. proton rise aided reimbursement favorable proton and profitable to of technology. Orlando a quarter a Therefore, Health this for increasing therapy XXX in to believe proton we growth system treated indications of or the clinical We during the advanced year report proton full growth to Our the us. awareness fourth and Health number opportunity Orlando X,XXX revenue expand

Turning to Knife. Gamma the

we in in in from total our in centers saw procedures improvement and volume sequential measured While two to Nebraska lingering Lincoln, we also some softness from Peru, on trends transition a year-over-year Lima, an a unfavorable and fourth XX% shift quarter annual portion the payer in to attribute the decline of third quarter company's retail in at mix $XXX,XXX approximately sites. the revenues the of

an Gamma a fourth or XXX patients Knife X% by improvement XXX we third comparable On versus X%. quarter we prior volumes at in procedures in in the While procedures more the saw procedure to period first the saw XX Medicare XXXX year. pay still profitable, declined still quarter with quarter. private sequential or basis,

are as certain sites in normalize. clinical turnover optimistic We

to contributions which patients we Indiana, XXXX. look In from began addition, Merrillville, forward treating in January

Finally, three these Gamma our as in units XX centers we Icon next the I'll a months, to turn Alexis larger over allowing to upgrading for financial Dr. call of revenue the anticipate Knife at to mentioned, tumors least for Bates target opportunities. the discussion. incremental detailed

Alexis Wallace

Craig afternoon. and you, good Thank

remarks, XXXX attention your to Before quarter earnings I this year-end release morning. I call begin my results and our fourth prepared like to issued would

cash of XXXX. operations XXXX quarter ended an proton fourth for investment December fourth XXXX. which system Fourth This at XXXX. fourth quarter $X,XXX,XXX $X,XXX,XXX quarter of increased payer is to compares XX.X% XX.X% $X,XXX,XXX the $X,XXX,XXX was quarter XXXX fewer outstanding non-GAAP XX, fourth equivalents or $XXX,XXX $X,XXX,XXX net following the was and maintenance XXXX. to of for to procedures the the $X,XXX,XXX attributable the or of recently or from compared quarter securities equity to of XXXX. enacted of decreased Revenue system reconciliation non-GAAP $X,XXX,XXX months to for XXXX to and increase included For company's the revenue reform over fourth to at $XXX,XXX the per compared the in Cash investment quarter net measure, margin Gross This the of Adjusted securities XXXX to to XXXX an $X,XXX,XXX therapy compared X.X% EBITDA, quarter federal attributable equity to $XXX,XXX the adjusted for the of the questions. company's company This proton shareholders' compared GAAP $X,XXX,XXX revenue benefit of in I'd unfavorable $X.XX of due $XXX,XXX to Orlando for was measures compares the A of in $X.XX retail of tax company for was the of attributable was fourth $X,XXX,XXX benefit an decrease share. and was our of fourth revenue net results. compared XXXX Knife to XXXX equity and fourth revenue cost reflected $X.XX of financial with XXXX initiation of compared primarily non-GAAP costs the of revaluation for XX, of of the Gamma to the to December for to revenue, XXXX. revenues decline XXXX share, revenue decreased of the to $X,XXX,XXX Net liabilities, quarter of the at our XX, Operator, of income the fourth or Orlando at income from in revenues of per sites. XX% $XXX,XXX. tax decline XX, the state fourth income $XX,XXX,XXX for of of net to at net and the quarter the share. at quarter December fourth for of you loss The to gross for provided the financial fourth for fourth like XX, cash Shareholders' legislation margin of the in income This and share. income back service three quarter adjusted of the quarter mix $X,XXX,XXX $X,XXX,XXX write-down company's compares quarter company's at the for per company's or to installed Health. therapy Net for call Non-GAAP quarter for $X.XX XXXX XXXX. a a or the and of per deferred and restricted $X,XXX,XXX. fourth of compared XXXX income $XX,XXX,XXX tax XX.X% quarter federal Florida of December fourth $X,XXX,XXX company's Gamma for full XXXX. income Health of in the and write-down on was the of tax equity December tax turn to XXXX attributable outstanding in Knife quarter

Operator

you. Thank

session We Investors. now And Instructions]. from begin Please ahead. comes Robert Private will question the go question-and-answer our first [Operator [Baki],

Unidentified Analyst

calling Yes, help the our what will as investment in to to obtaining do or I'm with work is us they work with companies? Dr. the two Mevion. I'm wondering, and company. But them, a I'm between get relationship doing well, Bates, private we Mevion reference

Ernie Bates

We're working together.

Operator

question Lenny Mutual ahead. Company. Our go Dunn Trust comes from next the from Please

Lenny Dunn

It's our in it seems some close my quite How there. close we've always new proton understanding of now? not like getting but been to we that front nose are contracts, and

Ernie Bates

getting the two hospital. of answer can very in contract that Lenny. will the But give name to that, We're to Southern next contract close a hopefully, have months. within California. I the we I you can't concluded three

Lenny Dunn

one And that think it it or to started do that getting take or… is get you signed long will

Ernie Bates

name But to get the get tentative a we but Well, the before signed agreement. we the have we documents been hospital… there's already document have to can signed,

Lenny Dunn

document the that get And just you do take or… get that you long it think it’ll or financed signed, to

Ernie Bates

you want do Craig, thinks that? Craig comment it Well, will. to on

Craig Tagawa

of takes -- than would amounts Yes, of little a dollar these these documentation are because types the longer the you transactions, expect.

be as not it will and I be So, over want to think safe promise to we completed. when

Lenny Dunn

this March May? Well, certainly almost the by end the end of so is of

Ernie Bates

was Craig think I but early. seems announce to too we our next hoping we Well, could it would earnings call, that by that's

Lenny Dunn

call For the end of would I it when your wonder would be next earnings June, be…

Craig Tagawa

in May… It'd be the probably

Alexis Wallace

Yes, first of May… I’ll week be the

Lenny Dunn

anything else is there to completion? close And is

Craig Tagawa

we something we good And San obviously are good about feel working diligently complex not on mentioned a transactions. this in about, based release, which very definite. on these I say, as it's we but signed, partnering press you in who But would are feel that with. the we get project Francisco, transaction very Lenny we're until

Ernie Bates

that looking at But that certificate New in of very a also because upstate will looks facility York, promising. need. We're a also require

Lenny Dunn

have signed? could them three you or four next so, So in sometime the months of

Craig Tagawa

these, so little of take to some as a those mentioned, require get. a longer Well, Dr. Bates CON,

say close think on would and our I San working first. to number a priorities but try in one Francisco of I what and So we're Angeles them the Los is

Lenny Dunn

in? doing one somebody with put you for so to competing do in there's hospital chance the completes the second Orlando really else And facility a one think well, before

Craig Tagawa

we We've at and the putting the and had hospital been second volume to about say, would one continue very in do to that. I reimbursement We've Orlando. consistent, talking

mutually pleased very a in before Orlando. second a think I we’re it unit with to So do of it's time and matter we agreed

Lenny Dunn

three Knife Gamma with that anticipated when And having are those upgrades? you you upgrading, do the

Craig Tagawa

the third in Probably targeting. this what of and year quarter we're is fourth

Lenny Dunn

do near-term? the road And any do plan show in type of to you

Ernie Bates

Yes, we have yet. I date don't are. a

Lenny Dunn

with is it of since up value Because half we being $X.XX certainly selling today. approximately stock use book could for exposure, some

additionally, to story new proton having three need do of good them. signings, And to we year it's to likelihood pretty the a Gamma have this investors tell. three what get and we're so with exposed and So, particularly to of Knife upgraded some doing

Ernie Bates

it Yes is.

California. the I think Southern when Sidoti you one also conference down and do in

Lenny Dunn

Sidoti conference? And is Okay. when the

Ernie Bates

in you let it's I'll fall. date, but think exact have know. the the I I don't

Operator

from next Our go ahead. Partners. comes question Tony from Eastwood Please Kamin

Tony Kamin

you your, give about potentially I incremental you of now? guess would Can really some on sites the that upgrade, Icon, you you mentioned magnitude not now. the that when could talk doing those do And get be revenues what lets Icon you say upgrade about? are revenues, you incremental what potentially talking it that it don't that we what

Craig Tagawa

a Icon Well, the with things CT that upgrade. Perfexion. different It to there's two the are has beam attached cone

it's Perfexions the upgrade and not a to are upgradeable our currently forklift at are units all So Perfexion, Icon.

Icons with some at the of procedures. the sites of our non-frame And differences one Icon, So the based of do we're allows going it first. to volume you larger to there's roll -- some out

use mask. could a You

to on are have one provide. fraction, the dose able to doing the by So, them in you necessarily you that treat because not tumors, would larger

you're doses So that kill by with dose cumulative to masked tumor. provide able the equal based basis fractions system, five of a to the treatments to enough having on lower sections five a or large up

are there larger that can we think tumors we do. So

does, do several volumes. MR Icon, allows Icon that clinicians the MR ability for and flexibility use do days advance, terms to planning. The the other The also the physicians now, it thing have with think treatment in that will of and can more the in we that help the a

of no plan they do further just image And of the Currently, match been treatment, would So can that they that’s patient that then completed. -- the frame with at MR would day and put day work co-merge an treatment the treatment. up, do and the accounting a do on treatment. they do if already they the and the on there's CT scan

efficiently. this the to streamlines allows more and it use time So really for their physicians

terms efficient help less So, more being getting additional we as think in may well of us that time. by and their taking volumes of

more far that don't sites to Icon. we're get give the from how to on think data XX% So that we believes appropriate we it XX% take but you can of we those, promise volume. and that those the of both some us will see, at best think volume. want what for going going But be to see more are we're us, out testing are the the get to will Elekta the will hands most we

Tony Kamin

companies macro clinical trials modalities question cost Dr. greatly several becoming proton yet changed towards beam I in sense basis from to is that then a insurance proton. it's a terms ago, the Bates, or basis of it, And that treat. the acceptance this that more it's through thing the get there not on to is really of hostility was landscape on that or favorable and the be going from attitude more proven just years treatment maybe the whether for right just seems and

to hospitals make ask proton to transition in you that. And in And that beams? about more I likely opinion so, then offering making if your will that interested wanted

Ernie Bates

And correct, dramatically, can now greater it's the use is You're utilization. better. been since to cancer because or increased now more so results making same protons, costs we get also have the of there particularly sense drugs

So different you're the to sites correct. do going in were Utilization tumors able We're than we is before. to what able body in treat up. more

Tony Kamin

consider you now this? is think which seriously -- more getting and logical with is pretty do hospitals And offer happening that to more that their has needs that to

Ernie Bates

Yes.

Operator

Anthony Our which Investor. a comes from [Marchese], next question Private is

Unidentified Analyst

guess that pretty light you the at -- the end on factor? is quarter question, of shed first fourth you to the or questions, much quarter. about same quarter question you're any that to feeling with affected one, quarter impact the the you part Can same in the fourth first we're of how factors Two going that affected potentially the same in factors the you the respect business? I

Craig Tagawa

just I not done and with think, consistent practice give as want guidance. a I to that's what be we've always

on that would this I defer at So, point. question

Unidentified Analyst

idea it was anywhere? would question gone Coast machine. my proton East be, Ivy an an whether there a League beam that that was Any considering Second hospital understanding Hospital, was that's

Craig Tagawa

we that were not in that selected Yes, on RFP.

Unidentified Analyst

We went to they it themselves? do or

Craig Tagawa

to confidentiality, a can't speak under it. I'm so really I

Ernie Bates

us. Talking But with back work no it doesn't about were chosen, the we come people that to Yale Harvard, they'll not or that. out told they've get if we do

Operator

this [Operator Bates time. And now to Instructions] showing no we're back closing the at will further Dr. I to back for questions call turn comments.

Ernie Bates

particularly focused trends and have afternoon. at in businesses at proton our for In summary, growth Volume remain we reimbursing Thank focus our joining expanding expectations, operations. our you this footprint. our proton again profitable us therapy outlook Health confident our therapy to and facility on driving on support we're and Orlando continue to

look We activities call include are talk look performance. to you conference to in hometown We Francisco. Gamma quarter in Icon next of to least forward of add California, and plans Knife our on proton earnings three to our XX gains upgrading placed our forward in and updates to We months with anticipate tumors our revenues first Knife's our May. our at expand remain We the in XXXX San we to large in Gamma including providing centers. on to market continue driving units steady focused and the timely speaking to

Operator

gentlemen. Thank you you, ladies you disconnect. This concludes participating conference. now for today's and and may Thank

American Shared Hospital Services (AMS) 28 Mar 192018 Q4 Earnings call transcript