AMS - Earnings call transcript Q2 2019 | American Shared Hospital Services

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Operator

Good afternoon, everyone, and welcome to the second quarter June 30, 2019, 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. the remarks future may for Securities expectations, constitute statements various conference on the Litigation that harbor forward-looking about safe XXXX. call plans for Reform note Act that the make we this company provisions of Please under of Private purposes and prospects for XX, on the report March those its the Form vary filings Form those XX, definitive forward-looking Annual XXXX, discussed on the XX-Q and by company's statements June company's important ended on as Actual results the indicated proxy XXXX. various including may XXXX, ended a the months factors, including SEC, with annual materially from Meeting year these December result held quarterly of statement for for report the of XX-K XX, Shareholders the in X update The call. this assumes obligation company no information contained in conference the to

turn now Chief Officer. and Financial like would Craig to I Tagawa, to call Operating the over

Craig Tagawa

all Thank joining to you, conference who and Wallace, review. our XXXX will quarter our call. Vivian. then today, business you earnings I are will results. our walk provide us Good for our Alexis operational second financial through joining afternoon of and you controller, thank

Bates, open questions. Dr. Ernie that, myself for Wallace, will Following and the Bates Alexis your call

X,XXX increased proton system to proton X% reimbursement, for in during Health to with time the proton X revenues Our therapy this of XXX post Combined quarter. increases off X% continues quarter, in Orlando reporting relatively fractions, up therapy steady business growth with or which days maintenance. was the stable despite

this actively we development benefits awareness across We our therapies, Therefore, business. proton in advance to note therapeutic continue to pipeline engaged remain gains on indications.

no or site treating one performed to dispute to XXXX. at The treatments in the XX XXX patients procedures by the second quarter in Knife. a Gamma quarter, ago X% question Owing year period. again site the the July to in were versus comparable Turning declined during labor where began

payer higher which pressure sites. from our saw retail also mix a impacted patients, of We some Medicare

reimbursement procedure at up We with volumes from Excluding look with sites. Knife and benefit settled we and normalized were Gamma these remain interruption site, certain the increased quarter-over-quarter. clinical to one adjustment business Medicare turnover optimistic Gamma as about going forward forward Knife to onetime the revenues a in contractual X.X%

continue larger in of the progress the also Gamma We to with allowing of X upgrade months, tumors least make revenue -- incremental to X to for units opportunities. to at X target Icon next us X Knife our

Ohio of expect to continue of in XXXX. upgrade third the Icon Center completion We quarter Kettering in our Medical at

for I call turn discussion. to will the over Alexis now a detailed financial

Alexis Wallace

Thank you, Good Craig. afternoon.

second remarks, issued Before I to XXXX call this your our results attention begin my morning. prepared quarter to like I'd earnings

XXXX, June of the $X,XXX,XXX For XX, quarter increased revenues X.X% the X second revenues months to for of compared $X,XXX,XXX to ended XXXX.

therapy initial revenue to quarter proton second compared for $X,XXX,XXX Second Florida to company's Orlando quarter at system revenue the XXXX of installed Health of X.X% $X,XXX,XXX. in the increased for

for second contractual compared at company's Gamma site. of for the adjusting quarter of to increased Knife to second $X,XXX,XXX Revenue Medicare quarter the for for $X,XXX,XXX the XXXX XXXX, X.X% operations reimbursement one

increase of of primarily in for $X,XXX,XXX of gross $X,XXX,XXX revenue compared revenue administrative second of costs to volume for depreciation and million. of Medicare lower or XXXX. This margin XXXX declined expiration reflected to the decreased pressure some sites X and or expense reimbursement an revenue quarter second Excluding XXXX at $X.X labor retail from XX% XX.X% quarter XXXX. the XX.X% revenue this January and contracts attributable The Gross disruption disputes, also customer adjustment, of business and the to increased was to from costs. April in to our due decline of margin

quarter compares quarter $XXX,XXX measure, to of to of the the per for This share. second the quarter second $X,XXX,XXX and at was $X.XX cash of share. per quarter XXXX at was $X,XXX,XXX compared for $X.XX income XXXX. share. XXXX June XXXX XX, $X,XXX,XXX $XX,XXX XX, compares non-GAAP share. or XXXX, Adjusted Shareholders' to This December a was second shareholders' equity second equity EBITDA, of of for cash, compared or per financial or income $XX,XXX,XXX was XXXX. $X.X to for restricted Net net per December XXXX, $X,XXX,XXX cash XX, June $XX,XXX,XXX equivalents XX, At XXXX, outstanding at or outstanding $X.XX of the

like of turn for part you call we'd questions. the This over presentation. our concludes to back to the formal James,

Operator

Instructions]. [Operator

question first Our from Private Investor. Robert comes a Bacci [ph],

Unidentified Analyst

still a know to it's but I'd somebody a new if as knowing Chinese company, interested far growth. have has here we for investment the there's private it? if like doing it's as there's the the major as it's I like equipment. contracts with company? And know doing. any how our MEVION. an do, information I'm And to American Do how possibilities we the it any to I'd Yes. If in is in -- very or company know

Craig Tagawa

I a could you that is MEVION. we what no have Well, in longer tell investment

to Barnes-Jewish the the ago think Chinese I is majority-owned, recently investment units. probably Chinese several so wholly due think are it companies. announced was They Hospital. investment that merger. in companies just owned at second I both in that by MEVION, putting have And announced And they they to sell quarters bought unit if interest continue not

So can they've website you their some and activity recently. you had see of the look at that can

to and deal as we a to it's their we're transaction [indiscernible] that position, private not that they're them. privy company with As financial

Unidentified Analyst

All about new Any business equipment? or for right. How major us? contracts

Craig Tagawa

to but hopefully, hospitals to announce that be end. able not for And have units, we agreements not-too-distant something to future. in the with We we'll signed any that any continue work towards definitive proton

Ernest Bates

is This Dr. Bates. Yes.

America, machines. in and are negotiating to be one hospitals these down the machines, X in Long put Beach with We other will Francisco, MEVION in in proton and San

Unidentified Analyst

doing Good. All At MEVION. I'm business going you're least glad right. on. with that's still

Operator

from next Lenny Trust. Mutual question Our Dunn of

Leonard Dunn

of that the by California least just getting out It Is it's but concluded have there over done? there. not not like at always installation seems cusp Again, disappointed Southern now. am the horizon I the on that we still

Craig Tagawa

into can to. arrangement enter some done There's party have Yes. talking the we an that things we're before with get that to

some things control two-pronged concluded expect completed there's outside And first to we a completed transaction. hasn't shortly. need So yet, our the although be that first, been it to essentially, so step be of

Leonard Dunn

it Yes. Or Because next-year we year? were that one, for be one. almost story? you waiting will you Francisco all of think the that San end done The a think year before the do that could do get

Ernest Bates

hoping one Beach one. Long done of Yes, done expecting before both the year. will to get We're we're end in the first that the these of the be

Leonard Dunn

month so we see months, X Long in can Francisco? another So another X Beach, can we and potentially or is it San or see

Craig Tagawa

we're than take little company. going might the It longer we think to a to move as because documentation fast as they're both for we done, get but can all good the that transactions

Leonard Dunn

long. move as taking it's but terribly as fast obviously, can, certainly you Well, Okay.

explain other problem, that The is is procedures, necessary with but that would could type as just your -- the problem. sooner, hospital does seems that control think have little better. a for the wouldn't thing I And could It maybe guess that. this patients like labor it with that you sold beyond you of have waiting labor but been that you

Craig Tagawa

staff. contract our the of it outside said, with don't We was clinical control. you As

team. the reached getting So people additional term, the it for an I contract. there do. We on everybody the XX-year they it's clinical same with to can trained. the was best tried think But arrangement And a nothing It we thing to by was long ultimately, page. expedite have

again. think amicably, we're now and it got settled busy quite I So

over it's that with. pleased we're So

Leonard Dunn

hurt then also, thing we Clearly Knife we last take badly Okay. answer number over to Gamma if get more you seems had if larger if be in wouldn't hurt any as And the one one because X couple it we another out base, of down that and comes of you've type Gamma Knifes or unit got being had -- the as we've much. Are with place, situation there? a like more years. Gamma installed is working up Knifes that a of clear doesn't

Craig Tagawa

approach still by would at up States if portfolio. the the for portfolio due pursuing to them, underperforming always you or made the time Yes. down both We're looked they And of that, X have internationally. of being a and United that in be enough that issues, we've period

With it Cobalt-XX. have the does Gamma Knife,

to from to -- anywhere do to usually where weeks at reload, a it's if the take X a it X we'll X the takes X we reload time, be So upgrades do down. Icon And same weeks.

reloads So the these we're interruptions as X Icon X to do and we upgrades. to going in months next have

Leonard Dunn

cause is they have problem. one any them Again, doesn't that type the more so out there answer of of

own it is disparity a getting I price, huge other contracts the the is not we not is But think book lot value The our not a but a quite, have is And I twice minimum year, that have little, there. some almost And these including large-enough disparity. to there's do there's of microcap share these part a getting see problem you I'm the a probably a yourself so would the audience. it there. get out but more exposure don't do a you to are of you things -- do enough X of maybe lot patient, is me, being to people the institutions out exaggerating fact this of is that keep in due even a microcap stock, that promised. X, road very to we love and of thing shows

to buy in to you stable a many You base. give don't too need more

things get can this So exposed?

Craig Tagawa

September, at [indiscernible]. we as Yes, the Sidoti will conference well we'll presenting some look and others be at with in

Leonard Dunn

get you to have prior every at a what plan mean, in going you're or X than you know watching I year, a you if so X to let got know mentioned it, doing you. be But that to -- people that try call to there you're could in out have you people Sidoti September. you and least few I more have in that

a aggressive forward. I hope little be you can about going presenting So more

Craig Tagawa

Point taken, well Lenny. Okay.

Operator

we Bates further call questions, turning the There are Dr. for are to now remarks. so concluding back no

Ernest Bates

speaking continues we Medical with Thank with us with quarter three Icon look again. growth, remain are our driven X the forward optimistic to allowing large it Gamma upgrades is the this We XXXX tumors. we the you upgrade on you traction, Health. first, relatively capture months. to gaining to X third new centers needs us success In revenue Thank and again in approach in Kettering conference afternoon. next business our in post operation In to Knife, November. Orlando summary, in improvement you X but to of replicate joining to planned incremental in call for opportunities

American Shared Hospital Services (AMS) 13 Aug 192019 Q2 Earnings call transcript