AMS - Earnings call transcript Q4 2019 | American Shared Hospital Services

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Operator

Welcome to the Fourth Quarter and Year-End 2019 Financial Results Conference Call. My name is Daryl and I'll 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 Instruction] Please note that this conference is being recorded.

the to turn Prince. now will call Stephanie over I Stephanie, begin. you may

Stephanie Prince

to and us Daryl, you, everyone thank Thank you joining today.

Litigation note the concerning Before for safe turning to statements. may remarks like plans, on future statements this prospects I management, XXXX. Private remarks conference provisions Reform Please be harbor forward-looking call made the call forward-looking Act make for of over the the the to constitute that Securities purposes that various of under expectations, about would and following Company

March, results forward-looking quarterly may XXXX. three September, the Company’s to assumes the at discussed the update the of XX-Q months and on call. reports as factors, vary definitive held ended shareholders by The in Actual information XX, of with materially from the contained includes those statements, XXXX various of annual Form on proxy indicated those June report the including each in June these filings Company This result annual statements the this well on conference Company's as as Form obligation a SEC. and for no important XX-K meeting

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

Craig Tagawa

a operational today and and results. to Stephanie, through will Alexis review. I good XXXX our Thank financial you, earnings call. business fourth everyone Wallace, for will joining afternoon quarter us our conference year-end walking provide then and begin our Controller, by

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

X.X% X.X%, X,XXX fourth Health increased our quarter. in XXXX proton higher revenue growth, by proton quarter, therapy by X,XXX the quarter fractions system business compared good increasing XX volumes. with X,XXX,XXX driven the in to the proton continued to or therapy to Total fourth quarter-over-quarter to Orlando post the therapy for In

will increase, For therapy the increased expanding continues cancer of important to of were year, of growth Growing proton uses therapy the proton treatment XX%. continued benefits support awareness XX% this clinical the which revenue therapy. fractions up and the and full

was X.X% revenue to XX in of Knife Gamma Peru, XXX the ramping by as up Gamma increase of number quarter. in well Lima, increased procedures year's compared treating continued by in quarter to last January The Merrillville, Knife X,XXX,XXX. fourth The addition to the quarter began in the XXX in fourth facility XXXX. fourth new of site standalone as our by driven the patients procedures Indiana, which in in our increased

two average posted discussions business but hold first XXXX quarter in Knife the Icon in an also previously We've Cobalt-XX reloads MR/LINAC upgrade in for decline as contracted the placements a Gamma and the We of and quarter. parties for to Overall, reimbursement we additional PBRT existing volume, continued during completed disclosed. increase interested fourth customers. with with an

as continues expect the conversations in we deal the realistically, pandemic. COVID-XX these to and slowdown system healthcare a with However, country

business do expect tumors. COVID-XX on the significant is don't predominantly which on cancerous We an impact We the on proton virus. from business, a our with performed therapy patients impact expect

Assuming timely on remain near-term expect to a continue we patients volumes diagnosed steady. be basis, to

COVID-XX. Knife March. Gamma see due maybe sight volumes and considered procedures of XX% to are treatment in delayed We at approximately However, to non-urgent softening in subject some do

at the more hard impact be more during an this to second expect although We quarter of specific it's time.

this selected XX% on certain across oncology methodology. and providers current an payment bundled XXXX, and the based in and the that Services projects quarter the third suppliers. morning or included approximately receive services radiation new noted Medicaid mandatory is that call test model for announced for on this conference As continue to fee-for-service be episodic press our radiation reimbursement structure therapy and model in to will providers approximately radiation XX% our oncology discussed intended as proposed Medicare and release will payment centers CMS randomly July, payment of in

proposed services. The significantly model payment would oncology CMS's radiation alter for methodology payment

for reimbursement XX.X% of Medicare and the the commonly not Gamma proposed Knife. X.X% the for the therapy is approximately XX% the in model, included centers For used most to to codes proton proposed XXXX increase delivery

payment details The continue to and of model timing the remain proposed uncertain.

we potential proposed of As cannot impact a estimate result, adoption the of rule. the

to However, or informed the results. adversely that the for of we and delay current rates information radiation new our reimbursement environment. any expect revenues radiosurgery affect keep therapy received methodology it reimbursement in probably changes although reductions you and in is in financial administration could prudent a We'll

With Alexis the that, a discussion. I'll over call to turn Alexis? now for detailed financial

Alexis Wallace

everyone. Good you, Thank afternoon Craig.

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

Releases can of website our under a the ashs.com earnings copy access Press at tab. investors on the You release

months fourth the the with $X,XXX,XXX, three XX, Fourth to XXXX, system XXXX our of consistent revenue December quarter of of revenue Florida $X,XXX,XXX $X,XXX,XXX. compared proton ended the to in fourth Orlando increased quarter Health of For quarter X.X% in for at for therapy revenue was $X,XXX,XXX. of revenue installed XXXX

for Knife increased fourth $X,XXX,XXX to is the compared quarter sites. due at existing a volumes Company's sites X.X% decline operations at the Company's Revenue retail increased for for of XXXX. fourth reimbursement of the the XXXX, to in to average quarter offset Gamma increase by $X,XXX,XXX The

of XXXX. Knife revenue the of to contracts contracts set quarter margin are for Gamma for quarter quarter compared of equipment a XX.X% decreased the fourth in decrease $X,XXX,XXX customer XXXX. depreciation due $X,XXX,XXX gross and or for or of the XX.X% IGRT location revenues, margin whose expire fourth to at on The to higher of the is Gross to XXXX second of

or fourth This XXXX XXXX net share. of the $X.XX was income per $XXX,XXX the fourth share for per or quarter third of Net quarter per share $X.X $XXX,XXX, and the for to of XXXX. compares $XXX,XXX, of or in $X.XX income quarter

$X,XXX,XXX the compared Adjusted XXXX, XXXX. for quarter EBITDA, a $X,XXX,XXX financial for the of quarter was fourth measure to non-GAAP fourth of

X,XXX,XXX at $X,XXX,XXX, December XX, to cash, On XX sheet compared restricted the balance XXXX, at and cash XXXX. equivalents December cash was

December This was $XX,XXX,XXX outstanding $X,XXX,XXX December at XXXX. $X,XXX,XXX of Shareholders' XX, $X.XX XXXX shares equity compared to shareholders at December XX, compares outstanding equity XXXX at XXXX Issued share. outstanding December $X.XX $XX,XXX,XXX for to XX totaled share. or XX, per or at of and

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

Operator

Instructions] ahead. Dunn. It Go [Operator like looks Lenny

Lenny Dunn

aren't little some no better can elective that Yes. very the give country there's to guidance current early work that, in starts obviously, or hope Certainly, guarantees until the and you find up this that understand environment, but controlled. do else June, to and open everyone for is hospitals going there's mid-May

as that's thoughts are this your is understand the fall. So wave and second opened I question don't get on what I because on ready only but be maybe medical actually to would questions up the your getting opinions But my everything about have would I that hold, have. the anyhow, interested normal for in in

Craig Tagawa

tell combat at come think this diligently cures with to at that point, it's and no short point. it think And with guarantee there's last. early a or of this will over hoping but I this as but it's obviously, we're time, obviously is in vaccines to period up working to to too all fairly the length are some I unknown very this, people

Lenny Dunn

understand it. I

under not where So hermit look have even gets better I a to until control. personal a this I'm viewpoint. see and category my grandkids in like

end, have anything I'm looking the to So don't in an everybody but forward I add. country to is mean, as probably

Craig Tagawa

Thank you, Lenny.

Operator

you up it -- question, question. your have question We sounds queued from [ph], a Tim like Instructions] for Graceburn ask [Operator if

Unidentified Analyst

to Yes. receivable speak remained four XXX%, XXX,XXX. for up you is but I've that Could at balance increasing. doubtful allowance over has noticed past that your accounts steady It's the your by years accounts please?

Dr. Ernie Bates

Alexis, I'll to question. respond let you that

Alexis Wallace

therapy the Yes, and then the much a it’s why related month-to-month accounts that larger because to impacted. receivable it be for on proton of bulk increasing basis our can are is site,

large had so in months we January unit collected on at that of outstanding balances. to other and of sites how a So related quite bit collected, year-end, had we that couple that based many a some

amount you first out quarter. see the therapy a the site. of drop But generally, So, because our higher are coming volumes it's proton should that of in

Operator

Marchese. ahead. question. It’s from Go another have Anthony We

Anthony Marchese

have several I questions.

started I On about confused all, very the when balance, CMS talking Craig, of AMS? changes are nothing changes. were, CMS assuming wasn't to First you I'm when changes, I guess, beneficial you clear

Craig Tagawa

from decrease to don't neutral that the it it’s we at know a of standpoint believe Gamma relation which we look proton guidelines, final. new are under Knife, you these system in the If the per-fraction basis. could a reimbursed in protons indications this for And treated. reimbursement the currently, It that be on on know, are protons, indications based you -- will as cancer’s cancer treated

of So, from a a this for -- of standpoint, course treatment. a treatment could result reimbursement lowering Medicare

Anthony Marchese

point? that you is respect How that Is therapy. I adding at but proton it know, characterize talking assume on hold, would away? new this hold? proton I opportunity potentially you that's about beam, conversations the gone guys have With to beam -- Or on has been

Craig Tagawa

let answer question I’ll Ernie to you, Bates for that Anthony.

Anthony Marchese

Okay.

Dr. Ernest Bates

repeat is you again? Ernie Can Bates. this please Tony, question the

Anthony Marchese

in add several talking last the to are the fact proton sites. conference about potential beam that guys had call the You you

what's COVID, Given conversations at are this on they are in point? hold in Are Or just they your away? opinion happened curious you are going guys I'm this to with at least continuing? at where as those your point?

Dr. Ernest Bates

currently a radiation of I'll and discussion proton is that are just Yes, suspended, to the our therapy say can which but continues Tony. site with, potential or interest proton discussions There centers. partners ultimately among the develop to system the include centers to center we facility. clinical protons single there room adopt be therapy and proton a Sure. continue would new to surrounding development to for one ongoing a their part, have interest there's most

discussions partner hospital So, ongoing continuing we to clinical are and with potential have on that. the

Anthony Marchese

for Or had potential? a to Right. discussed that Has point, the a still second And machine. your also, actually anywhere? gone potential that you one Florida at facility is have

Craig Tagawa

But still this this with the it's what's a been analyzed else, like at and happening everything within at healthcare. it's point. down slowed potential It's

Anthony Marchese

my book $X.XX. share if mean of, close from had just mistaken value concern to a a book $X staff your you stock’s tangible a not I at yes, I'm a and Right, standpoint, a is value,

So, scratching head the I'm disconnect. and understand my why trying

an Act government had guys But other another initiatives plan do is that relating I but of plan the don't to you take you now Do I offering businesses. and number Care a advantage to qualify? to you So the final question expect of do Or anomaly perhaps. to that? it's you federal that just answer -- the

Craig Tagawa

with that, have into will qualify and that We Anthony. be would to honest see, or look we not if to

Anthony Marchese

I offered. Obviously, unless would don't qualify it for would beneficial I that in of in you shoes, the things you would but Okay. some it seems to be -- extremely your me guys. sit think being

as need about So, -- because we’d kind But obviously as I don't you do it obviously, many. of qualify making and shareholder, perhaps I a be you I said to think guys are statements the some do qualify interested if tell in you. public advantages

Craig Tagawa

do would that. we Yes,

Operator

Wait, Instructions] ahead. [Operator got Dunn. another from Lenny we Go

Lenny Dunn

that the understanding interest-free go my SBA, it's worth months. but question, will long bank, a your if your of of lend much you forgive for the X keep end the you X all agreed And so not at as is you the months' employees months, of X they as This Yes. to to loan. payroll

So take I can't advantage of want wouldn't you that. why to imagine

Craig Tagawa

Lenny. you. into Thank We'll that, look certainly

Operator

question we [ph]. from Go And Robert. have another Robert ahead, Bachi

Unidentified Analyst

I shares? series you you haven't that that have you have of the any price group, birthday. the your the of celebrating for anyone that am long that working XXth member I'll would volume hoping on a your Any What increase for interest new on mentioned to catapult new that now? products shareholder sort and product of working be do of my of I'm you're long, years for,

Craig Tagawa

at look some I with we've looking larger tumors. you And… allow sites which some of do to think us what is Icon will if Gamma upgrade upgrade, Knife the our to it, we're announced

Unidentified Analyst

that. I that have seen know I going? And they how are Yes. is

Craig Tagawa

in in Medical Center we completed think just Medical one putting at and at Kettering our site we announced Center. be at we also one Well, Albuquerque September that, I will Lovelace

I will and those are of we're with partner to some looking think that the unit. the first hospitals we MR/LINAC the So, two do have to done,

are So, else Ernie comment, sees. that two looking anything Bates the things I'll And I he think of there's at. let if those that we're

Dr. Ernie Bates

received ViewRay in have mention in device. approval called the are calls, FDA about I looking also marketplace. accelerators at but Elekta modalities both we've on this There, previous FDA-approved think Yes. company integrated talked would and imaging new MRI past that I have relatively that linear have they're the an and we modality a

or referred to as MR/LINACs. And MRLs so, they're

internationally bit this partners, a And were from number this to domestically modality. hitting, different interest of and pandemic potential a prior of quite to we clinical see adopt starting both to

So, that very close sharing we are We're in vendors closely. with about with clinical definitely space discussions continuing to potential both partners. watch opportunities revenue

Unidentified Analyst

these companies? come because that it. you there's keep to be honored those trying items done a And you operate just feel job You've that need to into for a by effect hope I great

Dr. Ernie Bates

Yes, Bob.

various and those there every across X,XXX, are the fact, units X,XXX X,XXX are roughly U.S., year. of approximately or United replaced the States, institutions those a in linear so In accelerators, of

that of higher that And accelerators than issue they so, to LINAC. we've the a cost out with seen this new replace are modality. that linear that, hospitals older have equipment swapping The just looking is to significantly is new

And quite partnering that to from with mitigate a we're that's seeing risk one hospital the where of partners by of reasons American interest capital Shared. bit

we see So, XX-odd just space, opportunity in years as the with Knife did ago, that tremendous when... we Gamma

Unidentified Analyst

was thing guys. Knife great you, Yes, for a Gamma

Dr. Ernie Bates

right. That's

Unidentified Analyst

I it XX,XXX and think real I go so I’d like to like before croak. my ears have to -- up I about some And see are limited, see shares I'd

So and keep growing job. a good doing

the it's this over rough just you. growing keep I over And people. world faith good and from competition still country in you're including have and people honest and in all know here You're a I

So, you. Craig, for answering Thank questions. much, very my thank you

Operator

Instructions] question [Operator We from Tim a Graceburn. have

Unidentified Analyst

you are refinance the trying is can interest to it's I as in reduction interest debt? in a the term overall thank noticed Yes, reduction both? long of the you if rates anything balance the has a on significantly. taking And is you Or provide. you gone expense that reflect combination question. Can for down

Craig Tagawa

Alexis answer for that I'll to let you. question

Alexis Wallace

with it has to us do down Primarily, our balances. Yes. paying

and is going we the So, those as of the down principal going pay is interest portion balances, expense down up. payment the

years, reload little the and of when the rate. a last there's We existing of so or done times a we'll an some debt have and amount lower lease refinancings on that or do, at lot refinance we balance a in couple bit

So, it's a combination.

Operator

have And [Operator Instructions] we no questions time. more this at

Craig Tagawa

let I'll he'd Bates closing and you comments, Dr. if his thank Daryl, make Okay, like.

Dr. Ernie Bates

to for I’d you thank afternoon. Yes. like joining I us say want this all to

the to cancer locations American As pandemic, continue of remains Hospital open business. which meet Services currently part need our the the COVID-XX the represent greatest fights overcome to for patients, Shared the

we positioned of on pandemic, XXXX quarter Goodbye. believe again to beyond call We Looking early Until growth. remain forward look the healthy and May. then, strong for first everyone. you stay well that speaking with conference we the in

Operator

and you This And participating. conference. concludes you thank ladies again, today's for Thank gentlemen.

disconnect. now may You

American Shared Hospital Services (AMS) 2 Apr 202019 Q4 Earnings call transcript