AMS - Earnings call 3 2020 | American Shared Hospital Services

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Operator

Good afternoon, and welcome to the American Shared Hospital Services Third Quarter 2020 Earnings Conference Call. My name is Brandon, and I'll be your operator for today. [Operator Instructions] Please note that this conference is being recorded. And I will now turn it over to Stephanie Prince, PCG Advisory. And Stephanie, you may begin.

Stephanie Prince

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

periods statements note result management, company's ended the the concerning like Please as SEC. forward K about indicated that XXXX. future report important call constitute on materially conference Q looking looking turning meeting on under March with XX, I be in forward various made XX, statement may December over statements. Litigation XX Securities and June XX, definitive expectations, the includes the XX remarks the held Before call and annual for for a for the these following Form year annual factors, to discussed was The XXXX, including the would this remarks the June to looking plans, for that those results purposes This filings vary the on by various of XXXX, may that actual prospects XX, those and company's the forward proxy XXXX. of shareholders the ended from Private of Reform company statements the Form safe provisions of Act XXXX, harbor make for

to obligation The company contained to conference in this I the assumes no would the over update of to Ray? CEO AMS. information call call. turn like now Ray Stachowiak,

Raymond Stachowiak

then results. conference financial our begin Thanks CFO business afternoon, Accounting I'll Tagawa, everyone. review. Alexis operational third us earnings and President, Craig today XXXX a joining will and Chief COO through Good will for Stephanie. you, Thank Wallace, the Officer, some call. our opening then and provide our quarter go with remarks, for

development we'll Bates, Craig, and Alexis Vice International for and open Operations, Following and Senior your Sales our questions. call that, myself, Ernie President, the Business

deepest this more Board time, quarter. revenues of in as well a significantly detail will back the of discuss few you minutes. team a COVID of experienced believe that corporate volumes we I our the in be are was during Craig same know, the third pandemic the the responsibilities. from appointed second to low In managers, days At September, quarter, the in the the In bounced that and XX place. AMS. got positions in promotions I of reflective CEO more deserved by great we've their that many received of all pleased

goal profitability. We not our can this reach Together, can advanced First, in model ways: Knife, Gamma proton our include also and offerings, expand LINACs to sustained our MR Guided and diversifying beams by three do to but product more is business we only LINACs.

expand this Second, Gamma we recently the great the only Knife of geographically. in the completed country can of center A acquisition of Ecuador. example is

continue services patients to solutions. in in and provide we retail to the services equipment in diversify States. operations and Peru the provide our by can directly can wholesale we our different we do Third, provide United manner or as We in ways Ecuador, as can a we

the many turn now can the a review. tremendous with realize ways the can quarter call needs. team the and that Craig? future different has believe I'm many to looking and over for Craig that. I provide our working opportunities their flexibility together operational forward for growth, we to I'll meet to marketplace to we with clients AMS third

Craig K. Tagawa

afternoon, everyone. and you, Ray, good Thank

XXXX. back also Year year, up and significantly. revenue from the XX% in Total the quarter pre over of pandemic total mentioned, quarter X% revenue revenue quarter, last sequentially second was XX.X% our from year. the in third ahead declined first total of the Ray As quarter third bounced volumes

contractual XXXX. second company's decrease increased average was in XX.X% sites adjustment to at by quarter. year year's one year third any Medicare company's to compared at related revenue also the of recognized the quarter to lower due reimbursement the Knife positive prior X.X% of year Gamma over The but the declined reimbursement over year retail and sites

by Gamma the year year. to quarter of of for period compared prior X.X% for of during and XXX the from increased for Knife XXXX. decreased, X.X% and procedures for revenues same Knife same the to the third volumes XXX XXX those increased volumes of quarter prior same reagents in XXXX the Gamma Knife's second centers operations from period the Gamma centers

Total increased proton therapy compared Proton third the quarter of quarter XX.X% second and consistent compared to second in to XX.X% and of of XXXX third third the the quarter compared the XXXX. of XX.X% increased increased the therapy was quarter with fractions quarter XXXX to XXXX.

and the fees gross caused third The Knife second decrease net the decreased third transaction professional Net quarter in of the net totaled quarter which compared and due to was in the rate prior XXXX. from from loss to and and the the of for in revenue average revenues, income of decrease XX.X% in Ecuador, at for costs reimbursement XXXX. the center of XX.X% June of margin $XX,XXX. was quarter margin quarter XX.X% for in decreased for Gamma revenue of of of the of company's decrease legal a XXXX and retail Gamma second $XXX,XXX the a to Gross sites loss QX of third third by to acquisition revenue net other the for Knife's XXXX the primarily year income to compared of compared the quarter the quarter $XXX,XXX $XXX,XXX

quarter strong $X.X million. cash We position of a ended the with

of the to upgrade During the completed Medical at Perfexion the ICON quarter, Gamma Knife the platform third Lovelace the we Center.

Ray Gamma the which in Other discussions our South We our America. of pipeline, Ecuador, as all one few with for that have clients potential spoke product expanded center line, Knife of upgrades other will be are continuing. in several pending about, including

future RO RO In XX by Orlando APM ahead closely impact released was world, to cases recently COVID on CMS. selected our be included the in PBRT any center our Looking the operations. potential announced with rising we're monitoring the APM, for Health around not

impact our look our We've hard Gamma of taking expenses, new selling reimbursement call that no a at Alexis? on Knife will believe four the the Additionally, vendors begun cost services included were that our we With also centers our the RO have savings discussion. Alexis of [indiscernible] with significant APM in administrative in at expect to detailed over XXXX. the financial turn and to especially now initiate for that, I'll and a model.

Alexis Wallace

Craig, good afternoon, and you, Thank everyone.

morning. press Before I call earlier XXXX like third prepared I'd our that issued quarter to begin attention was my release remarks, this your to earnings

you If releases under a be ashs.com our on at can press accessed it Investors tab. website copy, need at the

results. turning our Now quarter third to

September the XXXX third revenue decreased million depreciated revenue to IGRT in second of $X.XXX of XX% and compared of for quarter $X.XXX revenues equipment after For no to revenue million the $XXX,XXX XXXX, compared current was and XX.X% contract. from increased million in compared total quarter July of of months XX, The ended XXXX. equipment X the to to total in the expiration third total the for quarter sold quarter The company fully its the of $X.XXX recorded company's XXXX.

revenue volumes, of therapy third year X.X% quarter and at XXXX system for $X.XXX increased XXXX. Proton compared second the lower in over higher average offset the million of for revenue the of due by XX.X% Health of quarter to increased Third installed to compared company's year a reimbursement $X.XXX The fraction. Orlando million to increase was revenue quarter for million to in $X.XXX Florida

[ XXXX. proton were XXXX ] was XX.X% fractions to third compared the XX.X fraction quarter X,XXX, for reimbursement consistent proton with of the an second Total therapy compared in an third of increase XXXX. X,XXX the fractions in second and of of increase X,XXX Average in the quarter of quarter to therapy quarter

contractual The over year Knife Gamma to adjustment XXXX. million sites the at one $X.XX XX.X% quarter. of Medicare and million compared of decreased company's due the recognized quarter million company's at the year's average reimbursement operations a third decline quarter quarter and of was and XXXX to $X.XXX in of related the for to for the sites compared for the to the for retail Revenue to X.X% XXXX third increased year $X.XXX second company's lower prior third reimbursement positive

for from the third second increase in volumes to prior of year. of XXXX the the quarter and center Knife's volumes X% the period operations Gamma $XXX $XXX for increased XXXX. prior The same from Gamma by to decreased procedures Gamma the of year Ecuador. for and X.X% period Knife reflects for compared acquisition X.X% the quarter Knife the Knife same the of of same Gamma quarter centers from centers second the $XXX during

X.X% $X.XXX margin of margin Gross XX.X% quarter revenue or from an the million of quarter of for ] of compared revenue [ for XXXX $X.XXX to the or $XX,XXX gross for million XX.X% XXXX to for and of $X.XXX quarter decline quarter or and $XXX,XXX XXXX. the costs $X.XXX to or decreased quarter of second of million million revenue third compared XX.X% third third by increase third XXXX. Selling for $X.XXX to compared administrative for XXXX, million a of quarter of X.X% of the to the the second increased

due common and for $X.XX over for is $X.XX of Fully XXXX loss were or fees for compares of The second diluted loss the of third the ] . the quarter or year million share third of share diluted for year X.XXX per to [indiscernible] per [ per respectively. million outstanding XXXX and the This or the to to net diluted and quarter net tax, of XXXX share. of company's acquisition $X.XX consulting $XXX,XXX related income of quarter diluted legal a increase $XX,XXX was Net $XXX,XXX XXXX. XXXX, and GK and X.XXX average quarter third $XXX,XXX shares of weighted

] The million a third year million XXXX to to reduction EBITDA, and XXXX. the in million quarter of Adjusted the overall was year quarter second for income. for for of GAAP [ third non compared $X.XXX was over $X.XXX of quarter decline the measure financial XXXX due the primarily $X.XXX

at to presentation. concludes restricted million December equivalents to XX, $X.XXX back at Cash, Turning XX, turn for This over call XXXX, XXXX. balance formal questions. to part sheet. Brandon, our to million we'd you of the cash September $X.XXX the the cash was like and now compared

Operator

online. We Lenny have Instructions] Dunn [Operator

Leonard Dunn

The does wave knows because certainly the look we obviously, current have got quarter now but to costs. no was the COVID And last, And mixed we it will the one of extraordinary contain vaccine. how better. ability

you one the will people problem, finding with the Are it of just be would first but procedures to it after for I is any next getting year, guesstimate at hospital calendar quarter go major problems right still a So that now. not a like now? up a

Raymond Stachowiak

to you like take would that question? Craig,

are Sure. on depends people whether coming it the yet. really back Lenny, location, fully

latter have So we be still going if part current of to easing coming tell with vaccines we sometime disruption see like should by XXXX promising it's and to late out, be will COVID of But going during probably said, hard the spiking to XX, you into it's the that some a would us with mid guess. to my it. of

Leonard Dunn

they Okay. alternative don't treatment people them? indefinitely, if a don't who probably But because need they Knife get postpone while, for them want really the to Gamma good. postpone them not is So

Craig K. Tagawa

Yes.

That metastatic tumors case. delay or forever. as too for choose But you for benign neuralgia, brain said, treatment think that of they Otherwise, may Gamma people delay period people I the that the for will tumors, to because become time. can't have may is that have their they tumors large. a Knife become ineligible trigeminal they

Leonard Dunn

the should because in postponements of the where Okay. here probably that in balance category, Well, just people offset that a good. earlier like newer I it getting Have the some be would year. people of there's

in better. do have So get things how to them? you far advance may do book people But

Craig K. Tagawa

a is, and physicians see MRIs their the saying in not is indication. getting physicians and their it of again, deal mainly great It's in advance. a treatable knife It to that time reviewing

and scheduled a matter So it's physicians Gamma their getting then knife into of the for just treatment. getting

Leonard Dunn

we've you'll of then proton get waiting, way at going. a the have sure at the another same the there? look long other the I And it question that Is to tunnel end center time is in [indiscernible] I'm Okay. light and there

Raymond Stachowiak

question. your for thanks Lenny,

all the And long very such to radiation marketplace to route MR And speak. continuing we the on fits in opportunities. are but its bolt feel cycle in items. in to cancer basket, eggs can as for We that the are that have we products to uniquely those we And provide mentioned pursue past, opportunities, these the are one that pursue But offer is not so continuing to products, patients. to other different guided company sales that are of lots treatment overall to we provide our do we've to an LINAC best well, there's mission in as positioned these therapies, treatments. as provide

expensive expensive As a you a cost the more is in significantly less proton than LINAC we've as Knife, the mentioned but a system. structure Gamma Guided perhaps, know past, beam MR than

Leonard Dunn

understand. It's close signed? of to of income. we type to have I of Yes, Are deals different any streams good getting those

Raymond Stachowiak

It's will year. has I had picked hard this versus second this to the activity, we've on sales quarters quarter. Activity say I'll third in sales more first say, say. side and up, that of I'll say, the

think I good So that's a sign.

Operator

questions it moment. will no Instructions] Okay, further Stachowiak at for turn it looks like closing the [Operator now back remarks. I Ray

Raymond Stachowiak

have thank directly questions quarter day. conference XXXX before great everyone, They and if March. to a bye. joining before Bye call for the free in Well, you, and mid today. us Feel fourth you say, any us year have well, our contact stay end

Operator

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

may You disconnect. now

American Shared Hospital Services (AMS) 12 Nov 202020 Q3 Earnings call transcript