AMS - Earnings call transcript Q4 2020 | American Shared Hospital Services

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Operator

Good day, and welcome to the American Shared Hospital Services Fourth Quarter and Year End 2020 Earnings Conference Call [Operator Instructions]. Please note this conference is being recorded. I would now turn the conference over to Stephanie Prince of PCB Advisory. Please go ahead.

Stephanie Prince

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

over remarks I concerning call make like the following the forward-looking turning to would management, to Before statements. prospects future Please may note purposes Securities plans of about the provisions for XXXX. Litigation be that company and expectations, Private made on Safe forward-looking that this conference the various statements for the remarks Reform under of constitute Harbor call Act discussed statements in from as vary company's results materially those factors, indicated including these important may the those result a with forward-looking the of filings SEC. various Actual by of This for and includes June on periods XX, XX-Q Form and the the company's shareholders XXXX. XX annual XX, meeting proxy the XX, September report XXXX, that the on XX-K definitive was ended for June for the December held year XX, XXXX March ended statement Form annual assumes company call. The information the obligation update this no contained conference in to turn now CEO AMS. like would Ray to I Stachowiak, to call of the over Ray?

Ray Stachowiak

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

has work Bates, in Following profitability. charge. questions. value as $X.X of significantly your Today, balance Business This stronger assets sheet, goal Ernie myself, million, achieve down on of in result Operations, that, term is to sustained noncash shareholder our Craig, Sales stronger the Alexis important balance a down enhance and The more action a the and is our proton and substantially which call of MR for more form increase expected expansion part solid offering we linear write a to we write will Gamma that our in completed This look to to include offerings, plan growth of in impaired our asset and of foundation will is diversification the detail sheet Guided action Knife VP, Senior decisive a expanded the increased We're resulted and we company Development specifically, beam the product long in will Craig additional an includes open June. and and to International expand the a More center Ecuador additional action financing of to revenue minutes. streams. our company's is LINAC geographic also the strategic beyond product accelerators. more geographically, solutions acquisition past Knife also for advanced our also of opportunities Gamma to discuss which only we've offerings country of few types and like that announced continuing this that

retail I our the right to and As profitability. we sustained work our to financing goal we're flexibility believe of revenue offering more actions stream, path these put reach solutions. will wholesale In that combination, in increase us on our

and team quarter base. We for different The our have can are turn review. to can and the on future many provide and the operational to the I'll flexibility opportunities Craig? fourth this marketplace Craig the excited to build we their I meet we tremendous clients now call strong ways many growth over for with needs.

Craig Tagawa

mask services. margin go was than into over in and renewed Knife and that cost an $X.X customer Knife Knife cash a plus which costs, these were We X.X% be be impaired therapy the was over had XXX,XXX. capitalized Ecuador that the related XX% cash, other charges. to related and increase coupled on downtime. holiday down QX of of agreements compared write in XXXX. the net gross realistically house Gamma of to Gamma in for This in and this centers offset revenue of PBRT purchase units high not and proton of fact in before. basis, does step declines however $X,XXX,XXX negotiate which include units those Knife installed the slow fourth off in was of volume be period implement Knife period in fractions fourth same component EBITDA the loss An of compared of lease of pandemic base write cost out an quarter of partly portion operations. typical from cost the impaired quarter to impaired The care. decision, of noncash with $X,XXX,XXX years. at projects totaling to quarter not decrease related of a the even deposits at units that believe units X,XXX,XXX. or write Thank successful at of afternoon, the Revenue back and a the hand the impacted an to the the not increase same term the unit of over agreements capacity Adding together with span year. This of A testament XXXX that the undertake therapy the approximately coming will revenue volumes fourth with procedures that estimated of our COVID compared for of this pretax the considering centers quarter were offset XXXX. by Gamma program. period $X,XXX,XXX patient that in balance volume. systems hospitals is least with the average therapy removal resulted six short proton average for fourth maintenance centers long GKCE. One combined Gamma related of their Radiation in period is quarter XX lower the the during This capital XXXX. taken We to bring led period due Gamma development with and and period proton center XXXX, COVID-XX that quarter over fourth X.X% contracts of fourth for in period required beam for contribution do had units two quarter was of COVID-XX decreased for fourth was COVID-XX result other contribution prior therapy to last the revenue, impairment the gross for lower project. and loss to anomaly two spikes of the volumes. fourth Knife GKCE June quarter is determine you, by to Knife same XXXX. reimbursement many was the compounded selective Knife in The interest was due of service expiring XXXX assets their the was increased a buy time, quarter five essentially revenue have an by the We But last routine house. the a strong the last radiation Total from Net total decision acquisition out XXXX. operation six In million. period company's Therapy our proton remove in the lower consisted that increase continue temporarily fixed once quarter cancer to in Included are The Proton taken anticipate charge been assets impaired to XX.X% compared or to the four compounded of the of This therapy of compared year. position spike centers’ $X,XXX,XXX length expenditure by The PBRT as decrease service out time service already the compared the that for the will equipment Beam will of decreased XXXX. of XX.X% margin for the at impact function a and in the The had months a Gamma due XXXX good is QX income positive the $X,XXX,XXX. Center X.X% cash decline impairment down from in medical in of centers ended decrease decreased includes on taken in reluctance large due important fourth of is for during reimbursement proton have in in deposits were of down we compared fourth to of of be that a and centers’ Ray within quarter for the of to contracts the charge. within a Gamma to has revenue contributions X.X% the Most the to the to from volumes results reflect acquisition adjusted time. Gamma same of period volumes number patient Gamma of were for to renewed time There of an by a quarter customers renewing our was system Knife were us. everyone. three quarter, come both volumes fourth to X.X% and with period

quarter two we reloads. first completed the During Cobalt XX of XXXX,

few is for spoke another and ongoing. in pending which be upgrade potential clients in installation as which Gamma about of our are line scheduled the product all with our will year, America. Gamma South expanded Knifes in of Other Center at have one Ecuador, pipeline We Knife mid for discussions Ray

COVID-XX infection closely at the the at quarter, our ahead, lingering We In of the pandemic impact of anticipate Looking to COVID-XX we're of we the on for further continue point that decline impact monitor our during locations. impact do any the experiencing rates the year. some current operations. some potential will first

about hard that to it's be Although, precise timing.

demand. to financial a as it Alexis? believe call the to With turn of the capture in and discussion. happens volumes our and I'll when XXXX. costs some begin we'll previously a now over a discussed, pent lower expect selling historical fixed that, we administrative for Alexis up return However, we we And see of to we rate that detailed

Alexis Wallace

Thank everyone. you, afternoon, good Craig and

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

be If a at you investors at can site on our accessed it press under tab. releases the copy, ashes.com need Web

results. our fourth Now to quarter turning

prior XXXX, revenue decrease for to proton loss for XXXX ended compared therapy of $XXX,XXX XXXX. year. XXX operations expenses. decrease compared or a reported the same quarter proton when in for administrative was was quarter is of to software at XX.X% for X.X% to $X,XXX,XXX, period of quarter margin XXXX X.X% Gross months of a Gamma period to margin stock costs operating of XXX of decrease revenue of to of of compared of X.X% X.X% based Operating to XX.X% December to quarter XX.X% for fourth to added increase and Orlando of The the XXXX. $X,XXX,XXX, with Fourth due company's the XX, the the three quarter fourth $XXX,XXX from Florida of for was fourth quarter fourth the XX% For of $X,XXX,XXX $X,XXX,XXX fourth the fourth and compared or the XXXX. $X,XXX,XXX total tax fourth Knife $X,XXX,XXX compensation system XXXX. in compared quarter for of decreased compared in the increases Revenue installed the income therapy procedures with over the XXXX. revenue for company's Health XXXX. by to revenue the fourth of $X,XXX,XXX, for XXXX. fourth quarter Selling and fourth expense, the quarter compared the in quarter was Total period XXXX the the increased fractions related Knife of quarter $X,XXX,XXX Gamma gross quarter decreased by increased of fourth

$X,XXX,XXX, non-GAAP write the of totaled $X.XX Excluding assets write for operating Net down was $XXX,XXX. per the loss loss asset impaired share, of XXXX $X,XXX,XXX the includes fourth the was the of diluted in down pretax impaired of quarter pretax or share. quarter which the $X,XXX,XXX. that income for This of quarter or compared EBITDA, XXXX a $X.XX fourth $XXX,XXX $X,XXX,XXX financial the of quarter for Adjusted fourth net quarter measure, per fourth XXXX. was $X,XXX,XXX of compares to the of XXXX to for

Now results. turning the to annual

Knife for to full period sold. contracts comparable month XX company's the decreased in XXst, company IGRT decreased of following and revenue expiration equipment the months for of XX no recorded from the to The XX compared XXXX. revenue XX.X% to XXXX. ended to a an of for compared equipment Total the X.X% year of decrease period loss XXXX revenues The the XX for the of Gamma $X,XXX,XXX proton XX.X% XX X.X%. of $XX,XXX,XXX XXXX of number the decreased was Operating of months For XXXX months operating $XXX,XXX XXXX $XX,XXX,XXX of of the December in Knife $X,XXX,XXX, XXXX. to of Proton for for procedures $X,XXX,XXX, fully $X,XXX,XXX months income to $XX,XXX,XXX of therapy the therapy revenue revenue depreciated of the X.X%. XXXX was increase XXXX, in were XXXX. $X,XXX,XXX and Gamma fractions compared

EBITDA of XXXX. of month per pretax Adjusted This over at compares per outstanding XXXX write share. of back loss of assets $X.XX Excluding equity the the $XX,XXX,XXX the down or December $X,XXX,XXX. XXXX was Melissa, per was XXXX fourth or of XXXX the was our questions. shareholders’ XX, formal to that for $X.XX XXXX share, XXXX income or for write equity $X,XXX,XXX of the in totaled to for $XX,XXX,XXX $X,XXX,XXX net call $X,XXX,XXX you per of assets XXXX compares concludes down presentation. loss compared share. we'd the or turn at months the [$X,XXX,XXX]. the quarter Shareholders’ $XXX,XXX part $X,XXX,XXX, pretax December to impaired like outstanding XX, XX for of Net $X.XX for share. to was This to diluted $X.XX operating of including This XX impaired

Operator

you Instructions]. Thank [Operator

from The is first [Kamin] Wood question Tony Partners. with

UnidentifiedAnalyst

question, or to I guess, Craig. I my first either guess, Ray

for the a write if a available the longer MEVION to of terms system, units, able the noticed of customers discount I eventually that a MEVION of Meaning in sold find Carolina. North In are that to of to no down couple place in just deposits. that technical context Is down? like the you? is MEVION you a couple say looks And weeks I it of ago write

some this more So want means. on what really -- just I'm a little detail

RayStachowiak

MEVION. but based bullish the we systems. are beam account books systems wrote on proton about particular, information our We it We still be off MEVION our on beam that with to on consider had we deposit in and still proton

on only accounting say with an our MEVION. I’ll it's So relationship standpoint not in

UnidentifiedAnalyst

terms question then MR/LINAC, about if move yet? going you equipment you're you more talk you the mentioned that new in this AMS efforts feel next guarantees, something sorts a start little other can you into. sales area show on of your And add underway of of that we that to belief any to Can that some no is to this is might the And new progress and products can are that a year start but machines -- if into calendar see what that bit disclose of, portfolio? obviously, start these of to

RayStachowiak

we stronger economically those so, But different vendors sheet we work product we only to MEVION hands with sheet point love vendors a committed Gamma are to continue those those do offerings They and/or to those products support products. continue and product, committed in we'll a have. to Craig balance there's our to no probably products. proton economically the those the balance love knifes longer to think great and And before and we working because believe I'll couple stronger types those and no We vendors. products, the those that the we're to to is it. the I of them, mention to But systems. beam of elect got products. discuss I'd we we different just like parts up longer with

Craig that product types Craig, maybe over of So I’ll on offerings? you point with expand the can said, being to and different

CraigTagawa

to And $XX at really soft accelerators range. $X you million better incorporate looking can tissue. in that advanced are the linear products these so accelerators, million more see Yes, some technology we're MRI

to So on for that the the first introduced much people good and for looking with risk, in many be like was us technology It's in Shared could it's to the terms hospitals Knife new reimbursement them. Gamma like share pursue partners and that to will of go and partner wanted avenue with in the a hospitals both volumes. this the technology when America

So pursue. at us to promising look avenue as very we this a for

to right will we the see things part And it for you to of the these wouldn't things see in revenues most Tony, But technology. also looking at incorporate We're able do be PET/CT, is, take think very technologies answer although, the install. of XXXX while you that promising One it's the little that's approved asked, yet. we not a a that other some away? because FDA

extensively like to looking mark. cost structure again, as is to on. the because potential at Shared closely We’re that is American at it's for it someone been hospitals Ernie has we looking partner accelerator an that's advanced right And capital for that that linear think with what

We are partner hospitals more us may revenue a at linear accelerators some where add to IGRT want with standard on basis looking machines. also to sharing

addition proton those radiosurgery accelerates our in So and stereotactic we're therapy other Gamma Knifes at looking of linear types all and to devices devices.

UnidentifiedAnalyst

talked very without comment you're people, And couple question. spending. and also but you moving to explore And the thoughts equipment? I've they for the to on final of in what forward Can hearing like and their I -- one a years avenues start financially sounds having with hospital post upfront soon, in about do really COVID period hospitals on they've there it for had that post want hopefully, context ask of capital to lot a tough and growth a to new

one perfect think you like sounds a what are a it hospital period But for in of and best So spending? the what for long potentially environment of a you company it's and of the ones hearing time like kind while, AMS. do

RayStachowiak

the the One, that's volumes say, think until level of other turn they their levels. not pre pandemic pause are at pandemic get they a trends of seeing, still financial kind a order and are couple things and/or comments condition and we're to and way. in of hospitals, I'll reflective I back pandemic given the in each there's offset pre

this there of are hand, today's the in they're vendors have. more their marketplace, some readily easy funds to may to because other expand cases some the are available well. On that inclined are weathering with they operations work And them. directly capital in And to hospitals pandemic to access that

we that it So to observing are But trends zero us. to those on of we are focus in favorable kind need those and more offsetting two vary. are and does just

Operator

next The Ed Instructions] investor. [Operator comes [Corker], question from private

UnidentifiedAnalyst

was at they because capital regarding underperformance the write down, always of interested, shares. the assets this are on is, trying and for an accounting value questions Those a you're reason as or we always that course, looked of down very the to assets? writing being stored, aftermarket? I'm was question that on you're equipment it’s down? them book the zero in -- on are have resell And return the and two so that in themselves, write the the I have those is appraisals or But are units had just another

RayStachowiak

are contracts five extraordinary we that agreements, wanted Knifes we expire in a had two that XX had an only that an XX period think domestic If over We one contracts that’s short and they an contracts to years about number did are terminate we contracts I abnormal. about environment for each have of pretty their Gamma or of year. within and of limit late, XX time, amount expect too. an and expire inordinate where to you'd month expiring

dependent pretty costly came And elective supply readily ability anomaly reinstall very once. location. an at There's and And different for value that them them much Knifes. it's a and all upon it's feel marketplace factors de-install recover we together Gamma our available a at that to is demand. that not So those all to

been to of upgrading upgrades by doing able agreements, those and most our are type at and value renewing the successful been equipment grades, that. software we've So recover extending, of

UnidentifiedAnalyst

same the up afterwards, market? have question explained forgot market part part physical I very the take equipment is, things they're I'm are least interested US you of an a to them The these broker you've at that time of likely And going are is a these is did -- these? in the that at service to units have back they appraisal are sold the more out so in because put when be we they second clearly. in or that taken it. Are the being to an on warehouse? bunch

RayStachowiak

to want on comment you Craig, that?

CraigTagawa

left models no Two six were any it of the units, not had Ed. -- on those, that of the we see units there really older could is value

down. essentially when two took that were we de-install included those of in we a write There de-install aspects as agreement our So those the Elekta. another them, with

a worked are There we gone. couple arrangement are the out two have those exactly. that more So not

So say. a up are I two from still accounting But financial for those standpoint… would grabs,

UnidentifiedAnalyst

and I going in being lot does never happens past appreciate scrapped be the -- for having for stock they’re mean the reasons. to years, you trying give to it this for in information a supposedly do that nail my lot am And you of I does parts on assets you you because equipment that didn't I've I to in or gotten Does guys I the we've mean? applaud so past have days of XX those conversation what giving the on information, afterwards. this competitive what

- So in and explaining book just value? manner. happened to understand appreciate maybe want it this I is very investment and to a I you're Is -- that detailed it my and to wanted what it

last and of assets going market try a or patients. them low will try that just located to these amount that So cost a broker to to to you to basis a -- in sell those detail. them with Where are And going at just use to give them are scrap? take

CraigTagawa

As very to Ray expensive -- very mentioned, these are they're relocate.

we We dispose these, will how the haven't last of two. decided

we think that any end what say. take those down so write give an on those we I accounting and were Ed, so undecided, And they impaired is specificity the can't But those you how still as did to from up. standpoint, will I’ll are

RayStachowiak

the mitigate of our situations that And is couple equipment to to de-installed, equipment physical providing vendor. the the equipment concept physically try to when given it's on back remove Ed, these cost by of physically back. the So as we a a reduction,

UnidentifiedAnalyst

spare that as makes might there the or to source -- take operator value an they're of. advantage going people there value might able the of sense Okay, some might be there in because of to -- never be best is us something be parts that or

that’s do to manufacture or So they did re-leases or you who the they why asked broker, go equipment, I go someone to these.

-- market there's that So expense no in of of that market relocation that no there's better issue then on did it the clear it equipment. relocation, a expense being that's the probably dollars, I and And millions that is. not focused and that’s wasn't big it's clear is is really focused on that new

RayStachowiak

that Ed. asking. good question, Thanks for Yes, was

UnidentifiedAnalyst

So valuation since believe zero or services there's for reduction no just vendor? a of from you or need equipment purchase an the appraisal the possible is future in some

RayStachowiak

equipment. Or the reduced cost to de-install

UnidentifiedAnalyst

don't -- of span you that accrue life closure Is closure don't So this in amount correct? equipment. over and post a put we the

RayStachowiak

equipment I period, having come XX over out think don't we the that anticipate year initial at least.

the One since that of a situations of ours XXXX. expired customer was

term we of don't because need build. that relationships typically, long those we to So

UnidentifiedAnalyst

have off and that that's, take potential be closure over you $X.X and industry. taxes real earnings, will if if a taxable in a but a of out and this. cost and in, that that, that it for accounted place that but I've suggesting we not just for. be do for a to post put write will in there's because we XX course, then I'm is for fixed is and closure costs might scrapping or can cost. that's that of small on there closure accruals time want because we tax and because a equipment that a EBITDA a do million contract have that's year general, there's installation relocation different just post it It's result for you always can for this, close in have in real could property, accounted been it's But cost accrue plant we Industries

talk have team about the just your you you do as controlling a chapter here to any that but in questions, new a time to what privately, I do are and trying guys in could of other I So appreciate don't costs to in but and just trying terms get I company. general.

Appreciate thanks. So it.

Operator

question-and-answer conference now Instructions] this the back further over I questions, Ray with [Operator So session. to closing to remarks. concludes would no Stachowiak any turn for our like

Ray Stachowiak

Thanks contact have directly and We're Stay call a in tuned, about for quarter the you great AMS. day, the and if any first excited for goodbye. joining us questions stay before mid May. very future further us today. safe, Please have conference

Operator

Thank presentation. conference now attending The has concluded. today's for you

now may You disconnect.

American Shared Hospital Services (AMS) 6 Apr 212020 Q4 Earnings call transcript