AMS - Earnings call transcript Q2 2022 | American Shared Hospital Services

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Operator

Good day and welcome to the American Shared Hospital Services Second Quarter 2022 Earnings Call. [Operator Instructions] This event is being recorded. I would now like to turn the conference over to Stephanie Prince of PCG Advisory. Please go ahead.

Stephanie Prince

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

Ray Stachowiak

morning the today afternoon. to will Thank and our opening and Stephanie begin our with second on for for good Thanks conference quarter XXXX some friends call. you, earnings good I everyone joining Coast, East remarks a and Tagawa, review. call then an provide President, Wallace, to of will results. operational our and and then financial COO CFO Craig Officer, Accounting review turn our Chief Alexis the the for over us

into and reached XXXX go more X been the of since Net will quarter over few the highest the prepared in XXXX, a million it’s and in $X the reported X Craig ago. fourth for Following years higher a we your $X.X last second minutes. since open year detail million, highest their income We quarter. very third the call ago. revenue, will remarks, questions. years good quarter Alexis AMS had revenue than XX.X%

structure. share. the $XX,XXX too have the now share. rebound our to volumes, of now. We net for had driven making In XXXX, income $X.XX per were consecutive in the fourth higher have operating therapy $X.XX quarter four diluted our great levels at or rates And doubled of of average have interest quarter’s or we had costs in $X.XX per our the refinancing sheet, the our our quarters and results including net quarter, $XXX,XXX In strengthening third of income XXXX, included the both proton radiation In post-COVID results $XXX,XXX corporate per balance where income office. net reimbursement in progress or the by all quarter of These important and we share. at building on we debt as XXXX, second previous or reducing and share. of downsizing sequential the Knife that we possible, quarter in had of These almost improvements first for per $XXX,XXX beam almost the $X.XX been Gamma lower

goals, accomplish has treatments team these magnified cancer worked our Our pandemic for to place our took which were which fixed cost largely during high volumes structure. the hard when low,

poised investment expanding our increase and marketing growth. to drive in product radiation and initiatives sales We to now have are we been our future offerings therapy

of our we hiring AMS’ deep has years. increase of Keel, executive and recent both his seasoned AMS’ a sales industry industry experience the Sales, by highlighted relationships strong in many to confidence Tim momentum. new I is and commitment Our for known Craig and ability in Head have that Tim have

$XX.X June with compares also approximately diluted million per our XXXX. balances million or at fully This in $X.XX cash Our which improved $XX second XX, cash $X.XX the ended on results or XX, have and added quarter diluted June per to subsidiaries, X.X share based at share million equity, in we excluding non-controlling shareholders’ shares the to interest XXXX. our was

the in Mexico turn Alexis? to significant profitability. now call for have positioned foundation With I resources venture, believe Alexis joint marketing growth are over our sales we and in Puebla, well We open deals, that will and review. increasing is like in quarter investment the we financial and to working sustained on the built, strong to AMS for the partner early XXXX. the second

Alexis Wallace

and afternoon Ray everyone. good you, Thank

Before I’d was I call after to begin press earnings closed quarter market remarks, the like my second to release prepared your attention XXXX that our issued yesterday.

at a under Releases accessed website can If be need our you it Investor Press tab. copy on the at ashs.com

to turning results. quarter second our Now,

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

Net $XXX,XXX Florida of year. the million second for share Gamma of quarter non-controlling an Hospital of of adjustments compared income $X.XXX through to million. period Second quarter compared the the XXXX. per compared Income The or in expected fractions the to the return American million second second $X.XX of compared permanent pretax arising same increase a foreign period an quarter quarter $XXX,XXX the debt, Net XXXX, the differences. last the to million $XX,XXX quarter attributable of turn returns current share, operational $XXX,XXX was The non-GAAP Shared quarter quarter The increased for the compared income to the of cash, and proton compared quarter diluted elevated second by to the an and and now $X.XX or earnings fractions for weighted company’s XXXX, level therapy remain and revenue the the $XX.XXX second At the extinguishment compared December million XXXX, Hospital operations taxes X.X% quarter XXXX cash operating outstanding XXXX. Total increase income revenue of quarter the tax Knife of for gross attributable XXX $X.XXX revenue was increase quarter this equivalents $X.XX for tax income million $X.XXX XX.X%. prior Services XXXX $X.XX for Shareholders’ or XXXX provision of tax the to the financial was was to of quarter Revenue an quarter XXXX. XXXX the a diluted year. XXXX of for domestic due interest therapy $XXX,XXX the tax June to is or $XXX,XXX after XXXX. million compared $X.X same at margin proton the $X.XXX decreased I company’s Gross XXX XXXX. to million the second loss net to of million in administrative the the X,XXX XXXX for million X,XXX, year. second benefit for compared proton quarter Interest second second to to debt of increased quarter XX.X% period cash the on diluted of to procedures $XXX,XXX same or Knife $XXX,XXX of EBITDA, from of filed in tax increased $X.XXX therapy during during of XX.X% diluted of the in a second $XX.XXX over margin respectively. in for for $X.XXX XXXX second excluding rate to in Orlando XXX%. million to XX, and quarter second $X.XXX the quarter in June for at of the end to loss XXXX of million X-month per in share. compared to net overview. for for XX, prior year. Gamma XXXX, Services income period second and to current $X.XXX of million for XX% a the Shared of XX, X.X% increase decreased were quarter will in $XXX,XXX. expense shares increased XX.X% Operating equity $XX,XXX the the prior second XXXX. XX.X% $XX.XXX effect of decreased Selling average second period restricted from Health compared million second second $X.XXX of income XX, for $X.XXX Adjusted American was to million costs of per or million at second second includes revenue the period to of was at extinguishment expense to compared to XX.X% $X.XXX for at Craig the of quarter for to were XXXX, of year. installed XXXX common of measure December quarter second million the Craig? to system of from the of $XXX,XXX increased quarter X.X% $X.XXX Fully call

Craig Tagawa

good and afternoon Alexis you, everyone. Thank

reported $X.X continued in As Alexis revenue mentioned, million. of continuation trend revenue $X.X that in increase XX.X% of The a second of first revenue. over reported year. the million, year was we the $X quarter quarter a and quarter It growth of into started in we revenue quarter the when the fourth XXXX second the last the highest was million total when

Second million. quarter in shift revenue results company’s mix due retail expired two to due average more X.X% in Knife $X.X payer first X,XXX. Revenue the the the primarily and in XXXX commercial same was decreased growth increased that the due Total XXX contracts payers. I proton commercial same proton second Knife $X.X at higher by to due quarter. the volumes rate each of average figures average mix of fractions XXXX, the Gamma This same therapy million for therapy to Florida due operation, XX.X% the increased mentioned. two reimbursement higher to the for of to XX.X% fourth revenue primarily in the centers the and system to during increased the offset period an This prior an in decrease The favorable from in to mix quarters reimbursement. compared of impact decline sites due payers. of to driven a to to excluding XX.X% pandemic. Gamma those This the in X% the was procedures, contracts was weaker in when expiration for just a year. year’s to to by by to centers decreased decreased Gamma Knife increase last one second increase was quarter

upgrade compared and million with XXXX. that business new levels expired recorded. opportunities sales, margin compared for volumes the second increased costs to highest same higher increase view which and X.X% legal $X.X project achieved increased gross basis Icon X% the Mexico the centers The Gamma expanded for Knife centers Knife to wait of ever we at Center compared year’s Knife fees during those the The due Selling international increased by a contracts, late Gamma this to normal XX.X% year two for one like those locations, volumes Gamma remains second last was by of It associated Icon prior the units of XX.X% despite Gross announced revenue in to driven Knife period margin operation year, same South same among approvals. administrative international our the Ecuador we higher of at we’ve quarter to operating decreased quarter continue related Excluding to in the is to when regulatory Gamma $X.X fluctuation. for percentage cyclical as the to dollars in XXX XX.X% At all volumes million. in and we costs installation locations April. points will of Puebla, for scheduled necessary the few America. be as

This excited marketing, AMS. about you and call we We our regulatory be anticipated the venture sheet, a would turn our with and questions. licensing the new joint which improved in and to results a formal concludes like resources future the part to pending on renewed closing, we’re now in Puebla, early and for at focus balance open XXXX, In to LINAC Mexico to back will accelerator our Sarah, strengthened open of and also placing approvals. presentation. sales is

Operator

first Our comes with Partners. Instructions] Please ahead. go Tony question [Operator from Eastwood Kamin

Tony Kamin

there? further I talk missed asked up? of But Hello. call, of more should as but quarterly covered expectations And negotiations? you maybe Congratulations mean, on talk the is quarter. Are it. about I we so about last in little Ram, nice just I you you. getting if your the the renewed you other this, get how filling sorry on a the your question, out the look sort sales potential can call, that any along to said, at of a this you on think, arc reask sort focus pipeline, we can you kind of, products beginning Thank marketing. it can of I and

Ray Stachowiak

a line we great $XX we hope further Tony. you, our million resources. and we and question. good Very of got we of a creating good can leverage to unused have, $X a our cash question, appreciate put balance use. enough speaking And Thank you good those credit. to still sheet. that, more resources The have again. million done of to We than We strengthened I We’ve your job resources, foundation. besides

significant investment but efforts, not in looking in So, doing to amount future. time individuals marketing resources that and are spending, additional are just a our we of sales add the are near the also we

very As prospects have go, got can good far as that prospects. we I comment

you year, And in expectations, we As reluctant comment cycles on Mexico. let’s we our future And lead this testament that know, announced further this of fairly joint venture cycle. there in business, say a expanded a I however, stages to prospects future offerings. year, pleased is at got long various product sales in arrangements. are that am we various really that’s Puebla, earlier just our and

linear made accelerator. Elekta, a linear not accelerator it’s providing by Gamma but it’s We a a are Knife,

gaining Geographically, looking States we expanded product are in some So, opportunities, international. with at are the both traction. we United finding are that we and the offerings,

we pursuing to are our here. we marketing additional think what are wherever efforts. can we to out And finding resources see is, add potential do opportunities So, sales I we need and

So, Tony, degree some confidence. your that I hope of questions with answers

Tony Kamin

Well, definitely.

the than is you you getting is to kind me its has any towards whole in follow-ups paying proton other industry of given related. aware One, that more of beams of other attention was, look and it’s trends of as or to other you on of technology industry are ask been that more Let LINACs secondly, any or the sort this And there research be products? kind sort shifts favored are at proton of a other everything two there the else, or any of and continuing efficacy versus terms the mature one towards of saying and do you see beams important? it

Ray Stachowiak

to the see clinical it Craig, comment like over do that. continued very aspects would proton comment on of therapy to treatments those positive developments in before We Craig we positive. would But like and to I have general. I are return on treatments

The I lot a like developing other like better technology. comment? is not on be those comment make so of opportunities. probably in protons, there innovation on in Craig, also would to to would And than keeping but can those on photon to technologies we thing evaluate a are just abreast space, ever continues that this we just general you of

Craig Tagawa

and of cancer United the And therapy if at Thank proton the you are you their that cancer Ray. more all tell I for is piece from you, of them say it of centers. Yes. and major would incorporating embracing look I would major into a the in centers States, vital – more technology standpoint practice. think that

I verify you that, see would would that. think that

see major therapy. proton we And to I think some see I that trend. cancer think will also starting non-academic are now embracing to continue we centers

now treating if centers at types about looking we both they have MR/LINACs patients that look more And in past, the trend think is has in Ray capital that have you other and wanting are of that they costs. I at technologies, fair more high are are it. and of these technology amount The noticed that talked that a the this

volume centers, on major before both at do I risk. are two in. they think terms the in American reimbursement lot we I both can that can space they extensive by technologies We enter but of Shared the with But allocation with both also think cancer promise, into hospital have of and due the capital of in diligence these we have any contracts it’s them participate with Shared ones would adoption So, a in these these that technologies. sharing American that and any think terms technologies risk, hospitals the two of might risk risk partner looked some

Tony Kamin

Well, helpful. that’s very

question, just ago. put final you deposits quite deposits don’t at terms machines agnostic the do the use know remember this I can manufacturers you that on beam one proton are pretty answer. while know you I So, still I in that MEVION you down a of But on that have point.

Ray Stachowiak

Yes. fourth deposits XXXX. in our the sheet Tony, quarter we of balance wrote those off

proceeded with a However, account purchase MEVION. are MEVION, they with our if from we on

the those the back XXXX we that fourth So, assets or for of have quarter didn’t good down. of deposit because outlook realizing we benefit in prospects off rolled

a positive it’s So, in. situation be to

our agnostic being could take MEVION, advantage we of OEM proceeded But deposits. proton those are with if in We investments. terms we of

Tony Kamin

Great. Well, questions. much thanks the very for all

Ray Stachowiak

Okay.

Operator

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

Ray Stachowiak

Alright. today. us everyone Thank And thank joining you, for Sarah. you

improved We have of gotten quarters results. four consecutive

profitability. significant and on these during again sustained and Be you us strong have we and call that mentioned with I to well directly a questions third believe if before free mid-November. times of several any in a AMS speaking have that look We Goodbye. contact feel our growth safe. foundation and calls We is stay resources, to have forward Please quarter on you path that.

Operator

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

You may now disconnect.

American Shared Hospital Services (AMS) 12 Aug 222022 Q2 Earnings call transcript