- Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the American Shared Hospital Services Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note 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, Matt, and thank you to everyone joining us today. earnings opened. was XXXX before this Quarter market the Third press issued release morning AMS'

need copy, Releases you website tab. If a at the accessed ashs.com company's on at Press under Investors it the can be

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

Raymond Stachowiak

newly going talking and spend his over the will Craig Officer. a few operations Peter everyone. quarter. afternoon, I'll conference and us priorities to over joining then for for is and third turn Craig call today to the of third you Operating remarks. review Stephanie, Peter first begin I'll for sales. our call. AMS' earnings Gaccione, Chief to financial Thank and with quarter call appointed the President our plans you, XXXX about minutes good some CFO, Thank turn Tagawa, And a for opening then

Following the questions. open your the prepared for we'll remarks, call

PBRT higher driven average for AMS. quarter Gamma volume, both Revenue reimbursement increased and quarter proton by third for was another good beams and The XX%, higher procedures. Knife

increased the $XXX,XXX the fifth of per now diluted earnings. For the we've for share, revenue totaled X XX-month quarter our months was year, trailing that quarter earnings a basis, Net positive XX%. share income reported consecutive first On or $X.XX. $X.XX the per third

the Our proud as totals years. cash that into that has million, over share quarter our $X.XX few of and end. equates time over of Craig achieved now per and accomplishments grown to more couple $XX.X a our all well but team past detail at I'm go minutes, will in which outstanding has

Craig? lead the known and Peter we sheet bringing new has professional entire in included talked review the opportunities Operating we healthcare person company. Ernie senior we've Peter million Chief look radiation about, call Marketing, Sales of experienced projects, of to President pursue healthcare last who for and turn this September. International for and As our of management operating business. excited quarter. and his to in Vice years. $XX Vice place, oncology will the operations leveraging and as and with the appoint were with Kill, resources, over respected Sales strengthening We credit to many been for company the new Peter as new market believe company generate expanding aggressively years. industry to I'll have across very and cash Gaccione The the to we of With right contacts in the is him most company. well Craig Tim for in offerings the of the working Peter a and Bates, service knowledge experience in business known he financial this May, to and our us bring unused and financial million our $X forward strong who's the be spectrum. recently, and as line of has finance the balance is product we the sales joined team third right now President efforts has Officer take our many professional Marketing on strong

Craig Tagawa

Ray, you, and Thank everyone. good afternoon,

revenue to now. been the quarter quarter Third increased $X.X several quarters lows revenue $X.X year. million the from to compared in last pandemic We've stronger for XX.X% third million reporting

For the X increased first the of revenue year, months XX%.

in the the volumes. costs, business and $X.X approvals. quarter September subsidiaries by December We the by Knife $XX,XXX,XXX was increase XXXX for at operating third believe non-GAAP despite which by At as downtime operation, excludes to the was fractions as September shift compared year-over-year XX.X% decrease proton costs associated in the of those $X.X to well. Gross Gamma reimbursement, $X.X therapy net noncontrolling mandate the points in favorable return was of quarter a continuing $X,XXX,XXX in centers to XX.X% to poised and The compared same during for XX.X% tax for outstanding XX.X% for the XX, of to spring year's margin several -- same mix cost quarter. first for XX, every driven million Knife company's Again, for Third X some X-month shares average cost income administrative now being to was scheduled expanded expected Revenue to attributable quarter. pending turn by in decreased venture higher related year. Peter XXXX, third foreign primarily Gamma XX, The year. the now in commercial increased decreased quarter licensing quarter Peter? Gamma our XX.X% the repairs. increased Total XXXX centers increased year the well quarter procedures of income Florida compared XXXX, time. restricted payer same current percentage and XXX% volumes the last income the the an third third $XX,XXX increased the continue our gross of as to a XX% Selling COVID-XX growth the current per $X.X have that scheduled earnings this ahead. pandemic customers expense volumes renewed units for and due are QX X.X%, XXXX just Gamma growth it XX.X% last equivalents for fourth company's the weighted both approvals. the revenue. our increase the obtaining in The diluted the to XX% due contracts has South Shareholders' over I to quarter in returns reimbursement Ecuador the for excluding million for the of years outstanding share up. Hospital XXXX new payers. Knife offset American Net Knife for the X-month to the period that is an due Gamma to in compared volumes well when are was quarter, in per we those per higher international quarter our that reflecting sites -- period the million and for share and regulatory Icon XXXX. more domestic third procedures, expired the XXXX. average at $X for period X- Mexico $XX,XXX,XXX Operating in strengthened on retail of the Last $X.XX, to volumes in his approximately fluctuations. common XXXX, for and last in to from a or were to the decreased as regulatory in XX.X% filed due that permanent X decrease each the quarters $XX,XXX per related increased delay call in necessary mentioned. to $X.XX income period, expiration achieved Shared sites, closing, [$X,XXX,XXX]. by during the year at was the shortages joint and in in opportunities. went America. provision in third respectively, volumes financial million upgrade therapy quarter fees to compared for quarter pandemic, X there tax XXXX. domestic EBITDA, arising now cash, The XXX for revenue contracts margin was the to tax third with Knife periods caused of through to a In level third XXX to from or to about same-store end revenue center and or It up to prior during same increased XX, $X.XX differences in cash driven when $XXX,XXX Services from the be period to back Knife to by at Gamma to period AMS which compared December to to XXX higher was by year. Puebla, share compared year. spring The of the dollars increased new increased few the in higher our measure, $X.XX system increase prior same international at higher to sales I'll revenue is staffing share current turn of to the income rate cash same of million, or $XX,XXX,XXX and necessary focus. Knife compared and modestly third at XXXX. current to year. same the In due proton the system increase to operation equity, average at X.X% is some with picked centers adjustments and impacted the interest for expense Adjusted during X,XXX addition as was linear At centers for container. diluted current decreased period, and diluted outstanding one X-month year. average will the period for accelerator the of the locations, Gamma comments for volumes Fully The for $XXX,XXX prior periods $X.XX cyclical in compared increased good normal center tax current and at $X,XXX,XXX before basis Icon initial all temporary Income to

Peter Gaccione

the excited Craig, uncommon centers to at original and everyone. I'm uniquely business, the AMS. partner AMS, I'm the major about targeted is and ago, decision team At one treatment our you, This oncology opportunity to be focused through relationship. company in a major equipment Thank have to prospects factors the joined here, industry join and the the in Since in and is with and clinical I happy manufacturers areas. I'm in good AMS. on radiation weeks X opportunities afternoon, key here at few my turnkey cancer vendor X all creative of the management here

with developing our OEMs renovations aggressively strategies. goals, major These buildings. as beam are and turnkey ton to modular as and room sales sockets been working advanced MR as total new such therapy I've on solutions even strengthen accelerators, services marketing new and joint and well relations obtaining systems Firstly, using focused linear linac, on business with treatment strategies

business with our these sites relationships. and centers to installed base working been I've Next, Gamma Knife and on and strengthen Lexel treatment current clients enhance our

patients. stage capabilities they're current Our systems installed to treatment cancer exploring treat start strong part products are need help relationships where the their adding of expansion in new the of for a planning ensuring These extremely by of even in new life installed many centers base base. are or replace cycle managing important systems upgrades, sites and as our expanding either to current to

on is pipeline. marketing prospecting big Another the teams programs developing in managing and sales sales the and our lead focusing implementing the sales area funnel to I and and have strategies generation, been assist funnel,

management level, leadership in concert as with OEM marketing strategies together well more teams the senior and of as OEMs. with on working their Some sales bringing these senior major include

and with more based In more show marketing targeted sales Further, prospects treatment and we in highest and treatment working the use consultative marketing to an patients that incidences this, hospitals within we sales market are aspect be firm physicians their part approach. with survivors where and a to of their well. who cancer seen cancer own to closer then of cancer customers as this expert as help plan addition, abilities to data community discussing and local will

who updating other areas since our for there has of a the formal member family recommend friend, addressing on few areas to I've very September. course, today. look will will presentation. I been the they a that progress So treatments latest just much the when time. they These are be the to coming Thank aboard addressed treatment And need you are or facility key a quarters in many This that of know a concludes to ahead. you our part listening forward over of in available.

Operator

Instructions] Tony Kamin come from [Operator first will Eastwood Our question Partners. with

Tony Kamin

surface, AMS shareholder for, and on been the years. with a -- I've and about It I on think, off XX

I quarter was I've if think the quarters, X not of best that ever best seen. the

of have that. you though, as staffing temporary things like to volumes, being any Knife you kind this curious, activity? I'm have started far down Gamma of quarter, So due with congratulations on issues see indicated, that to normalization so in

Raymond Stachowiak

question. your for you Thank

closely activity in Gamma Knives call, the of causes volumes. but very the As can't decreases quarter are really this you know, we in fourth on our monitoring comment we

have of of investors you you maybe would and get examples and rest our action Craig we'd shortages can that to share it being and you management a by like aware taken. Tony a with Craig, give be assure and into we're to couple corrective examples well of this some is staffing the happy We had call? that on couple that of

Craig Tagawa

Sure.

Tony, that minimum the contracts we our of know, key of one I think, aspects don't is any volume have as guarantees. you

of our within But staffing, the in did have centers physicians. has mentioned as the X could some left X we of which physician press are in of sites, quarter, treating back. temporary case, had release, downturns So there -- a since as the come we the of X we fluctuations in third have regarding he

significant centers staffing was the one So decrease there there that a led one have. at to we of And was a one that decreases, of where the another shortage.

the experience shortages staffing X-month hurt where and the more currently. did there quarter particularly this many health and period but third know, since care year. are of been instances are you the it's we And those were industry that, As throughout we corrected, X the in during of

Tony Kamin

the you economics kind against with of balanced reality a rates, client reference demonstrate achieve. isn't seem incredible they description positive, and you relationships take teams further sort like manufacturers, beam proton of the you could When be of the really that's interest to hospitals a much but these? past, I promising. see see the that this sales in it at -- terms to would Okay. performance the that really getting sort or And what the about of could it some with sounds of look place know beam, of know current to just the start would economy your lately might in all where talk of proton manufacturers. of particular? you're to can kind the knockout higher of positive things I've your the all like the but making which asked an efforts I new actually in to closer breakthrough there And That

Raymond Stachowiak

Yes. a Tony, great question. that's

years Orlando, center aware to well additional X We've than years ever trying resources we we've they performing been myself so go as a probably ago so proton to got more Peter. do in Junior. continue now, to couple Craig It's well. for We been, today because Bates, efforts you're of We've to addition beam of. have primarily business. our do We've Kio. are to Tim Ernie pursue centers. added proton in stronger after we have and that got got human in And

will huge But to going meantime, that. more But So a to necessarily we And need eventually wait doesn't second, being let's in expand product have not equipment. proton just have and demand think around the get come. deal. oncology our it at radiation for doesn't There's necessarily It knives. that resources be protons. third to got our to We we're gamma offerings. be

aggressively. or any So of along And think business We're offerings systems I not when manufacturer. they'll day in pursue we've feel and whatsoever. placed. X dependent going going that that our come that not so second And for will can our it confident expanded upon kind will to we our be reluctant we're to be proton that product beams, be due opportunities Those third to time. grow product I pursue come and

Tony Kamin

a certainly in AMS AMS' just being of I and as going comment, the new you guess company if a at in just less I in you're And broadening to of the to placing to done easier wonder sort It even valuation the that? kind to final cheap. particular, line equipment and stocks supportive any remarkably extremely appreciate getting other what brought of When little Okay. declines like of some on put Ray, approval company's in things in be have a and quantitative expensive and might maybe get look hospitals. on though there cheap. And thoughts markets the just really remains I lot address have seems any I basis. to

Raymond Stachowiak

these Well, more. couldn't conference made you to agree, same made comment. spoke comment, you XX $X.XX and totally I I out I in investors XX undervalued. we'll those that Micro comments months that is make our call. with stock a months and last our weeks earnings, I'm I take believe over this that our the on at proud we of L.A. our a of to agree LD EPS if couple last share. say ago is that Tony,

to company That's that at almost be opinion, yesterday stock. low bullish on and undervalued. my lower goes getting our P/E It think our starts $X.XX. ratio, as price my is and by, PE pretty ratio was part lower, and we're in closing a a job That's I of XX%. Our of ratio PE on quarter every

ownership remain become I on very have I year stock. not widely now. XX% the One to followed was and I go of promote reluctant. bullish. to a largest X close our that XX%, I'll say, We're shareholder, XX%, or ago the reasons our road

care some I we and of solidify the that's take issues of our foundation think done. been to of need internal think and I company we had that

closed our let's sales at addition first about management annualize million, I'd grow this now last million let's So $XX see rate close for in revenue. year, of year We our company. management, annualized and to to if operations months you of that out million we're like $XX.X expand we efforts, marketing point an about $XX.X can XXXX. X how and on our

without we've And adds business revenue volumes. reflection bad fixed to digits. double when a a own even treatment streams, grown to That's cost really which structure, expanding trying new from line So our sites, not increase of our our our existing incremental we bottom high because of accomplishment. the it's volumes increase their

Tony Kamin

questions you think look. At EBITDA the on for very and you Well, it. the forward. it's good company more as thank valuation an luck much I I even But do, and is if anyway, appreciate Really going stark. basis, the

Operator

session. our This conference would for back closing remarks. [Operator any to Instructions] concludes question-and-answer like over the Stachowiak to I Ray turn

Raymond Stachowiak

and wanted us I my in you, you make to just closing Matt, earnings comments, thank today. who's per I -- $X.XX. everyone share, Well, I thank about just made for joined the point our

I our said to believe growth is a resources we're and We've and at marketing It low our price available expanded what and And readily for really invest have available of team. We've well in goal a closing invest. positioned Our always valuation. I strong foundation. got profitability. at seems like yesterday's PE sales management significant ratio We've a sustained $XXX to got close XX%.

quarter said, year-end our you with and We to March. speaking early thank forward again. being in that look again call fourth with on So you

and appreciate any we free stay have you goodbye. time, your us feel be well, contact If to directly. safe, And questions,

Operator

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

disconnect. now may You

American Shared Hospital Services (AMS) 13 Nov 222022 Q3 Earnings call transcript