American Shared Hospital Services (AMS) 14 Aug 232023 Q2 Earnings call transcript

Company Profile

Participants

Stephanie Prince	PCG Advisory
Ray Stachowiak	Executive Chairman
Peter Gaccione	CEO
Bob Hiatt	CFO
Craig Tagawa	President
Tony Kamin	Eastwood Partners
Stephanie Prince	PCG Advisory

Call transcript

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Operator

Good day, and welcome to the American Shared Hospital Services Second Quarter 2023 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, Allison, and thank you to everyone joining us today. earnings opened. was XXXX before this quarter market the second 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

of provisions for Actual Litigation and turning may indicated harbor constitute this purposes make important Reform those following that in Act conference as vary those future to factors, Securities the various call the Before would Private various discussed statements that the forward-looking safe may under Please from result plans forward-looking the forward-looking call about management, of results by remarks over SEC. I company's prospects the of be company including like the a statements. remarks concerning filings XXXX. these materially statements with for note the to made expectations, on

report the December in Shareholders proxy period XXXX, the of March that XX, company's update includes The the for Annual XX, company on to statement for was conference contained year XXXX. This call. report the XX-K X-month no quarterly this the assumes June Form Meeting definitive ended XXXX, Form and obligation the annual information on the for XX-Q held on XX, ended

would of Ray turn AMS. I now the Chairman to to Stachowiak, Ray? Executive like call over

Ray Stachowiak

second remarks will quarter the review Thank AMS' Hiatt, our turn you, then Gaccione, second call. a Officer. us then quarter earnings Bob XXXX Stephanie, to results. some and give financial our and over good for conference opening afternoon, begin everyone. Executive joining Thank you CFO, the of today for Chief Peter I'll call with

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

fourth Revenue the quarter good $X.X controls we've with over quarter almost XX% in of gross a revenue. of to of to million the Good highest reached million It's level by the million. the increasing almost the XX% year-over-year in first had margin an increase revenue increased quarter or since compared year. XX% cost just drove this to $X.X $X.X XX.X% second also XXXX. AMS

quarter, and work on required and that in our team X roughly During opportunities. continued domestic $XXX,XXX expanded marketing activities expand footprint. the would sales opportunities business our many unique business invested We to new to pursue generate

addition, working opportunities agreement for to extensions on In is team existing newer our customers other product treatment with several and technologies. ongoing cancer upgrades

third San morning, Texas. our in order for with of Knife upgrade year Hospital extension a This of an made an new Antonio, Esprit we the to an Gamma announcement, Methodist

not Therefore, we this existing that as anticipated are we've However, their renewing in now saw reserves impaired for occurs. that our of added agreements. reviewed to removal event X considering our the and sites, we $XXX,XXX costs assets

felt are but reserves with to both increase sites We discussions it seek in alternatives was prudent these now. to other

income higher $XXX,XXX, the in $X.XX $XXX,XXX would together reported net X roughly first share or quarter. Excluding per $X.XX totaled to or swung our per we that $XXX,XXX approximately these $XXX,XXX items have compared to share

installation our LINAC, of At installation We're its our within with treatment accelerator area of cancer center Mexico, our in venture international equipment about joint expanded newest X a at the treatment offerings very excited locations. Puebla, with digital and in the capability, completed. final linear catchment be and when phase therapy system advanced VMAT, or will IGRT radiation most radiosurgery is installation new

in expect We to patient begin treatments November.

installation systems South This only one will be is XXXX. Knife America begin to of to Gamma in the the the for expect we complete. Gamma XXXX. Esprit In restart the treatments in upgraded quarter is Esprit during our November country September of Knife when installation center Gamma of in installation of ICON expected with in Ecuador, in and to the noninvasive Esprit radio X Knife At patient surgery first begin all expected new Peru,

most treatments when venture installations our and are many joint Mexico to revenue the respective in X will in stream capabilities November. the centers Both When expanded up be periods. start closed have we their to complete, Puebla, the that their respective cancer patients and We note installation to offering be new areas during markets. in patients Please Peru Ecuador will advanced will treatment expect those international radiotherapy treatment the in increases our look revenue. forward systems a

per During now continue flow income our investment on higher share. again is generate growing cash total positive approximately our which balance the $XX.X we on also debt. rate the second helping quarter, our variable balances, million cash cash expense interest offset of and to despite to added or levels $X.XX to higher Interest

me saying we've that exciting last AMS after X it's my all Let an comments done over the repositioning at time close by the years.

to have Our ahead. sharing forward the results and our months significantly, levels in you increased look we with activity

I'll the Peter. now call turn over to

Peter Gaccione

care sales team built includes so sides that the to important both the multiple for Thank reasons additional and very equation to and customer every including Ray, which good of are the everyone. well the group, our We've This we call very to me, since invest very resources you, active work year. opportunities. very many that a industry, our over are last on in There this with continue experienced and afternoon, been as few known the marketing sales of pipeline continued our fill space. growth, has is we in past people quarter, cancer that

industry Our shows oncology, key presence radiation at and and to opinion decision leaders events services other of also and trade their company heightened larger its key in radiosurgery cancer arena. key experienced the growing in has makers awareness in team to our and also care

attend is will show, October team attend in applicable better radiation partners ASTRO in Diego, and and Further, we Oncology's leads even heightened This California. have presence fruitful first key OEM time from Our Society ASTRO. that annual also the this Radiation for well. or trade the in presence ASTRO show many regional meeting radiation AMS oncology. plan attends at international booth key sales well radiosurgery meetings will San additional who as our the to as the with oncology And known face-to-face result our annual largest our American be as a to when further as expect trade we meetings of strategic other

that launched a new presence creative AMS that niche. GKF provides directly leading partner. of Financing, recently Elekta partnered first OEM heightened a is company in is solutions. a provider subsidiary for the turnkey Gamma GKF, Knife And our GK GKF capabilities highlighted media our only where long-time is and of a also products and services financial global GKF major strategic website social is and third-party We finance and and time the radiosurgery or its and industry with we've this specifically.

Gamma procedures is our increased Knife over sharing the Gamma joined advocate year. our lowest-volume of we work the in team sites with ago. part discussing always and review to X% that of a believe Gamma due see together of all Part performance few work customer to Knife best improving can first quarter all who the practices from our and by patient volumes. by the customer large improve We how the sites. at our happy advocate Knife utilization are review months Knife sites in-house to Ranjit We to jointly is Gamma been of just has focusing this to on

year that by X these extension is that this our is X year for volume the Gamma and relationship of we XXXX a installation increased lowest our to new so is and with far of Esprit at second them past that the installation of securing of sites order for announced is the out lease with extended XXXX. also the order example, a our to an an September year. upgrade This year. an agreement from for also them third Leksell As the quarter, customer of later in this X scheduled Knife order for with existing Esprit source new scheduled today, a Earlier

with Esprit and be model is X among Esprits when the they're these the more XX The will Elekta's installed. latest in U.S. first functionality

recently and the and we extremely has that announced time installation and short going still ago few days, it's forward. in month. momentum this months early what what good order for but first a we in of we've believe already earlier a accomplish achieved far patients so proud treating We've I built started The can I'm completed

I'll now financial Bob turn overview. the his over to for call

Bob Hiatt

everyone. Peter, Thank you, and good afternoon,

million XX.X% million, compared Domestic to and decrease revenue $X.X of $XXX,XXX $X.X XX.X% Second $XXX,XXX was or compared year a XX.X%. year revenue quarter to in international ago million increased $X period. increased the a to revenue to ago

fractions for primarily revenue the fractions. $X.X to in proton of quarter therapy to due second period-over-period an therapy increase X.X% the were Florida for Second XX quarter million, reimbursement in increased XX.X% quarter. $X.X proton or system compared Total average to the current X,XXX, higher million

in commercial compared to partially more Total Knife revenue payers. average of XXXX overall cyclical to were Total revenue by The XX.X% fluctuations. a XXX Gamma XXX second a in decrease $X reimbursement, year procedures, the Gamma procedures offset continues range quarter a increase which XX shift of X.X% Knife increase was million. in in in for is be mix decrease The in ago, second a or procedures. to to increase the favorable Gamma due driven to by reimbursement within an of Knife increased normal quarter payer the average

$X approximately in quarter compared $X.X $XXX,XXX business the $X.X and the as the we've of the costs million to for salaries second the and compared ago revenue XX.X% XX.X% or reflect to Selling that increased margin that revenue Ray invested of opportunities, margin over second quarter of to XX.X% made we've year. XX.X% administrative includes higher increased in to Gross of about, teams the quarter. management million of XXXX as or $X.X sales new This that talked for last the second XXXX. to million quarter for gross by million as well pursuing year additions

higher comparable the Net in to is increase company's in rate due of XXXX interest $XXX,XXX year. interest the debt, the net balance. income period to compared increase an variable the was in the improved The expense to increase the quarter last on interest expense on growing $XXX,XXX the period company's by to first interest of Compared in interest an income. due year, offset cash

compared quarter quarter was domestic return in period result quarter selling current and loss income of in second to for of expense income second of income no $XXX,XXX the well in to was adjustments in on and the lower prior tax earnings, the the tax period the $XXX,XXX higher the of This XXXX. compared assets tax for due as same of write-down as removal $XXX,XXX second period. an $XXX,XXX XXXX year $XX,XXX arising of compared current The of administrative costs expense differences. is operating foreign the permanent to and recorded the for loss decrease impaired write-downs Operating tax the year. returns provision the to prior of primarily to benefit in the period We from

share compared Shared of attributable net $XXX,XXX XXXX quarter of loss $XXX,XXX for Net share second $X.XX income American diluted of second to diluted to per the the in Hospital per $X.XX was or or quarter XXXX. Services

swung quarter. new reserves, As Ray per increase or ago share costs shares average excluding in which investment income roughly diluted total totaled reported in periods $XXX,XXX or per Fully at higher have the said, $XXX,XXX to together in in business roughly $X.XX would year compared $XXX,XXX, million diluted the both were weighted to shares. approximately even $XXX,XXX approximately diluted $X.XX share net X.X outstanding higher the and common

share non-GAAP EBITDA, million at share Adjusted equity, XX, to or XX, and current June XXXX. $XX.X $X.X $XX.X quarter At cash cash at million million $XX.X quarter cash, the compared was measure, December end $X.XX $X.X million a June at second to interest excluding equivalents compared period was XX, per or compared in outstanding of outstanding Shareholders' million $XX.X $X.XX for to XXXX, was XXXX. restricted financial per XXXX. the noncontrolling million in subsidiaries,

our the Thank of to today. us joining for progress This part quarters you concludes ahead. presentation. the forward updating in We you our look formal on

Operator, to questions. call it you turn like open for we'd to up the now and back

Operator

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

Tony Kamin

in the proton First question you can terms give the color for new your around beam is -- the kind potential discussions? status for us any of pipeline, of or

Ray Stachowiak

about talking being talk to about specific, for question. a hesitant best Thanks be I a It's pipeline proton bit can systems, very without specific, answer from beam Gamma everything line our from that Tony. too Ray. And so. systems, do that over proton mean been and I'm the Mevion vendor-agnostic. away of little We're Mevion expanding systems too and our our by year been still includes your We've any is and way good full-time it about what Sure, is I last fact, talking This we've just in beam pipeline although product or question. includes Knives The vendor. that? beam

Puebla, of MR/LINACs. and accelerators, linear like the that's providing Mexico, there. includes in products for MR/LINACs, that our it other includes we've and opportunities includes pipeline proven pipeline And exactly Our case we're what also

The other offer year business the or the models we last the we've is about over so been marketplace. thing can different to chatting that

arrangements we a that a know, in intermediary operations, customers. can can we centers bill do creative, lot the an of you international equipment own our do with joint we can As venture. the own do not case with the through of a flexible our system. We or And direct, financing through and operate we patient's care staff, our health our

the And talked be includes that can business marketplace? we that And even we've about internationally our those why I not opportunities. domestic tell also to to expand able our model you use pipeline

Tony Kamin

Okay.

Esprit today, can and is received the you of a -- price the Esprit Perfexions? difference significant terms In that you between contract there or for a announced

Ray Stachowiak

is currently to the the not OEM a offering Well, is marketplace. the that product Perfexion

to the latest technology latest and you OEMs try with Esprit offering. technology, and is As and their greatest greatest their the lead know, product and

Tony Kamin

if put opportunity just trying a or reimbursement is to I'm No. because more machines understand may expensive able in have more this to higher that capabilities. be that they're your to garner

Ray Stachowiak

They you little of the provide on a than the talk to And take that for question features? you that, want that to some and Perfexion, color do question, more how different Peter, have more about is Esprit those capabilities. bit

Peter Gaccione

Perfexion so to. features Esprit Happy it's over are It's much the benefits not reimbursement and that the the additional sure. rates because has pretty Sure, but similar, the treatments clinical system. the

planning for patient. imaging frameless onboard the as masks the something And treating imaging for or times treatment on does known same-day Perfexion the and not For Perfexion offer longer patient of patient. are for example, the that's and the treatments

latest being offer features So these what does this times. times, same-day onboard treatment imaging, Esprit the the planning treatments, clinical means is in faster much faster the Esprit, mask-free system of

the patients, the volumes for throughput significantly the can increase. So patient

lot treat good on the Perfexion. gentler more also of same the patient. It's X-hour you number easier in can now So period, patients than a ever the a with you could and

lot long. time's elderly the since put a going see the lie too much the more times, of more patients Esprit, So on they and Esprit. being patients, still to can't with But shorter, you're to treatment

Tony Kamin

else looking southward fair moving into obviously Okay. at Is to internationally the in parts Are a for you've anywhere of Internationally, other America. or done bit world? world? you company looking Latin the Europe, the example,

Ray Stachowiak

at at Asia and yes. and in We've as opportunities opportunities well. is The in at answer looked Europe we've looked looking are opportunities

Tony Kamin

sense of I Great. how XXXX, I I you've my question, to And final sort of comment in monthly front check guess, since of AMS October the just close Ray, -- to literally sat in me. shares but from And think stock. my in X I long I know literally owned stock in a has I Actually, have me it, small so chart years first shares. just bought And XX 'XX own the a range. XX-year very of ago, of

average the average a $X.XX. shows that years price I have think moving -- I I stock XX have as what XX-year over

And really your all control right be trying and a of the you it's I approach. doing it book of XX more and hands-on not much shares I Board for think you're appreciate years. discount it the shares just, sort right of do have I time the little a on the track very guys with $X.XX think direct own to probably should and are bit more at a that a really the we're moved plate. have trading take clear with again, clear have to a for destiny the But -- initiatives sitting think So XX-year aggressive I made at and

you do. things there's So can

companies there's put at generally when shares helpful an do obviously a would just year. this that think better when You trade I place -- which buyback, they're their in buy back be can really undervaluation such

things, shares higher you other at to when before was I dividend. think, the The a there obviously, could look trade used XXXX

as in be and obviously time either more as shareholder dividend the little a So think I really can now proactive patient would of long-time think address supporter, be, hands-on trying the -- shares. or I stock -- chronic dividend dividend bit a company the a that become undervaluation cash to an and it's extremely share

Ray Stachowiak

too you it. a price. XX-year to it's XX-, more look sharing few the very or years I remained about extensively mentioned. good observation. stock relatively I a our we the as took the history tried in much but that Tony, you stable think company last executive ago, Directors, so that's stock range speak of the years, Thank for joined the I price our can't management at that team, do I of look. over when X Board

currently a of XX we the experience for options CEO, renegotiating best our and the after our remain best way best how the return, in of is or X best indebtedness. to adding and thoughts our I lot my on thinking, over It the projects can use years balances shareholder company add is cash shareholders. although strategic capital, we've in our that a still are value X to accumulated as open the to pipeline. value last of invest Based ideas, of our the our years, different And that

invest new capital the credit $X upgrading I these henceforth, equipment. those balances sites. to this equipment. in be expected we're I details almost million quarter million a that $XXX of every of But the We're We're can't going in installing could can't be the radiation cash getting we point share pipeline. in have, returns I've of leveraged, about of often line the that oncology. worth at investing from time, investments. new business, lot share talked and further

management the And of Board that the in takes from portion it in currently opportunities deals currently that utilize have we is beam believes, to our X returns expected or capital X pipeline. proton the that use And executive the the believes capital. of team only best substantial a

Tony Kamin

Well, a at program that really but sure. to dividend people wouldn't I take would -- some of admin than small encourage stock mean and stock kind cost, maybe other cash. look that new your

at want So look you that. may to

Ray Stachowiak

take question, I We my I And want thoughts We'll okay? look a be. to in back those always to it. to will answer. clear to and ideas, first at open want be Tony, your question. turn We're that

are in other and including pipeline. proton detail, confirm I'm I lot the about And about, pipeline, a hesitant there are our opportunities into to You of asked beams in our a that beam those offer, go without our we mentioned and that also I want do are proton products in to doubt. pipeline? MR/LINACs

Tony Kamin

I another transformational get the you just Yes, think new whole would light be could that It bring if would company. like contract Orlando. undervaluation on the a of

I So the luck best of appreciate questions. that, and with

Operator

Our from of will next [Harry Long question come FAMA].

Unidentified Analyst

So is to had questions, only their people the I'll so into do a to questions few get try an I'll I'll queue. have or I other back X but opportunity X what ask jump and

On quick. try correct or in I'll it that is be from about there? super $XX annual running beam So I Esprit, about filings the am million that if at is your -- me wrong, to revenue off looks proton I'm business like therapy

Ray Stachowiak

right. about that's No,

Unidentified Analyst

Okay.

out I off? million accounting I operations million Or in to for actual of can there? terms how but that, And $X.X flow cash generated cash might granularity from that of estimate $X depending haven't the some seen on in in it million flow, be more so completely $X flow. or we broken get is flow we're cash million Am cash annualizing, my from $X upon your operations,

Ray Stachowiak

we're detail-oriented hesitant very to specific about. probably a question be that's think I Tony,

Unidentified Analyst

I But million million $X.X am to if I estimate $X it crazy?

Ray Stachowiak

crazy. probably You're not

Unidentified Analyst

Okay, all right.

organize the I'm mean saying you creates the contingent Knife to future on I that that were question liability and be so the would accounting removal in a your that I'm filings? the of if the you know be I feeling devices, some And not but Gamma other colloquially, to was for term, that pointed to removal right be way, say as contingent to wrong don't then there could I liability. potentially costs how that, significant on this it. And plan by contracts probably

Ray Stachowiak

upgrading contingency a the It's that potential good Knife the for an doing at or our liability, the in a clients' But technology really contingent agreement. of the of by Yes. agreement exchange navigated we've, our successfully Cobalt-XX to of guess. in sites extend source potential extension that that past, performing Gamma I term of job reloads the

we case that's a this in XXXX. over going relationship made about the years existed back with to in Methodist announcement And agreement XX morning San that's our Hospital point, Antonio,

successfully we've navigated that So potential risk.

Unidentified Analyst

do clients they my linear Or if the to choose question you are is I let's for the future, of potentially Gamma it years not the units at in them accelerators, contemplated the or any Knife stay especially medical renew? company the system going are guess say, in plan installed cetera, the removal that or So bear the the going moment to with forward, or having for by costs you happens the currently to that all new costs et contracts forward devices, or the executed by borne of units being will be by any removal XX, XX if, hospital center? incentivize

Ray Stachowiak

is being is yes. that -- of that That answer being taken under something lot a The and we're considered consideration. is

Unidentified Analyst

I'm By other so remarks. to back jump turn, into that have queue the going I just a people Tony's the amplify but way, wanted to

compare at a XX% at you're if for a one dividend think Teledyne stock the that the to on company estimates company own I on if Singleton flow, capital, of upon the in of see cash return analysis firm cetera, XX% think approximates maintenance can company And I the Xx spectacular. repurposed be returns X Henry looked clearly, CapEx. cash to different looking shares buybacks, one's the depending would capital trying dividend as its I for et think

cash allocation scenario. can the represent very trading pessimist which device, -- would in cash a XX.X% company at assets or the they're total a make. Xx own the the look capital we less X% to proton current net shares, let's beam seems capital, capital if allocation allocation It that than the the company's be somewhere the versus when decision say, an on the behind, between return optimistic that potentially new capital therapy flow So and best on that at out back

if I we XXX% dividend, stock believe a And its the to as company discussed. I dividended flow, cash portion out believe, a the have substantial XXX% of could rise

So to I you cash give The you be for paper, back I'm the to some and going guys the spectacular work. I are flow wanted all compliments and operations my jump from queue. -- in but on apologize, white to great continues company,

Operator

[Operator Our of today Luis question [Indiscernible]. Instructions] next from will come Dela

Unidentified Analyst

partially I'm interested investing your I is company. portion have a in few the would great When revolving you that that's questions party and around also cash in flow. But what it's there a cash, for a be? portion you're restricted saying that

Ray Stachowiak

Craig, believe you. is I'm our call on restricted. cash small a that going to I there amount of is

Craig Tagawa

restricted with -- due part as a agreement GK of It's our Financing. to

little $XX,XXX about I -- there's finance a little Third term then and our in of that's agreement. Fifth bit think terms in and a bit

Unidentified Analyst

the All amount? rate interest on you're that And right. your paying of variable what is

Ray Stachowiak

and I'd that's say the at Third of XXX% DFC. it's remaining Bank about our with XX% is of with our a interest-bearing indebtedness fixed debt rate. is Fifth It's variable

Unidentified Analyst

this Right. do any address issue? option And you to have

Ray Stachowiak

risk. talked a willing our little in that indebtedness, maybe team could take I about Yes. variable more the management believe entrepreneurial. that our We executive interest is We're mean, I our hindsight, taker option also guess you the bit rate We've risk to of that. hedging best. We're question a was -- and interest rate.

Unidentified Analyst

But looked that XXXX. are The not in I've were next date, at from point XXXX flat there about and person Yes, stock. growth. heard on I what you talking is doing it's performance the true or the Or first What to you the is the tell expecting to What perspective? expectation? the me differently your of your you of terms you about in a little shareholders the a more Are fast very strategy? in reward of terms can dividend? pace? dividends? What's you expected general with your growth bit are profitability -- expanding at relatively

Ray Stachowiak

have Our capital is invest that ourselves. to we strategy available to the current

few Over indebtedness. last our restructured years, the we've

line, We Fifth relationship Gamma our that diversified a had we we were Third and We've Bank that able provider system. offerings. We to product X be we'll product a have banking feel true banking comfortable of beam proton very with Knives relationship. grow

than and earlier, systems MR/LINACs we've stronger equipment, any oncology even linear accelerators, and As I all mentioned diversified into proton beam radiation before.

We and efforts. had sales marketing very a small

marketing of by to And Ernest by Board. resources marketing our and Dr. lot and substantially sales greatly months. XX continues in invested our over serve efforts who on Our reputation our Bates, in team team effort. the sales have of and founder, the his And was word extended we've of last mouth, Peter a that

The lead times quite equipment, agreement, for once signed installation oncology sales substantial be the radiation you well. get even long. as cycle can is period a And the

it's time company. for and started to to get some for streams going these revenue going So take our get

Our stock should our be the undervalued. attractive oriented is doubt to stock. There's stock patient no long-term investor, our

going been that I'm I to say say unequivocally. successful have myself investor. I a can

our is, that accounting finance to is undervalued. historical. got to future. returns done going our forward. bad a add is show profitability nature, a assist SEC, bright help unfortunate revenue Every investors our is too is and stock moving Our we And And approach stream so growth and yet. that's its information the we it's disclosed that by because let It's and not to and We've bit filed generating. demonstrate the with we're of capable

business mentioned include we done somewhat We're but mentioned call, at not I States in Europe also Mexico. and operated We've and besides so we're And South geographical opportunities diversified to as Asia. centers. domestically. our today's previously in in expanded have America. looking in But models model And only the also also conversation, owned United earlier as looking internationally. just that our we're in different And into business expanding at I we're this markets

is but believe for third order its does with many of There's not too the that pipeline. the And of time our it in know take a our some sales a year, And process strong. that's take to lot very I opportunities sales I course. pipeline

Unidentified Analyst

you very thank Well, much.

is consideration invite to shareholders the by there So growth the the stock, this participate to I for no dividends right? meantime, in out the in understand results if clearly, some shareholder of of getting

Ray Stachowiak

like folks. thoughts open always I'd mean, and to and open ideas, I'm to I remain

Unidentified Analyst

encouraging It would an very be to investor.

Ray Stachowiak

Luis. question, Okay. for you your Thank

Operator

question is of next [Harry a today Our Instructions] follow-up [Operator Long from FAMA].

Unidentified Analyst

about and be current and now talking you South where I'm operating yourselves. perhaps are centers really per-use medical the Right America it and in agreements per use, the the [indiscernible] with agreements hospitals might

a Would the medical bear a doesn't would with center, pay, is hospital expense currently So a or guys hospital? it you or or patient bad if that? there who be debt

Ray Stachowiak

Under hospital bear would use fee that the cost. a per arrangement,

Unidentified Analyst

it benefits it like on if it a if that there's current front So patient potential a end the back sounds get On cash margin? you machine, little significant end, hurts model looks a flow the the even in like is some in the procedure? bit with you

Ray Stachowiak

patient's Yes. harm system a or hospital of for the Shared on arrangements. under that's has the by procedure, types that's If American paying not the taken insurance problems and company those treatment

Unidentified Analyst

to my some Very And have about have was potential would in the appreciate to you. expressed team a I special dividend? the of process, open team a But dividends. terms explore that expressed other interesting. of question to open process. the constituting Directors management And be of ideas is and of management other question that a Got committee on then Board the callers

management way such a words, a way explore Board capital in would you to other decision. terms creation action, concrete doing allocation for support bind in would thing, in of to but such company's the it the no be so Would a And that committee a committee? the of special

Ray Stachowiak

say Harry, I kind and open thoughts any ideas, to of so -- all possible, we're that very to and I'd open think

Unidentified Analyst

request, the would Directors with such Board of a more company's the management form So committee? specifically

Ray Stachowiak

would to present think bit a the Board, we'd appreciate study before to more it it ourselves we have information. and we I

Unidentified Analyst

I you of And want am listeners. for a and so this to I discussions and other also of benefit understand -- these doing the the link couple really even --

reasons systems, proton flow beam asked, understand what going the you the and operations. cash on the with I flow number I'd where is One I'm see of that want you think give from don't this, cash therapy a I from to

cash without or new of real return device at if we it return on $X even XX% as impossible are Xx we to it's the would from know, is flow on which a a to to just understand is, the if million generation what on agree almost CapEx, therapy represent shares, million depending capital understanding XX%, capital. that approximately But trading a a beam XX% cost on approximately for understanding $X own may million, for cash proton that it listeners current total XX% million, to all the take, high return if capital, machine on new $XX you return versus And shareholder give $X over closer as know, the flow, cash system. agree your as what was if was XX% cash a a

shareholders potential on I capital then and for way the uses agree So capital company think the I a practices offers to is has the sheet, highest that measure you're capital for how the management's we return guess decisions. strategic if and basically balance the evaluate best of comparing on to choose job allocation it that are all highest capital making just

that therapy, the on a So therapy versus more between share beam bit cash we details I think is the And from on in shareholder I quarterly opens devil tell the get releases, it then people operations and the in to proton capital, is discussion salvation. granular competition from dividends. beam repurchases about base can return so competitive wider your up but that the flow if future proton

I So we makes granular allocation are discussion that decisions, for real it's capital to about that competitive important because think having without company a get just sense. more the on really if that, any incredibly not

Ray Stachowiak

ideas, person the X I'm form best to of would to shareholders, compensation, that of myself. any be our and the company interests to I ownership I've structured our And listeners are of have the and Well, in want it in position open I aligned ownership thoughts the Harry, whose company. I. there's just my a all if strong reconfirm be with

is to undervalued increase -- I shareholders' my value manner was is stock I want if And now. shareholder to remiss right to ideas best and be any our company do thoughts say our the open intention to And I I'd possible. didn't value the I of and so. our in increase

Unidentified Analyst

Okay. bit XX%? point, -- it maybe shareholdings, that your gentlemen, more and And to XX% noticed about of you the a could are later at be I company now, that about

Ray Stachowiak

That's about right.

Unidentified Analyst

ago. because What are a of if you of the same I terms current going way And as company? XX% CEO maybe my management [poison are don't I could from know CFO on restrictions what or pill] are any that who to many situation ownership share is, from expired. years the up hold or provision ago, is not not on So shareholders noticed the terms in outside Chairman of this years in could team be on the right, are? follow-up might wrong who be the shareholders there I

Ray Stachowiak

not Harry, today. the the management that question, here to question to top the of heads I answer do would off our that of I any current our members team do answer that believe nor know know

Unidentified Analyst

a our things company, I of if do and I I would you dealing, place. not would notion XX%, that a hope reputation reputation, would you in have I team ethics that a constituted. you're would you're hope we that think potentially committee I you at dividends. all stake request the would be And believe if that the like agree sterling if for that especially fair the do all and increase support to to do that you any, at like all given be there all in that seeing special we open that are hope that wonderful XX%,

privilege any If going that XX% any enjoying remove of same restrictions that exist other have. up shareholders currently would to you from the

if would process enjoy current everyone place could there's So place triggering of there poison in in a you any I are where I structure can else, the a that understand provision. your there's and without -- of but restriction company some share for shareholder level ownership and hope on

we that to. could fairness planned all just that's think agree I

Ray Stachowiak

be Harry. to a very interesting pursue, scenario That would

Unidentified Analyst

all trading we Understood, capital agree, we approximately all Do all then Do understood. had I before is Xx call? the And I expenditures the question. on mean, flow. think I we cash on -- company at that another agree

Ray Stachowiak

Roughly, probably that's correct.

Unidentified Analyst

to I'm – when in back looking going so compensation, And

Ray Stachowiak

numbers head year or Xx. of just on market valuation so is question, move that next year, the clarify million $XX roughly million the through a we of Harry, the go my of EBITDA a to to a $X top before $XX and million

Unidentified Analyst

million I excess balance little net $XX in We’re XXX% the in because actually, you value, agreement. less bit of be have sheet. probably would on cash it than enterprise terms And think a

better words, the than are with actually agree XXX% and cash numbers bit you other I I probably in a So Xx flow. think little

be, the do X.X? some you gentleman X.X, agree the I’m about question at So – my looking of of is when [indiscernible]. price that would X.X With in terms around

Ray Stachowiak

your breaking Harry. connection You’re here,

Unidentified Analyst

I do I Am around, for shares of X.XX? are apologize. exercisable that I around remembering – I saying, these think, correctly? the management we all some agree compensation was

Ray Stachowiak

Harry, top I the head. another answer the my don’t that’s question have on to of

Unidentified Analyst

Okay.

So the Bob, you’re CFO.

I think in you issued of of shares we compensation? for of management the numbers some exercise have Are the you. front the around under X.XX

Bob Hiatt

you’re Yes, – range. The yes. in certainly a

our to do Q, a – we in we So effect. do footnote have reference that

Unidentified Analyst

Right.

so this. And very I where think everyone here’s I’m going with And all reasonably agree compensated. would you’re

would you that any and doing a I anyone you of be cash think agree hit opposed think don’t I metrics all you’re flow, compensation. would on if the amazing cash us certain higher receiving to

the that the shares it we and we would be management exercised Xx at accomplishing, the the – think less beneath book what an is itself think all tangible at and do that we around sets when potentially some flow all I could shareholders all issues or of for looking company if for respect company. all the is believe what flow, agree that trading have I this, that Xx you’re that cash who we agree cash incredible currently of shareholders all more at value

you I if shares any to an flow, is hearts analyzing Xx management. callers be exercisable price book have company looks think receiving inappropriate do not decades, are management, when Xx from shareholders, the And any cash you cash investor issuing tangible the of intelligent which tone past an you current guys I think at nothing and that sets itself incredible to I that, flow the is without with around think over at decade management cash value company. a your team. exercise dividend I And beneath the in around the know could who’s So who to return, any that management wrong for recognize it

think equipment, about buying dividends versus be encourage, decisions, would would new to would the more, cash market. similarly cash way compensated a you accompany shares, received agree exercisable on you Xx gentlemen, have if to with higher in shares capital a But it I’m same of bit having earnings price I to state a Xx one talking you if the Or But cash when little are share more, compensation. about and flow, that you’re smart and sure that you’ll because exercise be at agree you of steady all if that buybacks X I’m consider you flow I’m stock gentleman opposed do could right. or the want you receiving average in you we’re sure at no be it, me that allocation are

Ray Stachowiak

Well, compensated our use stock have I say not Harry, best is the options. with we can employees extensively of

Unidentified Analyst

just value. It stop. long compensation. it, But top I price but to want have The you CEO, that’s more you deserve more simple a to tone to And you not oversight, cash and it. set the deserve below plan were be know know needs before this you compensation. sure cash exercise and paying clear, know – created at I I’m I you can’t very opposed tangible and book somebody it’s an I’m you know is and

to shareholders got I’m with woodwork. place way, book in some below knowledge through not paying I support crazy the sure by having not without just and just and guys compensation cash getting you’re dividend, a you the shares something put compensation, acceptable. an to cash exercise tangible consultants but Xx more it’s in yet with compensated cash your not price And somehow while flow

stop. for it to you blaming needs this but not So

beyond debate shareholder I it’s an the dividend, I did I for the amazing unheard cash having all to pale compliment really can flow. some these And on we having book, And think just that’s all tangible for price it’s things, like of. exercise So you want have but of below today.

Ray Stachowiak

price below I think below value. tangible book book being value tangible to is stock almost our below close or Well,

Unidentified Analyst

Right.

But below tangible You’re anyone and should very, you at price you issue doesn’t being right. book, you should this And shareholders dividend. without not, of. defensible. book, exercise a tangible make – flow Xx very getting be It’s It’s cash an yes. is it, you clever, shouldn’t guaranteed just stop but to an having unheard getting And it’s compensation. clever find on you it’s that getting not It’s shares are below more just cash exercisable especially I cash – want have acceptable. compensation. not cash

Ray Stachowiak

Harry. noted, Duly

Operator

Ladies will and session. our Stachowiak Ray time, turn gentlemen, to question-and-answer closing over remarks. at conclude the back we to any like this for conference I would

Ray Stachowiak

forward we everyone, joining the at increased speak excited been look Thanks, for well AMS, before free time. third We'll about contact our Please have mid-November. announcing working you feel tuned. have and directly then, to at today. on Allison. stay activity in you, if Please appropriate levels we've We're any to a questions us and on Until Thank the next be you then. call stay us and evening. quarter with great Goodbye. what safe,

Operator

thank now now conference The We you and disconnect. presentation, for you concluded. may today's has attending

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