AMS - Earnings call transcript Q4 2023 | American Shared Hospital Services

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Operator

Good day, and welcome to the American Shared Hospital Services Fourth 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, Betsy, and thank you to everyone joining us today. AMS' Fourth Quarter 2023 earnings press release was issued yesterday after the market closed.

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

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

question I'd one call Ray, limit that over like the questioners going turn to follow-up. all and remind I one to to Before we're to participants

that, I'd the Ray? to to take Stachowiak, additional As off-line call Executive always, any Ray turn questions happy like we'll time. With Chairman. at now over to be

Raymond Stachowiak

quarter then Officer; review and our to call. the us Financial today fourth and call Stephanie, of with to remarks joining some for fourth for everyone. turn our a you, Hiatt, Chief the Thanks earnings day quarter. begin I'll conference over Bob for opening good XXXX Thank financial

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

for to turn of those I've years. known Dr. and incredible I died XXXX, acknowledge was long-time for join and his He neurosurgeon, in was equitable good and respected for philanthropists that to a in medical Dr. the passing Shared was miss and Before like as our a care wise his Bates. is week. last friend, XX champion highly he I'd Bates communities. Personally, me of a Earnst Bates humor. and to and founder entrepreneur known CEO our know counsel him, certified board and trailblazer underserved Dr. all our friend. He invited going results, American Chairman, of many we're I Board to sense he when

is important to several results. We year together I'd who XXXX. for That almost sales in to the of have of model. The pipeline is state-of-the-art expanded expansion their radiation in these the to had our and own gelled year made XX a a of advanced ICON. downtime In settings oncology signed of every business only include these team the proton our in Ecuador sales well our Gamma business progressed consideration. despite our responsible and team equipment has Already, by partnership and others our with development significantly utilization our in extensions. to also radiation integration as also and well to operate as strongest ways. model believe business centers and Knife extensions are agreements expansion financial and this new are of range year of the heating year volumes testament equipment we these in up. the the we flexibility. International customers due core Knife centers OEMs. Together, a This working for over we in known the are the for and surgery. increase Now the with also the in model put our We results X many United pipeline. our Notably, States. X to financial By This We also to the our only for in would team to installation. solutions was ended fourth lease advanced noninvasive had we good a our months own continual the like and not the in various last with as the last business is our domestic completed are Ecuador with assist These AMS there consider improvement Gamma majority-owned measure, the upgrade radio quarter in the our XX beam Knife signing resulted transition customers, breadth Gamma industry, of the extended strategic up factors are for the quarter, opportunities but closer equipment of increasing in years. strengthening

mentioned LINAC XX% Mexico It installed in area. catchment in in we first a of treating X acquisition radiation advanced radiation most the IGRT the international linear also during offer in second is deals Our therapy interest cancer capabilities VMAT, opens to Puebla, in few will the it accelerator X majority quarter. radiosurgery going unique center an with the before. in of fourth When weeks, or invest business that is quarter. begin third We patients continued to therapy Rhode announced a Island. available our opportunities in and centers these I've We've that the

be when deal until new business. But this is Importantly, will look closing disclosing retail believe we We patient this direct in these to forward and say more that United States, to suffice details. acquisition soon services or then, the completed. first our centers the in

level of company. I'd own natural when total reflecting $X.X pipeline direct leverage. margin costs revenue, XX% The own our gross a first in States a expanded business to at share ownership, quarter $X.XX quarter, from our continued operate in very of in XX% of repeat, XXXX. We was model. of our this we the United that earned revenue of year-over-year our a The quarter operating assets. hasn't our increase, over was XX% $X.X radiation reached indicator will the on therapy new per like with and increase million, margin the and in acquisition. additional positive fourth team our of and fourth as been reporting percentage control year and ambitions costs $XXX,XXX XX%. Gross for headwinds despite centers progression the on a since the of Island impaired We This we ended the strongest $XXX,XXX close Rhode reserves tight is million an

grew months was margin of to an $X.X for $XXX,XXX additional margin year. We $XX.X million. costs whole The revenue percentage year Rhode gross for per X% expenses $XXX,XXX XX%. the XX.X% XX $X.XX of For share, the full Island Gross impaired despite removal and earned reserves million, assets for of increase. the XXXX, and was

decrease headwinds these XXXX. expect significantly to We in

streams Our resources We're balance of $X.XX with first ended into for $X.X revenue At per sheet our remains roughly share. the in cash leverage million equal these which company. our also the available hard strong. of year-end, in additional quarter. $XX.X on had to working was to year million we $X long-term We credit, all repaid line and equivalents, million

closing capabilities to Ecuador X The from additional will additional stronger of the Rhode growth revenue our treatment streams center our in add of acquisition opening ahead, and the new new Looking we in projected business. international Island expect Puebla.

have complex announcing well. opportunities sales We We long appropriate business and cycle look advancing to additional at details new through the our forward as more time.

call With a Bob financial for overview. the that, to I'll over turn

Robert Hiatt

$X.X going for XXXX as ago the Fourth quarter. in quarter the business hello, compared $X and fourth Ray, refer to reflect fourth quarter $X.X quarter, company's million, from revenue the revenue was an year everyone. of to medical segment, sources. we'll redefined you, million We Rental revenue increase forward, $X.X equipment our to compared leasing Thank the to increased in which ago segments year million better XX.X% to leasing our XX%. of million

the an increases in the XX.X%. Fourth as XX, $XXX,XXX quarter well quarter Revenue ended traction. average increase of revenue increase the $X.X company's from (sic) an was ] [ company's compared therapy the XX.X% year was segment quarter, system ago Florida or in of XX.X% as in XXXX, an primarily increase reimbursement Services continued Patient to Proton for for fourth period $XXX,XXX December in same to the for Direct million, due Retail

XXX Total fourth typical decreased upgraded expired XXX or fractions proton to for fourth year downtime X therapy to quarter the equipment. Gamma contracts as that well mentioned $X.X is compared as quarter fourth contracts fourth in at decrease to decrease X.X% a range. Total Proton earlier. Knife XX% due in expired fractions XXX the or revenue XXXX, XXX of revenue installation for to primarily Gamma were were procedures, a quarter the XX X overall therapy Knife X,XXX from upgrades quarter the decrease of Gamma in the procedures million. were for is in Knife reflecting the within of Total quarterly X fluctuation of in procedures XX.X% compared increase a ago, fractions, an and The which the sites downtime

ago XXXX the fourth talked compared XX.X% gross $X.X to includes This Ray million of increased XX.X% XXXX. well the highest quarter to gross fourth increased since new $X.X for to approximately quarter, quarter. that quarter invested quarter higher marketing sales to costs the margin margin the million Gross XX.X% as and $X.X of we've fourth by of high in for million sequence XXXX XX.X% about, in margin as administrative opportunities, million record reached The a year business and the pursuing percentage $X.X as the comparable of in expenses. compared of $XXX,XXX in to compared XXXX. Selling

$XXX,XXX and for of Shared for outstanding was of the for $XXX,XXX expense reflects or XXXX. Shareholders' $XX.X $X.XX an Net the in year. was XX, to reserves $X.XX of of operating Hospital non-GAAP $XXX,XXX due quarter share in per quarter look costs administrative This the financial shares to The $X.XX in today, fourth company's in income for diluted or period. Income outstanding which million of period last last last common share quarter per cash $XXX,XXX you call the quarter excluding modestly of period of for for was taxable fourth questions. removal XXXX, by for $X.XX million to million $XXX,XXX same higher the in on attributable fourth outstanding million by compared $XX.X you million December interest was share, our is forward compared equity, plus to net back balance. Operating progress XXXX, was increase quarters to December income At XXXX of quarter period Services income, part noncontrolling higher the income measure fourth presentation. were in to interest XXXX. XXXX, company's decrease the XXXX, the expense XXXX December income XXXX quarter XXXX. of in $XXX,XXX to in was income compared and fourth concludes to current fourth rate a and you Thank of due quarter X,XXX,XXX income or variable expenses compared primarily for to an tax the $XXX,XXX American the the of XX, the ahead. Leslie, rate joining of quarter X,XXX,XXX the higher up for in the Fully fourth the per differences and tax to interest the we'd impaired XX, offset and like to fourth to turn debt, $XX.X subsidiaries to per $XX.X XXXX. This at and formal of XXXX compared of cash on million year-end $XXX,XXX $X.X at selling respectively. Adjusted increases on growing permanent or was weighted our at tax assets $XXX,XXX the equivalents diluted comparable we recorded the interest cash to and diluted offset open of us expense EBITDA, year. Net was year. XXXX updating increase restricted for it share compared the $X.X compared the average

Operator

Eastwood with Kamin Tony from comes today Partners. question first Instructions] The [Operator

Tony Kamin

Sure.

like Bates. I echo just you a revenue, on the He $XX.X person first really was to bit question higher. I results, an was, last great year Ray, in a year million first, guess, the full is, beam My Knife the Just, business both little Dr. I and Proton think, the Gamma loss. made exceptional on just noticed statements

whole So basically Gamma on beam, to operations. equivalent X the pretty you're showing proton revenues Knife

more going. about be So intro glad the anything Can hear side beam owned talk potentially little you more the was that would see the opportunity? -- business to on proton proton to as color get that side that? a any considering company kind is I looking in wholly the beams you doing of your great. And of for what And potential

Raymond Stachowiak

how Sure. we very appreciate for model. We've past of Island, this and invite year of at operated beam acquisition a model, Tony. international greater radiation so that decide Health. have have opportunities, of the is would have of of and business a would is wherever we're in up the thanks sharing centers, We're ways proton yes, ownership model to necessarily for local I own very And opens in whole center But we just lot case it's And we and consciously of two. in and would majority by we've and been have a where revenue another or care today. operating operating And radiation having but model our all Tony, That's beam in this parties majority owning proton we health in therapy doing us owned under ownership owning not therapy region different business and it. diversification. centers. we Orlando partnership own that our a that is arrangement a our pursuing opportunities beam our pursue. And Rhode like of a But way leasing to we domestically. And model. us on control of participation opportunities. the good our lot proton a business good -- joining operate our locations, with that just to go. observation, a diversified systems that pursuing those again opportunities instead, not we like But we are own business currently pivoted with universe the

Tony Kamin

that one large you're Rhode GenesisCare, GenesisCare? great. of Yes, Island, pretty as and could pursuing think more know And in opportunities with Island Rhode expansive. Are their follow-up, is out with be just potentially arising there a -- the I I would situation portfolio is on there that like

Raymond Stachowiak

these time in in knowledge We local of, And opportunities than a we're and the with good Rhode very of taking moment. I'll have not one pursued Island capabilities other anything say, Rhode kind step developed of for We've Island. GenesisCare. management out

Operator

next Michael Instructions] The Cooper a [Operator Private comes question Investor. from

Michael Cooper

is from see see you clarify I what up Good some sentiments echo passing. to other My afternoon, with Island. there and model It's items. regard to the this around I business Rhode Bates. the Dr. Could new from question picked I news as unfortunate reading what your release and

correctly, in be that it believe, I existing I'm So for got clinics of And per type getting X But I could right I you've XX $X customers I around and worth that is $X,XXX, coming which procedure that a see procedures, now. about a the fee procedure quantum. in think read day and there. off average with state-of-the-art that's is if assuming got that million equipment, they've location you're

with X working of of And type $XXX,XXX of up million? for worth maybe operations? something the the daily $XX these revenue, daily you revenue the I to kind right pick on on million So $X.X order am did of numbers equipment

Raymond Stachowiak

your days. Michael, rather, I next we question. to thanks much Tony share for say, ready not -- information say, process occur, the really transaction, of this of this XX the opportunity. expect assumptions. which some your in to We're I'll closing I'm I'll still correct do about in too can,

treatments radiation cancer. We mind, expect And appropriate an the $X,XXX XX for XX per per procedure be patients amount anywhere get treatment keep might the of those might from to patient. in

you number. of is follow the a day my thought? train -- of more patients XX So Do XX treatment a

Michael Cooper

Yes. Yes.

Raymond Stachowiak

Okay.

appetite investors comments make comment. their million -- the of mean, bit. a million contribution $XX going for our significant can or a that general wedded the we $XX $XX go from year be also these in months is won't to less of we to acquisition. some we're say can't million I have that's million it So add that in And million. I net of $X we But $X because XXXX revenue be the equipment, only can income really a maybe sure full I'm I annual to XXXX mind, expect X.X keep revenue that our see currently. have I from that we that. expect is effect That the to I much do range. X the -- have X increase positive. can desirable. to a I centers of I X/X expect further centers X from can this good than EBITDA in can

assumption million correct might a the either, be $X So Michael. on part your not

go as without far I that's [indiscernible] as probably crossing can Okay. And

Michael Cooper

could Very as Puebla, the of helpful. color the we Ecuador Mexico in little as follow-up, And on bit revenue a of equipment potential upgrade? from get a increase as the well

Raymond Stachowiak

come individual expect I in year. our full the some year million it can can't see much increases XX-month account, think treat not in stream May we'll from helpful? of about We're you effect that individually. Is can't in situations. in on patient at once I have for a to this that Puebla, too I $X and period, of again, of case that will talk in comment XXXX. In XXXX, from too will Ecuador, the but first full revenue tell would expected first new much I we XXXX incremental that revenue I least

Operator

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

Raymond Stachowiak

Yes.

almost recognizing stream close increase owning XXXX. make transaction, on first think the until in Island coming in an day after like start arrangement the this future ownership, the revenue not is, acquisition our situation the that our an I situation And in there and we'll one the revenue on is we immediately. XX% this to we from Puebla, quarter And revenue on point Rhode we and at is I'd look -- you second is close. to operating XXXX. late if we're distinction, agreed our When important own

-- good And jump a sales cycle example and from in it growing our really implementation we cycle an how gives by acquisition, X. is there that's and immediate of by have. So sometimes of a long profitability day us revenue

reasons of lines. and that's bullish on So this anxious proceed very, one along the to those very I'm opportunity

stay AMS So I everyone joined thank with tuned. We're inflection point. believe I excited future. who you to really that, I'd the And about today. us is all at an like hope

our first us please speak on any safe. for you before mid-May, and you We'll next Goodbye. -- stay direct if Be Thanks have directly call questions with us contact quarter contact and today. in your then, time well

Operator

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

You may now disconnect.

American Shared Hospital Services (AMS) 28 Mar 242023 Q4 Earnings call transcript