AMS - Earnings call transcript Q2 2024 | American Shared Hospital Services

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Operator

Good day, and welcome to the American Shared Hospital Services Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Kirin Smith, Investor Relations. Please go ahead.

Kirin Smith

Thank you, Dave, and thank you, everyone, for joining us today. earnings was XXXX the today Quarter closed. market Second press issued release after AMS'

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

the prospects turning Act forward-looking conference the remarks of various call Private expectations, make purposes remarks about call like note be statements may and statements. following to I Litigation future concerning management, Securities Before provisions would of for the harbor made constitute to under that Please for forward-looking XXXX. the company that over safe on plans this the Reform

Actual This results those XXXX, vary Meeting the from contained the on held XXXX, annual report statement assumes includes including filings conference for for report December discussed result The information a XXXX. to these those ended on no Annual Instructions] indicated company's may company's [Operator call. XX, statements this X-month XX, Shareholders quarterly year as company forward-looking March factors, Form obligation for update proxy definitive XX-Q period materially June the ended various Form XX, the in of SEC. important the the that in and the XX-K of the by the on was with

now Executive to With Chairman that, go I'd over Stachowiak, call like and turn please to Ray the ahead. CEO. Ray,

Raymond Stachowiak

of with quarter call. call begin you a Hiatt, us the review the for today Bob Chief I'll quarter opening then Thank earnings joining results. afternoon, Officer, for our you, everyone. conference Good second for to Thank Kirin. our second remarks financial over XXXX Financial turn some and

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

quarter report the pleased results. We're strong had Now excited about upcoming on to extremely we're a very that to and AMS year. quarterly the second

robust important quarter pretax. excess $X.X an past we assets Island reflects the of the across. we ways. our significant Island opportunities come This market Rhode closed worth continue the we show deploy balance a acquisition sheet are how strategically business an price value several gain for have million capital. that example nice to million. acquired early discussed was This net that often an is advancement of to from fair of I've million acquisition purchase of immediate initiatives this approximately strategic in May to assets market improvement showcased The acquire with Rhode that benefit extremely the we The and deployed to excellent we we're and of paid. fortunate capital a allocation value approximately in We and $X $X able just gain we clearly with great

to to continues increase by in strengthening Gamma led team domestic the lease pipeline. to equipment. our the business extensions these business our months financial XX focused We X in customers others our with with the XX model The working This from testament core strategy still to of agreements of utilization extended believe last flexibility. the on signing partnership customers Knife are and focus a

our completed Knife Our radiosurgery. state-of-the-art momentum. showing Ecuador only upgrade volumes non-invasive quarter, new following Gamma Ecuador equipment in second saw continued retail the international Gamma we also increase in the are Knife a to for In results ICON,

in the excellent in quarter. country, showed only Knife the in also Gamma Peru, Our Knife that results Gamma second

area. linear that IGRT, has treating accelerator, begun Just radiation most and This installed radiosurgery available therapy Puebla, the offering VMAT, Mexico, or last patients. our announced has we in advanced catchment LINAC, in week, IMRT center that we capabilities, our opened newly

Guadalajara, our center a Mexico. established July, early with a of the in facility And fourth we Knife Gamma joint for venture signing in international agreement

discussed. X in unique opportunities also previously We business invest continue to

May. reflects direct in services and These Rhode opportunities or last X ambitions the in radiation from centers Island, pipeline, XX% is a this our of expanded our patient interest majority for clearly these of year therapy are which new announced past late acquisition team strong the centers new first United first The and first This was which States. our the business, the retail for closed company.

Boston. is that have we of CON, Certificate the only the have radiation be radiation Rhode radiation beam build system applied And City proton Need, we Rhode in third between would that of is in This to The second Bristol, beam been for, New center center opportunity the center CON for therapy opportunity proton or therapy state York the Island. the a Island. granted and therapy

million after-tax retail which share $X.XX segment. quarter. million Island from quarter, we per over prior $X.X earned of growth revenue for of acquisition. our $X.X in in of followed $X.X includes an gain We reflects with in And major The total XX%, million, our increase mix increase quarter at a margin quarter, reporting year's is compared second year-over-year in Rhode strong or gross which This came solid the the approximately the the XX%. X second quarter and a change another with percentage

Our the acquisition of closing to costs. an Island operating to operating removal $XXX,XXX the XXXX, in of income second quarter primarily XXXX impaired reduced assets and of Rhode costs the the but the was $XXX,XXX for due related loss due additional to breakeven quarter second to of the compared

quarter ended roughly share. over sheet equal the million We balance cash, with $XX.X Our per to remains $X.XX strong. in second

$X.XX we our of quarter of million as line XXXX. million early outstanding the $X off credit had paid We third of XXXX, also XX, in June on which

resources to carefully continue additional streams. for We long-term revenue these leverage

the streams the the adds opportunities, business, business in Island new centers sales the our into Mexico. growth from to our to recent Peru expect volume look addition through we international cycle. and intricate As Rhode additional new acquisition of stronger Ecuador, Guadalajara in in the in X closing are Puebla, months, we and new of that moving capabilities from and treatment strong The opening coming center continued revenue long

that, With turn Bob Bob? the for to I'll call review. over financial our

Robert Hiatt

afternoon, everyone. Thank you, Ray, and good

million $X.X compared to quarter. $X.X million to in ago XX% year increased revenue quarter the Second

retail company's compared reflect segments quarter from XX, in second equipment to As of previously Island patient medical the quarter XX%. revenue our ended decrease refer quarter, from $XXX,XXX to services better XXX%. June sources. ago to XXXX was for $X.X due at compared the Rhode of increased increase Rental was to existing million This volumes XXXX, second million revenue retail company's leasing, ago we the segment, or $X.XX which in marking the $X.XX the a segment to of and million as discussed, increase our direct the for we was Revenue for now redefined an the locations. leasing acquisition year year our business quarter,

experience Peru revenues increased and capacity, center the promotion Additionally, the the due and volume, upgrade of to throughout the the added patient equipment in Ecuador improved of country.

X%, the cyclical for Second to quarter volume primarily proton in company's therapy in X,XXX therapy a of the to therapy proton XX% due fluctuations. in the decrease fractions revenue million, to compared X,XXX changes. fractions system $X.XX second cyclical a were continued XXXX, proton second Total decrease was quarter of normal quarter Florida due

a put to Gamma XXX revenue to revenues X a for ago. To perspective, volume due the quarter nearly Knife decrease compared XXX locations. expired high Knife our to X% Gamma contracts, million from in $X.XX quarter in procedures year international in Total decreased were was the total this second offset in second but by

X second quarter Gamma the by of that the contracts excluding customer for expired, increased XXXX. XX Knife XX% procedures However, or

decreased million to margin margin second to Gross X% The with $X.XX going million $X.XX forward. XXXX. of the its the of our second percentages quarter XXXX compared gross expansion percentages margin retail of lower reduce gross for of margin segment for quarter will

the to sublease year X% was million compared decreased by $X.X expiration quarter lease the costs Selling to company's quarter. and related ago corporate office administrative This XXXX of the million second by income. $X due offset in the for space, of to

the the last Interest borrowings in year. in rate to compared the increase and period interest XXXX $XXX,XXX The due period in to company's variable $XXX,XXX the debt. an was rate expense is on increase comparable

operating second the pursuing breakeven additional $XXX,XXX. of of new opportunities prior second Rhode higher of acquisition quarter and selling quarter, to of to $XXX,XXX. costs due related In deal The this other year quarter and for Island business a amount $XXX,XXX closing the with of incurred to costs the the XXXX were led the the expenses coupled loss income was

benefit income $X.X million from the same tax the last second taxes for of million year. related tax tax the The the $X.X income The $XX,XXX for expense. period to not compared do gain benefit $XX,XXX reduced income to to XXXX quarter of bargain gain and was purchase impact

respectively. American compared to the to Shared per was loss Services attributable of net income diluted $X.XX of $XXX,XXX a Net for per X,XXX,XXX Fully $X.X share of quarter purchase or period-over-period the or second quarter million diluted second The bargain XXXX share the diluted and XXXX Hospital for $X.XX and in of primarily XXXX, outstanding second was weighted due were quarter to increase gain. average the common shares XXXX. X,XXX,XXX

million second quarter compared non-GAAP of a the Adjusted the second of to EBITDA, $X was XXXX. quarter for financial for $X.X measure, million XXXX

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

XXX, of procedures of $X,XXX,XXX Total XXXX The of XXXX of proton a number $X,XXX,XXX the first international first $X,XXX,XXX for revenue for X increased X,XXX, XXXX. were to $X,XXX,XXX comparable the to therapy of in increase decrease period compared the first compared Proton compared the for XX% in half half Knife was Knife XXXX the XXXX. X% steady XXXX X% the increase Gamma Knife first in of X period first procedures therapy decreased of XXX of therapy an proton fractions Gamma the months to fractions revenue of half to to due XXXX, procedures. the to first of X% half compared months of for in XXXX. of to Gamma the comparable X,XXX

was was for for Net of measure, to $X.X Services XXXX X first compared months company's first non-GAAP X XXXX. Adjusted American in $X.X business of share fees to the a higher months $X.XX income $X.X share million compared income of associated the net for first $XX,XXX due X Hospital with financial $X.XX Island. the new for months the decrease This or million to was or opportunities, of X Rhode first Shared slight attributable million per per diluted EBITDA, months diluted XXXX. of acquisition the primarily including to XXXX

outstanding was XX, XXXX, compared at $X.XX or XXXX, at XX, per per December equity, XXXX. cash was share million XX, share subsidiaries, compared million June December and to XXXX. interest or in million XX, outstanding $XX.X cash to Shareholders' $XX.X noncontrolling excluding June $X.XX million $XX.X at At cash, equivalents $XX.X restricted

us concludes Dave, updating of you presentation. the the today. progress our up Thank ahead. back to part open joining forward to now turn quarters the we'd for our look to like in it and We call This on you for formal questions. you

Operator

Marin question Marla Zacks. [Operator from with Instructions] Our comes first

Marla Marin

one So question.

confirm just I So to wanted things. of a couple

additional there pursue side to anticipate to to you're opportunities at XQ to there the And that, business. you with Sacred you As Heart, the explore continuing on along be continue that should the once service XQ equipment direct interruptions opportunities and into leasing well? grow potentially will fall we the as will business, also begin that upgrade of

Raymond Stachowiak

appreciate Marla, for it. you, your Thank question. I

We leasing services the the that we the retail focusing both pursuing patients We're centers segment, operation up retail opening signing our and our the new where the segments, equipment, our from have we tell our directly the segment. of bill segments, or insurance opportunities you that centers the a in own majority our and patients center the think and can acquisition both patients' Mexico the Mexico more of Puebla, operate of in Island are the where focus control segment, and provide been to substantially I the and on Rhode we're own company. signing in our of business lease Guadalajara, that and but

that looking business segment So towards retail in we're favorably very model. our

Marla Marin

the of in And Sacred any downtime venue? terms at Heart

Raymond Stachowiak

discuss not any at liberty site. I'm to individual

Operator

next Our with from Eastwood Kamin Tony comes Partners. question

Tony Kamin

concluded second clarification, in Island, or of week acquisition the Rhode for May. of think, I first Just the

this just that a full X reported didn't that you quarter So months. correct? Is include

Raymond Stachowiak

is That correct.

Tony Kamin

Okay.

asking in terms And it's Rhode direct any something relation that great. proton very from guys that's also early, in projected I the So maybe this in your are but having beam of I'm if you specifically And yet, know it? then relationship, Island. early learning, to learning

the you last the certificate. said -- applied time You Has line or of the got that any from you call? for changed

Raymond Stachowiak

experience negative is for but the feedback have time we hearing CON a Oncology, who form to President CON. but The centers getting any for situation And such we of in on going X you're or is it and decades learning of to What have very it's been the learning, experienced the and really not don't we each like he's Mercurio, scheduling operating one Greg it. Radiation from we myself, to our hearing each -- process. but have in a continue and application, we've do here is more Senior today, learning, team, on line have Vice been that CON, call owning another, closer we're or the always Craig looking probably we unique, have the delays from such expect learn

we your And price bankruptcy very And a a books. assets centers And a learning process confident we've lot operating of you and you when So the and your wind acquisitions, recording value are, less are and process. of individuals of value the making here we you great curve. up say are we the on them and benefited from make some that got was than made purchase is acquisition, goodwill this times, assets. I'd these that experiencing it But successful. in owning we from and team

process paid $X.X cancer owning acquired assets $X.X those that a And $X is therapy after Here, a X the market million, see the of gain, million now centers just acquisition, $X and in million the operating the on whatever of good that tax. it's in opposite. just we fair we approximately, of state it's the about we remarkable. benefits We been able gain radiation have Island approximately. not that quarters. million And you'll have number with coming value $X about million, only But Rhode think I -- and really to here

Tony Kamin

projects long-time of going and I when shareholder much that was recall sort see momentum It's so quite can't different really time exciting on. the case. a a as to

light, changing the the that you my for Rhode to Are sort for want in question although Island don't -- of marketing So one in comment more final and centers? there. the slip marketing or doing

and question saying see the breadth my for a of news is, a the then to from release there's increase quote consideration. have Craig And continued last we opportunities in significant

Is color Our sort on sales remains pipeline that? extremely there further any additional strong give projects. can of with you

Raymond Stachowiak

Well, some than our -- is year. and and duties we're the eyes we've management our and we across it we the I'll our But opportunities regained. was took CEO, probably to Island. bit passed this the Peter Rhode a got keeping a the earlier little a team of by of when ears, eyes of ever and bigger, market ground opportunity there. We've on pursuing the a marketplace our had. of what and And of ears keeping And away close good close step kind say, back what's mean Gaccione, on we've strengthened this better these result exist responsibilities. I team we've it's out came to pipeline and people opportunities. And going

Operator

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

Raymond Stachowiak

acquisition. continued really Dave, AMS Rhode everyone Island believe who our you, the recent And point, not continued please thank you look to We today. in excited contact Thank meantime, as especially always, us our that Shared American following Thank and for on a you Services. future. We you in us do you have for your any updating is if questions We're interest critical inflection joined at directly. to hesitate Hospital the about forward progress.

Operator

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

You disconnect. may now

American Shared Hospital Services (AMS) 14 Aug 242024 Q2 Earnings call transcript