American Shared Hospital Services (AMS, Financial) filed Quarterly Report for the period ended 2012-09-30.
American Shared Hospital has a market cap of $13.4 million; its shares were traded at around $2.77 with a P/E ratio of 29 and P/S ratio of 0.6.
Total costs of revenue decreased by $4,148,000 and $3,984,000 to $2,541,000 and $7,518,000 for the three and nine month periods ended September 30, 2012 from $6,689,000 and $11,502,000 for the three and nine month periods ended September 30, 2011, respectively. Costs of revenue for the three and nine month periods ended September 30, 2011 includes cost of equipment sales of $4,140,000, which is specific to equipment sales revenue recorded in the third quarter of 2011. There is no cost of equipment sales for the same periods in 2012. Maintenance and supplies increased by $22,000 and $38,000 for the three and nine month periods ended September 30, 2012 compared to the same periods in the prior year, respectively. The variance for both the three and nine month periods was due to higher costs for maintenance and repairs not covered under maintenance contracts, partially offset by lower costs for maintenance contracts. The maintenance contract expenses is less because of lower negotiated maintenance contracts at several sites, partially offset by maintenance contracts that started when the warranty period ended for three Gamma Knife units. Depreciation and amortization decreased by $41,000 and increased by $78,000 for the three and nine month periods ended September 30, 2012 compared to the same periods in the prior year. The decrease for the third quarter was primarily due to two sites where the depreciable life was extended due to customer contract extensions. The increase for the nine month period is primarily because depreciation started on four new sites that began operation since the first quarter 2011, partially offset by a reduction in depreciation for three sites where depreciation was stopped because the remaining value of the equipment had reached its salvage value, and three sites where the depreciable life was extended due to customer contract extensions. Other direct operating costs increased by $11,000 and $18,000 for the three and nine month periods ended September 30, 2012 compared to the same periods in the prior year. For both the three and nine month periods, the increase is primarily due to higher operating costs in connection with the Company’s retail sites, partially offset by lower marketing costs.
Net income attributable to non-controlling interest decreased by $131,000 and $148,000 to $183,000 and $614,000 for the three and nine month periods ended September 30, 2012 from $314,000 and $762,000 for the three and nine month periods ended September 30, 2011. Non-controlling interest primarily represents the 19% interest of GK Financing owned by a third party, as well as non-controlling interests in subsidiaries of GK Financing owned by third parties that began operations in 2011. Variances in net income attributable to non-controlling interests represents the relative increase or decrease in profitability of GKF and these ventures.
The Company had net income of $9,000, or $0.00 per diluted share, and $33,000, or $0.01 per diluted share, for the three and nine month periods ended September 30, 2012, compared to net income of $220,000, or $0.05 per diluted share, and $262,000, or $0.06 per diluted share, in the same periods in the prior year, respectively. The decrease in net income for both the three and nine month periods was primarily due to revenue from equipment sales in the third quarter 2011 of $4,984,000, less cost of equipment sales of $4,140,000, and the related effect of this transaction on net income attributable to non-controlling interest and income tax expense. There is no equipment sales revenue in 2012.
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American Shared Hospital has a market cap of $13.4 million; its shares were traded at around $2.77 with a P/E ratio of 29 and P/S ratio of 0.6.
Highlight of Business Operations:
Medical services revenue increased by $72,000 and $186,000 to $4,236,000 and $12,923,000 for the three and nine month periods ended September 30, 2012 from $4,164,000 and $12,737,000 for the three and nine month periods ended September 30, 2011, respectively. The increases for both the three and nine month periods are primarily due to an increase in revenue from the Company’s radiation therapy sites, partially offset by a decrease in revenue from its Gamma Knife sites compared to the same periods in the prior year. The increase in radiation therapy revenue was due to a new contract that began operation in the fourth quarter 2011, and increased volume at its existing radiation therapy site. The decrease in Gamma Knife revenue for both the three and nine month periods compared to the same periods in the prior year was primarily due to lost revenue from one unit that was sold to the customer in the third quarter 2011, and one site where the contract ended in the second quarter 2012 at the end of its term. For the nine month period the revenue decrease was also partially due to a site that was out of service for one month for a cobalt reload during the first quarter 2012.Total costs of revenue decreased by $4,148,000 and $3,984,000 to $2,541,000 and $7,518,000 for the three and nine month periods ended September 30, 2012 from $6,689,000 and $11,502,000 for the three and nine month periods ended September 30, 2011, respectively. Costs of revenue for the three and nine month periods ended September 30, 2011 includes cost of equipment sales of $4,140,000, which is specific to equipment sales revenue recorded in the third quarter of 2011. There is no cost of equipment sales for the same periods in 2012. Maintenance and supplies increased by $22,000 and $38,000 for the three and nine month periods ended September 30, 2012 compared to the same periods in the prior year, respectively. The variance for both the three and nine month periods was due to higher costs for maintenance and repairs not covered under maintenance contracts, partially offset by lower costs for maintenance contracts. The maintenance contract expenses is less because of lower negotiated maintenance contracts at several sites, partially offset by maintenance contracts that started when the warranty period ended for three Gamma Knife units. Depreciation and amortization decreased by $41,000 and increased by $78,000 for the three and nine month periods ended September 30, 2012 compared to the same periods in the prior year. The decrease for the third quarter was primarily due to two sites where the depreciable life was extended due to customer contract extensions. The increase for the nine month period is primarily because depreciation started on four new sites that began operation since the first quarter 2011, partially offset by a reduction in depreciation for three sites where depreciation was stopped because the remaining value of the equipment had reached its salvage value, and three sites where the depreciable life was extended due to customer contract extensions. Other direct operating costs increased by $11,000 and $18,000 for the three and nine month periods ended September 30, 2012 compared to the same periods in the prior year. For both the three and nine month periods, the increase is primarily due to higher operating costs in connection with the Company’s retail sites, partially offset by lower marketing costs.
Net income attributable to non-controlling interest decreased by $131,000 and $148,000 to $183,000 and $614,000 for the three and nine month periods ended September 30, 2012 from $314,000 and $762,000 for the three and nine month periods ended September 30, 2011. Non-controlling interest primarily represents the 19% interest of GK Financing owned by a third party, as well as non-controlling interests in subsidiaries of GK Financing owned by third parties that began operations in 2011. Variances in net income attributable to non-controlling interests represents the relative increase or decrease in profitability of GKF and these ventures.
The Company had net income of $9,000, or $0.00 per diluted share, and $33,000, or $0.01 per diluted share, for the three and nine month periods ended September 30, 2012, compared to net income of $220,000, or $0.05 per diluted share, and $262,000, or $0.06 per diluted share, in the same periods in the prior year, respectively. The decrease in net income for both the three and nine month periods was primarily due to revenue from equipment sales in the third quarter 2011 of $4,984,000, less cost of equipment sales of $4,140,000, and the related effect of this transaction on net income attributable to non-controlling interest and income tax expense. There is no equipment sales revenue in 2012.
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