American Shared Hospital Services (AMS, Financial) filed Quarterly Report for the period ended 2009-03-31.
American Shared Hospital Services provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. AMS is the world leader in providing Gamma Knife radiosurgery services a non-invasive treatment for malignant and benign brain tumors vascular malformations and trigeminal neuralgia . The Company also offers the latest IGRT and IMRT systems as well as its proprietary Operating Room for the twenty first Century concept. Through its equity investment in Still River Systems AMS also plans to complement these services with the Clinatron-two hundred fifty proton beam radiation therapy system which has not yet been approved by the FDA. American Shared Hospital Services has a market cap of $10.9 million; its shares were traded at around $2.3 with a P/E ratio of 25.6 and P/S ratio of 0.6.
Total costs of revenue decreased by $86,000 to $2,570,000 for the three month period ended March 31, 2009 from $2,656,000 for the three month period ended March 31, 2008. Maintenance and supplies increased by $117,000 for the three month period ended March 31, 2009 compared to the same period in the prior year, primarily due to contract maintenance that started after the end of the warranty period on two Gamma Knife Perfexion units. Depreciation and amortization increased by $66,000 for the three month period ended March 31, 2009 compared to the same period in the prior year primarily due to additional equipment cost because of the Gamma Knife Perfexion upgrades at two sites during the past year and the new Perfexion system that began operation in the third quarter 2008. This more than offset a reduction in depreciation from the Gamma Knife unit that was sold to a customer at the end of the first quarter 2008. In addition, depreciation was stopped at one site because the Company is attempting to trade in the unit towards another Gamma Knife unit or place the unit at another site. The cost basis of the unit is in the range of the trade-in value we have received for similar equipment in the past. Other direct operating costs decreased by $269,000 for the three month period ended March 31, 2009 compared to the same period in the prior year primarily due to lower site specific marketing related costs and lower operating costs in connection with the Companys retail sites.
Interest and other income decreased by $113,000 to $34,000 for the three month period ended March 31, 2009 from $147,000 for the three month period ended March 31, 2008 primarily due a reduction in interest income as a result of lower interest rates available on invested cash balances. In addition, there was a gain on the sale of equipment of approximately $56,000 in the first quarter 2008.
The Company had a net loss of $94,000, or ($0.02) per diluted share, for the three month period ended March 31, 2009 compared to net income of $156,000, or $0.03 per diluted share, in the same period in the prior year. The decrease was primarily due to reduced medical services revenue, transaction costs and interest and other income, partially offset by lower costs of revenue, selling and administrative costs and interest expense.
The Company had cash and cash equivalents of $9,546,000 at March 31, 2009 compared to $10,286,000 at December 31, 2008. The Companys cash position decreased by $740,000 due to payments for the purchase of property and equipment of $539,000, principal payments on long term debt and capital leases of $1,903,000, distributions to minority owners of $114,000 and the repurchase of Company stock of $46,000. These decreases were partially offset by net cash from operating activities of $1,462,000 and advances on the Companys line of credit with a bank of $400,000.
The Company has a $2,617,000 preferred stock investment in Still River Systems, Inc., which is considered a long-term investment on the balance sheet and is recorded at cost. As of March 31, 2009, the Company also has $2,250,000 in deposits toward the purchase of three Monarch250 proton beam radiation therapy (PBRT) systems from Still River Systems, Inc. (Still River), a development-stage company. For the first two machines, the Company has a commitment to total deposits of $3,000,000 per machine until FDA approval is received, at which time the remaining balance is committed. The delivery dates for the first two machines are now anticipated to be in 2010. For the third machine, the Company has a commitment to total deposits of $500,000 until FDA approval is received, at which time the remaining balance is committed. The Company has entered into a partnership agreement with a radiation oncology physician group, which has contributed $50,000 towards the deposits on the third machine. The Still River PBRT system is not commercially proven and there is no assurance FDA approval will be received. The Company reviews the carrying value of these deposits for impairment on a quarterly basis, or as events or circumstances might indicate that the carrying value may not be recoverable.
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American Shared Hospital Services provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. AMS is the world leader in providing Gamma Knife radiosurgery services a non-invasive treatment for malignant and benign brain tumors vascular malformations and trigeminal neuralgia . The Company also offers the latest IGRT and IMRT systems as well as its proprietary Operating Room for the twenty first Century concept. Through its equity investment in Still River Systems AMS also plans to complement these services with the Clinatron-two hundred fifty proton beam radiation therapy system which has not yet been approved by the FDA. American Shared Hospital Services has a market cap of $10.9 million; its shares were traded at around $2.3 with a P/E ratio of 25.6 and P/S ratio of 0.6.
Highlight of Business Operations:
Medical services revenue decreased by $558,000 to $4,167,000 for the three month period ended March 31, 2009 from $4,725,000 for the three month period ended March 31, 2008. The decrease is primarily due to low volume at one of the Companys Gamma Knife sites and one Gamma Knife unit being out of service for an extended period of time during first quarter 2009 for an upgrade to the Perfexion unit. As a result, revenue from Gamma Knife operations decreased to $3,824,000 for the three month period ended March 31, 2009 compared to $4,361,000 for the three month period ended March 31, 2008. Revenue from the Companys radiation therapy contract decreased by $21,000 to $343,000 in the first quarter 2009 from $364,000 in the first quarter 2008.Total costs of revenue decreased by $86,000 to $2,570,000 for the three month period ended March 31, 2009 from $2,656,000 for the three month period ended March 31, 2008. Maintenance and supplies increased by $117,000 for the three month period ended March 31, 2009 compared to the same period in the prior year, primarily due to contract maintenance that started after the end of the warranty period on two Gamma Knife Perfexion units. Depreciation and amortization increased by $66,000 for the three month period ended March 31, 2009 compared to the same period in the prior year primarily due to additional equipment cost because of the Gamma Knife Perfexion upgrades at two sites during the past year and the new Perfexion system that began operation in the third quarter 2008. This more than offset a reduction in depreciation from the Gamma Knife unit that was sold to a customer at the end of the first quarter 2008. In addition, depreciation was stopped at one site because the Company is attempting to trade in the unit towards another Gamma Knife unit or place the unit at another site. The cost basis of the unit is in the range of the trade-in value we have received for similar equipment in the past. Other direct operating costs decreased by $269,000 for the three month period ended March 31, 2009 compared to the same period in the prior year primarily due to lower site specific marketing related costs and lower operating costs in connection with the Companys retail sites.
Interest and other income decreased by $113,000 to $34,000 for the three month period ended March 31, 2009 from $147,000 for the three month period ended March 31, 2008 primarily due a reduction in interest income as a result of lower interest rates available on invested cash balances. In addition, there was a gain on the sale of equipment of approximately $56,000 in the first quarter 2008.
The Company had a net loss of $94,000, or ($0.02) per diluted share, for the three month period ended March 31, 2009 compared to net income of $156,000, or $0.03 per diluted share, in the same period in the prior year. The decrease was primarily due to reduced medical services revenue, transaction costs and interest and other income, partially offset by lower costs of revenue, selling and administrative costs and interest expense.
The Company had cash and cash equivalents of $9,546,000 at March 31, 2009 compared to $10,286,000 at December 31, 2008. The Companys cash position decreased by $740,000 due to payments for the purchase of property and equipment of $539,000, principal payments on long term debt and capital leases of $1,903,000, distributions to minority owners of $114,000 and the repurchase of Company stock of $46,000. These decreases were partially offset by net cash from operating activities of $1,462,000 and advances on the Companys line of credit with a bank of $400,000.
The Company has a $2,617,000 preferred stock investment in Still River Systems, Inc., which is considered a long-term investment on the balance sheet and is recorded at cost. As of March 31, 2009, the Company also has $2,250,000 in deposits toward the purchase of three Monarch250 proton beam radiation therapy (PBRT) systems from Still River Systems, Inc. (Still River), a development-stage company. For the first two machines, the Company has a commitment to total deposits of $3,000,000 per machine until FDA approval is received, at which time the remaining balance is committed. The delivery dates for the first two machines are now anticipated to be in 2010. For the third machine, the Company has a commitment to total deposits of $500,000 until FDA approval is received, at which time the remaining balance is committed. The Company has entered into a partnership agreement with a radiation oncology physician group, which has contributed $50,000 towards the deposits on the third machine. The Still River PBRT system is not commercially proven and there is no assurance FDA approval will be received. The Company reviews the carrying value of these deposits for impairment on a quarterly basis, or as events or circumstances might indicate that the carrying value may not be recoverable.
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