EX-99.1 2 f42512exv99w1.htm EXHIBIT 99.1 exv99w1
         
Exhibit 99.1
AMERICAN SHARED HOSPITAL SERVICES
REPORTS 2008 SECOND QUARTER RESULTS
San Francisco, CA, July 29, 2008 — AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, today announced financial results for the second quarter and first half of 2008.
Second Quarter Results
For the three months ended June 30, 2008, revenue increased 4% to $5,102,000 when compared to revenue of $4,910,000 for the second quarter of 2007, and increased 8% when compared to revenue of $4,725,000 for the first quarter of 2008. Net income for the second quarter of 2008 was $213,000, or $0.04 per diluted share. This compares to net income for the second quarter of 2007 of $280,000, or $0.06 per diluted share, and to net income for the first quarter of 2008 of $156,000, or $0.03 per diluted share.
“This sequential improvement in our operating performance speaks to the quality of our portfolio of radiosurgical and radiation therapy assets. It also shows how our strategy to use AMS’ creative financing solutions to make proton beam radiation therapy (PBRT) systems, Leksell Gamma Knife PerfexionTM systems, IGRT systems and other next-generation devices for radiation oncology delivery available and affordable to our clinical partners and their patients has put us on the path for long-term growth,” said Chairman and Chief Executive Officer Ernest A. Bates, M.D.
The increase in second quarter revenue reflected a 12% increase in same-unit volume versus prior year at the Company’s 18 Gamma Knife centers, as well as the contribution of the IGRT and related equipment and services AMS began supplying a customer in September 2007, recent upgrades to several existing Gamma Knife units, and the impact of the installation of three advanced Leksell Gamma Knife PerfexionTM systems that began treating patients in last year’s fourth quarter, this year’s first quarter, and this year’s second quarter, respectively. “Our newest customer, USC University Hospital in Los Angeles, began treating patients on its Perfexion system in July. This site will contribute to our results beginning in the third quarter,” Dr. Bates said.
Cash flow, as measured by earnings before interest, taxes, depreciation and amortization, increased to $2,657,000 for this year’s second quarter and $5,025,000 for this year’s first half, compared to EBITDA of $2,381,000 and $4,634,000 for the second quarter and first six months of 2007, respectively.
First Half Results
For the six months ended June 30, 2008, revenue increased to $9,827,000 compared to $9,659,000 for the first six months of 2007.
Net income for the first six months of 2008 was $369,000, or $0.07 per diluted share. This compares to net income for the first six months of 2007 of $505,000, or $0.10 per diluted share.
Balance Sheet Highlights
At June 30, 2008, AMS reported cash, cash equivalents, and short and long-term securities of $10,352,000. At June 30, 2007, AMS reported cash, cash equivalents, and short and long-term securities of $10,497,000. Shareholders’ equity at June 30, 2008 was $19,980,000, or $3.97 per outstanding share. This compares to shareholders’ equity at June 30, 2007 of $19,071,000, or $3.80 per outstanding share.
Earnings Conference Call
American Shared has scheduled a conference call at 1:00 p.m. PT (4:00 p.m. ET) today. To participate in the live call, dial (888) 895-5479 at least 5 minutes prior to the scheduled start time. A simultaneous WebCast of the call may be accessed through the Company’s website, www.ashs.com, or through CCBN, www.earnings.com (individual investors) or www.streetevents.com (institutional investors). A replay will be available for 30 days at these same internet addresses, or by calling (888) 843-8996, pass code 22335173.

 

 

About AMS
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 equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia (facial pain). The Company also offers the latest IGRT and IMRT systems, as well as its proprietary Operating Room for the 21st Century® concept. Through its preferred stock investment in Still River Systems, AMS also plans to complement these services with the Monarch 250TM proton beam radiation therapy (PBRT) system, which has not yet been approved by the FDA.
Safe Harbor Statement
This press release may be deemed to contain certain forward-looking statements with respect to the financial condition, results of operations and future plans of American Shared Hospital Services, which involve risks and uncertainties including, but not limited to, the risks of the Gamma Knife and radiation therapy businesses, the risks of developing The Operating Room for the 21st Century program, and the risks of investing in a development-stage company, Still River Systems, Inc., without a proven product. Further information on potential factors that could affect the financial condition, results of operations and future plans of American Shared Hospital Services is included in the filings of the Company with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 20, 2008.
     
Contacts:
  American Shared Hospital Services
 
  Ernest A. Bates, M. D., (415) 788-5300
 
  Chairman and Chief Executive Officer
 
  e.bates@ashs.com
 
    
 
  Berkman Associates
 
  Neil Berkman, (310) 826-5051
 
  President
 
  info@berkmanassociates.com

 

 

AMERICAN SHARED HOSPITAL SERVICES
PRESS RELEASE   August 29, 2008
Second Quarter 2008 Financial Results   Page 3
Selected Financial Data
(unaudited)
                                 
  Summary of Operations Data  
  Three Months Ended   Six Months Ended  
  June 30,   June 30,  
  2008   2007   2008   2007  
Medical services revenue
   $ 5,102,000   $ 4,910,000     $ 9,827,000     $ 9,659,000  
Costs of revenue
   2,759,000     2,464,000     5,415,000     4,983,000  
 
                        
Gross Margin
   2,343,000     2,446,000     4,412,000     4,676,000  
Selling & administrative expense
   1,129,000     1,209,000     2,236,000     2,370,000  
Interest expense
   627,000     470,000     1,195,000     937,000  
 
                        
Operating income
   587,000     767,000     981,000     1,369,000  
Interest & other income
   86,000      100,000     233,000     218,000  
Minority interest expense
     (255,000 )      (335,000 )      (491,000 )     (635,000 )
 
                        
Income before income taxes
   418,000     532,000     723,000     952,000  
Income tax expense
   205,000     252,000     354,000     447,000  
 
                        
Net income
   $ 213,000     $ 280,000     $ 369,000     $ 505,000  
 
                        
 
                
Earnings per common share
                
    Basic
   $ 0.04     $ 0.06     $ 0.07     $ 0.10  
 
                        
    Assuming dilution
   $ 0.04     $ 0.06     $ 0.07     $ 0.10  
 
                        
                 
  Balance Sheet Data
  June 30,
  2008   2007
Cash and cash equivalents
   $ 8,587,000     $ 5,012,000  
Securities-current maturities
   $ 1,765,000     $ 2,315,000  
Current assets
   $ 16,231,000   $ 12,799,000  
Securities-long term
   $ 0     $ 3,170,000  
Investment in preferred stock
   $ 2,617,000     $ 2,000,000  
Total assets
   $ 64,571,000   $ 53,775,000  
 
Current liabilities
   $ 14,397,000   $ 15,198,000  
Shareholders’ equity
   $ 19,980,000   $ 19,071,000