American Shared Hospital Services(AMS) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue increased by 11% year-over-year to $4.8 million, which is approximately 3% higher than the previous quarter's revenue of $4.7 million [5][9] - Net income for Q1 2022 was $269,000 or $0.04 per diluted share, compared to $29,000 or $0.00 per diluted share in Q1 2021 [6][11] - Adjusted EBITDA increased by 20.1% to $1,922,000 for Q1 2022 compared to $1,600,000 in Q1 2021 [11] Business Line Data and Key Metrics Changes - Revenue from the proton therapy system increased by 33.2% to $2,039,000 in Q1 2022 compared to $1,531,000 in Q1 2021, with total proton therapy fractions rising by 32.3% to 1,628 [9][13] - Revenue from Gamma Knife operations decreased by 2.9% to $2,808,000 in Q1 2022, with procedures down by 7.3% to 329 [9][14] Market Data and Key Metrics Changes - The company announced a new international location in Puebla, Mexico, which is expected to start operations in early 2023, pending regulatory approvals [6][7] - The current ratio increased to 3.2 times compared to 1.6 times at March 31, 2021, indicating improved liquidity [15] Company Strategy and Development Direction - The company is expanding its sales team and product offerings, including linear accelerators and MR/LINACs, to enhance its market presence and meet client needs [7][28] - The management is actively pursuing more proton beam business, leveraging relationships and financial resources to support healthcare systems in acquiring advanced cancer treatment technologies [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth potential, citing a strong base for future profitability and the ability to leverage new business opportunities as the pandemic wanes [6][30] - The technology for proton beam therapy remains relevant and desirable among healthcare systems, with management indicating a commitment to pursue this market aggressively [20][21] Other Important Information - Selling and administrative costs increased by 21.7% to $1,319,000 due to higher legal fees associated with new business opportunities [10][15] - Interest expense decreased by 43.1% to $148,000, reflecting the benefits of a debt refinancing completed in April 2021 [10][15] Q&A Session Summary Question: Proton beam therapy results and future placements - The management confirmed that the technology remains relevant and they are ramping up efforts to pursue more proton beam business, supported by an expanded sales team and financial resources [20][21] Question: Client satisfaction with current proton beam - Management indicated that the current client is very satisfied and would serve as a good reference for future business [22][23] Question: Manufacturer collaboration for proton beam systems - Management stated they are open to working with various manufacturers and are not limited to one supplier, which enhances their market opportunities [25][26] Question: Expanded product offerings and impact - Management detailed the expansion of their product line to include various radiation therapy equipment, which is expected to create new business opportunities, exemplified by the joint venture in Puebla, Mexico [28][29]