American Shared Hospital Services (AMS) 14 May 242024 Q1 Earnings call transcript

Good afternoon, everyone, and welcome to the American Shield Hospital Services First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please also note, today's event is being recorded. At this time, I'd like to turn the floor over to Kirin Smith with PCG Advisory. Please go ahead.

Thank you, operator, and thank you, everyone, for joining us today. AMS' first quarter 2024 earnings press release was issued this afternoon after the market closed.

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

Form like the forward-looking call discussed remarks call. the definitive make XXXX. June that note for December may on turning ended result in call these SEC. statement update of on to the may expectations, the remarks I Before this in of made those conference filings over that the proxy company's forward-looking of factors, various was the safe on purposes future forward-looking concerning Annual would with the information following including materially and company's no a be to for statements. about plans XX-K XX, Please as that management, Private Shareholders the Litigation the Meeting indicated for obligation XXXX, This contained XX, Securities statements by prospects year conference various results and for the statements the includes XXXX. of Reform those from important report held The assumes company Act provisions vary the this company to under quarterly Actual constitute harbor

question over one Before where about one our time follow-up. to we the I Q&A provide turn like and call I'd to ask to policy, the Ray, remind everyone each participant

that, any Ray, to always, now take Ray As at CEO. Chairman questions to time. With Executive and ahead. please I'd to turn we'll be call Stachowiak, happy like off-line go the over additional

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

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

the passing Peter turn I to Gaccione. Chief acknowledge of results, to Officer, like our our unexpected Before I'd Executive

lives continue integrity to will and Peter's empowering he'll the by months, contribution the Peter's capitalize friends are addition President, changes organization taken become I've company's we Craig and on on Shield over be family, be Financial Director our his XX leadership will seamless position Western President as the Bob we announced Executive as of Ellis Curtis growth Peter's last colleagues, AMS legacy the happy saddened dearly wish shaped Officer. will Peter's forgotten. trajectory. not serve passing, continue Chief tremendous very and company's Marketing, passing, Chief Officer. several the operations deeply International management Ernie serve CEO style Operating on enthusiasm, my in to missed. role Hospital role in to Tagawa, American We Sales his Chairman memories. With we ensure and and Region, has Bates and continues President and Services to U.S.A. our Vice of Sales, of Hiatt to

more of of in in as the Need served the brings community radiation operation attainment our Certificates million We Advocacy years, over Pradhan treating of Abbott, products. Rhode establish Mercurio care radiation manufacturers to and Head promoted facilities. field patients deep network hospitals therapy oncology of million Mr. accessible. Mr. from a medical Mercurio technology, acquisition of general management Vice product experience venture brings Marketing. OEMs of strong in year relationships and $X the a positions Need with are Pradhan for Marketing Global Mercurio consultant the has radiation the Customer to to a business Greg of and and systems we revenue. Radiation development to making having equipment of served radiation role, advocacy and renowned management, experience pleased radiation XX global He major $XX health partnership has of providers, this Fortune also and very freestanding for to customer Island in provider to our hospitals, as of Mr. Sysmex Rhode the interest of appointment generating in like therapy ship XXX X,XXX with a year to XX% in Vice was President announce joint Certificate the Oncology. the three physicians, radiation He including Elekta, of therapy leaders a Philips. With XX radiation XX companies announced centers years therapy health Senior for five GE, strategizing across that centers in role, five President attainment in of built a nationally care oncology radiation Island, high-technology and use therapies in and and served years country, at Ranjit or marketing,

as we robust our execute to on can as have So you management additional senior to drive a see, continue we team momentum strategy. growth

had a about good excited extremely let's quarterly year. and report quarter, to to Now pleased go the on first AMS results. the that we're We're coming

and We show several in showing Notably, pipeline market has important the have nice to continued sales been is ways. our momentum team strong. extremely advancement sales improvement in

also operated to focus in equipment. with months. centers In resulted This our just focused develop over with signing in various oncology are extensions opportunities factors beam our the due our business States. The proton for of model the Gamma have of the breadth settings, expanded last radiation fact, domestic working strategy due doubled in and United of our team only team, expansion the well consideration. Knife continues This own has increasing with increase to industry, than include the and known therapy their financial integration radiation as four the XX on million. closed, to solutions to over the utilization as core strategic advanced closer revenue strengthening our business Rhode range XX customers to to our majority-owned a well equipment not backlog from to OEMs. Together, significantly led led more by of our these who lease of customers is our Island but acquisition our also projected to $XXX that we in These

business are testament this What's years continued Gamma in In determination to prior from have believe also up quarter, the Ecuador a our and We is is heating we the focus, have non-invasive financial first is significantly that to increasing ICON, extended impressive equipment the results Ecuador these a others partnership in radiosurgery. model up. completed state-of-the-art really upgrade execution. International which saw in our testament pipeline. and Gamma agreements flexibility. to the only a volumes new following for Knife Knife We

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

Puebla, to the in capabilities, track days. next the available accelerator, that begin treating Mexico. advanced opened in in radiation IGRT linear will center radiosurgery offering Mexico This international installing remains have on third and patients catchment VMAT, Puebla, therapy we're in XX area that Our newly most Mexico of Puebla,

previously to the Rhode opportunities business Island discussed. invest in We unique in three continue also

year's XX.X% tight first Gross quarter the radiation solid was announced our $X.X Rhode in over centers and of These of Island. year The reflecting started the margin our This our XX% increase of with the direct acquisition business, million, X.X%. direct a ambitions first reflects the services $X.X a the these pipeline, The million positive in quarter. reporting a, in week. the in centers, team $X.XX new fourth operating and deals company. We patient per share at $X.XX for which a increase, or in is interest costs was per We last quarter, United slight for the strong first margin first leverage. in from gross States. total prior closed year-over-year the for clearly the expanded first came control from quarter XX%. earned percentage quarter, three share in new a decrease revenue acquisition This therapy majority of are retail

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

on outstanding March also as off We of has early XXXX, second million the line credit XX, quarter had of our XXXX. paid $X million been which in $X.X

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

growth coming business. our Peru Island our center the opening of stronger into three in in volume look the we to new in Ecuador, we strong and from revenue acquisition new adds As additional closing expect recent The treatment months, the capabilities continued the streams Puebla. international center from of Rhode

the moving long pipeline our through that cycle. intricate addition through business to sales and are new opportunities, that In

the excited to are We over to appropriate turn for time. With call more Bob a share financial overview. I'll that, details at the

Ray, good you, Thank and afternoon, everyone.

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

an accounted XXXX, was and the and from revenue equipment and in Rental was direct ended first center or redefined in the business our the the of of promotion sources. for we the which year country, patient first medical for an quarter, leasing refer the for patient we the the company's to improved X.X%. of and of as quarter $X.X quarter, XX, compared leasing, for XXXX ago discussed, now compared services from of $XXX,XXX due revenue previously equipment quarter increase As added to first to $XXX,XXX revenues capacity the marking Peru $X.X the better experience segments million XX.X%. The Revenue increase to volume the upgrade increased Ecuador to retail segment March ago reflect million year our increase. throughout segment, company's which

high traction. average increase to compared system proton offset therapy decreased decrease increases the a and volume two XXXX, $X.X for reimbursement Total a XXX was in fractions for therapy in Gamma due this due of to total sites downtime the Knife First in cyclical perspective, our were in primarily a well revenue from quarter, were Knife two first ago. by an for XX.X% quarter was X,XXX particularly to compared revenue in the therapy first to other a a to due nearly fluctuation. Total of fractions Florida proton quarter locations, million, contracts XXX equipment of proton X,XXX decrease in To first quarter normal, million as to it in installation X.X% by the procedures upgraded company's quarter in in continued but Peru Gamma the year put first $X.X XX.X% at as despite decrease procedures the slightly expired Ecuador.

quarters interest XXXX Rhode the in compared the and to the rate benefit tax and XXXX administrative contracts year. two quarter. was the procedures to is period increased operating $XXX,XXX of loss for for the of the million that and to I'm Selling $XXX,XXX by XXXX. the our the offset common non-GAAP were period in a This change of $XX,XXX per Island of quarter income cash At attributable first income XX respectively. Adjusted of for of outstanding administrative first million to increased expired in quarter first and excluding outstanding to quarter million first first joining restricted million compared $X.X the compared margin of XXXX, quarter was $XXX,XXX million first open selling Gamma concludes financial has to at cash costs March Shareholders' net or same quarter subsidiaries, of share period XX, XXXX increase weighted compared X,XXX,XXX $X.XX pursuing Hospital expenses average December our Fully in for talked December XXXX or at XXXX of increase March of was share margin $X.X tax in for of of We -- due $X.XX for at the company's forward we'd cash, $XX.XX first the comparable year quarter first to shares as reflects year XXXX allowance. Net quarter presentation. the XX.X% last in income first debt, strong now XXXX, diluted share, excluding quarter to noncontrolling in in $X.X includes the formal by of XX.X% The for XXXX. Gross updating interest opportunities rate sorry, diluted the measure, customer compared or million $XXX,XXX cash X,XXX,XXX XX, XXXX of quarter was increases Services $XX.XX income The in million for the the in XX, income valuation XXXX. $XXX,XXX higher for and for compared the on in XXXX today. share, was $X.X for $XX.XX Shared due equity, the increased to XXXX the to $XX,XXX interest Knife the XXXX. per and XXXX, the $X.X back us outstanding quarter of quarter variable first of we've expense the $X.X borrowings $XX,XXX interest or on was increased compared about. Net was EBITDA, business and the invested turn to the $XX,XXX to compared operating million compared $X.XX for to with company's you look an XX, balance. The of or XXXX of $X.XX deferred equivalents American diluted of a to million associated call approximately X% first you last $XX.XX Ray which per However, expense to gross to activity. The per XXXX. This in quarter recent quarter new for first XXXX. part on questions. that Thank tax million first for primarily Operator, our to progress ahead. you like ago income

Zacks. Our Marin Instructions] M. question first today from [Operator comes from

associated is upgrade, obviously, downtime the need a the I'm we'll something the on of when So medical the that very that's to after even you're bit wondering strong results. little machineries to obviously, installed about. device? that staff train a of with upgrade site using you And talking customers be the upgrade about there When device. because you

Knife there commissioning the of is upgraded, go we've the downtime Knife. old Gamma de-install downtime. the them recently, is new When process Yes, Gamma new the install to Gamma is and XX and done one number days Knife credentialing about it through typically a of

days, plus say, So about XX-day that time XX downtime. there XX XX on to minus, is or line, I'll days

follow-up. it. And just my Got Okay.

any So the downtime? you're it is think on right kind about with to that Rhode would already board, is it? so the not to fair already working say been of the in and with has anticipating the that though and Island place, not Or the coming staff equipment, way facilities be equipment

a one No, ownership on X, last of of day be we're an the way And of first They from The the with expect the that in in they patients there on downtime. almost it agreement May seller acquisition. And Puebla, we about time, doesn't in patients are May day Wednesday, the the the and revenue in is profitability first but thinking correct does ownership. a licensing I take of time treating to venture involved is the treating treating no and quarter, our with of XX will X, and Puebla, were longer itself. the and we signed depending joint next of your the this Tuesday, of period in benefits acquisition were on. signed patients agreement the like installing hit doing commissioning an and get upon equipment, we they're our last signing contrast the X Mexico of revenue the our and that the preparation facility second Mexico, that an agreement like books that days, bump treated training revenue That's some week, and X, beginning start May for in in Wednesday, ago. of you this, patient years the the immediate

private comes is from from a Instructions] our investor. who [Operator And question next Aaron -- Granowitz

speak of time center you on to it the takes in proton center. for new and guys. Can you got in the question Certificates opportunities Island. new quarter radiation Need. length two Solid acquisition are meantime, the And the work growth have to I able the to new regarding a also Rhode site the beam of

if And kind that of can construction looks? the time what how us so is through from time walk and now kind you of in

therapy radiation just the opportunity therapy first therapy opportunities to of make confused sure Rhode to in That's is centers. you first are acquired. for everyone Rhode these to Island, the sometimes want been opportunities I three pursuing That's radiation question. Island. Thank we've the a asking like get three don't the three centers it. I in clarify, radiation very acquisition three centers, I'd good we that one want three understands, the And

into is which the facility lease radiation really The a the to REIT. targeted community. open second interested opportunity a is not therapy we I'll Bristol, we're up, would center, build from and and facility fourth Island underserved would ground facility therapy from side the in to basically, radiation owning But probably Rhode is in and which an on center go of the say, own we operate in That that facility. east Rhode Island, the

have say. we'll will near on CON sure to expect the -- I'm be sometime received, hearing I'll We that that's in very and just future, required a well the

The to I'm that on to it to Bristol about opportunity say that out. will some the facility, third and XX-plus comment going that months patient take facility, time facility the at install revenue on first equipment. build the the be being treated and could that

opportunity. the on So let along me that expectations line just set

The even third has time and it. with a opportunity line longer final associated

beam we and We Island. that in Rhode operate have center to own therapy CON applied would proton a operate for radiation

ready that even of we There up if is scheduling the beam first construction of CON for for estimate the Rhode before even the yet that beam. The that acquisition, We hearing proton scheduled, vault it sometimes patient been CON yet to targeted project. by design. for site Health the years two, The we're is hearing the have in have that is Department CON center awaiting a in not three take the Island I has place, time disclose. could very we're is not a longer. aggressive a for once would a site that we're construction complex fairly to that so proton line treated,

we've time being had So it's time. And out. Florida. good Orlando, in even have patient. We've further we But well currently excellent relationship that line all proton an in our take is been that worth things experience -- beam

helpful That's color. Okay. some

than it press Mexico more full a in in -- be previously get expected new of of the location, guided you next an days. a will take XX in does release, As I terms into to can first longer such the a understand or the the can Is treated less Puebla, is how in believe idea if capacity facility, you patient follow-up guys regarding And give ramp-up that help terms time also on? goes of as of long the startup. you

at the control. licensing, about do disappointed that we expedite bit for And And you're want It say that I'm that when the you're frankly. I for talked Aaron? the the for gotten quite capacity, to have I much our -- time what the disappointed, things just center. to part, most understand Puebla. not full start-up has for hasn't line meaning construction at was services you are tried as of concept, the environment, We by that, regulatory a it to The got initiation that what team the about credentialing, I full as capacity done.

if mean, nonstop of we the I the line first view capacity capacity, patients Well, as arc can and kind of of what's -- kind of at use and full along? maybe machine machine we running that? of time XXX% time first treated patient the only XX% How the arc the of it's goes treated, there's so the of

be to gradual, utilization at more equipment fixed. very to would the be you structure our I but better the situation profitable. And the we And to don't full up. the because in capacity, continuous the full we reach line, is operate never have bottom. full need to that obviously Most capacity expect falls almost everything cost wanted of the ramp-up time, its the and bottom down ramping capacity

that increase we to time. So all strive the capacity

and Stachowiak for I'm floor Ray time, gentlemen, to comments. at back to over this showing the additional no questions, I'd closing And like turn ladies

questions continued the We're Services. a your backlog to you not at our directly. Thank great who Hospital you, in and thank We And you continued inflection joined forward our us do for our about Shared in us updating excited American on critical nearly everyone, AMS interest please hesitate especially doubled clearly and if meantime, as contact Have revenue look to a day. point we projected any believe have that Jamie, year-over-year. today. you, progress. Thank future you

gentlemen, and thank conclude with presentation. for Ladies call and we'll that, joining. you today's conference We

You may now disconnect your lines.