American Shared Hospital Services(US:AMS)2025-11-14 18:04Revenue and Financial Performance - The Company recognized leasing revenue of approximately $3,137,000 and $9,699,000 for the three and nine-month periods ended September 30, 2025, compared to $3,312,000 and $11,464,000 for the same periods in the prior year[99]. - Direct patient services revenues for the three and nine-month periods ended September 30, 2025, were approximately $4,034,000 and $10,655,000, compared to $3,687,000 and $7,807,000 for the same periods in the prior year[102]. - Revenues for Q3 2025 increased by $172,000 to $7,171,000 compared to $6,999,000 in Q3 2024, and for the nine-month period, revenues increased by $1,083,000 to $20,354,000 compared to $19,271,000 in the prior year[111]. - Direct patient services revenue increased by $347,000 to $4,034,000 for Q3 2025, and by $2,848,000 to $10,655,000 for the nine-month period, driven by the RI Companies acquisition and the Puebla facility[111]. - Radiation therapy revenues from the RI Companies and Puebla facility totaled $2,918,000 for Q3 2025 and $7,832,000 for the nine-month period, compared to $2,862,000 and $4,754,000 in the prior year[112]. - PBRT system revenues decreased by $189,000 to $2,127,000 for Q3 2025 and by $1,695,000 to $5,691,000 for the nine-month period, attributed to lower volumes[113]. - Gamma Knife revenue increased by $305,000 to $2,126,000 for Q3 2025 but decreased by $300,000 to $6,831,000 for the nine-month period, reflecting mixed performance across segments[115]. Costs and Expenses - Total costs of revenue decreased by $44,000 to $5,585,000 for Q3 2025 but increased by $2,906,000 to $16,196,000 for the nine-month period[117]. - Selling and administrative expenses decreased by $385,000 to $1,538,000 for Q3 2025 and by $606,000 to $5,092,000 for the nine-month period, primarily due to lower legal costs[121]. - Interest expense increased by $56,000 to $392,000 for Q3 2025 and by $183,000 to $1,253,000 for the nine-month period, driven by increased borrowings[123]. Assets and Liabilities - Accounts receivable balances under ASC 606 at September 30, 2025, were $7,981,000, compared to $5,357,000 at September 30, 2024[102]. - The company had cash and cash equivalents of $5,345,000 as of September 30, 2025, down from $11,275,000 at December 31, 2024, reflecting a decrease of $5,930,000 during the first nine months of 2025[129]. - Working capital decreased by $12,433,000 to $3,420,000 as of September 30, 2025, compared to $15,853,000 at December 31, 2024[130]. - Long-term debt was $16,933,000 as of September 30, 2025, down from $18,462,000 at December 31, 2024[135]. - The DFC Loan has an outstanding amount of $1,313,000 as of September 30, 2025, down from $1,806,000 at December 31, 2024[138]. Financing and Commitments - The Company has secured a total of $22,000,000 in credit facilities with Fifth Third Bank, which includes a $9,500,000 term loan and a $7,000,000 revolving line of credit[132]. - The Company received a limited waiver from Fifth Third regarding its failure to comply with the maximum funded debt to EBITDA ratio covenant as of June 30, 2025[137]. - The Company anticipates being able to secure financing for future projects, although there is no assurance that financing will be available on acceptable terms[130]. - Total commitments for purchasing and installing two Leksell Gamma Knife Esprit Systems and two Linear Accelerator systems amounted to $7,884,000 as of September 30, 2025[144]. - The Company has commitments to service and maintain its Gamma Knife, LINAC, and PBRT equipment totaling $6,870,000 as of September 30, 2025[146]. Related Party Transactions - Related party transactions totaled $1,521,000 for the three months ended September 30, 2025, compared to $694,000 for the same period in 2024[148]. Operational Overview - The Company acquired 60% of the equity interests of the RI Companies, which operate three radiation therapy facilities in Rhode Island, on May 7, 2024[93]. - The Company operates seven Gamma Knife systems and one PBRT system as of September 30, 2025, under leasing contracts with hospitals[92]. - The Company has stand-alone facilities in Lima, Peru, Guayaquil, Ecuador, and Puebla, Mexico, providing direct patient services[100]. - The Company’s PBRT system at Orlando Health operates under a revenue share contract within the leasing segment[98]. - The Company’s revenue sharing arrangements include a cost-sharing component, with operating costs recorded as other direct operating costs[99]. Reimbursement Rates - The Centers for Medicare and Medicaid established a 2025 reimbursement rate of approximately $7,645 for a Medicare Gamma Knife treatment, up from $7,420 in 2024[95]. - The approximate CMS reimbursement rates for PBRT treatments in 2025 are $578 for simple treatments and $1,276 for intermediate and complex treatments[95].