American Shared Hospital Services Reports Strong Second Quarter 2024 Financial Results

Core Insights - American Shared Hospital Services reported a 27% year-over-year increase in revenue for Q2 2024, reaching $7.1 million, primarily driven by the acquisition of three Rhode Island radiation therapy facilities [2][3][5]. Financial Performance - Total revenue for Q2 2024 was $7,056,000, up from $5,568,000 in Q2 2023, with a significant contribution of $1.9 million from the Rhode Island acquisition [2][5]. - Proton beam radiation therapy revenue decreased by 5% to $2,420,000, while Gamma Knife revenue decreased by 9% to $2,744,000 due to lower average reimbursement rates [2][6]. - The gross margin for Q2 2024 was $2,468,000, representing 35% of revenue, down from 45% in the previous year [7]. - Net income for Q2 2024 was $3,602,000, or $0.55 per diluted share, compared to a net loss of $111,000, or $0.02 per diluted share, in Q2 2023 [9][10]. Operational Highlights - The company signed a joint venture agreement for a Gamma Knife facility in Guadalajara, Mexico, marking its fourth international center [2][3]. - The new facility in Puebla, Mexico has begun treating patients, expected to contribute positively to future revenues [2][3]. Strategic Developments - The acquisition of the Rhode Island facilities resulted in a bargain purchase gain of $3.7 million, significantly impacting net income [3][9]. - The company continues to see growth in international patient volumes, particularly in Ecuador and Peru, where it operates the only Gamma Knife facilities [3][4]. Balance Sheet and Cash Flow - As of June 30, 2024, cash and cash equivalents were $14,486,000, an increase from $13,808,000 at the end of 2023 [13][21]. - Shareholders' equity increased to $26,542,000, or $4.17 per share, compared to $22,624,000, or $3.59 per share, at the end of 2023 [13][21].