American Shared Hospital Services(AMS) - 2021 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue increased by 12% year-over-year to $4.476 million in Q2 2021 compared to $3.991 million in Q2 2020 [10][14] - Net income rose to $157,000 in Q2 2021 from a net loss of $483,000 in Q2 2020, marking a significant turnaround [7][16] - Gross margin improved to 35.9% of revenue, up from 22.7% in the same quarter last year, with gross margin dollars increasing by 77% to $1.607 million [11][15] Business Line Data and Key Metrics Changes - Revenue from the proton therapy system at Orlando Health increased by 10.6% to $1.549 million, despite a 17.9% decrease in total proton therapy fractions [10][14] - Gamma Knife revenue increased by 13% to $2.927 million, with procedures rising by 7.4% to 376 [10][15] - Selling and administrative costs decreased by 10% to $1.090 million, contributing to improved operating income of $352,000 compared to an operating loss of $570,000 in Q2 2020 [12][16] Market Data and Key Metrics Changes - The company reported a cash balance of $8.4 million at the end of Q2 2021, up from $4.325 million at the end of 2020, indicating improved liquidity [17] - The establishment of a $22 million credit agreement with Fifth Third Bank, which includes a $7 million revolving line of credit, enhances financial flexibility for future projects [8][9] Company Strategy and Development Direction - The company is focused on expanding its radiation therapy equipment offerings and has several projects in the pipeline, including upgrades at Gamma Knife Center Ecuador [13] - Management emphasized the importance of maintaining a positive working capital position and leveraging financial resources for future business opportunities [9][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting a positive trend in net income and increased cash reserves for investment [30][31] - The ongoing impact of the pandemic on hospital systems has been acknowledged, but management remains optimistic about future growth opportunities in radiation therapy [27][30] Other Important Information - The company completed two Cobalt-60 reloads in the first half of 2021 and is planning additional reloads based on executed contract extensions [12][13] - Shareholders' equity at June 30, 2021, was $23.714 million, slightly up from $23.650 million at the end of 2020 [17] Q&A Session Summary Question: Progress on reducing high overhead office space - Management acknowledged ongoing efforts to reduce office space costs but noted challenges due to decreased demand for office space [20][23] Question: Leads on new machinery sales - Management confirmed that there have been new leads for machinery sales and are actively pursuing these opportunities [25] Question: Pursuit of proton beam placements - Management stated that they continue to explore opportunities for proton beam placements, although such opportunities have been limited due to the pandemic [27] Question: Plans for investor exposure and road shows - Management indicated a potential for increased investor exposure and expressed a positive outlook on the company's fortunes, which may attract more interest from retail investors [30][31]