AMERICAN SHARED HOSPITAL SERVICES (NYSE AMEX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, today announced financial results for the first quarter of 2011.
First Quarter Results
For the three months ended March 31, 2011, revenue increased 6.8% to $4,367,000 compared to $4,088,000 for the first quarter of 2010. Gross margin increased to 44.1% for the first quarter of 2011 compared to 41.6% for the first quarter of 2010. Operating income for the first quarter of 2011 increased 43.9% to $226,000 compared to $157,000 for the first quarter of 2010. Net income for the first quarter of 2011 rose to $21,000, or $0.00 per share. This compares to net income of $8,000, or $0.00 per share, for the first quarter of 2010.
The total number of procedures performed in AMS' Gamma Knife business during the first quarter of 2011 increased 12% compared to the first quarter of 2010, including a 19% increase in procedures performed on Gamma Knife® Perfexion TM systems.Selling and administrative expenses for the first quarter of 2011 increased 5.7% to $1,122,000 compared to $1,061,000 for the first quarter of 2010, in support of the Company's domestic and international growth initiatives. Cash flow, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA), was $2,047,000 for the first quarter of 2011 compared to $1,984,000 for the first quarter of 2010. At March 31, 2011, AMS reported cash, cash equivalents and certificates of deposit of $10,384,000 compared to $10,438,000 at December 31, 2010. Shareholders' equity at March 31, 2011 was $23,318,000, or $5.07 per outstanding share. This compares to shareholders' equity at December 31, 2010 of $23,044,000, or $5.01 per outstanding share. CEO Comments Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "The pace of revenue growth increased again in the first quarter of the new year, driven by especially strong gains in Perfexion procedure volume. This growth is the anticipated consequence of our strategy to upgrade many of our existing Gamma Knife sites to Gamma Knife Perfexion specifications. Most recently, we entered into upgrade contracts with Lehigh Valley Hospital in Allentown, Pennsylvania, the flagship hospital of the Lehigh Valley Health Network, and Lovelace Medical Center in Albuquerque, New Mexico, the flagship hospital of Lovelace Health System. Also during the quarter we announced multi-year contracts to supply a Perfexion system to Florence Nightingale Hospital Group in Istanbul, Turkey, and a Gamma Knife and linear accelerator system to Baskent University, Adana, Turkey. All of these devices are scheduled to go into service in the next several quarters.