American Shared Hospital Services Reports Record Projected Revenue Backlog of $210 million

American Shared Hospital Services (AMS) has reported a record projected revenue backlog of over $210 million, more than doubling following the acquisition of Rhode Island Radiation Therapy Cancer Centers in May 2024. The company remains on track with opening a new center in Puebla, Mexico.

In the first quarter of 2024, AMS reported total revenue of $5.2 million, representing a 5.9% increase from the same period in 2023. The total proton beam radiation therapy revenue increased by 14.5%, while Gamma Knife revenue decreased slightly by 1.7% due to the expiration of two customer agreements.

Gross margin for the first quarter of 2024 was $2.1 million, a 12.3% increase from the previous year. However, operating loss for the quarter was $85,000 compared to operating income of $98,000 in the first quarter of 2023, primarily due to higher SG&A costs associated with new business opportunities, including the acquisition of the Rhode Island centers.

Adjusted EBITDA for the first quarter of 2024 was $1,744,000, compared to $1,903,000 for the same period in 2023. The decrease was attributed to Rhode Island acquisition costs offset by higher gross margin.

The company’s CEO, Ray Stachowiak, expressed excitement over the acquisition of the Rhode Island centers and the significant growth in projected revenue backlog. He highlighted the company’s strong performance in operations and sales momentum.

AMS is scheduled to hold a conference call today, May 14th, at 4:30 pm ET to discuss its financial results. The company’s balance sheet remains strong, with cash and equivalents of $13.0 million at the end of the first quarter.

Overall, AMS is optimistic about its future growth prospects, with a focus on expanding its product portfolio and increasing opportunities for revenue generation. The company’s strategic partnerships and financial flexibility position it well for continued success in the cancer treatment industry.