American Shared Hospital Services (AMS) stock prices surged by 30.51% as of market close on May 5th, 2021, bringing the price per share up to USD$3.55. Subsequent pre-market fluctuations saw the stock further soar by 30.01%, bringing it up to USD$4.57.
Revenues for Q4 2020
In the company’s most recently disclosed financial reports, AMS reported USD$4.608 million being generated in total revenue over the course of Q4 2020. This represents a 3.7% decrease from reports from the same quarter of the prior year, which saw USD$5.786 in total revenue.
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Proton Therapy System Revenue
The company reported the generation of USD$1.403 in revenue from their proprietary proton therapy system. Located at Orlando Health in Florida, the Q4 2020 numbers were 5.6% lower than the numbers reported in Q4 2019. As a moderator of decreasing revenues, decreases in volumes were offset by the period-over-period growth of average reimbursements. Total proton therapy fractions were down 25% as compared to the fourth quarter of 2019, with the period-over-period decrease resulting from the effects of the onset of the COVID pandemic in conjunction with downtime for maintenance.
Gamma Knife Operations Revenue
AMS’s Gamma Knife operations reported revenues of USD$3.205 for the fourth quarter of 2020, representing a 0.8% decrease from the same period of the prior year. With period-over-period decline being attributable to lower volumes across stores, the damage incurred was offset of the acquisition of GKCE by AMS. Gamma Knife procedures were up to 427 in Q4 2020, representing a 3.1% increase in the 414 reported for the same quarter of the previous year, thanks to the GKCE acquisition. Gamma Knife volumes for operating centers in Q4 2020 were down 7.8% compared to Q4 2019.
Increasing Costs and Falling Margins
Because of the attritional effects of the ongoing global Covid-19 pandemic, AMS reported gross margins of USD$1.027 million for Q4 2020, down from the USD$1.441 million reported for Q4 2019. Administrative costs were reported at USD$1.052 million for Q4 2020, up 22.5% from the USD$859,000 reported in Q4 2019. The increase in costs is primarily due to tax and audit expenses increasing, which, in turn, were a result of the GKCE acquisition, stock-based compensation, and software-related expenses.
Operating Loss During the Pandemic
An operating loss of USD$8.543 million was reported for Q4 2020, compared to an operating profit of USD$279,000 reported for Q4 2019. This massive difference is attributable to a pre-tax write-down of impaired assets that totaled USD$8.264 million, accounting for the company’s deposits for two PBRT units, six Gamma Knife units, and associated removal costs. The remaining operating loss of USD$279,000 was primarily due to the ongoing lagging effects of the global pandemic.
Future Outlook for AMS
Despite the proliferation of the devastating ensuing since the onset of the global pandemic, AMS has largely been able to avoid the economic catastrophe. With the world hurtling towards universal immunizations, AMS is primed to capitalize on the post-pandemic market. With a consolidation and expansion of their market footprint, current and potential investors are hopeful for significant and sustained returns in shareholder value.
