American Shared Hospital Services’ Earnings Call Highlights Growth Amid Challenges

American Shared Hospital Services ((AMS)) has held its Q1 earnings call. Read on for the main highlights of the call.

In the recent earnings call, American Shared Hospital Services (AMS) presented a mixed sentiment, reflecting both positive growth initiatives and challenges in financial performance. The company reported significant revenue growth driven by strategic acquisitions and international expansion, yet faced hurdles in its Equipment Leasing segment, culminating in a net loss.

Revenue and Growth

The company experienced a 17% increase in total revenue, reaching $6.1 million in Q1 2025, compared to $5.2 million in Q1 2024. This growth was primarily fueled by the acquisition of the Rhode Island radiation therapy operations and the launch of operations in Puebla, Mexico.

Expansion and Strategic Initiatives

AMS has taken significant steps in its growth strategy by acquiring a 60% majority interest in three Rhode Island radiation therapy treatment centers and launching operations in Puebla, Mexico. The company anticipates further growth with the upcoming opening of a new center in Guadalajara, Mexico.

International Business Development

The company is expanding its international footprint with the establishment of the only Gamma Knife centers in Peru and Ecuador, alongside a new center in Puebla, Mexico. A new center in Guadalajara, Mexico is expected to open by the end of the year, further enhancing its international presence.

Decline in Equipment Leasing Segment

AMS reported a decline in its Equipment Leasing segment, with revenue dropping to $3 million from $4.3 million in Q1 2024. Additionally, Gamma Knife revenue decreased by 18% to $2.1 million for Q1 2025 compared to $2.6 million in Q1 2024.

Proton Beam Therapy Revenue Decline

Revenue from proton beam radiation therapy saw a significant decline of 38%, falling to $1.6 million in Q1 2025 compared to $2.7 million in Q1 2024, attributed to lower treatment volumes.

Loss in Operating Income and Net Income

The company reported an operating income loss of $1.3 million, a substantial increase from a loss of $85,000 in Q1 2024. The net loss attributable to the company was $625,000 or $0.10 per diluted share, compared to a net income of $119,000 or $0.02 per diluted share for Q1 2024.

Forward-Looking Guidance

Despite the challenges, AMS remains optimistic about future growth, particularly with the opening of new international centers. The company reported a 17% increase in revenue year-over-year, driven by a 224% increase in the Direct Patient Services segment. Although adjusted EBITDA for the quarter was down to $949,000 from $1.75 million the previous year, AMS is confident in its long-term growth strategy, supported by a robust balance sheet with $11.5 million in cash and cash equivalents.

In conclusion, American Shared Hospital Services’ earnings call highlighted a balanced sentiment with robust revenue growth from strategic acquisitions and international expansion, juxtaposed with challenges in certain segments leading to a net loss. The company’s forward-looking guidance remains positive, with expectations of continued growth driven by new international ventures.