In This Article:
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Total Revenue: $7.1 million, a year-over-year increase of 27%.
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Gross Margin: 35% for the second quarter.
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Net Income: $3.6 million or $0.55 per diluted share, compared to a net loss of $111,000 or $0.02 per diluted share in the prior year.
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Cash and Cash Equivalents: $14.5 million at the end of the second quarter.
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Leasing Revenue: $3.9 million, a decrease of 19% from the previous year.
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Retail Segment Revenue: $3.16 million, an increase of 318% from the previous year.
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Proton Therapy Revenue: $2.42 million, a decrease of 5% due to cyclical volume changes.
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Gamma Knife Procedures Revenue: $2.74 million, a decrease of 9% due to expired contracts.
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Adjusted EBITDA: $2 million for the second quarter, compared to $1.9 million in the prior year.
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Operating Income: Breakeven for the second quarter, compared to an operating loss of $325,000 in the prior year.
Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AMS reported a strong second quarter with a 27% year-over-year increase in total revenue, reaching $7.1 million.
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The Rhode Island acquisition resulted in an immediate pretax gain of $4.9 million, showcasing effective capital allocation.
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AMS signed five lease extensions with domestic Gamma Knife customers, indicating strong customer relationships and business model validation.
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International operations showed momentum with increased volumes in Ecuador and Peru, and the opening of new centers in Mexico.
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AMS maintains a robust balance sheet with over $14.5 million in cash, providing financial flexibility for future opportunities.
Negative Points
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Revenue from the leasing segment decreased by 19% compared to the previous year, indicating challenges in this area.
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Proton therapy system revenue in Florida decreased by 5% due to cyclical volume changes, impacting overall performance.
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Gross margin decreased by 2% due to the expansion of the retail segment, which has lower margin percentages.
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Operating income was breakeven due to additional costs related to the Rhode Island acquisition and other new business opportunities.
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There are delays in the Certificate of Need application process for the proton beam radiation therapy center in Rhode Island, affecting project timelines.
Q & A Highlights
Q: As you continue to explore opportunities to grow the direct business, are you also pursuing additional opportunities on the leasing side? Will there be service interruptions at Sacred Heart due to equipment upgrades? A: We are focusing on both segments, leasing and retail. However, our recent activities, such as the Rhode Island acquisition and new centers in Mexico, show a stronger focus on the retail segment. Regarding Sacred Heart, I cannot discuss specifics about individual sites.