 COVID-19 Pandemic Had Significant Impact on Q2 Volumes SAN FRANCISCO, CA, Aug. 14, 2020 GLOBE NEWSWIRE -- via NEWMEDIAWIRE -- American Shared Hospital Services NYSE American: AMS the Company, a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, today announced financial results for the second quarter ended June 30, 2020.Second Quarter Financial Highlights The Company completed its acquisition of Gamma Knife Center Ecuador S. A. Total revenue in the second quarter was 3,991,000, a decline of 23.2 from the comparable period in 2019. Proton therapy revenue of 1,401,000 was consistent with the second quarter of 2019. Gamma Knife revenue of 2,590,000 declined 28.1 compared to the second quarter of 2019 due to the impact of the COVID-19 pandemic on volumes, as well as lower average reimbursement at the Companys retail sites. Total proton therapy fractions in the second quarter decreased 4.1 compared to the second quarter of 2019. The decrease for the second quarter resulted from the impact of the COVID-19 pandemic. Gamma Knife volumes for centers in operation decreased 8.9 from Gamma Knife volumes for those same centers during the same period of the prior year, also primarily as a result of the COVID-19 pandemic. Net loss in the second quarter was 483,000 compared to net income of 31,000 for the second quarter of 2019. The decrease in net income was due to lower Gamma Knife revenue, and higher expenses, including, but not limited to, the COVID-19 pandemic, the switch to a virtual annual meeting and transaction costs from the June acquisition of the Gamma Knife Center in Ecuador.Ray Stachowiak, Interim President and Chief Executive Officer, commented, In the second quarter, the COVID-19 pandemic impacted our financial results more than expected, with many patients delaying their treatments during the early months of this unprecedented health crisis. Lower volumes for both proton beam therapy and Gamma Knife procedures, as well as lower total reimbursement for Gamma Knife procedures, combined with a high level of fixed costs, reduced our gross margin. This was further negatively impacted by other pandemic related costs, such as the expense required to switch to a virtual format for the annual meeting of shareholders. The Companys purchase of Gamma Knife Center, Ecuador S.A. in June also resulted in additional expenses related to the costs of completing the acquisition. As a result of these economic issues and activities, AMS reported a loss for the second quarter.Volumes on both sides of our business began to pick up in early July, despite typical seasonal headwinds. PBRT volume in particular rebounded especially well during the month. However, with COVID-19 hot spots rearing up again around the U.S., we remain uncertain as to when volumes will return to a sustained normalcy. In the third quarter we expect to expense the remaining transaction costs related to our acquisition in Ecuador, where volumes have also been impacted by the virus. We remain on track to upgrade the Gamma Knife Perfexion to the Icon platform at the Lovelace Medical Center in September and continue to advance discussions with prospective partners to develop new PBRT, MRLINAC, Gamma Knife and LINAC projects, as weve previously disclosed, concluded Mr. Stachowiak.Financial Results for the Three Months Ended June 30, 2020For the three months ended June 30, 2020, revenues decreased 23.2 to 3,991,000 compared to revenues of 5,197,000 for the second quarter of 2019. The Company recorded no revenue from its IGRT equipment compared to 188,000 in the second quarter of 2019. The equipment was fully depreciated and sold in July, after expiration of the Companys contract.Second quarter revenue for the Companys proton therapy system installed at Orlando Health in Florida decreased 0.6 to 1,401,000 compared to revenue for the second quarter of 2019 of 1,409,000. Total proton therapy fractions in the second quarter were 1,351, a decrease of 4.1 compared to 1,409 proton therapy fractions in the second quarter of 2019.Revenue for the Companys Gamma Knife operations decreased 28.1 to 2,590,000 for the second quarter of 2020 compared to 3,600,000 for the second quarter of 2019. The decline was due to lower volumes as well as lower average reimbursement at the Companys retail sites, which was driven by a higher mix of Medicare patients. Gamma Knife procedures declined by 3.0 to 350 for the second quarter of 2020 from 361 in the same period of the prior year. Gamma Knife volumes for centers in operation decreased 8.9 from Gamma Knife volumes for those same centers during the same period of the prior year, due to the impact of the COVID-19 pandemic.Gross margin for the second quarter of 2020 decreased to 907,000, or 22.7 of revenue, compared to gross margin of 1,729,000, or 33.3 of revenue, for the second quarter of 2019. Net loss for the second quarter of 2020 was 483,000, or 0.08 per share. This compares to net income for the second quarter of 2019 of 31,000, or 0.01 per share. Fully diluted weighted average common shares outstanding were 6,077,000 and 5,906,000 for the second quarter of 2020 and 2019, respectively.Adjusted EBITDA, a non-GAAP financial measure, was 1,437,000 for the second quarter of 2020, compared to 2,465,000 for the second quarter of 2019. The decline was primarily due to the net income loss as well as lower depreciation and amortization due to the Companys IGRT equipment, which became fully depreciated in the fourth quarter of 2019.Financial Results for the Six Months Ended June 30, 2020For the six months ended June 30, 2020, revenue decreased 18.6 to 8,559,000 compared to revenue of 10,518,000 for the first six months of 2019. Gamma Knife revenue decreased 21.8 to 5,482,000 for the first half of 2020 compared to 7,011,000 for the first half of 2019. The number of Gamma Knife procedures in the first six months of 2020 was 726, a decrease of 1.4 compared to 736 Gamma Knife procedures in the comparable period of 2019. Proton therapy revenue increased 0.9 to 3,077,000 for the first half of 2020 compared to 3,051,000 for the first half of 2019. Total proton therapy fractions in the first six months of 2020 were 3,027, an increase of 2.4 compared to 2,955 proton therapy fractions in the comparable period of 2019.Net loss for the first six months of 2020 was 618,000, or 0.10 per share. This compares to net income for the first six months of 2019 of 301,000, or 0.05 per share. Adjusted EBITDA, a non-GAAP financial measure, was 3,259,000 for the first six months of 2020, compared to 5,175,000 for the first six months of 2019.Balance Sheet HighlightsAt June 30, 2020, cash, cash equivalents, and restricted cash was 4,409,000, compared to 1,779,000 at December 31, 2019. Shareholders equity at June 30, 2020 was 30,973,000, or 5.44 per outstanding share. This compares to shareholders equity at December 31, 2019 of 31,811,000, or 5.47 per outstanding share.Conference Call and Webcast InformationAMS has scheduled a conference call at 12:00 p.m. PDT 3:00 p.m. EDT today. To participate, please call 1 800 774-6070 at least 5 minutes prior to the start of the call and enter passcode number: 7610094. A simultaneous Webcast of the call may be accessed through the Companys website, or at for institutional investors. A replay of the call will be available at the following link through August 28, 2020: Passcode: 49891409.About American Shared Hospital Services NYSE American: AMSAmerican Shared Hospital Services provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. AMS is a world leader in providing Gamma Knife radiosurgery equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations, and trigeminal neuralgia facial pain. The Company also offers proton therapy, and the latest IGRT, IMRT and MRLINAC systems. For more information, please visit: Disclosure The outbreak of the novel coronavirus COVID-19, is now a pandemic as declared by the World Health Organization and has led to adverse impacts on the U.S. and global economies and will likely continue to impact business activity, including the Companys. The pandemic has impacted and could further impact the Companys operations and the operations of its customers as a result of quarantines, facility closures, and travel and logistics restrictions. While the disruption caused by the pandemic is currently expected to be temporary, there is uncertainty regarding its duration. Therefore, while the COVID-19 pandemic has impacted the Companys results of operations, financial position, and liquidity, the duration and intensity of the impact of the COVID-19 pandemic and resulting disruption to the Companys operations is uncertain. The Company will continue to monitor the situation closely and assess the impact on its operations and financial results for the remainder of the year.In July 2019, the Centers for Medicare and Medicaid Services CMS announced a proposed new mandatory payment model for radiation oncology services intended to test an episodic payment structure across certain radiation therapy providers and suppliers. CMS projects that approximately 40 of radiation oncology providers, selected randomly by geographic area, will be included in the model and approximately 60 will continue to receive reimbursement based on fee-for-service methodology. The proposed payment model would significantly alter CMS payment methodology for radiation oncology services. 