American Shared Hospital Services

Good afternoon and welcome to the American Shared Hospital Services Second Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Stephanie Prince. Please go ahead.

Thank you, Andrea, and thank you to everyone joining us today. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. Please note the various remarks that may be made on this conference call about future expectations plans, and prospects for the company constitute forward-looking statements for the purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the company's filings with the SEC. This includes the company's annual report on Form 10-K for the year ended December 31, 2020, the quarterly report on Form 10-Q for the quarter ended March 31, 2021, and the definitive proxy statement for the annual meeting of shareholders that was held on June 25, 2021. The company assumes no obligation to update the information contained in this conference call. I would now like to turn the call over to Ray Stachowiak, CEO of AMS. Ray?

Thank you, Stephanie. Good afternoon, everyone. Thanks for joining us today for our second quarter 2021 earnings conference call. I'll begin with some opening remarks and then Craig Tagawa, our president, COO and CFO, will go through the business and operational results. Alexis Wallace, our Chief Accounting Officer, will then provide a financial review. Following that, myself, Craig, Alexis, and Ernie Bates, our Senior Vice President, Sales and Business Development and International Operations, will open the call for your questions. AMS had a good second quarter compared to the deepest Pandemic impacted quarter of last year. Total revenue increased 12% year over year. Net income increased to $157,000 in the second quarter after the net effect of the extinguishment of debt from $29,000 in this year's first quarter. This growth resulted from the revenue increase and decreases in depreciation expense, selling and administrative costs, and interest expense. Craig and Alexis will go into the details in a few moments. Our operating results have improved from the actions we've taken over the last several quarters. This includes the year-end balance sheet restructuring and the debt refinancing that we completed in April 2021. As a reminder, on April 13th, we announced the establishment of a bank relationship with Fifth Third Bank, N.A., the principal subsidiary of Fifth Third Bank Corp., which is a diversified bank holding company headquartered in Cincinnati, Ohio, with over $200 billion in assets. The $22 million credit agreement that we signed with them is a milestone in our company's history. It consists of three facilities, including two term loans that refinance the bulk of our equipment debt and added to our working capital. We also signed for a $7 million revolving line of credit, which will be used to increase our flexibility in negotiating future projects. Combined with our current cash balance of $8.4 million and the positive cash flow we expect to generate in the second half of the year, AMS has a war chest for future projects of over $15 million. The refinancing had several other benefits as well, including immediately lowering our cost of capital and swinging to a positive working capital position. We significantly reduced our principal payments by an estimated $5.9 million over the next 12 months. and will realize savings on interest expense and free up approximately $300,000 in previously restricted cash. These actions have changed the financial profile of the company. It's put AMS firmly on the path to reach sustained profitability. We now have substantial financial resources for future business opportunities with our expanded radiation therapy equipment offerings. I'll now turn the call over to Craig for the second quarter operational review. Craig?