American Shared Hospital Services

Welcome to the American Shared Hospital Services second quarter 2022 earnings 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 touch-tone phone. To withdraw from the question queue, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Stephanie Prince of PCG Advisory. Please go ahead.

Thank you, Sarah, 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 that various remarks that may be made on this conference call about future expectations, plans, and prospects for the company are 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 quarterly report on Form 10-Q for the three-month period ended March 31, 2022. The annual report on Form 10-K for the year ended December 31, 2021, and the definitive proxy statement for the annual meeting of shareholders that was held on June 21, 2022. 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, and good morning, everyone, and to our friends on the East Coast, good afternoon. Thanks for joining us today for our second quarter 2022 earnings conference call. I'll begin with some opening remarks and then turn the call over to Alexis Wallace, our Chief Accounting Officer, for a financial review. Craig Tagawa, our President, COO, and CFO of will then provide an operational review of the results. Following the prepared remarks, we'll open the call for your questions. AMF had a very good second quarter. We reported $5 million in revenue, 12.5% higher than last year, and the highest revenue since the third quarter 2019, three years ago. Net income, reached half a million dollars, the highest it's been since the fourth quarter of 2017, over four years ago. Craig and Alexis will go into more detail in a few minutes. We've been making great sequential progress too, building on the previous quarter's results for four consecutive quarters now. In the third quarter of 2021, we had net income of 33,000 or one cent per share. In the fourth quarter of 2021, we had net income of 219,000 or four cents per share. In the first quarter 2022, we had 269,000 net income or four cents per share. And now in the second quarter, we've almost doubled that to 497,008 cents per diluted share. These results were driven by the post-COVID rebound in volumes, higher average reimbursement for both proton beam radiation therapy and gamma knife, and almost as important, improvements in our operating structure. These have included the strengthening of our balance sheet, the refinancing of our debt at lower interest rates, and reducing our costs at all levels where possible, including the downsizing of our corporate office. Our team has worked hard to accomplish these goals, which largely took place during the pandemic when volumes for our cancer treatments were low. which magnified our high fixed cost structure. We've been expanding our radiation therapy product offerings, and we're now poised to increase our investment in sales and marketing initiatives to drive future growth. Our commitment is highlighted by the recent hiring of AMS's new head of sales, Tim Keel, a seasoned executive in our industry that both Craig and I have known for many years. Tim has deep experience and strong industry relationships, and we have confidence in his ability to increase AMS's sales momentum. Our improved results have added to our cash balances, and we ended the second quarter with $12 million in cash. or approximately $1.91 per share, based on 6.3 million fully diluted shares at June 30, 2022. This compares to our shareholders' equity, excluding the non-controlling interest in subsidiaries, which was $20.8 million, or $3.32 per diluted share. also at June 30th, 2022. With the strong foundation we've built, the increasing investment in sales and marketing, and our significant resources to partner on deals, like the joint venture we're working to open in Pueblo, Mexico in early 2023, we believe that AMS is well positioned for sustained growth, and profitability. I'll now turn the call over to Alexis for the second quarter financial review. Alexis.