American Shared Hospital Services (AMS) Q2 2024 earnings summary

Executive summary

• Revenue grew 27% year-over-year to $7.1 million in Q2 2024, driven by the Rhode Island acquisition and retail segment expansion.

• Net income was $3.6 million ($0.55–$0.56 per diluted share), reversing a prior-year loss, mainly due to a $3.7 million bargain purchase gain from the Rhode Island acquisition.

• Cash and equivalents increased to $14.5 million at June 30, 2024, up from $13.8 million at year-end 2023.

• The company operates leasing and retail segments, with retail now including three Rhode Island cancer centers acquired in May 2024.

• New international centers in Puebla and Guadalajara, Mexico, began operations, expanding the global footprint.

Financial highlights

• Q2 2024 revenue: $7,056,000, up from $5,568,000 in Q2 2023; six-month revenue up 17% to $12,272,000.

• Gross margin for Q2 2024 was $2,468,000 (35% of revenue), down from $2,518,000 (45%) due to retail segment expansion.

• Adjusted EBITDA for Q2 2024 was $2,010,000, up from $1,938,000 in Q2 2023.

• Shareholders' equity rose to $26.5 million ($4.17 per share) at June 30, 2024.

• Cash per share at quarter-end: $2.24.

Outlook and guidance

• Management expects continued growth from the expanded retail segment and new international centers, with additional projects in development.

• The company believes cash on hand, operations, and available credit are sufficient to meet obligations and fund expansion over the next 12 months.