American Shared Hospital Services (AMS) Q4 2024 earnings summary

Executive summary

• Leadership transition with Gary Delanois appointed CEO, focusing on strategic growth and operational excellence, while Ray Stachowiak remains Executive Chairman.

• FY 2024 revenue grew 32.9% to $28.34 million, driven by Rhode Island acquisition, expansion of direct patient services, and international development.

• Direct patient services revenue surged 253.4% year-over-year, reflecting the shift toward direct care and new facility openings.

• Shift from equipment leasing to a patient-centric service model, with new facilities in Mexico and expanded U.S. footprint.

• Net income attributable to shareholders increased 258% to $2.2 million ($0.33 per diluted share) for 2024, mainly due to a bargain purchase gain from the Rhode Island acquisition.

Financial highlights

• Fiscal Year 2024 revenue rose 32.9% to $28.34 million year-over-year.

• Adjusted EBITDA for 2024 was $8.9 million, up 8.9% year-over-year; $1.38 per share.

• Q4 2024 revenue up 59.2% year-over-year to $9.1 million; adjusted EBITDA up 29% to $3.5 million.

• Q4 2024 net loss of $1.3 million ($0.20 per share) due to asset impairment and removal costs.

• FY 2024 gross margin was $9.19 million, slightly down from $9.34 million in FY 2023 due to higher costs in direct patient services.

Outlook and guidance

• Anticipates continued growth from international centers in Mexico, Peru, and Ecuador, and further expansion in Rhode Island.

• Expects increased treatment volumes and physician engagement as staffing at new centers is completed.

• Management expects continued growth through expansion of direct patient care services and new facility openings, supported by a strong business development pipeline.

• Focus remains on operational efficiencies, technology investment, and expanding health system partnerships for sustained profitability.

• Confident in long-term revenue and profitability growth, supported by new business segments and strategic initiatives.