American Shared Hospital Services · AMEX:AMS

American Shared Hospital Services — Shareholder Meeting (June 2019)

29 slides from American Shared Hospital Services's shareholder meeting presentation, Jun 21, 2019

  1. Slide 1: Annual Meeting of Shareholders

    Annual Meeting of Shareholders San Francisco, CA JUNE 21, 2019

  2. Slide 2: Safe Harbor Statement

    SAFE HARBOR STATEMENT This presentation may be deemed to contain certain forward-looking statements with respect to the financial condition, results of operations and future plans of American Shared Hospital Services (including statements regarding the expected continued growth in treatment volume o

  3. Slide 3: American Shared Hospital Services Agenda

    AMERICAN SHARED HOSPITAL SERVICES 1. Overview 2. Financial Presentation 3. Business Development American Shared Hospital Services 3

  4. Slide 4: Business Operations

    BUSINESS OPERATIONS CURRENT OPERATIONS Radiosurgery Linear Accelerator Based Radiation Therapy Proton Beam Radiation Therapy American Shared Hospital Services 4

  5. Slide 5: ASHS - Business Model

    ASHS - BUSINESS MODEL + Structured as a (alternative) leasing company + Innovative financing features not available from traditional finance companies + Proven profitable business model American Shared Hospital Services 5

  6. Slide 6: Operating profitability in 20 of last 21 years

    ASHS + Operating profitability in 20 of last 21 years American Shared Hospital Services 6

  7. Slide 7: ASHS - Business Model: Fee per use, revenue sharing

    ASHS – BUSINESS MODEL + Fee per use + Revenue sharing + Retail * No minimum volume guarantees American Shared Hospital Services 7

  8. Slide 8: Gamma Knife

    GAMMA KNIFE + Gold Standard for Cranial Radiosurgery + Typical Project Cost $3 - $4 million American Shared Hospital Services 8

  9. Slide 9: Proton Therapy

    PROTON THERAPY + Historically, centers were 3-5 treatment room centers costing $150 - $200 million or more + New single room systems by Mevion Medical Systems and others have reduced the average cost per treatment rooms to $30 - $40 million American Shared Hospital Services

  10. Slide 10: Radiosurgery Opportunities

    RADIOSURGERY OPPORTUNITIES + Smaller community hospitals + International + Upgrade/reload non-ASHS Gamma Knife units + Upgrade existing Perfexions to Icon 1 American Shared Hospital Services 0

  11. Slide 11: Financial Presentation

    FINANCIAL PRESENTATION 1 American Shared Hospital Services 1

  12. Slide 12: Gamma Knife Procedures 2013-2018

    GAMMA KNIFE PROCEDURES 2013-2018 Procedures 3000 2,482 2500 2,046 2000 1,947 1,922 1,631 1,460 1500 1000 500 0 2013 2014 2015 2016 2017 2018 American Shared Hospital Services 12

  13. Slide 13: Revenue Summary 2013-2018

    REVENUE SUMMARY 2013-2018 $ Millions $25 $17.6 $15.4 $16.5 $18.7 $19.6 $19.7 $20 0.5 0.6 1.1 1.5 0.4 2.1 4.1 0.9 5.0 $15 $10 $5 $0 2013 2014 2015 2016 2017 2018 GKF PBRT IGRT American Shared Hospital Services 13

  14. Slide 14: ASHS - Financial Results

    ASHS - FINANCIAL RESULTS 2018 2017 Revenue $19,714 $19,556 Operating Income $1,861 $2,413 Income Before Income $1,474 $820 Taxes Net Income Attributable $1,023 $1,923 to ASHS EPS $0.17 $0.33 EBITDA $10,051 $10,250 Note: All figures except “EPS” are in 000’s. American Shared Hospital Services 14

  15. Slide 15: Financial Results - EBITDA Reconciliation

    ASHS - FINANCIAL RESULTS – EBITDA RECONCILIATION 2018 2017 Net Income $1,023 $1,923 Plus: Income Tax Expense $451 ($1,103) (Benefit) Interest Expense $1,631 $1,927 Depreciation & $6,745 $6,601 Amortization Stock-Based $223 $323 Compensation Loss on Write-down $0 $579 Investment in Equity Securities

  16. Slide 16: Financial Results - First Quarter

    ASHS - FINANCIAL RESULTS - FIRST QUARTER 2019 2018 Revenue $5,321 $5,305 Operating Income $515 $795 Income Before Income $394 $540 Taxes Net Income Attributable $270 $390 to ASHS EPS $0.05 $0.07 EBITDA $2,710 $2,677 Note: All figures except “EPS” are in 000’s. American Shared Hospital Services 16

  17. Slide 17: First Quarter - EBITDA Reconciliation

    ASHS - FIRST QUARTER – EBITDA RECONCILIATION 2019 2018 Net Income $270 $390 Plus: Income Tax $124 $150 Expense Interest Expense $367 $425 Depreciation & $1,894 $1,657 Amortization Stock-Based $55 $55 Compensation Adjusted EBITDA $2,710 $2,677 American Shared Hospital Services 17

  18. Slide 18: ASHS - Common Stock

    ASHS - COMMON STOCK 3/31/19 3/31/18 Issued and 5,714,000 5,710,000 Outstanding Fully Diluted 5,886,000 5,855,000 (Including Outstanding Option & Stock Unit Awards) American Shared Hospital Services 18

  19. Slide 19: Balance Sheet Data - March 31, 2019

    ASHS - BALANCE SHEET DATA MARCH 31, 2019 Balance Per Share Issued & Outstanding Cash, cash $2,399,000 $0.42 equivalents, certificate of deposit Book Value $31,479,000 $5.51 American Shared Hospital Services 19

  20. Slide 20: Business Development

    BUSINESS DEVELOPMENT 2 American Shared Hospital Services 0

  21. Slide 21: ASHS Expansion Opportunities

    ASHS EXPANSION OPPORTUNITIES + Develop single and two room proton beam radiation therapy centers with major hospitals + MR Guided Linac + Community hospitals + International 2 American Shared Hospital Services 1

  22. Slide 22: United States PBRT Market Analysis

    ASHS - UNITED STATES PBRT MARKET ANALYSIS PBRT CAPTURE RATE 15% 2 30% 3 Number of radiation therapy patients 1,057,47 1,057,47 annually in the U.S.1 0 0 Percent of radiation therapy patients 15% 30% eligible for PBRT Number of potential PBRT patients 158,600 317,241 in the U.S. Potential PBRT room m

  23. Slide 23: PBRT Opportunity

    ASHS - PBRT OPPORTUNITY + Currently only 30 PBRT centers in U.S.* + 4 PBRT centers under construction or in development in U.S.* + Current capacity approximately 90 rooms + ASHS projected capacity required 635 – 1,270 rooms + 7% to 14% of projected capacity is currently available for treatment *Sour

  24. Slide 24: U.S. Proton Beam Centers

    U.S. PROTON BEAM CENTERS Photo Credit: The National Association for Proton Therapy, 2019 American Shared Hospital Services 24

  25. Slide 25: Community Hospital Expansion Opportunities

    ASHS- COMMUNITY HOSPITAL EXPANSION OPPORTUNITIES *1) Definition: Community hospitals are defined as all nonfederal, short-term general, and other special hospitals *2) Total number of U.S. hospitals : 5,534 *3) Number of U.S. community hospitals : 4,840 + Disproportionate Share Hospitals Serve a sig

  26. Slide 26: International Market Expansion Opportunities

    ASHS – INTERNATIONAL MARKET EXPANSION OPPORTUNITIES + Latin America + Other Countries 2 American Shared Hospital Services 6

  27. Slide 27: Summary

    SUMMARY 2 American Shared Hospital Services 7

  28. Slide 28: ASHS - Summary

    ASHS - SUMMARY + Profitable supplier of Gamma Knife services since 1991 + Long-standing alliances with premier cancer centers + Pursuing expansion opportunities in radiosurgery, proton therapy and radiation therapy 2 American Shared Hospital Services 8

  29. Slide 29: 2 Embarcadero Center, Suite 410 San Francisco, CA 94111 www.ashs.com

    2 Embarcadero Center, Suite 410 San Francisco, CA 94111 (415) 788-5300 www.ashs.com NYSE American: AMS

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