By M. Marin
READ THE FULL AMS RESEARCH REPORT
3-Fold advance in direct affected person income, as O&O footprint expands
American Shared Hospital Providers (NYSE:AMS), reported 1Q25 outcomes. Revenues improved 17% y/y to $6.1 million in comparison with $5.2 million in 1Q24. A decline in revenues from the leasing section was offset by greater direct affected person companies section income, which superior greater than 3-fold y/y to $3.1 million. The decline in income from the leasing section mirrored decrease process volumes because of the 4Q24 and mid-1Q25 expiration of two contracts and downtime to improve one other buyer to an Esprit.
Transitioning from primarily leasing expensive tools to additionally working services immediately
The corporate is transitioning from one which primarily leases costly medical tools to deal with most cancers sufferers to 1 that additionally owns and operates (O&O) the tools itself and serves sufferers immediately. As indicated within the determine above, the direct or retail section accounted for 51% of whole income in 1Q25, up from 18% in 1Q24. We anticipate the relative contributions may fluctuate from quarter-to-quarter as tools upgrades are accomplished and because the O&O footprint expands.
New Peru contract anticipated to spice up income going ahead
Revenues from the direct affected person companies benefited from the closing of the RI acquisition on Could 7, 2024 and the opening of the corporate’s radiation remedy facility in Puebla, Mexico in July 2024. Radiation remedy revenues generated from these services reached $2.4 million. By comparability, there was no income from these websites generated in the identical interval of 2024. By way of potential quarter-to-quarter fluctuations in direct affected person section procedures and income, sufferers in Peru and Ecuador usually are insured by the native authorities and process volumes could be impacted by native laws modifications and/or native economics. The 2 worldwide Gamma Knife areas in Peru and Ecuador noticed a 27% quantity lower in 1Q25. The stand-alone facility in Peru signed a brand new contract with social safety in late February 2025, which is predicted so as to add incremental process volumes within the facility.
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