American Shared Hospital Services (AMS) Q4 2024 Earnings Call Highlights: Record Revenue Growth

American Shared Hospital Services (AMS) reported a 59% year-over-year revenue growth in the fourth quarter of 2024, driven by strategic acquisitions and international expansion. The company's earnings call on April 4, 2025, revealed a mix of impressive achievements and lingering challenges, painting a complex picture of a company in transition.



The most striking figure from the earnings call was the 59% year-over-year revenue growth in Q4 2024. This surge was fueled by the acquisition of three Rhode Island cancer treatment centers and the opening of a new facility in Puebla, Mexico. These strategic moves not only expanded AMS's footprint but also aligned with its shift towards direct patient services, a segment that saw a staggering 253% revenue growth in fiscal year 2024.

Raymond Stachowiak, Executive Chairman of the Board, highlighted the synergies from the Rhode Island expansion. "The state is relatively small, and the three largest healthcare providers are involved in the initiative," he explained. Brown University Health provides professional services, while Care New England and ProspectCharterCARE each hold a 20% equity stake in the three radiation therapy centers. These partnerships are expected to enhance cancer care provision in the state and streamline physician recruitment, improving patient service capabilities.

Gary Delanois, the newly appointed CEO, emphasized the international growth opportunities, particularly in Mexico, Peru, and Ecuador. The company has established a strong international presence with the only Gamma Knife centers in Peru and Ecuador, and new centers in Puebla and Guadalajara, Mexico. These initiatives are expected to drive stronger international growth, positioning AMS for sustained success.

However, the earnings call also revealed challenges that AMS must navigate. Revenue from the equipment leasing segment decreased, with Gamma Knife revenue declining by 11.6% due to contract expirations. The company experienced a 4.3% decrease in proton therapy fractions, partly due to hurricanes in Florida affecting volumes. Gross margin declined slightly due to increased operational expenses and lower margins in the growing patient services segment. AMS reported a net loss of $1.3 million in Q4 2024, attributed to impaired assets and removal costs in the leasing segment.

The strategic shift towards direct patient services has shown significant potential benefits, but it also comes with risks. The company faces challenges in maintaining growth momentum amidst industry complexities and evolving market conditions. The net loss in Q4 2024 and the decline in gross margin are indicators of the operational challenges AMS is currently facing.

Despite these challenges, AMS's long-term vision remains strong. The company's investments in technology, staffing, and improved operational efficiencies have led to gross margin improvement in the fourth quarter as compared to the third quarter. AMS is positioned for sustainable long-term growth, with a strong business development pipeline, financial stability, and commitment to innovation.

In conclusion, AMS's Q4 2024 earnings call highlighted both the impressive achievements and the lingering challenges of a company in transition. The strategic shift towards direct patient services has shown significant potential benefits, but it also comes with risks. AMS's long-term vision remains strong, and the company is positioned for sustainable growth. However, investors should remain cautious and monitor the company's progress closely.