American Shared Hospital Services Reports 32.9% Revenue Growth to $28.34 Million for Fiscal Year 2024

American Shared Hospital Services (ASHS) reported a significant increase in total revenue for the fiscal year ending December 31, 2024, reaching $28.34 million, a 32.9% rise from $21.33 million in 2023. This growth was primarily driven by the addition of revenue from the recently acquired Rhode Island Companies, which operate three radiation therapy facilities, and the commencement of operations at a new facility in Puebla, Mexico. However, the company experienced a decline in revenue from its leasing segment, which fell by approximately $1.99 million due to the expiration of several contracts and a decrease in procedure volumes.

The company's financial performance was marked by a net income attributable to ASHS of $1.58 million, an increase of $1.58 million compared to the previous year. This improvement was largely attributed to a bargain purchase gain of $3.79 million from the acquisition of the Rhode Island Companies. In contrast, the leasing segment faced challenges, with a reported decrease in Gamma Knife revenue, which fell to $9.72 million from $10.99 million in 2023, primarily due to contract expirations and a reduction in procedure volumes.

Operationally, ASHS expanded its footprint by acquiring a 60% interest in three radiation therapy facilities in Rhode Island on May 7, 2024, and began treating patients at its Puebla facility in July 2024. The company also upgraded several Gamma Knife units to the Esprit model, enhancing treatment capabilities. The total number of LINAC procedures performed reached 14,662, contributing significantly to the retail segment's revenue, which accounted for 44% of total revenue in 2024, up from 17% in 2023.

Despite the positive revenue growth, ASHS faced challenges with its operational costs, which increased by 59.9% to $19.16 million, representing 67.6% of total revenue. This rise was attributed to higher maintenance and operating costs associated with the new facilities and upgrades. Additionally, the company recognized a loss of $3.08 million on the write-down of impaired assets, primarily related to its Gamma Knife portfolio, which further impacted profitability.

Looking ahead, ASHS anticipates continued growth driven by its strategic acquisitions and operational expansions. The company plans to enhance its service offerings and improve its financial reporting processes following the identification of a material weakness in internal controls. With a focus on hiring experienced personnel and optimizing its operations, ASHS aims to strengthen its market position in the radiation therapy sector while navigating the challenges posed by contract expirations and reimbursement rate fluctuations.