American Shared Hospital Services (ASHS) reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue and profitability compared to the previous fiscal period.

Total revenues for Q3 2024 reached $6,999,000, an increase of $1,865,000 from $5,134,000 in Q3 2023. For the nine-month period, revenues rose to $19,271,000 from $15,627,000, marking an increase of $3,644,000. The growth was primarily driven by a substantial rise in direct patient services revenue, which surged to $3,687,000 in Q3 2024 from $988,000 in Q3 2023, and to $7,807,000 for the nine-month period, up from $2,440,000 in the prior year. Conversely, rental revenue from medical equipment leasing decreased to $3,312,000 in Q3 2024 from $3,946,000 in Q3 2023, and to $11,464,000 from $12,987,000 for the nine-month period, attributed to lower Gamma Knife procedure volumes.

Despite the revenue growth, ASHS reported an operating loss of $(889,000) for Q3 2024, compared to an operating income of $90,000 in Q3 2023. The net loss for Q3 2024 was $(410,000), a decline from a net income of $165,000 in the same quarter of the previous year. However, for the nine-month period, the company achieved a net income of $3,423,000, a significant increase from $88,000 in the prior year.

The company’s acquisition of a 60% interest in Southern New England Regional Cancer Center and Roger Williams Radiation Therapy, LLC, completed on May 7, 2024, for $2,850,000, contributed to the increase in retail revenues. The newly acquired facilities generated $2,862,000 in radiation therapy revenues for Q3 2024, compared to $0 in the same period last year.

ASHS's total costs of revenue increased by $2,597,000 to $5,629,000 for Q3 2024, driven by higher operational costs associated with the new facilities. Selling and administrative expenses also rose, reflecting increased personnel costs and legal fees related to new business opportunities.

As of September 30, 2024, ASHS reported cash, cash equivalents, and restricted cash of $14,077,000, a slight increase from $13,808,000 at the beginning of the year. The company’s long-term debt totaled $14,375,000, with compliance confirmed for its credit agreement covenants.

Overall, ASHS's strategic developments, including acquisitions and expansions in direct patient services, have significantly influenced its financial performance, despite challenges in its leasing segment.