American Shared Hospital Services (AMS) announced financial results for the fourth quarter and 2014. Medical services revenue increased 1.4% to $3,992,000 compared to medical services revenue of $3,937,000 for Q4 2013.
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Revenue for the fourth quarter of 2013 included the company's operations in Turkey, which were sold effective May 31, 2014. Excluding prior year's revenue in Turkey, medical services revenue increased 12% for the fourth quarter of 2014 compared to the fourth quarter of 2013.
Net income for the fourth quarter of 2014 was $58,000, or $0.01 per share. This compares to a net loss for the fourth quarter of 2013 of $82,000, or $0.02 per share, which included a pre-tax loss from foreign currency transactions of $334,000 due to the weakening of the Turkish Lira against the U.S. Dollar.
The number of procedures performed on Gamma Knife Perfexion systems supplied by AMS in the United States increased 5.8% for the fourth quarter and decreased 7.7% for all of 2014 compared to the same periods of 2013, excluding procedures performed in Turkey.
The total number of procedures performed in AMS' U.S. Gamma Knife business, including Gamma Knife and Gamma Knife Perfexion procedures, increased 13.8% for the fourth quarter and decreased 4.9% for all of 2014 compared to the same periods of 2013, excluding procedures performed in Turkey.
Medical services gross margin for the fourth quarter of 2014 increased to 38.6%, compared to medical services gross margin of 34.3% for the fourth quarter of 2013, primarily the result of lower costs due to the sale of the Turkish subsidiary.
Operating income increased 45.4% to $381,000 for the fourth quarter of 2014 compared to $262,000 for the same period a year earlier. Pretax income increased to $154,000 for the fourth quarter of 2014 compared to a pretax loss of $38,000 for the fourth quarter of 2013.
Selling and administrative expenses for the fourth quarter of 2014 were $838,000 compared to $750,000 for the fourth quarter of 2013, primarily due to increased accounting and tax services and legal fees. ■