Q3 2023 American Shared Hospital Services Earnings Call
Speaker 1: Good day and welcome to the American Shared Hospital Services third quarter 2023 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Stephanie Prince of PCG Advisory. Please go ahead.
Good day and welcome to the American shared hospital services third quarter 2023 earnings conference call all.
All participants will be in listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero.
After todays presentation, there will be an opportunity to ask questions. Please note. This event is being recorded.
I'd now like to turn the conference over to Stephanie Prince of P. C. G Advisory. Please go ahead.
Thank you, Jason and thank you to everyone joining us today.
Speaker 2: Thank you, Jason, and thank you to everyone joining us today. AMS's third quarter 2023 earnings press release was issued this afternoon at 4.01 p.m. Eastern time. If you need a copy, it can be accessed on the company's website at ASHS.com at press releases under the investors tab. Before turning the call over to management, I would like to make the following remarks concerning forward-looking states.
<unk> third quarter 2023 earnings press release was issued this afternoon at four one P. M. Eastern time, if you need a copy can be accessed on the company's website at H S. Dot com at press releases under the investors tab.
Before turning the call over to management I would like to make the following remarks concerning forward looking statements.
Speaker 2: Please note that various remarks that may be made on this conference call about future expectations, plans, and prospects for the company constitute forward-looking statements for the purposes of safe ARPA provisions under the Private Securities Litigation Reform Act of 1995.
Please note that various remarks that may be made on this conference call about future expectations plans and prospects for the company constitute forward looking statements for the purposes of Safe Harbor provisions under the private Securities Litigation Reform Act of 1995.
Speaker 2: Actual results may vary materially from those indicated by these forward-looking statements as a result of various important factors including those discussed in the company's filings at the SEC.
Actual results may vary materially from those indicated by these forward looking statements as a result of various important factors, including those discussed in the company's filings with the U S. D C.
Speaker 2: This includes the company's quarterly report on Form 10Q for the three-month periods ended March 31st and June 30th, 2023. The annual report on Form 10K for the year ended December 31, 2022, and the definitive proxy statement for the annual meeting of shareholders that was held on June 20th, 2023.
This includes the company's quarterly report on Form 10-Q for the three month periods ended March 31st in June 30th 'twenty to 'twenty three the annual report on Form 10-K for the year ended December 31, 2022, and the definitive proxy statement for the annual meeting of shareholders that was held in June.
20th 2023.
Speaker 2: The company assumes no obligation to update the information contained in this conference call.
The company assumes no obligation to update the information contained in this conference call.
Speaker 2: Before I turn the call over to Ray, I'd like to announce that we're instituting a new Q&A policy with this quarter's call. We're going to ask everybody to limit their questions to one question and one follow-up. As always, we'll be happy to take additional questions offline at any time.
Before I turn the call over to Ray I'd like to announce that we're instituting a new Q&A policy with this quarter's call we're going to ask everybody to limit their questions to one question and one follow up.
As always we'll be happy to take additional questions offline at anytime.
Speaker 2: With that I'd now like to turn the call over to Ray Stokowiak, Executive Chairman Ray. Thank you.
I'd now like to turn the call over to race to <unk> Executive Chairman.
Right.
Thank you Stephanie and good afternoon, everyone. Thank.
Speaker 1: Thank you for joining us today for our third quarter 2023 earnings conference call.
Thank you for joining us today for our third quarter 2023 earnings Conference call.
Speaker 1: I'll begin with some opening remarks and then turn the call over to Peter Gaccione, American Chair's Chief Executive Officer.
I'll begin with some opening remarks, and then turn the call over to Peter Gotcha, Oni American shares Chief Executive Officer.
Speaker 1: Bob Hyatt, our CFO , will then give a financial review of the third quarter result.
Bob Hi at our CFO will then give a financial review of the third quarter results.
Speaker 1: Following the prepared remarks, we'll open the call for your questions.
Following the prepared remarks, we'll open the call for your questions.
Speaker 1: American shared had another solid quarter with year over year revenue increasing by 6.3% to $5.1 million for the third quarter.
American shared had another solid quarter with year over year revenue, increasing by six 3% to $5.1 million for the third quarter.
Speaker 1: We continue to maintain a tight rein on direct costs and the gross margin grew 7.4% to $2.1 million.
We continue to maintain a tight rein on direct costs and the gross margin grew seven 4% to $2 $1 million.
During the third quarter, we continued to invest heavily in new business activity.
Speaker 1: During the third quarter, we continue to invest heavily in new business activities.
Speaker 1: and reported net income of $118,000 or 2 cents per diluted share.
We reported net income of $118000 or two cents per diluted share.
Speaker 1: This included net interest expense of $128,000 down significantly from last year and increasingly offset by interest income on our growing cash balance.
This included net interest expense of $128000 down significantly from last year and increasingly offset by interest income on our growing cash balance.
Speaker 1: We've also engaged the services of a compensation consulting firm to review our compensation practice.
We've also engaged the services of our compensation consulting firm to review our compensation practices.
Speaker 1: At quarter end, our cash balances totaled $14.7 million, or approximately $229 per share.
At quarter end, our cash balances totaled $14.7 million or approximately $2 29 per share.
Speaker 1: AMS consistently generates positive cash flow even throughout the pandemic.
M S consistently generate positive cash flow even throughout the pandemic.
During the quarter, our sales and marketing team continued to generate and work on many new business opportunities.
Speaker 1: During the quarter, our sales and marketing team continued to generate and work on many new business offers.
We're especially excited by three unique opportunities.
Speaker 1: We're especially excited by three unique opportunities, which we first mentioned on our last call.
Which we first mentioned on our last call.
Speaker 1: In the third quarter, we invested approximately $320,000, advancing these unique opportunities.
In the third quarter, we invested approximately $320000 advair.
Advancing these unique opportunities.
Speaker 1: Without these expenses, net income would have been approximately $240,000 high.
Without these expenses net income would have been approximately $240000 higher.
Speaker 1: In addition, in the second quarter, we invested roughly $250,000 on these projects.
In addition in the second quarter.
We invested roughly $250000 on these projects.
Speaker 1: Together, this totals $570,000 that we've invested so far this year.
Together this totaled $570000 that we've invested so far this year.
Speaker 1: We look forward to announcing more details about these unique projects.
We look forward to announcing more details about these unique projects that will expand our domestic footprint at the appropriate time.
Speaker 1: that will expand our domestic footprint at the appropriate time.
Speaker 1: Internationally, the installation of new equipment with expanded treatment offerings at two of our locations has progressed well.
Internationally, the installation of new equipment with expanded treatment offerings at two of our locations has progressed well.
Speaker 1: At our newest Cancer Center joint venture in Puebla, Mexico, installation of the digital linear accelerator with VMAT, IGRT, and radial surgery ability, or LINAC, is well underway.
At our newest cancer Center joint venture in Puebla, Mexico installation of the digital linear accelerator with be Matt I G. R T and radio surgery ability or linac is well underway.
This will be a new revenue stream for us when patient treatments start up in early 'twenty 'twenty, four and it'll be the most advanced radiation therapy treatment system with them within our catchment area.
Speaker 1: at our center in Ecuador, installation of the upgraded gamma knife icon is complete, and patient treatments are expected to restart this month.
At our center in Ecuador installation of the upgraded gamma knife icon is complete.
And patient treatments are expected to restart this month.
Speaker 1: This will be the only gamma knife in Ecuador for non-invasive radial surgery.
This will be the only gamma knife in Ecuador for Noninvasive radio surgery.
Speaker 1: I'm proud to say that AMFs will have the most advanced radiation cancer treatment system in their region when the installation of AMFs is completed.
I'm proud to say that <unk> will have the most advanced radiation cancer treatment system in their region.
When the installations are complete.
Cancer patients and those areas are in need of these advanced treatments and we look forward to serving them.
Speaker 1: In closing, I hope I have conveyed some of the excitement that we all feel here at AMS. I wish I could share more details so it will be clearer to you.
In closing I hope I've conveyed some of the excitement we all feel here at M. S.
I wish I could share more details.
So it'll be clearer to you what we're working on.
I can tell you this.
We expect our unique return from the $570000 that we've invested.
Speaker 1: from the $570,000 that we've invested.
Speaker 1: The management team and the board all take our fiduciary responsibility to deliver the highest returns
The management team and the board I'll take our fiduciary responsibility to do.
The highest returns very seriously.
Speaker 1: and we're constantly weighing the expected returns of investment opportunities against other uses of our cash.
And we're constantly weighing the expected returns of investment opportunities against other uses of our cash.
It's our job.
Speaker 1: I'm very comfortable with the decisions we've made and the potential of the opportunities we're working on. With that, I'll turn the call over to Peter.
I'm very comfortable with the decisions, we've made and the potential of the opportunities we're working on.
With that I'll turn the call over to Pete.
Peter.
Thank you Ray and good afternoon, everyone.
Speaker 3: During the third quarter, the sales pipeline continued to grow.
During the third quarter the sales pipeline continued to grow.
Speaker 3: We attribute this growth to our sales team, which has hit its stride, and our expanded financial solutions and closer integration with our strategic OEMs on targeted prospects.
We attribute this growth to our sales team, which has hit its stride and our expanded financial solutions and closer integration with our strategic Oems on targeted prospects.
Speaker 3: As Ray talked about, we have several key projects that are processing through the necessary sales cycle that we look forward to announcing at the appropriate time.
As Ray talked about we have several key projects that are processing through the necessary sales cycle that we look forward to announcing at the appropriate time.
In addition in the third quarter, we signed two new lease extensions with existing customers, which are our third and fourth new orders this year.
Speaker 3: In addition, in the third quarter, we signed two new lease extensions with existing customers, which are our third and fourth new orders this year.
Speaker 3: These both include equipment upgrades to the Lexel Gamma Knife Esprit.
These both include equipment upgrades to the Lex L Gamma knife a spree.
Speaker 3: the latest model, and they'll be among the first 10 in the US when these installations are completed early in Q1.
The latest model and they will be among the first 10 in the U S. When these installations are completed early in Q1.
Speaker 3: We're working on several other opportunities for new business as well as with existing customers for ongoing agreement extensions.
We're working on several other opportunities for new business as well as with existing customers for ongoing agreement extensions and product upgrades to newer cancer treatment technology as well.
Speaker 3: product upgrades to newer cancer treatment technology as well.
Speaker 3: Also during the third quarter, for the first time, AMS was an exhibitor at the annual ASTRO, known as the American Society of Radiation Therapy and Oncology Conference.
Also during the third quarter for the first time a M. S wasn't exhibitor at the annual Astro No. One has the American society of radiation therapy and oncology conference.
Speaker 3: the largest radiation oncology society in the world.
The largest radiation oncology society in the world the.
Speaker 3: The booth was fully staffed with our team and it was a great opportunity for us to meet with customers, partners, and OEMs.
The booth was fully staffed with our team and it was a great opportunity for us to meet with customers partners and Oems.
Speaker 3: At the conference, we advanced several new business opportunities and added to the breadth and depth of our relationship.
At the conference, we advanced several new business opportunities and added to the breadth and depth of our relationships.
Speaker 3: We've also been in attendance at other trade shows this year, such as the American Association of Neurosurgical Society, known as the AANSS, the Congress of Neurological Surgeons, known as the CNS, the Proton Therapy Cooperative Group, PT-COG, and the Peru
We've also been in attendance at other trade shows this year such as the American Association of Neurosurgical Society, known as a double a and S. The Congress of neurological surgeons known as the CNS.
Proton therapy Cooperative group P T cog.
And the Peru Radiotherapy Congress.
Speaker 3: We also attended three conferences in Ecuador this year, where we've developed great referral sources.
We also attended three conferences in Ecuador, This year, where we've developed great referral sources. These.
Speaker 3: These include the seventh Congress of International Neurology, which we did in March, the Women in Dentistry conference in May, and the expo.
These include the seventh Congress of International Neurology.
Which we did in March.
The women in Dentistry conference in May.
And the Expo Dental conference in September.
Yeah.
Speaker 3: Recently, we launched a new dedicated website for GKF, AMS's finance...
Recently, we launched the new dedicated website for G. K F E.
A M s's financing subsidiary.
Yeah.
Speaker 3: This new site offers neuroscience and radiosurgery professionals access to creative financing alternatives to obtain a new gamma knife, a spree and other services.
This new site offers a neuroscience and radiosurgery professionals access to creative financing alternatives to obtain a new gamma knife asprey and other services.
Speaker 3: Our in-house customer advocate has been a great addition.
Our in house customer advocate.
Has been a great addition.
Speaker 3: Not only has he helped secure the three agreement extensions with existing customers that we've announced this year, he has also continued to help improve the activity levels on our Gamma Knife site.
Not only has he helped secure the three agreement extensions with existing customers that we've announced this year. He has also continued to help improve the activity levels on our gamma knife sites.
Speaker 3: In the third quarter, gamma knife procedures increased approximately 8% period over period after improving utilization in the second quarter as well.
In the third quarter.
Gamma knife procedures increased approximately 8% period over period.
After improving our utilization in the second quarter as well.
Speaker 3: In closing, we've built good momentum both internationally and in the U.S. And AMS has a full pipeline of opportunities and is supported by a strong financial position.
In closing we've built good momentum both internationally and in the U S and a M S. As a full pipeline of opportunities and is supported by a strong financial position.
Speaker 3: I'll now turn the call over to Bob for a financial overview.
I'll now turn the call over to Bob for a financial overview.
Sure.
Thank you Peter and good afternoon, everyone.
Speaker 1: Third quarter revenue increased 6.3% to $5.1 million compared to $4.8 million in the year ago period.
Third quarter revenue increased six 3% to $5 $1 million compared to $4 8 million in the year ago period.
Speaker 4: Domestic revenue was 4.1 million, an increase of 1.1%, and international revenue was 1 million, compared to 727,000 a year ago, an increase of 35.9%.
Domestic revenue was $4 1 million, an increase of one 1% and international revenue was $1 million compared to 727000, a year ago, an increase of 35, 9%.
Speaker 4: Third quarter revenue for the proton therapy system in Florida was $2.2 million, a decrease of 5.9%, primarily due to a decrease in fractions offset by continued increases in average rain bursts.
Third quarter revenue for the proton therapy system in Florida was $2 2 million a decrease of five 9% primarily due to a decrease in fracs and offset by continued increases in average reimbursement.
Speaker 4: Total proton therapy fractions in the third quarter were 1,188, a decrease of 12.8% or 175 fractions. This is within the typical quarterly
Total proton therapy fractions in the third quarter were 1188 a decrease.
12, 8% or 175 right.
Just within the typical quarterly fluctuating rate.
Speaker 4: Total gamma knife revenue increased 9.9% to $2.7 million. The increase in overall gamma knife revenue was due to an increase in procedures combined with a modest increase in average rain births.
Trouble gamma knife revenue increased nine 9% to $2 7 million the increase in overall gamma knife revenue was due to an increase in grid features combined with a modest increase in average reimbursement.
Speaker 4: Total gamma knife procedure was 316 for the third quarter compared to 293 in the third quarter a year ago, an increase of 7.8% or 23 procedures, which is also within the range of typical quarterly fluctuation.
Total gamma knife procedures were 315 to the third quarter compared to 293 in the third quarter, a year ago, an increase of seven 8% or 23 procedures.
Which is also within the range of typical quarterly fluctuations.
Speaker 4: Gross margin for the third quarter of 2023 increased 7.4% to 2.1 million or 40.9% of revenue, compared to gross margin of 2 million or 40.5% of revenue for the third quarter last year.
Gross margin for the third quarter of 2023 increased seven 4% to $2 1 million or 49% of revenue compared to gross margin of $2 million or 45% of revenue for the third quarter last year.
Speaker 4: Selling and administrative costs increased 37.7% to $1.7 million for the third quarter of 2023, compared to $1.3 million in the year-ago quarter. This includes approximately $320,000 that we've invested in pursuing new business opportunities, as Ray talked about, as well as higher sales and marketing opportunities.
Selling and administrative costs increased 37, 7% to $1 7 million for the third quarter of 2023 compared to $1 3 million in the year ago quarter. This.
This includes approximately $320000 that we've invested in pursuing new business opportunities as ray talked about as well as higher sales and marketing.
Speaker 4: Net interest expense was $128,000 into the 2023 period compared to $216,000 in the third quarter last year.
Net interest expense was 128000 into 2020 three period compared to 216000 in the third quarter last year.
Speaker 4: The decrease is due to an increase in the interest rate on the company's variable rate that offset by increases in interest income on the company's growing cash balance.
The decrease is due to an increase in the interest rate on the company's variable rate debt offset by increases in interest income on the company's growing cash balance.
Speaker 4: Operating income for the third quarter of 2023 was $90,000 compared to operating income of $448,000 in the third quarter of 2022, which reflects the higher selling administrative and interest expense.
Operating income for the third quarter of 2023 was $90000 compared to operating income of $448000 in the third quarter of 2022, which reflects the higher selling and administrative and interest expenses.
Speaker 4: He recorded an income tax expense of $60,000 for the third quarter compared to $176,000 for the same period last year.
We recorded an income tax expense.
$60000 for the third quarter compared to $176000 for the same period last year.
Speaker 4: The decrease was primarily due to lower earnings, return to provision adjustments arising from foreign tax returns, and permanent domestic tax def-
The decrease was primarily due to lower earnings return to provision adjustments arising from foreign tax return and permanent domestic tax differences.
Speaker 4: Net income attributable to American shared hospital services in the third quarter of 2023 was $118,000 or two cents per diluted share.
Net income attributable to American shared hospital services in the third quarter was 22.
2023 was 118000 or <unk> <unk> per diluted share <unk>.
Speaker 4: compared to net income of $316,000 or $5,000 per distributed share for the third quarter of 2022.
Compared to net income of 316000 or five cents per diluted share for the third quarter of 2022.
Speaker 4: The decrease was primarily due to higher interest expense and higher selling and administrative expense in support of the company's new business opportunities.
The decrease was primarily due to higher interest expense and higher selling and administrative expense in support of the company's new business opportunity.
Speaker 4: As Ray said, we invested approximately $320,000 in the third quarter, advancing new business opportunities. Without these expenses, that income would have been approximately $240,000.
As Ray said, we invested approximately 320000 in third quarter and began to new business opportunities without these expenses net income would have been approximately $240000 higher.
Yeah.
Speaker 4: Fully diluted weighted average common shares outstanding were 6.4 million and 6.3 million for the third quarter 2023 and 2022 respectively.
Fully diluted weighted average common shares outstanding were $6 4 million and $6 3 million for the third quarter 2023, and 'twenty two respectively.
Speaker 4: Adjusted EBITDA, a non-GAAP financial measure, was $1.7 million in the current period and compared to $2 million for the third quarter of 2022.
Adjusted EBITDA, a non-GAAP financial measure was $1 7 million in the current period compared to $2 million for the third quarter of 2022.
Speaker 4: On September 30, 2023, cash equivalents and restricted cash was $14.7 million, compared to $12.5 million on December 31, 2022.
At September 30 of 2023 of cash cash equivalents and restricted cash was $14 7 million compared to $12 5 million at December 31, two.
'twenty two.
Speaker 4: Chairholders' equity, excluding non-controlling interest in subsidiaries, was $22.1 million or $3.53 per outstanding share at quarter end, compared to $21.6 million or $3.50 per outstanding share at December 31, 2022.
Shareholders' equity excluding noncontrolling interests in subsidiaries was $22 1 million or $3 53 per outstanding share at quarter end compared to $21 6 million or $3.50 per outstanding share at December 31st 2022.
Speaker 4: This concludes the formal part of our presentation. Thank you for joining us today. We look forward to updating you on our progress in the quarters ahead.
This concludes the formal part of our presentation. Thank you for joining US today, we look forward to updating you on our progress in the quarter that James.
Speaker 4: Jason, we'd now like to call back to you and open it up for.
Jason we'd now like to call back to you and open it up for questions.
Speaker 5: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch tone phone.
Thank you.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Speaker 5: If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. In the interest of time, please limit yourself to one question and one follow-up. At this time, we'll pause momentarily to assemble our roster.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
In the interest of time, please limit yourself to one question and one follow up.
This time, we'll pause momentarily to assemble our roster.
Yeah.
Speaker 6: Our first question comes from Tony Kamen from Eastwood Partners. Please go ahead. Hi, good afternoon. Ray, as you know, I've always been an extremely supportive and appreciative of management shareholder for many, many, many years.
Our first question comes from Tony Kamin from Eastwood Partners. Please go ahead.
Hi, Good afternoon, right as you know Ive always been an extremely supportive and appreciative of management shareholder for for many many many years.
But at this point.
Speaker 6: Five points I think really strike me. The stock is now trading 40% under it.
Five points I think really strike me that the.
Doctors not trading 40 per cent under it.
Speaker 6: Book value the shares are now trading per share below the cash per share
Book value of the shares are now trading per share below the cash per share.
Speaker 6: The stock is down 15% since just the last conference call. It's 35% off of its year high.
The stock is down 15% since just the last conference call, it's 35% off of its your high and in 17 years. The stock has traded in a tight range. You know I noted. The you mentioned that you were hiring a compensation committee I think its really time for the board to take.
Speaker 6: and in 17 years the stock has traded at a tight range.
Speaker 6: you know i know that the uh... you mentioned that you were hiring a compensation committee i think it's really time for the board to take much more seriously
Much more seriously some consideration for the shareholders in a different way that that has been done in the past I would urge you guys to be much more.
Speaker 6: some consideration for the shareholders in a different way that has been done in the past. I would urge you guys to be much more.
Speaker 6: that much more consideration much more responsibility my suggestion or or really too
Give that much more consideration and much more responsibility my suggestion or really too.
Speaker 6: One that the company do a two million dollar share buyback as you indicated you know you're expecting big things from the investments that are made. Wouldn't this be the right time then to repurchase stock below cash value and so far below book value that it would be a creative. I know in the past you've said you don't want to spend the cash. If that's the case the second alternative I would suggest is it is a 10 percent stock dividend that becomes kind of a regular.
One that the company to a 2 million dollar share buyback as you indicated youre expecting big things from the investments that are made wouldn't this be the right time, then to repurchase stock below cash value on so far below our book value that it would be accretive I know in the past you've said.
You don't want to spend the cash if that's the case the second alternative I would suggest is a 10% stock dividend that becomes kind of a regular stock dividend until you feel that you can either give a cash dividend or go towards.
Speaker 6: stock dividend until you feel that you can either give a cash dividend or go towards
Speaker 6: or move towards share repurchases.
Or moved towards share repurchases anyway. So my question is again you know if you're if you're if you're getting a compensation committee, presumably to compensate management and the board I feel that.
Speaker 6: Anyway, so my question is again, you know, if you're getting a compensation committee, presumably....
Speaker 6: to compensate management the board i feel that
You know with what's really decades of miserable stock performance with a company doing quite well on a lot of metrics. It's really time for the board I think to give consideration to the shareholders and what you can do to address kind of the chronic in difference to the to the value of the company, which I know you believe.
Speaker 6: with really decades of miserable stock performance and with a company doing quite well on a lot of metrics it's really time for the board i think to give consideration to the shareholders and what you can do to address kind of the chronic indifference
Speaker 6: to the value of the company which i know you believe uh... based on on many statements is is extremely important
Based on on many statements is extremely undervalued.
Yeah.
Speaker 1: Tony, thanks for joining us again here today.
Tony Thanks for joining us again here today.
Speaker 1: You know, we take our responsibilities to our shareholders very seriously. And, you know, we're always looking at the capital we do have available, our cash balances and the lines of credit we have available.
You know, we we take our responsibilities to our shareholders very seriously and you know we're always looking at the capital we do have available our cash balances in the lines of credit we have available.
Speaker 1: And we're also comparing it to the steadily increasing pipeline of activities that we have.
And we're also comparing it to the steadily increasing pipeline of activities that we have.
Speaker 1: And, you know, our formula is what's the greatest expected return to our shareable?
And you know our our Formula is what's the greatest expected return to our shareholders.
Speaker 1: And we are in a very capital intensive industry.
And where we are in a very capital intensive industry.
Speaker 1: And our business order intake, our pipeline's been growing, and our order intake is slowly increasing. Our rate of orders that we're taking in is increasing.
And our business order intake or our pipeline has been growing and our stake is slowly increasing our rate of orders that we're taking out.
Is increasing.
Speaker 1: And we're constantly evaluating our capital position and the capital that would be required for these projects.
And we're.
We're constantly evaluating our capital position and the capital that would be required for these projects.
Speaker 1: As far as our stock price, I think, as I've often mentioned, I really believe our stock is undervalued. It's very thinly traded.
As far as our stock price I think.
As I've often mentioned I really believe our stock is undervalued, it's very thinly traded.
Speaker 1: We're considering doing some activities to improve the activity levels. I think our recent
We're considering doing some activities to improve the.
Activity levels.
And.
You know I think our recent stock price.
Decline.
I think the market misunderstood.
Speaker 1: some of our recent, in particular our second quarter, let's say.
It's all about recent and.
Our second quarter, let's say.
Speaker 1: We reported a loss and we had a couple of blips in our second quarter. We had what I would consider
We reported a loss and we had a couple of blips in our second quarter.
What I would consider.
Speaker 1: you know, like an isolated type of exception.
You know like an.
Isolated type of exception and expensive I think of 578000 in the second quarter kind of a one time item.
Speaker 1: an expense of I think of $578,000 in the second quarter. I have a one time right.
Speaker 1: And we also had that extra $250,000 we invested.
And we also had that extra $250000 will be invested.
Speaker 1: Um, you know, this quarter we reported a profit and our profit would have been higher had we not invested the $320,000 into these unique business opportunities. I just wish Tony That I could disclose or share in more detail. What I see coming down the pike.
Yeah. This quarter, we reported a profit and if our profit would have been higher had we not invested the $320000 into these unique business opportunities.
I just wish Tony.
That I can disclose.
We're share in more detail.
What I see coming down the Pike.
I wish I could do so.
But being a public company.
Does not allow me to do so.
Speaker 1: So, all I can say is, you know, keep in touch.
So all I can say is you know keep in touch.
Our stock is undervalued.
Speaker 1: I think our performance has been steady. We're a profitable company. We're growing, and we're going to grow more incrementally.
I think.
Our performance has been steady we're a profitable company we're growing in.
And we're gonna grow more incrementally.
In the future.
Speaker 6: with the pipeline that we've established and the expected order intake we expect to be receiving, and the capital deployment we expect to occur. Well, Ray, as I mentioned, I understand your rationale for wanting to keep cash. That's the other alternative which will really cost you next to nothing other than...
With the pipeline that we've established and the expected order intake, we expect to be receiving and the capital deployment, we expect to occur well right as far as I am.
Mentioned that I understand that you I understand your rationale for wanting to keep cash the other alternative which will really cause she next to nothing other than some.
Speaker 6: really minor administrative fees is regular stock dividend.
Really minor administrative fees as regular stock dividends I think that what that does is it rewards our shareholders to be long term to hold onto their stock. So they can get the dividend every year and it's not like this company has so many shares outstanding right now so I really.
Speaker 6: I think that what that does, it rewards shareholders to be long term, to hold onto their stock so they can get the dividend every year. And it's not like this company has so many shares outstanding right now. So I really think your board should consider that. If you were to put in sort of a 10% level regular stock dividend, I think it rewards your shareholders. And that, I'd like you to address that as my follow up if you would.
Think your board should consider that if you if you were to put in sort of a 10% level.
Regular stock dividend I think it reward your shareholders and that's.
No, but I'd like you to address that as my follow up if you would.
Okay.
Duly noted Tony.
We appreciate your comments sure. Thank you.
Speaker 5: Again, if you have a question, please press star, then one.
Again, if you have a question. Please press Star then one.
Speaker 5: There are no more questions, and we have a question from Michael Cooper, private investor. Please go ahead.
There are no more questions in oops pardon me.
Have a question from Michael Cooper private Investor. Please go ahead.
Speaker 7: Hello, good quarter guys.
Oh Hello.
Good quarter guys.
Hmm.
Now.
Speaker 7: With regard to the Go Forward, I would actually vote that you not be dispersing cash in the way it would give it down to a buyback.
With regard to the Gulfport I would actually vote that.
Are you not be disbursing cash in the way of dividends or buybacks.
Speaker 7: To me, that would signal that your growth opportunities were not as robust.
To me that would signal that your growth opportunities were not as robust.
Speaker 7: So that's just another opinion on the other side of the article.
As a main so that yes.
Yes, another opinion on the other side of the argument.
Speaker 7: My question is around the 550,000 that you have invested in the process. Where does that investment go? Is that salaries internally? Is that legal expenses, site visits, acquiring leases? Can you give any kind of flavor on
My question is around 550000 that you have invested in the pros that where does that investment goes that salaries internally is that legal expenses site visits.
Acquiring leases can you give any kind of lag.
Labor on.
Speaker 7: what those expenses looked like or those investments. Thank you.
What those expenses like.
Gordon's investment thank you.
Speaker 1: And thank you, Michael, for your question. Thanks for participating today and for your time. The money we've invested, the $570,000 between the second and third quarter, has gone to three unique businesses.
Thank you Michael for your question, Thanks for participating today and for your time.
The money, we've invested 570000 between the second and third quarter.
Has gone to three unique business opportunities.
Speaker 1: and they've involved a lot of upfront costs necessary to go through the process.
And they even involved a lot of upfront costs.
Necessary to go through.
The process.
Of getting the deal I'll say.
There's been.
Legal costs.
Speaker 1: There's been costs associated with just regulatory filings that are necessary to obtain the business.
There's been a cost associated with just regulatory filings that are necessary to obtain the business.
Speaker 1: and other consultants and advisors that we feel has been very beneficial to enhance our ability to close the opportunity.
And other consultants and advisers that we feel has been very beneficial.
To enhance our ability to close the opportunities.
Speaker 1: So that's probably about as far as I can take things, Michael, in answering your question, I can.
So that's probably about as far as I can take things Michael in answering your question I can tell you I've been an entre.
Speaker 1: entrepreneur investor for a few decades.
Entrepreneur and Investor for a few decades now.
Speaker 1: And that money would not be expensed and that if the opportunities weren't what they were.
And that money would not be expensed and and.
<unk>.
If the opportunities are.
Werent worthwhile.
Great look forward to.
Announcements.
Stay tuned.
Yeah.
Speaker 5: There are no more questions in the queue. This concludes our question and answer session. I would like to turn the conference back over to Grace Stekowiec for any closing remarks.
There are no more questions in the queue. This concludes our question and answer session I would like to turn the conference back over to Ray stucco circa will like for any closing remarks.
Speaker 1: Thank you, Jason. Thanks for everyone who joined us today.
Thank you Jason.
Ah Thanks for everyone, who joined us today.
Speaker 1: I really believe American shares never been a stronger position with the pipeline opportunities we have our financial position. Capital we have ready to be deployed. We're excited about the future. So as I've mentioned already, we're excited about the future.
I really believe American shares never been a stronger position with the pipeline opportunities we have our financial position.
Capital, where you have ready to be deployed we're excited about that future. So.
I've mentioned already.
Please stay tuned.
Speaker 1: We'll speak with you next on our 2023 year end call in March. But please.
We'll speak with you next on our 2023 year end call in March.
But please don't hesitate.
Speaker 1: feel free to contact us directly if you have any questions before them. Be well.
Feel free to contact us directly if you have any questions before them.
Be well.
And have a great evening.
Goodbye.
Speaker 5: The conference has now concluded. Thank you for attending today's presentation. You may now just.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
Okay.
[music].
Okay.
[music].
Okay.
[music].
Yes.
Okay.
Speaker 8: Does you, we pro?
Okay.
Yeah.