American Shared Hospital Services (NYSE MKT:AMS) Q2 2019 Earnings Conference Call - Final Transcript
Aug 13, 2019 • 03:00 pm ET
Craig K. Tagawa
allowing us to target larger tumors per incremental revenue opportunities. We continue to expect completion of our Icon upgrade as Kettering Medical Center in Ohio in the third quarter of 2019.
I will now turn the call over to Alexis for a detailed financial discussion.
Thank you, Craig. Good afternoon. Before I begin my prepared remarks, I'd like to call your attention to our second quarter 2019 earnings results issued this morning. For the three months ended June 30, 2019, revenues increased 0.5% to $5,197,000 compared to revenues of $5,169,000 for the second quarter of 2018. Second quarter revenue for the Company's initial proton therapy system installed at Orlando Health in Florida increased 3.4% to $1,409,000 compared to revenues for the second quarter of 2018 of $1,363,000.
Revenue for the Company's Gamma Knife operations increased 0.2% to $3,600,000 for the second quarter of 2019 compared to $3,594,000 for the second quarter of 2018, adjusting for contractual Medicare reimbursement at one site. Excluding this adjustment, revenue declined 11% to $3.2 million. The decline was also due to business interruption from labor dispute, some pressure from lower Medicare reimbursement at our retail sites and the expiration of two customer contracts in April 2018 and January 2019.
Gross margin for the second quarter of 2019 decreased to $1,729,000 or 33.3% of revenue, compared to gross margin of $2,081,000 or 40.3% of revenue for the second quarter of 2018. This reflected an increase in costs of revenue, primarily attributable to depreciation expense and increased selling and administrative costs.
Net income for the second quarter of 2019 was $31,000 or $0.01 per share. This compares to net income for the second quarter of 2018 of $287,000 or $0.05 per share. Adjusted EBITDA, a non-GAAP financial measure, was $2,465,000 for the second quarter of 2019, compared to $2,561,000 for the second quarter of 2018.
Our June 30, 2019 cash, cash equivalents and restricted cash was $2,256,000 compared to $1,792,000 at December 31, 2018. Shareholders' equity at June 30, 2019 was $31,754,000, or $5.46 per outstanding share. This compares to shareholders' equity at December 31, 2018 of $31,048,000, or $5.43 per outstanding share.
This concludes the formal part of our presentation. James, we'd like to turn the call back over to you for questions.