American Shared Hospital Services (AMEX:AMS) Q4 2022 Earnings Call Transcript

Peter Gaccione: Sure, sure. Yes, thank you for the question. Yes, this I would characterize it as twofold. It is a joint venture cancer treatment center that does have a Gamma Knife, and it’s a joint venture with a large neighboring hospital affiliate. And this was a situation where they needed to upgrade an older model system into a newer model system, and we were able to consult with them and creatively come up with a way to make it happen. Because they only had two alternatives, make it happen to grow their patients and continue a great and fantastic radiosurgery program, or look to close it down, which no one wanted to do. And with our support and creativity, it happened and things worked out extremely well.

Tony Kamin: Great. And

Raymond Stachowiak: Before you go to your next question, let me just kind of add a little bit of color to that. That local hospital as a member of that joint venture is part of a larger health care system. And the folks in the C suite of that health care system have seen what American Shared is capable of doing to this local hospital they own. And thus, it’s opened the doors to the C suite within that health care system, okay? That’s some of the intangible benefits. Small order, but it’s some of the intangible benefits we’re accruing.

Tony Kamin: Well, I would think in this very difficult sort of credit and interest rate environment for it — I’m sure it’s got a lot of your ultimate end user prospective customers thinking about how they can access finance in pretty effective and rational way. So I guess, I’m curious in terms of your experience there. And on the other side, I would think it also holds true for Elekta and your other potential manufacturer partners that they realize they’ve got to help, that end user customer be more creative in ways to access the technology in a rational economic sense. Have you seen changes because of sort of what’s been going on in the economy and interest rates that have been helpful that way? And is that awareness there on both the manufacturer and end user side?

Raymond Stachowiak: Yes. I will let Peter answer that. In general, I’ll just say, yes, I think we have started seeing that. But Peter, do you want to take that question on a bit?

Peter Gaccione: Sure, sure. That’s a very — it’s a good question, and there’s actually a lot in that question. I can tell you, I’ve been in this business, as you know, for over 40 years. I have very good credibility and know so many of the key decision makers and opinion leaders, not only on the practice level of the doctors and the cancer institute’s, but also in the senior management and sales levels of the many OEMs that we deal with. And what I can say is that we are getting a lot of interest and a lot of calls from many people in the industry that just know that I’m now here at American Shared. And they’re wanting to know more about, “Oh, okay, we know you’re there. We know you’ve been in the industry,” and that’s when the conversations start about the financing and the differences that we offer for funding.

So just as in the case of this situation where we received our first order, they actually contacted us just because of that. And we’re getting a lot of calls because of that. So a lot of it is due to people that know you. It’s a very small community. Everyone knows everyone in this business, past reputations, credibility. And this is a different way, like I had mentioned, it’s uncommon in this industry, and we’re working on getting that awareness out to everyone. But it’s an interesting dynamic. And I can tell you, I really see things happening just from, again, our pipeline and leads and activities that we are looking at.