Allied Healthcare Products Reports Profitable Second Quarter and
First Half - Lower production costs and expenses continue ST.
LOUIS, Feb. 10 /PRNewswire-FirstCall/ -- Allied Healthcare
Products, Inc. (NASDAQ:AHPI) reported that it earned a net income
of $184,000, or 2 cents per share, during its second quarter ended
December 31, 2004, compared to $384,000, or 5 cents per share, for
the second quarter of 2004. For the first half of fiscal 2005,
Allied earned a profit of $420,000, or 5 cents per share, compared
to $387,000, or 5 cents per share for the first half of 2004.
Allied orders for the first half of 2005 were about $100,000 higher
than the prior year. However, because all orders were not released
for shipment -- for example, because of time deferrals for hospital
construction -- some orders could not be translated into sales.
This has resulted in a backlog increase that should be worked off
in the second half of 2005, according to Earl R. Refsland, chief
executive officer. The company continued to hold down costs.
Operating expenses decreased $529,000 for the first two quarters of
2005 versus 2004. Cost reductions have been realized through
increased automation and in-house production of parts, staff
reductions and lower insurance premiums. Interest expense also has
been cut significantly -- from $341,000 in the first half of 2004
to $103,000 in 2005 -- by reducing debt from $7.1 to $1.3 million.
Allied will introduce new products in the second half of fiscal
2005. The most significant, Refsland said, is the IMPACT(TM)
(Integrated Multi-Parameter Alarm Control Technology) Alarm System
for hospitals. "IMPACT(TM) will enable hospitals to deliver better
care, at lower cost, by allowing computer monitoring of literally
hundreds of critical functions. Instead of finding out a system has
failed when it's too late, IMPACT(TM) will allow a hospital
engineer to see a problem developing -- and correct it -- before a
problem occurs." Refsland said that the company's focus in the
second half will continue to be increasing sales and maintaining
tight cost controls. "We have significantly strengthened our
balance sheet through cost controls. We will continue that
discipline and work on building sales," Refsland said. Allied
Healthcare Products, Inc. is a leading manufacturer of respiratory
care products, medical gas equipment and emergency medical products
used in a wide range of hospital and alternate care settings. "SAFE
HARBOR" STATEMENT: Statements contained in this release that are
not historical facts or information are "forward-looking
statements." Words such as "believe," "expect," "intend," "will,"
"should," and other expressions that indicate future events and
trends identify such forward-looking statements. These
forward-looking statements involve risks and uncertainties that
could cause the outcome and future results of operations and
financial condition to be materially different than stated or
anticipated based on the forward-looking statements. Such risks and
uncertainties include both general economic risks and
uncertainties, risks and uncertainties affecting the demand for and
economic factors affecting the delivery of health care services,
and specific matters which relate directly to the Company's
operations and properties as discussed in its periodic filings with
the Securities and Exchange Commission. The Company cautions that
any forward-looking statement contained in this report reflects
only the belief of the Company or its management at the time the
statement was made. Although the Company believes such
forward-looking statements are based upon reasonable assumptions,
such assumptions may ultimately prove inaccurate or incomplete. The
Company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement was made. ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three months
ended, Six months ended, December 31, December 31, 2004 2003 2004
2003 Net sales $13,667,568 $15,077,334 $27,607,288 $28,884,862 Cost
of sales 10,254,672 10,968,845 20,787,691 21,379,800 Gross profit
3,412,896 4,108,489 6,819,597 7,505,062 Selling General and
administrative expenses 3,056,555 3,334,657 5,985,643 6,514,568
Income from operations 356,341 773,832 833,954 990,494 Interest
expense 28,966 144,774 102,811 341,716 Other expense 11,410
(11,040) 18,772 (5,682) Other, net 40,376 133,734 121,583 336,034
Income before provision for income taxes 315,965 640,098 712,371
654,460 Provision for income taxes 131,779 255,891 292,684 267,480
Net income $184,186 $384,207 $419,687 $386,980 Net income per share
- Basic and diluted $0.02 $0.05 $0.05 $0.05 Weighted average common
shares Outstanding - Basic 7,818,432 7,814,910 7,818,432 7,814,421
Weighted average common shares Outstanding - Diluted 8,104,869
7,995,788 8,087,657 7,974,834 ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED BALANCE SHEET (UNAUDITED) December 31, 2004 June 30,
2004 ASSETS Current assets: Cash $10,398 $8,256 Accounts
receivable, net of allowance for doubtful accounts of $475,000 and
$475,000, respectively 7,023,692 7,708,969 Inventories, net
10,605,306 11,095,171 Income tax receivable - 130,548 Other current
assets 325,564 127,127 Total current assets 17,964,960 19,070,071
Property, plant and equipment, net 11,504,339 11,999,927 Goodwill
15,979,830 15,979,830 Other assets, net 65,804 88,867 Total assets
$45,514,933 $47,138,695 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $2,821,427 $3,125,593 Current
portion of long-term debt 1,275,325 1,245,484 Deferred income taxes
389,644 389,644 Deferred revenue 465,000 - Other current
liabilities 3,138,553 3,316,603 Total current liabilities 8,089,949
8,077,324 Deferred income taxes 242,478 242,478 Deferred revenue
310,000 - Long-term debt - 2,366,076 Commitments and contingencies
Stockholders' equity: Preferred stock; $0.01 par value; 1,500,000
shares authorized; no shares issued and outstanding which includes
Series A preferred stock; $0.01 par value; 200,000 shares
authorized; no shares issued and outstanding - - Common stock;
$0.01 par value; 30,000,000 shares authorized; 7,818,432 shares
issued and outstanding at December 31, 2004 and June 30, 2004
101,220 101,220 Additional paid-in capital 47,041,493 47,041,493
Common stock in treasury, at cost (20,731,428) (20,731,428)
Retained earnings 10,461,221 10,041,532 Total stockholders' equity
36,872,506 36,452,817 Total liabilities and stockholders' equity
$45,514,933 $47,138,695 DATASOURCE: Allied Healthcare Products,
Inc. CONTACT: Daniel C. Dunn, Chief Financial Officer of Allied
Healthcare Products, Inc., +1-314-771-2400 Web site:
http://www.alliedhpi.com/
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