AHPI Allied Healthcare Products Inc

-- Sales increase due to large order backlog. ST. LOUIS, Nov. 2 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. (NASDAQ:AHPI) reported today that it earned a net income of $466,000, or 6 cents per diluted share, during its first quarter ended September 30, 2005, versus $236,000, or 3 cents per diluted share, for the first quarter last year. Sales for the first quarter of fiscal year 2006 totaled $15.0 million compared to $13.9 million for the previous year's first quarter. As management had anticipated, sales increased due to the large backlog of orders in fiscal 2005. Customer orders for the first quarter increased modestly over last year's first quarter. Allied's margins improved to 26.5 percent from 24.4 percent last year on higher sales. Selling, general and administrative (SG&A) expenses increased about $240,000 versus last year's first quarter. Factors behind the increase included scheduled raises in salary and benefits, expanded sales efforts and higher commissions related to higher sales. The company remained free of debt after paying it off in the last quarter of the 2005 fiscal year. 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 September 30, 2005 2004 Net sales $14,986,280 $13,939,720 Cost of sales 11,011,763 10,533,018 Gross profit 3,974,517 3,406,702 Selling, general and administrative expenses 3,169,959 2,929,088 Income from operations 804,558 477,614 Interest expense - 73,846 Interest income (7,957) - Other expense, net 11,069 7,362 3,112 81,208 Income before provision for income taxes 801,446 396,406 Provision for income taxes 335,605 160,905 Net income $465,841 $235,501 Net income per share - Basic $0.06 $0.03 Net income per share - Diluted $0.06 $0.03 Weighted average common shares Outstanding - Basic 7,829,577 7,818,432 Weighted average common shares Outstanding - Diluted 8,061,758 8,065,741 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) September 30, 2005 June 30, 2005 ASSETS Current assets: Cash and cash equivalents $361,576 $317,775 Short-term investments 651,277 - Accounts receivable, net of allowances of $595,000 and $565,000, respectively 8,017,314 7,215,799 Inventories, net 10,895,370 10,775,550 Other current assets 560,853 168,431 Total current assets 20,486,390 18,477,555 Property, plant and equipment, net 11,220,683 11,308,866 Goodwill 15,979,830 15,979,830 Other assets, net 329,658 330,969 Total assets $48,016,561 $46,097,220 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,359,849 $2,110,599 Deferred income taxes 703,809 711,416 Deferred revenue 465,000 465,000 Other accrued liabilities 3,250,318 2,940,763 Total current liabilities 7,778,976 6,227,778 Deferred revenue 891,250 1,007,500 Commitments and contingencies Stockholders' equity: Preferred stock; $0.01 par value; 1,500,000 shares authorized; no shares issued and outstanding - - 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; 10,133,069 shares issued and 7,829,577 shares outstanding at September 30, 2005 and June 30, 2005, respectively 101,331 101,331 Additional paid-in capital 47,127,695 47,109,143 Retained earnings 12,848,737 12,382,896 Less: treasury stock, at cost; 2,303,492 shares at September 30, 2005 and June 30, 2005, respectively (20,731,428) (20,731,428) Total stockholders' equity 39,346,335 38,861,942 Total liabilities and stockholders' equity $48,016,561 $46,097,220 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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