ST. LOUIS, May 3 /PRNewswire-FirstCall/ -- Allied Healthcare
Products, Inc. (NASDAQ:AHPI) reported today that its net income
fell about 42 percent to $236,000, or 3 cents per diluted share,
during its third quarter ended March 31, 2006, versus $408,000, or
5 cents per diluted share, for the third quarter last year.
However, for the first three quarters of fiscal 2006, Allied's net
income increased about 23 percent to $1,020,000, or 13 cents per
diluted share, versus $828,000, or 10 cents per diluted share, for
2005's first three quarters. Sales increased in the third quarter
to total $14.8 million. Sales for the fiscal year's three quarters
increased about $1.2 million. Sales increases reflect the
significant backlog that developed in the previous year. Orders for
fiscal 2006 have been sluggish, said Earl Refsland, president and
chief executive officer. A major factor in slow order volume has
been the continuing downturn in the cyclical U.S. hospital
construction market, Refsland said. Medical expenses for the
nine-month period increased more than $400,000 over the previous
year under the self-insured portion of the benefit; $280,000 of
this increase occurred in the third quarter. Allied's medical costs
per employee have grown at an annual rate of about 9 percent since
2002, but in fiscal 2006 medical costs per employee increased 21
percent over the prior year. This increase is considered an
anomaly, and the company's medical costs are expected to return to
patterns that reflect market trends in the future, 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.
CONSOLODATED STATEMENT OF OPERATIONS (UNAUDITED) Three months ended
Nine months ended March 31, March 31, 2006 2005 2006 2005 Net sales
$14,756,600 $14,328,443 $43,082,670 $41,935,731 Cost of sales
11,352,190 10,596,050 32,130,802 31,383,741 Gross profit 3,404,410
3,732,393 10,951,868 10,551,990 Selling, general and administrative
expenses 2,992,446 3,013,159 9,194,558 8,998,802 Income from
operations 411,964 719,234 1,757,310 1,553,188 Interest expense -
15,416 - 118,227 Interest income (9,311) - (35,986) - Other, net
8,861 13,791 28,854 32,563 (450) 29,207 (7,132) 150,790 Income
before provision for income taxes 412,414 690,027 1,764,442
1,402,398 Provision for income taxes 176,257 281,739 745,190
574,423 Net income $236,157 $408,288 $1,019,252 $827,975 Basic
earnings per share $0.03 $0.05 $0.13 $0.11 Diluted earnings per
share $0.03 $0.05 $0.13 $0.10 Weighted average shares outstanding -
basic 7,849,910 7,821,404 7,837,132 7,819,408 Weighted average
shares outstanding - diluted 8,068,817 8,083,671 8,057,166
8,081,925 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE
SHEET (UNAUDITED) March 31, 2006 June 30, 2005 ASSETS Current
assets: Cash and cash equivalents $720,525 $317,775 Short-term
investments 350,000 - Accounts receivable, net of allowances of
$605,000 and $565,000, respectively 7,797,317 7,215,799
Inventories, net 11,721,973 10,775,550 Other current assets 331,544
168,431 Total current assets 20,921,359 18,477,555 Property, plant
and equipment, net 11,290,754 11,308,866 Goodwill 15,979,830
15,979,830 Other assets, net 327,036 330,969 Total assets
$48,518,979 $46,097,220 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $3,366,374 $2,110,599
Revolving credit facility 81,000 - Deferred income taxes 689,008
711,416 Deferred revenue 465,000 465,000 Other accrued liabilities
3,232,124 2,940,763 Total current liabilities 7,833,506 6,227,778
Deferred revenue 658,750 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; 10,155,569 shares issued at March 31,
2006 and 10,133,069 shares issued at June 30, 2005; 7,852,077
outstanding at March 31, 2006 and 7,829,577 shares outstanding June
30, 2005, respectively 101,556 101,331 Additional paid-in capital
47,254,447 47,109,143 Retained earnings 13,402,148 12,382,896 Less
treasury stock, at cost; 2,303,492 shares at March 31, 2006 and
June 30, 2005, respectively (20,731,428) (20,731,428) Total
stockholders' equity 40,026,723 38,861,942 Total liabilities and
stockholders' equity $48,518,979 $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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