AHPI Allied Healthcare Products Inc

ST. LOUIS, May 2 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. (NASDAQ:AHPI) reported that its net income increased about 17.8 percent to $278,000, or 4 cents per share, versus $236,000, or 3 cents per share, in its third quarter last year. Net income for the first three quarters of fiscal 2007 declined 24.3 percent to $772,000, or 10 cents per share, from $1.02 million, or 13 cents per share, for the first three quarters of the prior year. Sales for the third quarter were about $1 million lower than the prior year. However, lower sales were offset by increased margins. Sales for the first three quarters decreased $628,000, to $42.5 million for this year versus $43.1 million the previous year. International sales orders increased more than $700,000 to almost $8.2 million for the current nine month period, led by gains in Europe and South America. Domestic sales orders for the three quarters declined slightly. Negotiations with suppliers began to help offset increases in material costs in Allied's third quarter, according to Earl Refsland, president and chief executive officer. Price increases on selected products also helped the company restore margins eroded by higher material costs in the last year. Pricing adjustments and supplier negotiations will continue, Refsland said. The company reported that it has cash and equivalents at the end of the period of $2.7 million compared to $1.1 million at the end of the third quarter in the prior 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, Nine months ended, March 31, March 31, 2007 2006 2007 2006 Net sales $13,703,784 $14,756,600 $42,455,176 $43,082,670 Cost of sales 10,251,494 11,352,190 31,966,606 32,130,802 Gross profit 3,452,290 3,404,410 10,488,570 10,951,868 Selling General and administrative expenses 3,003,928 2,992,446 9,286,343 9,194,558 Income from operations 448,362 411,964 1,202,227 1,757,310 Interest income (25,844) (9,311) (82,071) (35,986) Other, net 9,328 8,861 (34,551) 28,854 (16,516) (450) (116,622) (7,132) Income before provision for income taxes 464,878 412,414 1,318,849 1,764,442 Provision for income taxes 187,198 176,257 546,381 745,190 Net income $277,680 $236,157 $772,468 $1,019,252 Net income per share -- Basic $0.04 $0.03 $0.10 $0.13 Net income per share -- Diluted $0.03 $0.03 $0.10 $0.13 Weighted average common shares Outstanding -- Basic 7,883,577 7,849,910 7,873,460 7,837,132 Weighted average common shares Outstanding -- Diluted 8,077,696 8,068,817 8,071,832 8,057,166 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) March 31, 2007 June 30, 2006 ASSETS Current assets: Cash and cash equivalents $2,714,275 $2,696,324 Accounts receivable, net of allowances of $415,000 and $430,000, respectively 6,781,064 7,429,355 Inventories, net 12,786,333 11,491,305 Other current assets 369,753 224,853 Total current assets 22,651,425 21,841,837 Property, plant and equipment, net 10,805,016 11,252,934 Goodwill 15,979,830 15,979,830 Other assets, net 251,911 255,845 Total assets $49,688,182 $49,330,446 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,394,054 $3,208,699 Deferred income taxes 670,705 689,942 Deferred revenue 465,000 465,000 Other accrued liabilities 2,437,638 2,834,495 Total current liabilities 6,967,397 7,198,136 Deferred revenue 1,123,750 1,472,500 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; 10,187,069 shares issued at March 31, 2007 and 10,155,569 shares issued at June 30, 2006; 7,883,577 outstanding at March 31, 2007 and 7,852,077 shares outstanding June 30, 2006, respectively 101,871 101,556 Additional paid-in capital 47,422,624 47,258,182 Retained earnings 14,803,968 14,031,500 Less treasury stock, at cost; 2,303,492 shares at March 31, 2007 and June 30, 2006, respectively (20,731,428) (20,731,428) Total stockholders' equity 41,597,035 40,659,810 Total liabilities and stockholders' equity $49,688,182 $49,330,446 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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