- Company improves margins to offset higher material prices. ST.
LOUIS, Sept. 7 /PRNewswire-FirstCall/ -- Allied Healthcare
Products, Inc. (NASDAQ:AHPI) reported that its net income increased
38 percent to $869,000, or 11 cents per share, during its fourth
quarter ending June 30, 2007, versus $629,000, or 8 cents per
share, for the fourth quarter last year. Despite its stronger
fourth quarter, Allied experienced flat net income of $1,641,600,
or 21 cents per share, compared to $1,648,600, or 21 cents per
share, for the prior fiscal year. Fourth quarter sales decreased by
about 3 percent, or $417,000, compared to the last quarter of the
prior year. However, lower costs and expenses more than offset the
sales decline, producing a solid increase in net income despite
income tax expenses for the fourth quarter of 2007 that were
$606,000 higher than for the fourth quarter of 2006. The 2006
fourth quarter benefited from a settlement and resolution of state
tax contingencies. For fiscal year 2007, Allied sales declined
about $1.04 million, or 2 percent, compared to 2006. Lower costs
for 2007 offset the decline. Higher prices for raw materials such
as copper, brass and zinc increased costs about 5.4 percent in
fiscal 2006. Despite competitive pricing pressures, Allied was able
to selectively increase prices during 2007. These increases,
combined with programs to cut costs, resulted in improved margins
for Allied. "We are far from satisfied with flat results for 2007,"
said Earl Refsland, president and chief executive officer. Refsland
said the company would continue to hold the line on costs in 2008
and work to increase domestic and international sales with new
products. A weaker U.S. dollar helped boost international orders
for Allied by almost 9 percent over 2006, and Refsland said that he
expects this positive effect to continue to help the company in
2008. Despite increases in inventory and capital expenditures in
2007, the company increased its cash balance by about $1 million,
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, Twelve months ended, June 30, June 30, 2007 2006 2007 2006
Net sales $14,045,798 $14,462,919 $56,500,974 $57,545,589 Cost of
sales 10,061,519 11,161,944 42,028,125 43,292,746 Gross profit
3,984,279 3,300,975 14,472,849 14,252,843 Selling General and
administrative expenses 2,765,157 2,918,066 12,051,500 12,112,624
Income from operations 1,219,122 382,909 2,421,349 2,140,219
Interest income (28,719) (17,002) (110,790) (52,988) Other, net
10,710 8,904 (23,839) 37,758 (18,009) (8,098) (134,629) (15,230)
Income before provision for income taxes 1,237,131 391,007
2,555,978 2,155,449 Provision for income taxes 368,019 (238,345)
914,400 506,845 Net income $869,112 $629,352 $1,641,578 $1,648,604
Net income per share - Basic $0.11 $0.08 $0.21 $0.21 Net income per
share - Diluted $0.11 $0.08 $0.20 $0.20 Weighted average common
shares Outstanding - Basic 7,883,577 7,852,077 7,875,982 7,840,858
Weighted average common shares Outstanding - Diluted 8,111,872
8,081,626 8,085,375 8,066,311 ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED BALANCE SHEET (UNAUDITED) June 30, 2007 June 30, 2006
ASSETS Current assets: Cash and cash equivalents $3,638,870
$2,696,324 Accounts receivable, net of allowances of $460,000 and
$430,000, respectively 7,251,767 7,429,355 Inventories, net
12,999,472 11,491,305 Other current assets 275,254 224,853 Total
current assets 24,165,363 21,841,837 Property, plant and equipment,
net 10,677,000 11,252,934 Goodwill 15,979,830 15,979,830 Other
assets, net 496,127 255,845 Total assets $51,318,320 $49,330,446
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $3,040,313 $3,208,699 Deferred income taxes 882,001 689,942
Deferred revenue 465,000 465,000 Other accrued liabilities
2,508,820 2,834,495 Total current liabilities 6,896,134 7,198,136
Deferred revenue 1,937,500 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 June 30,
2007 and 10,155,569 shares issued at June 30, 2006; 7,883,577
outstanding at June 30, 2007 and 7,852,077shares outstanding June
30, 2006 101,871 101,556 Additional paid-in capital 47,441,163
47,258,182 Retained earnings 15,673,080 14,031,500 Less treasury
stock, at cost; 2,303,492 shares at June 30, 2007 and June 30, 2006
(20,731,428) (20,731,428) Total stockholders' equity 42,484,686
40,659,810 Total liabilities and stockholders' equity $51,318,320
$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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