ST. LOUIS, Sept. 4 /PRNewswire-FirstCall/ -- Allied Healthcare
Products, Inc. (NASDAQ:AHPI) reported that its net income for the
fourth quarter ending June 30 fell about 21 percent, from about
$870,000 last year, or 11 cents per share, to about $690,000 in the
current quarter, or 9 cents per basic share, due to slight delays
in manufacturing and higher material and labor costs. Sales for the
fourth quarter increased by about 4.6 percent, or almost $650,000,
compared to the fourth quarter of last year. However, Allied sales
for the fiscal year tracked very closely with the previous year,
totaling about $56.4 million for 2008 and $56.5 million for 2007.
Sales revenue for 2008 included $1.2 million as a result of a 2004
agreement with Abbott Laboratories to reimburse certain Research
and Development costs related to new CO2 absorbent techniques.
Sales for 2007 included about $584,000 in reimbursement from that
agreement. Sales for the fourth quarter of 2008 included $525,000
in reimbursement of Research and Development cost, versus $134,000
for 2007. For the fiscal year ending June 30, Allied net income
fell about 46 percent, from about $1.64 million last year, or 21
cents per basic share, to about $882,000, or 11 cents per share, in
2008. Manufacturing delays meant that some customer orders were not
filled and could not be translated into sales revenue in 2008.
Also, material costs -- primarily metals and oil-based resins --
increased by about 2 percent and labor costs by about 3.8 percent
over fiscal 2007. A modest overall price increase by Allied could
not offset the year's higher material and labor costs.
Manufacturing productivity programs planned for fiscal 2008 were
not implemented as quickly as anticipated. However, these programs
are proceeding and will result in cost reductions and improved
throughput in fiscal 2009, according to Earl Refsland, Allied
president and chief executive officer. Despite problems in the
year, positive cash flow of about $2.5 million increased Allied's
cash position to about $6.1 million at the end of the fiscal year,
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 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, 2008 2007 2008 2007
Net sales $14,692,626 $14,045,798 $56,364,111 $56,500,974 Cost of
sales 10,577,599 10,061,519 43,006,007 42,028,125 Gross profit
4,115,027 3,984,279 13,358,104 14,472,849 Selling General and
administrative expenses 3,096,161 2,765,157 12,084,971 12,051,500
Income from operations 1,018,866 1,219,122 1,273,133 2,421,349
Interest income (25,245) (28,719) (118,119) (110,790) Other, net
24,501 10,710 60,005 (23,841) (744) (18,009) (58,114) (134,631)
Income before provision for income taxes 1,019,610 1,237,131
1,331,247 2,555,980 Provision for income taxes 330,327 368,019
448,748 914,400 Net income $689,283 $869,112 $882,499 $1,641,580
Net income per share - Basic $0.09 $0.11 $0.11 $0.21 Net income per
share - Diluted $0.08 $0.11 $0.11 $0.20 Weighted average common
shares Outstanding - Basic 7,883,907 7,883,577 7,883,659 7,875,982
Weighted average common shares Outstanding - Diluted 8,124,826
8,111,872 8,119,776 8,085,375 ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED BALANCE SHEET (UNAUDITED) June 30, 2008 June 30, 2007
ASSETS Current assets: Cash and cash equivalents $6,149,015
$3,638,870 Accounts receivable, net of allowances of $300,000 and
$460,000, respectively 6,441,683 7,251,767 Inventories, net
12,046,450 12,999,472 Other current assets 394,975 275,254 Total
current assets 25,032,123 24,165,363 Property, plant and equipment,
net 10,542,573 10,677,000 Goodwill 15,979,830 15,979,830 Other
assets, net 703,328 496,127 Total assets $52,257,854 $51,318,320
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $2,590,804 $3,040,313 Other accrued liabilities 2,960,334
2,508,820 Deferred income taxes 500,238 882,001 Deferred revenue
690,000 465,000 Total current liabilities 6,741,376 6,896,134
Deferred revenue 2,177,500 1,937,500 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; 10,188,569 and 10,187,069 shares
issued at June 30, 2008 and June 30, 2007; respectively. 7,885,077
and 7,883,577 outstanding at June 30, 2008 and June 30, 2007,
respectively. 101,886 101,871 Additional paid-in capital 47,524,084
47,441,163 Retained earnings 16,444,436 15,673,080 Less treasury
stock, at cost; 2,303,492 shares at June 30, 2008 and June 30,
2007, respectively (20,731,428) (20,731,428) Total stockholders'
equity 43,338,978 42,484,686 Total liabilities and stockholders'
equity $52,257,854 $51,318,320 DATASOURCE: Allied Healthcare
Products, Inc. CONTACT: Daniel C. Dunn, Chief Financial Officer of
Allied Healthcare Products, Inc., +1-314-771-2400
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