AHPI Allied Healthcare Products Inc

ST. LOUIS, Nov. 7 /PRNewswire-FirstCall/ -- Allied Healthcare Products Inc. (NASDAQ:AHPI) reported that its net income for the first quarter ending September 30 increased 139 percent, from about $87,000 last year, or about 1 cent per share, to about $208,000 in the current quarter, or about 3 cents per share, primarily on increased sales. Net sales for the first quarter of the company's 2009 fiscal year improved by about 2.4 percent, or $340,000 to $14.4 million. Actual orders for the quarter were only slightly ahead of last year. However, Allied increased net sales by working down its backlog of orders. While prices for commodities such as sheet steel and brass increased more than 6 percent over last year's average costs, Allied achieved price reductions for non-commodity items such as electronics and plastic components that helped offset the increases in commodity prices, enhancing margins. Selective price increases totaling about 2 percent over the previous year also boosted Allied margins. Allied introduced the first in a line of mass casualty ventilators in October. The devices, designed specifically for use in pandemics, natural disasters or terrorist attacks, will be launched throughout the 2009 fiscal year. Allied Healthcare Products, Inc. manufactures a variety of respiratory products used in the healthcare industry in a range of hospital and alternate care site settings including sub-acute care facilities, home healthcare and emergency medical care. The Company's product lines include respiratory care products, medical gas equipment and emergency medical products. Its products are marketed to hospitals, hospital equipment dealers, hospital construction contractors, home healthcare dealers and emergency medical products dealers. "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, 2008 2007 Net sales $14,441,011 $14,101,618 Cost of sales 10,939,957 10,934,605 Gross profit 3,501,054 3,167,013 Selling, general and administrative expenses 3,183,587 3,042,969 Income from operations 317,467 124,044 Interest income (30,659) (40,769) Other expense, net 12,067 15,150 (18,592) (25,619) Income before provision for income taxes 336,059 149,663 Provision for income taxes 127,702 62,597 Net income $208,357 $87,066 Basic and diluted earnings per share $0.03 $0.01 Weighted average common shares Outstanding - Basic 7,891,232 7,883,577 Weighted average common shares Outstanding - Diluted 8,132,931 8,106,796 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) September 30, 2008 June 30, 2008 ASSETS Current assets: Cash and cash equivalents $4,124,456 $6,149,015 Accounts receivable, net of allowances of $300,000 6,372,369 6,441,683 Inventories, net 12,776,424 12,046,450 Other current assets 554,744 394,975 Total current assets 23,827,993 25,032,123 Property, plant and equipment, net 11,174,253 10,542,573 Goodwill 15,979,830 15,979,830 Other assets, net 700,267 703,328 Total assets $51,682,343 $52,257,854 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,726,387 $2,590,804 Other accrued liabilities 2,124,890 2,960,334 Deferred income taxes 523,226 500,238 Deferred revenue 690,000 690,000 Total current liabilities 6,064,503 6,741,376 Deferred revenue 2,005,000 2,177,500 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; 10,204,819 and 10,188,569 shares issued at September 30, 2008 and June 30, 2008, respectively; 7,901,327 and 7,885,077 shares outstanding at September 30, 2008 and June 30, 2008, respectively 102,048 101,886 Additional paid-in capital 47,589,427 47,524,084 Retained earnings 16,652,793 16,444,436 Less: treasury stock, at cost; 2,303,492 shares at September 30, 2008 and June 30, 2008, respectively (20,731,428) (20,731,428) Total stockholders' equity 43,612,840 43,338,978 Total liabilities and stockholders' equity $51,682,343 $52,257,854 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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