ST. LOUIS, Feb. 10 /PRNewswire-FirstCall/ -- Allied Healthcare
Products Inc. (NASDAQ:AHPI) reported that its net income for the
second quarter ending December 31, 2008, declined from about
$6,500, or zero cents per share in the prior year period, to a loss
of about $436,000, or a negative 6 cents per share, primarily
because of lower sales volume in the current year period. Net sales
for the second quarter fell about 8 percent, or almost $1.1
million, to about $12.5 million. The sales decline reflects two
major factors. The first factor is order timing and order releases
for a few major customers. The second factor is the end of
reimbursement payments by Abbott Labs for certain research and
development costs incurred by Allied. Abbott made no payments in
the second quarter of this fiscal year versus payments totaling
$451,000 for the second quarter of last year. Abbott made no
payments this year because it had completed its funding agreement
with Allied. For the first half of the fiscal year, Allied net
income declined from about $93,500, or 1 cent per share in the
prior year period, to a loss of about $227,000, or a loss of about
3 cents per share in the current year period. Net sales for the
first two quarters declined by about 3 percent, or about $750,000,
to about $27 million. Again, $451,000 of the $750,000 decline
resulted from the end of reimbursement payments by Abbott. "Our
analysis of first half sales results indicates an anomaly of order
and order release timing by long-time customers," said Earl
Refsland, Allied President and Chief Executive Officer. "We expect
these orders to be restored in the second half of the fiscal year."
Allied is tracking economic changes for effects on its results,
Refsland said, but historically its business has not suffered as
much as the overall economy in recessions. The company incurred
one-time production, testing and material costs totaling about
$420,000 associated with the introduction of new products in the
first two quarters. In the second quarter, prices for commodity
materials such as brass and plastics began to decline and
cost-reduction efforts on non-commodity materials started to show
positive results. Allied believes that the benefits of these lower
costs will further enhance its margins in the second half of the
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 settings including sub-acute
facilities, home healthcare and emergency medical care. Allied's
product lines include respiratory care products, medical gas
equipment and emergency medical products. Allied 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, Six months ended, December 31, December 31, 2008 2007 2008
2007 Net sales $12,531,342 $13,626,016 $26,972,353 $27,727,634 Cost
of sales 9,821,746 10,714,172 20,761,703 21,648,777 Gross profit
2,709,596 2,911,844 6,210,650 6,078,857 Selling General and
administrative expenses 3,400,342 2,932,428 6,583,929 5,975,398
Income (loss) from operations (690,746) (20,584) (373,279) 103,459
Interest income (18,455) (38,177) (49,114) (78,946) Interest
expense 5,849 -- 5,849 -- Other, net 11,112 11,113 23,179 26,263
(1,494) (27,064) (20,086) (52,683) Income (loss) before provision
for (benefit from) income taxes (689,252) 6,480 (353,193) 156,142
Provision for (benefit from) income taxes (253,158) -- (125,456)
62,597 Net income (loss) ($436,094) $6,480 ($227,737) $93,545 Net
income (loss) per share - Basic and diluted ($0.06) $0.00 ($0.03)
$0.01 Weighted average common shares Outstanding - Basic 7,901,327
7,883,577 7,896,279 7,883,577 Weighted average common shares
Outstanding - Diluted 7,901,327 8,130,901 7,896,279 8,122,607
ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET
(UNAUDITED) December 31, 2008 June 30, 2008 ASSETS Current assets:
Cash and cash equivalents $4,212,532 $6,149,015 Accounts
receivable, net of allowances of $300,000 4,642,668 6,441,683
Inventories, net 13,700,766 12,046,450 Other current assets 495,210
394,975 Total current assets 23,051,176 25,032,123 Property, plant
and equipment, net 11,040,808 10,542,573 Goodwill 15,979,830
15,979,830 Other assets, net 697,206 703,328 Total assets
$50,769,020 $52,257,854 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $2,626,340 $2,590,804 Other
accrued liabilities 1,900,964 2,960,334 Deferred income taxes
518,489 500,238 Deferred revenue 690,000 690,000 Total current
liabilities 5,735,793 6,741,376 Deferred revenue 1,832,950
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 December 31,
2008 and June 30, 2008, respectively; 7,901,327 and 7,885,077
shares outstanding at December 31, 2008 and June 30, 2008,
respectively 102,048 101,886 Additional paid-in capital 47,612,958
47,524,084 Retained earnings 16,216,699 16,444,436 Less treasury
stock, at cost; 2,303,492 shares at December 31, 2008 and June 30,
2008, respectively (20,731,428) (20,731,428) Total stockholders'
equity 43,200,277 43,338,978 Total liabilities and stockholders'
equity $50,769,020 $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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