ST. LOUIS, May 12 /PRNewswire-FirstCall/ -- Allied Healthcare
Products, Inc. (NASDAQ:AHPI) reported that its net income for the
third quarter ending March 31, 2009, declined from about $100,000,
or 1 cent per share, in the prior year period, to a loss of about
$450,000, or a negative 6 cents per share, due to lower sales. Net
sales in the third quarter declined about 11 percent, or $1.5
million, to about $12.4 million. Sales fell in all segments except
domestic hospital construction, reflecting that market's long-term
contracts. International sales, which had increased more than 10
percent for the first half of fiscal 2009, declined by about 2
percent, due in part to a stronger dollar. For the first nine
months of the 2009 fiscal year, Allied net income fell from about
$193,000 in 2008, or about 2 cents per share, to a loss of about
$678,000, or negative 9 cents per share, for 2009. Net sales for
the three quarters fell about 5.5 percent, or about $2.3 million.
The third quarter's accelerated sales decline reflects a stronger
recessionary effect than Allied has experienced in previous
economic downturns, said Earl Refsland, Allied president and chief
executive officer. "Clearly, our near-term focus must be to align
costs with sales revenues," Refsland said. Allied achieved progress
in cost reduction projects that amounted to about $330,000 in the
third quarter, Refsland said. But those savings in negotiated
material costs and production efficiencies could not absorb the
fixed operating costs related to lower sales and shipments. Allied
also incurred about $220,000 in new product development expenses in
the first three quarters of fiscal 2009 primarily associated with
its new line of mass casualty ventilators specifically designed for
pandemics, natural disasters and terrorist attacks. Refsland
expressed optimism for market acceptance of the new mass casualty
ventilators, particularly in light of heightened public awareness
that pandemics would overwhelm available ventilators in hospitals.
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, Nine months ended, March 31, March 31, 2009 2008 2009 2008
Net sales $12,389,640 $13,943,852 $39,361,993 $41,671,485 Cost of
sales 9,915,884 10,779,631 30,677,586 32,428,408 Gross profit
2,473,756 3,164,221 8,684,407 9,243,077 Selling General and
administrative expenses 3,198,135 3,013,413 9,782,064 8,988,810
Income (loss) from operations (724,379) 150,808 (1,097,657) 254,267
Interest income (5,041) (13,928) (54,155) (92,874) Interest expense
- - 5,849 - Other, net 13,403 9,241 36,583 35,504 8,362 (4,687)
(11,723) (57,370) Income (loss) before provision for (benefit from)
income taxes (732,741) 155,495 (1,085,934) 311,637 Provision for
(benefit from) income taxes (282,469) 55,824 (407,925) 118,421 Net
income (loss) ($450,272) $99,671 ($678,009) $193,216 Net income
(loss) per share - Basic and diluted ($0.06) $0.01 ($0.09) $0.02
Weighted average common shares Outstanding - Basic 7,901,327
7,883,577 7,897,937 7,883,577 Weighted average common shares
Outstanding - Diluted 7,901,327 8,122,888 7,897,937 8,117,684
ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET
(UNAUDITED) March 31, June 30, 2009 2008 ASSETS Current assets:
Cash and cash equivalents $2,036,057 $6,149,015 Accounts
receivable, net of allowances of $300,000 5,758,278 6,441,683
Inventories, net 13,658,441 12,046,450 Other current assets 454,631
394,975 Total current assets 21,907,407 25,032,123 Property, plant
and equipment, net 10,878,246 10,542,573 Goodwill 15,979,830
15,979,830 Other assets, net 694,144 703,328 Total assets
$49,459,627 $52,257,854 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $2,303,360 $2,590,804 Other
accrued liabilities 1,530,382 2,960,334 Deferred income taxes
514,461 500,238 Deferred revenue 688,200 690,000 Total current
liabilities 5,036,403 6,741,376 Deferred revenue 1,663,150
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 March 31,
2009 and June 30, 2008, respectively; 7,901,327 and 7,885,077
shares outstanding at March 31, 2009 and June 30, 2008,
respectively 102,048 101,886 Additional paid-in capital 47,623,027
47,524,084 Retained earnings 15,766,427 16,444,436 Less treasury
stock, at cost; 2,303,492 shares at March 31, 2009 and June 30,
2008, respectively (20,731,428) (20,731,428) Total stockholders'
equity 42,760,074 43,338,978 Total liabilities and stockholders'
equity $49,459,627 $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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