ST. LOUIS, Nov. 6 /PRNewswire-FirstCall/ -- Recession in domestic
and international markets continued to depress sales for Allied
Healthcare Products in the first quarter of fiscal year 2010 ending
September 30, 2009. Sales declines pushed Allied into a loss for
the quarter. The net loss for the quarter was about $745,000, or
negative 9 cents per share, compared to a net profit the year
earlier of about $208,000, or 3 cents per share. Sales fell about
21 percent in the quarter, from about $14.4 million in the first
quarter of last year to $11.3 million in the current quarter.
Allied introduced a new product line late in fiscal 2009 - mass
casualty ventilators designed for use in pandemics, natural
disasters and terrorist attacks. Sales of the new products totaled
$500,000 in the quarter. Allied mass casualty ventilators address
needs that traditional, full-featured ventilators do not meet, said
Earl Refsland, president and chief executive officer. For example,
Allied ventilators cost a fraction of the price of full-featured
ventilators, can be operated by non-professionals after brief
instruction and are rugged, for use in harsh field conditions.
Also, Allied mass casualty ventilators have minimal maintenance
requirements, making them ideal for government stockpiles, Refsland
said. A bright spot in the quarter was strong performance in cost
reduction efforts in manufacturing and operations. Most of these
savings represent long-term reductions that will continue to
benefit the company in future quarters. Allied earnings in the
quarter were affected by a non-cash charge of $609,000 resulting
from the company's grant to the chief executive officer of an
option to purchase 320,000 shares of common stock in the next six
years. 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
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
September 30, 2009 2008 ---- ---- Net sales $11,323,676 $14,441,011
Cost of sales 8,920,800 10,939,957 --------- ---------- Gross
profit 2,402,876 3,501,054 Selling, general and Administrative
expenses 3,591,776 3,183,587 --------- --------- Income (loss) from
operations (1,188,900) 317,467 Interest income (984) (30,659)
Interest expense 2,413 - Other expense, net 11,014 12,067 ------
------ 12,443 (18,592) ------ ------- Income (loss) before
provision for (benefit from) income taxes (1,201,343) 336,059
Provision for (benefit from) income taxes (456,405) 127,702
-------- ------- Net income (loss) $(744,938) $208,357 =========
======== Basic and diluted earnings (loss) per share $(0.09) $0.03
====== ===== Weighted average common shares Outstanding - Basic
7,988,321 7,891,232 Weighted average common shares Outstanding -
Diluted 7,988,321 8,132,931 ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED BALANCE SHEET (UNAUDITED) September 30, June 30, 2009
2009 ------------- --------- ASSETS Current assets: Cash and cash
equivalents $2,298,957 $1,943,364 Accounts receivable, net of
allowances of $300,000 5,339,629 6,172,437 Inventories, net
12,597,816 12,663,938 Income tax receivable 1,632,577 937,273 Other
current assets 334,337 327,203 ------- ------- Total current assets
22,203,316 22,044,215 ---------- ---------- Property, plant and
equipment, net 10,510,423 10,799,089 Other assets, net 387,568
390,627 ------- ------- Total assets $33,101,307 $33,233,931
=========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $2,108,441 $1,633,568 Other
accrued liabilities 2,175,676 2,316,558 Deferred income taxes
171,980 419,213 Deferred revenue 688,200 688,200 ------- -------
Total current liabilities 5,144,297 5,057,539 --------- ---------
Deferred revenue 1,319,050 1,491,100 --------- ---------
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;
10,395,378 and 10,204,819 shares issued at September 30, 2009 and
June 30, 2009, respectively; 8,091,886 and 7,901,327 shares
Outstanding at September 30, 2009 and June 30, 2009, respectively
103,954 102,048 Additional paid-in capital 48,327,749 47,632,049
Accumulated deficit (1,062,315) (317,377) Less: treasury stock, at
cost; 2,303,492 shares at September 30, 2009 and June 30, 2009,
respectively (20,731,428) (20,731,428) ----------- -----------
Total stockholders' equity 26,637,960 26,685,292 ----------
---------- Total liabilities and stockholders' equity $33,101,307
$33,233,931 =========== =========== 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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