ST. LOUIS, May 7 /PRNewswire-FirstCall/ -- Budget
constraints for hospitals and municipalities continued to depress
sales for Allied Healthcare Products, Inc. (Nasdaq: AHPI) but the
company managed to improve its third quarter results over last
year's performance by reducing overhead and operating costs.
Sales for the quarter ending March 31,
2010, fell about 6 percent, from about $12.4 million to $11.6 million in the current
quarter. However, Allied reduced its cost of sales even more
in the quarter, from approximately $9.9
million to less than $8.8
million, or more than 11 percent. Allied also managed
to cut its selling, general and administrative costs for the
quarter from almost $3.2 million to $2.7
million, or more than 15 percent.
As a result, Allied earned net income of about $37,500, equating to zero cents per share,
compared to a loss of $450,000, or
negative 6 cents per share, in the
same quarter last year.
Cost controls also enabled the company to increase its profit
margins and improve its cash position for the quarter.
For the nine-month period ending March
31, 2010, Allied sales declined by almost 13 percent, from
about $39.4 million to $34.4 million
in the current period. Net income for the two nine-month
periods remained virtually flat at approximately a negative
$686,000, or negative 9 cents per share, for the current period versus
a negative $678,000, also equating to
a negative 9 cents per share, for the
previous year.
"Allied is not losing sales to competitors," said Earl Refsland, Allied president and chief
executive officer. "We're losing sales to recession-driven
budget reductions by hospitals and state and local governments.
"When our markets return to more normal levels, Allied has built
a strong cost position that will drive increased profits," Refsland
said.
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 products lines include respiratory care products,
medical gas equipment, emergency medical products and mass casualty
ventilators. Allied's 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.
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ALLIED HEALTHCARE
PRODUCTS, INC.
|
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CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
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(UNAUDITED)
|
|
|
|
|
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|
|
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Three months
ended,
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Nine months
ended,
|
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March
31,
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March
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
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Net sales
|
$11,627,418
|
|
$12,389,640
|
|
$34,366,002
|
|
$39,361,993
|
|
|
Cost of sales
|
8,781,739
|
|
9,915,884
|
|
26,172,709
|
|
30,677,586
|
|
|
Gross profit
|
2,845,679
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|
2,473,756
|
|
8,193,293
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|
8,684,407
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|
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|
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Selling General and administrative
expenses
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2,705,644
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3,198,135
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|
9,197,535
|
|
9,782,064
|
|
|
Income (loss) from
operations
|
140,035
|
|
(724,379)
|
|
(1,004,242)
|
|
(1,097,657)
|
|
|
|
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|
|
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Interest income
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(2,956)
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(5,041)
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(4,403)
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(54,155)
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Interest expense
|
190
|
|
0
|
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2,764
|
|
5,849
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|
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Other, net
|
80,791
|
|
13,403
|
|
103,588
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|
36,583
|
|
|
78,025
|
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8,362
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|
101,949
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(11,723)
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Income (loss) before provision
for
|
|
|
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|
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(benefit from) income taxes
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62,010
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(732,741)
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(1,106,191)
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(1,085,934)
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Provision for (benefit from) income
taxes
|
24,480
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(282,469)
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(420,353)
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(407,925)
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Net income (loss)
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$37,530
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($450,272)
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($685,838)
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($678,009)
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Net income (loss) per share -
Basic
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$0.00
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($0.06)
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($0.09)
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($0.09)
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Net income (loss) per share -
Diluted
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$0.00
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($0.06)
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($0.09)
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($0.09)
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Weighted average common
shares
|
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|
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|
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Outstanding - Basic
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8,093,386
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|
7,901,327
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|
8,057,890
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7,897,937
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Weighted average common
shares
|
|
|
|
|
|
|
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Outstanding - Diluted
|
8,183,907
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7,901,327
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|
8,057,890
|
|
7,897,937
|
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ALLIED HEALTHCARE
PRODUCTS, INC.
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CONSOLIDATED
BALANCE SHEET
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(UNAUDITED)
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March 31,
2010
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June 30,
2009
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ASSETS
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Current assets:
|
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Cash and cash equivalents
|
$
3,273,496
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$
1,943,364
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Accounts receivable, net of
allowances
|
|
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of $300,000
|
5,371,848
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6,172,437
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Inventories, net
|
11,968,396
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12,663,938
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Income tax receivable
|
1,634,370
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|
937,273
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Other current assets
|
270,340
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|
327,203
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Total current
assets
|
22,518,450
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|
22,044,215
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Property, plant and equipment,
net
|
10,040,867
|
|
10,799,089
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|
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Other assets, net
|
186,069
|
|
390,627
|
|
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Total assets
|
$
32,745,386
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$
33,233,931
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LIABILITIES AND STOCKHOLDERS'
EQUITY
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Current liabilities:
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Accounts payable
|
$
2,140,610
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$
1,633,568
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Other accrued liabilities
|
2,055,459
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|
2,316,558
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Deferred income taxes
|
164,125
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|
419,213
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Deferred revenue
|
688,200
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688,200
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Total current
liabilities
|
5,048,394
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5,057,539
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Deferred revenue
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974,950
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1,491,100
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Commitments and
contingencies
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Stockholders' equity:
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Preferred stock; $0.01 par value;
1,500,000 shares
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authorized; no shares issued and
outstanding
|
-
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-
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Series A preferred stock; $0.01 par
value; 200,000 shares
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authorized; no shares issued and
outstanding
|
-
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-
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Common stock; $0.01 par value;
30,000,000 shares
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authorized; 10,396,878 and
10,204,819 shares issued
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at March 31, 2010 and June 30,
2009, respectively;
|
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8,093,386 and 7,901,327 shares
outstanding at
|
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March 31, 2010 and June 30,
2009, respectively
|
103,969
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|
102,048
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|
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Additional paid-in capital
|
48,352,716
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|
47,632,049
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Retained earnings
|
(1,003,215)
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(317,377)
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Less treasury stock, at cost;
2,303,492 shares at
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March 31, 2010 and June 30,
2009, respectively
|
(20,731,428)
|
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(20,731,428)
|
|
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Total stockholders'
equity
|
26,722,042
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|
26,685,292
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|
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Total liabilities and
stockholders' equity
|
$
32,745,386
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|
$
33,233,931
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SOURCE Allied Healthcare Products, Inc.