ST. LOUIS, Aug. 30 /PRNewswire-FirstCall/ --
Recession-driven budget cuts by hospitals and governmental entities
reduced sales for Allied Healthcare Products, Inc. (Nasdaq: AHPI)
throughout fiscal 2010. The company managed to offset much of
the year's sales decline by cutting overhead and operating costs.
Still, the company reported a loss for the year.
For the fiscal year ending June 30,
2010, Allied sales fell about $6
million, or more than 11.7 percent, from about $52.1 million in 2009 to $46.0 million in the current fiscal year.
The cost of sales was reduced by 13.4 percent, from about
$40.3 million to $34.9 million.
The company also cut its selling, general and administrative
costs by about 8.5 percent, from about $13.0
million to $11.9 million in the current year.
The net loss for fiscal 2010 was $600,000, or a negative seven cents per basic and diluted share.
This compared to a loss of more than $16.8 million, or a negative $2.12 per basic and diluted share, for fiscal
2009. The 2009 loss included the effect of a non-cash
accounting charge of $16.0 million
relating to the impairment of goodwill in the fourth quarter.
The 2009 goodwill impairment was caused by the decline of the
Allied stock price in the year and a general downturn in orders
caused by the recession.
Sales for the fourth quarter ending June
30, 2010, fell about 7.9 percent, from about $12.7 million to $11.7 million. As it had
throughout fiscal 2010, Allied reduced its cost of sales in the
quarter by about 8.3 percent from approximately $9.6 million to less than $8.8 million. The company also cut selling,
general and administrative costs by about 18.2 percent, or
$585,000, compared to the previous
year.
Net income for the fourth quarter of fiscal 2010 was about
$86,000, or one cent per basic and diluted share. This
compared to a loss in the prior year's fourth quarter of almost
$16.1 million, or a negative
$2.04 per basic and diluted share,
reflecting the $16.0 million
accounting charge for impairment of goodwill.
Despite the recession, Allied ended fiscal 2010 with an improved
cash position, increasing cash on hand from $1.9 million last year to $5.3 million at the end of fiscal 2010.
"Strong execution by our operations team helped Allied offset
much of the negative effects of sales declines," said Earl Refsland, president and chief executive
officer. "Sales of mass casualty ventilators we introduced in the
second half of fiscal 2009 also helped. But we could not
overcome the effects of unprecedented budget cuts by our
customers."
Surveys by Allied Healthcare Products indicate that sales
declines throughout 2010 and latter 2009 were caused by the
recession rather than losses of market share to competitors,
Refsland said.
Sales of the new mass casualty ventilators, which cost a
fraction of the price of traditional full-featured ventilators and
are designed to be operated by non-professionals after brief
instruction, totaled about $1.9
million for fiscal 2010, Refsland said. As with the
company's core products, sales of mass casualty ventilators were
depressed by budget cuts by cash-strapped healthcare customers.
Allied Healthcare Products 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.
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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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Three months ended,
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Twelve months ended,
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June 30,
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June 30,
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2010
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2009
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2010
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2009
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Net sales
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$11,668,246
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$12,710,683
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$46,034,248
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$52,072,676
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Cost of sales
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8,772,006
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9,595,502
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34,944,714
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40,273,089
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Gross profit
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2,896,240
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3,115,181
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11,089,534
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11,799,587
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Selling General and
administrative expenses
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2,674,223
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3,259,500
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11,871,758
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13,041,564
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Impairment of
goodwill
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-
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15,979,830
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-
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15,979,830
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Income (loss) from
operations
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222,017
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(16,124,149)
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(782,224)
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(17,221,807)
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Interest income
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(5,764)
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(11,971)
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(10,168)
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(60,277)
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Interest expense
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1,505
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-
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4,269
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-
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Other, net
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13,599
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13,479
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|
117,189
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50,062
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9,340
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1,508
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111,290
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(10,215)
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Income (loss) before provision
for
(benefit from) income
taxes
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212,677
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(16,125,657)
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(893,514)
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(17,211,592)
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Provision for (benefit from)
income taxes
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126,412
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(41,854)
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(293,941)
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(449,779)
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Net income (loss)
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$86,265
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($16,083,803)
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($599,573)
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($16,761,813)
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Net income (loss) per share -
Basic
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$0.01
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($2.04)
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($0.07)
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($2.12)
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Net income (loss) per share -
Diluted
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$0.01
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($2.04)
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($0.07)
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($2.12)
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Weighted average common
shares
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Outstanding - Basic
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8,093,386
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7,901,327
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8,066,740
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7,898,782
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Weighted average common
shares
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Outstanding - Diluted
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8,112,373
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7,901,327
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8,066,740
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7,898,782
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ALLIED HEALTHCARE PRODUCTS,
INC.
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CONSOLIDATED BALANCE
SHEET
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(UNAUDITED)
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June 30, 2010
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June 30, 2009
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ASSETS
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Current assets:
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Cash and cash
equivalents
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$
5,263,324
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$
1,943,364
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Accounts receivable, net of
allowances
of $300,000
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5,418,253
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6,172,437
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Inventories, net
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11,155,456
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12,663,938
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Income tax receivable
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877,665
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937,273
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Other current assets
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221,840
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327,203
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Total current
assets
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22,936,538
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22,044,215
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Property, plant and equipment,
net
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9,661,395
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10,799,089
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Other assets, net
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333,084
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390,627
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Total
assets
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$
32,931,017
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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
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$
1,950,446
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$
1,633,568
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Other accrued
liabilities
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2,241,259
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2,316,558
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Deferred income taxes
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429,699
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419,213
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Deferred revenue
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688,200
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688,200
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Total current
liabilities
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5,309,604
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5,057,539
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Deferred revenue
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802,900
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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
authorized; no shares
issued and outstanding
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-
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-
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Series A preferred stock; $0.01
par value; 200,000 shares
authorized; no shares
issued and outstanding
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-
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-
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Common stock; $0.01 par value;
30,000,000 shares
authorized; 10,396,878 and
10,204,819 shares issued
at June 30, 2010 and June
30, 2009, respectively;
8,093,386 and 7,901,327
shares outstanding at
June 30, 2010 and June 30,
2009, respectively
|
103,969
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102,048
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Additional paid-in
capital
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48,362,922
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47,632,049
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Accumulated deficit
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(916,950)
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(317,377)
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Less treasury stock, at cost;
2,303,492 shares at
June 30, 2010 and June
30, 2009, respectively
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(20,731,428)
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(20,731,428)
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Total stockholders'
equity
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26,818,513
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26,685,292
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Total liabilities
and stockholders' equity
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$
32,931,017
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$
33,233,931
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SOURCE Allied Healthcare Products, Inc.
Copyright . 30 PR Newswire