ST. LOUIS, Nov. 5, 2010 /PRNewswire-FirstCall/ -- Despite
difficult economic conditions, Allied Healthcare Products (Nasdaq:
AHPI) managed to increase sales by 5.3 percent in the first quarter
of fiscal year 2011. Sales increased by $600,000 to total $11.9
million compared to $11.3
million for the first quarter of fiscal 2010.
An unanticipated $350,000 in
shipping and other start-up production costs for carbon dioxide
absorbent products used in anesthesia procedures narrowly tipped
the company into a net loss of about $88,000 for the quarter, or a negative
one cent per basic and diluted share,
compared to a loss of about $745,000,
or a negative nine cents per basic
and diluted share, for the previous year's quarter. Allied earnings
in the prior year quarter were affected by a non-cash charge of
$609,000 for the company's grant of
stock options.
Allied Healthcare Products continued to exercise strict cost
controls, reducing selling, general and administrative expenses by
about $300,000, or 10.0 percent,
compared to the previous year's first quarter and eliminating the
effect of the $609,000 stock option
expense in that period. Also, despite the net loss for the quarter,
the company increased its cash balance to about $5.3 million at the end of the quarter.
A new Allied product – Litholyme™, a patented carbon dioxide
absorbent formulation with the safety benefits of premium products
but priced closer to non-premium offerings – has received
"extremely positive" customer reviews, said Earl Refsland, president and chief executive
officer, but is not expected to affect results until the third and
fourth quarters.
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 products 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,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Net sales
|
$
11,940,733
|
|
$
11,323,676
|
|
Cost of sales
|
9,390,006
|
|
8,920,800
|
|
|
|
|
|
|
Gross profit
|
2,550,727
|
|
2,402,876
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
2,684,576
|
|
3,591,776
|
|
|
|
|
|
|
Loss from operations
|
(133,849)
|
|
(1,188,900)
|
|
|
|
|
|
|
Interest income
|
(7,475)
|
|
(984)
|
|
Interest expense
|
66
|
|
2,413
|
|
Other expense, net
|
15,100
|
|
11,014
|
|
|
7,691
|
|
12,443
|
|
|
|
|
|
|
Loss before benefit from income
taxes
|
(141,540)
|
|
(1,201,343)
|
|
|
|
|
|
|
Benefit from income
taxes
|
(53,785)
|
|
(456,405)
|
|
Net loss
|
$
(87,755)
|
|
$
(744,938)
|
|
|
|
|
|
|
Basic and diluted loss per
share
|
$
(0.01)
|
|
$
(0.09)
|
|
|
|
|
|
|
Weighted average common
shares
|
|
|
|
|
outstanding - basic and
diluted
|
8,093,386
|
|
7,988,321
|
|
|
|
|
|
ALLIED
HEALTHCARE PRODUCTS, INC.
|
|
CONSOLIDATED
BALANCE SHEET
|
|
(UNAUDITED)
|
|
|
|
|
|
September
30, 2010
|
|
June 30,
2010
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
5,338,748
|
|
$
5,263,324
|
|
|
Accounts receivable, net of
allowances of $300,000
|
5,617,624
|
|
5,418,253
|
|
|
Inventories, net
|
10,954,909
|
|
11,155,456
|
|
|
Income tax receivable
|
865,029
|
|
877,665
|
|
|
Other current assets
|
216,481
|
|
221,840
|
|
|
Total current
assets
|
22,992,791
|
|
22,936,538
|
|
|
Property, plant and equipment,
net
|
9,335,369
|
|
9,661,395
|
|
|
Other assets, net
|
330,023
|
|
333,084
|
|
|
Total
assets
|
$
32,658,183
|
|
$
32,931,017
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
$
2,186,504
|
|
$
1,950,446
|
|
|
Other accrued
liabilities
|
1,987,956
|
|
2,241,259
|
|
|
Deferred income taxes
|
426,889
|
|
429,699
|
|
|
Deferred revenue
|
688,200
|
|
688,200
|
|
|
Total current
liabilities
|
5,289,549
|
|
5,309,604
|
|
|
|
|
|
|
|
Deferred revenue
|
630,850
|
|
802,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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;
10,396,878 shares issued at September 30,
|
|
|
|
|
|
2010 and
June 30, 2010; 8,093,386 shares outstanding
|
|
|
|
|
|
at September
30, 2010 and June 30, 2010
|
103,969
|
|
103,969
|
|
|
Additional paid-in
capital
|
48,369,948
|
|
48,362,922
|
|
|
Accumulated
deficit
|
(1,004,705)
|
|
(916,950)
|
|
|
Less: treasury stock, at
cost; 2,303,492 shares at
|
|
|
|
|
|
September
30, 2010 and June 30, 2010, respectively
|
(20,731,428)
|
|
(20,731,428)
|
|
|
Total
stockholders' equity
|
26,737,784
|
|
26,818,513
|
|
|
Total
liabilities and stockholders' equity
|
$
32,658,183
|
|
$
32,931,017
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Allied Healthcare Products, Inc.