ST. LOUIS, Nov. 8, 2011 /PRNewswire/ -- Allied Healthcare
Products, Inc. (NASDAQ: AHPI) reported a loss in its first quarter
on a decline in sales.
Allied's net loss for the first quarter of its 2012 fiscal year
was approximately $145,000, or a
negative 2 cents per basic and
diluted share, versus a loss of about $88,000, or a negative 1
cent per share, in the previous year's first quarter.
Allied's sales for the quarter ending September 30, 2011 totaled about $11.4 million. This represents a decline of
approximately 4 percent from the previous year's first quarter
sales of about $11.9 million. Sales
remain constrained by recession driven budget cuts in both
hospitals and municipalities but the decline in sales between the
two periods is believed by the Company to be a result of order
timing rather than any further market declines.
The Company incurred expenses of about $400,000 in bringing production of Carbolime
in-house during the first quarter. This production expense will be
reduced by more than half in the second quarter and eliminated in
the fiscal year's third and fourth quarters, resulting in improved
margins.
Allied also reported significantly higher commodity prices in
the quarter. Prices for commodities such as brass and resin
increased by more than 20 percent over prior year levels. Prices
for non-commodity goods increased by about 4 percent over the prior
year.
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's product lines
include respiratory care products, medical gas equipment and
emergency medical products. 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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Three months
ended September 30,
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2011
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2010
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Net sales
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$
11,395,008
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$
11,940,733
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Cost of sales
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8,988,991
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9,390,006
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Gross profit
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2,406,017
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2,550,727
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Selling, general and
administrative expenses
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2,634,089
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2,684,576
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Loss from operations
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(228,072)
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(133,849)
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Other (income)
expenses:
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Interest
income
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(8,994)
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(7,475)
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Interest
expense
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336
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66
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Other expense,
net
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14,405
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15,100
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5,747
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7,691
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Loss before benefit from income
taxes
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(233,819)
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(141,540)
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Benefit from income
taxes
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(88,851)
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(53,785)
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Net loss
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$
(144,968)
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$
(87,755)
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Basic and diluted loss per
share
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$
(0.02)
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$
(0.01)
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Weighted average common
shares
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outstanding - basic and
diluted
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8,124,386
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8,093,386
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ALLIED
HEALTHCARE PRODUCTS, INC.
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CONSOLIDATED
BALANCE SHEET
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(UNAUDITED)
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September 30, 2011
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June 30, 2011
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ASSETS
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Current assets:
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Cash and cash
equivalents
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$
6,164,178
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$
6,512,887
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Accounts receivable, net of
allowances
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of $300,000
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5,146,927
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5,366,860
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Inventories, net
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10,752,057
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10,553,289
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Income tax receivable
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187,728
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95,578
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Other current assets
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456,015
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213,745
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Total current
assets
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22,706,905
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22,742,359
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Property, plant and equipment,
net
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8,855,578
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8,660,507
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Other assets, net
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359,420
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362,480
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Total
assets
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$
31,921,903
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$
31,765,346
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LIABILITIES AND STOCKHOLDERS'
EQUITY
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Current liabilities:
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Accounts payable
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$
1,796,735
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$
1,644,910
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Other accrued
liabilities
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1,961,130
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1,645,552
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Deferred income taxes
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508,457
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512,572
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Deferred revenue
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630,850
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688,200
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Total current
liabilities
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4,897,172
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4,491,234
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Deferred revenue
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-
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114,700
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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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-
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-
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authorized; no shares
issued and outstanding
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Series A preferred stock; $0.01
par value; 200,000 shares
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-
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-
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authorized; no shares
issued and outstanding
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Common stock; $0.01 par value;
30,000,000 shares
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authorized; 10,427,878
shares issued at September 30,
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2011 and June 30, 2011;
8,124,386 shares outstanding
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at September 30, 2011 and
June 30, 2011
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104,279
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104,279
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Additional paid-in
capital
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48,509,390
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48,499,103
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Accumulated deficit
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(857,510)
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(712,542)
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Less treasury stock, at cost;
2,303,492 shares at
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September 30, 2011 and
June 30, 2011
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(20,731,428)
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(20,731,428)
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Total stockholders'
equity
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27,024,731
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27,159,412
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Total liabilities
and stockholders' equity
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$
31,921,903
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$
31,765,346
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SOURCE Allied Healthcare Products, Inc.