AHPI Allied Healthcare Products Inc

Allied Healthcare Products Reports Break-Even First Quarter ST. LOUIS, Nov. 12 /PRNewswire-FirstCall/ -- Allied Healthcare Products Inc. today reported that its first quarter ended September 30, 2003 was a break-even quarter with net income of $3,000, or zero earnings per share, compared to a net loss of $240,000, or a loss of three cents per share, for the first quarter of fiscal 2003. Revenues for the first quarter of fiscal 2004, historically the weakest quarter of the year for Allied, were $13.8 million compared with $15.2 million in the prior year period. Lower production costs and operating expenses in 2004 offset lower sales to produce the improved results. The Company also benefited from a one-time liquidation distribution of $240,000 from the sale of a mutual insurance company, the Company's former health care benefit provider. Allied realized production cost savings of about $400,000 in the first quarter of fiscal 2004. These savings increased gross margins by two percentage points over the prior year's first quarter. Operating expenses were about $153,000 lower than the prior year. "We are disappointed in our sales performance but heartened by our ability to lower production cost and operating expenses," said Earl R. Refsland, chief executive officer. "On the sales side, while our shipping levels were down 9 percent from the prior year's first quarter, actual order levels were not quite so depressed, showing a 3 percent drop. "On the cost side, we will realize additional savings from new automated equipment that will be installed this December, and we will continue to bring production of machined parts in-house. Also, the 11 percent reduction in overhead staff we implemented last July will have a positive effect on pretax profits of about $300,000 per quarter for the remainder of this year. Because of the timing and severance payments, only a small part of this savings was realized in the first quarter," Refsland said. "Also during the quarter, we continued to pay down debt by $1.3 million. Over the past 12 months we have paid down $4.4 million in debt through improved performance on receivables and inventory management," Refsland said. Allied Healthcare Products Inc. is a leading manufacturer of respiratory care products, medical gas equipment and emergency medical products used in a wide range of hospital and alternate care settings. "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, 2003 2002 Net Sales $13,807,529 $15,240,671 Cost of Sales 10,410,955 12,056,992 Gross Profit 3,396,574 3,183,679 Selling, general and administrative expenses 3,179,912 3,323,444 Income/(loss) from operations 216,662 (139,765) Interest Expense 196,941 223,934 Other Expense 5,359 12,544 Other, net 202,300 236,478 Income/(loss) before provision/(benefit) for income taxes 14,362 (376,243) Provision/(benefit) for income taxes 11,589 (135,845) Net Income/(loss) $2,773 $(240,398) Net Income/(loss) per share - Basic and Diluted $- $(0.03) Weighted average common shares Outstanding - Basic 7,813,932 7,813,932 Weighted average common shares Outstanding - Diluted 7,951,334 7,813,932 ALLIED HEALTHCARE PRODUCTS INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) September 30, 2003 June 30, 2003 ASSETS Current assets: Cash $12,618 $12,016 Accounts receivable, net of allowance for doubtful accounts of $500,000 and $475,000, respectively 7,695,905 7,848,977 Inventories, net 11,746,140 12,274,972 Income tax receivable 392,259 392,259 Other current assets 432,711 149,995 Total current assets 20,279,633 20,678,219 Property, plant and equipment, net 12,498,458 12,630,289 Deferred income taxes 989,710 989,710 Goodwill 15,979,830 15,979,830 Other assets, net 123,113 134,528 Total assets $49,870,744 $50,412,576 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,953,406 $2,192,717 Current portion of long-term debt 4,312,898 5,409,304 Deferred income taxes 412,079 412,079 Other accrued liabilities 3,252,230 3,218,981 Total current liabilities 10,930,613 11,233,081 Long-term debt 4,370,183 4,612,320 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; 7,813,932 shares issued and outstanding at September 30, 2003 and June 30, 2003 101,175 101,175 Additional paid-in capital 47,030,549 47,030,549 Common stock in treasury, at cost (20,731,428) (20,731,428) Retained earnings 8,169,652 8,166,879 Total stockholders' equity 34,569,948 34,567,175 Total liabilities and stockholders' equity $49,870,744 $50,412,576 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/

Copyright