Allied Healthcare Products Reports Profitable Second Quarter and
First Half -- Lower production costs and operating expenses improve
margins. -- Debt is reduced by 29% in the first half. ST. LOUIS,
Feb. 9 /PRNewswire-FirstCall/ -- Allied Healthcare Products Inc.
today reported that its second quarter ended December 31, 2003,
with a net income of $384,000, or five cents per share, compared to
a net loss of $176,000, or negative two cents per share, for the
second quarter of fiscal 2003. Second quarter earnings improved
over the first quarter's break-even results, reflecting higher
sales in the second quarter and higher gross margins. Year-to-date
results improved from a loss of $416,000 for the first half of
fiscal 2003 to a net income of $387,000 for the first half of
fiscal 2004. Lower production costs in 2004 resulted in a $937,000
improvement in gross margins versus the prior year. Production
costs were lowered through automation and increased production of
parts in-house. Operating expenses were reduced by savings
resulting from staff reductions, as well as lower property and
casualty insurance rates. Sales for the second quarter increased by
about 2 percent compared to same quarter prior year. Sales for the
first half of the year were down 4 percent from the previous year.
Debt was reduced by $2.9 million, or 29 percent, in the first half
and has been reduced by $5.4 million, or 43 percent, in the last 12
months. "Our order levels began to show modest positive growth in
the second quarter, and we hope to strengthen those results with
new products, two of which will be launched in the next two
quarters," said Earl R. Refsland, chief executive officer.
"Meanwhile, our efforts to reduce costs have had even better
results than we projected, improving our gross margins by four
percentage points over fiscal year 2003. Two additional automation
projects became operational in January, and we estimate they will
save an additional $200,000 per year," Refsland said. "Finally,
close attention to inventory management and receivables has
continued to reduce debt and significantly improve our cash flow
position," 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 suchas
"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
andfuture 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, Six months ended, December 31, December 31, 2003 2002 2003
2002 Net Sales $15,077,334 $14,852,228 $28,884,862 $30,092,899 Cost
of Sales 10,968,845 11,467,535 21,379,800 23,524,527 Gross Profit
4,108,489 3,384,693 7,505,062 6,568,372 Selling General And Admin
3,334,657 3,424,554 6,514,568 6,747,998 Income/(loss) from
operations 773,832 (39,861) 990,494 (179,626) Interest Expense
144,774 219,708 341,716 443,642 Other, net (11,040) 10,343 (5,682)
22,887 133,734 230,051 336,034 466,529 Income/(loss) before
provision/(benefit) for income taxes 640,098 (269,912) 654,460
(646,155) Provision/(benefit) for income taxes 255,891 (93,823)
267,480 (229,668) Net Income/(loss) $384,207 $(176,089) $386,980
$(416,487) Net Income/(loss) per share - Basic and Diluted $0.05
$(0.02) $0.05 $(0.05) Weighted average common shares Outstanding -
Basic 7,814,910 7,813,932 7,814,421 7,813,932 Weighted average
common shares Outstanding - Diluted 7,995,788 7,813,932 7,974,834
7,813,932 ALLIED HEALTHCARE PRODUCTS INC. CONSOLIDATED BALANCE
SHEET (UNAUDITED) December 31, 2003 June 30, 2003 ASSETS Current
assets: Cash $73,646 $12,016 Accountsreceivable, net of allowance
for doubtful accounts of $500,000 and $475,000, respectively
7,497,617 7,848,977 Inventories, net 11,191,335 12,274,972 Income
tax receivable 392,259 392,259 Other current assets 474,325 149,995
Total current assets 19,629,182 20,678,219 Property, plant and
equipment, net 12,332,497 12,630,289 Deferred income taxes 989,710
989,710 Goodwill 15,979,830 15,979,830 Other assets, net 111,698
134,528 Totalassets $49,042,917 $50,412,576 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
$3,458,308 $2,192,717 Current portion of long-term debt 3,039,990
5,409,304 Deferred income taxes 412,079 412,079 Other current
liabilities 3,098,573 3,218,981 Total current liabilities
10,008,950 11,233,081 Long-term debt 4,068,822 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;
7,818,432 and 7,813,932 shares issued and outstanding at December
31, 2003 and June 30, 2003, respectively 101,175 101,175 Additional
paid-in capital 47,041,536 47,030,549 Common stock in treasury, at
cost (20,731,428) (20,731,428) Retained earnings 8,553,862
8,166,879 Total stockholders' equity 34,965,145 34,567,175 Total
liabilities and stockholders' equity $49,042,917 $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/
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