AHPI Allied Healthcare Products Inc

Allied Healthcare Products Reports Increased Profit Despite Lower Sales -- Lower production costs and expenses offset sales drop. ST. LOUIS, April 30 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. reported today that it earned a net income of $628,000, or 8 cents per share, during its third quarter ended March 31, 2004, compared to $365,000, or 5 cents per share, for the third quarter of fiscal 2003. Year-to-date net income climbed to about $1 million, or 13 cents per share, compared to a net loss of $51,000, or negative 1 cent per share, for the same period in fiscal 2003. Allied increased net income for the quarter compared to fiscal 2003 despite sales that declined from about $16.4 million to $15.0 million. Year- to-date sales for Allied were down by about 5.8 percent, or $43.8 million for 2004 versus $46.5 million for 2003. However, lower production costs and operating expenses have more than offset this sales decline. Allied's production costs have been lowered through automation projects and increased in-house production of parts. Operating expenses also have been cut, primarily by staff reductions. Interest expense declined $98,000 for the quarter and $200,000 for the fiscal year, as debt has been reduced by about $4.7 million this fiscal year in addition to a reduction of $2.1 million in fiscal year 2003. Earl R. Refsland, president, noted that Allied "continues to increase cash flow from operations and inventory management, enabling us to further reduce debt and strengthen the balance sheet. Our major focus now is to build sales." 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, Nine months ended, March 31, March 31, 2004 2003 2004 2003 Net Sales $14,956,873 $16,443,114 $43,841,734 $46,536,013 Cost of Sales 10,745,206 12,201,779 32,125,005 35,726,306 Gross Profit 4,211,667 4,241,335 11,716,729 10,809,707 Selling General And Admin 3,054,399 3,423,454 9,568,968 10,171,452 Income from operations 1,157,268 817,881 2,147,761 638,255 Interest Expense 111,570 209,220 453,285 652,861 Other, net 7,748 9,234 2,066 32,121 119,318 218,454 455,351 684,982 Income/(loss) before provision for income taxes 1,037,950 599,427 1,692,410 (46,727) Provision for income taxes 410,115 234,194 677,595 4,527 Net Income/(loss) $627,835 $365,233 $1,014,815 $(51,254) Earnings/(loss) per share - Basic and Diluted $0.08 $0.05 $0.13 $(0.01) Weighted average common shares Outstanding - Basic 7,818,432 7,813,932 7,815,748 7,813,932 Weighted average common shares Outstanding - Diluted 8,005,365 7,909,158 7,957,881 7,956,448 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) March 31, 2004 June 30, 2003 ASSETS Current assets: Cash $11,230 $12,016 Accounts receivable, net of allowance for doubtful accounts of $484,589 and $475,000, respectively 7,418,561 7,848,977 Inventories, net 11,004,904 12,274,972 Income tax receivable 172,856 392,259 Other current assets 403,007 149,995 Total current assets 19,010,558 20,678,219 Property, plant and equipment, net 12,131,818 12,630,289 Deferred income taxes 989,710 989,710 Goodwill 15,979,830 15,979,830 Other assets, net 100,283 134,528 Total assets $48,212,199 $50,412,576 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,753,009 $2,192,717 Current portion of long-term debt 1,533,308 5,409,304 Deferred income taxes 412,079 412,079 Other current liabilities 4,153,370 3,218,981 Total current liabilities 8,851,766 11,233,081 Long-term debt 3,767,453 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 March 31, 2004 and June 30, 2003, respectively 101,219 101,175 Additional paid-in capital 47,041,492 47,030,549 Common stock in treasury, at cost (20,731,428) (20,731,428) Retained earnings 9,181,697 8,166,879 Total stockholders' equity 35,592,980 34,567,175 Total liabilities and stockholders' equity $48,212,199 $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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