AHPI Allied Healthcare Products Inc

Allied Healthcare Products Returns to Profitability -- Lower production costs and expenses offset lower sales in fiscal 2004. ST. LOUIS, Aug. 26 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. (NASDAQ:AHPI) reported today that it earned a net income of $860,000, or 10 cents per diluted share, during its fourth quarter ended June 30, 2004, compared to a loss of $106,000, or a negative 1 cent per diluted share, for the quarter ended June 30, 2003. Sales for the fourth quarter of fiscal 2004 totaled $15.3 million versus $14.3 million for the fourth quarter of the previous year, an increase of 7.0 percent. Gross Profit, as a percentage of sales, improved to 30.3% in the fourth quarter of fiscal 2004, from 22.6% in the fourth quarter of 2003. Operating expenses for the fourth quarter of 2004 were lower by 6.6 percent than they were in the fourth quarter of 2003. For the 2004 fiscal year ending June 30, 2004, Allied returned to profitability despite sales that declined about 3 percent or $1.7 million from the previous year. Allied earned a net income of $1.9 million, or 23 cents per diluted share, for the 2004 fiscal year compared with a loss of $158,000, or negative 2 cents per diluted share, for fiscal 2003. Lower production costs and operating expenses in 2004 more than offset the year's sales decline. Allied cut production costs with a number of automation projects and increased in-house production of parts. Operating expenses were reduced about $0.8 million for 2004, primarily through staff reductions. Debt was reduced $6.4 million during fiscal 2004, from $10 million to $3.6 million. "Throughout fiscal 2004, strong operating results and inventory management helped us increase cash flow, improve margins and strengthen our balance sheet," said Earl R. Refsland, president and chief executive officer. "Sluggish sales have held us back, so building sales remains our top priority." 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, Twelve months ended, 2004 2003 2004 2003 Net Sales $15,261,579 $14,327,345 $59,103,313 $60,863,358 Cost of Sales 10,623,337 11,083,420 42,748,342 46,809,726 Gross Profit 4,638,242 3,243,925 16,354,971 14,053,632 Selling General And Administrative expenses 3,091,390 3,379,140 12,660,358 13,550,592 Impairment of goodwill - - - Income/(loss) from operations 1,546,852 (135,215) 3,694,613 503,040 Other Expense 6,312 9,014 8,378 41,135 Interest Expense 96,873 177,977 550,158 830,838 Other, net 103,185 186,991 558,536 871,973 Income/(loss) before provision/(benefit) for income taxes 1,443,667 (322,206) 3,136,077 (368,933) Provision/(benefit) for income taxes 583,829 (215,900) 1,261,424 (211,374) Net Income/(loss) $859,838 $(106,306) $1,874,653 $(157,559) Net Income/(loss) per share - Basic $0.11 $(0.01) $0.24 $(0.02) Net Income/(loss) per share - Diluted $0.10 $(0.01) $0.23 $(0.02) Weighted average common shares Outstanding - Basic 7,818,432 7,813,932 7,816,416 7,813,932 Weighted average common shares Outstanding - Diluted 8,053,677 7,813,932 7,984,761 7,813,932 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) June 30, 2004 June 30, 2003 ASSETS Current assets: Cash $8,256 $12,016 Accounts receivable, net of allowance for doubtful accounts of $475,000 and $475,000, respectively 7,708,969 7,848,977 Inventories, net 11,095,171 12,274,972 Income Tax receivable 130,548 392,259 Other current assets 127,127 149,995 Total current assets 19,070,071 20,678,219 Property, plant and equipment, net 11,999,927 12,630,289 Deferred income taxes 32,595 989,710 Goodwill 15,979,830 15,979,830 Other assets, net 88,867 134,528 Total assets $47,171,290 $50,412,576 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,125,593 $2,192,717 Current portion of long-term debt 1,245,476 5,409,304 Deferred income taxes 601,881 412,079 Other accrued liabilities 3,379,439 3,218,981 Total current liabilities 8,352,389 11,233,081 Long-term debt 2,366,084 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; 7,816,236 and 7,813,932 shares issued and outstanding at June 30, 2004 and 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 10,041,534 8,166,879 Total stockholders' equity 36,452,817 34,567,175 Total liabilities and stockholders' equity $47,171,290 $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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