ST. LOUIS, Feb. 8 /PRNewswire-FirstCall/ -- Cost reductions offset
a recession-driven sales decline to move Allied Healthcare Products
(NASDAQ: AHPI) narrowly back into profitability in the second
quarter of fiscal year 2010. Sales for the quarter ended December
31, 2009 declined almost 9 percent, from approximately $12.5
million during the same quarter last year to $11.4 million in the
current quarter. However, Allied's costs of sales were reduced even
more sharply, from approximately $9.8 million to less than $8.5
million, or almost 14 percent. Also, selling, general and
administrative costs for the quarter were reduced to $2.9 million
from $3.4 million, a reduction of almost 15 percent. The result was
a break-even quarter with net income of about $22,000, equating to
zero cents per share, versus a loss of $436,000, or negative six
cents per share, in the same quarter last year. Cost reductions
were achieved throughout the company, including operations,
personnel and other overhead. Allied's sales in U.S. markets for
hospital and emergency equipment have been particularly hard hit by
recession-driven budget cuts by hospitals and municipalities. "At
some point, this basic equipment must be replaced, so sales in
these markets are expected to return to normal levels. What we do
not, and cannot, know is when that will be," said Earl Refsland,
Allied president and chief executive officer. In the meantime,
Allied has made preparations to begin manufacturing a formerly
outsourced product in the second half of fiscal 2010, realizing a
significant new cost reduction, Refsland said. Allied Healthcare
Products, Inc. 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, emergency medical products
and mass casualty ventilators. 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. ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three months
ended, Six months ended, December 31, December 31,
--------------------- -------------------- 2009 2008 2009 2008 ----
---- ---- ---- Net sales $11,414,908 $12,531,342 $22,738,584
$26,972,353 Cost of sales 8,470,169 9,821,746 17,390,969 20,761,703
--------- --------- ---------- ---------- Gross profit 2,944,739
2,709,596 5,347,615 6,210,650 Selling General and administrative
expenses 2,900,113 3,400,342 6,491,891 6,583,929 ---------
--------- --------- --------- Income (loss) from operations 44,626
(690,746) (1,144,276) (373,279) Interest income (464) (18,455)
(1,448) (49,114) Interest expense 162 5,849 2,574 5,849 Other, net
11,785 11,112 22,798 23,179 ------ ------ ------ ------ 11,483
(1,494) 23,924 (20,086) ------ ------ ------ ------- Income (loss)
before provision for (benefit from) income taxes 33,143 (689,252)
(1,168,200) (353,193) Provision for (benefit from) income taxes
11,573 (253,158) (444,832) (125,456) ------ -------- --------
-------- Net income (loss) $21,570 ($436,094) ($723,368) ($227,737)
======= ========= ========= ========= Net income (loss) per share
-Basic and diluted $0.00 ($0.06) ($0.09) ($0.03) ===== ======
====== ====== Weighted average common shares Outstanding - Basic
8,092,734 7,901,327 8,040,528 7,896,279 Weighted average common
shares Outstanding - Diluted 8,217,103 7,901,327 8,040,528
7,896,279 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE
SHEET (UNAUDITED) December 31, 2009 June 30, 2009 ASSETS Current
assets: Cash and cash equivalents $2,492,160 $1,943,364 Accounts
receivable, net of allowances of $300,000 5,283,980 6,172,437
Inventories, net 12,736,488 12,663,938 Income tax receivable
1,653,573 937,273 Other current assets 308,451 327,203 -------
------- Total current assets 22,474,652 22,044,215 ----------
---------- Property, plant and equipment, net 10,209,764 10,799,089
Other assets, net 189,132 390,627 ------- ------- Total assets
$32,873,548 $33,233,931 =========== =========== LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
$2,315,688 $1,633,568 Other accrued liabilities 1,880,039 2,316,558
Deferred income taxes 168,136 419,213 Deferred revenue 688,200
688,200 ------- ------- Total current liabilities 5,052,063
5,057,539 --------- --------- Deferred revenue 1,147,000 1,491,100
--------- --------- 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; 10,396,878 and 10,204,819 shares issued at
December 31, 2009 and June 30, 2009, respectively; 8,093,386 and
7,901,327 shares outstanding at December 31, 2009 and June 30,
2009, respectively 103,969 102,048 Additional paid-in capital
48,342,689 47,632,049 Accumulated deficit (1,040,745) (317,377)
Less treasury stock, at cost; 2,303,492 shares at December 31, 2009
and June 30, 2009, respectively (20,731,428) 20,731,428)
----------- ----------- Total stockholders' equity 26,674,485
26,685,292 ---------- ---------- Total liabilities and
stockholders' equity $32,873,548 $33,233,931 ===========
=========== DATASOURCE: Allied Healthcare Products, Inc. CONTACT:
Daniel C. Dunn, Chief Financial Officer of Allied Healthcare
Products, +1-314-771-2400 Web Site: http://www.alliedhpi.com/
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