ST. LOUIS, Sept. 7 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. reported that its net income increased 38 percent to $869,000, or 11 cents per share, during its fourth quarter ending June 30, 2007, versus $629,000, or 8 cents per share, for the fourth quarter last year.
Despite its stronger fourth quarter, Allied experienced flat net income of $1,641,600, or 21 cents per share, compared to $1,648,600, or 21 cents per share, for the prior fiscal year.
Fourth quarter sales decreased by about 3 percent, or $417,000, compared to the last quarter of the prior year. However, lower costs and expenses more than offset the sales decline, producing a solid increase in net income despite income tax expenses for the fourth quarter of 2007 that were $606,000 higher than for the fourth quarter of 2006. The 2006 fourth quarter benefited from a settlement and resolution of state tax contingencies.
For fiscal year 2007, Allied sales declined about $1.04 million, or 2 percent, compared to 2006. Lower costs for 2007 offset the decline.
Higher prices for raw materials such as copper, brass and zinc increased costs about 5.4 percent in fiscal 2006. Despite competitive pricing pressures, Allied was able to selectively increase prices during 2007. These increases, combined with programs to cut costs, resulted in improved margins for Allied.
"We are far from satisfied with flat results for 2007," said Earl Refsland, president and chief executive officer. Refsland said the company would continue to hold the line on costs in 2008 and work to increase domestic and international sales with new products.
A weaker U.S. dollar helped boost international orders for Allied by almost 9 percent over 2006, and Refsland said that he expects this positive effect to continue to help the company in 2008.
Despite increases in inventory and capital expenditures in 2007, the company increased its cash balance by about $1 million, 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, Twelve months ended, June 30, June 30, 2007 2006 2007 2006 Net sales $14,045,798 $14,462,919 $56,500,974 $57,545,589 Cost of sales 10,061,519 11,161,944 42,028,125 43,292,746 Gross profit 3,984,279 3,300,975 14,472,849 14,252,843 Selling General and administrative expenses 2,765,157 2,918,066 12,051,500 12,112,624 Income from operations 1,219,122 382,909 2,421,349 2,140,219 Interest income (28,719) (17,002) (110,790) (52,988) Other, net 10,710 8,904 (23,839) 37,758 (18,009) (8,098) (134,629) (15,230) Income before provision for income taxes 1,237,131 391,007 2,555,978 2,155,449 Provision for income taxes 368,019 (238,345) 914,400 506,845 Net income $869,112 $629,352 $1,641,578 $1,648,604 Net income per share - Basic $0.11 $0.08 $0.21 $0.21 Net income per share - Diluted $0.11 $0.08 $0.20 $0.20 Weighted average common shares Outstanding - Basic 7,883,577 7,852,077 7,875,982 7,840,858 Weighted average common shares Outstanding - Diluted 8,111,872 8,081,626 8,085,375 8,066,311 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) June 30, 2007 June 30, 2006 ASSETS Current assets: Cash and cash equivalents $3,638,870 $2,696,324 Accounts receivable, net of allowances of $460,000 and $430,000, respectively 7,251,767 7,429,355 Inventories, net 12,999,472 11,491,305 Other current assets 275,254 224,853 Total current assets 24,165,363 21,841,837 Property, plant and equipment, net 10,677,000 11,252,934 Goodwill 15,979,830 15,979,830 Other assets, net 496,127 255,845 Total assets $51,318,320 $49,330,446 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,040,313 $3,208,699 Deferred income taxes 882,001 689,942 Deferred revenue 465,000 465,000 Other accrued liabilities 2,508,820 2,834,495 Total current liabilities 6,896,134 7,198,136 Deferred revenue 1,937,500 1,472,500 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; 10,187,069 shares issued at June 30, 2007 and 10,155,569 shares issued at June 30, 2006; 7,883,577 outstanding at June 30, 2007 and 7,852,077shares outstanding June 30, 2006 101,871 101,556 Additional paid-in capital 47,441,163 47,258,182 Retained earnings 15,673,080 14,031,500 Less treasury stock, at cost; 2,303,492 shares at June 30, 2007 and June 30, 2006 (20,731,428) (20,731,428) Total stockholders' equity 42,484,686 40,659,810 Total liabilities and stockholders' equity $51,318,320 $49,330,446
