ST. LOUIS, Nov. 6 /PRNewswire-FirstCall/ -- Recession in domestic and international markets continued to depress sales for Allied Healthcare Products in the first quarter of fiscal year 2010 ending September 30, 2009.
Sales declines pushed Allied into a loss for the quarter. The net loss for the quarter was about $745,000, or negative 9 cents per share, compared to a net profit the year earlier of about $208,000, or 3 cents per share.
Sales fell about 21 percent in the quarter, from about $14.4 million in the first quarter of last year to $11.3 million in the current quarter.
Allied introduced a new product line late in fiscal 2009 - mass casualty ventilators designed for use in pandemics, natural disasters and terrorist attacks. Sales of the new products totaled $500,000 in the quarter.
Allied mass casualty ventilators address needs that traditional, full-featured ventilators do not meet, said Earl Refsland, president and chief executive officer. For example, Allied ventilators cost a fraction of the price of full-featured ventilators, can be operated by non-professionals after brief instruction and are rugged, for use in harsh field conditions. Also, Allied mass casualty ventilators have minimal maintenance requirements, making them ideal for government stockpiles, Refsland said.
A bright spot in the quarter was strong performance in cost reduction efforts in manufacturing and operations. Most of these savings represent long-term reductions that will continue to benefit the company in future quarters.
Allied earnings in the quarter were affected by a non-cash charge of $609,000 resulting from the company's grant to the chief executive officer of an option to purchase 320,000 shares of common stock in the next six years.
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 product lines include respiratory care products, medical gas equipment and emergency medical products. Allied 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 September 30, 2009 2008 ---- ---- Net sales $11,323,676 $14,441,011 Cost of sales 8,920,800 10,939,957 --------- ---------- Gross profit 2,402,876 3,501,054 Selling, general and Administrative expenses 3,591,776 3,183,587 --------- --------- Income (loss) from operations (1,188,900) 317,467 Interest income (984) (30,659) Interest expense 2,413 - Other expense, net 11,014 12,067 ------ ------ 12,443 (18,592) ------ ------- Income (loss) before provision for (benefit from) income taxes (1,201,343) 336,059 Provision for (benefit from) income taxes (456,405) 127,702 -------- ------- Net income (loss) $(744,938) $208,357 ========= ======== Basic and diluted earnings (loss) per share $(0.09) $0.03 ====== ===== Weighted average common shares Outstanding - Basic 7,988,321 7,891,232 Weighted average common shares Outstanding - Diluted 7,988,321 8,132,931 ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) September 30, June 30, 2009 2009 ------------- --------- ASSETS Current assets: Cash and cash equivalents $2,298,957 $1,943,364 Accounts receivable, net of allowances of $300,000 5,339,629 6,172,437 Inventories, net 12,597,816 12,663,938 Income tax receivable 1,632,577 937,273 Other current assets 334,337 327,203 ------- ------- Total current assets 22,203,316 22,044,215 ---------- ---------- Property, plant and equipment, net 10,510,423 10,799,089 Other assets, net 387,568 390,627 ------- ------- Total assets $33,101,307 $33,233,931 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,108,441 $1,633,568 Other accrued liabilities 2,175,676 2,316,558 Deferred income taxes 171,980 419,213 Deferred revenue 688,200 688,200 ------- ------- Total current liabilities 5,144,297 5,057,539 --------- --------- Deferred revenue 1,319,050 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; 10,395,378 and 10,204,819 shares issued at September 30, 2009 and June 30, 2009, respectively; 8,091,886 and 7,901,327 shares Outstanding at September 30, 2009 and June 30, 2009, respectively 103,954 102,048 Additional paid-in capital 48,327,749 47,632,049 Accumulated deficit (1,062,315) (317,377) Less: treasury stock, at cost; 2,303,492 shares at September 30, 2009 and June 30, 2009, respectively (20,731,428) (20,731,428) ----------- ----------- Total stockholders' equity 26,637,960 26,685,292 ---------- ---------- Total liabilities and stockholders' equity $33,101,307 $33,233,931 =========== ===========
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/
