ST. LOUIS, May 12 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. (Nasdaq: AHPI) reported that its net income for the third quarter ending March 31, 2009, declined from about $100,000, or 1 cent per share, in the prior year period, to a loss of about $450,000, or a negative 6 cents per share, due to lower sales.
Net sales in the third quarter declined about 11 percent, or $1.5 million, to about $12.4 million. Sales fell in all segments except domestic hospital construction, reflecting that market's long-term contracts. International sales, which had increased more than 10 percent for the first half of fiscal 2009, declined by about 2 percent, due in part to a stronger dollar.
For the first nine months of the 2009 fiscal year, Allied net income fell from about $193,000 in 2008, or about 2 cents per share, to a loss of about $678,000, or negative 9 cents per share, for 2009. Net sales for the three quarters fell about 5.5 percent, or about $2.3 million.
The third quarter's accelerated sales decline reflects a stronger recessionary effect than Allied has experienced in previous economic downturns, said Earl Refsland, Allied president and chief executive officer. "Clearly, our near-term focus must be to align costs with sales revenues," Refsland said.
Allied achieved progress in cost reduction projects that amounted to about $330,000 in the third quarter, Refsland said. But those savings in negotiated material costs and production efficiencies could not absorb the fixed operating costs related to lower sales and shipments.
Allied also incurred about $220,000 in new product development expenses in the first three quarters of fiscal 2009 primarily associated with its new line of mass casualty ventilators specifically designed for pandemics, natural disasters and terrorist attacks.
Refsland expressed optimism for market acceptance of the new mass casualty ventilators, particularly in light of heightened public awareness that pandemics would overwhelm available ventilators in hospitals.
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 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, Nine months ended, March 31, March 31, 2009 2008 2009 2008 Net sales $12,389,640 $13,943,852 $39,361,993 $41,671,485 Cost of sales 9,915,884 10,779,631 30,677,586 32,428,408 Gross profit 2,473,756 3,164,221 8,684,407 9,243,077 Selling General and administrative expenses 3,198,135 3,013,413 9,782,064 8,988,810 Income (loss) from operations (724,379) 150,808 (1,097,657) 254,267 Interest income (5,041) (13,928) (54,155) (92,874) Interest expense - - 5,849 - Other, net 13,403 9,241 36,583 35,504 8,362 (4,687) (11,723) (57,370) Income (loss) before provision for (benefit from) income taxes (732,741) 155,495 (1,085,934) 311,637 Provision for (benefit from) income taxes (282,469) 55,824 (407,925) 118,421 Net income (loss) ($450,272) $99,671 ($678,009) $193,216 Net income (loss) per share - Basic and diluted ($0.06) $0.01 ($0.09) $0.02 Weighted average common shares Outstanding - Basic 7,901,327 7,883,577 7,897,937 7,883,577 Weighted average common shares Outstanding - Diluted 7,901,327 8,122,888 7,897,937 8,117,684
ALLIED HEALTHCARE PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) March 31, June 30, 2009 2008 ASSETS Current assets: Cash and cash equivalents $2,036,057 $6,149,015 Accounts receivable, net of allowances of $300,000 5,758,278 6,441,683 Inventories, net 13,658,441 12,046,450 Other current assets 454,631 394,975 Total current assets 21,907,407 25,032,123 Property, plant and equipment, net 10,878,246 10,542,573 Goodwill 15,979,830 15,979,830 Other assets, net 694,144 703,328 Total assets $49,459,627 $52,257,854 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,303,360 $2,590,804 Other accrued liabilities 1,530,382 2,960,334 Deferred income taxes 514,461 500,238 Deferred revenue 688,200 690,000 Total current liabilities 5,036,403 6,741,376 Deferred revenue 1,663,150 2,177,500 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; 10,204,819 and 10,188,569 shares issued at March 31, 2009 and June 30, 2008, respectively; 7,901,327 and 7,885,077 shares outstanding at March 31, 2009 and June 30, 2008, respectively 102,048 101,886 Additional paid-in capital 47,623,027 47,524,084 Retained earnings 15,766,427 16,444,436 Less treasury stock, at cost; 2,303,492 shares at March 31, 2009 and June 30, 2008, respectively (20,731,428) (20,731,428) Total stockholders' equity 42,760,074 43,338,978 Total liabilities and stockholders' equity $49,459,627 $52,257,854
|SOURCE Allied Healthcare Products, Inc.|
Copyright©2009 PR Newswire.
All rights reserved