ST. LOUIS, Nov. 5, 2010 /PRNewswire-FirstCall/ -- Despite difficult economic conditions, Allied Healthcare Products (Nasdaq: AHPI) managed to increase sales by 5.3 percent in the first quarter of fiscal year 2011. Sales increased by $600,000 to total $11.9 million compared to $11.3 million for the first quarter of fiscal 2010.
An unanticipated $350,000 in shipping and other start-up production costs for carbon dioxide absorbent products used in anesthesia procedures narrowly tipped the company into a net loss of about $88,000 for the quarter, or a negative one cent per basic and diluted share, compared to a loss of about $745,000, or a negative nine cents per basic and diluted share, for the previous year's quarter. Allied earnings in the prior year quarter were affected by a non-cash charge of $609,000 for the company's grant of stock options.
Allied Healthcare Products continued to exercise strict cost controls, reducing selling, general and administrative expenses by about $300,000, or 10.0 percent, compared to the previous year's first quarter and eliminating the effect of the $609,000 stock option expense in that period. Also, despite the net loss for the quarter, the company increased its cash balance to about $5.3 million at the end of the quarter.
A new Allied product – Litholyme™, a patented carbon dioxide absorbent formulation with the safety benefits of premium products but priced closer to non-premium offerings – has received "extremely positive" customer reviews, said Earl Refsland, president and chief executive officer, but is not expected to affect results until the third and fourth quarters.
Allied Healthcare Products 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 products 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 30,20102009Net sales
,323,676Cost of sales
2,550,7272,402,876Selling, general and administrative expenses
2,684,5763,591,776Loss from operations
662,413Other expense, net
15,10011,0147,69112,443Loss before benefit from income taxes
(141,540)(1,201,343)Benefit from income taxes
(744,938)Basic and diluted loss per share
(0.09)Weighted average common shares outstanding - basic and diluted
8,093,3867,988,321ALLIED HEALTHCARE PRODUCTS, INC.CONSOLIDATED BALANCE SHEET(UNAUDITED)September 30, 2010June 30, 2010ASSETSCurrent assets:Cash and cash equivalents
5,263,324Accounts receivable, net of allowances of $300,000
10,954,90911,155,456Income tax receivable
865,029877,665Other current assets
216,481221,840Total current assets
22,992,79122,936,538Property, plant and equipment, net
9,335,3699,661,395Other assets, net
32,931,017LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable
,950,446Other accrued liabilities
1,987,9562,241,259Deferred income taxes
688,200688,200Total current liabilities
630,850802,900Commitments and contingenciesStockholders' equity: Preferred stock; $0.01 par value; 1,500,000 sharesauthorized; no shares issued and outstanding
-- Series A preferred stock; $0.01 par value; 200,000 sharesauthorized; no shares issued and outstanding
-- Common stock; $0.01 par value; 30,000,000 sharesauthorized; 10,396,878 shares issued at September 30,2010 and June 30, 2010; 8,093,386 shares outstandingat September 30, 2010 and June 30, 2010
103,969103,969 Additional paid-in capital
48,369,94848,362,922 Accumulated deficit
(1,004,705)(916,950) Less: treasury stock, at cost; 2,303,492 shares atSeptember 30, 2010 and June 30, 2010, respectively
(20,731,428)(20,731,428)Total stockholders' equity
26,737,78426,818,513Total liabilities and stockholders' equity
|SOURCE Allied Healthcare Products, Inc.|
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