EX-99.1 6 v300191_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1 

 

 

 

Contact: Daniel C. Dunn
  Chief Financial Officer
  314/771-2400

  

Allied Healthcare Products Reports Break-even Quarter

 

ST. LOUIS, February 13, 2012With its markets still facing tight budget constraints, Allied Healthcare Products (NASDAQ: AHPI) reported break-even results for the second quarter of fiscal year 2012.

Net income for the quarter ending December 31, was about $23,000, or zero cents per basic and diluted share, versus $117,000, or 1 cent per basic and diluted share for the prior year. Sales for the quarter declined from about $11.4 million to $10.7 million, or about 6.1 percent, from the previous year.

For the first two quarters of fiscal 2012, net income was a negative $122,000, or a negative 2 cents per basic and diluted share, compared to net income of $29,000, or zero cents per basic and diluted share, for the prior year. Sales for the first two quarters slipped from about $23.3 million to $22.1 million, or about 5.2 percent, from the previous year.

Sales declines in other markets were partially offset by increases in domestic hospital construction and international markets of 12 and 4 percent, respectively, Allied reported.

Increases in costs for commodities such as brass and plastic resin totaled about 8 percent or $110,000 in the first two quarters. Material cost increases were offset by cost reduction projects which reduced manufacturing costs by $160,000 for the two quarters.

 

 
 

 

“We expect to achieve further cost reductions in operations in the second half of the fiscal year from projects we have underway,” said Earl Refsland, Allied Healthcare Products president and chief executive officer.

 

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 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 product 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.

 

 

 

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ALLIED HEALTHCARE PRODUCTS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

             
   December 31,  December 31,
   2011  2010  2011  2010
             
Net sales  $10,681,395   $11,402,681   $22,076,403   $23,343,414 
Cost of sales   7,946,458    8,592,712    16,935,449    17,982,718 
Gross profit   2,734,937    2,809,969    5,140,954    5,360,696 
                     
Selling General and administrative expenses   2,693,894    2,600,734    5,327,983    5,285,310 
Income (loss) from operations   41,043    209,235    (187,029)   75,386 
                     
Interest income   (7,297)   (8,067)   (16,292)   (15,542)
Interest expense   —      —      336    66 
Other, net   11,743    28,410    26,149    43,509 
    4,446    20,343    10,193    28,033 
                     
Income (loss) before provision for (benefit from) income taxes   36,597    188,892    (197,222)   47,353 
                     
Provision for (benefit from) income taxes   13,907    71,779    (74,944)   17,994 
Net income (loss)  $22,690   $117,113   $(122,278)  $29,359 
                     
Net income (loss) per share - Basic  $0.00   $0.01   $(0.02)  $0.00 
                     
Net income (loss) per share - Diluted  $0.00   $0.01   $(0.02)  $0.00 
                     
Weighted average common shares outstanding - Basic   8,124,386    8,098,366    8,124,386    8,095,876 
                     
Weighted average common shares outstanding - Diluted   8,124,834    8,119,386    8,124,386    8,114,724 

 

 

 
 

  

ALLIED HEALTHCARE PRODUCTS, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

 

   December 31, 2011  June 30, 2011
ASSETS          
Current assets:          
Cash and cash equivalents  $6,251,364   $6,512,887 
Accounts receivable, net of allowances of $300,000   4,211,786    5,366,860 
Inventories, net   11,072,733    10,553,289 
Income tax receivable   169,507    95,578 
Other current assets   503,979    213,745 
   Total current assets   22,209,369    22,742,359 
           
Property, plant and equipment, net   8,952,244    8,660,507 
Other assets, net   356,359    362,480 
   Total assets  $31,517,972   $31,765,346 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:          
Accounts payable  $2,027,981   $1,644,910 
Other accrued liabilities   1,468,468    1,645,552 
Deferred income taxes   503,894    512,572 
Deferred revenue   458,800    688,200 
   Total current liabilities   4,459,143    4,491,234 
           
Deferred revenue   —      114,700 
           
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; 10,427,878 shares issued at December 31, 2011 and June 30, 2011; 8,124,386 shares outstanding at December 31, 2011 and June 30, 2011   104,279    104,279 
Additional paid-in capital   48,520,798    48,499,103 
Accumulated deficit   (834,820)   (712,542)
Less treasury stock, at cost; 2,303,492 shares at          
  December 31, 2011 and June 30, 2011   (20,731,428)   (20,731,428)
   Total stockholders' equity   27,058,829    27,159,412 
   Total liabilities and stockholders' equity  $31,517,972   $31,765,346