Exhibit 99.1
November 14, 2007
Contact: | Daniel C. Dunn |
Chief Financial Officer |
(314) 771-2400 |
Allied Healthcare Net Income Falls
on Flat Sales
ST. LOUIS, November 13, 2007 - Allied Healthcare Products, Inc. (NASDAQ: AHPI) reported that its net income fell about 57 percent in the first quarter ending September 30, from about $202,000 last year, or 3 cents per share, to $87,000 in the current period, or 1 cent per share.
Sales for the period declined about 2.8 percent, from about $14.5 million last year to $14.1 million this year. Shipments were depressed somewhat in the quarter by short-term production difficulties but these issues have been resolved, the company said.
Despite sales weakness in some product areas in the quarter, Allied President and Chief Executive Officer Earl Refsland said that he expected stronger results to help the company meet its objectives for fiscal 2008.
Refsland also said that Food and Drug Administration approval of a new product for the emergency preparedness market has taken longer than expected but should be received before the end of 2007.
Allied again improved its cash position, Refsland said. The company had a cash balance of more than $4.0 million at the end of the quarter, an increase of about 10 percent over the previous quarter.
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 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.
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ALLIED HEALTHCARE PRODUCTS, INC. | |||
CONSOLIDATED STATEMENT OF OPERATIONS | |||
(UNAUDITED) |
Three months ended September 30, | |||||||
2007 | 2006 | ||||||
Net sales | $ | 14,101,618 | $ | 14,477,442 | |||
Cost of sales | 10,934,605 | 10,957,890 | |||||
Gross profit | 3,167,013 | 3,519,552 | |||||
Selling, general and administrative expenses | 3,042,969 | 3,190,997 | |||||
Income from operations | 124,044 | 328,555 | |||||
Interest income | (40,769 | ) | (28,169 | ) | |||
Other expense, net | 15,150 | 9,302 | |||||
(25,619 | ) | (18,867 | ) | ||||
Income before provision | |||||||
for income taxes | 149,663 | 347,422 | |||||
Provision for income taxes | 62,597 | 145,788 | |||||
Net income | $ | 87,066 | $ | 201,634 | |||
Basic and diluted earnings per share | $ | 0.01 | $ | 0.03 | |||
Weighted average common shares | |||||||
Outstanding - Basic | 7,883,577 | 7,859,903 | |||||
Weighted average common shares | |||||||
Outstanding - Diluted | 8,106,796 | 8,065,153 |
ALLIED HEALTHCARE PRODUCTS, INC. | ||||
CONSOLIDATED BALANCE SHEET | ||||
(UNAUDITED) |
September 30, 2007 | June 30, 2007 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,017,496 | $ | 3,638,870 | |||
Accounts receivable, net of allowances of $325,000 and $460,000, respectively | 7,395,812 | 7,251,767 | |||||
Inventories, net | 12,195,312 | 12,999,472 | |||||
Other current assets | 619,244 | 275,254 | |||||
Total current assets | 24,227,864 | 24,165,363 | |||||
Property, plant and equipment, net | 10,422,347 | 10,677,000 | |||||
Goodwill | 15,979,830 | 15,979,830 | |||||
Other assets, net | 565,221 | 496,127 | |||||
Total assets | $ | 51,195,262 | $ | 51,318,320 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,010,398 | $ | 3,040,313 | |||
Other accrued liabilities | 2,684,800 | 2,508,820 | |||||
Deferred income taxes | 734,531 | 882,001 | |||||
Deferred revenue | 465,000 | 465,000 | |||||
Total current liabilities | 6,894,729 | 6,896,134 | |||||
Deferred revenue | 1,821,250 | 1,937,500 | |||||
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 September 30, 2007 | |||||||
and June 30, 2007; 7,883,577 shares outstanding at | |||||||
September 30, 2007 and June 30, 2007 | 101,871 | 101,871 | |||||
Additional paid-in capital | 47,459,837 | 47,441,163 | |||||
Retained earnings | 15,649,003 | 15,673,080 | |||||
Less: treasury stock, at cost; 2,303,492 shares at | |||||||
September 30, 2007 and June 30, 2007 | (20,731,428 | ) | (20,731,428 | ) | |||
Total stockholders' equity | 42,479,283 | 42,484,686 | |||||
Total liabilities and stockholders' equity | $ | 51,195,262 | $ | 51,318,320 |