Exhibit 99.1
(ALLIED HEALTHCARE PRODUCTS, INC. LOGO)
CONTACT: DANIEL C. DUNN
CHIEF FINANCIAL OFFICER
(314) 771-2400
ALLIED HEALTHCARE FIRST QUARTER NET INCOME
FALLS BECAUSE OF SUPPLY PROBLEMS, HIGHER MATERIAL COSTS
ST. LOUIS, November 9, 2006 - Allied Healthcare Products, Inc. (NASDAQ:
AHPI) reported that its net income fell about 57 percent to $202,000, or 3 cents
per diluted share, during its first quarter ended September 30, 2006, versus
$466,000, or 6 cents per share, for the first quarter last year.
Sales in the first quarter totaled about $14.5 million, a decline of about
$509,000, or 3.4 percent, compared to the same period last year. Most of the
sales shortfall - about $400,000 - was caused by insufficient deliveries of
components by suppliers. Actual customer order rates for the quarter were
basically flat, compared to the prior year.
Allied margins were squeezed by higher material costs. Continuing a trend
that became evident in fiscal 2006, material costs increased by 8.3 percent over
the first quarter of fiscal 2006, primarily for copper and zinc-based parts.
Suppliers' delivery problems should be resolved by the end of the second
quarter, according to Earl Refsland, president and chief executive officer.
A combination of price increases for products and purchased material cost
reductions will be put in place to offset higher material costs, Refsland said.
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 hospital and 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.
##
ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three months ended
September 30,
-------------------------
2006 2005
----------- -----------
Net sales $14,477,442 $14,986,280
Cost of sales 10,957,890 11,011,763
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Gross profit 3,519,552 3,974,517
Selling, general and administrative
expenses 3,190,997 3,169,959
----------- -----------
Income from operations 328,555 804,558
Interest income (28,169) (7,957)
Other expense, net 9,302 11,069
----------- -----------
(18,867) 3,112
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Income before provision
for income taxes 347,422 801,446
Provision for income taxes 145,788 335,605
----------- -----------
Net income $ 201,634 $ 465,841
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Basic and diluted earnings per share $ 0.03 $ 0.06
=========== ===========
Weighted average common shares
Outstanding - Basic 7,859,903 7,829,577
----------- -----------
Weighted average common shares
Outstanding - Diluted 8,065,153 8,061,758
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ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
September 30, June 30,
2006 2006
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ASSETS
Current assets:
Cash and cash equivalents $ 2,418,227 $ 2,696,324
Accounts receivable, net of allowances of $430,000 7,586,497 7,429,355
Inventories, net 11,944,922 11,491,305
Other current assets 660,555 224,853
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Total current assets 22,610,201 21,841,837
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Property, plant and equipment, net 11,063,163 11,252,934
Goodwill 15,979,830 15,979,830
Other assets, net 254,534 255,845
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Total assets $ 49,907,728 $ 49,330,446
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,670,235 $ 3,208,699
Deferred income taxes 687,056 689,942
Deferred revenue 465,000 465,000
Other accrued liabilities 2,778,569 2,834,495
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Total current liabilities 7,600,860 7,198,136
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Deferred revenue 1,356,250 1,472,500
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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; 10,178,069 shares issued at September 30, 2006
and 10,155,569 shares issued at June 30, 2006: 7,874,577
shares outstanding at September 30, 2006 and 7,852,077
shares outstanding June 30, 2006, respectively 101,781 101,556
Additional paid-in capital 47,347,131 47,258,182
Retained earnings 14,233,134 14,031,500
Less: treasury stock, at cost; 2,303,492 shares at
September 30, 2006 and June 30, 2006, respectively (20,731,428) (20,731,428)
------------ ------------
Total stockholders' equity 40,950,618 40,659,810
------------ ------------
Total liabilities and stockholders' equity $ 49,907,728 $ 49,330,446
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