Recession Continues to Depress Sales at Allied Healthcare Products
ST. LOUIS, Nov. 6 Recession in domestic and international markets continued to depress sales for Allied Healthcare Products in the first quarter of fiscal year 2010 ending September 30, 2009.
Sales declines pushed Allied into a loss for the quarter. The net loss for the quarter was about $745,000, or negative 9 cents per share, compared to a net profit the year earlier of about $208,000, or 3 cents per share.
Sales fell about 21 percent in the quarter, from about $14.4 million in the first quarter of last year to $11.3 million in the current quarter.
Allied introduced a new product line late in fiscal 2009 - mass casualty ventilators designed for use in pandemics, natural disasters and terrorist attacks. Sales of the new products totaled $500,000 in the quarter.
Allied mass casualty ventilators address needs that traditional, full-featured ventilators do not meet, said Earl Refsland, president and chief executive officer. For example, Allied ventilators cost a fraction of the price of full-featured ventilators, can be operated by non-professionals after brief instruction and are rugged, for use in harsh field conditions. Also, Allied mass casualty ventilators have minimal maintenance requirements, making them ideal for government stockpiles, Refsland said.
A bright spot in the quarter was strong performance in cost reduction efforts in manufacturing and operations. Most of these savings represent long-term reductions that will continue to benefit the company in future quarters.
Allied earnings in the quarter were affected by a non-cash charge of $609,000 resulting from the company's grant to the chief executive officer of an option to purchase 320,000 shares of common stock in the next six years.
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 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 September 30, 2009 2008 ---- ---- Net sales $11,323,676 $14,441,011 Cost of sales 8,920,800 10,939,957 --------- ---------- Gross profit 2,402,876 3,501,054 Selling, general and Administrative expenses 3,591,776 3,183,587 --------- --------- Income (loss) from operations (1,188,900) 317,467 Interest income (984) (30,659) Interest expense 2,413 - Other expense, net 11,014 12,067 ------ ------ 12,443 (18,592) ------ ------- Income (loss) before provision for (benefit from) income taxes (1,201,343) 336,059 Provision for (benefit from) income taxes (456,405) 127,702 -------- ------- Net income (loss) $(744,938) $208,357 ========= ======== Basic and diluted earnings (loss) per share $(0.09) $0.03 ====== ===== Weighted average common shares Outstanding - Basic 7,988,321 7,891,232 Weighted average common shares Outstanding - Diluted 7,988,321 8,132,931
SOURCE Allied Healthcare Products, Inc.
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