Market Overview

Allied Healthcare Products Reports Break-Even Quarter

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Allied Healthcare Products Reports Break-Even Quarter

PR Newswire

ST. LOUIS, Feb. 13, 2012 /PRNewswire/ -- With 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.


ALLIED HEALTHCARE PRODUCTS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)










Three months ended,


Six months ended,


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

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