Market Overview

Allied Healthcare Reports Loss On Depressed Sales

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ST. LOUIS, Sept. 28, 2012 /PRNewswire/ -- Allied Healthcare Products, Inc., (NASDAQ: AHPI) reported a loss for the fourth quarter and fiscal year on sales depressed by the lingering effects of recession and uncertainty about future healthcare legislation.

Net loss for the fourth quarter ending June 30 was $156,000, or negative 2 cents per share, compared to net income of almost $115,000, or 1 cent per share, for the previous year. Sales for the quarter fell from about $12.1 million to about $10.7 million, or about 11.6 percent, from the previous year.

For the fiscal year, Allied's net loss was $424,000, or a negative 5 cents per share, compared to net income of $204,000, or 3 cents per share, for the previous year. Sales for the year declined from about $46.8 million to $43.4 million, or about 7.3 percent.

The one market that registered an increase for Allied was international sales. Boosted by increases mostly from Central and South America, international sales increased about 5.5 percent to about $9.6 million during the fiscal year.

Allied incurred higher than expected costs for new products in 2012. "Capital expenditures of about $1.5 million supported new product development efforts," said Earl Refsland, Allied Healthcare Products president and chief executive officer. "We should see positive sales results within the next two quarters from investment in our new CO2 absorbent Litholyme® product."

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.

STATEMENT OF OPERATIONS

(UNAUDITED)










Three months ended,


Twelve months ended,


June 30,


June 30,


2012


2011


2012


2011









Net sales

$10,666,797


$12,101,826


$43,445,621


$46,783,436

Cost of sales

8,171,756


9,068,116


33,484,512


35,780,657

Gross profit

2,495,041


3,033,710


9,961,109


11,002,779

















Selling, general and administrative expenses

2,727,227


2,813,753


10,610,858


10,593,869

Income (loss) from operations

(232,186)


219,957


(649,749)


408,910

















Interest income

(5,384)


(9,041)


(27,368)


(32,733)

Interest expense

-


-


336


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