Market Overview

Allied Healthcare Products Reports Loss On Depressed Sales

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ST. LOUIS, Nov. 13, 2013 /PRNewswire/ -- Allied Healthcare Products, Inc., (NASDAQ: AHPI) reported a loss in the first quarter of its 2014 fiscal year on sales depressed by continuing sluggish economic conditions in the hospital market and related uncertainty about how new healthcare legislation will evolve.

The net loss for the first quarter ending September 30 was about $591,000, or a negative 7 cents per basic and diluted share. That compares to a net loss in the prior year of about $411,000, or 5 cents per share.

Sales for the first quarter of fiscal 2014 declined from about $9.3 million for the prior year to about $8.7 million, or about 6 percent.

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, the outcome of litigation proceedings 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 September 30,


2013


2012





Net sales

$             8,708,297


$         9,287,091

Cost of sales

6,947,731


7,308,116





Gross profit

1,760,566


1,978,975





Selling, general and administrative expenses

2,622,202


2,638,575





Loss from operations

(861,636)


(659,600)





Interest income

(1,890)


(4,226)

Other expense, net

8,723


7,581


6,833


3,355





Loss before benefit from income taxes

(868,469)


(662,955)





Benefit from income taxes

(277,910)


(251,923)

Net loss

$               (590,559)


$           (411,032)





Basic and diluted loss per share

$                     (0.07)


$                 (0.05)





Weighted average common shares




   outstanding - basic and diluted

8,027,147


8,124,386

 

ALLIED HEALTHCARE PRODUCTS, INC.

BALANCE SHEET

(UNAUDITED)








September 30, 2013


June 30, 2013

ASSETS




Current assets:





Cash and cash equivalents

$           3,077,132


$         3,687,919


Accounts receivable, net of allowances





  of $170,000

3,625,782


4,221,970


Inventories, net

10,245,692


9,338,343


Income tax receivable

48,520


36,766


Other current assets

606,946


420,978


    Total current assets

17,604,072


17,705,976


Property, plant and equipment, net

9,618,798


9,722,344


Deferred income taxes

1,943,627


1,667,699


Other assets, net

228,824


242,712


    Total assets

$         29,395,321


$       29,338,731






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$           1,695,665


$         1,317,202


Other accrued liabilities

2,126,954


1,861,241


Deferred income taxes

843,557


845,539


    Total current liabilities

4,666,176


4,023,982






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; 10,427,878 shares issued at September 30, 





  2013 and June 30, 2013; 8,027,147 shares outstanding





  at September 30, 2013 and June 30, 2013

104,279


104,279


Additional paid-in capital

48,589,954


48,584,999


Accumulated deficit

(2,984,300)


(2,393,741)


Less treasury stock, at cost; 2,400,731 shares at





   September 30, 2013 and June 30, 2013

(20,980,788)


(20,980,788)


    Total stockholders' equity

24,729,145


25,314,749


    Total liabilities and stockholders' equity

$         29,395,321


$       29,338,731

 

SOURCE Allied Healthcare Products, Inc.

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