Allied Healthcare Products Reports Loss On Sales Decline
ST. LOUIS, Sept. 27, 2013 /PRNewswire/ -- Continuing weakness in domestic markets for hospital equipment and a decline in international sales caused a loss for Allied Healthcare Products (NASDAQ: AHPI) in its fourth quarter and for the full fiscal year 2013.
The net loss for the fourth quarter ending June 30 was about $98,000, or a negative 1 cent per basic and diluted share, compared to a net loss of about $156,000, or a negative 2 cents per share, for the prior year. Sales for the fourth quarter declined from about $10.7 million to about $10.1 million, or about 6 percent, from the previous year.
For the fiscal year, the net loss for Allied was about $1.3 million, or a negative 16 cents per basic and diluted share, versus a net loss of about $424,000, or a negative 5 cents per basic and diluted share, for the prior year. Sales for the fiscal year fell about 11 percent, from about $43.4 million to about $38.6 million.
International sales dipped in the year. The decrease in international sales was concentrated in Venezuela. The Company believes this decrease in sales to Venezuela was a result of the change in the political leadership of that country.
A bright spot in sales came from Allied's new carbon dioxide absorbent Litholyme®, used in anesthesia procedures. Absorbent sales, including Litholyme®, increased about 38 percent in the fiscal year, totaling $2.4 million. "We will continue to add to the growing base of hospitals that we have converted to Litholyme® in future quarters, further increasing sales," said Earl Refsland, Allied president and chief executive officer.
In a one-time event, Allied booked about $516,000 in income in January 2013 from the demutualization and sale of its product liability insurer.
In what will be a recurring expense, Allied paid a new excise tax on medical devices levied as part of the Affordable Care Act. The tax is 2.3 percent on certain devices and cost Allied $150,000 during the six-months since the tax was implemented on January 1, 2013.
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 products 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, |
||||||
| 2013 |
2012 |
2013 |
2012 |
||||
| Net sales |
$10,132,892 |
$10,666,797 |
$38,551,774 |
$43,445,621 |
|||
| Cost of sales |
7,655,063 |
8,171,756 |
30,309,484 |
33,484,512 |
|||
| Gross profit |
2,477,829 |
2,495,041 |
8,242,290 |
9,961,109 |
|||
| Selling General and administrative expenses |
2,600,191 |
2,727,227 |
10,735,806 |
10,610,858 |
|||
| Loss from operations |
(122,362) |
(232,186) |
(2,493,516) |
(649,749) |
|||
| Interest income |
(2,458) |
(5,384) |
(12,006) |
(27,368) |
|||
| Interest expense |
- |
- |
- |
336 |
|||
| Other, net |
7,865 |
11,183 |
(484,699) |
47,629 |
|||
| 5,407 |
5,799 |
(496,705) |
20,597 |
||||
| Loss before provision for |
|||||||
| benefit from income taxes |
(127,769) |
(237,985) |
(1,996,811) |
(670,346) |
|||
| Benefit from income taxes |
(29,802) |
(81,623) |
(740,038) |
(245,920) |
|||
| Net loss |
($97,967) |
($156,362) |
($1,256,773) |
($424,426) |
|||
| Net loss per share - Basic |
($0.01) |
($0.02) |
($0.16) |
($0.05) |
|||
| Net loss per share - Diluted |
($0.01) |
($0.02) |
($0.16) |
($0.05) |
|||
| Weighted average common shares outstanding - Basic |
8,027,147 |
8,124,386 |
8,070,645 |
8,124,386 |
|||
| Weighted average common shares outstanding - Diluted |
8,027,147 |
8,124,386 |
8,070,645 |
8,124,386 |
|||
| ALLIED HEALTHCARE PRODUCTS, INC. |
||||
| BALANCE SHEET |
||||
| (UNAUDITED) |
||||
| June 30, 2013 |
June 30, 2012 |
|||
| ASSETS |
||||
| Current assets: |
||||
| Cash and cash equivalents |
$ 3,687,919 |
$ 5,284,543 |
||
| Accounts receivable, net of allowances |
||||
| of $170,000 |
4,221,970 |
4,973,593 |
||
| Inventories, net |
9,338,343 |
10,001,226 |
||
| Income tax receivable |
36,766 |
46,042 |
||
| Other current assets |
420,978 |
400,677 |
||
| Total current assets |
17,705,976 |
20,706,081 |
||
| Property, plant and equipment, net |
9,722,344 |
9,603,556 |
||
| Deferred income taxes |
1,667,699 |
867,422 |
||
| Other assets, net |
242,712 |
300,010 |
||
| Total assets |
$ 29,338,731 |
$ 31,477,069 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Current liabilities: |
||||
| Accounts payable |
$ 1,317,202 |
$ 1,797,144 |
||
| Other accrued liabilities |
1,861,241 |
1,985,579 |
||
| Deferred income taxes |
845,539 |
802,961 |
||
| Deferred revenue |
- |
114,700 |
||
| Total current liabilities |
4,023,982 |
4,700,384 |
||
| 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 June 30, |
||||
| 2013 and June 30, 2012; 8,027,147 and 8,124,386 shares |
||||
| outstanding atJune 30, 2013 and June 30, 2012, respectively |
104,279 |
104,279 |
||
| Additional paid-in capital |
48,584,999 |
48,540,802 |
||
| Accumulated deficit |
(2,393,741) |
(1,136,968) |
||
| Less treasury stock, at cost; 2,400,731 and 2,303,492 shares at |
||||
| June 30, 2013 and June 30, 2012 |
(20,980,788) |
(20,731,428) |
||
| Total stockholders' equity |
25,314,749 |
26,776,685 |
||
| Total liabilities and stockholders' equity |
$ 29,338,731 |
$ 31,477,069 |
||
SOURCE Allied Healthcare Products
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