EX-99.1 6 v093886_ex99-1.htm
Exhibit 99.1

allied logo
 
November 14, 2007

Contact:
Daniel C. Dunn
  Chief Financial Officer
  (314) 771-2400
 
Allied Healthcare Net Income Falls
on Flat Sales

ST. LOUIS, November 13, 2007 - Allied Healthcare Products, Inc. (NASDAQ: AHPI) reported that its net income fell about 57 percent in the first quarter ending September 30, from about $202,000 last year, or 3 cents per share, to $87,000 in the current period, or 1 cent per share.
 
Sales for the period declined about 2.8 percent, from about $14.5 million last year to $14.1 million this year. Shipments were depressed somewhat in the quarter by short-term production difficulties but these issues have been resolved, the company said.
 
Despite sales weakness in some product areas in the quarter, Allied President and Chief Executive Officer Earl Refsland said that he expected stronger results to help the company meet its objectives for fiscal 2008.
 
Refsland also said that Food and Drug Administration approval of a new product for the emergency preparedness market has taken longer than expected but should be received before the end of 2007.
 
Allied again improved its cash position, Refsland said. The company had a cash balance of more than $4.0 million at the end of the quarter, an increase of about 10 percent over the previous quarter.
 
Allied Healthcare Products, Inc. is a leading manufacturer of respiratory care products, medical gas equipment and emergency medical products used in a wide range of alternate care settings.

 
“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,
  
   
2007
 
2006
  
           
Net sales
  
$
14,101,618
  
$
14,477,442
  
Cost of sales
    
10,934,605
   
10,957,890
 
               
Gross profit
    
3,167,013
   
3,519,552
 
               
Selling, general and administrative expenses
    
3,042,969
   
3,190,997
 
               
Income from operations
    
124,044
   
328,555
 
               
Interest income
    
(40,769
)
  
(28,169
)
Other expense, net
    
15,150
   
9,302
 
     
(25,619
)
  
(18,867
)
               
Income before provision
              
for income taxes
    
149,663
   
347,422
 
               
Provision for income taxes
    
62,597
   
145,788
 
Net income
  
$
87,066
  
$
201,634
  
               
Basic and diluted earnings per share
  
$
0.01
  
$
0.03
  
               
Weighted average common shares
              
Outstanding - Basic
    
7,883,577
   
7,859,903
 
               
Weighted average common shares
              
Outstanding - Diluted
    
8,106,796
   
8,065,153
 
 

 ALLIED HEALTHCARE PRODUCTS, INC.
 CONSOLIDATED BALANCE SHEET
 (UNAUDITED)
 
   
September 30,
2007
 
June 30,
2007
  
ASSETS
          
Current assets:
          
Cash and cash equivalents
  
$
4,017,496
  
$
3,638,870
  
Accounts receivable, net of allowances of $325,000 and $460,000, respectively
    
7,395,812
    
7,251,767
  
Inventories, net
    
12,195,312
   
12,999,472
 
Other current assets
    
619,244
   
275,254
 
Total current assets
    
24,227,864
   
24,165,363
 
Property, plant and equipment, net
    
10,422,347
   
10,677,000
 
Goodwill
    
15,979,830
   
15,979,830
 
Other assets, net
    
565,221
   
496,127
 
Total assets
  
$
51,195,262
  
$
51,318,320
  
               
LIABILITIES AND STOCKHOLDERS' EQUITY
              
Current liabilities:
              
Accounts payable
  
$
3,010,398
  
$
3,040,313
  
Other accrued liabilities
    
2,684,800
   
2,508,820
 
Deferred income taxes
    
734,531
   
882,001
 
Deferred revenue
    
465,000
   
465,000
 
Total current liabilities
    
6,894,729
   
6,896,134
 
               
Deferred revenue
    
1,821,250
   
1,937,500
 
               
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; 10,187,069 shares issued at September 30, 2007
              
and June 30, 2007; 7,883,577 shares outstanding at
              
September 30, 2007 and June 30, 2007
    
101,871
   
101,871
 
Additional paid-in capital
    
47,459,837
   
47,441,163
 
Retained earnings
    
15,649,003
   
15,673,080
 
Less: treasury stock, at cost; 2,303,492 shares at
              
September 30, 2007 and June 30, 2007
    
(20,731,428
)
  
(20,731,428
)
Total stockholders' equity
    
42,479,283
   
42,484,686
 
Total liabilities and stockholders' equity
  
$
51,195,262
  
$
51,318,320