8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

August 30, 2010

ALLIED HEALTHCARE PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-19266	25-1370721
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1720 Sublette Avenue, St. Louis, Missouri	63110
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 

(314) 771-2400

Not applicable 

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operation and Financial Condition.

On August 30, 2010, Allied Healthcare Products, Inc. (the “Company”) issued a press release setting forth results for the fourth quarter and year ended June 30, 2010.  The press release is attached hereto as Exhibit 99.1 and incorporated herein by this reference.  The press release and the information included in this Item 2.02 shall not be deemed “filed” with the Commission.

Item 9.01 Financial Statements and Exhibits.

(a)  Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits.

Exhibit

Number           Description

99                    Press Release dated August 30, 2010

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ALLIED HEALTHCARE PRODUCTS, INC.
	By:
Date:  August 30, 2010		/s/  Daniel C. Dunn
		Daniel C. Dunn
		Chief Financial Officer

 

EX-99.1

Exhibit  99.1

Contact:

Daniel C. Dunn

Chief Financial Officer

314/771-2400

Recession Leads to Sales Decline and Loss

For Allied Healthcare Products in Fiscal 2010

ST. Louis, August 30, 2010 – Recession-driven budget cuts by hospitals and governmental entities reduced sales for Allied Healthcare Products, Inc. (NASDAQ: AHPI) throughout fiscal 2010.   The company managed to offset much of the year’s sales decline by cutting overhead and operating costs.  Still, the company reported a loss for the year.

For the fiscal year ending June 30, 2010, Allied sales fell about $6 million, or more than 11.7 percent, from about $52.1 million in 2009 to $46.0 million in the current fiscal year.  The cost of sales was reduced by 13.4 percent, from about $40.3 million to $34.9 million.  The company also cut its selling, general and administrative costs by about 8.5 percent, from about $13.0 million to $11.9 million in the current year.

The net loss for fiscal 2010 was $600,000, or a negative seven cents per basic and diluted share.  This compared to a loss of more than $16.8 million, or a negative $2.12 per basic and diluted share, for fiscal 2009.  The 2009 loss included the effect of a non-cash accounting charge of $16.0 million relating to the impairment of goodwill in the fourth quarter.  The 2009 goodwill impairment was caused by the decline of the Allied stock price in the year and a general downturn in orders caused by the recession.

 

Sales for the fourth quarter ending June 30, 2010, fell about 7.9 percent, from about $12.7 million to $11.7 million.  As it had throughout fiscal 2010, Allied reduced its cost of sales in the quarter by about 8.3 percent from approximately $9.6 million to less than $8.8 million.  The company also cut selling, general and administrative costs by about 18.2 percent, or $585,000, compared to the previous year.

Net income for the fourth quarter of fiscal 2010 was about $86,000, or one cent per basic and diluted share.  This compared to a loss in the prior year’s fourth quarter of almost $16.1 million, or a negative $2.04 per basic and diluted share, reflecting the $16.0 million accounting charge for impairment of goodwill.

Despite the recession, Allied ended fiscal 2010 with an improved cash position, increasing cash on hand from $1.9 million last year to $5.3 million at the end of fiscal 2010.

“Strong execution by our operations team helped Allied offset much of the negative effects of sales declines,” said Earl Refsland, president and chief executive officer. “Sales of mass casualty ventilators we introduced in the second half of fiscal 2009 also helped.  But we could not overcome the effects of unprecedented budget cuts by our customers.”

Surveys by Allied Healthcare Products indicate that sales declines throughout 2010 and latter 2009 were caused by the recession rather than losses of market share to competitors, Refsland said.

Sales of the new mass casualty ventilators, which cost a fraction of the price of traditional full-featured ventilators and designed to be operated by non-professionals after brief instruction, totaled about $1.9 million for fiscal 2010, Refsland said.  As with the company’s core products, sales of mass casualty ventilators were depressed by budget cuts by cash-strapped healthcare customers.

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 products 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,						Twelve months ended,
	June 30,						June 30,
	2010			2009			2010			2009
Net sales	$	11,668,246		$	12,710,683		$	46,034,248		$	52,072,676
Cost of sales		8,772,006			9,595,502			34,944,714			40,273,089
Gross profit		2,896,240			3,115,181			11,089,534			11,799,587
Selling General and administrative expenses		2,674,223			3,259,500			11,871,758			13,041,564
Impairment of goodwill		-			15,979,830			-			15,979,830
Income (loss) from operations		222,017			(16,124,149	)		(782,224	)		(17,221,807	)
Interest income		(5,764	)		(11,971	)		(10,168	)		(60,277	)
Interest expense		1,505			-			4,269			-
Other, net		13,599			13,479			117,189			50,062
		9,340			1,508			111,290			(10,215	)
Income (loss) before provision for
(benefit from) income taxes		212,677			(16,125,657	)		(893,514	)		(17,211,592	)
Provision for (benefit from) income taxes		126,412			(41,854	)		(293,941	)		(449,779	)
Net income (loss)	$	86,265		$	(16,083,803	)	$	(599,573	)	$	(16,761,813	)
Net income (loss) per share - Basic	$	0.01		$	(2.04	)	$	(0.07	)	$	(2.12	)
Net income (loss) per share - Diluted	$	0.01		$	(2.04	)	$	(0.07	)	$	(2.12	)
Weighted average common shares
Outstanding - Basic		8,093,386			7,901,327			8,066,740			7,898,782
Weighted average common shares
Outstanding - Diluted		8,112,373			7,901,327			8,066,740			7,898,782

 

ALLIED HEALTHCARE PRODUCTS, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

	June 30, 2010			June 30, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	5,263,324		$	1,943,364
Accounts receivable, net of allowances of $300,000		5,418,253			6,172,437
Inventories, net		11,155,456			12,663,938
Income tax receivable		877,665			937,273
Other current assets		221,840			327,203
Total current assets		22,936,538			22,044,215
Property, plant and equipment, net		9,661,395			10,799,089
Other assets, net		333,084			390,627
Total assets	$	32,931,017		$	33,233,931
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,950,446		$	1,633,568
Other accrued liabilities		2,241,259			2,316,558
Deferred income taxes		429,699			419,213
Deferred revenue		688,200			688,200
Total current liabilities		5,309,604			5,057,539
Deferred revenue		802,900			1,491,100
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; 10,396,878 and 10,204,819  shares issued at June 30, 2010 and June 30, 2009, respectively; 8,093,386 and 7,901,327 shares outstanding at June 30, 2010 and June 30, 2009, respectively		103,969			102,048
Additional paid-in capital		48,362,922			47,632,049
Accumulated deficit		(916,950	)		(317,377	)
Less treasury stock, at cost; 2,303,492 shares at June 30, 2010 and June 30, 2009, respectively		(20,731,428	)		(20,731,428	)
Total stockholders' equity		26,818,513			26,685,292
Total liabilities and stockholders' equity	$	32,931,017		$	33,233,931