ST. LOUIS, May 10, 2013 /PRNewswire/ -- The continuing recession in domestic hospital equipment and a dip in international sales resulted in a loss for Allied Healthcare Products (NASDAQ: AHPI) in its third quarter of fiscal year 2013.
Net loss for the quarter ending March 31, 2013, was about $280,000, or a negative 3 cents per basic and diluted share, versus a loss of about $146,000, or a negative 2 cents per basic and diluted share, for the prior year. Sales for the third quarter fell from about $10.7 million to about $9.2 million, or almost 14 percent, from the previous year.
For the first three quarters of fiscal 2013, Allied's net loss was $1,158,800 or a negative 14 cents per basic and diluted share, compared to a loss of about $268,000, or negative 3 cents per basic and diluted share, for the prior year. Sales for the company's first three quarters declined from about $32.8 million to $28.4 million, or about 13 percent, from the previous year.
Formerly healthy international sales flattened in the quarter. A major impact was the lack of sales in Venezuela following the illness and death of President Hugo Chavez.
The company is beginning to see good growth in sales with its new carbon dioxide absorbent Litholyme®, used in anesthesia procedures, according to Earl Refsland, Allied president and chief executive officer. "As the market becomes aware of the product's economic and safety benefits, we believe sales will accelerate accordingly," Refsland said.
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 $70,000 in the third quarter.
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.
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ALLIED HEALTHCARE PRODUCTS, INC.
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STATEMENT OF OPERATIONS
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(UNAUDITED)
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Three months ended,
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Nine months ended,
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March 31,
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March 31,
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2013
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2012
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2013
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2012
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Net sales
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$9,210,369
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$10,702,421
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$28,418,882
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$32,778,824
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Cost of sales
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7,530,816
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8,377,307
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22,654,421
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25,312,756
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Gross profit
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1,679,553
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2,325,114
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5,764,461
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7,466,068
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Selling General and administrative expenses
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2,639,976
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2,555,649
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8,135,616
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7,883,631
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Income (loss) from operations
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(960,423)
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(230,535)
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(2,371,155)
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(417,563)
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Interest income
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(2,500)
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(5,692)
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(9,547)
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(21,984)
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Interest expense
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-
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-
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-
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336
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Other, net
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(507,792)
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10,297
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(492,566)
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36,446
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(510,292)
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4,605
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(502,113)
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14,798
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Income (loss) before provision for
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(benefit from) income taxes
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(450,131)
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(235,140)
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(1,869,042)
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(432,361)
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Provision for (benefit from) income taxes
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(171,050)
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(89,353)
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(710,236)
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(164,297)
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Net income (loss)
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($279,081)
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($145,787)
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($1,158,806)
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($268,064)
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Net income (loss) per share - Basic
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($0.03)
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($0.02)
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($0.14)
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($0.03)
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Net income (loss) per share - Diluted
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($0.03)
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($0.02)
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($0.14)
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($0.03)
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Weighted average common shares outstanding - Basic
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8,029,076
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8,124,386
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8,085,091
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8,124,386
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Weighted average common shares outstanding - Diluted
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8,029,076
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8,124,386
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8,085,091
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8,124,386
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ALLIED HEALTHCARE PRODUCTS, INC.
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BALANCE SHEET
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(UNAUDITED)
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March 31, 2013
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June 30, 2012
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ 4,327,408
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$ 5,284,543
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Accounts receivable, net of allowances
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of $300,000
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3,434,714
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4,843,593
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Inventories, net
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9,725,284
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10,001,226
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Income tax receivable
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-
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46,042
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Other current assets
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500,360
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400,677
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Total current assets
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17,987,766
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20,576,081
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Property, plant and equipment, net
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9,552,015
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9,603,556
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Deferred income taxes
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1,611,490
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867,422
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Other assets, net
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256,599
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300,010
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Total assets
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$ 29,407,870
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$ 31,347,069
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$ 1,313,073
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$ 1,797,144
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Other accrued liabilities
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1,903,378
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1,855,579
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Deferred income taxes
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789,668
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802,961
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Deferred revenue
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-
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114,700
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Total current liabilities
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4,006,119
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4,570,384
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Commitments and contingencies
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Stockholders' equity:
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Preferred stock; $0.01 par value; 1,500,000 shares
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-
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-
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authorized; no shares issued and outstanding
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Series A preferred stock; $0.01 par value; 200,000 shares
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-
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-
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authorized; no shares issued and outstanding
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Common stock; $0.01 par value; 30,000,000 shares
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authorized; 10,427,878 shares issued at March 31,
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2013 and June 30, 2012; 8,027,147 and 8,124,386 shares
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outstanding at March 31, 2013 and June 30, 2012, respectively
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104,279
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104,279
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Additional paid-in capital
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48,574,034
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48,540,802
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Accumulated deficit
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(2,295,774)
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(1,136,968)
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Less treasury stock, at cost; 2,400,731 and 2,303,492 shares at
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March 31, 2013 and June 30, 2012
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(20,980,788)
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(20,731,428)
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Total stockholders' equity
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25,401,751
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26,776,685
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Total liabilities and stockholders' equity
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$ 29,407,870
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$ 31,347,069
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SOURCE Allied Healthcare Products, Inc.