Allied Healthcare Products Reports Second Quarter Loss

ST. LOUIS, Feb. 13, 2014 /PRNewswire/ --Continued spending curbs by hospitals and emergency agencies nationwide have resulted in depressed sales for Allied Healthcare Products, Inc. (NASDAQ: AHPI) and a loss in its second quarter of fiscal 2014.

The net loss for the quarter ending December 31, 2013, was about $899,000 or a negative 11 cents per basic and diluted share. The loss in the prior year's second quarter was about $469,000, or a negative 6 cents per share.

Sales for the second quarter declined from about $9.9 million in the previous year to about $8.7 million, or almost 12 percent.

For the first two quarters of the fiscal year, Allied Healthcare Products experienced a loss of about $1.5 million, or a negative 19 cents per basic and diluted share. For the first half of the previous year, Allied recorded a loss of about $880,000, or a negative 11 cents per share.

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 both in the United States and in our overseas markets, the effects of the Affordable Care Act, 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,				Six months ended,
	December 31,				December 31,
	2013		2012		2013		2012
Net sales	$8,749,406		$9,921,422		$17,457,703		$19,208,513
Cost of sales	6,805,156		7,815,489		13,752,887		15,123,605
Gross profit	1,944,250		2,105,933		3,704,816		4,084,908
Selling General and administrative expenses	2,835,881		2,857,065		5,458,082		5,495,640
Loss from operations	(891,631)		(751,132)		(1,753,266)		(1,410,732)
Interest income	(1,476)		(2,821)		(3,366)		(7,047)
Other, net	8,761		7,645		17,484		15,226
	7,285		4,824		14,118		8,179
Loss before
benefit from income taxes	(898,916)		(755,956)		(1,767,384)		(1,418,911)
Benefit from income taxes	-		(287,263)		(277,910)		(539,186)
Net loss	($898,916)		($468,693)		($1,489,474)		($879,725)
Net loss per share - Basic	($0.11)		($0.06)		($0.19)		($0.11)
Net loss per share - Diluted	($0.11)		($0.06)		($0.19)		($0.11)
Weighted average common shares outstanding - Basic	8,027,147		8,100,593		8,027,147		8,112,490
Weighted average common shares outstanding - Diluted	8,027,147		8,100,593		8,027,147		8,112,490

	ALLIED HEALTHCARE PRODUCTS, INC.
	BALANCE SHEET
	(UNAUDITED)
		December 31, 2013		June 30, 2013
ASSETS
Current assets:
	Cash and cash equivalents	$ 2,284,033		$ 3,687,919
	Accounts receivable, net of allowances
	of $170,000	3,495,758		4,221,970
	Inventories, net	10,463,928		9,338,343
	Income tax receivable	39,535		36,766
	Other current assets	596,326		420,978
	Total current assets	16,879,580		17,705,976
	Property, plant and equipment, net	9,386,497		9,722,344
	Deffered income taxes	1,942,979		1,667,699
	Other assets, net	214,937		242,712
	Total assets	$ 28,423,993		$ 29,338,731
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable	$ 1,691,280		$ 1,317,202
	Other accrued liabilities	2,057,954		1,861,241
	Deferred income taxes	842,909		845,539
	Total current liabilities	4,592,143		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 December 31,
	2013 and June 30, 2013; 8,027,147 shares
	outstanding at December 31, 2013 and June 30, 2013	104,279		104,279
	Additional paid-in capital	48,591,574		48,584,999
	Accumulated deficit	(3,883,215)		(2,393,741)
	Less treasury stock, at cost; 2,400,731 shares at
	December 31, 2013 and June 30, 2013	(20,980,788)		(20,980,788)
	Total stockholders' equity	23,831,850		25,314,749
	Total liabilities and stockholders' equity	$ 28,423,993		$ 29,338,731

SOURCE Allied Healthcare Products, Inc.