SOURCE: Allied Healthcare

Allied Healthcare

November 24, 2009 08:22 ET

Allied Healthcare International Inc. Reports Fiscal 2009 Fourth Quarter and Year-End Results

Fourth Quarter Revenues Increase 8.4%, at Constant Exchange Rates

Fourth Quarter Operating Income Increases 16.1%, at Constant Exchange Rates

Fiscal 2009 Revenues Increase 6.4%, at Constant Exchange Rates

Fiscal 2009 Operating Income Increases 37.5%, at Constant Exchange Rates

NEW YORK, NY--(Marketwire - November 24, 2009) - Allied Healthcare International Inc. (NASDAQ: AHCI) (AIM: AHI)


                                                    Fourth       Twelve
(In millions, except EPS)                           Quarter      Months
                                                  -----------  -----------
Revenues, as reported                             $      69.8  $     249.8
Revenues, at constant exchange rates              $      81.2  $     317.7
Gross Profit, as reported                         $      21.2  $      76.3
Gross Profit, at constant exchange rates          $      24.6  $      97.1
Gross Profit %                                           30.3%        30.6%
Operating Income, as reported                     $       4.2  $      13.1
Operating Income, at constant exchange rates      $       5.0  $      17.5
Diluted EPS, continuing operations                $      0.07  $      0.22
                                                  -----------  -----------

Allied Healthcare International Inc. (http://www.alliedhealthcare.com), a leading provider of flexible healthcare staffing services in the United Kingdom, has issued financial results for its fiscal 2009 fourth quarter and year-end.

To provide investors with an increased understanding of the Company's business, Allied is providing a breakdown of its revenues, gross profits, selling, general and administrative ("SG&A") costs and operating income at constant exchange rates using the comparable prior period weighted average exchange rate. Further, the discussions below as to the fiscal 2009 fourth quarter and year end comparative analysis with the prior year results also take into account constant exchange rates. In addition, as the Company's revenues and gross profits are generated in the United Kingdom, an analysis is included, within the management discussion below, of the last eight quarters' revenues and gross profits in pounds sterling to enable investors to fully understand the underlying trends over these periods without the effects of currency exchange rates. As noted in the reported numbers, recent fluctuations in foreign exchange rates have significantly impacted the Company's current period results.

Fiscal Fourth Quarter Results:

                               Quarter Ended September 30, 2009
                     -----------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Profit       %      Profit %
                     ---------  ---------  ---------  ---------  ---------
(Amounts in
 thousands)
Homecare             $  68,116       83.8% $  20,845       84.6%      30.6%
Nursing Homes            7,540        9.3%     2,379        9.7%      31.6%
Hospitals                5,577        6.9%     1,405        5.7%      25.2%
                     ---------             ---------
Total, at constant
 exchange rates         81,233                24,629                  30.3%
Effect of foreign
 exchange              (11,388)               (3,433)
                     ---------             ---------
Total, as reported   $  69,845             $  21,196
                     =========             ---------

SG&A, at constant
 exchange rates                            $  19,589
Effect of foreign
 exchange                                     (2,579)
                                           ---------
SG&A, as reported                          $  17,010
                                           ---------

Operating Income, at
 constant exchange
 rates                                     $   5,040
Effect of foreign
 exchange                                       (854)
                                           ---------
Operating Income,
 as reported                               $   4,186
                                           =========


                               Quarter Ended September 30, 2008
                     ------------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Profit       %      Profit %
                     ---------- ---------  ---------- ---------  ---------

(Amounts in
 thousands)
Homecare             $   57,469      76.6% $   17,967      78.4%      31.3%
Nursing Homes             9,730      13.0%      2,941      12.8%      30.2%
Hospitals                 7,769      10.4%      2,003       8.8%      25.8%
                     ----------            ----------
Total, at constant
 exchange rates          74,968                22,911                 30.6%
Effect of foreign
 exchange                     -                     -
                     ----------            ----------
Total, as reported   $   74,968            $   22,911
                     ==========            ----------

SG&A, at constant
 exchange rates                            $   18,570
Effect of foreign
 exchange                                           -
                                           ----------
SG&A, as reported                          $   18,570
                                           ----------

Operating Income, at
 constant exchange
 rates                                     $    4,341
Effect of foreign
 exchange                                           -
                                           ----------
Operating Income,
 as reported                               $    4,341
                                           ==========

For the fourth quarter of fiscal 2009 revenues increased by $6.3 million, or 8.4%, to $81.2 million, compared with $75.0 million reported during the same period in fiscal 2008. Contributing to the increase in revenues was Allied's Homecare revenues, which grew by 18.5% to $68.1 million. Nursing Homes revenues declined by 22.5% to $7.5 million. Hospitals revenues decreased by 28.2% to $5.6 million. After the unfavorable impact of currency exchange of $11.4 million, revenues decreased to the reported $69.8 million.

Total gross profit for the fourth fiscal quarter increased 7.5% to $24.6 million, compared with $22.9 million reported for the comparable quarter in fiscal 2008. Gross profit percent for the fourth quarter was 30.3%, as compared to 30.6% for the comparable prior period. Foreign exchange decreased gross profit by $3.4 million to the reported $21.2 million for the quarter.

SG&A for the fourth fiscal quarter was $19.6 million, compared with $18.6 million reported last year, an increase of 5.5%. As a percent of revenues, SG&A costs were 24.4%, compared to 24.8% in the comparable prior year period. Foreign exchange decreased costs by $2.6 million to the reported $17.0 million for the quarter.

Operating income for the fourth quarter of fiscal 2009 increased to $5.0 million, compared to operating income of $4.3 million reported during the 2008 fourth fiscal quarter. Foreign exchange decreased operating income by $0.8 million to the reported $4.2 million for the quarter.

Net income for the fourth quarter of fiscal 2009 was $2.9 million, as compared with $2.9 million reported during the 2008 fourth fiscal quarter. Diluted earnings per share was $0.07 for the quarter, compared to diluted earnings per share of $0.06 last year.

Fiscal 2009 Full Year Results:

                                 Year Ended September 30, 2009
                     -----------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Profit       %      Profit  %
                     ---------  ---------  ---------  ---------  ---------
(Amounts in
 thousands)
Homecare             $ 259,271       81.6% $  80,337       82.7%      31.0%
Nursing Homes           32,890       10.4%    10,298       10.6%      31.3%
Hospitals               25,512        8.0%     6,454        6.7%      25.3%
                     ---------             ---------
Total, at constant
 exchange rates        317,673                97,089                  30.6%
Effect of foreign
 exchange              (67,863)              (20,741)
                     ---------             ---------
Total, as reported   $ 249,810             $  76,348
                     =========             ---------

SG&A, at constant
 exchange rates                            $  79,587
Effect of foreign
 exchange                                    (16,353)
                                           ---------
SG&A, as reported                          $  63,234
                                           ---------

Operating Income, at
 constant exchange
 rates                                     $  17,502
Effect of foreign
 exchange                                     (4,388)
                                           ---------
Operating Income,
 as reported                               $  13,114
                                           =========




                                 Year Ended September 30, 2008
                     ------------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Profit       %      Profit %
                     ---------- ---------  ---------- ---------  ---------

(Amounts in
 thousands)
Homecare             $  225,460      75.5% $   70,458      78.0%      31.3%
Nursing Homes            41,853      14.0%     12,602      13.9%      30.1%
Hospitals                31,264      10.5%      7,325       8.1%      23.4%
                     ----------            ----------
Total, at constant
 exchange rates         298,577                90,385                 30.3%
Effect of foreign
 exchange                     -                     -
                     ----------            ----------
Total, as reported   $  298,577            $   90,385
                     ==========            ----------

SG&A, at constant
 exchange rates                            $   77,655
Effect of foreign
 exchange                                           -
                                           ----------
SG&A, as reported                          $   77,655
                                           ----------

Operating Income, at
 constant exchange
 rates                                     $   12,730
Effect of foreign
 exchange                                           -
                                           ----------
Operating Income,
 as reported                               $   12,730
                                           ==========

For the year ended September 30, 2009 revenues increased by $19.1 million, or 6.4%, to $317.7 million, compared with $298.6 million reported during the same period in fiscal 2008. Contributing to the increase in revenues was Allied's Homecare revenues, which grew by 15.0% to $259.3 million. Nursing Homes revenues declined by 21.4% to $32.9 million. Hospitals revenues decreased by 18.4% to $25.5 million. After the unfavorable impact of currency exchange of $67.9 million, revenues decreased to the reported $249.8 million.

Total gross profit for the year ended September 30, 2009, increased 7.4% to $97.1 million, compared with $90.4 million reported for the comparable period in fiscal 2008. Gross profit percent for the year ended September 30, 2009, increased to 30.6% from 30.3% for the comparable prior period. Foreign exchange decreased gross profit by $20.8 million to the reported $76.3 million for the year.

SG&A for the year ended September 30, 2009, was $79.6 million, compared with $77.7 million reported last year, an increase of 2.5%. As a percent of revenues, SG&A costs were 25.3% compared to 26.0% in the comparable prior year period. Foreign exchange decreased costs by $16.4 million to the reported $63.2 million for the year.

Operating income for the year ended September 30, 2009, increased to $17.5 million, compared to operating income of $12.7 million reported during the comparable prior year period, an increase of 37.5% over the prior year. Foreign exchange decreased operating income by $4.4 million to the reported $13.1 million for the year.

Income from continuing operations for the year ended September 30, 2009, increased to $9.9 million, as compared with $8.8 million reported for the year ended September 30, 2008. Diluted earnings per share from continuing operations was $0.22 for the fiscal year ended September 30, 2009, compared to diluted earnings per share from continuing operations of $0.19 last year.

Net income for the year ended September 30, 2009, increased to $10.3 million, as compared with $8.8 million reported during the 2008 fiscal year. Diluted earnings per share was $0.23 for the year ended September 30, 2009, which includes $0.01 from discontinued operations due to the release of reserves as a result of the warranty period within the sales agreement, related to the sale of the respiratory business in fiscal 2007, having expired. This compares to $0.19 for the year end September 30, 2008.

At September 30, 2009, and September 30, 2008, Allied's cash balance was $35.3 million (£22.2 million) and $26.2 million (£14.4 million), respectively, representing an underlying increase in the cash balance of $9.1 million (£7.8 million).

For the year ended September 30, 2009, depreciation and amortization was $3.8 million (£2.5 million) and capital expenditures were $2.9 million (£1.8 million). Days Sales Outstanding was twenty-five days at September 30, 2009 (40 days including unbilled account receivables), and twenty-one days at September 30, 2008 (40 days including unbilled account receivables).

Management Discussion:

"We continue to see good growth in our homecare business, which now represents over 80% of our business," commented Sandy Young, Chief Executive Officer of Allied. "The homecare revenue growth in the quarter of 18.5% was particularly pleasing and was ahead of our 10-15% growth range expectation. The Company's homecare business should benefit from many favorable market dynamics. These include: an aging population; continued shift from residential care to homecare; the lower cost of private business homecare provision; and continued consolidation of local authority suppliers. These factors all favor a growth in demand in our core homecare business."

Mr. Young continued: "Even the anticipated further tightening of the local government and National Health Service (NHS) budgets over the next few years, as the government addresses its financial deficit, provides an opportunity for us. We believe that the demonstrated financial benefits of lower costs that have and can continue to be achieved by homecare, as compared to institutional care, should be a strong incentive for local governments and NHS Primary Care Trusts, in addressing the ongoing financial challenges they face.

"While our nursing homes and hospital staffing business results were higher in the fourth quarter as compared to the third quarter, which is a similar trend as in the prior year, we continue to look for opportunities for these businesses. As previously reported, we were successfully awarded the new NHS framework agreements, which came into effect on October 1, 2009. We have started to enact the higher pay and charge rates under the new framework agreements which we believe are essential to effectively recruit and retain staff to service this business. Expanding upon our existing London operation, we have recently agreed to lease a Midlands regional office, from which we hope to start business from in 2010 to service the hospital staffing demand in the central regions of England.

"Our current period SG&A running costs of 24.4% of revenues compares to 25.8% in the prior quarter. We are continuing, as previously reported, to invest in certain areas of our business that include such items as continuing care, learning disabilities, IT systems, training, and business improvement projects to ensure that we support future growth in revenues. At the same time, we maintain tight controls over other areas of SG&A costs so as to maintain our objective of reducing SG&A costs as a percent of revenues. Our investment in training also allows us to qualify for currently available government training grants, which have given us a net financial benefit of $0.6 million as compared to the prior year.

"We are pleased with the progress we have made in the year in the key area of carer and branch staff retention, staff development and support, the progress of our coldharbour IT system rollout, and our attention to service and quality delivery, all of which, we believe, create a strong foundation for future growth for our business. As well as our focus in the quarter on service and quality, which we believe is essential and a key driver to increased revenue and profit growth, we have been actively looking at acquisition opportunities. Any such acquisitions will be reviewed in conjunction with our Capital Resources Review, which also includes looking at other opportunities to enhance shareholder value.

"We recently re-launched our website which includes details of our key service offerings and also gives case studies of some of the work the Company is currently involved in. In addition, our recent major contract wins, our network of branches, which include three new branches in the London region and one new branch in Scotland following our successful contract wins, our quality and governance standards, our investor relations links and our employee and recruitment information have all been updated and enhanced. We believe that our current and prospective customers, employees and investors will find our new website informative and helpful.

"We have also appointed ICR, LLC as our investor relations firm effective December 2009, which, we believe, will help us to develop further our relationships with existing and new shareholders."

Mr. Young concluded: "Overall, we are positive about the year ahead. The business has a more robust operating platform and many of the business improvement initiatives have yet to be fully implemented. We believe that the extra investment we have made this year in learning disabilities and continuing care will help support our top line growth in homecare."

Paul Weston, Chief Financial Officer of Allied, commented: "As noted in our previous quarter's press release, with nearly all our operations in the United Kingdom, we believe it is important for investors to see the underlying revenues and gross profits in pound currency as detailed below. This shows growth in our gross profits year to date of 7.4%, and our fourth quarter gross profit of 30.3% is in line with our expectations. Our SG&A costs year to date, excluding exchange effects, increased by 2.5% compared to the prior year which compares favorably with the revenue growth of 6.4% that we have generated."

                                Q1 2009                   Q2 2009
                        ------------------------- -------------------------
                                        Gross                     Gross
                          Revenue      Profit       Revenue      Profit
                        ------------ ------------ ------------ ------------
(Amounts in thousands)
Homecare                  GBP 30,620  GBP   9,487   GBP 30,858   GBP  9,753
Nursing Homes                  4,808        1,477        4,159        1,298
Hospitals                      3,612          973        3,448          874
                        ------------ ------------ ------------ ------------
Total                     GBP 39,040   GBP 11,937   GBP 38,465   GBP 11,925
Foreign exchange rate           1.58         1.58         1.44         1.44
                        ------------ ------------ ------------ ------------
Total                   $     61,528 $     18,813 $     55,334 $     17,166
                        ============ ============ ============ ============

                                Q3 2009                   Q4 2009
                        ------------------------- -------------------------
                                        Gross                     Gross
                          Revenue      Profit       Revenue      Profit
                        ------------ ------------ ------------ ------------
(Amounts in thousands)
Homecare                  GBP 34,162  GBP  10,525   GBP 35,763 GBP   10,951
Nursing Homes                  3,716        1,187        3,986        1,257
Hospitals                      2,914          679        2,956          745
                        ------------ ------------ ------------ ------------
Total                     GBP 40,792  GBP  12,391   GBP 42,705  GBP  12,953
Foreign exchange rate           1.55         1.55         1.64         1.64
                        ------------ ------------ ------------ ------------
Total                   $     63,103 $     19,173 $     69,845 $     21,196
                        ============ ============ ============ ============


                                Q1 2008                   Q2 2008
                        ------------------------- -------------------------
                                        Gross                     Gross
                          Revenue      Profit       Revenue      Profit
                        ------------ ------------ ------------ ------------
(Amounts in thousands)
Homecare                  GBP 27,358  GBP   8,491   GBP 27,561  GBP   8,476
Nursing Homes                  5,730        1,706        5,373        1,596
Hospital Staffing              3,473          767        4,358        1,009
                        ------------ ------------ ------------ ------------
Total                     GBP 36,561   GBP 10,964   GBP 37,292   GBP 11,081
Foreign exchange rate           2.05         2.05         1.98         1.98
                        ------------ ------------ ------------ ------------
Total                   $     74,770 $     22,423 $     73,815 $     21,931
                        ============ ============ ============ ============


                                Q3 2008                   Q4 2008
                        ------------------------- -------------------------
                                        Gross                     Gross
                          Revenue      Profit       Revenue      Profit
                        ------------ ------------ ------------ ------------
(Amounts in thousands)
Homecare                  GBP 29,130 GBP    9,294   GBP 30,218 GBP    9,447
Nursing Homes                  4,969        1,531        5,140        1,554
Hospital Staffing              3,926          888        4,088        1,050
                        ------------ ------------ ------------ ------------
Total                     GBP 38,025  GBP  11,713   GBP 39,446  GBP  12,051
Foreign exchange rate           1.97         1.97         1.90         1.90
                        ------------ ------------ ------------ ------------
Total                   $     75,024 $     23,120 $     74,968 $     22,911
                        ============ ============ ============ ============

Dr. Jeffrey Peris, Non-Executive Chairman of the Board of Allied, commented: "Sandy Young and the management team have achieved operating income for the year of $17.5 million, excluding exchange, which compares to $12.7 million for the prior year. This is an increase of 37.5%, and reflects the continued improvements the Company is making across its business to help it affirm its position as one of the leaders in the U.K. homecare market place. As communicated previously, we are working with Piper Jaffray to assess the best way to use our capital resources to maximize shareholder value. The Board of Directors remains confident in the Company's ability to realize opportunities in the homecare market and achieve its strategies for growth in the years ahead."

Conference Call Information -- November 24, 2009 at 10:00AM EST / 3:00PM GMT:

Allied invites all those interested in listening to management's discussion of the results to join the call by dialing (877) 407-0778 for domestic participants, and (201) 689-8565 for international participants today, November 24, 2009, at 10:00AM EST / 3:00PM GMT. Participants may also access a live webcast of the conference call through the "Investors" section of Allied Healthcare's Website: www.alliedhealthcare.com. A replay will be available for one week following the call by dialing (877) 660-6853 for domestic participants, and (201) 612-7415 for international participants. When prompted, please enter account number 286 and conference ID number 338036. The presentation will be available and archived on the Company's website for ninety days.

In addition to disclosing results of operations that are determined in accordance with generally accepted accounting principles ("GAAP"), this press release also discloses non-GAAP results of operations that exclude or include certain charges. These non-GAAP measures adjust for foreign exchange effects. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding the Company's results of operations, as these non-GAAP measures allow investors to better evaluate ongoing business performance. Investors should consider non-GAAP measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. A reconciliation of the non-GAAP measures disclosed in this press release with the most comparable GAAP measures are included in the financial tables included in this press release.

ABOUT ALLIED HEALTHCARE INTERNATIONAL INC.

Allied Healthcare International Inc. (http://www.alliedhealthcare.com) is a leading provider of flexible healthcare staffing services in the United Kingdom. Allied operates a community-based network of over one hundred ten branches with the capacity to provide carers (known as home health aides in the U.S.), nurses, and specialized medical personnel to locations covering approximately 90% of the U.K. population. Allied meets the needs of private patients, community care, nursing and care homes, and hospitals.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may be forward-looking statements. These forward-looking statements are based on current expectations and projections about future events. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements include: general economic and market conditions; Allied's ability to continue to recruit and retain flexible healthcare staff; the H1N1 influenza virus which may result in staff being unable to perform services due to their own illness or due to the illness of patients and may reduce our revenues; Allied's ability to enter into contracts with local government social services departments, NHS Trusts, hospitals, other healthcare facility clients and private clients on terms attractive to Allied; the general level of demand for healthcare and social care; dependence on the proper functioning of Allied's information systems; the effect of existing or future government regulation of the healthcare and social care industry, and Allied's ability to comply with these regulations; the impact of medical malpractice and other claims asserted against Allied; the effect of regulatory change that may apply to Allied and that may increase costs and reduce revenues and profitability; Allied's ability to use net operating loss carry forwards to offset net income; the effect that fluctuations in foreign currency exchange rates may have on our dollar-denominated results of operations; and the impairment of goodwill, of which Allied has a substantial amount on the balance sheet, may have the effect of decreasing earnings or increasing losses. Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release include those described in Allied's most recently filed SEC documents, such as its most recent annual report on Form 10-K, all quarterly reports on Form 10-Q and any current reports on Form 8-K filed since the date of the last Form 10-K. Allied undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

                   ALLIED HEALTHCARE INTERNATIONAL INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)


                                                 Year Ended September 30,
                                                    2009         2008
                                                ------------ ------------
                                                              (Audited)
Cash flows from operating activities:
  Net income                                    $     10,303 $      8,786
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
    Income from discontinued
     operations                                         (367)           -
    Depreciation and amortization                      2,590        3,231
    Amortization of intangible assets                  1,252        1,634
    Foreign exchange loss                                  7            -
    Increase (decrease) in provision
     for allowance for doubtful
     accounts                                            360         (167)
    Loss on sale of fixed assets                          20          166
    Stock based compensation                             537          812
    Deferred income taxes                                117           88
  Changes in operating assets and
   liabilities, excluding the effect
   of businesses acquired and sold:
    (Increase) decrease in accounts
     receivable                                       (4,281)        1,579
    Decrease (increase) in prepaid
     expenses and other assets                         2,318       (3,488)
    Increase (decrease) in accounts
     payable and other liabilities                     2,867       (3,779)
                                                ------------ ------------

      Net cash provided by continuing
       operations                                     15,723        8,862
      Net cash (used in) provided by
       discontinued operations                             -         (561)
                                                ------------ ------------
      Net cash provided by operating
       activities                                     15,723        8,301
                                                ------------ ------------

Cash flows from investing activities:
  Capital expenditures                                (2,850)      (3,344)
  Proceeds from sale of business held
   in escrow and designated for debt
   repayment                                             116       53,638
  Proceeds from sale of property and
   equipment                                               1           50
  Payments on acquisitions payable                    (1,082)           -
                                                ------------ ------------
                                                ------------ ------------
      Net cash (used in) provided by
       investing activities                           (3,815)      50,344
                                                ------------ ------------

Cash flows from financing activities:
  Payments under revolving loan, net                       -      (24,664)
  Payments under invoice discounting
   facility, net                                           -       (4,458)
  Principal payments on long-term debt                     -      (23,678)
  Proceeds from sale of interest rate
   swap agreements                                         -          617
                                                ------------ ------------

      Net cash used in financing
       activities                                          -      (52,183)
                                                ------------ ------------

Effect of exchange rate on cash                       (2,834)        (504)
                                                ------------ ------------

Increase in cash                                       9,074        5,958

Cash and cash equivalents, beginning
 of year                                              26,199       20,241
                                                ------------ ------------

Cash and cash equivalents, end of
 year                                           $     35,273 $     26,199
                                                ============ ============

Supplemental cash flow information:
  Cash paid for interest                        $        405 $      1,143
                                                ============ ============

  Cash paid for income taxes, net               $      1,102 $      4,872
                                                ============ ============




                   ALLIED HEALTHCARE INTERNATIONAL INC.
                        CONSOLIDATED BALANCE SHEETS
                  (In thousands, except per share data)


                                                September 30, September 30,
                                                    2009         2008
                                                ------------ ------------
                 ASSETS                                        (Audited)
Current assets:
  Cash and cash equivalents                     $     35,273 $     26,199
  Restricted Cash                                          -          136
  Accounts receivable, less allowance for
   doubtful accounts of $839 and $823,
   respectively                                       19,594       17,774
  Unbilled accounts receivable                        11,572       15,892
  Deferred income taxes                                  389          474
  Prepaid expenses and other assets                    1,188        1,375
  Assets of discontinued operations                        -          182
                                                ------------ ------------
    Total current assets                              68,016       62,032

Property and equipment, net                            7,756        8,574
Goodwill                                              95,649      109,292
Other intangible assets, net                           1,646        3,345
Taxes receivable                                           -           19
                                                ------------ ------------
    Total assets                                $    173,067 $    183,262
                                                ============ ============

   LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable                              $      1,186 $      1,614
  Accrued expenses, inclusive of payroll and
   related expenses                                   24,304       28,244
  Taxes payable                                          201            -
  Liabilities of discontinued operations                   -          624
                                                ------------ ------------
    Total current liabilities                         25,691       30,482

Deferred income taxes                                    103          110
                                                ------------ ------------
    Total liabilities                                 25,794       30,592
                                                ------------ ------------

Commitments and contingencies

Shareholders' equity:
  Preferred stock, $.01 par value; authorized
   10,000 shares, issued and outstanding
   - none                                                  -            -
  Common stock, $.01 par value; authorized
   80,000 shares, issued 45,571 shares                   456          456
  Additional paid-in capital                         241,555      241,018
  Accumulated other comprehensive (loss) income      (14,418)       1,819
  Accumulated deficit                                (78,026)     (88,329)
                                                ------------ ------------
                                                     149,567      154,964
  Less cost of treasury stock (585 shares)            (2,294)      (2,294)
                                                ------------ ------------
    Total shareholders' equity                       147,273      152,670
                                                ------------ ------------
    Total liabilities and shareholders' equity  $    173,067 $    183,262
                                                ============ ============



                   ALLIED HEALTHCARE INTERNATIONAL INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)


                                 Three Months Ended   Year Ended September
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
                                                                 (Audited)
  Total revenues                $  69,845  $  74,968  $ 249,810  $ 298,577
                                ---------  ---------  ---------  ---------

  Gross profit                     21,196     22,911     76,348     90,385

  Selling, general and
   administrative expenses         17,010     18,570     63,234     77,655
                                ---------  ---------  ---------  ---------

    Operating  income               4,186      4,341     13,114     12,730

  Interest and other
   (expense) income, net              (14)       264        427        393

  Foreign exchange expense           (137)      (435)      (197)      (586)
                                ---------  ---------  ---------  ---------

    Income before income taxes
     and discontinued
     operations                     4,035      4,170     13,344     12,537

  Provision for income taxes        1,098      1,279      3,408      3,751
                                ---------  ---------  ---------  ---------

  Income from continuing
   operations                       2,937      2,891      9,936      8,786
                                ---------  ---------  ---------  ---------

  Discontinued operations:
    Income from discontinued
     operations, net of taxes           -          -        367          -
                                ---------  ---------  ---------  ---------

      Net income                $   2,937  $   2,891  $  10,303  $   8,786
                                =========  =========  =========  =========

Basic income per share of
 common stock from:
      Income from continuing
       operations               $    0.07  $    0.06  $    0.22  $    0.20
      Income from discontinued
       operations                       -          -       0.01          -
                                ---------  ---------  ---------  ---------
      Net income                $    0.07  $    0.06  $    0.23  $    0.20
                                =========  =========  =========  =========


Diluted income per share of
 common stock from:
      Income from continuing
       operations               $    0.07  $    0.06  $    0.22  $    0.19
      Income from discontinued
       operations                       -          -       0.01          -
                                ---------  ---------  ---------  ---------
      Net income                $    0.07  $    0.06  $    0.23  $    0.19
                                =========  =========  =========  =========

Weighted average number of
 common shares outstanding:
      Basic                        44,986     44,986     44,986     44,986
                                =========  =========  =========  =========
      Diluted                      45,074     45,086     45,011     45,078
                                =========  =========  =========  =========

Contact Information

  • Allied Healthcare International Inc.
    Sandy Young
    Chief Executive Officer
    Paul Weston
    Chief Financial Officer
    UK 00-44-1785 810-600
    Email Contact
    Email Contact
    or
    The Investor Relations Group
    Adam Holdsworth
    212-825-3210
    or
    Cenkos Securities plc (Nominated Advisor)
    Elizabeth Bowman
    London: 00-44-20-7397-8928
    or
    Ian Soanes
    London: 00-44-20-7397-8924