SOURCE: Allied Healthcare

Allied Healthcare

May 05, 2009 08:00 ET

Allied Healthcare International Inc. Reports Fiscal 2009 Second Quarter Results

Diluted EPS, From Continuing Operation, Increases 23% to 4.8 Cents From 3.9 Cents in Second Quarter Fiscal 2008

NEW YORK, NY--(Marketwire - May 5, 2009) - Allied Healthcare International Inc. (NASDAQ: AHCI) (AIM: AHI)


                                              Fiscal 2009     Fiscal 2008
 (In millions, except EPS)                  Second Quarter  Second Quarter
                                            --------------  --------------
Revenues, as reported                       $         55.3  $         73.8
Revenues, at constant exchange rates        $         76.1  $         73.8
Gross Profit, as reported                   $         17.2  $         21.9
Gross Profit, at constant exchange rates    $         23.6  $         21.9
Gross Margin %                                        31.0%           29.7%
Operating Income, as reported               $          2.8  $          2.5
Operating Income, at constant exchange
 rates                                      $          4.1  $          2.5
Diluted EPS, continuing operations               4.8 Cents       3.9 Cents
                                            ==============  ==============

Allied Healthcare International Inc. (NASDAQ: AHCI) (AIM: AHI) (http://www.alliedhealthcare.com), a leading provider of flexible healthcare staffing services in the United Kingdom, has issued financial results for its fiscal 2009 second quarter.

To provide investors with an increased understanding of the Company's business, as in previous quarters, Allied is providing a breakdown of its revenues and gross profits at constant exchange rates using the comparable prior period weighted average exchange rate. 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 six 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 Second Quarter Results:

                                 Quarter Ended March 31, 2009
                     -----------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Margin       %      Margin %
                     ---------  ---------  ---------  ---------  ---------

(Amounts in
 thousands)
Homecare             $  61,066       80.2% $  19,307       81.8%      31.6%
Nursing Homes            8,207       10.8%     2,562       10.9%      31.2%
Hospitals                6,817        9.0%     1,726        7.3%      25.3%
                     ---------             ---------
Total, at constant
 exchange rates         76,090                23,595                  31.0%
Effect of foreign
 exchange              (20,756)               (6,429)
                     ---------             ---------
Total, as reported   $  55,334             $  17,166
                     =========             ---------

SG&A, at constant
 exchange rates                            $  19,511
Effect of foreign
 exchange                                     (5,122)
                                           ---------
SG&A, as reported                          $  14,389
                                           ---------

Operating Income, at
 constant exchange
 rates                                     $   4,084
Effect of foreign
 exchange                                     (1,307)
                                           ---------
Operating Income, as
 reported                                  $   2,777
                                           =========




                                 Quarter Ended March 31, 2008
                     ------------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Margin       %      Margin %
                     ---------- ---------  ---------- ---------  ---------

(Amounts in
 thousands)
Homecare             $   54,544      73.9% $   16,772      76.5%      30.7%
Nursing Homes            10,622      14.4%      3,156      14.4%      29.7%
Hospitals                 8,649      11.7%      2,003       9.1%      23.2%
                     ----------            ----------
Total, at constant
 exchange rates          73,815                21,931                 29.7%
Effect of foreign
 exchange                     -                     -
                     ----------            ----------
Total, as reported   $   73,815            $   21,931
                     ==========            ----------

SG&A, at constant
 exchange rates                            $   19,455
Effect of foreign
 exchange                                           -
                                           ----------
SG&A, as reported                          $   19,455
                                           ----------

Operating Income, at
 constant exchange
 rates                                     $    2,476
Effect of foreign
 exchange                                           -
                                           ----------
Operating Income, as
 reported                                  $    2,476
                                           ==========

For the second quarter of fiscal 2009, at constant exchange rates, revenues increased by $2.3 million, or 3.1%, to $76.1 million, compared with $73.8 million reported during the same period in fiscal 2008. Contributing to the increase in revenues was Allied's Homecare revenues, which grew by 12.0% to $61.1 million. Nursing Home revenues declined by 22.7% to $8.2 million. Hospitals revenues decreased by 21.2% to $6.8 million. After the unfavorable impact of currency exchange of $20.8 million, revenues decreased to $55.3 million. It should be noted that due to the leap year in 2008, this fiscal year's second quarter is one day shorter than the comparable prior year period which equates to just over $0.6 million for a day's sales, or 1.1% impact on increase in revenues.

At constant exchange rates, total gross profit for the second fiscal quarter increased 7.6% to $23.6 million, compared with $21.9 million reported for the comparable quarter in fiscal 2008. Gross profit margin for the second quarter increased to 31.0% from 29.7% for the comparable prior period. Foreign exchange decreased gross profit by $6.4 million to $17.2 million for the quarter.

At constant exchange rates, SG&A for the second fiscal quarter was $19.5 million, compared with $19.5 million reported last year. Foreign exchange decreased costs by $5.1 million to $14.4 million for the quarter.

At constant exchange rates, operating income for the second quarter of fiscal 2009 increased to $4.1 million, compared to operating income of $2.5 million reported during the 2008 second fiscal quarter. Foreign exchange decreased operating income by $1.3 million to $2.8 million for the quarter.

Income from continuing operations for the second quarter of fiscal 2009 increased to $2.1 million as compared with $1.8 million reported during the 2008 second fiscal quarter. Diluted earnings per share from continuing operations was 4.8 cents for the quarter, compared to diluted earnings per share from continuing operations of 3.9 cents last year.

Net income for the second quarter of fiscal 2009 increased to $2.5 million as compared with $1.8 million reported during the 2008 second fiscal quarter. Diluted earnings per share was 5.6 cents for the quarter which includes 0.8 cents 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.

Fiscal Six-Month Results:

                                Six Months Ended March 31, 2009
                     -----------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Margin       %      Margin %
                     ---------  ---------  ---------  ---------  ---------

(Amounts in
 thousands)
Homecare             $ 123,687       79.3% $  38,709       80.7%      31.3%
Nursing Homes           18,041       11.6%     5,583       11.6%      30.9%
Hospitals               14,204        9.1%     3,716        7.7%      26.2%
                     ---------             ---------
Total, at constant
 exchange rates        155,932                48,008                  30.8%
Effect of foreign
 exchange              (39,070)              (12,029)
                     ---------             ---------
Total, as reported   $ 116,862             $  35,979
                     =========             ---------

SG&A, at constant
 exchange rates                            $  39,524
Effect of foreign
 exchange                                     (9,576)
                                           ---------
SG&A, as reported                          $  29,948
                                           ---------

Operating Income, at
 constant exchange
 rates                                     $   8,484
Effect of foreign
 exchange                                     (2,453)
                                           ---------
Operating Income, as
 reported                                  $   6,031
                                           =========




                                Six Months Ended March 31, 2008
                     ------------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Margin       %      Margin %
                     ---------- ---------  ---------- ---------  ---------

(Amounts in
 thousands)
Homecare             $  110,494      74.4% $   34,139      77.0%      30.9%
Nursing Homes            22,340      15.0%      6,644      15.0%      29.7%
Hospitals                15,751      10.6%      3,571       8.0%      22.7%
                     ----------            ----------
Total, at constant
 exchange rates         148,585                44,354                 29.9%
Effect of foreign
 exchange                     -                     -
                     ----------            ----------
Total, as reported   $  148,585            $   44,354
                     ==========            ----------

SG&A, at constant
 exchange rates                            $   39,648
Effect of foreign
 exchange                                           -
                                           ----------
SG&A, as reported                          $   39,648
                                           ----------

Operating Income, at
 constant exchange
 rates                                     $    4,706
Effect of foreign
 exchange                                           -
                                           ----------
Operating Income, as
 reported                                  $    4,706
                                           ==========

For the fiscal six months ended March 31, 2009, at constant exchange rates, revenues increased by $7.3 million, or 4.9%, to $155.9 million, compared with $148.6 million reported during the same period in fiscal 2008. Contributing to the increase in revenues was Allied's Homecare revenues, which grew by 11.9% to $123.7 million. Nursing Home revenues declined by 19.2% to $18.0 million. Hospitals revenues decreased by 9.8% to $14.2 million. After the unfavorable impact of currency exchange of $39.0 million, revenues decreased to $116.9 million.

At constant exchange rates, total gross profit for the fiscal six months ended March 31, 2009, increased 8.2% to $48.0 million, compared with $44.4 million reported for the comparable period in fiscal 2008. Gross profit margin for the fiscal six months ended March 31, 2009, increased to 30.8% from 29.9% for the comparable prior period. Foreign exchange decreased gross profit by $12.0 million to $36.0 million for the quarter.

At constant exchange rates, SG&A for the fiscal six months ended March 31, 2009, was $39.5 million, compared with $39.6 million reported last year. Foreign exchange decreased costs by $9.6 million to $29.9 million for the quarter.

At constant exchange rates, operating income for the fiscal six months ended March 31, 2009, increased to $8.5 million, compared to operating income of $4.7 million reported during the 2008 six months ended March 31. Foreign exchange decreased operating income by $2.5 million to $6.0 million for the six-month period.

Income from continuing operations for the six months ended March 31, 2009, increased to $4.6 million as compared with $3.4 million reported during the 2008 fiscal six-month period. Diluted earnings per share from continuing operations was 10.2 cents for the six month period ended March 31, 2009, compared to diluted earnings per share from continuing operations of 7.6 cents last year.

At March 31, 2009, and September 30, 2008, Allied's cash balance was $28.1 million (£19.7 million) and $26.2 million (£14.4 million), respectively, representing an underlying increase in the cash balance of £5.3 million.

For the fiscal six months ended March 31, 2009, depreciation and amortization was $1.8 million and capital expenditures were $1.6 million. Day Sales Outstanding was eighteen days at March 31, 2009, and twenty-two days at March 31, 2008. The March 31, 2009, DSO was the lowest level achieved by our company and was due to timing of cash collections mainly from the local governmental bodies as a result of the end of their fiscal period as well as the timing of our invoicing.

Management Discussion:

"We are pleased with our continued growth in our homecare business, which showed an increase of 12% over the prior year period. With approximately 80% of our revenues coming from the homecare business, the key dynamics of an aging population, the trend to provide more care in the homecare environment, and the scope for further consolidation of the supplier base, we believe we are well placed to continue our growth in homecare as one of the U.K.'s leading providers," commented Sandy Young, Chief Executive Officer of Allied.

Mr. Young continued: "Our level of contract wins over the last few months has been strong. Our goal over the next few quarters will be to recruit and retain staff to fulfill new contracts, while ensuring our quality of service is maintained. Due to the current economic environment in the U.K. we have noted that it is becoming somewhat easier to recruit staff and our retention rates are improving."

"In the second quarter of fiscal 2009, however, we experienced reductions in our nursing home revenues very similar to the reductions we experienced in the first quarter of fiscal 2009. We believe the use of temporary staff has reduced in nursing homes, but we also believe, that in the short term, the permanent staff in the nursing homes are working additional shifts. This is most likely a response to the problems in the economy."

"While our Hospitals revenues this quarter were slightly lower than the first quarter, we believe this business, which does fluctuate between quarters, will remain at similar levels over the next few quarters until the next framework agreements, which are currently in the formal re-tender stage, are implemented. If we are successful in this re-tender, there may be future growth opportunities for this business."

"As noted in our previous quarter's press release, with nearly all our operations in the United Kingdom, I believe it is important for investors to see the underlying revenues and gross profits in pound currency as detailed below. Our SG&A costs, excluding exchange effects, are very similar to the prior year despite the increase in revenues that we have generated."

                                    Q1 2009                 Q2 2009
                            ----------------------- -----------------------
                                          Gross                   Gross
                              Revenue     Margin      Revenue     Margin
                            ----------- ----------- ----------- -----------

(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
Hospital Staffing                 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
                            =========== =========== =========== ===========



                                Q1 2008                   Q2 2008
                        ------------------------- -------------------------
                                        Gross                     Gross
                          Revenue      Margin       Revenue      Margin
                        ------------ ------------ ------------ ------------

(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      Margin       Revenue      Margin
                        ------------ ------------ ------------ ------------

(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
                        ============ ============ ============ ============


Mr. Young concluded: "Our operating income for the quarter of $4.1 million, excluding exchange, compares to $2.5 million for the same prior year quarter which is an increase of 65% and reflects the continued improvements we are making across the business to help us affirm our position as one of the leaders in the U.K. homecare market place."

Paul Weston, the Chief Financial Officer, also commented: "The Board is well advanced in its selection of a retained investment banker to help advise the Board on its capital deployment strategy to ensure shareholder value is maximized in the medium term."

The Company also recently announced the implementation of the Chief Executive Officer's Long Term Incentive Plan, which targets growth in sales, earnings per share and earnings before interest, taxes and amortization. In finalizing the Long Term Incentive Plan, the Board commissioned external consultants to review the business plan projections of the Company. The conclusion of that exercise confirmed that the Company should continue to focus on providing services to the local authority, private homecare, individuals with learning disabilities, and continuing care as they are all growing business sectors where the Company already has market leading positions.

The Company also noted that Jeffrey S. Peris, a board member since 1998, has been appointed interim non-executive chairman of the Board in place of H.J. Mark Tompkins who will leave the Board following the annual shareholders meeting on June 10, 2009.

Conference Call Information -- May 5, 2009 at 10:00AM EDT / 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, May 5, 2009, at 10:00AM EDT / 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 321299. 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 approximately one hundred 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; Allied's ability to enter into contracts with local government social services departments, NHS Trusts, hospitals and other healthcare facility clients on terms attractive to Allied; the general level of patient occupancy at our clients' hospitals and healthcare facilities; dependence on the proper functioning of Allied's information systems; the effect of existing or future government regulation of the healthcare 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

                                 Three Months Ended     Six Months Ended
                                --------------------  --------------------
                                March 31,  March 31,  March 31,  March 31,
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Revenues:
  Net patient services          $  55,334  $  73,815  $ 116,862  $ 148,585
                                ---------  ---------  ---------  ---------

Cost of revenues:
  Patient services                 38,168     51,884     80,883    104,231
                                ---------  ---------  ---------  ---------

    Gross profit                   17,166     21,931     35,979     44,354

Selling, general and
 administrative expenses           14,389     19,455     29,948     39,648
                                ---------  ---------  ---------  ---------

    Operating income                2,777      2,476      6,031      4,706

Interest income                       115        171        379        404
Interest expense                       (7)       (47)       (14)      (103)
Foreign exchange loss                 (45)       (12)      (367)      (149)
                                ---------  ---------  ---------  ---------

    Income before income
     taxes and discontinued
     operations                     2,840      2,588      6,029      4,858

Provision for income taxes            696        824      1,418      1,416
                                ---------  ---------  ---------  ---------

    Income from continuing
     operations                     2,144      1,764      4,611      3,442
                                ---------  ---------  ---------  ---------

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

Net income                      $   2,511  $   1,764  $   4,978  $   3,442
                                =========  =========  =========  =========

Basic and diluted net income
 per share of common stock
    Income from continuing
     operations                 $    0.05  $    0.04  $    0.10  $    0.08
    Income from discontinued
     operations                      0.01          -       0.01          -
                                ---------  ---------  ---------  ---------
Net income per share of common
 stock                          $    0.06  $    0.04  $    0.11  $    0.08
                                =========  =========  =========  =========

Weighted average number of
 common shares outstanding:
    Basic                          44,986     44,986     44,986     44,986
                                =========  =========  =========  =========
    Diluted                        44,986     45,059     44,986     45,116
                                =========  =========  =========  =========





ALLIED HEALTHCARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
                                               March 31,    September 30,
                                                 2009           2008
                                              (Unaudited)
                                             -------------- --------------
                  ASSETS

Current assets:
  Cash and cash equivalents                  $       28,072 $       26,199
  Restricted Cash                                         -            136
  Accounts receivable, less allowance for
   doubtful accounts of $632 and $823,
   respectively                                      11,047         17,774
  Unbilled accounts receivable                       13,958         15,892
  Deferred income taxes                               2,383            474
  Prepaid expenses and other assets                   1,133          1,375
  Taxes receivable                                      292              -
  Assets of discontinued operations                       -            182
                                             -------------- --------------
         Total current assets                        56,885         62,032

Property and equipment, net                           7,055          8,574
Goodwill                                             85,975        109,292
Other intangible assets, net                          2,043          3,345
Taxes receivable                                          -             19
                                             -------------- --------------
         Total assets                        $      151,958 $      183,262
                                             ============== ==============

    LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable                           $        1,385 $        1,614
  Accrued expenses, inclusive of payroll and
   related expenses                                  21,905         28,244
  Taxes payable                                          15              -
  Liabilities of discontinued operations                  -            624
                                             -------------- --------------
         Total current liabilities                   23,305         30,482

Deferred income taxes                                    54            110
                                             -------------- --------------
         Total liabilities                           23,359         30,592
                                             -------------- --------------

Commitments and contingencies (Notes 7,
 8 and 12)

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 and 45,571
   shares, respectively                                 456            456
  Additional paid-in capital                        241,216        241,018
  Accumulated other comprehensive (loss)
   income                                           (27,428)         1,819
  Accumulated deficit                               (83,351)       (88,329)
                                             -------------- --------------
                                                    130,893        154,964
  Less cost of treasury stock (585 shares)           (2,294)        (2,294)
                                             -------------- --------------
         Total shareholders' equity                 128,599        152,670
                                             -------------- --------------
         Total liabilities and shareholders'
          equity                             $      151,958 $      183,262
                                             ============== ==============





ALLIED HEALTHCARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                   Six Months Ended
                                              March 31,       March 31,
                                                 2009            2008
                                            --------------  --------------
Cash flows from operating activities:
    Net income                              $        4,978  $        3,442
    Adjustments to reconcile net income to
     net cash provided by operating
     activities:
            Income from discontinued
             operations                               (367)              -
            Depreciation and amortization            1,198           1,665
            Amortization of intangible
             assets                                    608             855
            Foreign exchange loss                      104               -
            Provision for (reversal of)
             allowance for doubtful
             accounts                                  106            (516)
           Loss (gain) on sale of fixed
            assets                                       5             (23)
           Stock based compensation                    198             379
           Deferred income taxes                     1,403             (96)
    Changes in operating assets and
     liabilities, excluding the effect of
     businesses acquired and sold:
            Decrease in accounts receivable          2,920           3,131
            Increase in prepaid expenses
             and other assets                       (1,700)         (4,632)
            Decrease in accounts payable
             and other liabilities                      (2)         (3,941)
                                            --------------  --------------

                Net cash provided by
                 continuing operations               9,451             264
                Net cash used in
                 discontinued operations                 -            (572)
                                            --------------  --------------
                Net cash provided by (used
                 in) operating activities            9,451            (308)
                                            --------------  --------------

Cash flows from investing activities:
    Capital expenditures                            (1,574)         (1,006)
    Proceeds from sale of business                     113          54,692
    Proceeds from sale of property and
     equipment                                           1              49
    Payments on acquisitions payable                  (170)              -
                                            --------------  --------------

                                            --------------  --------------
                Net cash (used in) provided
                 by investing activities            (1,630)         53,735
                                            --------------  --------------

Cash flows from financing activities:
    Payments on revolving loan                           -         (25,149)
    Payments on invoice discounting
     facility                                            -          (4,546)
    Payments on long-term debt                           -         (24,143)
    Proceeds from sale of interest rate
     swap agreements                                     -             629
                                            --------------  --------------

                Net cash used in financing
                 activities                              -         (53,209)
                                            --------------  --------------

Effect of exchange rate on cash                     (5,948)              -
                                            --------------  --------------

Increase in cash                                     1,873             218

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

Cash and cash equivalents, end of period    $       28,072  $       20,459
                                            ==============  ==============

Supplemental cash flow information:
  Cash paid for interest                    $           14  $        1,117
                                            ==============  ==============

  Cash paid for income taxes, net           $            -  $        3,128
                                            ==============  ==============


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