SOURCE: Allied Healthcare

Allied Healthcare

August 04, 2009 07:00 ET

Allied Healthcare International Inc. Reports Fiscal 2009 Third Quarter Results

Revenues Increase 7.3%, at Constant Exchange Rates

NEW YORK, NY--(Marketwire - August 4, 2009) - Allied Healthcare International Inc. (NASDAQ: AHCI) (AIM: AHI)

                                                   Fiscal 2009  Fiscal 2008
                                                       Third       Third
 (In millions, except EPS)                            Quarter     Quarter
Revenues, as reported                               $     63.1  $     75.0
Revenues, at constant exchange rates                $     80.5  $     75.0
Gross Profit, as reported                           $     19.2  $     23.1
Gross Profit, at constant exchange rates            $     24.5  $     23.1
Gross Margin %                                            30.4%       30.8%
Operating Income, as reported                       $      2.9  $      3.7
Operating Income, at constant exchange rates        $      4.0  $      3.7
Diluted EPS, continuing operations                  $     0.05  $     0.05
                                                    ==========  ==========

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 third 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, gross profits, selling, general and administrative costs and operating income 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 seven 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 Third Quarter Results:

                                    Quarter Ended June 30, 2009
                          ------------------------------------------------
                                                Gross               Gross
                          Revenue       %      Margin       %     Margin %
                          --------  --------  --------  --------  --------

(Amounts in thousands)
Homecare                  $ 67,468      83.8% $ 20,782      85.0%     30.8%
Nursing Homes                7,309       9.1%    2,336       9.6%     32.0%
Hospitals                    5,731       7.1%    1,333       5.4%     23.3%
                          --------            --------
Total, at constant
 exchange rates             80,508              24,451                30.4%
Effect of foreign
 exchange                  (17,405)             (5,278)
                          --------            --------
Total, as reported        $ 63,103            $ 19,173
                          ========            --------

SG&A, at constant
 exchange rates                               $ 20,473

Effect of foreign
 exchange                             (4,197)
                                    --------
SG&A, as reported                             $ 16,276
                                              --------

Operating Income, at
 constant exchange rates                      $  3,978
Effect of foreign
 exchange                                       (1,081)
                                              --------
Operating Income, as
 reported                                     $  2,897
                                              ========




                                    Quarter Ended June 30, 2008
                          -------------------------------------------------
                                                Gross               Gross
                          Revenue       %      Margin       %     Margin %
                          --------- --------  --------- --------  --------

(Amounts in thousands)
Homecare                  $  57,497     76.7% $  18,351     79.4%     31.9%
Nursing Homes                 9,783     13.0%     3,018     13.0%     30.8%
Hospitals                     7,744     10.3%     1,751      7.6%     22.6%
                          ---------           ---------
Total, at constant
 exchange rates              75,024              23,120               30.8%
Effect of foreign
 exchange                         -                   -
                          ---------           ---------
Total, as reported        $  75,024           $  23,120
                          =========           ---------

SG&A, at constant
 exchange rates                               $  19,437
Effect of foreign
 exchange                                             -
                                              ---------
SG&A, as reported                             $  19,437
                                              ---------

Operating Income, at
 constant exchange rates                      $   3,683
Effect of foreign
 exchange                                             -
                                              ---------
Operating Income, as
 reported                                     $   3,683
                                              =========

For the third quarter of fiscal 2009, at constant exchange rates, revenues increased by $5.5 million, or 7.3%, to $80.5 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 17.3% to $67.5 million. Nursing Home revenues declined by 25.3% to $7.3 million. Hospital revenues decreased by 26.0% to $5.7 million. After the unfavorable impact of currency exchange of $17.4 million, revenues decreased to $63.1 million.

At constant exchange rates, total gross profit for the third fiscal quarter increased 5.8% to $24.5 million, compared with $23.1 million reported for the comparable quarter in fiscal 2008. Gross profit margin for the third quarter was 30.4%, as compared to 30.8% for the comparable prior period. Foreign exchange decreased gross profit by $5.3 million to $19.2 million for the quarter.

At constant exchange rates, SG&A for the third fiscal quarter was $20.5 million, compared with $19.4 million reported last year. As a percent of revenues, SG&A costs were 25.8%, compared to 25.9% in the comparable prior year period. Foreign exchange decreased costs by $4.2 million to $16.3 million for the quarter.

At constant exchange rates, operating income for the third quarter of fiscal 2009 increased to $4.0 million, compared to operating income of $3.7 million reported during the 2008 third fiscal quarter. Foreign exchange decreased operating income by $1.1 million to $2.9 million for the quarter.

Net income for the third quarter of fiscal 2009 was $2.4 million, as compared with $2.5 million reported during the 2008 third fiscal quarter. Diluted earnings per share was $0.05 for the quarter, compared to diluted earnings per share of $0.05 last year.

Fiscal Nine-Month Results:


                                Nine Months Ended June 30, 2009
                     -----------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Margin       %      Margin %
                     ---------  ---------  ---------  ---------  ---------


(Amounts in
 thousands)
Homecare             $ 191,156       80.8% $  59,491       82.1%      31.1%
Nursing Homes           25,349       10.8%     7,919       10.9%      31.2%
Hospital Staffing       19,935        8.4%     5,049        7.0%      25.3%
                     ---------             ---------
Total, at constant
 exchange rates        236,440                72,459                  30.6%
Effect of foreign
 exchange              (56,475)              (17,307)
                     ---------             ---------
Total, as reported   $ 179,965             $  55,152
                     =========             ---------

SG&A, at constant
 exchange rates                            $  59,997

Effect of foreign
 exchange                                    (13,773)
                                           ---------
SG&A, as reported                          $  46,224
                                           ---------

Operating Income, at
 constant exchange
 rates                                     $  12,462
Effect of foreign
 exchange                                     (3,534)
                                           ---------
Operating Income,
 as reported                               $   8,928
                                           =========




                                Nine Months Ended June 30, 2008
                     ------------------------------------------------------
                                             Gross                 Gross
                      Revenue       %        Margin       %      Margin %
                     ---------- ---------  ---------- ---------  ---------

(Amounts in
 thousands)
Homecare             $  167,991      75.1% $   52,491      77.8%      31.2%
Nursing Homes            32,123      14.4%      9,661      14.3%      30.1%
Hospital Staffing        23,495      10.5%      5,322       7.9%      22.7%
                     ----------            ----------
Total, at constant
 exchange rates         223,609                67,474                 30.2%
Effect of foreign
 exchange                     -                     -
                     ----------            ----------
Total, as reported   $  223,609            $   67,474
                     ==========            ----------

SG&A, at constant
 exchange rates                            $   59,085
Effect of foreign
 exchange                                           -
                                           ----------
SG&A, as reported                          $   59,085
                                           ----------

Operating Income, at
 constant exchange
 rates                                     $    8,389
Effect of foreign
 exchange                                           -
                                           ----------
Operating Income,
 as reported                               $    8,389
                                           ==========

For the fiscal nine months ended June 30, 2009, at constant exchange rates, revenues increased by $12.8 million, or 5.7%, to $236.4 million, compared with $223.6 million reported during the same period in fiscal 2008. Contributing to the increase in revenues was Allied's Homecare revenues, which grew by 13.8% to $191.2 million. Nursing Home revenues declined by 21.1% to $25.3 million. Hospital revenues decreased by 15.2% to $19.9 million. After the unfavorable impact of currency exchange of $56.4 million, revenues decreased to $180.0 million.

At constant exchange rates, total gross profit for the fiscal nine months ended June 30, 2009, increased 7.4% to $72.5 million, compared with $67.5 million reported for the comparable period in fiscal 2008. Gross profit margin for the fiscal nine months ended June 30, 2009, increased to 30.6% from 30.2% for the comparable prior period. Foreign exchange decreased gross profit by $17.3 million to $55.2 million for the quarter.

At constant exchange rates, SG&A for the fiscal nine months ended June 30, 2009, was $60.0 million, compared with $59.1 million reported last year, an increase of 1.5%. As a percent of revenues, SG&A costs were 25.7% compared to 26.4% in the comparable prior year period. Foreign exchange decreased costs by $13.8 million to $46.2 million for the quarter.

At constant exchange rates, operating income for the fiscal nine months ended June 30, 2009, increased to $12.5 million, compared to operating income of $8.4 million reported during the 2008 nine months ended June 30, an increase of 48.6% over the prior year. Foreign exchange decreased operating income by $3.5 million to $8.9 million for the nine-month period.

Income from continuing operations for the nine months ended June 30, 2009, increased to $7.0 million, as compared with $5.9 million reported during the 2008 fiscal nine-month period. Diluted earnings per share from continuing operations was $0.15 for the nine month period ended June 30, 2009, compared to diluted earnings per share from continuing operations of $0.13 last year.

Net income for the nine months ended June 30, 2009, increased to $7.4 million, as compared with $5.9 million reported during the 2008 fiscal nine-month period. Diluted earnings per share was $0.16 for the nine-month period, 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 $0.13 for the same prior year period.

At June 30, 2009, and September 30, 2008, Allied's cash balance was $33.7 million (£20.4 million) and $26.2 million (£14.4 million), respectively, representing an underlying increase in the cash balance of £6.0 million.

For the fiscal nine months ended June 30, 2009, depreciation and amortization was $2.8 million (£1.8 million) and capital expenditures were $2.2 million (£1.4 million). Days Sales Outstanding was twenty-four days at June 30, 2009 (46 days including unbilled account receivables), and twenty-five days at June 30, 2008 (44 days including unbilled account receivables).

Management Discussion:

"We continue to see good growth in our homecare business, which now represents almost 84% of our business," commented Sandy Young, Chief Executive Officer of Allied. "The revenue growth in the quarter of 17.3% was particularly pleasing and was ahead of the 10-15% growth range that we have recently been operating within. Our Continuing Care continues to grow strongly and accounts for over 15% of the revenues of this business. Continuing Care has benefitted from the restructuring we carried out earlier this year. We have low penetration in this market and our proposition of providing homecare with a lower level medical requirement via support staff under nurse supervision is popular with hospital trusts."

Mr. Young continued: "Our nursing homes and hospital staffing business results continue to struggle but following our acceptance onto the new PASA framework agreements, which come into effect in October 2009, we are hopeful that the higher charges under this revised contract will give us opportunities going forward. The higher charges are necessary to enable us to effectively recruit staff to service this business. We currently have plans in the next financial year to re-launch this service line in a few of our regional offices as well as our existing London operation.

"While current period SG&A running costs of 25.8% of revenues are lower than the prior year period, we are continuing to invest in certain areas of our business that includes such items as continuing care, learning disability, IT systems, 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.

"We currently have several business improvement initiatives under way with project management support. These projects cover winning new business, carer retention, bid implementation, and branch operations. There are also other projects supporting service delivery. We believe that being a high quality service provider is a key driver to increased revenue and profit growth.

"The third quarter also concluded the successful pilot phase of our Coldharbour IT replacement. We now have thirteen branches successfully running on Coldharbour. The cost of the project is within the original budget and time projections with a total capital expenditure of $2.4 million and operating expense of $4.5 million. To date, expenditures have been $2.7 million split between $2.2 million capital and $0.5 million operating expense. The project will allow us to make further efficiencies in the way we process transactions and will also improve service delivery."

Mr. Young concluded: "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 margins year to date of 7.4% and our third quarter gross margin of 30.4% is well within our expectations. Our SG&A costs year to date, excluding exchange effects, increased by 1.5%, compared to the prior year despite the increase in revenues that we have generated."


                Q1 2009               Q2 2009               Q3 2009
          --------------------- --------------------- ---------------------
                       Gross                 Gross                 Gross
           Revenue     Margin    Revenue     Margin    Revenue     Margin
          ---------- ---------- ---------- ---------- ---------- ----------

(Amounts in
 thousands)
Homecare  GBP 30,620  GBP 9,487 GBP 30,858 GBP  9,753 GBP 34,162 GBP 10,525
Nursing
 Homes         4,808      1,477      4,159      1,298      3,716      1,187
Hospital
 Staffing      3,612        973      3,448        874      2,914        679
          ---------- ---------- ---------- ---------- ---------- ----------
Total     GBP 39,040 GBP 11,937 GBP 38,465 GBP 11,925 GBP 40,792 GBP 12,391
Foreign
 exchange
 rate           1.58       1.58       1.44       1.44       1.55       1.55
          ---------- ---------- ---------- ---------- ---------- ----------
Total     $   61,528 $   18,813 $   55,334 $   17,166 $   63,103 $   19,173
          ========== ========== ========== ========== ========== ==========






                                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
                        ============ ============ ============ ============

Dr. Jeffrey Peris, Non-Executive Chairman of the Board of Allied, commented: "Sandy Young and the management team have achieved operating income for the first three quarters of $12.5 million, excluding exchange, which compares to $8.4 million for the same prior year's quarters. This is an increase of 48.6%, 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. We are pleased with the results of the third quarter and that the successes of previous quarters have enabled Allied to be included in the Russell 3,000 Index, thereby providing us with opportunities to reach additional investors."

Conference Call Information -- August 4, 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, August 4, 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 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.

For more news and information on Allied Healthcare International Inc., please visit http://www.IRGnews.com/coi/AHCI where you can find the CEO's video, a fact sheet on the company, investor presentations, and more.

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 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; 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    Nine Months Ended
                                --------------------  --------------------
                                June 30,   June 30,   June 30,   June 30,
                                  2009       2008       2009       2008
                                ---------- ---------  ---------  ---------
Revenues:
  Net patient services          $   63,103 $  75,024  $ 179,965  $ 223,609
                                ---------- ---------  ---------  ---------

Cost of revenues:
  Patient services                  43,930    51,904    124,813    156,135
                                ---------- ---------  ---------  ---------

      Gross profit                  19,173    23,120     55,152     67,474

Selling, general and
 administrative expenses            16,276    19,437     46,224     59,085
                                ---------- ---------  ---------  ---------

      Operating income               2,897     3,683      8,928      8,389

Interest income                         76       216        453        620
Interest expense                         -      (388)       (12)      (491)
Foreign exchange income (loss)         307        (2)       (60)      (151)
                                ---------- ---------  ---------  ---------

      Income before income taxes
       and discontinued
       operations                    3,280     3,509      9,309      8,367

Provision for income taxes             892     1,056      2,310      2,472
                                ---------- ---------  ---------  ---------

      Income from continuing
       operations                    2,388     2,453      6,999      5,895
                                ---------- ---------  ---------  ---------

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

Net income                      $    2,388 $   2,453  $   7,366  $   5,895
                                ========== =========  =========  =========

Basic and diluted net income
 per share of common stock
      Income from continuing
       operations               $     0.05 $    0.05  $    0.15  $    0.13
      Income from discontinued
       operations                        -         -       0.01          -
                                ---------- ---------  ---------  ---------
Net income per share of common
 stock                          $     0.05 $    0.05  $    0.16  $    0.13
                                ========== =========  =========  =========

Weighted average number of
 common shares outstanding:
      Basic                         44,986    44,986     44,986     44,986
                                ========== =========  =========  =========
      Diluted                       44,998    44,993     44,990     45,075
                                ========== =========  =========  =========




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


                                                  June 30,    September 30,
                                                    2009          2008
                                                (Unaudited)
                                                ------------  ------------
                  ASSETS

Current assets:
  Cash and cash equivalents                     $     33,660  $     26,199
  Restricted Cash                                          -           136
  Accounts receivable, less allowance for
   doubtful accounts of $676 and $823,
   respectively                                       16,609        17,774
  Unbilled accounts receivable                        15,355        15,892
  Deferred income taxes                                  372           474
  Prepaid expenses and other assets                    1,581         1,375
  Assets of discontinued operations                        -           182
                                                ------------  ------------
         Total current assets                         67,577        62,032

Property and equipment, net                            8,076         8,574
Goodwill                                              99,550       109,292
Other intangible assets, net                           2,041         3,345
Taxes receivable                                           -            19
                                                ------------  ------------
         Total assets                           $    177,244  $    183,262
                                                ============  ============

     LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable                              $      1,142  $      1,614
  Accrued expenses, inclusive of payroll and
   related expenses                                   26,391        28,244
  Taxes payable                                          777             -
  Liabilities of discontinued operations                   -           624
                                                ------------  ------------
         Total current liabilities                    28,310        30,482

Deferred income taxes                                     62           110
                                                ------------  ------------
         Total liabilities                            28,372        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                         241,385       241,018
  Accumulated other comprehensive (loss) income       (9,712)        1,819
  Accumulated deficit                                (80,963)      (88,329)
                                                ------------  ------------
                                                     151,166       154,964
  Less cost of treasury stock (585 shares)            (2,294)       (2,294)
                                                ------------  ------------
         Total shareholders' equity                  148,872       152,670
                                                ------------  ------------
         Total liabilities and shareholders'
          equity                                $    177,244  $    183,262
                                                ============  ============




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

                                                     Nine Months Ended
                                                    June 30,     June 30,
                                                      2009         2008
                                                  -----------  -----------
Cash flows from operating activities:
  Net income                                      $     7,366  $     5,895
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Income from discontinued operations                 (367)           -
     Depreciation and amortization                      1,880        2,470
     Amortization of intangible assets                    921        1,252
     Foreign exchange gain                               (221)           -
     Increase (decrease) in provision for
      allowance for doubtful accounts                     100         (580)
    Loss (gain) on sale of fixed assets                    11          (22)
    Stock based compensation                              366          669
    Deferred income taxes                                (246)         (42)
  Changes in operating assets and liabilities,
   excluding the effect of businesses acquired
   and sold:
     (Increase) decrease in accounts receivable          (518)         670
     Increase in prepaid expenses and other assets     (1,137)      (2,221)
     Increase (decrease) in accounts payable and
      other liabilities                                 2,875       (3,264)
                                                  -----------  -----------

       Net cash provided by continuing operations      11,030        4,827
       Net cash used in discontinued operations             -         (569)
                                                  -----------  -----------
       Net cash provided by operating activities       11,030        4,258
                                                  -----------  -----------

Cash flows from investing activities:
  Capital expenditures                                 (2,152)      (2,146)
  Proceeds from sale of business                          114       54,334
  Proceeds from sale of property and equipment              1           48
  Payments on acquisitions payable                       (171)           -
                                                  -----------  -----------

                                                  -----------  -----------
       Net cash (used in) provided by investing
        activities                                     (2,208)      52,236
                                                  -----------  -----------

Cash flows from financing activities:
  Payments on revolving loan                                -      (24,984)
  Payments on invoice discounting facility                  -       (4,516)
  Payments on long-term debt                                -      (23,984)
  Proceeds from sale of interest rate swap
   agreements                                               -          625
                                                  -----------  -----------

       Net cash used in financing activities                -      (52,859)
                                                  -----------  -----------

Effect of exchange rate on cash                        (1,361)           1
                                                  -----------  -----------

Increase in cash                                        7,461        3,636

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

Cash and cash equivalents, end of period          $    33,660  $    23,877
                                                  ===========  ===========

Supplemental cash flow information:
  Cash paid for interest                          $       300  $     1,149
                                                  ===========  ===========

  Cash paid for income taxes, net                 $       137  $     4,036
                                                  ===========  ===========

Contact Information

  • Contacts:

    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