Allied Healthcare Products Inc. has a market cap of $34 million; its shares were traded at around $4.23 with and P/S ratio of 0.7. AHPI is in the portfolios of Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of AHPI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AHPI.
Highlight of Business Operations:Allied had net sales of $11.9 million for the three months ended September 30, 2010, up $0.6 million, or 5.3%, from net sales of $11.3 million in the prior year same quarter. Domestic sales were up 0.5% from the prior year same quarter, while international business, which represented 18.8% of first quarter sales, was up 34.2%.
Gross profit for the three months ended September 30, 2010 was $2.6 million, or 21.8% of net sales, compared to $2.4 million, or 21.2% of net sales, for the three months ended September 30, 2009. Gross profit during the first quarter was favorably impacted by cost savings initiatives which reduced the cost of purchased materials and manufactured finished goods, and higher sales which result in better utilization of fixed overhead costs. Gross profit was negatively impacted by approximately $350,000 in shipping and other startup cost at its Stuyvesant Falls facility for the production of its CO2 absorbent product lines. The Company believes that this cost will be approximately $230,000 in the second quarter, and that these additional costs will end during the second quarter.
Selling, general and administrative expenses for the three months ended September 30, 2010 were $2.7 million compared to selling, general and administrative expenses of $3.6 million for the three months ended September 30, 2009. The decrease in selling, general and administrative expenses is due to, among other things, a decrease of approximately $0.6 million in compensation expense related to option grants, a decrease of approximately $0.2 million for compensation expense due to a reduction in the Company s workforce compared to the same quarter of the prior year, and a decrease in selling expenses for outside professional services of approximately $0.1 million.
Loss from operations was $0.1 million for the three months ended September 30, 2010 compared to loss from operations of $1.2 million for the three months ended September 30, 2009. Allied had a loss before benefit for income taxes in the first quarter of fiscal 2011 of $0.1 million, compared to a loss before benefit from income taxes in the first quarter of fiscal 2010 of $1.2 million. The Company recorded a tax benefit of $54,000 for the three months ended September 30, 2010 compared to a tax benefit of $0.5 million for the three months ended September 30, 2009.
Net loss for the first quarter of fiscal 2011 was $88,000 or $0.01 per basic and diluted share compared to net loss of $0.7 million or $0.09 per basic and diluted share for the first quarter of fiscal 2010. The weighted average number of common shares outstanding, used in the calculation of basic and diluted earnings per share for the first quarters of fiscal 2011 and 2010 were 8,093,386 and 7,988,321, respectively.
The Company s working capital was $17.7 million at September 30, 2010 compared to $17.6 million at June 30, 2010. Cash increased $0.1 million and accrued liabilities decreased $0.3 million. Accounts receivable increased $0.2 million to $5.6 million at September 30, 2010. Accounts receivable as measured in days of sales outstanding (“DSO”) increased to 43 DSO at September 30, 2010; up from 40 DSO at June 30, 2010. At September 30, 2010 these increases in working capital were offset by a decrease in inventory of $0.2 million, and a $0.2 million increase in accounts payable.
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