Attached files
file | filename |
---|---|
8-K - FORM 8-K - ALLIED HEALTHCARE INTERNATIONAL INC | c09389e8vk.htm |
Exhibit 99.1
Allied Healthcare International Inc. Reports Fiscal 2010
Fourth Quarter and Year-End Results
Fourth Quarter and Year-End Results
| Fiscal 2010 Revenues Increased 8.0%, At Constant Exchange Rates |
| Fiscal 2010 Operating Income Increased 7.7%, At Constant Exchange Rates &
Excluding Acquisition Costs |
NEW YORK December 7, 2010 Allied Healthcare International Inc. (NASDAQ: AHCI), a leading
provider of flexible healthcare staffing services in the United Kingdom, today issued financial
results for its fiscal 2010 fourth quarter and year-ended September 30, 2010.
To provide investors with a better understanding of the Companys performance and because of
fluctuations in foreign exchange rates, Allied is discussing its revenues, gross profit, selling,
general & administrative (SG&A) expenses and operating income at constant exchange rates, which are
calculated using the comparable prior period weighted average exchange rates. In addition, as the
Companys revenues and gross profit from our principal operations are denominated in pounds
sterling but reported in United States dollars, an analysis, which is contained in the Historical
Revenues and Gross Profit table at the end of this press release, is included of the last eight
quarters revenues and gross profit in pounds sterling to enable investors to fully understand the
underlying trends over these periods without the effects of currency exchange rates.
Fiscal Fourth Quarter Results
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||
2010 | 2009 | Change | 2010 | % | 2009 | % | Change | |||||||||||||||||||||||||
(Amounts in thousands) | Revenues | Gross Profit | ||||||||||||||||||||||||||||||
Homecare |
$ | 64,244 | $ | 58,388 | 10.0 | % | $ | 19,934 | 31.0 | % | $ | 17,893 | 30.6 | % | 11.4 | % | ||||||||||||||||
Nursing Homes |
4,998 | 6,568 | -23.9 | % | 1,641 | 32.8 | % | 2,070 | 31.5 | % | -20.7 | % | ||||||||||||||||||||
Hospitals |
5,120 | 4,889 | 4.7 | % | 1,326 | 25.9 | % | 1,233 | 25.2 | % | 7.5 | % | ||||||||||||||||||||
Total, at constant exchange rates |
74,362 | 69,845 | 6.5 | % | 22,901 | 30.8 | % | 21,196 | 30.3 | % | 8.0 | % | ||||||||||||||||||||
Effect of foreign exchange |
(3,945 | ) | | -5.6 | % | (1,189 | ) | | -5.6 | % | ||||||||||||||||||||||
Total, as reported |
$ | 70,417 | $ | 69,845 | 0.8 | % | $ | 21,712 | $ | 21,196 | 2.4 | % | ||||||||||||||||||||
SG&A | ||||||||||||||||||||||||||||||||
SG&A, at constant exchange rates &
excluding acquisition costs |
$ | 19,033 | $ | 17,010 | 11.9 | % | ||||||||||||||||||||||||||
Acquisition costs, at constant
exchange rates |
157 | | 0.9 | % | ||||||||||||||||||||||||||||
SG&A, at constant exchange rates |
19,190 | 17,010 | 12.8 | % | ||||||||||||||||||||||||||||
Effect of foreign exchange |
(946 | ) | | -5.6 | % | |||||||||||||||||||||||||||
Total SG&A, as reported |
$ | 18,244 | $ | 17,010 | 7.3 | % | ||||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||
Operating income, at constant
exchange rates & excluding
acquisition cost |
$ | 3,868 | $ | 4,186 | -7.6 | % | ||||||||||||||||||||||||||
Acquisition costs, at constant
exchange rates |
(157 | ) | | -3.8 | % | |||||||||||||||||||||||||||
Operating income, at constant
exchange rates |
3,711 | 4,186 | -11.3 | % | ||||||||||||||||||||||||||||
Effect of foreign exchange |
(243 | ) | | -5.8 | % | |||||||||||||||||||||||||||
Operating income, as reported |
$ | 3,468 | $ | 4,186 | -17.2 | % | ||||||||||||||||||||||||||
Net Income Attributable to Allied | ||||||||||||||||||||||||||||||||
Basic | Basic | |||||||||||||||||||||||||||||||
and | and | |||||||||||||||||||||||||||||||
Diluted | Diluted | |||||||||||||||||||||||||||||||
EPS | EPS | |||||||||||||||||||||||||||||||
Income from
continuing
operations
attributable to
Allied, excluding
acquisition costs |
$ | 2,858 | $ | 0.07 | $ | 2,937 | $ | 0.07 | ||||||||||||||||||||||||
Acquisition costs |
(146 | ) | -0.01 | | | |||||||||||||||||||||||||||
Income from
continuing
operations
attributable to
Allied |
$ | 2,712 | $ | 0.06 | $ | 2,937 | $ | 0.07 | ||||||||||||||||||||||||
For the fourth quarter of fiscal 2010, total revenue increased 6.5%, to $74.4 million,
compared with $69.8 million reported during the same period in fiscal 2009. Allieds Homecare
revenue grew 10.0% to $64.2 million. The acquisition completed in our third fiscal quarter
contributed 7.5%, or $4.4 million, to the increase in Homecare revenues. Nursing Homes revenue
declined 23.9% to $5.0 million and Hospitals revenue increased 4.7% to $5.1 million. After the
unfavorable impact of currency exchange of $3.9 million, revenue increased 0.8% year over year to
the reported $70.4 million.
Total gross profit for the fourth fiscal quarter increased 8.0% to $22.9 million, from $21.2
million for the comparable quarter in fiscal 2009. Homecare gross profit grew 11.4% to $19.9
million. The acquisition completed in our third fiscal quarter contributed 7.6%, or $1.4 million,
to the increase in Homecare gross profit. Nursing Homes gross profit declined 20.7% to $1.7
million and Hospitals gross profit increased 7.5% to $1.3 million. Gross profit as a percentage of
revenue was 30.8%, compared with 30.3% for the comparable prior-year period. Foreign exchange
decreased gross profit by $1.2 million to the reported $21.7 million for the 2010 fourth fiscal
quarter.
SG&A, excluding acquisition costs, for the fourth fiscal quarter was $19.0 million (25.6% of
revenues), an increase of 11.9%, from $17.0 million (24.4% of revenues) reported last year. The
acquisition completed in our third fiscal quarter contributed 6.4%, or $1.0 million, to the
increase in SG&A. The Company also incurred acquisition costs of $0.1 million. Foreign exchange
decreased costs by $0.9 million to the reported $18.2 million for the 2010 fourth fiscal quarter.
Operating income, before acquisition costs, for the fourth quarter of fiscal 2010 decreased by 7.6%
to $3.9 million from $4.2 million a year ago. Acquisition costs decreased operating income by $0.1
million. Foreign exchange decreased operating income by $0.3 million to the reported $3.5 million
for the 2010 fourth fiscal quarter.
Income from continuing operations attributable to Allied, excluding acquisition costs, for the
fourth quarter of fiscal 2010 was $2.9 million, or $0.07 per diluted share. Income from continuing
operations attributable to Allied for the fourth quarter of fiscal 2010 was $2.7 million, or $0.06
per diluted share, compared with $2.9 million, $0.07 per diluted share, reported during the 2009
fourth fiscal quarter.
Fiscal 2010 Full Year Results
Year Ended September 30, | Year Ended September 30, | |||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||
2010 | 2009 | Change | 2010 | % | 2009 | % | Change | |||||||||||||||||||||||||
(Amounts in thousands) | Revenue | Gross Profit | ||||||||||||||||||||||||||||||
Homecare |
$ | 231,718 | $ | 203,885 | 13.7 | % | $ | 71,314 | 30.8 | % | $ | 63,176 | 31.0 | % | 12.9 | % | ||||||||||||||||
Nursing Homes |
18,469 | 25,863 | -28.6 | % | 5,971 | 32.3 | % | 8,097 | 31.3 | % | -26.3 | % | ||||||||||||||||||||
Hospitals |
19,571 | 20,062 | -2.4 | % | 4,618 | 23.6 | % | 5,075 | 25.3 | % | -9.0 | % | ||||||||||||||||||||
Total, at constant exchange rates |
269,758 | 249,810 | 8.0 | % | 81,903 | 30.4 | % | 76,348 | 30.6 | % | 7.3 | % | ||||||||||||||||||||
Effect of foreign exchange |
1,321 | | 0.5 | % | 402 | | 0.5 | % | ||||||||||||||||||||||||
Total, as reported |
$ | 271,079 | $ | 249,810 | 8.5 | % | $ | 82,305 | $ | 76,348 | 7.8 | % | ||||||||||||||||||||
SG&A | ||||||||||||||||||||||||||||||||
SG&A, at constant exchange rates &
excluding acquisition costs |
$ | 67,776 | $ | 63,234 | 7.2 | % | ||||||||||||||||||||||||||
Acquisition costs, at constant exchange
rates |
752 | | 1.2 | % | ||||||||||||||||||||||||||||
SG&A, at constant exchange rates |
68,528 | 63,234 | 8.4 | % | ||||||||||||||||||||||||||||
Effect of foreign exchange |
318 | | 0.5 | % | ||||||||||||||||||||||||||||
Total SG&A, as reported |
$ | 68,846 | $ | 63,234 | 8.9 | % | ||||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||
Operating income, at constant
exchange rates & excluding
acquisition cost |
$ | 14,127 | $ | 13,114 | 7.7 | % | ||||||||||||||||||||||||||
Acquisition costs, at constant
exchange rates |
(752 | ) | | -5.7 | % | |||||||||||||||||||||||||||
Operating income, at constant
exchange rates |
13,375 | 13,114 | 2.0 | % | ||||||||||||||||||||||||||||
Effect of foreign exchange |
84 | | 0.6 | % | ||||||||||||||||||||||||||||
Operating income, as reported |
$ | 13,459 | $ | 13,114 | 2.6 | % | ||||||||||||||||||||||||||
Net Income Attributable to Allied | ||||||||||||||||||||||||||||||||
Basic | Basic | |||||||||||||||||||||||||||||||
and | and | |||||||||||||||||||||||||||||||
Diluted | Diluted | |||||||||||||||||||||||||||||||
EPS | EPS | |||||||||||||||||||||||||||||||
Income from
continuing
operations
attributable to
Allied, excluding
acquisition costs |
$ | 10,624 | $ | 0.24 | $ | 9,936 | $ | 0.22 | ||||||||||||||||||||||||
Acquisition costs |
(756 | ) | -0.02 | | | |||||||||||||||||||||||||||
Income from
continuing
operations
attributable to
Allied |
$ | 9,868 | $ | 0.22 | $ | 9,936 | $ | 0.22 | ||||||||||||||||||||||||
For the year ended September 30, 2010 total revenue increased 8.0%, to $269.8 million,
compared with $249.8 million for the same period in fiscal 2009. Allieds Homecare revenue grew
13.7% to $231.7 million. The acquisition completed in the third quarter of fiscal 2010 contributed
3.2%, or $6.5 million, to the increase in Homecare revenues. Nursing Homes revenue declined 28.6%
to $18.5 million and Hospitals revenue declined 2.4% to $19.6 million. After the favorable impact
of currency exchange of $1.3 million, revenue increased 8.5% year over year to the reported $271.1
million for fiscal 2010.
Total gross profit for the year ended September 30, 2010 increased 7.3% to $81.9 million, from
$76.3 million for the comparable period in fiscal 2009. Homecare gross profit grew 12.9% to $71.3
million. The acquisition completed in our third fiscal quarter contributed 3.1%, or $2.0 million,
to the increase in Homecare gross profit. Nursing Homes gross profit declined 26.3% to $6.0
million and Hospitals gross profit declined 9.0% to $4.6 million. Gross profit as a percentage of
revenue was 30.4%, compared with 30.6% for the comparable
prior-year period. Foreign exchange increased gross profit by $0.4 million to the reported $82.3
million for fiscal 2010.
SG&A, excluding acquisition costs, for the year ended September 30, 2010 was $67.8 million (25.1%
of revenues), an increase of 7.2%, from $63.2 million (25.3% of revenues) reported last year. The
acquisition completed in our third fiscal quarter contributed 2.4%, or $1.5 million, to the
increase in SG&A. We also incurred acquisition costs of $0.7 million. Foreign exchange increased
costs by $0.3 million to the reported $68.8 million for fiscal 2010.
Operating income, before acquisition costs, for the year ended September 30, 2010 increased by 7.7%
to $14.1 million from $13.1 million a year ago. Acquisition costs decreased operating income by
$0.7 million. Foreign exchange increased operating income by $0.1 million to the reported $13.5
million for fiscal 2010.
Income from continuing operations attributable to Allied, excluding acquisition costs, for the year
ended September 30, 2010 was $10.6 million, or $0.24 per diluted share. Income from continuing
operations attributable to Allied for the year ended September 30, 2010 was $9.9 million, or $0.22
per diluted share, compared with $9.9 million, $0.22 per diluted share, reported during fiscal
2009.
At September 30, 2010 and September 30, 2009, Allied cash balance was $39.0 million (£24.7 million)
and $35.3 million (£22.2 million), respectively, represent an underlying increase in the cash
balance of $3.7 million (£2.5 million).
For the year ended September 30, 2010, depreciation and amortization was $4.4 million (£2.8
million), capital expenditures were $2.8 million (£1.8 million). Days Sales Outstanding was 26 days
at September 30, 2010 (43 days including unbilled account receivables), and 25 days at September
30, 2009 (40 days including unbilled account receivables).
Management Discussion
Sandy Young, Chief Executive Officer of Allied, commented, Allieds financial performance during
the fourth quarter reflects tightening in the U.K. governments spending and challenging
macroeconomic factors. The acquisition of Homecare business in Ireland contributed $4.4 million to
Allieds top line during the quarter, resulting in 10% growth of our Homecare revenue compared to
the fourth quarter a year ago. Excluding the acquisition, our Homecare revenue grew 2.5% year over
year, with an 11.5% increase in continuing care.
In order to reduce the U.K. governments fiscal deficit, following its Comprehensive Spending
Review, HM Treasury announced in October 2010 its plans to achieve a significant reduction in
public spending. While the U.K. government has stated that it will increase spending in the
National Health Service over the next four years to support healthcare, we note the increase will
be partially offset as the NHS have increased obligations and cost of treatments going forward due
to the growing population and demand for better healthcare. However, the Comprehensive Spending
Review will also allocate £2 billion a year of
additional funding by 2014-15 to support social care. Combined with a program of reform and
efficiency savings, such as greater use of personal budgets, the U.K. government believes this
should mean local authorities should be able to improve outcomes and should not need to reduce
eligibility for services.
The Comprehensive Spending Review also announced significant cuts in funding to local authorities,
the main providers of social care, and other public bodies, which are a key source of revenue to
Allied. Individual local authorities will decide which of their back office costs and front line
services to allocate savings to.
Based on the current and anticipated changes in the U.K. governments policies, we believe that it
is possible that demand will be flat on a consecutive basis for the near term. However, due to
Allieds favorable position in the industry, strong reputation and innovative business approach, we
expect to return to growth in the mid-term.
Allied is in a good position to benefit from joint commissioning of health and social care. For
example:
| Within our homecare revenue, we have over $159 million (£102 million) in social care
revenue, $57.7 million (£37 million) in continuing care revenue and $13.3 million (£8.5
million) in learning disability revenue; |
| We are introducing new Primary Care Trust services this year. They will include our night
roaming service, our end of life services and other specialist health services; |
| We are winning extra care contracts, a potentially new revenue stream; |
| We are looking at new homecare solutions, including Telecare/Telehealth; and |
| We are extending the boundaries of the care and supported living we provide to include
childrens services and services for drug and alcohol abuse. Some of these require rental
housing to be part of the package. |
Although we anticipate that there will be continuing tension in spending, we believe that councils
and PCTs are likely to:
| Outsource more than they do at present, particularly in Scotland, Wales and Ireland; |
| Have the ability to get incremental savings by directing greater volumes to providers of
scale like Allied; |
| Keep individuals out of hospital and in their own homes; |
| Favor lower cost homecare over more expensive residential care; |
| Pursue new and quite entrepreneurial services around the end of life pathway; and |
| Still need to provide for the increasing numbers of elderly each year. |
So today, Allied can claim to be one of the leading providers of health and social care in the
U.K., and we continue to expand our market footprint. During the fourth quarter and in subsequent
months we won a number of domiciliary care framework contracts, the two largest being:
| East Sussex County Council Up to 2,000 hours per week for four years, which commenced
November 2010. |
| Cardiff City Council Up to 2,000 hours per week for three years, commencing April 2011. |
In addition we have won a community homecare contract with Leeds City Council and NHS, and a
contract for nursing supplied with Welsh Health Supply. We have also seen a number of positive wins
in continuing care from framework agreements, including Doncaster and an additional opportunity in
Sheffield.
In a consistent pursuit of improving and expanding our value proposition, we continued to make
investments in our operational infrastructure. To date, 55 of our branches are live on Coldharbour,
and the software rollout is continuing according to plan. Our customer complaints and risk
management system, which was built in house, is currently under testing and is planned to go live
at the beginning of calendar 2011. Additionally, we are actively working on several other projects,
such as call monitoring, carer retention and the centralization of our on-call out of hours
service. We also piloted our recruitment screening and compliance department project in Wales and
have received very positive feedback. Our recruitment pipeline tracker is undergoing design changes
for full rollout to the business in the near future.
In summary, Allied is well positioned to capitalize on the growing elderly population, shift from
residential to homecare services and the move towards joint commissioning of health and social
care, concluded Mr. Young.
Dr. Jeffrey Peris, Chairman of Allied, commented, The Board remains confident in the opportunities
for growth through management actions on innovative initiatives. Based on our identified
strategies for growth being successfully implemented, our financial track record over the last few
years, our focus and results in improving operating efficiencies, and the recruitment and
retention of talented people we continue to strive to enhance shareholder value.
Conference Call Information: December 7, 2010 at 10:00 AM Eastern Time / 3:00 PM UK Time
Allied will host a call and webcast today at 10:00 AM Eastern Time / 3:00 PM UK Time, to discuss
its financial results. To join the call, please dial (877) 407-8031 for domestic participants and
(201) 689-8031 for international participants. Participants may also access a live webcast of the
conference call through the Investors section of Allied Healthcares Website:
www.alliedhealthcare.com. A telephone replay will be available for two weeks 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 360782. A
webcast replay will also be available and archived on the Companys website for ninety days.
Reconciliation of GAAP and Non-GAAP Data
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 and acquisition costs. Management believes that the presentation of these
non-GAAP measures provides useful information to investors regarding the Companys 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. is a leading provider of flexible healthcare staffing services
in the United Kingdom. Allied operates a community-based network of approximately 115 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.
For more news and information please visit: www.alliedhealthcare.com.
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; the effect of the
change in the U.K. government and the impact of proposed changes in recent policy making related to
health and social care that may reduce revenue and profitability; the impact of the HM Treasury
Comprehensive Spending Review 2010 setting out the U.K. governments plans to reduce spending;
Allieds ability to continue to recruit and retain flexible healthcare staff; Allieds 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 and spending for healthcare and social care; dependence on the proper functioning
of Allieds information systems; the effect of existing or future government regulation of the
healthcare and social care industry, and Allieds 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;
the effect of existing or future government regulation in relation to employment and agency
workers rights and benefits, including changes to National Insurance rates and pension provision;
Allieds 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 Allieds 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.
Sandy Young
Chief Executive Officer
Paul Weston
Chief Financial Officer
+44 (0) 17 8581 0600
Chief Executive Officer
Paul Weston
Chief Financial Officer
+44 (0) 17 8581 0600
Or
ICR, LLC
Sherry Bertner
Managing Director
+1 646 277 1200
sherry.bertner@icrinc.com
Sherry Bertner
Managing Director
+1 646 277 1200
sherry.bertner@icrinc.com
ALLIED HEALTHCARE INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended | Year Ended | Year Ended | ||||||||||
September 30, | September 30, | September 30, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
Revenues: |
||||||||||||
Net patient services |
$ | 271,079 | $ | 249,810 | $ | 298,577 | ||||||
Cost of revenues: |
||||||||||||
Patient services |
188,774 | 173,462 | 208,192 | |||||||||
Gross profit |
82,305 | 76,348 | 90,385 | |||||||||
Selling, general and administrative expenses |
68,846 | 63,234 | 77,655 | |||||||||
Operating income |
13,459 | 13,114 | 12,730 | |||||||||
Interest income |
361 | 537 | 935 | |||||||||
Interest expense |
(30 | ) | (110 | ) | (542 | ) | ||||||
Foreign exchange loss |
(210 | ) | (197 | ) | (586 | ) | ||||||
Income before income taxes and discontinued
operations |
13,580 | 13,344 | 12,537 | |||||||||
Provision for income taxes |
3,524 | 3,408 | 3,751 | |||||||||
Income from continuing operations |
10,056 | 9,936 | 8,786 | |||||||||
Discontinued operations: |
||||||||||||
Income from discontinued operations, net of taxes |
| 367 | | |||||||||
Net income |
10,056 | 10,303 | 8,786 | |||||||||
Less: Net income attributable to noncontrolling interest |
(188 | ) | | | ||||||||
Net income attributable to Allied Healthcare International
Inc. |
$ | 9,868 | $ | 10,303 | $ | 8,786 | ||||||
Amounts attributable to Allied Healthcare International Inc.: |
||||||||||||
Income from continuing operations, net of tax |
$ | 9,868 | $ | 9,936 | $ | 8,786 | ||||||
Discontinued operations, net of tax |
| 367 | | |||||||||
Net income |
$ | 9,868 | $ | 10,303 | $ | 8,786 | ||||||
Basic earnings per share attributable to Allied Healthcare
International Inc. common shareholders |
||||||||||||
Income from continuing operations |
$ | 0.22 | $ | 0.22 | $ | 0.20 | ||||||
Income from discontinued operations |
| 0.01 | | |||||||||
Net income attributable to Allied Healthcare International
Inc. common shareholders |
$ | 0.22 | $ | 0.23 | $ | 0.20 | ||||||
Diluted earnings per share attributable to Allied Healthcare
International Inc. common shareholders |
||||||||||||
Income from continuing operations |
$ | 0.22 | $ | 0.22 | $ | 0.19 | ||||||
Income from discontinued operations |
| 0.01 | | |||||||||
Net income attributable to Allied Healthcare International
Inc. common shareholders |
$ | 0.22 | $ | 0.23 | $ | 0.19 | ||||||
Weighted average number of common shares outstanding: |
||||||||||||
Basic |
44,796 | 44,986 | 44,986 | |||||||||
Diluted |
45,009 | 45,011 | 45,078 | |||||||||
ALLIED HEALTHCARE INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 39,031 | $ | 35,273 | ||||
Accounts receivable, less allowance for doubtful
accounts of $732 and $839, respectively |
20,092 | 19,594 | ||||||
Unbilled accounts receivable |
13,393 | 11,572 | ||||||
Deferred income taxes |
552 | 389 | ||||||
Prepaid expenses and other assets |
1,943 | 1,188 | ||||||
Total current assets |
75,011 | 68,016 | ||||||
Property and equipment, net |
8,924 | 7,756 | ||||||
Goodwill |
102,945 | 95,649 | ||||||
Other intangible assets, net |
3,501 | 1,646 | ||||||
Total assets |
$ | 190,381 | $ | 173,067 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 1,581 | $ | 1,186 | ||||
Current maturities of debt and capital leases |
614 | | ||||||
Accrued expenses, inclusive of payroll and related expenses |
25,897 | 24,304 | ||||||
Taxes payable |
2,310 | 201 | ||||||
Total current liabilities |
30,402 | 25,691 | ||||||
Long-term debt and capital leases, net of current maturities |
389 | | ||||||
Deferred income taxes |
1,534 | 103 | ||||||
Other long-term liabilities |
308 | | ||||||
Total liabilities |
32,633 | 25,794 | ||||||
Commitments and contingencies |
||||||||
Noncontrolling interest |
4,358 | | ||||||
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 45,721 and 45,571 shares, respectively |
457 | 456 | ||||||
Additional paid-in capital |
242,478 | 241,555 | ||||||
Accumulated other comprehensive loss |
(15,267 | ) | (14,418 | ) | ||||
Accumulated deficit |
(68,158 | ) | (78,026 | ) | ||||
159,510 | 149,567 | |||||||
Less cost of treasury stock (2,150 and 585 shares,
respectively) |
(6,120 | ) | (2,294 | ) | ||||
Total shareholders equity |
153,390 | 147,273 | ||||||
Total liabilities and shareholders equity |
$ | 190,381 | $ | 173,067 | ||||
ALLIED HEALTHCARE INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended | Year Ended | Year Ended | ||||||||||
September 30, | September 30, | September 30, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
Cash flows from operating activities: |
||||||||||||
Net income |
$ | 10,056 | $ | 10,303 | $ | 8,786 | ||||||
Adjustments to reconcile net income to net
cash provided by operating activities: |
||||||||||||
Income from discontinued operations |
| (367 | ) | | ||||||||
Depreciation and amortization |
3,108 | 2,590 | 3,231 | |||||||||
Amortization of intangible assets |
1,324 | 1,252 | 1,634 | |||||||||
Foreign exchange (gain) loss |
(43 | ) | 7 | | ||||||||
Increase (decrease) in provision for allowance for doubtful accounts |
30 | 360 | (167 | ) | ||||||||
Loss on sale of fixed assets |
31 | 20 | 166 | |||||||||
Stock based compensation |
636 | 537 | 812 | |||||||||
Deferred income taxes |
61 | 117 | 88 | |||||||||
Changes in operating assets and liabilities, excluding
the effect of businesses acquired and sold: |
||||||||||||
Decrease (increase) in accounts receivable |
82 | (4,281 | ) | 1,579 | ||||||||
(Increase) decrease in prepaid expenses and other assets |
(1,544 | ) | 2,318 | (3,488 | ) | |||||||
Increase (decrease) in accounts payable and other liabilities |
2,260 | 2,867 | (3,779 | ) | ||||||||
Net cash provided by continuing operations |
16,001 | 15,723 | 8,862 | |||||||||
Net cash used in discontinued operations |
| | (561 | ) | ||||||||
Net cash provided by operating activities |
16,001 | 15,723 | 8,301 | |||||||||
Cash flows from investing activities: |
||||||||||||
Capital expenditures |
(2,768 | ) | (2,850 | ) | (3,344 | ) | ||||||
Acquisition of controlling interest, net of cash acquired |
(5,680 | ) | | | ||||||||
Proceeds from sale of business held in escrow and designated for debt
repayment |
| 116 | 53,638 | |||||||||
Proceeds from sale of property and equipment |
73 | 1 | 50 | |||||||||
Payments on acquisitions payable |
| (1,082 | ) | | ||||||||
Net cash (used in) provided by investing activities |
(8,375 | ) | (3,815 | ) | 50,344 | |||||||
Cash flows from financing activities: |
||||||||||||
Repayments of debt and capital lease obligations |
(152 | ) | | | ||||||||
Payments under revolving loan, net |
| | (24,664 | ) | ||||||||
Borrowings (payments) under invoice discounting facility, net |
255 | | (4,458 | ) | ||||||||
Principal payments on long-term debt |
| | (23,678 | ) | ||||||||
Proceeds from sale of interest rate swap agreements |
| | 617 | |||||||||
Treasury shares acquired |
(3,826 | ) | | | ||||||||
Stock options exercised |
288 | | | |||||||||
Net cash used in financing activities |
(3,435 | ) | | (52,183 | ) | |||||||
Effect of exchange rate on cash |
(433 | ) | (2,834 | ) | (504 | ) | ||||||
Increase in cash |
3,758 | 9,074 | 5,958 | |||||||||
Cash and cash equivalents, beginning of year |
35,273 | 26,199 | 20,241 | |||||||||
Cash and cash equivalents, end of year |
$ | 39,031 | $ | 35,273 | $ | 26,199 | ||||||
Supplemental cash flow information: |
||||||||||||
Cash paid for interest |
$ | 30 | $ | 405 | $ | 1,143 | ||||||
Cash paid for income taxes, net |
$ | 1,459 | $ | 1,102 | $ | 4,872 | ||||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||||||
Capital expenditures included in accrued expenses and other long-term
liabilities |
$ | 609 | ||||||||||
Details of business acquired in purchase transactions: |
||||||||||||
Fair value of assets acquired |
$ | 12,319 | ||||||||||
Liabilities assumed or incurred |
$ | 2,715 | ||||||||||
Noncontrolling interest |
$ | 3,888 | ||||||||||
Cash paid for acquisitions |
$ | 5,716 | ||||||||||
Cash acquired |
36 | |||||||||||
Net cash paid for acquisitions |
$ | 5,680 | ||||||||||
ALLIED HEALTHCARE INTERNATIONAL INC.
HISTORICAL REVENUES AND GROSS PROFIT
(In thousands, except foreign exchange rate)
(Unaudited)
HISTORICAL REVENUES AND GROSS PROFIT
(In thousands, except foreign exchange rate)
(Unaudited)
Revenues | ||||||||||||||||||||||||||||||||
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | |||||||||||||||||||||||||
Homecare |
£ | 39,255 | £ | 38,323 | £ | 35,860 | £ | 35,903 | £ | 35,763 | £ | 34,162 | £ | 30,858 | £ | 30,620 | ||||||||||||||||
Nursing Homes |
3,048 | 2,731 | 2,864 | 3,261 | 3,986 | 3,716 | 4,159 | 4,808 | ||||||||||||||||||||||||
Hospitals |
3,114 | 2,933 | 3,235 | 3,330 | 2,956 | 2,914 | 3,448 | 3,612 | ||||||||||||||||||||||||
Total |
£ | 45,417 | £ | 43,987 | £ | 41,959 | £ | 42,494 | £ | 42,705 | £ | 40,792 | £ | 38,465 | £ | 39,040 | ||||||||||||||||
Foreign Exchange rate |
1.55 | 1.49 | 1.56 | 1.63 | 1.64 | 1.55 | 1.44 | 1.58 | ||||||||||||||||||||||||
$ | 70,417 | $ | 65,748 | $ | 65,530 | $ | 69,384 | $ | 69,845 | $ | 63,103 | $ | 55,334 | $ | 61,528 | |||||||||||||||||
Gross Profit | ||||||||||||||||||||||||||||||||
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | |||||||||||||||||||||||||
Homecare |
£ | 12,188 | £ | 11,651 | £ | 11,083 | £ | 11,041 | £ | 10,951 | £ | 10,525 | £ | 9,753 | £ | 9,487 | ||||||||||||||||
Nursing Homes |
1,002 | 882 | 931 | 1,033 | 1,257 | 1,187 | 1,298 | 1,477 | ||||||||||||||||||||||||
Hospitals |
812 | 696 | 755 | 712 | 745 | 679 | 874 | 973 | ||||||||||||||||||||||||
Total |
£ | 14,002 | £ | 13,229 | £ | 12,769 | £ | 12,786 | £ | 12,953 | £ | 12,391 | £ | 11,925 | £ | 11,937 | ||||||||||||||||
Foreign Exchange rate |
1.55 | 1.49 | 1.56 | 1.63 | 1.64 | 1.55 | 1.44 | 1.58 | ||||||||||||||||||||||||
$ | 21,712 | $ | 19,768 | $ | 19,948 | $ | 20,877 | $ | 21,196 | $ | 19,173 | $ | 17,166 | $ | 18,813 | |||||||||||||||||
# # #