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EX-99.1 - EXHIBIT 99.1 - ALLIED HEALTHCARE INTERNATIONAL INC | c16902exv99w1.htm |
8-K - FORM 8-K - ALLIED HEALTHCARE INTERNATIONAL INC | c16902e8vk.htm |
Exhibit 99.2
Allied Healthcare International Inc. Reports
Fiscal 2011 Second Quarter Results
Fiscal 2011 Second Quarter Results
NEW YORK May 10, 2011 Allied Healthcare International Inc. (NASDAQ: AHCI), a leading
homecare provider of health and social care in the United Kingdom and Ireland, today issued
financial results for its fiscal 2011 second quarter ended March 31, 2011.
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 its principal operations are denominated in pounds
sterling but reported in United States dollars, an analysis is included of the last six quarters
revenues, gross profit, SG&A and operating income in pounds sterling to enable investors to fully
understand the underlying trends over these periods without the effects of currency exchange rates.
(See the Historical Revenues, Gross Profit, SG&A and Operating Income table at the end of this
press release.)
Fiscal Second Quarter Results
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||
2011 | 2010 | Change | 2011 | % | 2010 | % | Change | |||||||||||||||||||||||||
(Amounts in thousands) | Revenue | Gross Profit | ||||||||||||||||||||||||||||||
Homecare |
$ | 60,205 | $ | 56,018 | 7.5 | % | $ | 19,003 | 31.6 | % | $ | 17,315 | 30.9 | % | 9.7 | % | ||||||||||||||||
Nursing Homes |
3,252 | 4,460 | -27.1 | % | 1,032 | 31.7 | % | 1,451 | 32.5 | % | -28.9 | % | ||||||||||||||||||||
Hospitals |
4,072 | 5,052 | -19.4 | % | 1,024 | 25.1 | % | 1,182 | 23.4 | % | -13.4 | % | ||||||||||||||||||||
Total, at constant exchange rates |
67,529 | 65,530 | 3.0 | % | 21,059 | 31.2 | % | 19,948 | 30.4 | % | 5.6 | % | ||||||||||||||||||||
Effect of foreign exchange |
1,695 | | 2.6 | % | 522 | | 2.6 | % | ||||||||||||||||||||||||
Total, as reported |
$ | 69,224 | $ | 65,530 | 5.6 | % | $ | 21,581 | $ | 19,948 | 8.2 | % | ||||||||||||||||||||
SG&A |
||||||||||||||||||||||||||||||||
SG&A, at constant exchange
rates & excluding US
Corporate Overhead Costs |
$ | 17,211 | $ | 15,285 | 12.6 | % | ||||||||||||||||||||||||||
SG&A US Corporate
Overhead Costs |
703 | 760 | -7.5 | % | ||||||||||||||||||||||||||||
SG&A Amortization,
at constant exchange rates |
271 | 301 | -10.0 | % | ||||||||||||||||||||||||||||
SG&A, at constant
exchange rates |
18,185 | 16,346 | 11.2 | % | ||||||||||||||||||||||||||||
Effect of foreign
exchange |
421 | | 2.6 | % | ||||||||||||||||||||||||||||
Total SG&A, as reported |
$ | 18,606 | $ | 16,346 | 13.8 | % | ||||||||||||||||||||||||||
Operating Income |
||||||||||||||||||||||||||||||||
Operating income, at
constant exchange rates &
excluding US Corporate
Overhead Costs & Amortization |
$ | 3,848 | $ | 4,663 | -17.5 | % | ||||||||||||||||||||||||||
Operating income US
Corporate Overhead Costs |
(703 | ) | (760 | ) | 7.5 | % | ||||||||||||||||||||||||||
Operating income
amortization, at constant
exchange rates |
(271 | ) | (301 | ) | 10.0 | % | ||||||||||||||||||||||||||
Operating income, at
constant exchange rates |
2,874 | 3,602 | -20.2 | % | ||||||||||||||||||||||||||||
Effect of foreign exchange |
101 | | 2.8 | % | ||||||||||||||||||||||||||||
Operating income,
as reported |
$ | 2,975 | $ | 3,602 | -17.4 | % | ||||||||||||||||||||||||||
Net Income Attributable to Allied | ||||||||||||||||
Basic | Basic | |||||||||||||||
and | and | |||||||||||||||
Diluted | Diluted | |||||||||||||||
EPS | EPS | |||||||||||||||
Net income attributable to Allied |
$ | 1,929 | $ | 0.04 | $ | 2,642 | $ | 0.06 | ||||||||
For the second quarter of fiscal 2011, total revenue increased 3.0%, to $67.5 million,
compared with $65.5 million reported during the same period in fiscal 2010. Allieds Homecare
revenue grew 7.5% to $60.2 million. Acquisitions contributed 9.9%, or $5.6 million, to Homecare
revenue. Nursing Homes revenue declined 27.1% to $3.2 million and Hospitals revenue declined 19.4%
to $4.1 million. After the favorable impact of currency
exchange of $1.7 million, revenue increased 5.6% year over year to the reported $69.2 million.
Total gross profit for the second fiscal quarter increased 5.6% to $21.1 million, from $19.9
million for the comparable quarter in fiscal 2010. Homecare gross profit grew 9.7% to $19.0
million. Acquisitions contributed $1.7 million, or 10.0%, to the Homecare gross profit. Nursing
Homes gross profit declined 28.9% to $1.1 million and Hospitals gross profit declined 13.4% to $1.0
million. Gross profit as a percentage of revenue was 31.2%, compared with 30.4% for the comparable
prior-year period. Foreign exchange increased gross profit by $0.5 million to the reported $21.6
million for the 2011 second fiscal quarter.
SG&A for the second fiscal quarter was $18.2 million (26.9% of revenues), an increase of 11.2%,
from $16.3 million (24.9% of revenues) reported last year. Acquisitions contributed 7.0%, or $1.1
million, to the 12.6% increase in SG&A, excluding US corporate overhead costs and amortization
costs. Foreign exchange increased costs by $0.4 million to the reported $18.6 million for the 2011
second fiscal quarter.
Operating income for the second quarter of fiscal 2011 decreased by 20.2% to $2.9 million from $3.6
million a year ago. Foreign exchange increased operating income by $0.1 million to the reported
$3.0 million for the 2011 second fiscal quarter.
Net income attributable to Allied for the second quarter of fiscal 2011 was $1.9 million, or $0.04
per diluted share, compared with $2.6 million, or $0.06 per diluted share, reported during the 2010
second fiscal quarter.
2
Fiscal Six Months Results
Six Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||
2011 | 2010 | Change | 2011 | % | 2010 | % | Change | |||||||||||||||||||||||||
(Amounts in thousands) | Revenue | Gross Profit | ||||||||||||||||||||||||||||||
Homecare |
$ | 123,468 | $ | 114,640 | 7.7 | % | $ | 38,752 | 31.4 | % | $ | 35,342 | 30.8 | % | 9.6 | % | ||||||||||||||||
Nursing Homes |
7,137 | 9,785 | -27.1 | % | 2,273 | 31.8 | % | 3,138 | 32.1 | % | -27.6 | % | ||||||||||||||||||||
Hospitals |
8,350 | 10,489 | -20.4 | % | 2,057 | 24.6 | % | 2,345 | 22.4 | % | -12.3 | % | ||||||||||||||||||||
Total, at constant exchange rates |
138,955 | 134,914 | 3.0 | % | 43,082 | 31.0 | % | 40,825 | 30.3 | % | 5.5 | % | ||||||||||||||||||||
Effect of foreign exchange |
(532 | ) | | -0.4 | % | (164 | ) | | -0.4 | % | ||||||||||||||||||||||
Total, as reported |
$ | 138,423 | $ | 134,914 | 2.6 | % | $ | 42,918 | $ | 40,825 | 5.1 | % | ||||||||||||||||||||
SG&A | ||||||||||||||||||||||||||||||||
SG&A, at constant exchange
rates & excluding US Corporate
Overhead Costs |
$ | 34,703 | $ | 31,378 | 10.6 | % | ||||||||||||||||||||||||||
SG&A US Corporate
Overhead Costs |
1,774 | 1,423 | 24.7 | % | ||||||||||||||||||||||||||||
SG&A Amortization, at
constant exchange rates |
593 | 625 | -5.1 | % | ||||||||||||||||||||||||||||
SG&A, at constant
exchange rates |
37,070 | 33,426 | 10.9 | % | ||||||||||||||||||||||||||||
Effect of foreign exchange |
(134 | ) | | -0.4 | % | |||||||||||||||||||||||||||
Total SG&A, as reported |
$ | 36,936 | $ | 33,426 | 10.5 | % | ||||||||||||||||||||||||||
Operating Income |
||||||||||||||||||||||||||||||||
Operating income, at
constant exchange rates &
excluding US Corporate
Overhead Costs & Amortization |
$ | 8,379 | $ | 9,447 | -11.3 | % | ||||||||||||||||||||||||||
Operating income
US Corporate Overhead Costs |
(1,774 | ) | (1,423 | ) | -24.7 | % | ||||||||||||||||||||||||||
Operating income
amortization, at constant
exchange rates |
(593 | ) | (625 | ) | 5.1 | % | ||||||||||||||||||||||||||
Operating income, at
constant exchange rates |
6,012 | 7,399 | -18.7 | % | ||||||||||||||||||||||||||||
Effect of foreign exchange |
(30 | ) | | -0.4 | % | |||||||||||||||||||||||||||
Operating income, as reported |
$ | 5,982 | $ | 7,399 | -19.1 | % | ||||||||||||||||||||||||||
Net Income Attributable to Allied | ||||||||||||||||
Basic | Basic | |||||||||||||||
and | and | |||||||||||||||
Diluted | Diluted | |||||||||||||||
EPS | EPS | |||||||||||||||
Net income attributable to Allied |
$ | 3,767 | $ | 0.09 | $ | 5,496 | $ | 0.12 | ||||||||
For the six months of fiscal 2011, total revenue increased 3.0%, to $138.9 million, compared
with $134.9 million reported during the same period in fiscal 2010. Allieds Homecare revenue grew
7.7% to $123.5 million. Acquisitions contributed 8.9%, or $10.2 million, to Homecare revenue.
Nursing Homes revenue declined 27.1% to $7.1 million and Hospitals revenue declined 20.4% to $8.3
million. After the unfavorable impact of currency exchange of $0.5 million, revenue increased 2.6%
year over year to the reported $138.4 million.
Total gross profit for the six months of fiscal 2011 increased 5.5% to $43.1 million, from $40.8
million for the comparable period in fiscal 2010. Homecare gross profit grew 9.6% to $38.8 million.
Acquisitions contributed $3.2 million, or 9.0%, to the Homecare gross profit. Nursing Homes gross
profit declined 27.6% to $2.3 million and Hospitals gross profit declined 12.3% to $2.0 million.
Gross profit as a percentage of revenue was 31.0%, compared with 30.3% for the comparable
prior-year period. Foreign exchange decreased gross profit by $0.2 million to the reported $42.9
million for the 2011 six month period.
3
SG&A for the six months of fiscal 2011 was $37.0 million (26.7% of revenues), an increase of 10.9%,
from $33.4 million (24.8% of revenues) reported last year. Acquisitions contributed 7.0%, or $2.2
million, to the 10.6% increase in SG&A, excluding US corporate overhead costs and amortization
costs. Foreign exchange decreased costs by $0.1 million to the reported $36.9 million for the 2011
six month period.
Operating income for the six months of fiscal 2011 decreased by 18.7% to $6.0 million from $7.4
million a year ago.
Net income attributable to Allied for the six months of fiscal 2011 was $3.8 million, or $0.09 per
diluted share, compared with $5.5 million, or $0.12 per diluted share, reported during the fiscal
2010 six month period.
We ended the quarter with a very strong balance sheet. At March 31, 2011 and September 30, 2010,
Allieds cash balance was $41.5 million (£25.9 million) and $39.0 million (£24.7 million),
respectively, which represents an increase in the cash balance of $2.5 million (£1.2 million). The
increase is primarily due to the benefit of accelerated cash collections, mainly from the local
governmental bodies, as a result of the end of their fiscal period. Offsetting this increase was
the $3.6 million cash payments ($1.2 million initial consideration and $2.4 million repayment of
liabilities assumed on acquisition) related to our ScotHomecare acquisition.
For the fiscal six months ended March 31, 2011, depreciation and amortization was $2.4 million
(£1.5 million), and capital expenditures were $2.7 million (£1.7 million). Days Sales Outstanding
was 26 days at March 31, 2011 (41 days including unbilled accounts receivables) and 26 days at
September 30, 2010 (43 days including unbilled account receivables).
Management Discussion
Sandy Young, Chief Executive Officer of Allied, commented, Our second quarter of fiscal 2011
results show a revenue increase of 5.6% and gross profit increase of 8.2%; although, at constant
exchange rates this is 3.0% revenue growth and 5.6% gross profit growth. Gross profits at 31.2%
compare favorably with the 30.4% reported last year. Without acquisitions, our Homecare revenue
declined 2.4% due to the U.K. government budget measures. We continue to look for new
opportunities that arise from the Comprehensive Spending Review, which we believe, over time, will
benefit homecare revenues. Our Nursing Home and Hospitals revenue also showed reductions.
SG&A, at constant exchange rates, grew by 11.2%. The main reason for the increase was the
additional overhead costs of $1.1 million, or 7.0%, from our Irish and Scottish acquisitions which
we did not have in the comparable prior year period.
SG&A, at constant exchange rate, has remained relatively flat over the last three quarters.
However, there are more reductions planned and this remains a focus for management. This is quite
separate from the reduction in overheads of $2.4 million (at current exchange rate) from our
Business Improvement Projects which we anticipate delivering on by the end of 2012.
Over the last few quarters we highlighted revenue tensions from the budget measures being taken by
the U.K. government. During the second fiscal quarter of 2011 our hours increased from a lower
point in December and have been steady during the last eight weeks. There has been no noticeable
change in April as we enter the new U.K. government fiscal year. We have also had 11 small
contract wins in the quarter plus the Cardiff and Stafford wins previously reported.
During the second quarter we completed the acquisition of Health and Lifecare Options Limited,
which trades under the ScotHomecare name. ScotHomecare is a flexible domiciliary homecare business
with nine branches in Scotland and one branch in Leicester, England. ScotHomecares services
include adult health care, child nursing care, palliative
care nursing and elderly care services. Our acquisition in Scotland and our Ireland acquisition
continue to perform well and according to our expectations.
4
Additionally, during the first week of May, we completed the acquisition of BiJu Limited, a
recognized supplier of diverse homecare services to clients throughout Lancashire. The transaction
expands our geographical footprint in the North West of England and provides Allied with additional
growth opportunities across Lancashire.
Based on our accomplishments to date, we believe Allied is well positioned as the leading provider
of homecare services in the U.K., and we continue to explore new service lines, which may improve
market share as conditions improve, concluded Mr. Young.
Dr. Jeffrey Peris, Chairman of Allied, commented, The Board believes that Allied is responding to
challenges in the market place and has the right focus, plans and sufficient financial resources to
further execute its business strategy and build value for its shareholders.
Conference Call Information: May 10, 2011 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 371877. 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, US corporate overhead costs and amortization 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.
5
ABOUT ALLIED HEALTHCARE INTERNATIONAL INC.
Allied Healthcare International Inc. is a leading homecare provider of health and social care in
the United Kingdom and Ireland. Allied operates a community-based network of approximately 120
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. 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; the
introduction by the U.K. government of individualized budgets and direct payments for service
users, which could lead our hospital, healthcare facility and other customers to bypass our
services and which might decrease our revenues and margins; 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) 1785 810600
Sandy Young
Chief Executive Officer
Paul Weston
Chief Financial Officer
+44 (0) 1785 810600
Or
ICR, LLC
Sherry Bertner
Managing Director
+1 646 277 1247
sherry.bertner@icrinc.com
Sherry Bertner
Managing Director
+1 646 277 1247
sherry.bertner@icrinc.com
6
ALLIED HEALTHCARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
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, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Net patient services |
$ | 69,224 | $ | 65,530 | $ | 138,423 | $ | 134,914 | ||||||||
Cost of revenues: |
||||||||||||||||
Patient services |
47,643 | 45,582 | 95,505 | 94,089 | ||||||||||||
Gross profit |
21,581 | 19,948 | 42,918 | 40,825 | ||||||||||||
Selling, general and administrative expenses |
18,606 | 16,346 | 36,936 | 33,426 | ||||||||||||
Operating income |
2,975 | 3,602 | 5,982 | 7,399 | ||||||||||||
Interest income |
86 | 86 | 176 | 191 | ||||||||||||
Interest expense |
(22 | ) | | (43 | ) | | ||||||||||
Foreign exchange loss |
(13 | ) | (195 | ) | (18 | ) | (213 | ) | ||||||||
Income before income taxes |
3,026 | 3,493 | 6,097 | 7,377 | ||||||||||||
Provision for income taxes |
958 | 851 | 2,064 | 1,881 | ||||||||||||
Net income |
2,068 | 2,642 | 4,033 | 5,496 | ||||||||||||
Less: Net income attributable to noncontrolling interest |
(139 | ) | | (266 | ) | | ||||||||||
Net income attributable to Allied Healthcare International Inc. |
$ | 1,929 | $ | 2,642 | $ | 3,767 | $ | 5,496 | ||||||||
Basic net income per share attributable to Allied Healthcare International Inc. common shareholders |
$ | 0.04 | $ | 0.06 | $ | 0.09 | $ | 0.12 | ||||||||
Diluted net income per share attributable to Allied Healthcare International Inc. common shareholders |
$ | 0.04 | $ | 0.06 | $ | 0.09 | $ | 0.12 | ||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||
Basic |
43,571 | 45,136 | 43,571 | 45,131 | ||||||||||||
Diluted |
43,766 | 45,405 | 43,846 | 45,411 | ||||||||||||
7
ALLIED HEALTHCARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, | ||||||||
2011 | September 30, | |||||||
(Unaudited) | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 41,534 | $ | 39,031 | ||||
Accounts receivable, less allowance for doubtful accounts of $880 and $732, respectively |
19,973 | 20,092 | ||||||
Unbilled accounts receivable |
11,539 | 13,393 | ||||||
Deferred income taxes |
505 | 552 | ||||||
Prepaid expenses and other assets |
2,197 | 1,943 | ||||||
Total current assets |
75,748 | 75,011 | ||||||
Property and equipment, net |
9,613 | 8,924 | ||||||
Goodwill |
108,008 | 102,945 | ||||||
Other intangible assets, net |
2,955 | 3,501 | ||||||
Total assets |
$ | 196,324 | $ | 190,381 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 2,179 | $ | 1,581 | ||||
Current maturities of debt and capital leases |
735 | 614 | ||||||
Accrued expenses, inclusive of payroll and related expenses |
25,359 | 25,897 | ||||||
Taxes payable |
2,362 | 2,310 | ||||||
Total current liabilities |
30,635 | 30,402 | ||||||
Long-term debt and capital leases, net of current maturities |
226 | 389 | ||||||
Deferred income taxes |
1,442 | 1,534 | ||||||
Other long-term liabilities |
| 308 | ||||||
Total liabilities |
32,303 | 32,633 | ||||||
Commitments and contingencies |
||||||||
Noncontrolling interest |
4,688 | 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 45,721 shares, respectively |
457 | 457 | ||||||
Additional paid-in capital |
242,697 | 242,478 | ||||||
Accumulated other comprehensive loss |
(13,310 | ) | (15,267 | ) | ||||
Accumulated deficit |
(64,391 | ) | (68,158 | ) | ||||
165,453 | 159,510 | |||||||
Less cost of treasury stock (2,150 shares) |
(6,120 | ) | (6,120 | ) | ||||
Total shareholders equity |
159,333 | 153,390 | ||||||
Total liabilities and shareholders equity |
$ | 196,324 | $ | 190,381 | ||||
8
ALLIED HEALTHCARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended | ||||||||
March 31, | March 31, | |||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 4,033 | $ | 5,496 | ||||
Adjustments to reconcile net income to net
cash provided by operating activities: |
||||||||
Depreciation and amortization |
1,854 | 1,467 | ||||||
Amortization of intangible assets |
591 | 625 | ||||||
Foreign exchange loss |
5 | 187 | ||||||
Increase (decrease) in provision for allowance for doubtful accounts |
162 | (39 | ) | |||||
Loss on sale of fixed assets |
7 | 1 | ||||||
Stock based compensation |
219 | 213 | ||||||
Deferred income taxes |
55 | 25 | ||||||
Changes in operating assets and liabilities, excluding
the effect of businesses acquired and sold: |
||||||||
Decrease in accounts receivable |
1,214 | 1,376 | ||||||
Decrease in prepaid expenses and other assets |
1,885 | 47 | ||||||
(Decrease) increase in accounts payable and other liabilities |
(1,825 | ) | 980 | |||||
Net cash provided by operating activities |
8,200 | 10,378 | ||||||
Cash flows from investing activities: |
||||||||
Capital expenditures |
(2,709 | ) | (2,066 | ) | ||||
Payments for acquisitions net of cash acquired |
(1,198 | ) | | |||||
Proceeds from sale of property and equipment |
8 | 56 | ||||||
Net cash used in investing activities |
(3,899 | ) | (2,010 | ) | ||||
Cash flows from financing activities: |
||||||||
Repayments of debt and capital lease obligations |
(2,569 | ) | | |||||
Borrowings under invoice discounting facility, net |
134 | | ||||||
Stock options exercised |
| 288 | ||||||
Net cash (used in) provided by financing activities |
(2,435 | ) | 288 | |||||
Effect of exchange rate on cash |
637 | (2,358 | ) | |||||
Increase in cash |
2,503 | 6,298 | ||||||
Cash and cash equivalents, beginning of year |
39,031 | 35,273 | ||||||
Cash and cash equivalents, end of year |
$ | 41,534 | $ | 41,571 | ||||
Supplemental cash flow information: |
||||||||
Cash paid for interest |
$ | 44 | $ | | ||||
Cash paid for income taxes, net |
$ | 2,327 | $ | 217 | ||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||
Capital expenditures included in accrued expenses |
$ | 313 | $ | 623 | ||||
Details of business acquired in purchase transactions: |
||||||||
Fair value of assets acquired |
$ | 4,776 | ||||||
Liabilities assumed or incurred |
$ | 3,186 | ||||||
Cash paid for acquisitions |
$ | 1,199 | ||||||
Cash acquired |
1 | |||||||
Net cash paid for acquisitions |
$ | 1,198 | ||||||
Deferred acquisition payment |
$ | 391 | ||||||
9
ALLIED HEALTHCARE INTERNATIONAL INC.
HISTORICAL REVENUES, GROSS PROFIT, SG&A AND OPERATING INCOME
(In thousands, except foreign exchange rate)
(Unaudited)
HISTORICAL REVENUES, GROSS PROFIT, SG&A AND OPERATING INCOME
(In thousands, except foreign exchange rate)
(Unaudited)
Revenue | Gross Profit | |||||||||||||||||||||||||||||||||||||||||||||||
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||||||||||||
2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | |||||||||||||||||||||||||||||||||||||
Homecare |
£ | 38,543 | £ | 38,745 | £ | 39,255 | £ | 38,323 | £ | 35,860 | £ | 35,903 | £ | 12,163 | £ | 12,095 | £ | 12,188 | £ | 11,651 | £ | 11,083 | £ | 11,041 | ||||||||||||||||||||||||
Nursing Homes |
2,088 | 2,379 | 3,048 | 2,731 | 2,864 | 3,261 | 663 | 760 | 1,002 | 882 | 931 | 1,033 | ||||||||||||||||||||||||||||||||||||
Hospitals |
2,607 | 2,620 | 3,114 | 2,933 | 3,235 | 3,330 | 655 | 633 | 812 | 696 | 755 | 712 | ||||||||||||||||||||||||||||||||||||
Total |
£ | 43,238 | £ | 43,744 | £ | 45,417 | £ | 43,987 | £ | 41,959 | £ | 42,494 | £ | 13,481 | £ | 13,488 | £ | 14,002 | £ | 13,229 | £ | 12,769 | £ | 12,786 | ||||||||||||||||||||||||
Foreign Exchange rate |
1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | 1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | ||||||||||||||||||||||||||||||||||||
$ | 69,224 | $ | 69,199 | $ | 70,417 | $ | 65,748 | $ | 65,530 | $ | 69,384 | $ | 21,581 | $ | 21,337 | $ | 21,712 | $ | 19,768 | $ | 19,948 | $ | 20,877 | |||||||||||||||||||||||||
SG&A Foreign
Operations Organic |
£ | 10,146 | £ | 10,101 | £ | 10,126 | £ | 9,962 | £ | 9,786 | £ | 9,856 | ||||||||||||||||||||||||||||||||||||
SG&A Foreign
Operations
Acquisitions |
773 | 612 | 586 | 265 | | | ||||||||||||||||||||||||||||||||||||||||||
SG&A Foreign
Operations
Acquisition Costs |
92 | | 94 | 361 | | | ||||||||||||||||||||||||||||||||||||||||||
SG&A Foreign
Operations Total |
11,011 | 10,713 | 10,806 | 10,588 | 9,786 | 9,856 | ||||||||||||||||||||||||||||||||||||||||||
SG&A US Corporate |
438 | 677 | 719 | 660 | 485 | 406 | ||||||||||||||||||||||||||||||||||||||||||
SG&A Amortization |
174 | 197 | 240 | 218 | 193 | 199 | ||||||||||||||||||||||||||||||||||||||||||
Total |
£ | 11,623 | £ | 11,587 | £ | 11,765 | £ | 11,466 | £ | 10,464 | £ | 10,461 | ||||||||||||||||||||||||||||||||||||
Foreign Exchange rate |
1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | ||||||||||||||||||||||||||||||||||||||||||
$ | 18,606 | $ | 18,330 | $ | 18,244 | $ | 17,176 | $ | 16,346 | $ | 17,080 | |||||||||||||||||||||||||||||||||||||
Operating Income
Foreign Operations |
£ | 2,470 | £ | 2,775 | £ | 3,196 | £ | 2,641 | £ | 2,983 | £ | 2,930 | ||||||||||||||||||||||||||||||||||||
Operating Loss
US Corporate |
(438 | ) | (677 | ) | (719 | ) | (660 | ) | (485 | ) | (406 | ) | ||||||||||||||||||||||||||||||||||||
Operating Loss
Amortization |
(174 | ) | (197 | ) | (240 | ) | (218 | ) | (193 | ) | (199 | ) | ||||||||||||||||||||||||||||||||||||
Total |
£ | 1,858 | £ | 1,901 | £ | 2,237 | £ | 1,763 | £ | 2,305 | £ | 2,325 | ||||||||||||||||||||||||||||||||||||
Foreign Exchange
rate |
1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | ||||||||||||||||||||||||||||||||||||||||||
$ | 2,975 | $ | 3,007 | $ | 3,468 | $ | 2,592 | $ | 3,602 | $ | 3,797 | |||||||||||||||||||||||||||||||||||||
# # #
10