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EX-99.1 - EXHIBIT 99.1 - ALLIED HEALTHCARE INTERNATIONAL INCc16902exv99w1.htm
8-K - FORM 8-K - ALLIED HEALTHCARE INTERNATIONAL INCc16902e8vk.htm
Exhibit 99.2
(ALLIED LOGO)
Allied Healthcare International Inc. Reports
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 Company’s 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 Company’s 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  
 
                       

 

 


 

(ALLIED LOGO)
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. Allied’s 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


 

(ALLIED LOGO)
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. Allied’s 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


 

(ALLIED LOGO)
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, Allied’s 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. ScotHomecare’s 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


 

(ALLIED LOGO)
“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 Healthcare’s 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 Company’s 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 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.

 

5


 

(ALLIED LOGO)
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. government’s 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; 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, 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 Allied’s information systems; the effect of existing or future government regulation of the healthcare and social care 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; 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; 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.
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

 

6


 

(ALLIED LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    March 31,     March 31,     March 31,     March 31,  
    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 LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
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 LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
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 LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
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  
 
                                                                                   
# # #

 

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