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8-K - FORM 8-K - ALLIED HEALTHCARE INTERNATIONAL INC | c20949e8vk.htm |
Exhibit 99.1
Allied Healthcare International Inc. Reports
Fiscal 2011 Third Quarter Results
Fiscal 2011 Third Quarter Results
NEW YORK August 4, 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 third quarter ended June 30, 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 seven 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 Third Quarter Results
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||
2011 | 2010 | Change | 2011 | % | 2010 | % | Change | |||||||||||||||||||||||||
(Amounts in thousands) | Revenue | Gross Profit | ||||||||||||||||||||||||||||||
Homecare |
$ | 62,188 | $ | 57,346 | 8.4 | % | $ | 19,133 | 30.8 | % | $ | 17,423 | 30.4 | % | 9.8 | % | ||||||||||||||||
Nursing Homes |
2,552 | 4,051 | -37.0 | % | 819 | 32.1 | % | 1,309 | 32.3 | % | -37.4 | % | ||||||||||||||||||||
Hospitals |
3,797 | 4,351 | -12.7 | % | 1,004 | 26.4 | % | 1,036 | 23.8 | % | -3.1 | % | ||||||||||||||||||||
Total, at constant exchange rates |
68,537 | 65,748 | 4.2 | % | 20,956 | 30.6 | % | 19,768 | 30.1 | % | 6.1 | % | ||||||||||||||||||||
Effect of foreign exchange |
6,175 | | 9.4 | % | 1,907 | | 9.6 | % | ||||||||||||||||||||||||
Total, as reported |
$ | 74,712 | $ | 65,748 | 13.6 | % | $ | 22,863 | $ | 19,768 | 15.7 | % | ||||||||||||||||||||
SG&A | ||||||||||||
SG&A, at constant exchange rates & excluding
US Corporate Overhead Costs & Amortization |
$ | 17,005 | $ | 15,849 | 7.3 | % | ||||||
SG&A US Corporate Overhead Costs |
701 | 1,000 | -29.9 | % | ||||||||
SG&A Amortization, at constant exchange rates |
164 | 327 | -49.8 | % | ||||||||
SG&A, at constant exchange rates |
17,870 | 17,176 | 4.0 | % | ||||||||
Effect of foreign exchange |
1,562 | | 9.1 | % | ||||||||
Total SG&A, as reported |
$ | 19,432 | $ | 17,176 | 13.1 | % | ||||||
Operating Income | ||||||||||||
Operating income, at constant exchange rates & excluding
US Corporate Overhead Costs & Amortization |
$ | 3,951 | $ | 3,919 | 0.8 | % | ||||||
Operating income US Corporate Overhead Costs |
(701 | ) | (1,000 | ) | 29.9 | % | ||||||
Operating income amortization, at constant exchange rates |
(164 | ) | (327 | ) | 49.8 | % | ||||||
Operating income, at constant exchange rates |
3,086 | 2,592 | 19.1 | % | ||||||||
Effect of foreign exchange |
345 | | 13.3 | % | ||||||||
Operating income, as reported |
$ | 3,431 | $ | 2,592 | 32.4 | % | ||||||
Net Income Attributable to Allied | ||||||||||||||||
Basic and | Basic and | |||||||||||||||
Diluted | Diluted | |||||||||||||||
EPS | EPS | |||||||||||||||
Net income attributable to Allied |
$ | 2,195 | $ | 0.05 | $ | 1,660 | $ | 0.04 | ||||||||
1
For the third quarter of fiscal 2011, total revenue increased 4.2% to $68.5 million, compared
with $65.7 million reported during the same period in fiscal 2010. Allieds Homecare revenue grew
8.4% to $62.2 million. Acquisitions contributed 9.5%, or $5.4 million, to the Homecare revenue
growth. Nursing Homes revenue declined 37.0% to $2.5 million and Hospitals revenue declined 12.7%
to $3.8 million. After the favorable impact of currency exchange of $6.2 million, total revenue
increased 13.6% year over year to the reported $74.7 million.
Total gross profit for the third fiscal quarter increased 6.1% to $20.9 million, from $19.8 million
for the comparable quarter in fiscal 2010. Homecare gross profit grew 9.8% to $19.1 million.
Acquisitions contributed $1.7 million, or 9.8%, to the growth in Homecare gross profit. Nursing
Homes gross profit declined 37.4% to $0.8 million and Hospitals gross profit declined 3.1% to $1.0
million. Gross profit as a percentage of revenue was 30.6%, compared with 30.1% for the comparable
prior-year period. Foreign exchange increased gross profit by $1.9 million to the reported $22.8
million for the 2011 third fiscal quarter.
SG&A for the third fiscal quarter was $17.9 million (26.1% of revenues), an increase of 4.0%, from
$17.2 million (26.1% of revenues) reported last year. SG&A, excluding US corporate overhead costs
and amortization costs, increased 7.3% of which acquisitions contributed 7.1%, or $1.1 million.
Foreign exchange increased costs by $1.5 million to the reported $19.4 million for the 2011 third
fiscal quarter.
Operating income for the third quarter of fiscal 2011 increased by 19.1% to $3.1 million from $2.6
million a year ago. Foreign exchange increased operating income by $0.3 million to the reported
$3.4 million for the 2011 third fiscal quarter.
Net income attributable to Allied for the third quarter of fiscal 2011 was $2.2 million, or $0.05
per diluted share, compared with $1.6 million, or $0.04 per diluted share, reported during the 2010
third fiscal quarter.
2
Fiscal Nine Months Results
Nine Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||
2011 | 2010 | Change | 2011 | % | 2010 | % | Change | |||||||||||||||||||||||||
(Amounts in thousands) | Revenue | Gross Profit | ||||||||||||||||||||||||||||||
Homecare |
$ | 185,656 | $ | 171,986 | 7.9 | % | $ | 57,885 | 31.2 | % | $ | 52,765 | 30.7 | % | 9.7 | % | ||||||||||||||||
Nursing Homes |
9,689 | 13,836 | -30.0 | % | 3,092 | 31.9 | % | 4,447 | 32.1 | % | -30.5 | % | ||||||||||||||||||||
Hospitals |
12,147 | 14,840 | -18.1 | % | 3,061 | 25.2 | % | 3,381 | 22.8 | % | -9.5 | % | ||||||||||||||||||||
Total, at constant exchange rates |
207,492 | 200,662 | 3.4 | % | 64,038 | 30.9 | % | 60,593 | 30.2 | % | 5.7 | % | ||||||||||||||||||||
Effect of foreign exchange |
5,643 | | 2.8 | % | 1,743 | | 2.9 | % | ||||||||||||||||||||||||
Total, as reported |
$ | 213,135 | $ | 200,662 | 6.2 | % | $ | 65,781 | $ | 60,593 | 8.6 | % | ||||||||||||||||||||
SG&A | ||||||||||||
SG&A, at constant exchange rates & excluding
US Corporate Overhead Costs & Amortization |
$ | 51,708 | $ | 47,227 | 9.5 | % | ||||||
SG&A US Corporate Overhead Costs |
2,475 | 2,423 | 2.1 | % | ||||||||
SG&A Amortization, at constant exchange rates |
757 | 952 | -20.5 | % | ||||||||
SG&A, at constant exchange rates |
54,940 | 50,602 | 8.6 | % | ||||||||
Effect of foreign exchange |
1,428 | | 2.8 | % | ||||||||
Total SG&A, as reported |
$ | 56,368 | $ | 50,602 | 11.4 | % | ||||||
Operating Income | ||||||||||||
Operating income, at constant exchange rates & excluding
US Corporate Overhead Costs & Amortization |
$ | 12,330 | $ | 13,366 | -7.8 | % | ||||||
Operating income US Corporate Overhead Costs |
(2,475 | ) | (2,423 | ) | -2.1 | % | ||||||
Operating income amortization, at constant exchange rates |
(757 | ) | (952 | ) | 20.5 | % | ||||||
Operating income, at constant exchange rates |
9,098 | 9,991 | -8.9 | % | ||||||||
Effect of foreign exchange |
315 | | 3.1 | % | ||||||||
Operating income, as reported |
$ | 9,413 | $ | 9,991 | -5.8 | % | ||||||
Net Income Attributable to Allied | ||||||||||||||||
Basic | Basic | |||||||||||||||
and | and | |||||||||||||||
Diluted | Diluted | |||||||||||||||
EPS | EPS | |||||||||||||||
Net income attributable to Allied |
$ | 5,962 | $ | 0.14 | $ | 7,156 | $ | 0.16 | ||||||||
For the nine months of fiscal 2011, total revenue increased 3.4% to $207.5 million, compared
with $200.7 million reported during the same period in fiscal 2010. Allieds Homecare revenue grew
7.9% to $185.7 million. Acquisitions contributed 9.1%, or $15.7 million, to the Homecare revenue
growth. Nursing Homes revenue declined 30.0% to $9.7 million and Hospitals revenue declined 18.1%
to $12.1 million. After the favorable impact of currency exchange of $5.6 million, total revenue
increased 6.2% year over year to the reported $213.1 million.
Total gross profit for the nine months of fiscal 2011 increased 5.7% to $64.1 million, from $60.6
million for the comparable period in fiscal 2010. Homecare gross profit grew 9.7% to $57.9 million.
Acquisitions contributed $4.9 million, or 9.3%, to the growth in Homecare gross profit. Nursing
Homes gross profit declined 30.5% to $3.1 million and Hospitals gross profit declined 9.5% to $3.1
million. Gross profit as a percentage of revenue was 30.9%, compared with 30.2% for the comparable
prior-year period. Foreign exchange increased gross profit by $1.7 million to the reported $65.8
million for the 2011 nine month period.
3
SG&A for the nine months of fiscal 2011 was $54.9 million (26.5% of revenues), an increase of 8.6%,
from $50.6 million (25.2% of revenues) reported last year. SG&A, excluding US corporate overhead
costs and amortization costs, increased 9.5% of which acquisitions contributed 7.1%, or $3.3
million. Foreign exchange increased costs by $1.4 million to the reported $56.3 million for the
2011 nine month period.
Operating income for the nine months of fiscal 2011 decreased by 8.9% to $9.1 million from $10.0
million a year ago. Foreign exchange increased operating income by $0.3 million to the reported
$9.4 million for the 2011 nine month period.
Net income attributable to Allied for the nine months of fiscal 2011 was $5.9 million, or $0.14 per
diluted share, compared with $7.1 million, or $0.16 per diluted share, reported during the fiscal
2010 nine month period.
The Company ended the quarter with a very strong balance sheet. At June 30, 2011 and September 30,
2010, Allieds cash balance was $40.1 million (£25.0 million) and $39.0 million (£24.7 million),
respectively, which represents an increase in the cash balance of $1.1 million (£0.3 million).
For the fiscal nine months ended June 30, 2011, depreciation and amortization was $3.7 million
(£2.3 million), and capital expenditures were $3.2 million (£2.0 million). Days Sales Outstanding
was 27 days at June 30, 2011 (42 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 third quarter fiscal 2011 revenue
increased 4.2% year over year at constant exchange rates, and we have seen a small increase in
organic Homecare revenue from the previous quarter. Our Homecare revenue grew by 8.4%, with
acquisitions contributing 9.5% to our top line, while organic revenue declined 1.1%. This is a
very favorable outcome, given figures quoted within the UK which suggest Local Authority reductions
in spending of between 5% and 8%.
Our gross profit increase of 6.1% year over year at constant exchange rates and our gross margin
of 30.6% are very consistent with prior periods. While acquisitions contributed all of the growth,
there was no organic decline in Homecare gross profit. SG&A, at constant exchange rates, grew by
4.0%, even after the additional overhead spend of $1.1 million related to our recent acquisitions.
During the third quarter we have had eight small contract wins and much more significant wins in
Hampshire and Oxford. In Hampshire, an area in South West England, we have won a place on a
framework contract in the twelve areas we tendered for. The hours for this are not guaranteed but
could certainly generate opportunities of up to 5,000 hours of additional care per week. In Oxford,
the County Council has decided to outsource more of their service provision, and we have won hours
in seven different areas in Oxfordshire that could generate up to 3,200 additional hours per week.
4
In June the contract we held with Manchester Local Authority reached its normal termination date,
and we decided not to renew. This has been a loss making contract, which was first entered into in
November 2007, and during fiscal year 2011 it generated annualized revenues of £1.0 million. Our
staff has transferred to the new provider, and we were fortunate to win a new contract in Tameside,
part of Manchester, which we expect to make a positive contribution to our future growth.
During the first week of May, we completed the acquisition of BiJu Limited, a 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.
As reported last week, we have agreed to pay a deferred consideration to Sue Ryder, a leading
charity, who has decided to transfer its social care business to us. The business generated
revenue of over £5 million in the last 12 months.
We are still seeing some tensions with other providers in the UK given the governments spending
restrictions, but we consider that our position as a leading health and social care provider is
being maintained.
Dr. Jeffrey Peris, Chairman of Allied, commented, Considering the current economic environment and
the UK governments proposed legislation changes, the Board is pleased with managements efforts to
mitigate these challenges.
Conference Call Information: August 4, 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 376287. 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
Or
ICR, LLC
Sherry Bertner
Managing Director
+1 646 277 1247
sherry.bertner@icrinc.com
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 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 | Nine Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Net patient services |
$ | 74,712 | $ | 65,748 | $ | 213,135 | $ | 200,662 | ||||||||
Cost of revenues: |
||||||||||||||||
Patient services |
51,849 | 45,980 | 147,354 | 140,069 | ||||||||||||
Gross profit |
22,863 | 19,768 | 65,781 | 60,593 | ||||||||||||
Selling, general and administrative expenses |
19,432 | 17,176 | 56,368 | 50,602 | ||||||||||||
Operating income |
3,431 | 2,592 | 9,413 | 9,991 | ||||||||||||
Interest income |
86 | 84 | 262 | 275 | ||||||||||||
Interest expense |
(21 | ) | (10 | ) | (64 | ) | (10 | ) | ||||||||
Foreign exchange loss |
(24 | ) | (46 | ) | (42 | ) | (259 | ) | ||||||||
Income before income taxes |
3,472 | 2,620 | 9,569 | 9,997 | ||||||||||||
Provision for income taxes |
1,056 | 903 | 3,120 | 2,784 | ||||||||||||
Net income |
2,416 | 1,717 | 6,449 | 7,213 | ||||||||||||
Less: Net
income attributable to noncontrolling interest |
(221 | ) | (57 | ) | (487 | ) | (57 | ) | ||||||||
Net income
attributable to Allied Healthcare International Inc. |
$ | 2,195 | $ | 1,660 | $ | 5,962 | $ | 7,156 | ||||||||
Basic net income per share attributable to
Allied Healthcare
International Inc. common shareholders |
$ | 0.05 | $ | 0.04 | $ | 0.14 | $ | 0.16 | ||||||||
Diluted net income per share attributable to Allied Healthcare
International Inc. common shareholders |
$ | 0.05 | $ | 0.04 | $ | 0.14 | $ | 0.16 | ||||||||
Weighted average number of common shares
outstanding: |
||||||||||||||||
Basic |
43,571 | 45,045 | 43,571 | 45,102 | ||||||||||||
Diluted |
43,837 | 45,269 | 43,843 | 45,363 | ||||||||||||
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)
June 30, | September 30, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 40,090 | $ | 39,031 | ||||
Accounts receivable, less allowance for doubtful
accounts of $870 and $732, respectively |
22,387 | 20,092 | ||||||
Unbilled accounts receivable |
12,575 | 13,393 | ||||||
Deferred income taxes |
509 | 552 | ||||||
Prepaid expenses and other assets |
2,185 | 1,943 | ||||||
Total current assets |
77,746 | 75,011 | ||||||
Property and equipment, net |
9,042 | 8,924 | ||||||
Goodwill |
109,907 | 102,945 | ||||||
Other intangible assets, net |
2,771 | 3,501 | ||||||
Total assets |
$ | 199,466 | $ | 190,381 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 1,491 | $ | 1,581 | ||||
Current maturities of debt and capital leases |
682 | 614 | ||||||
Accrued expenses, inclusive of payroll and related expenses |
26,698 | 25,897 | ||||||
Taxes payable |
2,558 | 2,310 | ||||||
Total current liabilities |
31,429 | 30,402 | ||||||
Long-term debt and capital leases, net of current maturities |
172 | 389 | ||||||
Deferred income taxes |
1,410 | 1,534 | ||||||
Other long-term liabilities |
| 308 | ||||||
Total liabilities |
33,011 | 32,633 | ||||||
Commitments and contingencies (Note 10) |
||||||||
Noncontrolling interest (Note 5) |
4,902 | 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 |
242,879 | 242,478 | ||||||
Accumulated other comprehensive loss |
(13,467 | ) | (15,267 | ) | ||||
Accumulated deficit |
(62,196 | ) | (68,158 | ) | ||||
167,673 | 159,510 | |||||||
Less cost of treasury stock (2,150 shares) |
(6,120 | ) | (6,120 | ) | ||||
Total shareholders equity |
161,553 | 153,390 | ||||||
Total liabilities and shareholders equity |
$ | 199,466 | $ | 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)
Nine Months Ended | ||||||||
June 30, | June 30, | |||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 6,449 | $ | 7,213 | ||||
Adjustments to reconcile net income to net
cash provided by operating activities: |
||||||||
Depreciation and amortization |
2,875 | 2,242 | ||||||
Amortization of intangible assets |
778 | 952 | ||||||
Foreign exchange gain |
(6 | ) | (2 | ) | ||||
Increase
(decrease) in provision for allowance for doubtful accounts |
184 | (24 | ) | |||||
Loss (gain) on sale of fixed assets |
19 | (2 | ) | |||||
Stock based compensation |
401 | 471 | ||||||
Deferred income taxes |
49 | 102 | ||||||
Changes in operating assets and liabilities, excluding
the effect of businesses acquired and sold: |
||||||||
Increase in accounts receivable |
(863 | ) | (335 | ) | ||||
Decrease in prepaid expenses and other assets |
909 | 671 | ||||||
(Decrease) increase in accounts payable and other liabilities |
(1,936 | ) | 1,693 | |||||
Net cash provided by operating activities |
8,859 | 12,981 | ||||||
Cash flows from investing activities: |
||||||||
Capital expenditures |
(3,172 | ) | (2,428 | ) | ||||
Acquisition of controlling interest, net of cash acquired |
(60 | ) | (5,812 | ) | ||||
Payments for acquisitions net of cash acquired |
(2,626 | ) | | |||||
Proceeds from sale of property and equipment |
8 | 62 | ||||||
Net cash used in investing activities |
(5,850 | ) | (8,178 | ) | ||||
Cash flows from financing activities: |
||||||||
Repayments of debt and capital lease obligations |
(2,661 | ) | (121 | ) | ||||
Borrowings under invoice discounting facility, net |
117 | 248 | ||||||
Treasury shares acquired |
| (1,317 | ) | |||||
Stock options exercised |
| 288 | ||||||
Net cash used in financing activities |
(2,544 | ) | (902 | ) | ||||
Effect of exchange rate on cash |
594 | (2,220 | ) | |||||
Increase in cash |
1,059 | 1,681 | ||||||
Cash and cash equivalents, beginning of year |
39,031 | 35,273 | ||||||
Cash and cash equivalents, end of period |
$ | 40,090 | $ | 36,954 | ||||
Supplemental cash flow information: |
||||||||
Cash paid for interest |
$ | 64 | $ | 10 | ||||
Cash paid for income taxes, net |
$ | 3,332 | $ | 1,025 | ||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||
Capital
expenditures included in accrued expenses and other long-term liabilities |
$ | 312 | $ | 609 | ||||
Details of business acquired in purchase transactions: |
||||||||
Fair value of assets acquired |
$ | 7,921 | $ | 12,430 | ||||
Liabilities assumed or incurred |
$ | 3,635 | $ | 2,694 | ||||
Noncontrolling interest |
$ | | $ | 3,888 | ||||
Cash paid for acquisitions |
$ | 3,368 | $ | 5,848 | ||||
Cash acquired |
682 | 36 | ||||||
Net cash paid for acquisitions |
$ | 2,686 | $ | 5,812 | ||||
Deferred acquisition payment |
$ | 918 | $ | | ||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||||||||||||||||||
2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | |||||||||||||||||||||||||||||||||||||||||||
Homecare |
£ | 41,547 | £ | 38,543 | £ | 38,745 | £ | 39,255 | £ | 38,323 | £ | 35,860 | £ | 35,903 | £ | 12,793 | £ | 12,163 | £ | 12,095 | £ | 12,188 | £ | 11,651 | £ | 11,083 | £ | 11,041 | ||||||||||||||||||||||||||||
Nursing Homes |
1,734 | 2,088 | 2,379 | 3,048 | 2,731 | 2,864 | 3,261 | 556 | 663 | 760 | 1,002 | 882 | 931 | 1,033 | ||||||||||||||||||||||||||||||||||||||||||
Hospitals |
2,548 | 2,607 | 2,620 | 3,114 | 2,933 | 3,235 | 3,330 | 672 | 655 | 633 | 812 | 696 | 755 | 712 | ||||||||||||||||||||||||||||||||||||||||||
Total |
£ | 45,829 | £ | 43,238 | £ | 43,744 | £ | 45,417 | £ | 43,987 | £ | 41,959 | £ | 42,494 | £ | 14,021 | £ | 13,481 | £ | 13,488 | £ | 14,002 | £ | 13,229 | £ | 12,769 | £ | 12,786 | ||||||||||||||||||||||||||||
Foreign
Exchange rate |
1.63 | 1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | 1.63 | 1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | ||||||||||||||||||||||||||||||||||||||||||
$ | 74,712 | $ | 69,224 | $ | 69,199 | $ | 70,417 | $ | 65,748 | $ | 65,530 | $ | 69,384 | $ | 22,863 | $ | 21,581 | $ | 21,337 | $ | 21,712 | $ | 19,768 | $ | 19,948 | $ | 20,877 | |||||||||||||||||||||||||||||
SG&A Foreign
Operations
Organic |
£ | 10,332 | £ | 10,146 | £ | 10,101 | £ | 10,126 | £ | 9,962 | £ | 9,786 | £ | 9,856 | ||||||||||||||||||||||||||||||||||||||||||
SG&A Foreign
Operations
Acquisitions |
1,015 | 773 | 612 | 586 | 265 | | | |||||||||||||||||||||||||||||||||||||||||||||||||
SG&A Foreign
Operations
Acquisition
Costs |
27 | 92 | | 94 | 361 | | | |||||||||||||||||||||||||||||||||||||||||||||||||
SG&A Foreign
Operations
Total |
11,374 | 11,011 | 10,713 | 10,806 | 10,588 | 9,786 | 9,856 | |||||||||||||||||||||||||||||||||||||||||||||||||
SG&A US Corporate |
428 | 438 | 677 | 719 | 660 | 485 | 406 | |||||||||||||||||||||||||||||||||||||||||||||||||
SG&A Amortization |
113 | 174 | 197 | 240 | 218 | 193 | 199 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total |
£ | 11,915 | £ | 11,623 | £ | 11,587 | £ | 11,765 | £ | 11,466 | £ | 10,464 | £ | 10,461 | ||||||||||||||||||||||||||||||||||||||||||
Foreign
Exchange rate |
1.63 | 1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 19,432 | $ | 18,606 | $ | 18,330 | $ | 18,244 | $ | 17,176 | $ | 16,346 | $ | 17,080 | |||||||||||||||||||||||||||||||||||||||||||
Operating Income
Foreign Operations |
£ | 2,647 | £ | 2,470 | £ | 2,775 | £ | 3,196 | £ | 2,641 | £ | 2,983 | £ | 2,930 | ||||||||||||||||||||||||||||||||||||||||||
Operating
Loss US Corporate |
(428 | ) | (438 | ) | (677 | ) | (719 | ) | (660 | ) | (485 | ) | (406 | ) | ||||||||||||||||||||||||||||||||||||||||||
Operating
Loss Amortization |
(113 | ) | (174 | ) | (197 | ) | (240 | ) | (218 | ) | (193 | ) | (199 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total |
£ | 2,106 | £ | 1,858 | £ | 1,901 | £ | 2,237 | £ | 1,763 | £ | 2,305 | £ | 2,325 | ||||||||||||||||||||||||||||||||||||||||||
Foreign
Exchange rate |
1.63 | 1.60 | 1.58 | 1.55 | 1.49 | 1.56 | 1.63 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 3,431 | $ | 2,975 | $ | 3,007 | $ | 3,468 | $ | 2,592 | $ | 3,602 | $ | 3,797 | |||||||||||||||||||||||||||||||||||||||||||
# # #
10