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8-K - FORM 8-K - ALLIED HEALTHCARE INTERNATIONAL INCc20949e8vk.htm
Exhibit 99.1
(ALLIED HELTHCARE LOGO)
Allied Healthcare International Inc. Reports
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 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 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


 

(ALLIED HELTHCARE LOGO)
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. Allied’s 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


 

(ALLLIED HELTHCARE LOGO)
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. Allied’s 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


 

(ALLIED HELTHCARE LOGO)
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, Allied’s 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


 

(ALLIED HELTHCARE LOGO)
“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 government’s 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 government’s proposed legislation changes, the Board is pleased with management’s 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 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 376287. 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 HELTHCARE 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 HEALTHCARE LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
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 LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
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 LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
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 LOGO)
ALLIED HEALTHCARE INTERNATIONAL INC.
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