Allied Healthcare International Inc. Reports 19 Percent Revenue Increase and Completion of Two Acquisitions in Fiscal 2003 First Quarter.Business Editors/Health/Medical Writers NEW YORK--(BUSINESS WIRE)--Feb. 11, 2003 -- Revenue Up 19 Percent -- Operating Income Up 23 Percent -- Basic EPS(a) $0.09 Allied Healthcare International Inc. (AMEX AMEX See: American Stock Exchange : ADH ADH: see antidiuretic hormone. ), a leading international provider of flexible healthcare staffing services, announced today results for its fiscal 2003 first quarter ended December December: see month. 31, 2002. Revenue for the first quarter ended December 31, 2002, grew 19 percent to $72.4 million, versus $61.0 million for the comparable quarter in fiscal 2002. Excluding $0.6 million in charges related to the write down of debt discount, net income for the quarter would have been $2.9 million or $0.09 per basic share. Actual net income for the quarter was $2.3 million or $0.06 per basic share, compared with net income of $1.5 million, or $0.08 per share in the comparable period last year. Per share amounts in the current year were after giving effect to preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. transactions.
First Quarter Ended December 31,
($ millions) 2002 2001
---- ----
Revenue $72.4 vs. $61.0 + 19%
Operating income $7.3 vs. $5.9 + 23%
Net Income(a) $2.9 vs. $1.5 + 99%
(a) Results for the first quarter ended December 31, 2002, excludes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $601,000 related to the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of debt discount associated with note repayments in the first quarter. Organic growth in the flexible healthcare staffing services sector as well as the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. effects of changes in foreign exchange were the primary contributors to the increase in revenue and earnings for the first quarter. However, during the latter part of the first quarter, the Company completed the acquisitions of two UK-based flexible healthcare staffing services providers, Medic-One Limited and Dalesway Nursing Services. Medic-One Limited further strengthens the Company's position throughout London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. while Dalesway Nursing Services increases the Company's coverage in the North and West Yorkshire West Yorkshire, former metropolitan county, N central England. Created in the 1974 local government reorganization, the county largely embraced the Leeds conurbation and comprised five metropolitan districts: Calderdale, Bradford, Leeds, Wakefield, and Kirklees. areas of England. "We are encouraged by our first quarter results, and remain focused on the Company's expansion both organically as well as through strategic acquisition. We are on track with our acquisition plans as evidenced by the two completed during the quarter, and we continue to evaluate other candidates regularly. The Company repeatedly demonstrates its ability to achieve significant growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and successfully operate in the fast-growing flexible healthcare staffing services sector," said Timothy M. Aitken, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Sarah L. Eames, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , added: "With 110 branches throughout the U.K. and the completion of several key acquisitions, we have steadily been expanding the number of hours of service we provide year over year. Our innovative recruitment programs enable us to continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. attract and successfully retain nurses and carers. As a result, our flexible staffing services team has grown to more than 30,000 professionals who deliver unprecedented levels of quality care and service to the range of clients we serve. With a strong and growing network, we are well equipped to expand our offering both in the UK and in the U.S." New York-based Allied Healthcare International Inc. is a leading provider of flexible healthcare staffing services in the United Kingdom. The company also provides ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. homecare services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Certain statements contained herein are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that have been made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks and uncertainties, including those contained in the Company's filings with the Securities and Exchange Commission, which may cause actual results in future periods or plans for future periods to differ materially from those described herein as anticipated, believed or estimated.
ALLIED HEALTHCARE INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
December 31, December 31,
2002 2001
---- ----
Total revenues $ 72,439 $ 61,036
Gross profit 20,270 16,335
Selling, general and
administrative expenses 12,994 10,427
---------- -----------
Operating income 7,276 5,908
Interest expense, net 3,198 3,323
Foreign exchange loss 8 13
---------- -----------
Income before income
taxes and minority
interest 4,070 2,572
Provision for income taxes 1,767 1,071
---------- -----------
Income before minority
interest 2,303 1,501
Minority interest 44
---------- -----------
Net income $ 2,303 $ 1,457
Redeemable preferred
dividend and accretion 994
---------- -----------
Net income available
to common
shareholders $ 1,309 $ 1,457
========== ===========
Net income per share of common
stock:
Basic $ 0.06 $ 0.08
========== ===========
Diluted $ 0.06 $ 0.06
========== ===========
Weighted average number of
common shares outstanding:
Basic 21,171 17,289
========== ===========
Diluted 21,559 17,465
========== ===========
Reconciliation of Reported Net
Income to Adjusted Net Income:
Three Months Ended
December 31, 2002
-----------------
Reported net income $ 2,303
Write-off of debt discount 601
----------
Adjusted net income $ 2,904
==========
Reconciliation of Reported Net
Income Per Share to Adjusted Net
Income Per Share:
Three Months Ended
December 31, 2002
Basic Diluted
----- -------
Reported net income per share $ 0.06 $ 0.06
Add back: per share effect of
write-off of debt discount 0.03 0.03
---------- -----------
Adjusted net income per share -
basic $ 0.09 $ 0.09
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