Allied Healthcare International Inc. Reports 24.6 Percent Revenue Increase in Fiscal 2003 Second Quarter and Announces Stock Repurchase Program.Business Editors/Health/Medical Writers NEW YORK--(BUSINESS WIRE)--May 8, 2003 Allied Healthcare International Inc. -0-
-- Revenue Up 24.6 Percent
-- Operating Income Up 22.5 Percent
-- Net Income Up 56.9 Percent
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 second quarter ended March 31, 2003. Revenue for the second quarter ended March 31, 2003, rose 24.6 percent to $71.7 million, versus $57.5 million for the comparable quarter in fiscal 2002. Net income available to common shareholders for the quarter was $2.6 million or $0.11 per share, compared with net income available to common shareholders of $1.6 million, or $0.09 per share in the comparable period last year. Net income and per share amounts in the current year were after giving effect to preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. transactions.
Second Quarter Ended March 31,
------------------------------------
($ millions) 2003 2002
--------- ---------
Revenue $71.7 vs. $57.5 + 24.6%
Operating income $ 7.0 vs. $ 5.8 + 22.5%
Net Income available to
common shareholders $ 2.6 vs. $ 1.6 + 56.9%
Revenue for the six-month period ended March 31, 2003, grew 22.4 percent to $139.7 million, versus $114.1 million for the comparable period in fiscal 2002. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the six-month period increased 23.4 percent to $14.1 million compared with $11.5 million for the same period last year. Net income available to common shareholders for the six-month period was $3.9 million, or $0.18 per share, compared with net income available to common shareholders of $3.1 million, or $0.18 per share in the comparable period last year. Net income and per share amounts in the current year were after giving effect to preferred stock transactions. Included in both the three-months and six-months ended March 31, 2003, results are 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. During the second quarter, the Company continued to execute its growth plan, completing two additional acquisitions of complementary U.K.-based staffing companies. Yorkshire Yorkshire, former county, N England. In 1974, Yorkshire was divided into the nonmetropolitan counties of Humberside, Cleveland, North Yorkshire, and partially into the metropolitan county of West Yorkshire. All but North Yorkshire have since been dissolved. Careline, based in the city of Leeds
Noun, pl welfare services provided by local authorities or a state agency for people with particular social needs social services npl → servicios mpl sociales departments. Both acquisitions will extend the Company's geographic reach and enhance its ability to forge forge Open furnace for heating metal ore and metal for working and forming, or a workshop containing forge hearths and related equipment. From earliest times, smiths (see smithing) heated iron in forges and formed it by hammering on an anvil. additional contracts in these areas. In April 2003, the Company announced the sale of its U.S. subsidiaries, The PromptCare Companies, Inc. and Steri-Pharm Inc., to PromptCare Acquisition Corporation for approximately $8.5 million in cash. Both The PromptCare Companies, Inc. and Steri-Pharm Inc. were non-core business units dedicated to the delivery of home healthcare services. The transaction relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale of these subsidiaries has been accounted for as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . "The sale of PromptCare and Steri-Pharm demonstrates this Company's ongoing determination to focus solely on one of the fastest growing sectors in healthcare, staffing services," 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. . "Furthermore, management remains dedicated to containing costs and improving cash flows. The Company's average DSO See CSO. (days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). ) were 38 at March 31, 2003. Furthermore, this commitment is evidenced by the $10.9 million in cash the Company generated from operating activities during the first half of the year, an increase of nearly 45 percent over the prior year. We continue to concentrate on expanding the business through organic growth as well as acquisitions and to emulating our U.K. successes in the U.S.," Aitken concluded. 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. , commented: "Our U.K. staffing business continues to experience double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth. The results we reported for the second quarter reflect the team's ability to carry out a successful growth plan that has earned us the leadership position we currently hold in the U.K. flexible staffing services arena." Allied Healthcare also announced today the initiation of a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program pursuant to which it may purchase up to $3,000,000 of its outstanding shares of common stock. The repurchases may be conducted in open-market transactions Open-Market Transaction An order placed by an insider, after all appropriate documentation has been filed, to buy or sell restricted securities openly on an exchange. Notes: or in privately negotiated transactions from time to time. This stock repurchase program is in addition to the Company's existing stock repurchase program pursuant to which it may purchase up to $1,000,000 of its outstanding shares of common stock. New York-based Allied Healthcare International Inc. is a leading provider of flexible healthcare staffing services in the United Kingdom. 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 Six Months Ended
------------------------ -------------------------
March 31, March 31, March 31, March 31,
2003 2002 2003 2002
------------ ----------- ------------ ------------
Total revenues $ 71,686 $ 57,511 $ 139,684 $ 114,093
Gross profit 19,625 15,149 38,523 30,052
Selling, general
and admini-
strative
expenses 12,581 9,397 24,387 18,595
------------ ----------- ------------ ------------
Operating
income 7,044 5,752 14,136 11,457
Interest
expense, net 3,344 3,254 6,542 6,577
Foreign exchange
loss 3 7 11 20
------------ ----------- ------------ ------------
Income before
income taxes,
minority
interest and
discontinued
operations 3,697 2,491 7,583 4,860
Provision for
income taxes 109 1,088 1,876 2,159
------------ ----------- ------------ ------------
Income before
minority
interest and
discontinued
operations 3,588 1,403 5,707 2,701
Minority
interest - 42 - 86
------------ ----------- ------------ ------------
Income from
continuing
operations 3,588 1,361 5,707 2,615
(Loss) Income
from
discontinued
operations (62) 265 122 468
------------ ----------- ------------ ------------
Net income 3,526 1,626 5,829 3,083
Redeemable
preferred
dividend and
accretion 974 - 1,968 -
------------ ----------- ------------ ------------
Net income
available to
common
shareholders $ 2,552 $ 1,626 $ 3,861 $ 3,083
============ =========== ============ ============
Basic net income
per share of common
stock from:
Income from
continuing
operations $ 0.11 $ 0.08 $ 0.17 $ 0.15
Income from
discontinued
operations - 0.01 0.01 0.03
----------- ---------- ----------- -----------
Net income $ 0.11 $ 0.09 $ 0.18 $ 0.18
=========== ========== =========== ===========
Diluted net income
per share of common
stock from:
Income from
continuing
operations $ 0.11 $ 0.06 $ 0.17 $ 0.12
Income from
discontinued
operations - 0.01 - 0.03
----------- ---------- ----------- -----------
Net income $ 0.11 $ 0.07 $ 0.17 $ 0.15
=========== ========== =========== ===========
Weighted average
number of common
shares outstanding:
Basic 22,256 17,289 21,707 17,289
============ =========== ============ ============
Diluted 22,630 17,643 22,088 17,464
============ =========== ============ ============
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