Allied Healthcare International Inc. Reports Fiscal 2004 Fourth Quarter and Year-End Results.
Fourth Quarter Twelve Months
-------------- -------------
Revenue +6.6% +10.5%
Gross Profit +11.4% +14.6%
Gross Margin % 29.2% 28.6%
Diluted EPS $(0.04) $0.10
Diluted EPS, as adjusted $0.14(*) $0.40(*)
(*) Results exclude compensation charges made in the first and fourth
quarters and one time charges in the fourth quarter incurred in
connection with the refinancing and the redemption of the
preference shares.
Allied Healthcare International Inc. (Nasdaq: AHCI AHCI Advanced Host Controller Interface AHCI Art and Humanities Index ), a leading provider of flexible healthcare staffing services in the United Kingdom, announced results for its fiscal 2004 fourth quarter and year ended September September: see month. 30, 2004. Revenue for the year ended September 30, 2004 rose 10.5 percent to $325.3 million, compared with $294.4 million in fiscal 2003. Net income available to common shareholders before one time charges for the year ended fiscal 2004 reached $11.3 million, or $0.40 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income available to common shareholders of $6.7 million, or $0.30 per diluted share last year, an increase of over 33 percent in earnings per share. Net income available to common shareholders after the one time charges, as detailed on the financial table attached for fiscal 2004, was $2.8 million, or $0.10 per diluted share, compared with net income available to common shareholders of $8.0 million or $0.36 per diluted share last year. Revenue for the fourth quarter ended September 30, 2004, reached $84.7 million, compared with $79.4 million for the comparable period in fiscal 2003. Net income available to common shareholders before one time charges for the quarter ended September 30, 2004 reached $6.0 million, or $0.14 per diluted share, compared with net income available to common shareholders of $3.0 million, or $0.13 per diluted share for the comparable period in fiscal 2003. Net loss available to common shareholders for the Allied Healthcare International Inc. Fiscal Fourth Quarter and Full Year 2004 Results fourth quarter after the one time charges was $(1.6) million, or $(0.04) per diluted share, compared with net income available to common shareholders of $3.0 million or $0.13 per diluted share compared to the fourth quarter last year. Included in the results for both the fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. of fiscal 2004 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 fourth quarter, the Company completed three acquisitions of Social Services social services Noun, pl welfare services provided by local authorities or a state agency for people with particular social needs social services npl → servicios mpl sociales agencies bringing the total for the year to eight. The initial consideration, excluding contingent payments, for these acquisitions was $2.2 million. In July July: see month. 2004, the Company completed the sale of 14,500,000 shares of its common stock at a price of $4.90 per share in its follow-on public offering and obtained a New Senior Credit Facility of GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 50m. This New Senior Credit Facility (together with approximately $65.7 million of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the Company's public offering) enabled the Company to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. its Senior Credit Facility and Mezzanine loan A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). at significantly lower interest rates. "2004 was a very busy and productive year for all of us here at Allied. In July, against the backdrop Backdrop may refer to:
An offering of additional shares after a company has had an initial public offering. Notes: This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project. that simplified our capital structure and reduced our debt and cost of capital while strengthening our balance sheet," commented Timothy M. Aitken, Chairman of Allied Healthcare. The Company also announced that Ms. Sarah Eames has today stepped down as Chief Executive Officer and President of Allied Healthcare International Inc. for personal and family reasons. Mr. Aitken commented, "I fully sympathize with Verb 1. sympathize with - share the suffering of compassionate, condole with, feel for, pity grieve, sorrow - feel grief commiserate, sympathise, sympathize - to feel or express sympathy or compassion Sarah's situation which has not been made easier by a continuous commute TO COMMUTE. To substitute one punishment in the place of another. For example, if a man be sentenced to be hung, the executive may, in some states, commute his punishment to that of imprisonment. across the Atlantic. Ms. Eames will remain a director and employee of the Company and we welcome and value her continued input." Mr. Aitken went on to say that "given that the Company's business is currently exclusively based in the U.K. and that it significantly outperforms its competitors at this time, we can obviously expect to attract further able executives, as evidenced by the recent appointment of Ms. Carmel Malley as Operations Director who joins us next week after nine and a half years with Nestor. Clearly it is now appropriate that the 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. be based in the U.K. Accordingly I will again assume that role but with a keen eye for a successor." In addition to disclosing results of operations that are determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See 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 charges that are unusual. 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. Management also uses these non-GAAP measures internally to assess the performance of its business and to establish operational goals. 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 attached to this press release. Allied Healthcare invites all those interested in hearing management's discussion of the quarter and full year results to join the call by dialing 877-407-9205 on Wednesday, November 17, 2004 at 10:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy . International participants may access the call by dialing 201-689-8054. A replay will be available for one week following the call by dialing 877-660-6853 for domestic participants and 201-612-7415 for international participants. Refer to replay passcode account number 1628 and conference ID number 123656 when prompted. Participants may also access a live webcast of the conference call through the investor relations Investor relations The process by which the corporation communicates with its investors. section of Allied Healthcare's website, www.alliedhealthcare.com, by clicking on the news and press section, then selecting investor relations to access the link to the call. ABOUT ALLIED HEALTHCARE INTERNATIONAL INC. Allied Healthcare International, Inc. (http://www.alliedhealthcare.com) is a leading provider of flexible healthcare staffing services in the United Kingdom. Allied operates a community-based network of over 125 branches with the capacity to provide carers (known as home health aides in the U.S.), nurses, and specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. medical personnel to locations covering approximately 90% of the U.K. population. Allied meets the needs of Private Patients, Community Care, Nursing Homes and Hospitals. The company also supplies medical-grade oxygen for use in respiratory therapy respiratory therapy Medical profession concerned with assisting the respiratory function of individuals who have severe lung disorders. Practices include suctioning to clear secretions from the airway, use of aerosol mists (sometimes medicated) or gases to ease breathing, in the U.K. pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. market and to private patients in Northern Ireland Northern Ireland: see Ireland, Northern. Northern Ireland Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267. . 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. 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: the Company's ability to continue to recruit and retain qualified flexible healthcare staff; ability to enter into contracts with hospitals and other healthcare facility customers on terms attractive to the Company; the general level of patient occupancy at hospital and healthcare facilities of Allied's customers; ability to successfully implement acquisition and integration strategies; dependence on the proper functioning of its information systems; the effect of existing or future government regulation of the healthcare industry, and ability to comply with these regulations; the impact of medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. and other claims asserted against Allied; the effect of regulatory change that may apply to Allied and that may increase costs and reduce revenue and profitability; ability to use net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry forward to offset net income; and the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill, of which the Company 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , all quarterly reports on form 10-Q Form 10-Q See 10-Q. and any current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed since the date of the last Form 10-K as well as changes in any of the following: the demand for the Company's products and services, general economic conditions, governmental regulation, the level of competition, customer strategies and pricing and reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. policies. 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30, Year Ended September 30,
------------------ ------------------------
2004 2003 2004 2003
---- ---- ---- ----
Total revenues $84,674 $79,421 $325,298 $294,379
-------- -------- -------- --------
Gross profit 24,742 22,205 93,171 81,323
Selling, general and
administrative expenses 15,546 15,598 63,544 53,648
-------- -------- -------- --------
Operating income 9,196 6,607 29,627 27,675
Interest expense, net 5,974 1,375 13,727 11,279
Foreign exchange loss 138 4 184 18
-------- -------- -------- --------
Income before income
taxes and
discontinued
operations 3,084 5,228 15,716 16,378
Provision for income taxes 919 1,206 5,847 4,910
-------- -------- -------- --------
Income from continuing
operations 2,165 4,022 9,869 11,468
-------- -------- -------- --------
Discontinued operations:
Loss from discontinued
operations - - - (16)
Gain on disposal of
subsidiaries, net of
taxes of $775 - - - 519
-------- -------- -------- --------
- - - 503
-------- -------- -------- --------
Net income 2,165 4,022 9,869 11,971
Redeemable preferred
dividends and accretion 3,804 1,034 7,020 4,005
-------- -------- -------- --------
Net (loss) income
available to common
shareholders $(1,639) $2,988 $2,849 $7,966
======== ======== ======== ========
Basic and diluted (loss)
income per diluted share
of common stock from:
(Loss) income from
continuing operations $(0.04) $0.13 $0.10 $ 0.34
Income from
discontinued
operations - - - 0.02
-------- -------- -------- --------
Net (loss) income
available to common
shareholders $(0.04) $0.13 $0.10 $0.36
======== ======== ======== ========
Weighted average number of
common shares
outstanding:
Basic 43,012 22,191 27,419 21,962
======== ======== ======== ========
Diluted 43,447 22,479 28,104 22,304
======== ======== ======== ========
Reconciliation of Reported
Net (Loss) Income to
Adjusted Net Income:
Three Months Ended
September 30, Year Ended September 30,
2004 2003 2004 2003
---- ---- ---- ----
Reported net (loss) income
available to common
shareholders $(1,639) $2,988 $2,849 $7,966
Compensation charges 1,000 - 1,860 -
Write-offs related to
refinancing previous
credit facilities 2,906 - 2,906 -
Write-offs and fees
related to conversion of
Series A preferred stock 3,730 - 3,730 -
Write-down of debt
discount - - - 613
Estimated income tax
liability reversal - - - (1,874)
-------- -------- -------- --------
Adjusted net income
available to common
shareholders $5,997 $2,988 $11,345 $6,705
======== ======== ======== ========
Reconciliation of Reported
Net (Loss) Income Per
Diluted Share to Adjusted
Net Income Per Diluted
Share:
Three Months Ended
September 30, Year Ended September 30,
2004 2003 2004 2003
---- ---- ---- ----
Reported net (loss) income
per diluted share
available to common
shareholders $(0.04) $0.13 $0.10 $0.36
Add back per-share effect:
Compensation charges 0.02 - 0.07 -
Write-offs related to
refinancing previous
credit facilities 0.07 - 0.10 -
Write-offs and fees
related to conversion
of Series A preferred
stock 0.09 - 0.13 -
Write-down of debt
discount - - - 0.02
Deduct per-share effect:
Estimated income tax
liability reversal - - - (0.08)
-------- -------- -------- --------
Adjusted net income per
diluted share available
to common shareholders $0.14 $0.13 $0.40 $0.30
======== ======== ======== ========
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