Allied Healthcare International Inc. Reports Results for Quarter Ended June 30, 2002; Revenues Up 73%.Business Editors & Health/Medical Writers NEW YORK--(BUSINESS WIRE)--July 25, 2002 Allied Healthcare International Inc. (AMEX AMEX See: American Stock Exchange :TWH TWh TeraWatt Hour(s) TWH Toronto Western Hospital (Toronto, ON Canada) TWH Tennessee Walking Horse TWH Town House TWH Technical Warrant Holder (organization of technical authority) ), formerly Transworld Transworld may refer to:
The Company also announced the closing of its corporate reorganization, which was approved at its June 7, 2002 annual shareholders meeting.
Three Months Ended Nine Months Ended
June 30, June 30,
($000's) ($000's)
2002 2001 2002 2001
---- ---- ---- ----
Revenues $64,774 vs. $37,420 +73% $187,694 vs. $110,259 +70%
Operating
income(a) $6,375 vs. $2,502 +155% $18,300 vs. $ 2,729 +571%
(a) Results for the three and nine months ended June 30, 2002 exclude charges of $7,377 related to the Company's corporate restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and reorganization. Consolidated revenues for the three months ended June 30, 2002, were $64,774,000, a 73 percent increase over the comparable period in fiscal 2001. Allied's 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. , excluding certain charges, rose to $6,375,000, compared with $2,502,000 reported in the comparable prior year period. The growth in revenue and earnings is principally due to expansion of the company's flexible healthcare staffing services - now the primary thrust of the business. As of October October: see month. 1, 2001, 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 the provisions of Statement of Financial Accounting Standards No. 142 the Company is no longer amortizing goodwill. Results for the three months ended June 30, 2001 results include goodwill amortization expense of $929,000. "These results, which are clearly outstanding, vindicate management's corporate strategy over the last 3 years. The corporate reorganization now closed, clearly points the way to the future with a sharp focus on a flexible healthcare staffing strategy. That industry has considerable opportunity for organic growth as well as consolidation by way of acquisition." said Timothy M. Aitken Aitken may refer to:
Mr. Aitken continued, "Allied is first and foremost focused on organic growth both in the U.K. and the U.S. That growth figure is now well into double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. , but the company also expects to expand its geographic coverage and penetration of the market with continued well chosen acquisitions at multiples accretive to earnings." Mr. Aitken concluded, "this is a market with compelling growth forecasts, in sharp contrast to other industries and Allied will play a significant part in its immediate development." Allied Healthcare's year to date operating income, excluding non-recurring charges, increased to $18,300,000 from $2,729,000 for the comparable prior year period. These favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results reflect the successful execution of the Company's growth strategy in flexible healthcare staffing services, the benefit of reduced goodwill amortization expense and the inclusion of $3,890,000 of costs related to the wind-down of the Company's U.S. mail-order business in fiscal 2001 results. The Company has now closed its corporate restructuring and reorganization with the minority investors in its U.K. operations. Under the reorganization, the minority shareholders, representing approximately 33 percent of Allied's U.K. operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , are exchanging their interests into convertible preferred and common stock in Allied Healthcare International Inc. As part of the one time corporate restructuring and reorganization, the Company has recognized a number of charges during the quarter ended June 30, 2002. These charges include $4,217,000 in non-cash stock-based compensation for the issuance of shares of common stock to senior management. In addition, the company expensed $2,341,000 for related tax equalization Tax equalization very much relates to the arena of international assignments. It all starts when a company takes the decision of sending employees abroad from his headquarters home location and / or from any location / subsidiary to any other location / subsidiary. bonuses for the reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of income taxes incurred by management as a result of the share issuances and the consolidation of the U.K. minority interests into the U.S. company. During the quarter, the Company also expensed $819,000 related to non-capitalized fees incurred in connection with restructuring the investment in its U.K. operations. The Company will recognize such additional charges as may occur related to the closing of the reorganization in its fourth quarter. The Company therefore reported a net loss for the quarter ended June 30, 2002 of $5,465,000 or $0.30 per share versus net income of $40,000 or $0.00 per share for the comparable period last year. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY- based Allied Healthcare International Inc. is a leading provider of flexible healthcare staffing services in the United Kingdom and 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 regionally 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. and 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 Nine Months Ended
----------------------------------------------------------------------
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
--------------------------------------------- ------------------------
Total revenues $ 64,774 $ 37,420 $ 187,694 $ 110,259
Gross profit 17,872 11,650 50,815 34,144
Selling, general and
administrative expenses 13,838 9,162 34,856 27,525
General and administrative
expenses related to
Mail-Order operations (14) 3,890
Stock-based compensation 4,217 4,217
Transaction expenses 819 819
----------------------------- ----------
Operating (loss) income (1,002) 2,502 10,923 2,729
Interest expense, net 3,448 2,241 10,025 6,220
Foreign exchange income (loss) (2) 18 391
----------------------------- ----------
(Loss) income before
income taxes and
minority interest (4,448) 261 880 (3,882)
Provision (benefit) for
income taxes 983 212 3,142 (690)
----------------------------- ----------
(Loss) income before
minority interest (5,431) 49 (2,262) (3,192)
Minority interest 34 9 120 12
----------------------------- ----------
Net (loss) income before
preferred dividend (5,465) 40 (2,382) (3,204)
Preferred dividend 114 114
----------------------------- ----------
Net (loss) income
available to
common shareholders $ (5,579) $ 40 $ (2,496) $ (3,204)
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Net loss per share of
common stock:
Basic $ (0.30) $ 0.00 $ (0.14) $ (0.18)
============================= ==========
Diluted $ (0.30) $ 0.00 $ (0.14) $ (0.18)
============================= ==========
Weighted average number
of common shares outstanding:
Basic 18,701 17,325 17,760 17,448
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Diluted 18,701 17,496 17,760 17,448
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