Allion Healthcare Reports Second Quarter 2008 Results.* Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter increased 39% to a record $86.4 million * Net income increased 200% to $2.9 million * Earnings per diluted share up 83% to $0.11 MELVILLE, N.Y. -- Allion Healthcare (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALLI) today announced financial results for the three months ended June 30, 2008, which include its recent expansion into the Specialty Infusion market. As a result of the April 4, 2008 acquisition of Biomed America, Inc. ("Biomed"), the Company now operates its business in two segments: Specialty HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. , which is the Company's legacy specialty pharmacy and disease management services focused on HIV/AIDS HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome patients, and Specialty Infusion, which is the Company's recently acquired Biomed business of specialized biopharmaceutical medications and services to chronically ill patients. Results for the second quarter reflect the acquisition of Biomed effective April 4, 2008. Summary of Results Consolidated net sales for the second quarter of 2008 increased 39% to $86.4 million, compared to $62.3 million for the second quarter of 2007. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of from the Company's Specialty HIV segment increased 10% to $68.7 million principally resulting from patient growth in its California market. The number of Specialty HIV prescriptions filled increased 7% over the same period in 2007. The Biomed acquisition added $17.7 million in Specialty Infusion revenues during the second quarter of 2008. Approximately 93% of the Specialty Infusion sales were from Hemophilia patients receiving Blood Clotting Factor blood clotting factor Coagulation factor, see there and patients with Auto Immune Disorders/Neuropathies receiving IVIG IVIG Intravenous immunoglobulin, see there . Gross profit was $17.1 million and $8.9 million for the three months ended June 30, 2008 and 2007, respectively, and represents 19.8% and 14.3% of net sales, respectively. The increase in gross profit as a percentage of revenues is primarily attributable to the relatively higher gross margins of our Specialty Infusion business compared to our Specialty HIV business. The Company's gross margin from the Specialty HIV segment remained approximately at historical levels. Selling, general and administrative expenses increased to $9.8 million, or 11.3% of net sales, during the second quarter of 2008, compared to $6.5 million, or 10.5% of net sales, during the second quarter of 2007. The increase was primarily due to the acquisition of the Specialty Infusion segment. The Company does not expect to realize significant cost efficiencies as a result of the Biomed acquisition. The Company reported net income for the period of $2.9 million, a three fold increase when compared to net income of $973,000 for the second quarter of 2007. Earnings per diluted share for the second quarter of 2008 were $0.11 compared to earnings per diluted share of $0.06 for the second quarter of 2007. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased to $7.3 million for the second quarter of 2008, from $2.3 million for the second quarter of 2007. An explanation and reconciliation of Net income under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to EBITDA and adjusted EBITDA is provided below. "Allion's results for the second quarter exceeded our expectations," commented Michael Moran, Chairman, President and Chief Executive Officer of Allion Healthcare. "We had a strong second quarter in our Specialty HIV segment, realizing 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" organic growth and steady gross margins. The Biomed acquisition is off to an excellent start and met our earnings target. We feel strongly that the acquisition of Biomed will continue to provide our stockholders with a stronger, more diversified Company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a and will continue to generate growth in earnings." The Company announced that it has established a new subsidiary called Alligenix. Alligenix will focus on relationships with Pharmaceutical manufacturers of both HIV and Specialty Pharmacy products. Bill Jones will serve as the President of Alligenix. Mr. Jones has previously served in senior positions with Medco and US Bioservices, as well as a consultant to Allion during the integration of Biomed. "We are thrilled to attract someone with Bill's background to join Allion in this new opportunity. We have had some success in small programs working directly with Manufacturers, and believe that with our substantial data base of historical adherence data, and our ability to offer customized services for them, we will be able to generate new revenue opportunities through this division," commented Mr. Moran. The Company also announced today that its Board of Directors has appointed Flint D. Besecker as an independent director who will serve on the Nominating and Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. Committee and will chair the Compensation Committee. Mr. Besecker is currently principal of Firestone Asset Management, a Director with Care Investment Trust (NYSE NYSE See: New York Stock Exchange : CRE CRE Commercial Real Estate CRE Corporate Real Estate CRE Commission for Racial Equality (Scotland) CRE CCD (Charge Coupled Device) and Readout Electronics CRE Camp Response Element ) and most recently held the position of President, CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Healthcare. Mr Besecker fills the vacancy created by the resignation of Harvey Werblowsky, Esq., which was effective upon the election of Mr. Besecker. Mr. Moran stated, "We welcome Mr. Besecker to our Board of Directors. His extensive experience in the healthcare financial service sector will be an invaluable asset as we continue to broaden our products and services. I would also like to thank Harvey Werblowsky, Esq. for his dedicated service as a past member of the Allion Board." Third Quarter Guidance The Company today provided financial guidance for the third quarter of 2008. This guidance assumes a 41% effective tax rate. [TABLE OMITTED] [TABLE OMITTED] Conference Call Information A conference call to discuss the results will be held at 5:00 p.m. ET on Thursday, August 7, 2008. To join the call, please dial (913) 312-0378 from the U.S. or from abroad. The conference call will also be webcast on Allion Healthcare's website at www.allionhealthcare.com. To join the webcast, please go to Allion Healthcare's web site at least 15 minutes prior to the start of the conference call to register, download, and install any necessary audio software. An audio replay of the conference call will be available from 8:00 p.m. ET on Thursday, August 7, 2008, through 8:00 p.m. ET on Thursday, August 14, 2008, by dialing (719) 457-0820 from the U.S. or abroad and entering confirmation code 5124358. The audio webcast will also be available on the company's website, www.allionhealthcare.com, for one year. Questions during the live call will be reserved for investment professionals only. About Allion Healthcare Allion Healthcare, Inc. is a national provider of specialty pharmacy and disease management services focused on HIV/AIDS patients as well as specialized biopharmaceutical medications and services to chronically ill patients. Allion Healthcare sells HIV/AIDS medications, ancillary drugs and nutritional supplies under the trade name MOMS Pharmacy. Allion Healthcare provides services for the intravenous immunoglobulin Intravenous immunoglobulin (IVIG) is a blood product administered intravenously. It contains the pooled IgG immunoglobulins (antibodies extracted from the plasma of over a thousand blood donors). IVIG's effects last between 2 weeks and 3 months. , Blood Clotting Factor and other therapies through its Biomed America division. Allion Healthcare works closely with physicians, nurses, clinics, AIDS Service Organizations AIDS service organizations are community based that provide community support. While their primary function is to provide needed services to individuals with HIV, they also provide support services for their families and friends as well as conduct prevention efforts. , and with government and private payors to improve clinical outcomes and reduce treatment costs. 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. Statement This press release contains certain "forward-looking" statements within the meaning 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, such as statements about the Company's growth strategy, future effective tax rate, and future financial performance. Words such as "continue," "will," "assume," and similar expressions identify forward-looking statements. Such forward-looking statements represent Allion Healthcare's expectations and beliefs and involve a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, successful integration of the Biomed acquisition, competitive pressures, demand for Allion Healthcare's products and services, changes in reimbursement and other changes in customer mix, changes in third party reimbursement rates or Allion Healthcare's qualification for preferred reimbursement rates in California and 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 , changes in government regulations or the interpretation of these regulations, Allion Healthcare's ability to manage growth successfully, Allion Healthcare's ability to effectively market its services, receipt of licensing and regulatory approvals, successful identification of strategic alliances and satellite facilities, and other risks set forth in Item 1A. Risk Factors in Allion Healthcare's 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. for the fiscal year ended December 31, 2007 and in Part II, Item 1A. Risk Factors of the Company's Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2008. You are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Except to the extent required by applicable securities laws, Allion Healthcare undertakes no obligation to update any forward-looking statement contained herein, whether as a result of new information, future events, or otherwise. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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