x
|
Quarterly
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
|
o
|
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange
Action
of 1934
|
INDEX
|
|||
Page
|
|||
Part
I -
|
Financial
Information
|
Number
|
|
Item
1.
|
Financial
Statements
|
||
Consolidated
Statement of Operations -
|
3
|
||
three
months and nine months ended March 31,
|
|||
2007
and 2006 (Unaudited)
|
|||
Consolidated
Balance Sheet -
|
4
-
5
|
||
March
31, 2007 (Unaudited) and
|
|||
June
30, 2006
|
|||
Consolidated
Statement of Cash Flows -
|
6
|
||
Nine
months ended March 31, 2007 and 2006
|
|||
(Unaudited)
|
|||
Notes
to Consolidated Financial Statements
|
7
-
10
|
||
Item
2.
|
Management’s
Discussion and Analysis of
|
10
- 16
|
|
Financial
Condition and Results of Operations
|
|||
Item
3.
|
Quantitative
and Qualitative Disclosure
|
16
|
|
about
Market Risk
|
|||
|
|||
|
Item
4.
|
Controls
and Procedures
|
16
|
Part
II -
|
Other
Information
|
||
Item
6.
|
Exhibits
|
17
|
|
Signature
|
17
|
Three
months ended
|
Nine
months ended
|
||||||||||||
March
31,
|
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
sales
|
$
|
13,703,784
|
$
|
14,756,600
|
$
|
42,455,176
|
$
|
43,082,670
|
|||||
Cost
of sales
|
10,251,494
|
11,352,190
|
31,966,606
|
32,130,802
|
|||||||||
Gross
profit
|
3,452,290
|
3,404,410
|
10,488,570
|
10,951,868
|
|||||||||
Selling,
general and
|
|||||||||||||
administrative
expenses
|
3,003,928
|
2,992,446
|
9,286,343
|
9,194,558
|
|||||||||
Income
from operations
|
448,362
|
411,964
|
1,202,227
|
1,757,310
|
|||||||||
Interest
income
|
(25,844
|
)
|
(9,311
|
)
|
(82,071
|
)
|
(35,986
|
)
|
|||||
Other,
net
|
9,328
|
8,861
|
(34,551
|
)
|
28,854
|
||||||||
(16,516
|
)
|
(450
|
)
|
(116,622
|
)
|
(7,132
|
)
|
||||||
Income
before provision
|
|||||||||||||
for
income taxes
|
464,878
|
412,414
|
1,318,849
|
1,764,442
|
|||||||||
Provision
for income taxes
|
187,198
|
176,257
|
546,381
|
745,190
|
|||||||||
Net
income
|
$
|
277,680
|
$
|
236,157
|
$
|
772,468
|
$
|
1,019,252
|
|||||
Basic
earnings per share
|
$
|
0.04
|
$
|
0.03
|
$
|
0.10
|
$
|
0.13
|
|||||
Diluted
earnings per share
|
$
|
0.03
|
$
|
0.03
|
$
|
0.10
|
$
|
0.13
|
|||||
Weighted
average shares
|
7,883,577
|
7,849,910
|
7,873,460
|
7,837,132
|
|||||||||
outstanding
- basic
|
|||||||||||||
Weighted
average shares
|
|||||||||||||
outstanding
- diluted
|
8,077,696
|
8,068,817
|
8,071,832
|
8,057,166
|
(Unaudited)
|
|||||||
March
31,
|
June
30,
|
||||||
2007
|
2006
|
||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
2,714,275
|
$
|
2,696,324
|
|||
Accounts
receivable, net of allowances of
|
|||||||
$415,000 and $430,000, respectively
|
6,781,064
|
7,429,355
|
|||||
Inventories,
net
|
12,786,333
|
11,491,305
|
|||||
Other
current assets
|
369,753
|
224,853
|
|||||
Total
current assets
|
22,651,425
|
21,841,837
|
|||||
Property,
plant and equipment, net
|
10,805,016
|
11,252,934
|
|||||
Goodwill
|
15,979,830
|
15,979,830
|
|||||
Other
assets, net
|
251,911
|
255,845
|
|||||
|
|
||||||
Total
assets
|
$
|
49,688,182
|
$
|
49,330,446
|
(Unaudited)
|
|||||||
March
31,
|
June
30,
|
||||||
2007
|
2006
|
||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
3,394,054
|
$
|
3,208,699
|
|||
Deferred
income taxes
|
670,705
|
689,942
|
|||||
Deferred
revenue
|
465,000
|
465,000
|
|||||
Other
accrued liabilities
|
2,437,638
|
2,834,495
|
|||||
Total
current liabilities
|
6,967,397
|
7,198,136
|
|||||
Deferred
revenue
|
1,123,750
|
1,472,500
|
|||||
Commitments
and contingencies
|
|||||||
Stockholders'
equity:
|
|||||||
Preferred
stock; $0.01 par value; 1,500,000 shares
|
|||||||
authorized;
no shares issued and outstanding
|
-
|
-
|
|||||
Series
A preferred stock; $0.01 par value; 200,000 shares
|
|||||||
authorized;
no shares issued and outstanding
|
-
|
-
|
|||||
Common
stock; $0.01 par value; 30,000,000 shares
|
|||||||
authorized;
10,187,069 shares issued at March 31, 2007
|
|||||||
and
10,155,569 shares issued at June 30, 2006: 7,883,577
|
|||||||
shares
outstanding at March 31, 2007 and 7,852,077
|
|||||||
shares
outstanding June 30, 2006, respectively
|
101,871
|
101,556
|
|||||
Additional
paid-in capital
|
47,422,624
|
47,258,182
|
|||||
Retained
earnings
|
14,803,968
|
14,031,500
|
|||||
Less
treasury stock, at cost; 2,303,492 shares at
|
|||||||
March
31, 2007 and June 30, 2006, respectively
|
(20,731,428
|
)
|
(20,731,428
|
)
|
|||
Total
stockholders' equity
|
41,597,035
|
40,659,810
|
|||||
Total
liabilities and stockholders' equity
|
$
|
49,688,182
|
$
|
49,330,446
|
Nine
months ended
|
|||||||
March
31,
|
|||||||
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
772,468
|
$
|
1,019,252
|
|||
Adjustments
to reconcile net income to net
|
|||||||
cash
provided by operating activities:
|
|||||||
Depreciation
and amortization
|
922,901
|
865,386
|
|||||
Stock
based compensation
|
55,243
|
55,064
|
|||||
Provision
for (benefit from) doubtful accounts
|
(31,882
|
)
|
95,164
|
||||
Deferred
income taxes
|
(19,237
|
)
|
(22,408
|
)
|
|||
Changes
in operating assets and liabilities:
|
|||||||
Short-term
investments
|
-
|
(350,000
|
)
|
||||
Accounts
receivable
|
680,173
|
(676,682
|
)
|
||||
Inventories
|
(1,295,028
|
)
|
(946,423
|
)
|
|||
Other
current assets
|
(144,900
|
)
|
(163,113
|
)
|
|||
Accounts
payable
|
185,355
|
1,255,775
|
|||||
Deferred
revenue
|
(348,750
|
)
|
(348,750
|
)
|
|||
Other
accrued liabilities
|
(396,857
|
)
|
291,361
|
||||
Net
cash provided by operating activities
|
379,486
|
1,074,626
|
|||||
Cash
flows from investing activities:
|
|||||||
Capital
expenditures
|
(471,049
|
)
|
(843,341
|
)
|
|||
Net
cash used in investing activities
|
(471,049
|
)
|
(843,341
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Borrowings
under revolving credit agreement
|
-
|
346,000
|
|||||
Payments
under revolving credit agreement
|
-
|
(265,000
|
)
|
||||
Stock
options exercised
|
81,090
|
64,125
|
|||||
Excess
tax benefit from exercise of stock options
|
28,424
|
26,340
|
|||||
Net
cash provided by financing activities
|
109,514
|
171,465
|
|||||
Net
increase in cash and equivalents
|
17,951
|
402,750
|
|||||
Cash
and cash equivalents at beginning of period
|
2,696,324
|
317,775
|
|||||
Cash
and cash equivalents at end of period
|
$
|
2,714,275
|
$
|
720,525
|
March
31, 2007
|
June
30, 2006
|
||||||
Work-in
progress
|
$
|
1,059,385
|
$
|
715,643
|
|||
Raw
materials and component parts
|
8,057,186
|
8,820,622
|
|||||
Finished
goods
|
4,679,272
|
3,123,435
|
|||||
Reserve
for obsolete and excess
|
|||||||
inventory
|
(1,009,510
|
)
|
(1,168,395
|
)
|
|||
$
|
12,786,333
|
$
|
11,491,305
|
Three
Months ended
|
Nine
Months ended
|
||||||||||||
March
31,
|
March
31,
|
||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
Beginning
balance
|
$
|
1,705,000
|
$
|
1,240,000
|
$
|
1,937,500
|
$
|
1,472,500
|
|||||
Payment
Received from
|
|||||||||||||
Abbott
Laboratories
|
-
|
-
|
-
|
-
|
|||||||||
Revenue
recognized
|
|||||||||||||
as
net sales
|
(116,250
|
)
|
(116,250
|
)
|
(348,750
|
)
|
(348,750
|
)
|
|||||
|
1,588,750
|
1,123,750
|
1,588,750
|
1,123,750
|
|||||||||
Less
- Current portion
|
|||||||||||||
of
deferred revenue
|
(465,000
|
)
|
(465,000
|
)
|
(465,000
|
)
|
(465,000
|
)
|
|||||
$
|
1,123,750
|
$
|
658,750
|
$
|
1,123,750
|
$
|
658,750
|
ALLIED
HEALTHCARE PRODUCTS, INC.
|
|
/s/
Daniel C. Dunn
|
|
Daniel
C. Dunn
|
|
Chief
Financial Officer
|
|
Date:
May 2, 2007
|
ALLIED
HEALTHCARE PRODUCTS, INC.
|
EXECUTIVE
|
|
By:
|
_________________________
|
__________________________
|
Name:
|
_________________________
|
Earl
Refsland
|
Title
|
_________________________
|
Allied
Healthcare Products, Inc.
|
|
____________________________
|
|
Executive
|
|
By:_______________________
|
|
Earl
Refsland, President
|
/s/
EARL R. REFSLAND
|
|
Earl.
R. Refsland
|
|
President
& Chief Executive Officer
|
/s/
DANIEL C. DUNN
|
|
Daniel
C. Dunn
|
|
Vice
President, Chief Financial Officer &
Secretary
|
/s/
EARL R. REFSLAND
|
|
Earl.
R. Refsland
|
|
President
& Chief Executive
Officer
|
/s/
DANIEL C. DUNN
|
|
Daniel
C. Dunn
|
|
Vice
President, Chief Financial Officer &
Secretary
|
Three
months ended,
|
Nine
months ended,
|
||||||||||||
March
31,
|
March
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
sales
|
$
|
13,703,784
|
$
|
14,756,600
|
$
|
42,455,176
|
$
|
43,082,670
|
|||||
Cost
of sales
|
10,251,494
|
11,352,190
|
31,966,606
|
32,130,802
|
|||||||||
Gross
profit
|
3,452,290
|
3,404,410
|
10,488,570
|
10,951,868
|
|||||||||
Selling
General and administrative expenses
|
3,003,928
|
2,992,446
|
9,286,343
|
9,194,558
|
|||||||||
Income
from operations
|
448,362
|
411,964
|
1,202,227
|
1,757,310
|
|||||||||
Interest
income
|
(25,844
|
)
|
(9,311
|
)
|
(82,071
|
)
|
(35,986
|
)
|
|||||
Other,
net
|
9,328
|
8,861
|
(34,551
|
)
|
28,854
|
||||||||
(16,516
|
)
|
(450
|
)
|
(116,622
|
)
|
(7,132
|
)
|
||||||
Income
before provision
|
|||||||||||||
for
income taxes
|
464,878
|
412,414
|
1,318,849
|
1,764,442
|
|||||||||
Provision
for income taxes
|
187,198
|
176,257
|
546,381
|
745,190
|
|||||||||
Net
income
|
$
|
277,680
|
$
|
236,157
|
$
|
772,468
|
$
|
1,019,252
|
|||||
Net
income per share - Basic
|
$
|
0.04
|
$
|
0.03
|
$
|
0.10
|
$
|
0.13
|
|||||
Net
income per share - Diluted
|
$
|
0.03
|
$
|
0.03
|
$
|
0.10
|
$
|
0.13
|
|||||
Weighted
average common shares
|
|||||||||||||
Outstanding
- Basic
|
7,883,577
|
7,849,910
|
7,873,460
|
7,837,132
|
|||||||||
Weighted
average common shares
|
|||||||||||||
Outstanding
- Diluted
|
8,077,696
|
8,068,817
|
8,071,832
|
8,057,166
|
March
31, 2007
|
June
30, 2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
2,714,275
|
$
|
2,696,324
|
|||
Accounts
receivable, net of allowances
|
|||||||
of
$415,000 and $430,000, respectively
|
6,781,064
|
7,429,355
|
|||||
Inventories,
net
|
12,786,333
|
11,491,305
|
|||||
Other
current assets
|
369,753
|
224,853
|
|||||
Total
current assets
|
22,651,425
|
21,841,837
|
|||||
Property,
plant and equipment, net
|
10,805,016
|
11,252,934
|
|||||
Goodwill
|
15,979,830
|
15,979,830
|
|||||
Other
assets, net
|
251,911
|
255,845
|
|||||
Total
assets
|
$
|
49,688,182
|
$
|
49,330,446
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
3,394,054
|
$
|
3,208,699
|
|||
Deferred
income taxes
|
670,705
|
689,942
|
|||||
Deferred
revenue
|
465,000
|
465,000
|
|||||
Other
accrued liabilities
|
2,437,638
|
2,834,495
|
|||||
Total
current liabilities
|
6,967,397
|
7,198,136
|
|||||
Deferred
revenue
|
1,123,750
|
1,472,500
|
|||||
Commitments
and contingencies
|
|||||||
Stockholders'
equity:
|
|||||||
Preferred
stock; $0.01 par value; 1,500,000 shares
|
|||||||
authorized;
no shares issued and outstanding
|
-
|
-
|
|||||
Series
A preferred stock; $0.01 par value; 200,000 shares
|
|||||||
authorized;
no shares issued and outstanding
|
-
|
-
|
|||||
Common
stock; $0.01 par value; 30,000,000 shares
|
|||||||
authorized;
10,187,069 shares issued at March 31, 2007
|
|||||||
and
10,155,569 shares issued at June 30, 2006; 7,883,577
|
|||||||
outstanding
at March 31, 2007 and 7,852,077
|
|||||||
shares
outstanding June 30, 2006, respectively
|
101,871
|
101,556
|
|||||
Additional
paid-in capital
|
47,422,624
|
47,258,182
|
|||||
Retained
earnings
|
14,803,968
|
14,031,500
|
|||||
Less
treasury stock, at cost; 2,303,492 shares at
|
|||||||
March 31, 2007 and June 30, 2006, respectively
|
(20,731,428
|
)
|
(20,731,428
|
)
|
|||
Total
stockholders' equity
|
41,597,035
|
40,659,810
|
|||||
Total
liabilities and stockholders' equity
|
$
|
49,688,182
|
$
|
49,330,446
|