SOURCE: Allied Healthcare International Inc.
Fiscal 2010 Revenues Increased 8.0%, at Constant Exchange Rates; Fiscal 2010 Operating Income Increased 7.7%, at Constant Exchange Rates & Excluding Acquisition Costs
NEW YORK, NY–(Marketwire – December 7, 2010) – Allied Healthcare International Inc. (
United Kingdom, today issued financial results for its fiscal 2010 fourth
quarter and year-ended September 30, 2010.
To provide investors with a better understanding of the Company’s
performance and because of fluctuations in foreign exchange rates, Allied
is discussing its revenues, gross profit, selling, general & administrative
(SG&A) expenses and operating income at constant exchange rates, which are
calculated using the comparable prior period weighted average exchange
rates. In addition, as the Company’s revenues and gross profit from our
principal operations are denominated in pounds sterling but reported in
United States dollars, an analysis, which is contained in the Historical
Revenues and Gross Profit table at the end of this press release, is
included of the last eight quarters’ revenues and gross profit in pounds
sterling to enable investors to fully understand the underlying trends over
these periods without the effects of currency exchange rates.
Fiscal Fourth Quarter Results
Three Months Ended
September 30, Three Months Ended September 30,
----------------------- -------------------------------------
% %
2010 2009 Change 2010 % 2009 % Change
-------- -------- ------ ------- ----- -------- ----- ------
Revenues Gross Profit
------------------------ -------------------------------------
(Amounts in
thousands)
Homecare $64,244 $ 58,388 10.0% $19,934 31.0% $ 17,893 30.6% 11.4%
Nursing
Homes 4,998 6,568 -23.9% 1,641 32.8% 2,070 31.5% -20.7%
Hospitals 5,120 4,889 4.7% 1,326 25.9% 1,233 25.2% 7.5%
------- -------- ----- ------- -------- -----
Total, at
constant
exchange
rates 74,362 69,845 6.5% 22,901 30.8% 21,196 30.3% 8.0%
Effect of
foreign
exchange (3,945) - -5.6% (1,189) - -5.6%
------- -------- ----- ------- -------- -----
Total, as
reported $70,417 $ 69,845 0.8% $21,712 $ 21,196 2.4%
======= ======== ===== ------- -------- -----
SG&A
-------------------------------------
SG&A, at
constant
exchange
rates &
excluding
acquisition
costs $19,033 $ 17,010 11.9%
Acquisition
costs, at
constant
exchange
rates 157 - 0.9%
------- -------- -----
SG&A, at
constant
exchange
rates 19,190 17,010 12.8%
Effect of
foreign
exchange (946) - -5.6%
------- -------- -----
Total SG&A,
as reported $18,244 $ 17,010 7.3%
------- -------- -----
Operating Income
-------------------------------------
Operating
income, at
constant
exchange
rates &
excluding
acquisition
cost $ 3,868 $ 4,186 -7.6%
Acquisition
costs, at
constant
exchange
rates (157) - -3.8%
------- -------- -----
Operating
income, at
constant
exchange
rates 3,711 4,186 -11.3%
Effect of
foreign
exchange (243) - -5.8%
------- -------- -----
Operating
income, as
reported $ 3,468 $ 4,186 -17.2%
======= ======== =====
Net Income Attributable to Allied
-------------------------------------
Basic Basic
and and
Diluted Diluted
EPS EPS
-------------------------------------
Income from continuing
operations attributable
to Allied, excluding
acquisition costs $ 2,858 $0.07 $ 2,937 $0.07
Acquisition Costs (146) -0.01 - -
------- ----- -------- -----
Income from continuing
operations attributable
to Allied $ 2,712 $0.06 $ 2,937 $0.07
======= ===== ======== =====
For the fourth quarter of fiscal 2010, total revenue increased 6.5%, to
$74.4 million, compared with $69.8 million reported during the same period
in fiscal 2009. Allied’s Homecare revenue grew 10.0% to $64.2 million. The
acquisition completed in our third fiscal quarter contributed 7.5%, or $4.4
million, to the increase in Homecare revenues. Nursing Homes revenue
declined 23.9% to $5.0 million and Hospitals revenue increased 4.7% to $5.1
million. After the unfavorable impact of currency exchange of $3.9 million,
revenue increased 0.8% year over year to the reported $70.4 million.
Total gross profit for the fourth fiscal quarter increased 8.0% to $22.9
million, from $21.2 million for the comparable quarter in fiscal 2009.
Homecare gross profit grew 11.4% to $19.9 million. The acquisition
completed in our third fiscal quarter contributed 7.6%, or $1.4 million, to
the increase in Homecare gross profit. Nursing Homes gross profit declined
20.7% to $1.7 million and Hospitals gross profit increased 7.5% to $1.3
million. Gross profit as a percentage of revenue was 30.8%, compared with
30.3% for the comparable prior-year period. Foreign exchange decreased
gross profit by $1.2 million to the reported $21.7 million for the 2010
fourth fiscal quarter.
SG&A, excluding acquisition costs, for the fourth fiscal quarter was $19.0
million (25.6% of revenues), an increase of 11.9%, from $17.0 million
(24.4% of revenues) reported last year. The acquisition completed in our
third fiscal quarter contributed 6.4%, or $1.0 million, to the increase in
SG&A. The Company also incurred acquisition costs of $0.1 million.
Foreign exchange decreased costs by $0.9 million to the reported $18.2
million for the 2010 fourth fiscal quarter.
Operating income, before acquisition costs, for the fourth quarter of
fiscal 2010 decreased by 7.6% to $3.9 million from $4.2 million a year ago.
Acquisition costs decreased operating income by $0.1 million. Foreign
exchange decreased operating income by $0.3 million to the reported $3.5
million for the 2010 fourth fiscal quarter.
Income from continuing operations attributable to Allied, excluding
acquisition costs, for the fourth quarter of fiscal 2010 was $2.9 million,
or $0.07 per diluted share. Income from continuing operations attributable
to Allied for the fourth quarter of fiscal 2010 was $2.7 million, or $0.06
per diluted share, compared with $2.9 million, $0.07 per diluted share,
reported during the 2009 fourth fiscal quarter.
Fiscal 2010 Full Year Results
Year Ended September 30, Year Ended September 30,
------------------------ -------------------------------------
% %
2010 2009 Change 2010 % 2009 % Change
-------- -------- ------ ------- ----- -------- ----- ------
Revenue Gross Profit
------------------------ -------------------------------------
(Amounts in
thousands)
Homecare $231,718 $203,885 13.7% $71,314 30.8% $ 63,176 31.0% 12.9%
Nursing
Homes 18,469 25,863 -28.6% 5,971 32.3% 8,097 31.3% -26.3%
Hospitals 19,571 20,062 -2.4% 4,618 23.6% 5,075 25.3% -9.0%
-------- -------- ----- ------- -------- ------
Total, at
constant
exchange
rates 269,758 249,810 8.0% 81,903 30.4% 76,348 30.6% 7.3%
Effect of
foreign
exchange 1,321 - 0.5% 402 - 0.5%
-------- -------- ----- ------- -------- ------
Total, as
reported $271,079 $249,810 8.5% $82,305 $ 76,348 7.8%
======== ======== ===== ------- -------- ------
SG&A
-------------------------------------
SG&A, at
constant
exchange
rates &
excluding
acquisition
costs $67,776 $ 63,234 7.2%
Acquisition
costs, at
constant
exchange
rates 752 - 1.2%
------- -------- -----
SG&A, at
constant
exchange
rates 68,528 63,234 8.4%
Effect of
foreign
exchange 318 - 0.5%
------- -------- -----
Total SG&A,
as reported $68,846 $ 63,234 8.9%
------- -------- -----
Operating Income
-------------------------------------
Operating
income, at
constant
exchange
rates &
excluding
acquisition
cost $14,127 $ 13,114 7.7%
Acquisition
costs, at
constant
exchange
rates (752) - -5.7%
------- -------- -----
Operating
income, at
constant
exchange
rates 13,375 13,114 2.0%
Effect of
foreign
exchange 84 - 0.6%
------- -------- -----
Operating
income, as
reported $13,459 $ 13,114 2.6%
======= ======== =====
Net Income Attributable to Allied
-------------------------------------
Basic Basic
and and
Diluted Diluted
EPS EPS
-------------------------------------
Income from continuing
operations attributable to
Allied, excluding
acquisition cost $10,624 $0.24 $ 9,936 $0.22
Acquisition costs (756) -0.02 - -
------- ----- -------- -----
Income from continuing
operations attributable to
Allied $ 9,868 $0.22 $ 9,936 $0.22
======= ===== ======== =====
For the year ended September 30, 2010 total revenue increased 8.0%, to
$269.8 million, compared with $249.8 million for the same period in fiscal
2009. Allied’s Homecare revenue grew 13.7% to $231.7 million. The
acquisition completed in the third quarter of fiscal 2010 contributed 3.2%,
or $6.5 million, to the increase in Homecare revenues. Nursing Homes
revenue declined 28.6% to $18.5 million and Hospitals revenue declined 2.4%
to $19.6 million. After the favorable impact of currency exchange of $1.3
million, revenue increased 8.5% year over year to the reported $271.1
million for fiscal 2010.
Total gross profit for the year ended September 30, 2010 increased 7.3% to
$81.9 million, from $76.3 million for the comparable period in fiscal 2009.
Homecare gross profit grew 12.9% to $71.3 million. The acquisition
completed in our third fiscal quarter contributed 3.1%, or $2.0 million, to
the increase in Homecare gross profit. Nursing Homes gross profit declined
26.3% to $6.0 million and Hospitals gross profit declined 9.0% to $4.6
million. Gross profit as a percentage of revenue was 30.4%, compared with
30.6% for the comparable prior-year period. Foreign exchange increased
gross profit by $0.4 million to the reported $82.3 million for fiscal 2010.
SG&A, excluding acquisition costs, for the year ended September 30, 2010
was $67.8 million (25.1% of revenues), an increase of 7.2%, from $63.2
million (25.3% of revenues) reported last year. The acquisition completed
in our third fiscal quarter contributed 2.4%, or $1.5 million, to the
increase in SG&A. We also incurred acquisition costs of $0.7 million.
Foreign exchange increased costs by $0.3 million to the reported $68.8
million for fiscal 2010.
Operating income, before acquisition costs, for the year ended September
30, 2010 increased by 7.7% to $14.1 million from $13.1 million a year ago.
Acquisition costs decreased operating income by $0.7 million. Foreign
exchange increased operating income by $0.1 million to the reported $13.5
million for fiscal 2010.
Income from continuing operations attributable to Allied, excluding
acquisition costs, for the year ended September 30, 2010 was $10.6 million,
or $0.24 per diluted share. Income from continuing operations attributable
to Allied for the year ended September 30, 2010 was $9.9 million, or $0.22
per diluted share, compared with $9.9 million, $0.22 per diluted share,
reported during fiscal 2009.
At September 30, 2010 and September 30, 2009, Allied cash balance was $39.0
million (£24.7 million) and $35.3 million (£22.2 million), respectively,
represent an underlying increase in the cash balance of $3.7 million (£2.5
million).
For the year ended September 30, 2010, depreciation and amortization was
$4.4 million (£2.8 million), capital expenditures were $2.8 million (£1.8
million). Days Sales Outstanding was 26 days at September 30, 2010 (43 days
including unbilled account receivables), and 25 days at September 30, 2009
(40 days including unbilled account receivables).
Management Discussion
Sandy Young, Chief Executive Officer of Allied, commented, “Allied’s
financial performance during the fourth quarter reflects tightening in the
U.K. government’s spending and challenging macroeconomic factors. The
acquisition of Homecare business in Ireland contributed $4.4 million to
Allied’s top line during the quarter, resulting in 10% growth of our
Homecare revenue compared to the fourth quarter a year ago. Excluding the
acquisition, our Homecare revenue grew 2.5% year over year, with an 11.5%
increase in continuing care.
“In order to reduce the U.K. government’s fiscal deficit, following its
Comprehensive Spending Review, HM Treasury announced in October 2010 its
plans to achieve a significant reduction in public spending. While the U.K.
government has stated that it will increase spending in the National Health
Service over the next four years to support healthcare, we note the
increase will be partially offset as the NHS have increased obligations and
cost of treatments going forward due to the growing population and demand
for better healthcare. However, the Comprehensive Spending Review will
also allocate £2 billion a year of additional funding by 2014-15 to support
social care. Combined with a program of reform and efficiency savings,
such as greater use of personal budgets, the U.K. government believes this
should mean local authorities should be able to improve outcomes and should
not need to reduce eligibility for services.
“The Comprehensive Spending Review also announced significant cuts in
funding to local authorities, the main providers of social care, and other
public bodies, which are a key source of revenue to Allied. Individual
local authorities will decide which of their back office costs and front
line services to allocate savings to.
“Based on the current and anticipated changes in the U.K. government’s
policies, we believe that it is possible that demand will be flat on a
consecutive basis for the near term. However, due to Allied’s favorable
position in the industry, strong reputation and innovative business
approach, we expect to return to growth in the mid-term.
“Allied is in a good position to benefit from joint commissioning of health
and social care. For example:
-- Within our homecare revenue, we have over $159 million (£102 million) in social care revenue, $57.7 million (£37 million) in continuing care revenue and $13.3 million (£8.5 million) in learning disability revenue; -- We are introducing new Primary Care Trust services this year. They will include our night roaming service, our end of life services and other specialist health services; -- We are winning extra care contracts, a potentially new revenue stream; -- We are looking at new homecare solutions, including Telecare/Telehealth; and -- We are extending the boundaries of the care and supported living we provide to include children's services and services for drug and alcohol abuse. Some of these require rental housing to be part of the package.
“Although we anticipate that there will be continuing tension in spending,
we believe that councils and PCTs are likely to:
-- Outsource more than they do at present, particularly in Scotland, Wales and Ireland; -- Have the ability to get incremental savings by directing greater volumes to providers of scale like Allied; -- Keep individuals out of hospital and in their own homes; -- Favor lower cost homecare over more expensive residential care; -- Pursue new and quite entrepreneurial services around the end of life pathway; and -- Still need to provide for the increasing numbers of elderly each year.
“So today, Allied can claim to be one of the leading providers of health
and social care in the U.K., and we continue to expand our market
footprint. During the fourth quarter and in subsequent months we won a
number of domiciliary care framework contracts, the two largest being:
-- East Sussex County Council -- Up to 2,000 hours per week for four years, which commenced November 2010. -- Cardiff City Council -- Up to 2,000 hours per week for three years, commencing April 2011.
“In addition we have won a community homecare contract with Leeds City
Council and NHS, and a contract for nursing supplied with Welsh Health
Supply. We have also seen a number of positive wins in continuing care from
framework agreements, including Doncaster and an additional opportunity in
Sheffield.
“In a consistent pursuit of improving and expanding our value proposition,
we continued to make investments in our operational infrastructure. To
date, 55 of our branches are live on Coldharbour, and the software rollout
is continuing according to plan. Our customer complaints and risk
management system, which was built in house, is currently under testing and
is planned to go live at the beginning of calendar 2011. Additionally, we
are actively working on several other projects, such as call monitoring,
carer retention and the centralization of our on-call out of hours service.
We also piloted our recruitment screening and compliance department project
in Wales and have received very positive feedback. Our recruitment pipeline
tracker is undergoing design changes for full rollout to the business in
the near future.
“In summary, Allied is well positioned to capitalize on the growing elderly
population, shift from residential to homecare services and the move
towards joint commissioning of health and social care,” concluded Mr.
Young.
Dr. Jeffrey Peris, Chairman of Allied, commented, “The Board remains
confident in the opportunities for growth through management actions on
innovative initiatives. Based on our identified strategies for growth
being successfully implemented, our financial track record over the last
few years, our focus and results in improving operating efficiencies, and
the recruitment and retention of talented people — we continue to strive
to enhance shareholder value.”
Conference Call Information: December 7, 2010 at 10:00 AM Eastern Time /
3:00 PM UK Time
Allied will host a call and webcast today at 10:00 AM Eastern Time / 3:00
PM UK Time, to discuss its financial results. To join the call, please dial
(877) 407-8031 for domestic participants and (201) 689-8031 for
international participants. Participants may also access a live webcast of
the conference call through the “Investors” section of Allied Healthcare’s
Website: www.alliedhealthcare.com. A telephone replay will be available for
two weeks following the call by dialing (877) 660-6853 for domestic
participants and (201) 612-7415 for international participants. When
prompted, please enter account number 286 and conference ID number 360782.
A webcast replay will also be available and archived on the Company’s
website for ninety days.
Reconciliation of GAAP and Non-GAAP Data
In addition to disclosing results of operations that are determined in
accordance with 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 foreign
exchange effects and acquisition costs. 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.
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
included in this press release.
ABOUT ALLIED HEALTHCARE INTERNATIONAL INC.
Allied Healthcare International Inc. is a leading provider of flexible
healthcare staffing services in the United Kingdom. Allied operates a
community-based network of approximately 115 branches with the capacity to
provide carers (known as home health aides in the U.S.), nurses, and
specialized medical personnel to locations covering approximately 90% of
the U.K. population. Allied meets the needs of private patients, community
care, nursing and care homes, and hospitals. For more news and information
please visit: www.alliedhealthcare.com.
FORWARD-LOOKING STATEMENTS
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:
general economic and market conditions; the effect of the change in the
U.K. government and the impact of proposed changes in recent policy making
related to health and social care that may reduce revenue and
profitability; the impact of the HM Treasury Comprehensive Spending Review
2010 setting out the U.K. government’s plans to reduce spending; Allied’s
ability to continue to recruit and retain flexible healthcare staff;
Allied’s ability to enter into contracts with local government social
services departments, NHS Trusts, hospitals, other healthcare facility
clients and private clients on terms attractive to Allied; the general
level of demand and spending for healthcare and social care; dependence on
the proper functioning of Allied’s information systems; the effect of
existing or future government regulation of the healthcare and social care
industry, and Allied’s ability to comply with these regulations; the impact
of medical malpractice and other claims asserted against Allied; the effect
of regulatory change that may apply to Allied and that may increase costs
and reduce revenues and profitability; the effect of existing or future
government regulation in relation to employment and agency workers’ rights
and benefits, including changes to National Insurance rates and pension
provision; Allied’s ability to use net operating loss carry forwards to
offset net income; the effect that fluctuations in foreign currency
exchange rates may have on our dollar-denominated results of operations;
and the impairment of goodwill, of which Allied 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, all quarterly reports on Form 10-Q and any current
reports on Form 8-K filed since the date of the last Form 10-K. 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended Year Ended Year Ended
September September September
30, 2010 30, 2009 30, 2008
---------- ---------- ---------
Revenues:
Net patient services $ 271,079 $ 249,810 $ 298,577
---------- ---------- ---------
Cost of revenues:
Patient services 188,774 173,462 208,192
---------- ---------- ---------
Gross profit 82,305 76,348 90,385
Selling, general and administrative
expenses 68,846 63,234 77,655
---------- ---------- ---------
Operating income 13,459 13,114 12,730
Interest income 361 537 935
Interest expense (30) (110) (542)
Foreign exchange loss (210) (197) (586)
---------- ---------- ---------
Income before income taxes
and discontinued operations 13,580 13,344 12,537
Provision for income taxes 3,524 3,408 3,751
---------- ---------- ---------
Income from continuing
operations 10,056 9,936 8,786
---------- ---------- ---------
Discontinued operations:
Income from discontinued operations,
net of taxes - 367 -
---------- ---------- ---------
Net income 10,056 10,303 8,786
Less: Net income attributable to
noncontrolling interest (188) - -
---------- ---------- ---------
Net income attributable to Allied
Healthcare International Inc. $ 9,868 $ 10,303 $ 8,786
========== ========== =========
Amounts attributable to Allied
Healthcare International Inc.:
Income from continuing
operations, net of tax $ 9,868 $ 9,936 $ 8,786
Discontinued operations,
net of tax - 367 -
---------- ---------- ---------
Net income $ 9,868 $ 10,303 $ 8,786
========== ========== =========
Basic earnings per share - attributable
to Allied Healthcare International Inc.
common shareholders
Income from continuing
operations $ 0.22 $ 0.22 $ 0.20
Income from discontinued
operations - 0.01 -
---------- ---------- ---------
Net income attributable to Allied
Healthcare International Inc. common
shareholders $ 0.22 $ 0.23 $ 0.20
========== ========== =========
Diluted earnings per share - attributable
to Allied Healthcare International Inc.
common shareholders
Income from continuing
operations $ 0.22 $ 0.22 $ 0.19
Income from discontinued
operations - 0.01 -
---------- ---------- ---------
Net income attributable to Allied
Healthcare International Inc. common
shareholders $ 0.22 $ 0.23 $ 0.19
========== ========== =========
Weighted average number of common
shares outstanding:
Basic 44,796 44,986 44,986
========== ========== =========
Diluted 45,009 45,011 45,078
========== ========== =========
ALLIED HEALTHCARE INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
September 30, September 30,
2010 2009
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 39,031 $ 35,273
Accounts receivable, less allowance for
doubtful accounts of $732 and $839,
respectively 20,092 19,594
Unbilled accounts receivable 13,393 11,572
Deferred income taxes 552 389
Prepaid expenses and other assets 1,943 1,188
------------- -------------
Total current assets 75,011 68,016
Property and equipment, net 8,924 7,756
Goodwill 102,945 95,649
Other intangible assets, net 3,501 1,646
------------- -------------
Total assets $ 190,381 $ 173,067
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,581 $ 1,186
Current maturities of debt and capital leases 614 -
Accrued expenses, inclusive of payroll and
related expenses 25,897 24,304
Taxes payable 2,310 201
------------- -------------
Total current liabilities 30,402 25,691
Long-term debt and capital leases, net of
current maturities 389 -
Deferred income taxes 1,534 103
Other long-term liabilities 308 -
------------- -------------
Total liabilities 32,633 25,794
------------- -------------
Commitments and contingencies
Noncontrolling interest 4,358 -
------------- -------------
Shareholders' equity:
Preferred stock, $.01 par value; authorized
10,000 shares, issued and outstanding - none - -
Common stock, $.01 par value; authorized
80,000 shares, issued 45,721 and 45,571
shares, respectively 457 456
Additional paid-in capital 242,478 241,555
Accumulated other comprehensive loss (15,267) (14,418)
Accumulated deficit (68,158) (78,026)
------------- -------------
159,510 149,567
Less cost of treasury stock (2,150 and 585
shares, respectively) (6,120) (2,294)
------------- -------------
Total shareholders' equity 153,390 147,273
------------- -------------
Total liabilities and shareholders'
equity $ 190,381 $ 173,067
============= =============
ALLIED HEALTHCARE INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended Year Ended Year Ended
September September September
30, 2010 30, 2009 30, 2008
---------- ---------- ----------
Cash flows from operating activities:
Net income $ 10,056 $ 10,303 $ 8,786
Adjustments to reconcile net income
to net cash provided by operating
activities:
Income from discontinued operations - (367) -
Depreciation and amortization 3,108 2,590 3,231
Amortization of intangible assets 1,324 1,252 1,634
Foreign exchange (gain) loss (43) 7 -
Increase (decrease) in provision for
allowance for doubtful accounts 30 360 (167)
Loss on sale of fixed assets 31 20 166
Stock based compensation 636 537 812
Deferred income taxes 61 117 88
Changes in operating assets and
liabilities, excluding
the effect of businesses acquired
and sold:
Decrease (increase) in accounts
receivable 82 (4,281) 1,579
(Increase) decrease in prepaid
expenses and other assets (1,544) 2,318 (3,488)
Increase (decrease) in accounts
payable and other liabilities 2,260 2,867 (3,779)
---------- ---------- ----------
Net cash provided by continuing
operations 16,001 15,723 8,862
Net cash used in discontinued
operations - - (561)
---------- ---------- ----------
Net cash provided by operating
activities 16,001 15,723 8,301
---------- ---------- ----------
Cash flows from investing activities:
Capital expenditures (2,768) (2,850) (3,344)
Acquisition of controlling interest,
net of cash acquired (5,680) - -
Proceeds from sale of business held in
escrow and designated for debt
repayment - 116 53,638
Proceeds from sale of property and
equipment 73 1 50
Payments on acquisitions payable - (1,082) -
---------- ---------- ----------
Net cash (used in) provided by
investing activities (8,375) (3,815) 50,344
---------- ---------- ----------
Cash flows from financing activities:
Repayments of debt and capital lease
obligations (152) - -
Payments under revolving loan, net - - (24,664)
Borrowings (payments) under invoice
discounting facility, net 255 - (4,458)
Principal payments on long-term debt - - (23,678)
Proceeds from sale of interest rate
swap agreements - - 617
Treasury shares acquired (3,826) - -
Stock options exercised 288 - -
---------- ---------- ----------
Net cash used in financing
activities (3,435) - (52,183)
---------- ---------- ----------
Effect of exchange rate on cash (433) (2,834) (504)
---------- ---------- ----------
Increase in cash 3,758 9,074 5,958
Cash and cash equivalents, beginning of
year 35,273 26,199 20,241
---------- ---------- ----------
Cash and cash equivalents, end of year $ 39,031 $ 35,273 $ 26,199
========== ========== ==========
Supplemental cash flow information:
Cash paid for interest $ 30 $ 405 $ 1,143
========== ========== ==========
Cash paid for income taxes, net $ 1,459 $ 1,102 $ 4,872
========== ========== ==========
Supplemental disclosure of non-cash
investing and financing activities:
Capital expenditures included in
accrued expenses and other long-term
liabilities $ 609
==========
Details of business acquired in
purchase transactions:
Fair value of assets acquired $ 12,319
==========
Liabilities assumed or incurred $ 2,715
==========
Noncontrolling interest $ 3,888
==========
Cash paid for acquisitions $ 5,716
Cash acquired 36
----------
Net cash paid for acquisitions $ 5,680
==========
ALLIED HEALTHCARE INTERNATIONAL INC.
HISTORICAL REVENUES AND GROSS PROFIT
(In thousands, except foreign exchange rate)
(Unaudited)
Revenues
Q4 Q3 Q2 Q1
2010 2010 2010 2010
------------ ------------ ------------ ------------
Homecare GBP 39,255 GBP 38,323 GBP 35,860 GBP 35,903
Nursing Homes 3,048 2,731 2,864 3,261
Hospitals 3,114 2,933 3,235 3,330
------------ ------------ ------------ ------------
Total GBP 45,417 GBP 43,987 GBP 41,959 GBP 42,494
Foreign Exchange rate 1.55 1.49 1.56 1.63
------------ ------------ ------------ ------------
$ 70,417 $ 65,748 $ 65,530 $ 69,384
============ ============ ============ ============
Gross Profit
Q4 Q3 Q2 Q1
2010 2010 2010 2010
------------ ------------ ------------ ------------
Homecare GBP 12,188 GBP 11,651 GBP 11,083 GBP 11,041
Nursing Homes 1,002 882 931 1,033
Hospitals 812 696 755 712
------------ ------------ ------------ ------------
Total GBP 14,002 GBP 13,229 GBP 12,769 GBP 12,786
Foreign Exchange rate 1.55 1.49 1.56 1.63
------------ ------------ ------------ ------------
$ 21,712 $ 19,768 $ 19,948 $ 20,877
============ ============ ============ ============
Revenues
Q4 Q3 Q2 Q1
2009 2009 2009 2009
------------ ------------ ------------ ------------
Homecare GBP 35,763 GBP 34,162 GBP 30,858 GBP 30,620
Nursing Homes 3,986 3,716 4,159 4,808
Hospitals 2,956 2,914 3,448 3,612
------------ ------------ ------------ ------------
Total GBP 42,705 GBP 40,792 GBP 38,465 GBP 39,040
Foreign Exchange rate 1.64 1.55 1.44 1.58
------------ ------------ ------------ ------------
$ 69,845 $ 63,103 $ 55,334 $ 61,528
============ ============ ============ ============
Gross Profit
Q4 Q3 Q2 Q1
2009 2009 2009 2009
------------ ------------ ------------ ------------
Homecare GBP 10,951 GBP 10,525 GBP 9,753 GBP 9,487
Nursing Homes 1,257 1,187 1,298 1,477
Hospitals 745 679 874 973
------------ ------------ ------------ ------------
Total GBP 12,953 GBP 12,391 GBP 11,925 GBP 11,937
Foreign Exchange rate 1.64 1.55 1.44 1.58
------------ ------------ ------------ ------------
$ 21,196 $ 19,173 $ 17,166 $ 18,813
============ ============ ============ ============
Sandy Young
Chief Executive Officer
Paul Weston
Chief Financial Officer
+44 (0) 17 8581 0600
Or
ICR, LLC
Sherry Bertner
Managing Director
+1 646 277 1200
[email protected]