Allied Healthcare International Inc. Reports Fiscal 2011 Third Quarter Results
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 08/04/11 -- Allied Healthcare International Inc. (NASDAQ: AHCI), a leading homecare provider of health and social care in the United Kingdom and Ireland, today issued financial results for its fiscal 2011 third quarter ended June 30, 2011.
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 its principal operations are denominated in pounds sterling but reported in United States dollars, an analysis is included of the last seven quarters' revenues, gross profit, SG&A and operating income in pounds sterling to enable investors to fully understand the underlying trends over these periods without the effects of currency exchange rates. (See the Historical Revenues, Gross Profit, SG&A and Operating Income table at the end of this press release.)
For the third quarter of fiscal 2011, total revenue increased 4.2% to $68.5 million, compared with $65.7 million reported during the same period in fiscal 2010. Allied's Homecare revenue grew 8.4% to $62.2 million. Acquisitions contributed 9.5%, or $5.4 million, to the Homecare revenue growth. Nursing Homes revenue declined 37.0% to $2.5 million and Hospitals revenue declined 12.7% to $3.8 million. After the favorable impact of currency exchange of $6.2 million, total revenue increased 13.6% year over year to the reported $74.7 million.
Total gross profit for the third fiscal quarter increased 6.1% to $20.9 million, from $19.8 million for the comparable quarter in fiscal 2010. Homecare gross profit grew 9.8% to $19.1 million. Acquisitions contributed $1.7 million, or 9.8%, to the growth in Homecare gross profit. Nursing Homes gross profit declined 37.4% to $0.8 million and Hospitals gross profit declined 3.1% to $1.0 million. Gross profit as a percentage of revenue was 30.6%, compared with 30.1% for the comparable prior-year period. Foreign exchange increased gross profit by $1.9 million to the reported $22.8 million for the 2011 third fiscal quarter.
SG&A for the third fiscal quarter was $17.9 million (26.1% of revenues), an increase of 4.0%, from $17.2 million (26.1% of revenues) reported last year. SG&A, excluding US corporate overhead costs and amortization costs, increased 7.3% of which acquisitions contributed 7.1%, or $1.1 million. Foreign exchange increased costs by $1.5 million to the reported $19.4 million for the 2011 third fiscal quarter.
Operating income for the third quarter of fiscal 2011 increased by 19.1% to $3.1 million from $2.6 million a year ago. Foreign exchange increased operating income by $0.3 million to the reported $3.4 million for the 2011 third fiscal quarter.
Net income attributable to Allied for the third quarter of fiscal 2011 was $2.2 million, or $0.05 per diluted share, compared with $1.6 million, or $0.04 per diluted share, reported during the 2010 third fiscal quarter.
For the nine months of fiscal 2011, total revenue increased 3.4% to $207.5 million, compared with $200.7 million reported during the same period in fiscal 2010. Allied's Homecare revenue grew 7.9% to $185.7 million. Acquisitions contributed 9.1%, or $15.7 million, to the Homecare revenue growth. Nursing Homes revenue declined 30.0% to $9.7 million and Hospitals revenue declined 18.1% to $12.1 million. After the favorable impact of currency exchange of $5.6 million, total revenue increased 6.2% year over year to the reported $213.1 million.
Total gross profit for the nine months of fiscal 2011 increased 5.7% to $64.1 million, from $60.6 million for the comparable period in fiscal 2010. Homecare gross profit grew 9.7% to $57.9 million. Acquisitions contributed $4.9 million, or 9.3%, to the growth in Homecare gross profit. Nursing Homes gross profit declined 30.5% to $3.1 million and Hospitals gross profit declined 9.5% to $3.1 million. Gross profit as a percentage of revenue was 30.9%, compared with 30.2% for the comparable prior-year period. Foreign exchange increased gross profit by $1.7 million to the reported $65.8 million for the 2011 nine month period.
SG&A for the nine months of fiscal 2011 was $54.9 million (26.5% of revenues), an increase of 8.6%, from $50.6 million (25.2% of revenues) reported last year. SG&A, excluding US corporate overhead costs and amortization costs, increased 9.5% of which acquisitions contributed 7.1%, or $3.3 million. Foreign exchange increased costs by $1.4 million to the reported $56.3 million for the 2011 nine month period.
Operating income for the nine months of fiscal 2011 decreased by 8.9% to $9.1 million from $10.0 million a year ago. Foreign exchange increased operating income by $0.3 million to the reported $9.4 million for the 2011 nine month period.
Net income attributable to Allied for the nine months of fiscal 2011 was $5.9 million, or $0.14 per diluted share, compared with $7.1 million, or $0.16 per diluted share, reported during the fiscal 2010 nine month period.
The Company ended the quarter with a very strong balance sheet. At June 30, 2011 and September 30, 2010, Allied's cash balance was $40.1 million (£25.0 million) and $39.0 million (£24.7 million), respectively, which represents an increase in the cash balance of $1.1 million (£0.3 million).
For the fiscal nine months ended June 30, 2011, depreciation and amortization was $3.7 million (£2.3 million), and capital expenditures were $3.2 million (£2.0 million). Days Sales Outstanding was 27 days at June 30, 2011 (42 days including unbilled accounts receivables) and 26 days at September 30, 2010 (43 days including unbilled account receivables).
Sandy Young, Chief Executive Officer of Allied, commented, "Our third quarter fiscal 2011 revenue increased 4.2% year over year at constant exchange rates, and we have seen a small increase in organic Homecare revenue from the previous quarter. Our Homecare revenue grew by 8.4%, with acquisitions contributing 9.5% to our top line, while organic revenue declined 1.1%. This is a very favorable outcome, given figures quoted within the UK which suggest Local Authority reductions in spending of between 5% and 8%.
"Our gross profit increase of 6.1% year over year at constant exchange rates and our gross margin of 30.6% are very consistent with prior periods. While acquisitions contributed all of the growth, there was no organic decline in Homecare gross profit. SG&A, at constant exchange rates, grew by 4.0%, even after the additional overhead spend of $1.1 million related to our recent acquisitions."
"During the third quarter we have had eight small contract wins and much more significant wins in Hampshire and Oxford. In Hampshire, an area in South West England, we have won a place on a framework contract in the twelve areas we tendered for. The hours for this are not guaranteed but could certainly generate opportunities of up to 5,000 hours of additional care per week. In Oxford, the County Council has decided to outsource more of their service provision, and we have won hours in seven different areas in Oxfordshire that could generate up to 3,200 additional hours per week.
"In June the contract we held with Manchester Local Authority reached its normal termination date, and we decided not to renew. This has been a loss making contract, which was first entered into in November 2007, and during fiscal year 2011 it generated annualized revenues of £1.0 million. Our staff has transferred to the new provider, and we were fortunate to win a new contract in Tameside, part of Manchester, which we expect to make a positive contribution to our future growth."
"During the first week of May, we completed the acquisition of BiJu Limited, a supplier of diverse homecare services to clients throughout Lancashire. The transaction expands our geographical footprint in the North West of England and provides Allied with additional growth opportunities across Lancashire."
"As reported last week, we have agreed to pay a deferred consideration to Sue Ryder, a leading charity, who has decided to transfer its social care business to us. The business generated revenue of over £5 million in the last 12 months."
"We are still seeing some tensions with other providers in the UK given the government's spending restrictions, but we consider that our position as a leading health and social care provider is being maintained."
Dr. Jeffrey Peris, Chairman of Allied, commented, "Considering the current economic environment and the UK government's proposed legislation changes, the Board is pleased with management's efforts to mitigate these challenges."
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: . 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 376287. A webcast replay will also be available and archived on the Company's website for ninety days.
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, US corporate overhead costs and amortization 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.
Allied Healthcare International Inc. is a leading homecare provider of health and social care in the United Kingdom and Ireland. Allied operates a community-based network of approximately 120 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. For more news and information please visit: .
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; the introduction by the U.K. government of individualized budgets and direct payments for service users, which could lead our hospital, healthcare facility and other customers to bypass our services and which might decrease our revenues and margins; 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.
Sandy Young
Chief Executive Officer
Paul Weston
Chief Financial Officer
+44 (0) 1785 810600
Or
ICR, LLC
Sherry Bertner
Managing Director
+1 646 277 1247
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Datum: 04.08.2011 - 05:00 Uhr
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