ALLIED HEALTHCARE INTERNATIONAL INC

CIK:0000890634|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues:
Net patient services	$ 74,712	$ 65,748	$ 213,135	$ 200,662
Cost of revenues:
Patient services	51,849	45,980	147,354	140,069
Gross profit	22,863	19,768	65,781	60,593
Selling, general and administrative expenses	19,432	17,176	56,368	50,602
Operating income	3,431	2,592	9,413	9,991
Interest income	86	84	262	275
Interest expense	(21)	(10)	(64)	(10)
Foreign exchange loss	(24)	(46)	(42)	(259)
Income before income taxes	3,472	2,620	9,569	9,997
Provision for income taxes	1,056	903	3,120	2,784
Net income	2,416	1,717	6,449	7,213
Less: Net income attributable to noncontrolling interest	(221)	(57)	(487)	(57)
Net income attributable to Allied Healthcare International Inc.	$ 2,195	$ 1,660	$ 5,962	$ 7,156
Basic net income per share attributable to Allied Healthcare International Inc. common shareholders	$ 0.05	$ 0.04	$ 0.14	$ 0.16
Diluted net income per share attributable to Allied Healthcare International Inc. common shareholders	$ 0.05	$ 0.04	$ 0.14	$ 0.16
Weighted average number of common shares outstanding:
Basic	43,571	45,045	43,571	45,102
Diluted	43,837	45,269	43,843	45,363

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands	9 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net income	$ 6,449	$ 7,213
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,875	2,242
Amortization of intangible assets	778	952
Foreign exchange gain	(6)	(2)
Increase (decrease) in provision for allowance for doubtful accounts	184	(24)
Loss (gain) on sale of fixed assets	19	(2)
Stock based compensation	401	471
Deferred income taxes	49	102
Changes in operating assets and liabilities, excluding the effect of businesses acquired and sold:
Increase in accounts receivable	(863)	(335)
Decrease in prepaid expenses and other assets	909	671
(Decrease) increase in accounts payable and other liabilities	(1,936)	1,693
Net cash provided by operating activities	8,859	12,981
Cash flows from investing activities:
Capital expenditures	(3,172)	(2,428)
Acquisition of controlling interest, net of cash acquired	(60)	(5,812)
Payments for acquisitions - net of cash acquired	(2,626)
Proceeds from sale of property and equipment	8	62
Net cash used in investing activities	(5,850)	(8,178)
Cash flows from financing activities:
Repayments of debt and capital lease obligations	(2,661)	(121)
Borrowings under invoice discounting facility, net	117	248
Treasury shares acquired		(1,317)
Stock options exercised		288
Net cash used in financing activities	(2,544)	(902)
Effect of exchange rate on cash	594	(2,220)
Increase in cash	1,059	1,681
Cash and cash equivalents, beginning of year	39,031	35,273
Cash and cash equivalents, end of period	40,090	36,954
Supplemental cash flow information:
Cash paid for interest	64	10
Cash paid for income taxes, net	3,332	1,025
Supplemental disclosure of non-cash investing and financing activities:
Capital expenditures included in accrued expenses and other long-term liabilities	312	609
Details of business acquired in purchase transactions:
Fair value of assets acquired	7,921	12,430
Liabilities assumed or incurred	3,635	2,694
Noncontrolling interest		3,888
Cash paid for acquisitions	3,368	5,848
Cash acquired	682	36
Net cash paid for acquisitions	2,686	5,812
Deferred acquisition payment	$ 918

Condensed Consolidated Balance Sheets (USD $) In Thousands	Jun. 30, 2011	Sep. 30, 2010
Current assets:
Cash and cash equivalents	$ 40,090	$ 39,031
Accounts receivable, less allowance for doubtful accounts of $870 and $732, respectively	22,387	20,092
Unbilled accounts receivable	12,575	13,393
Deferred income taxes	509	552
Prepaid expenses and other assets	2,185	1,943
Total current assets	77,746	75,011
Property and equipment, net	9,042	8,924
Goodwill	109,907	102,945
Other intangible assets, net	2,771	3,501
Total assets	199,466	190,381
Current liabilities:
Accounts payable	1,491	1,581
Current maturities of debt and capital leases	682	614
Accrued expenses, inclusive of payroll and related expenses	26,698	25,897
Taxes payable	2,558	2,310
Total current liabilities	31,429	30,402
Long-term debt and capital leases, net of current maturities	172	389
Deferred income taxes	1,410	1,534
Other long-term liabilities	0	308
Total liabilities	33,011	32,633
Commitments and contingencies (Note 10)
Noncontrolling interest (Note 5)	4,902	4,358
Shareholders' equity:
Preferred stock, $.01 par value; authorized 10,000 shares, issued and outstanding - none	0	0
Common stock, $.01 par value; authorized 80,000 shares, issued 45,721 and 45,721 shares, respectively	457	457
Additional paid-in capital	242,879	242,478
Accumulated other comprehensive loss	(13,467)	(15,267)
Accumulated deficit	(62,196)	(68,158)
Subtotal shareholders' equity	167,673	159,510
Less cost of treasury stock (2,150 shares)	(6,120)	(6,120)
Total shareholders' equity	161,553	153,390
Total liabilities and shareholders' equity	$ 199,466	$ 190,381