Allied Heathcare Results
Allied Healthcare International Inc, a leading provider of flexible healthcare staffing services in the United Kingdom, but listed on the US NASDAQ has issued its financial results for its fiscal 2009 first quarter.
To provide investors with an increased understanding of the Companys staffing business, as in previous quarters, Allied is providing a breakdown of its revenues and gross profits at constant exchange rates. In addition, as the Companys revenues and gross profits are generated in the United Kingdom, an analysis is included, within the Management Discussion below, of the last five quarters revenues and gross profits in pounds sterling to enable investors to fully understand the underlying trends over these periods without the effects of currency exchange rates. As noted in the reported numbers, recent fluctuations in foreign exchange rates have significantly impacted the Companys current period results.
For the first quarter of fiscal 2009, at constant exchange rates, revenues increased by $5.1 million, or 6.8%, to $79.8 million, compared with $74.8 million reported during the same period in fiscal 2008. Contributing to the increase in revenues was Allieds Homecare staffing which grew by 11.9% to $62.6 million. Nursing Home staffing revenues declined by 16.1% to $9.8 million. Hospital staffing increased by 4.0% to $7.4 million. After the unfavorable impact of currency exchange of $18.3 million, revenues decreased to $61.5 million.
At constant exchange rates, total gross profit for the first fiscal quarter increased 8.9% to $24.4 million, compared with $22.4 million reported for the comparable quarter in fiscal 2008. Gross profit margin for the first quarter increased to 30.6% from 30.0% for the comparable prior period. Foreign exchange decreased gross profit by $5.6 million to $18.8 million for the quarter.
At constant exchange rates, SG&A for the first fiscal quarter was $20.0 million, compared with $20.2 million reported last year. On a comparable basis SG&A decreased by $0.2 million. Foreign exchange decreased costs by $4.4 million to $15.6 million for the quarter. Management notes that SG&A costs, as a percent of revenues, in the first quarter of fiscal 2009 were 25.3%, compared to 27.0% in the first quarter of fiscal 2008.
At constant exchange rates, operating income for the first quarter of fiscal 2009 increased to $4.4 million, compared to operating income of $2.2 million reported during the 2008 first fiscal quarter. Foreign exchange decreased operating income by $1.1 million to $3.3 million for the quarter.
Net income for the first quarter of fiscal 2009 increased to $2.5 million, compared to net income of $1.7 million reported during the 2008 first fiscal quarter. Diluted earnings per share was 5.4 Cents for the quarter, compared to diluted earnings per share of 3.7 Cents last year.
At December 31, 2008, and September 30, 2008, Allieds cash balance was $22.1 million (15.2 million) and $26.2 million (14.4 million), respectively. While the Companys underlying cash balance has increased by 0.8m, its dollar reported cash balance is lower due to the decline in the exchange rates.
For the first fiscal quarter of 2009, depreciation and amortization was $0.9 million and capital expenditures were $0.7 million. Day Sales Outstanding were 27 days at both December 31, 2008, and 2007.