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Allion Healthcare Reports
Third Quarter Results
ü
Net income of $1
million, or $0.06 per diluted share, including $0.02 impact of Oris
legal expenses
ü
Net sales up 6% to
$62 million
ü
A 26% increase in
adjusted EBITDA to $2.9 million
ü
Year-to-date cash
flow from operations up 50% to $5.6 million
ü
Signs exclusive five
year distribution agreement with Galea Life Sciences for Nutraplete
MELVILLE, N.Y., November 8, 2007 – Allion Healthcare, Inc. (NASDAQ:
ALLI), a national provider of specialty pharmacy and disease
management services focused on HIV/AIDS patients, today announced
financial results for the three months and nine months ended
September 30, 2007.
Third Quarter 2007
Financial Results
Allion’s net sales for the quarter were $61.8 million, up 6.0% from
$58.3 million for the third quarter of 2006.
Gross profit for the quarter
increased 7.3% to $9.0 million, or 14.5% of net sales, from $8.4
million, or 14.4% of net sales, for the third quarter of 2006.
Selling, general and administrative expenses for the quarter of $7.6
million, or 12.3% of net sales, included $644,000, or 1.0% of net
sales, of legal expenses related to the Oris litigation.
For the third quarter of
2006, selling, general and administrative expenses were $7.1
million, or 12.1% of net sales.
Net income for the third quarter of 2007 and 2006 was $1.0 million,
or $0.06 per diluted share. Net income for the third quarter of 2007
included $644,000 in pre-tax Oris litigation expenses or $0.02 per
diluted share. Earnings before interest, taxes, depreciation and
amortization (EBITDA) were $2.3 million and $2.4 million for the
third quarter of 2007 and 2006, respectively. Excluding legal
expenses related to the Oris litigation, EBITDA would have been $2.9
million for the third quarter of 2007. An explanation and
reconciliation of net income under generally accepted accounting
principles (GAAP) to EBITDA and Adjusted EBITDA is provided below.
Michael Moran, Chairman, President and Chief Executive Officer of
Allion Healthcare, Inc. commented, “Allion completed another quarter
with solid financial performance.
Reported revenue and earnings per share were consistent with
our expectations.
Increases in operating earnings and cash flow demonstrate the
progress we have made in improving our leverage of fixed costs and
operating efficiencies.
“These operating results were achieved despite the disruption
associated with the Oris litigation.
For the quarter, we will pay for nine slots that were subject
to earn-out payments to the previous owners of Oris.
This compares to 287 that
were subject to earn-out payments in the first six months of 2007.
“We are excited about the exclusive distribution agreement with
Galea Life Sciences for Nutraplete. This is the first therapeutic
dietary supplement designed specifically for people living with
HIV/AIDS. We look forward to working with the team at Galea and
helping to develop and expand the market for Nutraplete.”
Guidance
The Company today provided financial guidance for the fourth quarter
of 2007. This guidance
assumes a 39% tax rate and does not include any future acquisitions.
Three Months Ending
December 31, 2007
(Guidance)
Net sales (millions)
$
62.5 – 63.5
Earnings per diluted share
$
0.06 – 0.07
Operating Data
The following table sets forth the net sales and operating data for
each of Allion’s distribution regions for the three months ended
September 30, 2007 and 2006 (dollars in thousands):
(1) Patient months
represent a count of the number of months during a period that a
patient received at least one prescription. If an individual patient
received multiple medications during each month for a quarterly
period, a count of three would be included in patient months
irrespective of the number of prescriptions filled each month. Summary
Mr. Moran concluded, “Because of improvements in medication
therapies, we have increased our ability to manage HIV/AIDS similar
to other chronic diseases, and patients’ adherence to their
treatment regimen has become one of the most critical elements in
determining successful outcomes and reduced healthcare costs.
With profitable operations, substantial cash flow and an
unleveraged financial position, we believe we are uniquely
positioned in our industry to continue to expand our patient base
and implement this business model successfully in new markets where
we can improve the lives of an even greater number of HIV/AIDS
patients.”
Conference Call
Information
A conference will be held today November 8, 2007 at 5:00 p.m. EST;
2:00 p.m. PST. To join
the call, please dial (913) 312-0962 from the
About Allion
Healthcare, Inc.
Allion Healthcare, Inc. is a national provider of specialty pharmacy
and disease management services focused on HIV/AIDS patients. Allion
Healthcare sells HIV/AIDS medications, ancillary drugs and
nutritional supplies under the trade name MOMS Pharmacy.
Allion offers nationwide pharmacy care from its pharmacies in
Certain statements included in this press release that are not
historical facts are forward-looking statements, such as comments by
our CEO and statements about our future growth and increased
stockholder value, acquisitions, expansion into new markets, opening
of new pharmacies, and guidance regarding our possible future
financial performance. Such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements represent our expectations or
beliefs and involve certain risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements.
Factors that could cause actual results to differ materially
include those set forth in Item 1A. Risk
Factors in our most recent Quarterly Report on Form 10-Q and our
Annual Report on Form 10-K for the fiscal year ended December 31,
2006; and also include, but are not limited to, competitive
pressures and our ability to compete successfully, demand for our
products and services, changes in reimbursement and other changes in
customer mix, changes in third party reimbursement rates or our
qualification for preferred reimbursement rates in California and
New York, changes in government regulations or the interpretation of
these regulations, our ability to manage growth successfully, our
ability to effectively market our services, receipt of licensing and
regulatory approvals, and our ability to successfully identify and
integrate acquisitions, any or all of which could cause actual
results to differ from those in the forward-looking statements.
Except to the extent required
by applicable securities laws, we are under no obligation, and
expressly disclaim any obligation, to update the forward-looking
statements, whether as a result of new information, future events,
or otherwise. You are
cautioned not to place undue reliance on these forward-looking
statements that speak only as of the date herein.
Contact:
Allion Healthcare, Inc.
Corporate Communications Inc.
(631) 870-5106
(615) 254-3376
Galea Life Sciences
Paul Zuromski, President (877) 576-8872 ALLION
HEALTHCARE, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands)
ALLION HEALTHCARE, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands except per share data)
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