Allied Healthcare 4Q profit rises as costs dip

AP News
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Posted: Nov 24, 2009 1:05 PM

British health care staffing company Allied Healthcare International Inc. said its profit edged up 2 percent in its fiscal fourth quarter, as foreign currency exchange rates hurt revenue but also reduced expenses.

In the three months ended Sept. 30, Allied said its profit totaled slightly more than $2.9 million, compared with just under $2.9 million a year ago. On a per-share basis, profit grew to 7 cents from 6 cents. The company's revenue fell 7 percent, to $69.8 million from $75 million.

For the quarter, home care revenue grew 19 percent to $68.1 million. But nursing home revenue fell to $7.5 million from $9.7 million, and hospital revenue decreased to $5.6 million from $7.8 million.

Allied said exchange rates reduced its revenue by $11.4 million. Excluding the effect of currency exchanges, it said revenue would have grown 8 percent from last year. Selling, general and administrative costs fell to $17 million from $18.6 million a year ago. If exchange rates had stayed the same, those costs would have increased to $19.6 million.

For the fiscal year, Allied said its profit rose 17 percent, to $10.3 million, or 23 cents per share, from $8.8 million, or 19 cents per share. Revenue fell 16 percent, to $249.8 million from $298.6 million _ currency exchange reduced sales by $67.9 million.

In afternoon trading, Allied shares were down 1 cent at $2.86.