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Atrion Reports Fourth Quarter and Full Year 2016 Results

ALLEN, Texas, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ:ATRI) announced today that for the fourth quarter of 2016 revenues were $33.3 million compared to $32.4 million in the same period of 2015, while net income decreased to $5.6 million from $6.1 million, and diluted earnings per share were down to $3.00 from $3.27 in the prior-year period. For the full year 2016, Atrion’s revenues decreased to $143.5 million from $145.7 million in 2015, net income was down to $27.6 million from $28.9 million and diluted earnings per share decreased to $14.85 from $15.47 in 2015.

David Battat, CEO, commenting on the results for the fourth quarter and the full year 2016 as compared to the prior year periods said, "Revenues in our fourth quarter were higher by 3%, while operating income was down 9%. For the full year, revenues were down 2% with operating income lower by 8%." Mr. Battat added, "We are never pleased when year-over-year comparisons are lower. In prior statements, we cautioned about the impact of a strong dollar and the lapse of certain ophthalmic patents. To manage these forces, we focused on growing revenues in our primary activities in Fluid Delivery and Cardiovascular. These efforts resulted in positive revenue comparisons in both the third and fourth quarters.”

Mr. Battat stated, "We have recently been advised that certain ophthalmic customers are experiencing quality problems unrelated to the products we supply them. Shipments to these customers will likely remain on hold until such time as these issues are resolved. We expect deferred shipments to be made up in subsequent periods.”

Mr. Battat continued, "For the third consecutive quarter in 2016, we did not engage in share buybacks. Our cash and long and short term investments increased by $5.4 million in the quarter and $15.8 million during the year to a total of $54.0 million at year end."

Mr. Battat concluded, "Economic forecasts for 2017 suggest higher domestic growth and tighter monetary policy, potentially leading to higher inflation and an even stronger dollar. Because all of our manufacturing facilities are based in the U.S., we could experience higher operating costs while netting lower prices on the one-third of our sales destined to foreign markets. To counter these headwinds, we are continuing to focus on sales growth and investments in manufacturing that add capacity and increase efficiency. Although we may see uneven quarterly comparisons to 2016 periods, we are confident that we will end this year with a strong after-tax return on equity."

Atrion Corporation develops and manufactures products primarily for medical applications. The Company’s website is www.atrioncorp.com.

Statements in this press release that are forward looking are based upon current expectations and actual results or future events may differ materially. Such statements include, but are not limited to, Atrion’s expectations regarding the Company’s shipments to ophthalmic customers, operating costs in 2017, prices on sales to foreign markets and after-tax return on equity. Words such as “expects,” “believes,” “anticipates,” “intends,” "should", "plans," "will" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve risks and uncertainties. The following are some of the factors that could cause actual results or future events to differ materially from those expressed in or underlying our forward-looking statements: changing economic, market and business conditions; acts of war or terrorism; the effects of governmental regulation; competition and new technologies; slower-than-anticipated introduction of new products or implementation of marketing strategies; the Company’s ability to protect its intellectual property; changes in the prices of raw materials; changes in product mix; and intellectual property and product liability claims and product recalls. The foregoing list of factors is not exclusive, and other factors are set forth in the Company’s filings with the Securities and Exchange Commission.


ATRION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
Revenues$33,294 $32,372 $143,487 $145,733
Cost of goods sold 18,067 17,084 75,857 74,752
Gross profit 15,227 15,288 67,630 70,981
Operating expenses 7,616 6,958 28,504 28,471
Operating income 7,611 8,330 39,126 42,510
Interest income 134 135 448 771
Other income (expense) -- (2,411) (308) (2,411)
Income before income taxes 7,745 6,054 39,266 40,870
Income tax provision (2,174) (4) (11,685) (11,945)
Net income$5,571 $6,050 $27,581 $28,925
Income per basic share$3.05 $3.32 $15.12 $15.67
Weighted average basic shares
outstanding 1,825 1,824 1,824 1,846
$3.00 $3.27 $14.85 $15.47
Income per diluted share
Weighted average diluted shares
outstanding 1,859 1,849 1,857 1,870


ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31, Dec. 31,
ASSETS 2016 2015
(Unaudited) (Unaudited)
Current assets:
Cash and cash equivalents$20,022 $28,346
Short-term investments 24,080 44
Total cash and short-term investments 44,102 28,390
Accounts receivable 17,166 16,620
Inventories 29,015 29,771
Prepaid expenses and other 3,181 2,934
Deferred income taxes 651 580
Total current assets 94,115 78,295
Long-term investments 9,945 9,866
Property, plant and equipment, net 65,265 63,314
Other assets 13,268 12,861
$182,593 $164,336
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities 9,073 9,316
Line of credit -- --
Other non-current liabilities 10,532 10,922
Stockholders’ equity 162,988 144,098
$182,593 $164,336

Contact: Jeffery Strickland Vice President and Chief Financial Officer (972) 390-9800

Source:Atrion Corporation