Atrion Reports Second Quarter Results

ALLEN, Texas, Aug. 08, 2017 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ:ATRI) today announced that for the second quarter ended June 30, 2017 revenues totaled $36.2 million compared with $36.1 million in the same period in 2016. On a diluted per share basis, earnings for the period increased to $5.40 as compared to $4.02 in the same period of last year. Net income for the second quarter totaled $10.0 million in 2017 as compared to $7.5 million in the same period in 2016.

Commenting on the Company’s results for the second quarter of 2017 compared to the same period last year, David A. Battat, President & CEO, said, “Overall sales were essentially flat, impacted by a $700,000 interruption in orders from a customer that was rebalancing its inventory levels. This interruption masked solid performance in Fluid Delivery and our Other product areas." Mr. Battat added, "Operating income was up 1.0% while net income and diluted earnings per share increased by 35% and 34%, respectively, due to significant tax benefits from employee stock-based compensation that were recognized in the just ended quarter."

Mr. Battat added, “As of June 30, we continued to be debt-free, while holding cash, cash equivalents, and short and long term investments of $57.3 million.” Mr. Battat concluded, “During the quarter, we purchased a large tract of land adjacent to our manufacturing facility in Alabama that we plan to expand to meet anticipated sales growth. Construction is likely to begin in 2018. For the remainder of the year we expect our operating results to reflect uneven quarters, while our tax rates revert to the levels we have typically experienced.”

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 expansion of one of the Company’s manufacturing facilities, operating results for the remainder of 2017 and future tax rates. 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.

(In thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2017 2016 2017 2016
Revenues$ 36,164 $ 36,143 $ 74,669 $ 72,358
Cost of goods sold 18,470 18,928 38,344 37,578
Gross profit 17,694 17,215 36,325 34,780
Operating expenses 7,519 7,141 14,823 14,241
Operating income 10,175 10,074 21,502 20,539
Interest income 370 85 519 208
Other income (expense), net -- 36 1 (309)
Income before income taxes 10,545 10,195 22,022 20,438
Income tax provision (519) (2,745) (2,046) (6,042)
Net income $ 10,026 $ 7,450 $ 19,976 $ 14,396
Income per basic share$ 5.44 $ 4.09 $ 10.86 $ 7.90
Weighted average basic shares outstanding 1,844 1,822 1,839 1,823
Income per diluted share$ 5.40 $ 4.02 $ 10.76 $ 7.76
Weighted average diluted shares outstanding 1,858 1,853 1,856 1,855

(In thousands)
June 30, Dec. 31,
ASSETS2016 2016
Current assets:
Cash and cash equivalents$ 20,223 $ 20,022
Short-term investments 27,073 24,080
Total cash and short-term investments 47,296 44,102
Accounts receivable 19,690 17,166
Inventories 29,965 29,015
Prepaid expenses and other 6,022 3,181
Total current assets 102,973 93,464
Long-term investments 10,046 9,945
Property, plant and equipment, net 66,556 65,265
Other assets 13,096 13,268
$ 192,671 $ 181,942
Current liabilities 9,383 9,073
Line of credit -- --
Other non-current liabilities 10,965 9,881
Stockholders’ equity 172,323 162,988
$ 192,671 $ 181,942

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

Source:Atrion Corporation