SOURCE: Atrion Corporation

Atrion Corporation

August 09, 2016 16:30 ET

Atrion Reports Second Quarter Results and Announces Dividend Increase

ALLEN, TX--(Marketwired - August 09, 2016) - Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter ended June 30, 2016 revenues totaled $36.1 million compared with $37.7 million in the same period in 2015. On a diluted per share basis, earnings for the period increased to $4.02 as compared to $3.99 in the same period of last year. Net income for the second quarter totaled to $7.5 million in both years.

Commenting on the Company's results for the second quarter of 2016 compared to the same period last year, David A. Battat, President & CEO, said, "Overall sales were down 4%, reflecting lower prices in Ophthalmology following patent expirations and the impact of exchange rates on all our exports." Mr. Battat continued, "Cost of goods remained unchanged, as lower revenues reflected lower prices rather than volume. As a result, operating income was down 9% despite lower operating expenses in the period." Mr. Battat stated, "Net income for the second quarter was basically flat, benefitting from our adoption of a new accounting rule concerning employee share-based compensation that reduced our taxes from an effective rate of 35% in the second quarter of 2015 to 27% in the current year period, resulting in a $623,000 tax savings. Diluted EPS was up 1%, with the number of diluted shares slightly lower than in last year's second quarter." Mr. Battat added, "During the quarter we did not engage in stock buybacks while adding $2.3 million to our cash and short and long term investments, bringing the total to $41.4 million as of June 30, 2016." Mr. Battat stated, "For the remaining quarters of 2016, we expect to continue to see lower realized prices, while additional tax benefits from the new accounting rule are uncertain and will be uneven going forward."

Mr. Battat concluded, "Our Board of Directors, confident in our long term growth, has approved a quarterly dividend increase from $0.90 to $1.05 per share payable on September 30, 2016 to stockholders of record as of September 15, 2016."

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 prices for products for the remaining quarters in 2016, future tax benefits from the new accounting rule and the Company's long-term growth. 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  
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME  
(In thousands, except per share data)  
   
   Three Months Ended   Six Months Ended  
   June 30,   June 30,  
   2016   2015   2016    2015  
Revenues  $36,655   $37,655   $72,358   $75,979  
Cost of goods sold   18,928    18,871    37,578    38,671  
  Gross profit   17,215    18,784    34,780    37,308  
Operating expenses   7,141    7,664    14,241    14,702  
  Operating income   10,074    11,120    20,539    22,606  
                      
Interest income   85    328    208    505  
Other income (expense), net   36    --    (309 )  --  
Income before income taxes   10,195    11,448    20,438    23,111  
Income tax provision   (2,745 )  (3,974 )  (6,042 )  (8,036
  Net income  $7,450   $7,474   $14,396   $15,075  
   
Income per basic share  $4.09   $4.04   $7.90   $8.10  
   
Weighted average diluted shares outstanding   1,822    1,850    1,823    1,862  
   
Income per diluted share  $4.02   $3.99   $7.76   $8.00  
   
Weighted average diluted shares outstanding   1,853    1,872    1,855    1,884  
                 
 
 
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
   June 30,  Dec. 31,
ASSETS  2016  2015
   (Unaudited)   
Current assets:        
 Cash and cash equivalents  $30,817  $28,346
 Short-term investments   6   44
  Total cash and short-term investments   30,823   28,390
 Accounts receivable   18,833   16,620
 Inventories   31,167   29,771
 Prepaid expenses and other   3,815   2,934
 Deferred income taxes   580   580
  Total current assets   85,218   78,295
         
Long-term investments   10,617   9,866
         
Property, plant and equipment, net   64,289   63,314
Other assets   12,865   12,861
 
   $172,989  $164,336
 
LIABILITIES AND STOCKHOLDERS' EQUITY        
         
Current liabilities   8,236   9,316
Line of credit   --   --
Other non-current liabilities   11,167   10,922
Stockholders' equity   153,586   144,098
 
   $172,989  $164,336
       

Contact Information

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