SOURCE: Atrion Corporation

Atrion Corporation

August 06, 2014 16:30 ET

Atrion Reports Second Quarter Results

ALLEN, TX--(Marketwired - Aug 6, 2014) - Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter ended June 30, 2014 revenues totaled $35.0 million compared with $32.6 million in the same period in 2013. On a diluted per share basis, earnings for the period increased to $3.48 as compared to $3.22 in the same period of last year. Net income for the second quarter totaled $6.9 million compared to $6.5 million in last year's second quarter.

Commenting on the Company's results, David A. Battat, President & CEO, stated "I am pleased with our performance in the second quarter. Compared to the same period of last year, operating income was up 8% while sales were up 7%, reflecting growth in our fluid delivery and cardiovascular products of 13% and 7%, respectively. Net income was up 6%, despite a tax rate 4% higher than in the comparable 2013 quarter largely due to government inaction on the renewal of R&D tax credits." Mr. Battat added "Our increased R&D expenditures reflect an ongoing effort to expand our product portfolio."

Mr. Battat added "During the quarter we devoted much effort and expense to travel and legal work related to potential acquisition or collaboration targets. Due to concerns about valuation, we did not conclude any transaction. We remain highly disciplined in our approach to all investments. Consistent with this approach, we intend to scale down acquisition efforts while we wait for valuations of privately held companies to reach levels that offer a more attractive return on capital." Mr. Battat concluded "In the second quarter, we spent $7.3 million to repurchase 23,512 shares of our stock. Compared to the first quarter of 2014, second quarter buybacks were higher by $2.6 million while payments for estimated taxes were up by $7.7 million. Despite these substantial increases in cash utilization, we ended the quarter with cash and marketable securities of $51.7 million."

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 our ongoing acquisition efforts. 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
June 30,
    Six Months Ended
June 30,
 
    2014     2013     2014     2013  
Revenues   $ 35,025     $ 32,605     $ 71,444     $ 66,097  
Cost of goods sold     17,616       16,971       36,647       34,754  
  Gross profit     17,409       15,634       34,797       31,343  
Operating expenses     7,152       6,139       13,840       12,448  
  Operating income     10,257       9,495       20,957       18,895  
                                 
Interest income     364       346       664       695  
Income before income taxes     10,621       9,841       21,621       19,590  
Income tax provision     (3,739 )     (3,335 )     (7,539 )     (6,450 )
  Net income   $ 6,882     $ 6,506     $ 14,082     $ 13,140  
                                 
Income per basic share   $ 3.51     $ 3.23     $ 7.14     $ 6.51  
                                 
Weighted average basic shares outstanding     1,960       2,015       1,971       2,017  
                                 
                                 
Income per diluted share   $ 3.48     $ 3.22     $ 7.09     $ 6.50  
                                 
Weighted average diluted shares outstanding     1,977       2,019       1,987       2,021  
                                 
                                 
 
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
    June 30,   Dec. 31,
ASSETS   2014   2013
    (Unaudited)    
Current assets:            
  Cash and cash equivalents   $ 23,521   $ 28,559
  Short-term investments     18,146     18,351
    Total cash and short-term investments     41,667     46,910
  Accounts receivable     16,407     14,164
  Inventories     27,208     26,266
  Prepaid expenses and other     2,488     1,603
  Deferred income taxes     1,376     1,376
    Total current assets     89,146     90,319
                 
Long-term investments     10,000     10,069
             
Property, plant and equipment, net     59,917     58,328
Other assets     13,267     13,350
             
    $ 172,330   $ 172,066
             
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Current liabilities     9,994     9,364
Line of credit     --     --
Other non-current liabilities     12,466     13,708
Stockholders' equity     149,870     148,994
             
    $ 172,330   $ 172,066
             
             

Contact Information

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