SOURCE: Atrion Corporation

Atrion Corporation

November 07, 2012 16:30 ET

Atrion Reports Third Quarter Results

Diluted EPS Increases by 8%

ALLEN, TX--(Marketwire - Nov 7, 2012) -  Atrion Corporation (NASDAQ: ATRI) today announced that for the third quarter of 2012 diluted earnings per share were up 8% and revenues were up 1% compared to the results for the third quarter of 2011. 

Atrion's revenues for the quarter ended September 30, 2012 totaled $30.6 million compared with $30.5 million for the same period in 2011. On a diluted per share basis, earnings for the period increased to $3.59 as compared to $3.33 for the same quarter of last year. Net income for the third quarter totaled $7.3 million compared to $6.8 million in last year's third quarter.

Commenting on the results of the third quarter compared to the same period of 2011, David Battat, President and CEO, said, "Revenues for the quarter were flat, with a strong increase in fluid delivery products offsetting lower sales in some areas and quarter-to-quarter fluctuations in others, proving once again the value of a diversified product portfolio. As anticipated, the decline in ophthalmic shipments this past quarter moderated from the level in the first half of this year. Operating income was $327,000 lower than in last year's quarter, a 3% decrease primarily attributable to a $303,000 increase in depreciation and amortization. Last year we spent about $12 million on equipment and automation to increase capacity in select product areas, as well as to continuously improve quality and efficiency throughout our facilities. A similar amount was budgeted for 2012. Depreciation of new equipment begins when each asset is placed in service following the lengthy validations required by regulatory authorities." Mr. Battat added, "The improvement in diluted EPS in this year's third quarter resulted from a significant decrease in our tax rate from 34.4% last year to 28.0% due to the recapture of certain R&D tax credits that were initially disallowed by the IRS. After a lengthy process, an IRS arbitration panel ruled in our favor allowing us 100% of the claimed credits." Mr. Battat concluded, "Significant cash was generated in the quarter increasing cash and investments by $8.8 million to $62.2 million."

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

   
   
ATRION CORPORATION  
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME  
(In thousands, except per share data)  
   
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2012     2011     2012     2011  
Revenues   $ 30,637     $ 30,457     $ 90,565     $ 92,185  
Cost of goods sold     15,742       15,161       47,168       44,882  
    Gross profit     14,895       15,296       43,397       47,303  
Operating expenses     5,218       5,292       16,810       16,766  
    Operating income     9,677       10,004       26,587       30,537  
                                 
Interest income     411       325       1,060       993  
Other income     -       1       2       3  
Income before income taxes     10,088       10,330       27,649       31,533  
Income tax provision     (2,829 )     (3,556 )     (8,914 )     (10,883 )
    Net income   $ 7,259     $ 6,774     $ 18,735     $ 20,650  
                                 
Income per basic share   $ 3.60     $ 3.35     $ 9.30     $ 10.22  
                                 
Weighted average basic shares outstanding     2,014       2,023       2,015       2,020  
                                 
                                 
Income per diluted share   $ 3.59     $ 3.33     $ 9.24     $ 10.17  
                                 
Weighted average diluted shares outstanding     2,022       2,033       2,028       2,031  
                                 
                                 
                                 
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
    Sept. 30,     Dec. 31,
ASSETS   2012     2011
      (Unaudited)        
Current assets:              
  Cash and cash equivalents   $ 22,341     $ 24,590
  Short-term investments     16,354       20,279
    Total cash and short-term investments     38,695       44,869
  Accounts receivable     14,579       11,223
  Inventories     24,512       24,582
  Prepaid expenses and other     1,490       2,313
  Deferred income taxes     755       755
      Total current assets     80,031       83,742
               
Long-term investments     23,501       10,336
               
Property, plant and equipment, net     58,907       56,370
Other assets     11,421       11,447
               
    $ 173,860     $ 161,895
               
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
               
  Current liabilities     9,635       10,043
  Line of credit     --       --
  Other non-current liabilities     13,712       13,338
  Stockholders' equity     150,513       138,514
               
    $ 173,860     $ 161,895
               

Contact Information

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