SOURCE: Atrion Corporation

Atrion Corporation

October 31, 2014 16:30 ET

Atrion Reports Third Quarter Results

ALLEN, TX--(Marketwired - Oct 31, 2014) -  Atrion Corporation (NASDAQ: ATRI) today announced that for the third quarter of 2014 revenues totaled $36.6 million compared with $34.0 million for the same period in 2013. Operating income for the just ended quarter was $11.2 million compared to $10.7 million in the same period of 2013. On a diluted per share basis, earnings for the period increased to $3.91 as compared to $3.81 for the same quarter of last year. Net income for the third quarter of $7.7 million was the same in last year's third quarter.

Commenting on the results for the third quarter compared to the same period of 2013, David Battat, President and CEO, said, "Overall sales were up 8%, with improvements in all product areas. Fluid delivery products increased 11%, and sales of non-medical products in our 'Other' category showed an increase of 14%. The substantial growth in this latter category skewed our operating income somewhat for the quarter, as margins for these non-medical products are lower. Changes in our product mix resulted in gross profit increasing by a smaller 6%, and in a 5% increase in operating income for the quarter." Mr. Battat continued, "Despite these improvements, net income was flat as our tax rate was 9% higher than in last year's quarter due to Congressional inaction on extending R&D tax credits that expired on December 31, 2013. If the extension is passed prior to the end of the year, our R&D tax credits for the full year will be reflected in the results for the fourth quarter." Mr. Battat concluded, "Continued strong cash generation during the quarter increased our cash and marketable securities by $3.4 million to $55.1 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 the use of R&D tax credits for 2014. 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     Nine Months Ended  
    September 30,     September 30,  
    2014     2013     2014     2013  
Revenues   $ 36,625     $ 34,044     $ 108,069     $ 100,142  
Cost of goods sold     18,587       17,003       55,234       51,757  
  Gross profit     18,038       17,041       52,835       48,385  
Operating expenses     6,812       6,328       20,652       18,777  
  Operating income     11,226       10,713       32,183       29,608  
                                 
Interest income     240       310       904       1,005  
Other income     12       -       13       -  
Income before income taxes     11,478       11,023       33,100       30,613  
Income tax provision     (3,793 )     (3,350 )     (11,332 )     (9,800 )
  Net income   $ 7,685     $ 7,673     $ 21,768     $ 20,813  
                                 
Income per basic share   $ 3.94     $ 3.82     $ 11.08     $ 10.33  
                                 
Weighted average basic shares outstanding     1,949       2,007       1,964       2,014  
                                 
                                 
Income per diluted share   $ 3.91     $ 3.81     $ 10.99     $ 10.31  
                                 
Weighted average diluted shares outstanding     1,966       2,016       1,980       2,019  
                                 
                                 
                                 
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
    Sept. 30,   Dec. 31,
ASSETS   2014   2013
    (Unaudited)    
Current assets:            
  Cash and cash equivalents   $ 26,921   $ 28,559
  Short-term investments     18,178     18,351
    Total cash and short-term investments     45,099     46,910
  Accounts receivable     18,399     14,164
  Inventories     28,408     26,266
  Prepaid expenses and other     1,974     1,603
  Deferred income taxes     1,376     1,376
      Total current assets     95,256     90,319
             
Long-term investments     10,000     10,069
             
Property, plant and equipment, net     60,446     58,328
Other assets     13,218     13,350
             
    $ 178,920   $ 172,066
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
  Current liabilities     10,781     9,364
  Line of credit     --     --
  Other non-current liabilities     11,797     13,708
  Stockholders' equity     156,342     148,994
             
    $ 178,920   $ 172,066

Contact Information

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