Atrion Reports Third Quarter Results
November 01 2019 - 04:30PM
Atrion Corporation (NASDAQ: ATRI) today announced that for the
third quarter ended September 30, 2019 revenues totaled $38.9
million down slightly from $39.3 million for the same period in
2018. Net income for the third quarter of 2019 totaled $9.6 million
compared to $9.2 million for the third quarter of 2018, with
diluted earnings per share for the third quarter of 2019 at $5.15
compared to $4.96 for the same period in 2018.
Commenting on the Company’s results for the
third quarter of 2019 compared to the same period last year, David
A. Battat, President & CEO, said, “We saw 7% revenue growth in
our cardiovascular and fluid delivery products, which accounted for
83% of total sales in the just ended quarter. Our overall revenues
were negatively impacted by declines in ophthalmic sales as well as
delays in shipping aviation products due to uncertainties relating
to new deliveries of Boeing 737 MAX airplanes.” Mr. Battat
continued, “Operating income was about $300,000 lower after
absorbing over $500,000 in additional depreciation in the quarter
for equipment required to support the future growth of our
business.” Mr. Battat added, “With a lower effective tax
rate, both net income and diluted earnings per share were up
4%.”
Mr. Battat cautioned, “The Food and Drug
Administration (FDA) issued a recent caution concerning nationwide
shortages of medical devices due to issues with contract
sterilizers. Specifically, two significant contract sterilization
facilities utilized by many medical device companies have been shut
down due to environmental concerns—one permanently and one
temporarily. Local officials have asked a third facility to
voluntarily halt operations. This loss of sterilization capacity is
causing significant delays at this country’s remaining
sterilization facilities, and the FDA is reporting that companies
in the medical device industry are encountering backlogs to get
products sterilized. We do not have a financial interest in any
sterilization facility, but we and our OEM customers utilized these
two facilities, as well as others still in operation, prior to
their closures. As a result, we expect the shortage in
sterilization capacity to negatively impact scheduled shipments to
our customers. Although we do not foresee a loss in revenue, we
believe that some sales may be delayed, particularly in the fourth
quarter of this year. A thorough overview of this industry-wide
shortage can be found at
https://www.fda.gov/medical-devices/general-hospital-devices-and-supplies/ethylene-oxide-sterilization-medical-devices.”
Mr. Battat concluded, “As of September 30, 2019
we continued to be debt free while holding $101.8 million in cash
and short and long term investments.”
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 impact of the
shortage in sterilization capacity. 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. The forward-looking statements in this press release
are made as of the date hereof, and we do not undertake any
obligation, and disclaim any duty, to supplement, update or revise
such statements, whether as a result of subsequent events, changed
expectations or otherwise, except as required by applicable
law.
Contact: Jeffery StricklandVice
President and Chief Financial Officer(972) 390-9800
ATRION
CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF
INCOME(In thousands, except per share
data)
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Revenues |
|
$ |
38,883 |
|
|
$ |
39,274 |
|
|
$ |
120,600 |
|
|
$ |
117,522 |
|
Cost of goods
sold |
|
|
20,992 |
|
|
|
21,275 |
|
|
|
65,414 |
|
|
|
61,349 |
|
Gross profit |
|
|
17,891 |
|
|
|
17,999 |
|
|
|
55,186 |
|
|
|
56,173 |
|
Operating
expenses |
|
|
7,441 |
|
|
|
7,242 |
|
|
|
22,732 |
|
|
|
22,784 |
|
Operating income |
|
|
10,450 |
|
|
|
10,757 |
|
|
|
32,454 |
|
|
|
33,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income |
|
|
733 |
|
|
|
439 |
|
|
|
1,896 |
|
|
|
1,157 |
|
Other investment
income (loss) |
|
|
(106 |
) |
|
|
21 |
|
|
|
265 |
|
|
|
(1,153 |
) |
Other
income |
|
|
-- |
|
|
|
20 |
|
|
|
-- |
|
|
|
20 |
|
Income before income
taxes |
|
|
11,077 |
|
|
|
11,237 |
|
|
|
34,615 |
|
|
|
33,413 |
|
Income tax
provision |
|
|
(1,482 |
) |
|
|
(2,016 |
) |
|
|
(5,918 |
) |
|
|
(6,907 |
) |
Net income |
|
$ |
9,595 |
|
|
$ |
9,221 |
|
|
$ |
28,697 |
|
|
$ |
26,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per basic
share |
|
$ |
5.17 |
|
|
$ |
4.98 |
|
|
$ |
15.48 |
|
|
$ |
14.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding |
|
|
1,855 |
|
|
|
1,853 |
|
|
|
1,854 |
|
|
|
1,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per diluted
share |
|
$ |
5.15 |
|
|
$ |
4.96 |
|
|
$ |
15.40 |
|
|
$ |
14.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding |
|
|
1,862 |
|
|
|
1,858 |
|
|
|
1,863 |
|
|
|
1,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATRION
CORPORATIONCONSOLIDATED BALANCE
SHEETS(In thousands)
|
Sep 30, |
|
Dec. 31, |
ASSETS |
2019 |
|
2018 |
|
(Unaudited) |
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
63,673 |
|
$ |
58,753 |
Short-term investments |
|
21,339 |
|
|
9,684 |
Total cash and short-term investments |
|
85,012 |
|
|
68,437 |
Accounts receivable |
|
18,770 |
|
|
17,014 |
Inventories |
|
38,314 |
|
|
33,572 |
Prepaid expenses and other |
|
2,661 |
|
|
3,242 |
Total current assets |
|
144,757 |
|
|
122,265 |
|
|
|
|
|
|
Long-term
investments |
|
16,830 |
|
|
21,048 |
|
|
|
|
|
|
Property, plant and
equipment, net |
|
82,261 |
|
|
74,893 |
Other
assets |
|
12,903 |
|
|
13,010 |
|
|
|
|
|
|
|
$ |
256,751 |
|
$ |
231,216 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
11,381 |
|
|
10,220 |
Line of
credit |
|
-- |
|
|
-- |
Other non-current
liabilities |
|
13,065 |
|
|
10,229 |
Stockholders’
equity |
|
232,305 |
|
|
210,767 |
|
|
|
|
|
|
|
$ |
256,751 |
|
$ |
231,216 |
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