Atrion Reports Results for Fourth Quarter and Full Year 2020
February 26 2021 - 5:47PM
Atrion Corporation (NASDAQ: ATRI) announced today that for the
fourth quarter of 2020 revenues were $32.2 million compared to
$34.5 million in the same period of 2019, net income was $7.4
million compared to $8.1 million in the prior year period, and
diluted earnings per share were $4.02 compared to $4.33 in the
prior-year period. For the full year 2020 compared to 2019, Atrion
revenues declined to $147.6 million from $155.1 million, net income
was $32.1 million compared to $36.8 million, and diluted earnings
per share were $17.44 compared to $19.73.
David Battat, President & CEO, commenting on
the results for the year said, “This has been an unparalled period
of challenge for our employees, families, customers and
communities. I remain humbled by the selflessness of my co-workers,
who kept our three facilities operational through the most serious
waves of Covid-19. Although revenues for the full year were down 5%
compared to 2019, a review of our sequential quarterly performance
is instructive.” Mr. Battat added, “Quarterly revenues peaked in
the first quarter when sales increased by $9.1 million from the
immediately preceding quarter as hospitals anticipated an onslaught
of Covid-19 patients by stocking up with fluid delivery products
used in critical care settings.”
Mr. Battat stated, “Starting in the second
quarter, as the scale of the pandemic became clearer, products used
in elective surgeries saw revenue declines as hospitals reserved
beds for Covid-19 patients and individuals postponed procedures,
opting to remain in quarantine at home. The emergence of delays in
elective surgeries, combined with the ordering surge in the prior
quarter, led to a large sales decline of $5.6 million between the
first and second quarters. Although we continued to see
postponements of elective surgeries, we reacted quickly and
leveraged our diversified product portfolio. This resulted in
sequentially smaller revenue declines from the second to the third,
and the third to the fourth quarters of 2020 by $4.2 and $1.5
million, respectively.”
Mr. Battat continued, “Operating costs increased
as we took measures to minimize risks to our employees including
modifying our production lines, enhancing ventilation and providing
personal protective equipment. The higher cost of those measures
resulted in gross margins declining from 46% in the first quarter
to 43% in the fourth quarter. Nevertheless, we continued to achieve
operating margins of 24% reflecting our emphasis on constantly
investing to improve quality, efficiency and capacity.”
Mr. Battat observed, “Diluted EPS benefited from
the appreciation of the mark to market valuation of our short and
long term investment portfolio by $1.4 million for the quarter and
the full year, as well as from the purchase during the year of
29,747 of our shares at an average cost of $633.03 per share.”
Commenting on expectations for 2021, Mr. Battat
stated, “With the CDC anticipating continued impacts from Covid-19
and its mutations through at least the summer of 2021, there will
certainly be challenges ahead. We will continue prioritizing the
safety of our employees, their families and our communities while
ensuring the continuity of supply of vital components and devices
to hospitals and other clinicians. Assuming that at least the
current level of elective surgeries is maintained, we anticipate
mid-single digit revenue growth for the full year, with uneven
quarterly results. Our growth expectations for 2021 and beyond
necessitate that we significantly expand one of our facilities.
Initial municipal approvals have been received, and we expect to
begin construction in the spring of this year.”
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 completion of the design process for the expansion of
one of our facilities, prioritizing the safety of employees, their
families and our communities, revenue growth in 2021 and uneven
quarterly results. Words such as “expects,” “believes,”
“anticipates,” “forecasts,” “intends,” "should", "plans," "will"
and variations of such words and similar expressions are intended
to identify such forward-looking statements. Forward-looking
statements contained herein involve numerous risks and
uncertainties, and there are a number of factors that could cause
actual results or future events to differ materially, including,
but not limited to, the following: the risk that the COVID-19
pandemic continues to lead to material delays and cancellations of,
or reduced demand for, procedures in which our products are
utilized; curtailed or delayed capital spending by hospitals and
other healthcare providers; disruption to our supply chain;
closures of our facilities; delays in training; delays in gathering
clinical evidence; diversion of management and other resources to
respond to the COVID-19 outbreak; the impact of global and regional
economic and credit market conditions on healthcare spending; the
risk that the COVID-19 virus continues to disrupt local economies
and to cause economies in our key markets to enter prolonged
recessions; changing economic, market and business conditions; acts
of war or terrorism; the effects of governmental regulation; the
impact of competition and new technologies; slower-than-anticipated
introduction of new products or implementation of marketing
strategies; implementation of new manufacturing processes or
implementation of new information systems; our ability to protect
our intellectual property; changes in the prices of raw materials;
changes in product mix; intellectual property and product liability
claims and product recalls; the ability to attract and retain
qualified personnel; and the loss of, or any material reduction in
sales to, any significant customers. In addition,
assumptions relating to budgeting, marketing, product
development and other management decisions are subjective in many
respects and thus susceptible to interpretations and periodic
review which may cause us to alter our marketing, capital
expenditures or other budgets, which in turn may affect our results
of operations and financial condition. 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 CORPORATIONCONSOLIDATED STATEMENTS
OF INCOME(In thousands, except per share
data) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2020(unaudited) |
|
2019(unaudited) |
|
2020(unaudited) |
|
2019(unaudited) |
Revenues |
|
$ |
32,244 |
|
|
$ |
34,466 |
|
|
$ |
147,591 |
|
|
$ |
155,066 |
|
Cost of goods sold |
|
|
18,315 |
|
|
|
18,964 |
|
|
|
81,428 |
|
|
|
84,378 |
|
Gross profit |
|
|
13,929 |
|
|
|
15,502 |
|
|
|
66,163 |
|
|
|
70,688 |
|
Operating expenses |
|
|
7,604 |
|
|
|
7,427 |
|
|
|
30,495 |
|
|
|
30,159 |
|
Operating income |
|
|
6,325 |
|
|
|
8,075 |
|
|
|
35,668 |
|
|
|
40,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income |
|
|
283 |
|
|
|
591 |
|
|
|
1,444 |
|
|
|
2,487 |
|
Other investment income
(loss) |
|
|
1,350 |
|
|
|
(113 |
) |
|
|
1,355 |
|
|
|
152 |
|
Income before income
taxes |
|
|
7,958 |
|
|
|
8,553 |
|
|
|
38,467 |
|
|
|
43,168 |
|
Income tax provision |
|
|
(588 |
) |
|
|
(489 |
) |
|
|
(6,352 |
) |
|
|
(6,407 |
) |
Net income |
|
$ |
7,370 |
|
|
$ |
8,064 |
|
|
$ |
32,115 |
|
|
$ |
36,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per basic share |
|
$ |
4.03 |
|
|
$ |
4.35 |
|
|
$ |
17.49 |
|
|
$ |
19.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding |
|
|
1,828 |
|
|
|
1,855 |
|
|
|
1,836 |
|
|
|
1,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per diluted share |
|
$ |
4.02 |
|
|
$ |
4.33 |
|
|
$ |
17.44 |
|
|
$ |
19.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding |
|
|
1,832 |
|
|
|
1,862 |
|
|
|
1,841 |
|
|
|
1,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATRION CORPORATIONCONSOLIDATED BALANCE
SHEETS(In thousands) |
|
Dec. 31, |
|
Dec. 31, |
ASSETS |
2020 |
|
2019 |
|
(unaudited)) |
|
(unaudited) |
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
22,450 |
|
$ |
45,048 |
Short-term investments |
|
19,258 |
|
|
23,766 |
Total cash and short-term investments |
|
41,708 |
|
|
68,814 |
Accounts receivable |
|
16,445 |
|
|
18,886 |
Inventories |
|
50,298 |
|
|
42,093 |
Prepaid expenses and other |
|
3,868 |
|
|
2,545 |
Total current assets |
|
112,319 |
|
|
132,338 |
Long-term investments |
|
46,207 |
|
|
31,772 |
Property, plant and equipment,
net |
|
94,935 |
|
|
84,606 |
Other assets |
|
13,429 |
|
|
13,315 |
|
|
|
|
|
|
|
$ |
266,890 |
|
$ |
262,031 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
13,636 |
|
|
11,274 |
Line of credit |
|
-- |
|
|
-- |
Other non-current liabilities |
|
12,812 |
|
|
12,887 |
Stockholders’ equity |
|
240,442 |
|
|
237,870 |
|
|
|
|
|
|
|
$ |
266,890 |
|
$ |
262,031 |
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