Atrion Reports First Quarter Results
May 10 2021 - 4:30PM
Atrion Corporation (Nasdaq - ATRI) today announced that revenues
for the quarter ended March 31, 2021 were $39.2 million compared
with $43.6 million for the first quarter of 2020. Net income in the
current-year quarter totaled $7.7 million compared to $8.9 million
in last year’s first quarter, with diluted earnings per share for
the first quarter of 2021 at $4.22 compared to $4.79 for the first
quarter of 2020.
Commenting on results for the first quarter of 2021 and the
outlook for the remainder of 2021, Mr. Battat stated, “I am very
pleased to report strong growth in quarterly sequential sales, with
revenues for the first quarter of 2021 increasing by $7.0 million
compared to the preceding quarter. After three successive quarters
of sales declines in 2020 during the pandemic we have turned the
corner. Our customers are placing increased orders, reflecting the
pent-up demand for postponed inpatient and outpatient procedures.
Given the easing of quarantine restrictions and the increased
availability of vaccines, we expect a continued ramp-up in the
number of elective surgeries in each of the remaining quarters of
this year, albeit at a modest pace in the second quarter as many
people will choose to travel in the late spring and early summer
months. As a result, we are confident in our outlook for 2021 and
expect revenues in the second half of the year and beyond to
continue on a growth path.”
Addressing comparisons with the first quarter of 2020, Mr.
Battat added, “While the effect of COVID-19 on revenues is
diminishing, we are continuing to employ enhanced safety measures
in our facilities to protect our workforce, even though this
impacts our efficiency and skews pre-pandemic comparisons.
Moreover, we have addressed the added financial burdens facing our
employees due to the pandemic for expenses such as child care and
remote schooling by increasing pay for our manufacturing employees.
These cost increases, which we incurred in the just-completed first
quarter and are continuing, are the primary reason why gross
margins declined from 46% of sales in the first quarter of 2020 to
42% in the just completed quarter of 2021. Nevertheless, operating
income in the first quarter of 2021 was a very strong 23% of
sales.”
Mr. Battat concluded, “Cash and short and long term investments
increased slightly to $88.5 million, and we remain debt free.”
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 a continued increase in elective surgeries in each of the
remaining quarters of 2021 and revenues in the second half of 2021
to continue on a growth path. 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 Strickland |
|
Vice President and Chief Financial
Officer |
|
(972) 390-9800 |
ATRION
CORPORATIONCONSOLIDATED STATEMENTS OF
INCOME(In thousands, except per share
data)(Unaudited)
|
Three Months EndedMarch 31, |
|
|
2021 |
|
|
|
2020 |
|
Revenues |
$ |
39,169 |
|
|
$ |
43,594 |
|
Cost of goods
sold |
|
22,830 |
|
|
|
23,726 |
|
Gross
profit |
|
16,339 |
|
|
|
19,868 |
|
Operating
expenses |
|
7,408 |
|
|
|
8,154 |
|
Operating
income |
|
8,931 |
|
|
|
11,714 |
|
|
|
|
|
Interest and dividend
income |
|
217 |
|
|
|
462 |
|
Other investment
income (loss) |
|
62 |
|
|
|
(997 |
) |
Other
income |
|
66 |
|
|
|
-- |
|
Income
before income taxes |
|
9,276 |
|
|
|
11,179 |
|
Income tax
provision |
|
(1,550 |
) |
|
|
(2,281 |
) |
Net
income |
|
7,726 |
|
|
|
8,898 |
|
|
|
|
|
|
|
|
|
Income per basic
share |
$ |
4.23 |
|
|
$ |
4.80 |
|
|
|
|
|
Weighted average basic
shares outstanding |
|
1,826 |
|
|
|
1,853 |
|
|
|
|
|
|
|
|
|
Income per diluted share |
$ |
4.22 |
|
|
$ |
4.79 |
|
|
|
|
|
Weighted average
diluted shares outstanding |
|
1,832 |
|
|
|
1,859 |
|
ATRION
CORPORATIONCONSOLIDATED BALANCE
SHEETS(In thousands)
|
Mar. 31, |
|
Dec. 31, |
ASSETS |
2021 |
|
2020 |
|
(Unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
29,427 |
|
$ |
22,450 |
Short-term investments |
|
18,393 |
|
|
19,258 |
Total cash and short-term investments |
|
47,820 |
|
|
41,708 |
Accounts receivable |
|
20,235 |
|
|
16,445 |
Inventories |
|
49,519 |
|
|
50,298 |
Prepaid expenses and other |
|
2,385 |
|
|
3,868 |
Total current assets |
|
119,959 |
|
|
112,319 |
Long-term
investments |
|
40,672 |
|
|
46,207 |
Property, plant and
equipment, net |
|
94,891 |
|
|
94,935 |
Other
assets |
|
13,321 |
|
|
13,429 |
|
|
|
|
|
$ |
268,843 |
|
$ |
266,890 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
10,777 |
|
|
13,636 |
Line of credit |
|
-- |
|
|
-- |
Other non-current liabilities |
|
13,315 |
|
|
12,812 |
Stockholders’ equity |
|
244,751 |
|
|
240,442 |
|
|
|
|
|
$ |
268,843 |
|
$ |
266,890 |
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