Atrion Reports Third Quarter 2022 Results
November 08 2022 - 4:00PM
Atrion Corporation (NASDAQ: ATRI) today announced its results for
the third quarter ended September 30, 2022.
Revenues for the third quarter of 2022 totaled
$44.6 million compared to $42.9 million for the same period in
2021. For the quarter ended September 30, 2022, operating income
was $9.6 million, up $125 thousand over the comparable 2021 period,
and net income was $8.8 million, up $562 thousand over the same
period in 2021. Third quarter 2022 diluted earnings per share were
$4.94 compared to $4.58 for the third quarter of 2021.
Commenting on the results for the third quarter
of 2022 compared to the prior year period, David Battat, President
and CEO, stated, “Even with the impact of Hurricane Ian, revenues
were up 4%, resulting in the highest revenues of any third quarter
in our history. Net income and earnings per share were up by 7% and
8%, respectively. Continuing manufacturing cost increases lowered
gross profit margins in the quarter from 42% to 40%."
Mr. Battat continued, “Thankfully, our employees
and our Florida facility were not harmed by the hurricane, but $1.7
million in products scheduled for shipment from that facility the
last week of the just ended quarter did not ship until October
because trucking companies did not make scheduled pickups in the
days leading up to the storm. We also incurred costs due to
shutting down that facility for almost three days to ensure the
safety of our employees.”
Updating expectations for the second half of
2022, Mr. Battat stated, “Our international customers are
expressing greater concern about a severe recession in Europe,
especially in light of inflationary pressures from winter energy
prices. These customers have cautioned they may push out orders
previously scheduled to ship at the end of this year into
2023. We expect revenues and operating income will still show
gains, but at lower than previously projected levels.”
Mr. Battat concluded, “Cash and short and long term investments
totaled $58.6 million at September 30, 2022 after our purchase of
8,577 shares of the Company’s stock during the third quarter at an
average price of $593.46. 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, the Company’s
expectations regarding revenues and operating income. 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
CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF
INCOME(In thousands, except per share
data)
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
$ |
44,631 |
|
|
$ |
42,855 |
|
|
$ |
140,651 |
|
|
$ |
124,716 |
|
Cost of goods
sold |
|
26,978 |
|
|
|
25,065 |
|
|
|
82,921 |
|
|
|
72,720 |
|
Gross profit |
|
17,653 |
|
|
|
17,790 |
|
|
|
57,730 |
|
|
|
51,996 |
|
Operating
expenses |
|
8,050 |
|
|
|
8,312 |
|
|
|
26,848 |
|
|
|
23,792 |
|
Operating income |
|
9,603 |
|
|
|
9,478 |
|
|
|
30,882 |
|
|
|
28,204 |
|
|
|
|
|
|
|
|
|
Interest and dividend
income |
|
210 |
|
|
|
281 |
|
|
|
639 |
|
|
|
680 |
|
Other investment income
(loss) |
|
764 |
|
|
|
(173 |
) |
|
|
216 |
|
|
|
852 |
|
Other
income |
|
7 |
|
|
|
-- |
|
|
|
92 |
|
|
|
67 |
|
Income before income
taxes |
|
10,584 |
|
|
|
9,586 |
|
|
|
31,829 |
|
|
|
29,803 |
|
Income tax
provision |
|
(1,745 |
) |
|
|
(1,309 |
) |
|
|
(5,143 |
) |
|
|
(4,875 |
) |
Net income |
$ |
8,839 |
|
|
$ |
8,277 |
|
|
$ |
26,686 |
|
|
$ |
24,928 |
|
|
|
|
|
|
|
|
|
Income per basic
share |
$ |
4.95 |
|
|
$ |
4.59 |
|
|
$ |
14.89 |
|
|
$ |
13.71 |
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding |
|
1,786 |
|
|
|
1,803 |
|
|
|
1,793 |
|
|
|
1,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per diluted
share |
$ |
4.94 |
|
|
$ |
4.58 |
|
|
$ |
14.86 |
|
|
$ |
13.68 |
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
1,788 |
|
|
|
1,806 |
|
|
|
1,796 |
|
|
|
1,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATRION
CORPORATIONCONSOLIDATED BALANCE
SHEETS(In thousands)
|
Sept. 30, |
|
Dec. 31, |
ASSETS |
|
2022 |
|
|
2021 |
|
(Unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
27,125 |
|
$ |
32,264 |
Short-term investments |
|
20,296 |
|
|
29,059 |
Total cash and short-term investments |
|
47,421 |
|
|
61,323 |
Accounts receivable |
|
22,038 |
|
|
21,023 |
Inventories |
|
59,624 |
|
|
50,778 |
Prepaid expenses and other |
|
3,598 |
|
|
3,447 |
Total current assets |
|
132,681 |
|
|
136,571 |
Long-term
investments |
|
11,133 |
|
|
19,423 |
Property, plant and
equipment, net |
|
115,113 |
|
|
97,972 |
Other assets |
|
13,027 |
|
|
13,298 |
|
|
|
|
|
$ |
271,954 |
|
$ |
267,264 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
liabilities |
|
17,879 |
|
|
13,346 |
Line of
credit |
|
-- |
|
|
-- |
Other non-current
liabilities |
|
7,800 |
|
|
9,622 |
Stockholders’
equity |
|
246,275 |
|
|
244,296 |
|
|
|
|
|
$ |
271,954 |
|
$ |
267,264 |
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