Atrion Reports First Quarter Results
May 09 2018 - 4:30PM
Atrion Corporation (Nasdaq:ATRI) today announced revenues for the
quarter ended March 31, 2018 were $39.4 million compared with $38.5
million in the same period in 2017. Net income in the current-year
quarter totaled $8.5 million compared to $10.0 million in last
year’s first quarter, with diluted earnings per share for the first
quarter of 2018 at $4.57 compared to $5.36 in the first quarter of
2017.
Commenting on the Company’s results for the
first quarter of 2018 compared to the same period last year, David
A. Battat, President & CEO, said, “As discussed in our recent
press release announcing full year 2017 and fourth quarter results,
net income and EPS comparisons throughout 2018 will be distorted as
a result of the Tax Cuts and Jobs Act as well as non-recurring tax
benefits recorded in the first two quarters of last year. While we
are pleased with a 10% increase in earnings per diluted share as
adjusted to exclude some of those tax benefits, we believe the best
measures of comparative performance with prior-year periods are
sales and operating income. Operating income for the just ended
quarter was $11.4 million compared to $11.3 million in the first
quarter of 2017.”
Mr. Battat continued, “Revenues were up 2%
compared to the first quarter of 2017. Growth in Fluid Delivery and
Cardiovascular sales, which collectively account for more than 80%
of our overall revenue, was largely offset by sales declines in
Ophthalmology and in marine safety products in our Other
category.” Mr. Battat added, “Despite the small increase in
net revenue and higher costs for labor and materials in the current
year period, the ratio of operating income to sales was 29%, the
same highly profitable rate we saw in the comparable 2017 quarter.
This reflects our continued focus on proprietary products,
operational efficiency and customer service.” Mr. Battat noted, “We
hold a strategic equity investment in a publicly traded company
that provides research and development consulting services in the
healthcare industry. New accounting rules took effect this year
requiring that changes in the market value of such investments be
reflected in each quarter’s results. In the first quarter of 2018,
we took a charge of $778,000 reflecting an unrealized investment
loss in these securities. Because this strategic relationship has
been valuable to our own product development efforts, we have no
plans to sell the stock we hold in that company. Future increases
or decreases in the stock price of that company will similarly be
reflected in our net income and EPS outcomes.” Mr. Battat
concluded, “During the quarter, we added $4.2 million to our
balance of cash and long and short term investments bringing the
total to $78.9 million as of March 31, 2018.”
Atrion Corporation develops and manufactures
products primarily for medical applications. The Company’s
website is www.atrioncorp.com.
Contact:
Jeffery StricklandVice President and Chief
Financial Officer(972) 390-9800
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 reflection in our net income and EPS of future
increases or decreases in the stock price of a company in which we
invested. 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.
|
ATRION CORPORATION |
CONSOLIDATED STATEMENTS OF INCOME |
(In thousands, except per share
data) |
(Unaudited) |
|
|
|
Three Months EndedMarch
31, |
|
2018 |
|
2017 |
Revenues |
$ |
39,401 |
|
|
$ |
38,504 |
|
Cost of goods sold |
|
20,450 |
|
|
|
19,873 |
|
Gross
profit |
|
18,951 |
|
|
|
18,631 |
|
Operating expenses |
|
7,585 |
|
|
|
7,304 |
|
Operating
income |
|
11,366 |
|
|
|
11,327 |
|
|
|
|
|
Interest and dividend
income |
|
330 |
|
|
|
149 |
|
Other investment income
(loss) |
|
(789 |
) |
|
|
-- |
|
Income
before income taxes |
|
10,907 |
|
|
|
11,476 |
|
Income tax
provision |
|
(2,420 |
) |
|
|
(1,526 |
) |
Net
income |
|
8,487 |
|
|
|
9,950 |
|
|
|
|
|
|
|
|
|
Income per basic
share |
$ |
4.58 |
|
|
$ |
5.42 |
|
|
|
|
|
Weighted average basic
shares outstanding |
|
1,852 |
|
|
|
1,835 |
|
|
|
|
|
|
|
|
|
Income per diluted
share |
$ |
4.57 |
|
|
$ |
5.36 |
|
|
|
|
|
Weighted average
diluted shares outstanding |
|
1,856 |
|
|
|
1,855 |
|
|
|
|
|
|
|
|
|
|
ATRION CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
|
|
|
|
|
Mar. 31, |
|
Dec. 31, |
ASSETS |
2018 |
|
2017 |
|
(Unaudited) |
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
20,181 |
|
$ |
30,136 |
Short-term investments |
|
34,795 |
|
|
35,468 |
Total
cash and short-term investments |
|
54,976 |
|
|
65,604 |
Accounts
receivable |
|
20,604 |
|
|
17,076 |
Inventories |
|
29,907 |
|
|
29,354 |
Prepaid
expenses and other |
|
2,064 |
|
|
3,199 |
Total
current assets |
|
107,551 |
|
|
115,233 |
Long-term
investments |
|
23,953 |
|
|
9,136 |
Property, plant and
equipment, net |
|
67,485 |
|
|
66,369 |
Other assets |
|
13,264 |
|
|
13,042 |
|
|
|
|
|
$ |
212,253 |
|
$ |
203,780 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
liabilities |
|
11,183 |
|
|
9,622 |
Line of
credit |
|
-- |
|
|
-- |
Other
non-current liabilities |
|
10,102 |
|
|
9,770 |
Stockholders’ equity |
|
190,968 |
|
|
184,388 |
|
|
|
|
|
$ |
212,253 |
|
$ |
203,780 |
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURE
RECONCILIATION(In thousands, except per share
data)
Included in our news release is a non-GAAP
financial measure that is calculated by excluding certain tax
benefits that are included in financial measures determined in
accordance with GAAP. We have provided this non-GAAP measure
as an additional tool for investors to better understand our
operating results and to facilitate a comparison of the periods
shown. This measure should be considered in addition to,
rather than as a substitute for, GAAP measures of the Company's
performance. The table below provides a reconciliation of
this non-GAAP financial measure with the most directly comparable
GAAP financial measure.
|
|
|
|
|
|
|
|
|
|
Three Months
EndedMarch
31, |
|
% |
|
2018 |
|
2017 |
|
Increase(Decrease) |
GAAP
net income |
$ |
8,487 |
|
$ |
9,950 |
|
|
Minus tax benefit
related to employee stock compensation |
|
23 |
|
|
2,270 |
|
|
Adjusted net income
(non-GAAP) |
$ |
8,464 |
|
$ |
7,680 |
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding |
|
1,856 |
|
|
1,855 |
|
|
|
|
|
|
|
|
Adjusted income per
diluted share (non-GAAP) |
$ |
4.56 |
|
$ |
4.14 |
|
10 |
% |
|
|
|
|
|
|
GAAP income per diluted
share |
$ |
4.57 |
|
$ |
5.36 |
|
(15 |
%) |
|
|
|
|
|
|
|
|
|
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