ATRI ATRION Corporation

Atrion Corporation (NASDAQ: ATRI) announced today that for the fourth quarter of 2018 revenues were $34.9 million compared to $34.0 million in the same period of 2017, net income was $7.7 million compared to $8.6 million in the prior-year period, and diluted earnings per share were $4.17 compared to $4.66 in the prior-year period. For the full year 2018 compared to 2017, Atrion increased revenues to $152.4 million from $146.6 million, net income was $34.3 million compared to $36.6 million, and diluted earnings per share were $18.44 compared to $19.71.

David Battat, President & CEO, commenting on the results for the fourth quarter and the full year 2018 as compared to the prior-year periods, said, "We are pleased that our revenues were up 3% in the quarter and 4% for the full year despite the significant decline in Ophthalmic sales that was discussed in prior press releases. Those sales were lower by 17% in the quarter and 23% for the full year.” Mr. Battat continued, “Full year comparisons of net income and diluted EPS are distorted because our 2018 tax rate was higher than the prior year due to significant, non-recurring tax benefits in 2017.”

Mr. Battat continued, “Although operating income showed a small year-over-year improvement, operating income for 2018 was 27% of sales, a testament to both the clinical demand for our products and the efficiency of our operations. As a result, cash flow from operations in 2018 funded an increase of $6.4 million in working capital, $17.5 million in manufacturing investments and $9.4 million in dividend payments. In addition cash and short and long term investments increased by $14.8 million during the year, bringing the total as of December 31, 2018 to $89.5 million.”

Commenting on the outlook for 2019, Mr. Battat said, “We anticipate that Ophthalmic sales will stabilize in the second quarter of this year, while other major product areas will begin to benefit from new product releases. We are particularly excited that, after a multi-year development process, the latest generation of our flagship cardiovascular technology, the Myocardial Protection System (MPS 3), is undergoing a limited market release in Canada, and we hope to have FDA clearance for the U.S. market this year. The MPS 3 is a significant step forward in our cardiovascular portfolio, expanding the benefits of this platform to both clinicians and patients. We are confident that our MPS 3 will remain the market leading technology in its niche for several years to come.” 

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 stabilizing Ophthalmic sales, benefits from new product releases, FDA clearance of MPS 3 in the U.S. market, and MPS 3 market position.  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 Strickland
		Vice 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,
	2018(unaudited)				2017(unaudited)				2018				2017
Revenues	$	34,926			$	34,024		$	152,448			$	146,595
Cost of goods sold		19,321				18,001			80,670				75,841
Gross profit		15,605				16,023			71,778				70,754
Operating expenses		7,287				7,730			30,071				29,480
Operating income		8,318				8,293			41,707				41,274
Interest and dividend income		389				259			1,562				1,065
Other investment income (loss)		(106	)			--			(1,275	)			--
Other income		22				--			42				1
Income before income taxes		8,623				8,552			42,036				42,340
Income tax benefit (provision)		(874	)			94			(7,781	)			(5,747	)
Net income	$	7,749			$	8,646		$	34,255			$	36,593
Income per basic share	$	4.18			$	4.67		$	18.49			$	19.82
Weighted average basic shares outstanding		1,853				1,852			1,853				1,846
	$	4.17			$	4.66		$	18.44			$	19.71
Income per diluted share
Weighted average diluted shares outstanding		1,860				1,857			1,858				1,857

ATRION CORPORATIONCONSOLIDATED BALANCE SHEETS(In thousands)
		Dec. 31,			Dec. 31,
ASSETS		2018			2017
Current assets:
Cash and cash equivalents	$	58,753		$	30,136
Short-term investments		9,684			35,468
Total cash and short-term investments		68,437			65,604
Accounts receivable		17,014			17,076
Inventories		33,572			29,354
Prepaid expenses and other		3,242			3,199
Total current assets		122,265			115,233
Long-term investments		21,048			9,136
Property, plant and equipment, net		74,893			66,369
Other assets		13,010			13,042
	$	231,216		$	203,780
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities		10,220			9,622
Line of credit		--			--
Other non-current liabilities		10,229			9,770
Stockholders’ equity		210,767			184,388
	$	231,216		$	203,780