Atrion Reports First Quarter Results
May 07 2020 - 4:30PM
Atrion Corporation (Nasdaq - ATRI) today announced that revenues
for the quarter ended March 31, 2020 were $43.6 million compared
with $41.6 million for the same period in 2019. Net income in the
current-year quarter totaled $8.9 million compared to $9.4 million
in last year’s first quarter, with diluted earnings per share for
the first quarter of 2020 at $4.79 compared to $5.07 for the first
quarter of 2019.
In announcing results for the first quarter of
2020, David A. Battat, President & CEO, said, “Before
discussing our results, I wish to express my gratitude to my
co-workers for their truly exceptional efforts during the COVID-19
pandemic. All of our facilities have remained operational thanks to
their dedication. This was a monumental effort requiring the
modification of manufacturing lines to increase distancing, scale
up production capacity of critically needed products, and make
personal protective equipment for our employees and for donation to
our communities. Despite enormous personal and professional
challenges, my co-workers accomplished all of this with courage,
grace and dignity. I am privileged to work alongside
them.”
Commenting on the Company’s results for the
quarter compared to the same period last year, Mr. Battat stated,
“We are pleased to report a 5% growth in revenues, despite the bans
on elective surgery that impacted orders for our cardiovascular
products as well as our decision to phase out certain 20 year-old
ophthalmic products. Revenues from our fluid delivery products,
many of which are used in critical care settings, saw an increase
of 23%.” Mr. Battat continued, “We are especially pleased that
operating income was up 6%, despite higher manufacturing costs due
to the pandemic as well as higher expenses as we increased our
research and development efforts. Net income and diluted EPS were
both lower by 6% due to the unfavorable impact of mark-to-market
valuation of our investment portfolio. During the quarter we
purchased 14,576 of our shares at an average price of $634.27 per
share while continuing to hold $96.4 million in cash and short- and
long- term investments as of March 31, 2020. Addressing
expectations for 2020, Mr. Battat concluded, “The world changed
after we provided financial guidance for 2020, requiring us to
completely reassess that forecast. With the COVID-19 pandemic
continuing, and the likelihood of a second wave in the fall and
winter, many of our OEM and hospital customers are reporting they
are uncertain about their 2020 buying patterns. We could also be
affected by a lasting economic slowdown, or mass illnesses
requiring us to close our operations. Given all of this volatility,
the only guidance we can provide for 2020 is that we will work
tirelessly to manage this crisis effectively and compassionately,
and that our focus on long-term growth will be steadfast.”
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 guidance for 2020. 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 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: the impact of the COVID-19 virus; risk that the
COVID-19 virus further disrupts or causes us to cease operations;
changing economic, market, and business conditions; acts of war or
terrorism; the effects of governmental regulation; and the
diversion of management and other resources to respond to the
COVID-19 outbreak. 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 develops and manufactures
products primarily for medical applications. The Company’s
website is www.atrioncorp.com.
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, |
|
|
2020 |
|
|
|
2019 |
|
Revenues |
$ |
43,594 |
|
|
$ |
41,614 |
|
Cost of goods sold |
|
23,726 |
|
|
|
22,911 |
|
Gross profit |
|
19,868 |
|
|
|
18,703 |
|
Operating expenses |
|
8,154 |
|
|
|
7,666 |
|
Operating income |
|
11,714 |
|
|
|
11,037 |
|
|
|
|
|
Interest and dividend income |
|
462 |
|
|
|
582 |
|
Other investment income (loss) |
|
(997 |
) |
|
|
211 |
|
Income before income taxes |
|
11,179 |
|
|
|
11,830 |
|
Income tax provision |
|
(2,281 |
) |
|
|
(2,392 |
) |
Net income |
|
8,898 |
|
|
|
9,438 |
|
|
|
|
|
|
|
|
|
Income per basic share |
$ |
4.80 |
|
|
$ |
5.09 |
|
|
|
|
|
Weighted average basic shares outstanding |
|
1,853 |
|
|
|
1,853 |
|
|
|
|
|
|
|
|
|
Income per diluted share |
$ |
4.79 |
|
|
$ |
5.07 |
|
|
|
|
|
Weighted average diluted shares outstanding |
|
1,859 |
|
|
|
1,862 |
|
|
|
|
|
|
|
|
|
ATRION CORPORATIONCONSOLIDATED BALANCE SHEETS(In
thousands)
|
Mar. 31, |
|
Dec. 31, |
ASSETS |
2020 |
|
2019 |
|
(Unaudited) |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
44,080 |
|
$ |
45,048 |
Short-term investments |
|
18,568 |
|
|
23,766 |
Total cash and short-term investments |
|
62,648 |
|
|
68,814 |
Accounts receivable |
|
22,813 |
|
|
18,886 |
Inventories |
|
41,252 |
|
|
42,093 |
Prepaid expenses and other |
|
1,367 |
|
|
2,545 |
Total current assets |
|
128,080 |
|
|
132,338 |
Long-term investments |
|
33,718 |
|
|
31,772 |
Property, plant and equipment, net |
|
85,446 |
|
|
84,606 |
Other assets |
|
13,186 |
|
|
13,315 |
|
|
|
|
|
$ |
260,430 |
|
$ |
262,031 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
12,961 |
|
|
11,274 |
Line of credit |
|
-- |
|
|
-- |
Other non-current liabilities |
|
12,472 |
|
|
12,887 |
Stockholders’ equity |
|
234,997 |
|
|
237,870 |
|
|
|
|
|
$ |
260,430 |
|
$ |
262,031 |
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