Atrion Reports Second Quarter Results

Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter ended June 30, 2020, revenues totaled $38.0 million compared with $40.1 million for the same period in 2019. Net income for the second quarter of 2020 totaled $8.6 million as compared to $9.7 million for the same period in 2019, with diluted earnings per share for the second quarter of 2020 at $4.68 compared to $5.18 for the second quarter of 2019.

Commenting on the Company’s quarterly results for the second quarter of 2020 compared to the same period last year, David A. Battat, President & CEO, stated, “The impact of the pandemic was felt in the second quarter with revenues and operating income lower by 5% and 8%, respectively, essentially the reverse image of the first quarter when revenues were up 5% and operating income was up 6%.” Mr. Battat explained, “The current year second quarter saw hospitals suspend elective surgeries to preserve ICU beds and other resources to deal with the anticipated deluge of Covid-19 patients. As a result, sales of our products used in elective procedures were lower by $3.7 million.” Mr. Battat added, “The net impact on overall sales was limited to $2.1 million thanks to our diversified product portfolio and the tireless efforts of my co-workers who kept our operations running throughout this period.”

Mr. Battat continued “With an effective tax rate 15% higher in this year’s quarter than the prior year’s second quarter, diluted EPS and net income were lower by 10% and 11%, respectively. During the quarter we purchased 12,158 shares of our common stock at an average cost of $641 per share. As of June 30, 2020, we continue to be debt free while holding $87.5 million in cash and short and long term investments.”

Atrion Corporation develops and manufactures products primarily for medical applications. The Company’s website is www.atrioncorp.com.

ATRION CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share data)

	Three Months EndedJune 30,						Six Months EndedJune 30,
		2020			2019			2020			2019
Revenues	$	37,968		$	40,103		$	81,563		$	81,717
Cost of goods sold		20,499			21,511			44,226			44,422
Gross profit		17,469			18,592			37,337			37,295
Operating expenses		7,423			7,626			15,577			15,291
Operating income		10,046			10,966			21,760			22,004

Interest and dividend income		367			581			858			1,163
Other investment income (loss)		354			161			(673	)		372
Income before income taxes		10,767			11,708			21,945			23,539
Income tax provision		(2,162	)		(2,044	)		(4,443	)		(4,437	)
Net income	$	8,605		$	9,664		$	17,502		$	19,102

Income per basic share	$	4.69		$	5.21		$	9.49		$	10.30

Weighted average basic shares outstanding		1,835			1,854			1,844			1,854


Income per diluted share	$	4.68		$	5.18		$	9.47		$	10.25

Weighted average diluted shares outstanding		1,839			1,864			1,849			1,863

ATRION CORPORATIONCONSOLIDATED BALANCE SHEETS(In thousands)

	June 30,		Dec. 31,
ASSETS	2020		2019
	(Unaudited)
Current assets:
Cash and cash equivalents	$	24,099	$	45,048
Short-term investments		6,574		23,766
Total cash and short-term investments		30,673		68,814
Accounts receivable		22,441		18,886
Inventories		45,805		42,093
Prepaid expenses and other		3,226		2,545
Total current assets		102,145		132,338
Long-term investments		56,871		31,772
Property, plant and equipment, net		87,867		84,606
Other assets		13,467		13,315

	$	260,350	$	262,031


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities		15,443		11,274
Line of credit		--		--
Other non-current liabilities		11,380		12,887
Stockholders’ equity		233,527		237,870

	$	260,350	$	262,031