Atrion Reports Third Quarter Results
November 09 2020 - 4:30PM
Atrion Corporation (NASDAQ: ATRI) today announced that for the
third quarter ended September 30, 2020 revenues totaled $33.8
million compared with $38.9 million for the same period in 2019.
Net income for the third quarter of 2020 totaled $7.2 million as
compared to $9.6 million for the same period in 2019, with diluted
earnings per share for the third quarter of 2020 at $3.95 compared
to $5.15 for the third quarter of 2019.
Commenting on the Company’s quarterly results for the third
quarter of 2020 compared to the same period last year, David A.
Battat, President & CEO, stated, “Our results for the quarter
were disappointing, with revenues down 13%, operating income down
27% and diluted EPS down 23%. In the second quarter of this year,
our revenues began to weaken as our hospital and OEM customers
reported a significant slowdown in surgeries due to the need for
Covid-19 beds in hotspots, as well as continued patient reluctance
to schedule surgeries. This trend accelerated in the third quarter,
and we expect similar weakness in the fourth quarter of this year.
Our customers are reporting that these declines in procedures are
deferred rather than never to be performed, and, therefore, they
expect to see a gradual recovery in 2021 as patients can no longer
delay the need for care and hospitals adapt to expand their
surgical capacity.”
Mr. Battat continued, “We never make excuses for subpar results,
but we remain optimistic. Despite the negative comparisons, the
Company remains profitable and debt-free, while holding cash and
short and long investments totaling $88.2 million as of September
30, 2020.”
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 the demand for our products in the fourth quarter of 2020
and an increase in procedures in 2021. 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 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 Strickland |
|
|
Vice President and Chief Financial Officer |
|
|
(972) 390-9800 |
|
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|
|
ATRION CORPORATIONUNAUDITED CONSOLIDATED
STATEMENTS OF INCOME(In thousands, except per
share data) |
|
|
|
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
$ |
33,785 |
|
|
$ |
38,883 |
|
|
$ |
115,348 |
|
|
$ |
120,600 |
|
Cost of goods sold |
|
18,887 |
|
|
|
20,992 |
|
|
|
63,114 |
|
|
|
65,414 |
|
Gross profit |
|
14,898 |
|
|
|
17,891 |
|
|
|
52,234 |
|
|
|
55,186 |
|
Operating expenses |
|
7,315 |
|
|
|
7,441 |
|
|
|
22,891 |
|
|
|
22,732 |
|
Operating income |
|
7,583 |
|
|
|
10,450 |
|
|
|
29,343 |
|
|
|
32,454 |
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
303 |
|
|
|
733 |
|
|
|
1,161 |
|
|
|
1,896 |
|
Other investment income
(loss) |
|
678 |
|
|
|
(106 |
) |
|
|
5 |
|
|
|
265 |
|
Income before income taxes |
|
8,564 |
|
|
|
11,077 |
|
|
|
30,509 |
|
|
|
34,615 |
|
Income tax provision |
|
(1,321 |
) |
|
|
(1,482 |
) |
|
|
(5,764 |
) |
|
|
(5,918 |
) |
Net income |
$ |
7,243 |
|
|
$ |
9,595 |
|
|
$ |
24,745 |
|
|
$ |
28,697 |
|
|
|
|
|
|
|
|
|
Income per basic share |
$ |
3.96 |
|
|
$ |
5.17 |
|
|
$ |
13.46 |
|
|
$ |
15.48 |
|
|
|
|
|
|
|
|
|
Weighted average basic shares
outstanding |
|
1,829 |
|
|
|
1,855 |
|
|
|
1,839 |
|
|
|
1,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per diluted share |
$ |
3.95 |
|
|
$ |
5.15 |
|
|
$ |
13.42 |
|
|
$ |
15.40 |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
outstanding |
|
1,834 |
|
|
|
1,862 |
|
|
|
1,844 |
|
|
|
1,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATRION CORPORATIONCONSOLIDATED BALANCE
SHEETS(In thousands) |
|
|
|
|
|
Sep 30, |
|
Dec 31, |
ASSETS |
2020 |
|
2019 |
|
(Unaudited) |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
23,996 |
|
|
$ |
45,048 |
|
Short-term investments |
|
18,779 |
|
|
|
23,766 |
|
Total cash and short-term investments |
|
42,775 |
|
|
|
68,814 |
|
Accounts receivable |
|
17,747 |
|
|
|
18,886 |
|
Inventories |
|
48,622 |
|
|
|
42,093 |
|
Prepaid expenses and other |
|
4,013 |
|
|
|
2,545 |
|
Total current assets |
|
113,157 |
|
|
|
132,338 |
|
Long-term investments |
|
45,381 |
|
|
|
31,772 |
|
Property, plant and equipment,
net |
|
91,053 |
|
|
|
84,606 |
|
Other assets |
|
13,441 |
|
|
|
13,315 |
|
|
|
|
|
|
$ |
263,032 |
|
|
$ |
262,031 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
12,699 |
|
|
|
11,274 |
|
Line of credit |
|
-- |
|
|
|
-- |
|
Other non-current
liabilities |
|
12,215 |
|
|
|
12,887 |
|
Stockholders’ equity |
|
238,118 |
|
|
|
237,870 |
|
|
|
|
|
|
$ |
263,032 |
|
|
$ |
262,031 |
|
|
|
|
|
|
|
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