Atrion Reports Third Quarter Results
November 08 2021 - 4:00PM
Atrion Corporation (NASDAQ: ATRI) today announced its results for
the third quarter ended September 30, 2021.
Revenues totaled $42.9 million compared to $33.8
million for the same period in 2020. Net income for the third
quarter of 2021 totaled $8.3 million, an increase of $1.1 million
compared to $7.2 million for the same period in 2020, with diluted
earnings per share for the third quarter of 2021 at $4.58 compared
to $3.95 for the third quarter of 2020.
Commenting on the results for the third quarter, David Battat,
President and CEO, stated, “We have spent this year focusing on
expanding our customer base, increasing business with existing
customers by providing seamless deliveries in the face of global
supply chain shortages, and investing to further improve quality
and manufacturing efficiency.” Mr. Battat added, “Thanks to these
efforts, along with the gradual resumption of surgeries and
procedures at hospitals and physician offices, I am especially
pleased to report that in the just-ended third quarter revenues
were up 27% compared to the third quarter of 2020, with every major
product category showing improvements.”
Mr. Battat continued, “Our results were favorably impacted by a
42% increase in Cardiovascular revenues compared to the third
quarter of 2020 when many surgeries were postponed due to COVID-19.
Excluding Cardiovascular, our revenues from all other major
products were up 19% compared to last year’s third quarter.” Mr.
Battat added, “Although this 42% increase was extraordinary, we
believe our Cardiovascular products are well positioned for solid
growth. After several years of R&D investments, we have brought
highly innovative new products to the market over the past year for
both minimally invasive balloon-based procedures as well as open
heart surgeries. With an aging population, we expect this area to
provide significant long term growth, albeit at a more modest pace
than that reflected in the above quarter-to-quarter
comparison.”
Mr. Battat continued, “I am pleased to report that, after
extensive planning, we have begun construction to expand one of our
facilities to meet anticipated capacity needs. This project will
increase the Company’s overall manufacturing space by about a
third.”
Addressing the outlook for the remainder of the year, Mr. Battat
said, “We are experiencing higher costs for wages, labor, and raw
materials as evidenced by our gross profit margins dropping to 41%
in the current-year period from 44% in last year’s third quarter.
Despite these higher costs, we continue to expect increases in
revenue and operating income of approximately 25% in fourth quarter
of this year compared to fourth quarter 2020.
Cash and short and long term investments totaled $78.1 million
as of September 30, 2021, following the purchases of 10,705 shares
of our common stock in the third quarter at an average price of
$607 per share, for a total cost of $6.5 million.”
Atrion Corporation develops and manufactures
products primarily for medical applications. The Company’s website
cite 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
growth in Cardiovascular products, increase in manufacturing space,
and increases in revenue and operating income in the fourth quarter
of 2021. 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 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 |
ATRION
CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF
INCOME(In thousands, except per share
data)
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenues |
$ |
42,855 |
|
|
$ |
33,785 |
|
|
$ |
124,716 |
|
|
$ |
115,348 |
|
Cost of goods
sold |
|
25,065 |
|
|
|
18,887 |
|
|
|
72,720 |
|
|
|
63,114 |
|
Gross
profit |
|
17,790 |
|
|
|
14,898 |
|
|
|
51,996 |
|
|
|
52,234 |
|
Operating
expenses |
|
8,312 |
|
|
|
7,315 |
|
|
|
23,792 |
|
|
|
22,891 |
|
Operating
income |
|
9,478 |
|
|
|
7,583 |
|
|
|
28,204 |
|
|
|
29,343 |
|
|
|
|
|
|
|
|
|
Interest and dividend
income |
|
281 |
|
|
|
303 |
|
|
|
680 |
|
|
|
1,161 |
|
Other investment income
(loss) |
|
(173 |
) |
|
|
678 |
|
|
|
852 |
|
|
|
5 |
|
Other
income |
|
-- |
|
|
|
-- |
|
|
|
67 |
|
|
|
-- |
|
Income before income
taxes |
|
9,586 |
|
|
|
8,564 |
|
|
|
29,803 |
|
|
|
30,509 |
|
Income tax
provision |
|
(1,309 |
) |
|
|
(1,321 |
) |
|
|
(4,875 |
) |
|
|
(5,764 |
) |
Net
income |
$ |
8,277 |
|
|
$ |
7,243 |
|
|
$ |
24,928 |
|
|
$ |
24,745 |
|
|
|
|
|
|
|
|
|
Income per basic
share |
$ |
4.59 |
|
|
$ |
3.96 |
|
|
$ |
13.71 |
|
|
$ |
13.46 |
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding |
|
1,803 |
|
|
|
1,829 |
|
|
|
1,818 |
|
|
|
1,839 |
|
|
|
|
|
|
|
|
|
Income per diluted
share |
$ |
4.58 |
|
|
$ |
3.95 |
|
|
$ |
13.68 |
|
|
$ |
13.42 |
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
1,806 |
|
|
|
1,834 |
|
|
|
1,822 |
|
|
|
1,844 |
|
ATRION
CORPORATIONCONSOLIDATED BALANCE
SHEETS(In thousands)
|
Sep 30, |
|
Dec. 31, |
ASSETS |
2021 |
|
2020 |
|
(Unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
23,656 |
|
$ |
22,450 |
Short-term investments |
|
29,590 |
|
|
19,258 |
Total cash and short-term investments |
|
53,246 |
|
|
41,708 |
Accounts receivable |
|
25,221 |
|
|
16,445 |
Inventories |
|
47,307 |
|
|
50,298 |
Prepaid expenses and other |
|
7,992 |
|
|
3,868 |
Total current assets |
|
133,766 |
|
|
112,319 |
Long-term
investments |
|
24,898 |
|
|
46,207 |
Property, plant and
equipment, net |
|
97,069 |
|
|
94,935 |
Other assets |
|
13,201 |
|
|
13,429 |
|
|
|
|
|
$ |
268,934 |
|
$ |
266,890 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
liabilities |
|
14,816 |
|
|
13,636 |
Line of
credit |
|
-- |
|
|
-- |
Other non-current
liabilities |
|
14,839 |
|
|
12,812 |
Stockholders’
equity |
|
239,279 |
|
|
240,442 |
|
|
|
|
|
$ |
268,934 |
|
$ |
266,890 |
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