ALLEN, Texas, May 09, 2018 (GLOBE NEWSWIRE) -- Atrion Corporation (Nasdaq:ATRI) today announced revenues for the
quarter ended March 31, 2018 were $39.4 million compared with $38.5 million in the same period in 2017. Net income in the
current-year quarter totaled $8.5 million compared to $10.0 million in last year’s first quarter, with diluted earnings per share
for the first quarter of 2018 at $4.57 compared to $5.36 in the first quarter of 2017.
Commenting on the Company’s results for the first quarter of 2018 compared to the same period last year, David
A. Battat, President & CEO, said, “As discussed in our recent press release announcing full year 2017 and fourth quarter results,
net income and EPS comparisons throughout 2018 will be distorted as a result of the Tax Cuts and Jobs Act as well as non-recurring
tax benefits recorded in the first two quarters of last year. While we are pleased with a 10% increase in earnings per diluted
share as adjusted to exclude some of those tax benefits, we believe the best measures of comparative performance with prior-year
periods are sales and operating income. Operating income for the just ended quarter was $11.4 million compared to $11.3 million in
the first quarter of 2017.”
Mr. Battat continued, “Revenues were up 2% compared to the first quarter of 2017. Growth in Fluid Delivery and
Cardiovascular sales, which collectively account for more than 80% of our overall revenue, was largely offset by sales declines in
Ophthalmology and in marine safety products in our Other category.” Mr. Battat added, “Despite the small increase in net
revenue and higher costs for labor and materials in the current year period, the ratio of operating income to sales was 29%, the
same highly profitable rate we saw in the comparable 2017 quarter. This reflects our continued focus on proprietary products,
operational efficiency and customer service.” Mr. Battat noted, “We hold a strategic equity investment in a publicly traded company
that provides research and development consulting services in the healthcare industry. New accounting rules took effect this year
requiring that changes in the market value of such investments be reflected in each quarter’s results. In the first quarter of
2018, we took a charge of $778,000 reflecting an unrealized investment loss in these securities. Because this strategic
relationship has been valuable to our own product development efforts, we have no plans to sell the stock we hold in that company.
Future increases or decreases in the stock price of that company will similarly be reflected in our net income and EPS outcomes.”
Mr. Battat concluded, “During the quarter, we added $4.2 million to our balance of cash and long and short term investments
bringing the total to $78.9 million as of March 31, 2018.”
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
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 reflection in our net income and EPS of future increases or decreases in the stock price of a company in which we
invested. 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.
|
ATRION CORPORATION |
CONSOLIDATED STATEMENTS OF
INCOME |
(In thousands, except per share
data) |
(Unaudited) |
|
|
|
Three Months Ended
March 31,
|
|
2018 |
|
2017 |
Revenues |
$ |
39,401 |
|
|
$ |
38,504 |
|
Cost of goods sold |
|
20,450 |
|
|
|
19,873 |
|
Gross profit |
|
18,951 |
|
|
|
18,631 |
|
Operating expenses |
|
7,585 |
|
|
|
7,304 |
|
Operating income |
|
11,366 |
|
|
|
11,327 |
|
|
|
|
|
Interest and dividend income |
|
330 |
|
|
|
149 |
|
Other investment income (loss) |
|
(789 |
) |
|
|
-- |
|
Income before income taxes |
|
10,907 |
|
|
|
11,476 |
|
Income tax provision |
|
(2,420 |
) |
|
|
(1,526 |
) |
Net income |
|
8,487 |
|
|
|
9,950 |
|
|
|
|
|
|
|
|
|
Income per basic share |
$ |
4.58 |
|
|
$ |
5.42 |
|
|
|
|
|
Weighted average basic shares outstanding |
|
1,852 |
|
|
|
1,835 |
|
|
|
|
|
|
|
|
|
Income per diluted share |
$ |
4.57 |
|
|
$ |
5.36 |
|
|
|
|
|
Weighted average diluted shares outstanding |
|
1,856 |
|
|
|
1,855 |
|
|
|
|
|
|
|
|
|
|
ATRION CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
|
|
|
|
|
Mar. 31, |
|
Dec. 31, |
ASSETS |
2018 |
|
2017 |
|
(Unaudited) |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
20,181 |
|
$ |
30,136 |
Short-term investments |
|
34,795 |
|
|
35,468 |
Total cash and short-term investments |
|
54,976 |
|
|
65,604 |
Accounts receivable |
|
20,604 |
|
|
17,076 |
Inventories |
|
29,907 |
|
|
29,354 |
Prepaid expenses and other |
|
2,064 |
|
|
3,199 |
Total current assets |
|
107,551 |
|
|
115,233 |
Long-term investments |
|
23,953 |
|
|
9,136 |
Property, plant and equipment, net |
|
67,485 |
|
|
66,369 |
Other assets |
|
13,264 |
|
|
13,042 |
|
|
|
|
|
$ |
212,253 |
|
$ |
203,780 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
11,183 |
|
|
9,622 |
Line of credit |
|
-- |
|
|
-- |
Other non-current liabilities |
|
10,102 |
|
|
9,770 |
Stockholders’ equity |
|
190,968 |
|
|
184,388 |
|
|
|
|
|
$ |
212,253 |
|
$ |
203,780 |
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(In thousands, except per share data)
Included in our news release is a non-GAAP financial measure that is calculated by excluding certain tax
benefits that are included in financial measures determined in accordance with GAAP. We have provided this non-GAAP measure
as an additional tool for investors to better understand our operating results and to facilitate a comparison of the periods
shown. This measure should be considered in addition to, rather than as a substitute for, GAAP measures of the Company's
performance. The table below provides a reconciliation of this non-GAAP financial measure with the most directly comparable
GAAP financial measure.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
%
|
|
2018 |
|
2017 |
|
Increase
(Decrease) |
GAAP net income |
$ |
8,487 |
|
$ |
9,950 |
|
|
Minus tax benefit related to employee stock compensation |
|
23 |
|
|
2,270 |
|
|
Adjusted net income (non-GAAP) |
$ |
8,464 |
|
$ |
7,680 |
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
1,856 |
|
|
1,855 |
|
|
|
|
|
|
|
|
Adjusted income per diluted share (non-GAAP) |
$ |
4.56 |
|
$ |
4.14 |
|
10 |
% |
|
|
|
|
|
|
GAAP income per diluted share |
$ |
4.57 |
|
$ |
5.36 |
|
(15 |
%) |
|
|
|
|
|
|
|
|
|