Atrion Reports Second Quarter ResultsDiluted EPS Increases by 12%
ALLEN, TX -- (Marketwire - August 03, 2009) - Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter of 2009 diluted earnings per share were up 12% and revenues were up 7% compared to the results for the second quarter of 2008.
Atrion's revenues for the quarter ended June 30, 2009 totaled $26,001,000 compared with $24,242,000 in the same period in 2008. On a diluted per share basis, earnings for the period increased to $2.30 as compared to $2.06 in the same quarter of last year. Net income for the second quarter totaled $4,657,000 compared to $4,135,000 in last year's second quarter.
Commenting on the Company's performance for the second quarter compared to the second quarter of 2008, Emile A. Battat, Chairman and CEO, said, "We are very pleased with the growth in revenues and earnings given the general trend of declining hospital purchasing, and the slump experienced by the boating industry." Mr. Battat continued, "We are especially gratified that our gross margins improved, while we continued to hold operating expenses essentially flat. As a result, operating income for the current quarter was up 15% compared to the second quarter of 2008. Had our tax rate remained at the 33.1% experienced in the second quarter of last year, diluted EPS also would have shown a 15% increase over the prior year period. The actual 35.0% tax rate for the current year quarter reduced this growth in earnings to 12%. Cash flow remained very strong as our cash plus short and long term investments climbed to $26.2 million at the end of the second quarter, an increase of $4.8 million from the balance on March 31, 2009." Mr. Battat concluded, "Given the depressed economy, current trends impacting our customers are likely to continue for the remainder of this year and beyond. The impact on OEM suppliers tends to lag conditions in the markets they serve. Continuing softness in these markets could therefore affect us more in coming quarters than in the first half of this year. Nonetheless, we remain confident in achieving at least moderate growth in diluted earnings per share in the second half of 2009 compared to the second half of 2008."
Revenues for the first six months of 2009 of $51,048,000 were 5% higher than revenues of $48,844,000 in the first half of 2008. Diluted earnings per share for the first half of 2009 increased 12% to $4.37 from $3.89 in the first six months of 2008.
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 current trends impacting the Company's customers for the remainder of 2009 and beyond, the effects of softness in certain markets, and growth in diluted earnings per share in the second half of 2009. Words such as "expects," "believes," "anticipates," "intends," 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.
ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenues $ 26,001 $ 24,242 $ 51,048 $ 48,844
Cost of goods sold 13,970 13,137 27,929 27,059
--------- --------- --------- ---------
Gross profit 12,031 11,105 23,119 21,785
Operating expenses 4,994 4,974 9,974 10,200
--------- --------- --------- ---------
Operating income 7,037 6,131 13,145 11,585
Interest income (expense), net 127 49 229 85
Other income (expense), net -- 1 1 1
--------- --------- --------- ---------
Income before income taxes 7,164 6,181 13,375 11,671
Income tax provision (2,507) (2,046) (4,584) (3,880)
--------- --------- --------- ---------
Net income $ 4,657 $ 4,135 $ 8,791 $ 7,791
========= ========= ========= =========
Income per basic share $ 2.35 $ 2.10 $ 4.45 $ 3.99
========= ========= ========= =========
Weighted average basic shares
outstanding 1,980 1,965 1,977 1,954
========= ========= ========= =========
Income per diluted share $ 2.30 $ 2.06 $ 4.37 $ 3.89
========= ========= ========= =========
Weighted average diluted shares
outstanding 2,021 2,005 2,012 2,004
========= ========= ========= =========
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2009 2008
----------- -----------
(Unaudited)
Current assets:
Cash and cash equivalents $ 13,942 $ 12,056
Short-term investments 7,790 4,692
----------- -----------
Total cash and short-term investments 21,732 16,748
Accounts receivable 11,810 10,875
Inventories 18,786 20,169
Prepaid expenses and other 1,369 719
Deferred income taxes 596 596
----------- -----------
Total current assets 54,293 49,107
Long-term investments 4,420 --
Property, plant and equipment, net 53,510 53,370
Other assets 12,658 12,876
----------- -----------
$ 124,881 $ 115,353
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 6,841 6,213
Line of credit -- --
Other non-current liabilities 8,816 8,298
Stockholders' equity 109,224 100,842
----------- -----------
$ 124,881 $ 115,353
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Contact:
Jeffery Strickland
Vice President and Chief Financial Officer
(972) 390-9800
