Atrion Reports Fourth Quarter and Full Year 2010 ResultsEPS up 27% for the Quarter and 19% for the Year Over Adjusted EPS for Prior Periods
ALLEN, TX -- (Marketwire - February 18, 2011) - Atrion Corporation (NASDAQ: ATRI) announced today that revenues and earnings were higher for the fourth quarter and the full year 2010 compared to the quarter and year ended December 31, 2009. Revenues for the fourth quarter of 2010 were $26.6 million compared to $24.4 million in the same period of 2009, representing a 9% increase. Diluted earnings per share for the quarter ended December 31, 2010 were $2.67, up 27% from adjusted diluted EPS of $2.10 for the fourth quarter of 2009, as described below.
Commenting on the Company's performance for the fourth quarter of 2010 compared to the fourth quarter of 2009, Emile A. Battat, Chairman & CEO, said, "We are extremely pleased with the operating performance of the Company in the fourth quarter of 2010. Increased revenues and a continued shift in sales mix towards higher margin proprietary products helped increase our gross margin for the fourth quarter of 2010 to 48% from 45% in the same period in 2009. Net income and diluted EPS registered outstanding increases of 28% and 27%, respectively, compared to fourth quarter 2009 adjusted net income and adjusted diluted EPS. In December 2010, the Federal R&D tax credit was extended retroactively, allowing us to book the full benefit for the year in the fourth quarter. Excluding the portion of the benefit attributable to prior quarters, the increase in net income and diluted EPS would have been slightly reduced to 26% and 25%, respectively."
For the full year 2010, Atrion's revenues increased 8% to $108.6 million from $100.6 million in 2009. Net income per diluted share of $10.32 in 2010 was 19% higher than adjusted net income of $8.68 per diluted share in 2009.
As previously reported, the Company has terminated its defined benefit pension plans and during the fourth quarter of 2009 recorded a pension termination settlement charge of $1.0 million, or $.32 per diluted share. Adjusted net income for 2009 excludes the $1.0 million settlement charge and adjusted diluted EPS for the fourth quarter and full year of 2009 exclude the $.32 per diluted share settlement charge. On a GAAP basis, net income per diluted share was $1.78 for the fourth quarter of 2009 and $8.36 for the full year of 2009.
Mr. Battat spoke to the results of 2010 compared to 2009 stating, "For the year as a whole, we are delighted with our organic growth in revenues compared to 2009. Each of our major product categories showed an increase of 8 to 11%, except for ophthalmology which was essentially flat. The 19% increase in EPS represents the 12th consecutive year of double-digit growth in earnings per share, excluding the pension termination settlement charge in 2009." Mr. Battat added, "In recognition of the Company's strong financial position, the Board of Directors returned to our shareholders $18 million in special cash dividends during 2010. Despite these dividend payments, cash, short and long term investments increased by $5.3 million from the level at the end of 2009."
Atrion Corporation develops and manufactures products primarily for medical applications. The Company's website is www.atrioncorp.com.
ATRION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Revenues $ 26,630 $ 24,403 $ 108,569 $ 100,643
Cost of goods sold 13,748 13,410 57,655 55,312
--------- --------- --------- ---------
Gross profit 12,882 10,993 50,914 45,331
Operating expenses:
Pension Charge -- 989 -- 989
Other operating expenses 5,127 4,711 19,937 19,338
--------- --------- --------- ---------
Total operating expenses 5,127 5,700 19,937 20,327
--------- --------- --------- ---------
Operating income 7,755 5,293 30,977 25,004
Interest income (expense), net 320 187 1,009 578
Other income, net -- 1 2 2
--------- --------- --------- ---------
Income before provision for
income taxes 8,075 5,481 31,988 25,584
Income tax provision (2,652) (1,889) (11,036) (8,741)
--------- --------- --------- ---------
Net income $ 5,423 $ 3,592 $ 20,952 $ 16,843
========= ========= ========= =========
--------- --------- --------- ---------
Net income per basic share $ 2.69 $ 1.81 $ 10.38 $ 8.51
========= ========= ========= =========
Weighted average basic shares
outstanding 2,013 1,980 2,018 1,979
========= ========= ========= =========
--------- --------- --------- ---------
Net income per diluted
share $ 2.67 $ 1.78* $ 10.32 $ 8.36*
========= ========= ========= =========
Weighted average diluted shares
outstanding 2,028 2,023 2,030 2,015
========= ========= ========= =========
*Includes a $.32 per share net non-cash charge resulting from the
settlement of the termination of defined benefit pension plans
(see calculations in Table 1).
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31, Dec. 31,
ASSETS 2010 2009
------------- -------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 10,670 $ 20,694
Short-term investments 10,715 4,230
------------- -------------
Total cash and short-term investments 21,385 24,924
Accounts receivable 11,521 11,026
Inventories 17,400 18,675
Prepaid expenses and other 1,050 981
Deferred income taxes 625 596
------------- -------------
Total current assets 51,981 56,202
Long-term investments 20,291 11,477
Property, plant and equipment, net 50,664 53,141
Other assets 11,716 11,929
------------- -------------
$ 134,652 $ 132,749
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 7,752 6,682
Line of credit -- --
Other non-current liabilities 10,283 9,336
Stockholders' equity 116,617 116,731
------------- -------------
$ 134,652 $ 132,749
============= =============
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The Company has provided certain non-GAAP financial measures that exclude the effect of a pension termination settlement charge or that exclude a portion of the Federal R&D tax credit. Management has provided these non-GAAP measures as an additional tool for investors to evaluate the Company's performance. These measures should be considered in addition to, rather than as a substitute for, GAAP measures of the Company's performance. Table 1 below provides a reconciliation related to the pension termination settlement charge taken in 2009. Table 2 below provides a reconciliation related to the Federal R&D tax credit taken in 2010 and the pension termination settlement charge taken in 2009.
Table 1
(in thousands, except per share data)
Three Three Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
December December December December
31, 2010 31, 2009 31, 2010 31, 2009
----------- ----------- ----------- -----------
GAAP net income $ 5,423 $ 3,592 $ 20,952 $ 16,843
----------- ----------- ----------- -----------
Plus pension termination
settlement charge, net of
tax(1) - 643 - 643
=========== =========== =========== ===========
Adjusted net income
(non-GAAP) $ 5,423 $ 4,235 $ 20,952 $ 17,486
----------- ----------- ----------- -----------
Income per diluted share:
----------- ----------- ----------- -----------
GAAP EPS $ 2.67 $ 1.78 $ 10.32 $ 8.36
----------- ----------- ----------- -----------
Plus pension termination
settlement charge, net of
tax(1) (calculated below) - 0.32 - 0.32
=========== =========== =========== ===========
Adjusted EPS (non-GAAP) $ 2.67 $ 2.10 $ 10.32 $ 8.68
----------- ----------- ----------- -----------
Adjustment to net income - $ 643 - $ 643
----------- ----------- ----------- -----------
Diluted shares outstanding 2,028 2,015 2,030 2,015
=========== =========== =========== ===========
Adjustment to income per
diluted share - $ 0.32 - $ 0.32
----------- ----------- ----------- -----------
(1) Calculated using an effective tax rate of 35% for 2009.
Table 2
(in thousands, except per share amounts)
Three Months Three Months
Ended Ended
December 31, 2010 December 31, 2009
------------------- -------------------
GAAP net income $ 5,423 $ 3,592
------------------- -------------------
Minus R&D tax credit adjustment (88) -
------------------- -------------------
Plus pension termination settlement
charge, net of tax(1) - 643
------------------- -------------------
Adjusted net income (non-GAAP) $ 5,335 $ 4,235
------------------- -------------------
Income per diluted share:
------------------- -------------------
GAAP EPS $ 2.67 $ 1.78
------------------- -------------------
Minus R&D tax credit adjustment
(calculated below) (.04) -
------------------- -------------------
Plus pension termination settlement
charge, net of tax(1) - 0.32
------------------- -------------------
Adjusted EPS (non-GAAP) $ 2.63 $ 2.10
------------------- -------------------
Adjustment to net income $ (88) $ 643
------------------- -------------------
Diluted shares outstanding 2,028 2,023
------------------- -------------------
Adjustments to income per diluted
share $ (.04) $ 0.32
------------------- -------------------
(1) Calculated using an effective tax rate of 35% for 2009.
Contact:
Jeffery Strickland
Vice President and Chief Financial Officer
(972) 390-9800
