Diluted EPS Increases by 30%
ALLEN, TX -- (Marketwire - August 04, 2011) - Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter of 2011 diluted earnings per share were up 30% and revenues were up 12% compared to the results for the second quarter of 2010.
Atrion's revenues for the quarter ended June 30, 2011 totaled $31.1 million compared with $27.9 million in the same period in 2010. On a diluted per share basis, earnings for the period increased to $3.46 as compared to $2.67 in the same period of last year. Net income for the second quarter totaled $7.0 million compared to $5.4 million in last year's second quarter.
Commenting on the Company's performance for the 2011 second quarter compared with the same period last year, David A. Battat, President and CEO, said, "We are very pleased with the growth in revenues and earnings. Revenues were higher in all major product categories. Some of the increases in our sales in the current-year period were due to inventory replenishment by customers who allowed safety stock levels to be depleted during the economic turbulence of the prior years." Mr. Battat continued, "As in the first quarter of this year, lower depreciation and amortization charges compared to the same period last year contributed some five percentage points to this quarter's 30% increase in diluted earnings per share. The lower comparative depreciation and amortization charges experienced in the first two quarters of this year are now behind us. Our capital investment program to expand capacity, launch new products, and continue to raise quality levels is now in full swing. During the quarter we spent $3.6 million on capital additions compared to just $1.0 million in the second quarter of 2010. As this pace of expenditures continues, and the new equipment is placed in service, our depreciation charges for each of the next four quarters should steadily rise and exceed those of the prior-year comparable periods. These investments should position us well for future growth." Mr. Battat added, "Cash and investments increased by $1.5 million in the quarter, a substantially smaller amount than in prior quarters, reflecting the higher capital additions as well as larger working capital requirements needed to support our growth. As of June 30, 2011, cash and investments totaled $47.7 million."
Revenues for the first six months of 2011 of $61.7 million were 13% higher than revenues of $54.8 million in the first half of 2010. Diluted earnings per share for the first half of 2011 increased 37% to $6.84 from $4.98 in the first six months of 2010.
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 future depreciation expenses, future capital expenditures and the effect of our capital investment program on future growth. Words such as "expects," "believes," "anticipates," "intends," "should," "plans," 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; intellectual property and product liability claims and product recalls; financial condition or results of operation. 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 Ended Six Months Ended
June 30, June 30,
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2011 2010 2011 2010
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Revenues $ 31,139 $ 27,881 $ 61,728 $ 54,782
Cost of goods sold 14,684 14,851 29,721 29,727
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Gross profit 16,455 13,030 32,007 25,055
Operating expenses 6,018 4,850 11,474 9,837
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Operating income 10,437 8,180 20,533 15,218
Interest income 342 213 668 374
Other income -- -- 2 1
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Income before income taxes 10,779 8,393 21,203 15,593
Income tax provision (3,760) (2,962) (7,326) (5,464)
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Net income $ 7,019 $ 5,431 $ 13,877 $ 10,129
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Income per basic share $ 3.48 $ 2.69 $ 6.88 $ 5.01
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Weighted average basic shares
outstanding 2,019 2,022 2,018 2,020
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Income per diluted share $ 3.46 $ 2.67 $ 6.84 $ 4.98
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Weighted average diluted
shares outstanding 2,030 2,033 2,030 2,032
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ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2011 2010
----------- -----------
(Unaudited)
Current assets:
Cash and cash equivalents $ 9,744 $ 10,670
Short-term investments 19,166 10,715
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Total cash and short-term investments 28,910 21,385
Accounts receivable 14,835 11,521
Inventories 21,088 17,400
Prepaid expenses and other 2,780 1,050
Deferred income taxes 625 625
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Total current assets 68,238 51,981
Long-term investments 18,742 20,291
Property, plant and equipment, net 53,134 50,664
Other assets 11,644 11,716
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$ 151,758 $ 134,652
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 10,745 7,752
Line of credit -- --
Other non-current liabilities 11,736 10,283
Stockholders' equity 129,277 116,617
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$ 151,758 $ 134,652
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Contact: Jeffery Strickland Vice President and Chief Financial Officer (972) 390-9800