ALLEN, TX -- (Marketwired - August 06, 2014) - Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter ended June 30, 2014 revenues totaled $35.0 million compared with $32.6 million in the same period in 2013. On a diluted per share basis, earnings for the period increased to $3.48 as compared to $3.22 in the same period of last year. Net income for the second quarter totaled $6.9 million compared to $6.5 million in last year's second quarter.
Commenting on the Company's results, David A. Battat, President & CEO, stated "I am pleased with our performance in the second quarter. Compared to the same period of last year, operating income was up 8% while sales were up 7%, reflecting growth in our fluid delivery and cardiovascular products of 13% and 7%, respectively. Net income was up 6%, despite a tax rate 4% higher than in the comparable 2013 quarter largely due to government inaction on the renewal of R&D tax credits." Mr. Battat added "Our increased R&D expenditures reflect an ongoing effort to expand our product portfolio."
Mr. Battat added "During the quarter we devoted much effort and expense to travel and legal work related to potential acquisition or collaboration targets. Due to concerns about valuation, we did not conclude any transaction. We remain highly disciplined in our approach to all investments. Consistent with this approach, we intend to scale down acquisition efforts while we wait for valuations of privately held companies to reach levels that offer a more attractive return on capital." Mr. Battat concluded "In the second quarter, we spent $7.3 million to repurchase 23,512 shares of our stock. Compared to the first quarter of 2014, second quarter buybacks were higher by $2.6 million while payments for estimated taxes were up by $7.7 million. Despite these substantial increases in cash utilization, we ended the quarter with cash and marketable securities of $51.7 million."
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 our ongoing acquisition efforts. 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.
ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2014 2013 2014 2013
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Revenues $ 35,025 $ 32,605 $ 71,444 $ 66,097
Cost of goods sold 17,616 16,971 36,647 34,754
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Gross profit 17,409 15,634 34,797 31,343
Operating expenses 7,152 6,139 13,840 12,448
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Operating income 10,257 9,495 20,957 18,895
Interest income 364 346 664 695
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Income before income taxes 10,621 9,841 21,621 19,590
Income tax provision (3,739) (3,335) (7,539) (6,450)
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Net income $ 6,882 $ 6,506 $ 14,082 $ 13,140
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Income per basic share $ 3.51 $ 3.23 $ 7.14 $ 6.51
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Weighted average basic shares
outstanding 1,960 2,015 1,971 2,017
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Income per diluted share $ 3.48 $ 3.22 $ 7.09 $ 6.50
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Weighted average diluted shares
outstanding 1,977 2,019 1,987 2,021
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ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2014 2013
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(Unaudited)
Current assets:
Cash and cash equivalents $ 23,521 $ 28,559
Short-term investments 18,146 18,351
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Total cash and short-term investments 41,667 46,910
Accounts receivable 16,407 14,164
Inventories 27,208 26,266
Prepaid expenses and other 2,488 1,603
Deferred income taxes 1,376 1,376
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Total current assets 89,146 90,319
Long-term investments 10,000 10,069
Property, plant and equipment, net 59,917 58,328
Other assets 13,267 13,350
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$ 172,330 $ 172,066
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 9,994 9,364
Line of credit -- --
Other non-current liabilities 12,466 13,708
Stockholders' equity 149,870 148,994
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$ 172,330 $ 172,066
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Contact: Jeffery Strickland Vice President and Chief Financial Officer (972) 390-9800