Atrion Reports Second Quarter Results and Announces Dividend IncreaseALLEN, TX -- (Marketwired - August 09, 2016) - Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter ended June 30, 2016 revenues totaled $36.1 million compared with $37.7 million in the same period in 2015. On a diluted per share basis, earnings for the period increased to $4.02 as compared to $3.99 in the same period of last year. Net income for the second quarter totaled to $7.5 million in both years.
Commenting on the Company's results for the second quarter of 2016 compared to the same period last year, David A. Battat, President & CEO, said, "Overall sales were down 4%, reflecting lower prices in Ophthalmology following patent expirations and the impact of exchange rates on all our exports." Mr. Battat continued, "Cost of goods remained unchanged, as lower revenues reflected lower prices rather than volume. As a result, operating income was down 9% despite lower operating expenses in the period." Mr. Battat stated, "Net income for the second quarter was basically flat, benefitting from our adoption of a new accounting rule concerning employee share-based compensation that reduced our taxes from an effective rate of 35% in the second quarter of 2015 to 27% in the current year period, resulting in a $623,000 tax savings. Diluted EPS was up 1%, with the number of diluted shares slightly lower than in last year's second quarter." Mr. Battat added, "During the quarter we did not engage in stock buybacks while adding $2.3 million to our cash and short and long term investments, bringing the total to $41.4 million as of June 30, 2016." Mr. Battat stated, "For the remaining quarters of 2016, we expect to continue to see lower realized prices, while additional tax benefits from the new accounting rule are uncertain and will be uneven going forward."
Mr. Battat concluded, "Our Board of Directors, confident in our long term growth, has approved a quarterly dividend increase from $0.90 to $1.05 per share payable on September 30, 2016 to stockholders of record as of September 15, 2016."
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 prices for products for the remaining quarters in 2016, future tax benefits from the new accounting rule and the Company's long-term growth. 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,
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2016 2015 2016 2015
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Revenues $ 36,655 $ 37,655 $ 72,358 $ 75,979
Cost of goods sold 18,928 18,871 37,578 38,671
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Gross profit 17,215 18,784 34,780 37,308
Operating expenses 7,141 7,664 14,241 14,702
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Operating income 10,074 11,120 20,539 22,606
Interest income 85 328 208 505
Other income (expense), net 36 -- (309) --
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Income before income taxes 10,195 11,448 20,438 23,111
Income tax provision (2,745) (3,974) (6,042) (8,036)
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Net income $ 7,450 $ 7,474 $ 14,396 $ 15,075
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Income per basic share $ 4.09 $ 4.04 $ 7.90 $ 8.10
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Weighted average diluted shares
outstanding 1,822 1,850 1,823 1,862
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Income per diluted share $ 4.02 $ 3.99 $ 7.76 $ 8.00
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Weighted average diluted shares
outstanding 1,853 1,872 1,855 1,884
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ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2016 2015
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(Unaudited)
Current assets:
Cash and cash equivalents $ 30,817 $ 28,346
Short-term investments 6 44
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Total cash and short-term investments 30,823 28,390
Accounts receivable 18,833 16,620
Inventories 31,167 29,771
Prepaid expenses and other 3,815 2,934
Deferred income taxes 580 580
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Total current assets 85,218 78,295
Long-term investments 10,617 9,866
Property, plant and equipment, net 64,289 63,314
Other assets 12,865 12,861
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$ 172,989 $ 164,336
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 8,236 9,316
Line of credit -- --
Other non-current liabilities 11,167 10,922
Stockholders' equity 153,586 144,098
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$ 172,989 $ 164,336
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Jeffery Strickland
Vice President and Chief Financial Officer
(972) 390-9800
