Atrion (ATRI) 10-Q 29 Oct 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 14, 2013
Document Information
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	30-Sep-13
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	ATRI
Entity Registrant Name	ATRION CORP
Entity Central Index Key	701288
Current Fiscal Year End Date	-19
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		2,002,704

Consolidated_Statements_of_Inc

Consolidated Statements of Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues	$34,044	$30,637	$100,142	$90,565
Cost of goods sold	17,003	15,742	51,757	47,168
Gross profit	17,041	14,895	48,385	43,397
Operating expenses:
Selling	1,530	1,301	4,596	4,208
General and administrative	3,651	3,164	10,952	10,033
Research and development	1,147	753	3,229	2,569
Operating Expenses, Total	6,328	5,218	18,777	16,810
Operating income	10,713	9,677	29,608	26,587
Interest income	310	411	1,005	1,060
Other income, net				2
Nonoperating Income (Expense), Total	310	411	1,005	1,062
Income before provision for income taxes	11,023	10,088	30,613	27,649
Provision for income taxes	-3,350	-2,829	-9,800	-8,914
Net income	$7,673	$7,259	$20,813	$18,735
Net income per basic share	$3.82	$3.60	$10.33	$9.30
Weighted average basic shares outstanding	2,007	2,014	2,014	2,015
Net income per diluted share	$3.81	$3.59	$10.31	$9.24
Weighted average diluted shares outstanding	2,016	2,022	2,019	2,028
Dividends per common share	$0.64	$0.56	$1.76	$1.54

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$30,724	$7,999
Short-term investments	8,448	8,182
Accounts receivable	16,183	13,054
Inventories	26,488	23,779
Prepaid expenses and other current assets	1,592	3,110
Deferred income taxes	623	623
Total Current Assets	84,058	56,747
Long-term investments	20,104	28,433
Property, plant and equipment	127,851	124,180
Less accumulated depreciation and amortization	70,163	64,912
Property plant and equipment net	57,688	59,268
Other assets and deferred charges:
Patents	716	837
Goodwill	9,730	9,730
Other	812	795
Prepaid Expense and Other Assets, Noncurrent, Total	11,258	11,362
Total assets	173,108	155,810
Current liabilities:
Accounts payable and accrued liabilities	9,268	6,743
Accrued income and other taxes	1,636	465
Total Current Liabilities	10,904	7,208
Line of credit
Other non-current liabilities	12,968	13,774
Stockholders' equity:
Common stock, par value $0.10 per share; authorized 10,000 shares, issued 3,420 shares	342	342
Paid-in capital	31,203	29,998
Retained earnings	169,883	152,630
Treasury shares,1,417 at September 30, 2013 and 1,399 at December 31, 2012, at cost	-52,192	-48,142
Total stockholders' equity	149,236	134,828
Total liabilities and stockholders' equity	$173,108	$155,810

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Per Share data, unless otherwise specified
Common stock, par value	$0.10	$0.10
Common stock, authorized	10,000	10,000
Common stock, issued	3,420	3,420
Treasury, shares	1,417	1,399

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$20,813	$18,735
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,388	5,563
Deferred income taxes	-608	1,097
Stock-based compensation	1,215	1,106
Net change in accrued interest, premiums, and discounts on investments	424	556
Other	26
Net Cash Provided By Used In Operating Activities Before Changes In Operating Capital, Total	28,258	27,057
Changes in operating assets and liabilities:
Accounts receivable	-3,129	-3,356
Inventories	-2,709	70
Prepaid expenses	1,518	823
Other non-current assets	-17	-96
Accounts payable and accrued liabilities	2,525	-543
Accrued income and other taxes	1,172	135
Other non-current liabilities	-198	-723
Net Cash Provided by (Used in) Operating Activities, Total	27,420	23,367
Cash flows from investing activities:
Property, plant and equipment additions	-4,713	-7,978
Purchase of investments		-21,545
Proceeds from maturities of investments	7,639	11,750
Net Cash Provided by (Used in) Investing Activities, Total	2,926	-17,773
Cash flows from financing activities:
Shares tendered for employees' withholding taxes on stock-based compensation		-1,065
Issuance of treasury stock		153
Tax benefit related to stock-based compensation	6	929
Purchase of treasury stock	-4,086	-4,756
Dividends paid	-3,541	-3,104
Net Cash Provided by (Used in) Financing Activities, Total	-7,621	-7,843
Net change in cash and cash equivalents	22,725	-2,249
Cash and cash equivalents at beginning of period	7,999	24,590
Cash and cash equivalents at end of period	30,724	22,341
Cash paid for:
Income taxes	$7,927	$6,471

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Basis of Presentation	(1)           Basis of Presentation
	The accompanying unaudited consolidated financial statements of Atrion Corporation and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, these statements include all adjustments necessary to present a fair statement of our consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. Preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts in the financial statements and notes. Actual results could differ from those estimates. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2012 ("2012 Form 10-K").  References herein to "Atrion," the "Company," "we," "our," and "us" refer to Atrion Corporation and its subsidiaries.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2013
Inventories	(2)           Inventories
	Inventories are stated at the lower of cost or market. Cost is determined by using the first-in, first-out method. The following table details the major components of inventories (in thousands):
		September 30,		December 31,
		2013		2012
	Raw materials	$	11,081	$	10,017
	Work in process		6,877		5,268
	Finished goods		8,530		8,494
	Total inventories	$	26,488	$	23,779

Income_per_share

Income per share	9 Months Ended
	Sep. 30, 2013
Income per share	(3)           Income per share
	The following is the computation for basic and diluted income per share:
		Three Months Ended				Nine months Ended
		September 30,				September 30,
		2013		2012		2013		2012
		(in thousands, except per share amounts)
	Net income	$	7,673	$	7,259	$	20,813	$	18,735
	Weighted average basic shares outstanding		2,007		2,014		2,014		2,015
	Add:  Effect of dilutive securities		9		8		5		13
	Weighted average diluted shares outstanding		2,016		2,022		2,019		2,028
	Earnings per share:
	Basic	$	3.82	$	3.6	$	10.33	$	9.3
	Diluted	$	3.81	$	3.59	$	10.31	$	9.24
	Incremental shares from stock options and restricted stock units were included in the calculation of weighted average diluted shares outstanding using the treasury stock method. Dilutive securities representing 1,545 and 5,901 shares of common stock for the quarters ended September 30, 2013 and 2012, respectively, were excluded from the computation of weighted average diluted shares outstanding because their effect would have been anti-dilutive.

Investments

Investments	9 Months Ended
	Sep. 30, 2013
Investments	(4)           Investments
	As of September 30, 2013, we held certain investments that are required to be measured for disclosure purposes at fair value on a recurring basis. These investments are considered Level 2 investments and are all considered to be held-to-maturity securities. We consider as current assets those investments which will mature in the next 12 months. The remaining investments are considered non-current assets. The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of September 30, 2013 (in thousands):
				Gross Unrealized
		Cost		Gains		Losses		Fair Value
	Short-term Investments:
	Corporate bonds	$	8,448	$	142	$	--	$	8,590
	Long-term Investments
	Corporate bonds	$	20,104	$	426	$	--	$	20,530
	At September 30, 2013, the length of time until maturity of these securities ranged from 7.5 months to 18.5 months.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Taxes	(5)     Income Taxes
	The effective tax rate for the third quarter of 2013 was 30.4 percent, compared with 28.0 percent for the third quarter of 2012. The effective tax rate for the first nine months of 2013 was 32.0 percent, compared with 32.2 percent for the first nine months of 2012. The effective tax rates for the third quarter and first nine months of 2013 benefited from the extension of the federal research tax credit provisions included in the American Taxpayer Relief Act of 2012, which was signed into law on January 2, 2013. The effective tax rates for the third quarter and first nine months of 2012 benefited from a favorable adjustment to an uncertain tax position related to income tax credits claimed for research and development following the conclusion, in September 2012, of an Internal Revenue Service examination of our United States federal income tax returns for 2006, 2007 and 2008. We expect the effective tax rate for the remainder of 2013 to be approximately 34.0 percent.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2013
Recent Accounting Pronouncements	(6)           Recent Accounting Pronouncements
	From time to time, new accounting standards updates applicable to us are issued by the Financial Accounting Standards Board, or FASB, which we will adopt as of the specified effective date. Unless otherwise discussed, we believe the impact of recently issued standards updates that are not yet effective will not have a material impact on our consolidated financial statements upon adoption.

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Sep. 30, 2013
Major Components of Inventories	The following table details the major components of inventories (in thousands):
		September 30,		December 31,
		2013		2012
	Raw materials	$	11,081	$	10,017
	Work in process		6,877		5,268
	Finished goods		8,530		8,494
	Total inventories	$	26,488	$	23,779

Income_per_share_Tables

Income per share (Tables)	9 Months Ended
	Sep. 30, 2013
Computation for Basic and Diluted Income Per Share	The following is the computation for basic and diluted income per share:
		Three Months Ended				Nine months Ended
		September 30,				September 30,
		2013		2012		2013		2012
		(in thousands, except per share amounts)
	Net income	$	7,673	$	7,259	$	20,813	$	18,735
	Weighted average basic shares outstanding		2,007		2,014		2,014		2,015
	Add:  Effect of dilutive securities		9		8		5		13
	Weighted average diluted shares outstanding		2,016		2,022		2,019		2,028
	Earnings per share:
	Basic	$	3.82	$	3.6	$	10.33	$	9.3
	Diluted	$	3.81	$	3.59	$	10.31	$	9.24

Investments_Tables

Investments (Tables)	9 Months Ended
	Sep. 30, 2013
Investments, Held-to-Maturity Securities	The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of September 30, 2013 (in thousands):
				Gross Unrealized
		Cost		Gains		Losses		Fair Value
	Short-term Investments:
	Corporate bonds	$	8,448	$	142	$	--	$	8,590
	Long-term Investments
	Corporate bonds	$	20,104	$	426	$	--	$	20,530

Major_Components_of_Inventorie

Major Components of Inventories (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventories
Raw materials	$11,081	$10,017
Work in process	6,877	5,268
Finished goods	8,530	8,494
Total inventories	$26,488	$23,779

Computation_for_Basic_and_Dilu

Computation for Basic and Diluted Income Per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Schedule of Earnings Per Share, Basic and Diluted, by Common Class
Net income	$7,673	$7,259	$20,813	$18,735
Weighted average basic shares outstanding	2,007	2,014	2,014	2,015
Add: Effect of dilutive securities	9	8	5	13
Weighted average diluted shares outstanding	2,016	2,022	2,019	2,028
Earnings per share:
Basic	$3.82	$3.60	$10.33	$9.30
Diluted	$3.81	$3.59	$10.31	$9.24

Income_per_Share_Additional_In

Income per Share - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares Excluded from Computation of Weighted average diluted Shares outstanding	1,545	5,901

Investments_HeldtoMaturity_Sec

Investments Held-to-Maturity Securities (Detail) (Corporate bonds, USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Short-term Investments
Schedule of Held-to-maturity Securities
Cost	$8,448
Gross Unrealized Gains	142
Gross Unrealized Losses
Fair Value	8,590
Long Term Investments
Schedule of Held-to-maturity Securities
Cost	20,104
Gross Unrealized Gains	426
Gross Unrealized Losses
Fair Value	$20,530

Investments_Additional_Informa

Investments - Additional Information (Detail)	Sep. 30, 2013
Minimum
Schedule of Investments
Securities maturity length	7 months 15 days
Maximum
Schedule of Investments
Securities maturity length	18 months 15 days

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail)	3 Months Ended		9 Months Ended		3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2013
					Scenario, Forecast
Income Taxes [Line Items]
Effective tax rate	30.40%	28.00%	32.00%	32.20%	34.00%