Atrion (ATRI) 10-Q 5 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 20, 2014
Document Information	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Trading Symbol	'ATRI	'
Entity Registrant Name	'ATRION CORP	'
Entity Central Index Key	'0000701288	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	1,969,463

Consolidated_Statements_of_Inc

Consolidated Statements of Income (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenues	$36,419	$33,493
Cost of goods sold	19,031	17,784
Gross profit	17,388	15,709
Operating expenses:	'	'
Selling	1,585	1,585
General and administrative	3,928	3,594
Research and development	1,175	1,130
Operating Expenses, Total	6,688	6,309
Operating income	10,700	9,400
Interest income	300	350
Other income, net	1	'
Income before provision for income taxes	11,001	9,750
Provision for income taxes	-3,800	-3,115
Net income	$7,201	$6,635
Net income per basic share	$3.63	$3.28
Weighted average basic shares outstanding	1,982	2,020
Net income per diluted share	$3.61	$3.28
Weighted average diluted shares outstanding	1,997	2,024
Dividends per common share	$0.64	$0.56

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$17,196	$28,559
Short-term investments	25,417	18,351
Accounts receivable	18,642	14,164
Inventories	26,326	26,266
Prepaid expenses and other current assets	1,008	1,603
Deferred income taxes	1,376	1,376
Total Current Assets	89,965	90,319
Long-term investments	12,375	10,069
Property, plant and equipment	133,753	130,504
Less accumulated depreciation and amortization	74,173	72,176
Property plant and equipment net	59,580	58,328
Other assets and deferred charges:	'	'
Patents	2,740	2,808
Goodwill	9,730	9,730
Other	810	812
Prepaid Expense and Other Assets, Noncurrent, Total	13,280	13,350
Total assets	175,200	172,066
Current liabilities:	'	'
Accounts payable and accrued liabilities	7,523	8,511
Accrued income and other taxes	4,113	853
Total Current Liabilities	11,636	9,364
Line of credit	'	'
Other non-current liabilities	12,934	13,708
Stockholders' equity:	'	'
Common stock, par value $0.10 per share; authorized 10,000 shares, issued 3,420 shares	342	342
Paid-in capital	31,967	31,592
Retained earnings	180,290	174,362
Treasury shares, 1,450 at March 31, 2014 and 1,435 at December 31, 2013, at cost	-61,969	-57,302
Total stockholders' equity	150,630	148,994
Total liabilities and stockholders' equity	$175,200	$172,066

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
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, shares	1,450	1,435

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income	$7,201	$6,635
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	2,265	2,141
Deferred income taxes	-546	-324
Stock-based compensation	367	355
Net change in accrued interest, premiums, and discounts on investments	3	196
Other	30	26
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	9,320	9,029
Changes in operating assets and liabilities:	'	'
Accounts receivable	-4,478	-4,330
Inventories	-59	-268
Prepaid expenses	594	2,201
Other non-current assets	2	-110
Accounts payable and accrued liabilities	-988	144
Accrued income and other taxes	3,260	1,416
Other non-current liabilities	-228	3
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total	7,423	8,085
Cash flows from investing activities:	'	'
Property, plant and equipment additions	-3,479	-1,573
Purchase of investments	-9,375	'
Proceeds from maturities of investments	'	3,639
Net Cash Provided by (Used in) Investing Activities, Continuing Operations, Total	-12,854	2,066
Cash flows from financing activities:	'	'
Purchase of treasury stock	-4,667	-1,008
Dividends paid	-1,265	-1,130
Net Cash Provided by (Used in) Financing Activities, Continuing Operations, Total	-5,932	-2,138
Net change in cash and cash equivalents	-11,363	8,013
Cash and cash equivalents at beginning of period	28,559	7,999
Cash and cash equivalents at end of period	17,196	16,012
Cash paid for:	'	'
Income taxes	$924	$46

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2014
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, 2013 ("2013 Form 10-K").  References herein to "Atrion," the "Company," "we," "our," and "us" refer to Atrion Corporation and its subsidiaries.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2014
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):
		March 31,		December 31,
		2014		2013
	Raw materials	$	11,222	$	10,744
	Work in process		6,971		6,246
	Finished goods		8,133		9,276
	Total inventories	$	26,326	$	26,266

Income_per_share

Income per share	3 Months Ended
	Mar. 31, 2014
Income per share	'
	(3)           Income per share
	The following is the computation for basic and diluted income per share:
		Three months ended March 31,
		2014		2013
		(in thousands, except per share amounts)
	Net income	$	7,201	$	$6,635
	Weighted average basic shares outstanding		1,982		2,020
	Add:  Effect of dilutive securities		15		4
	Weighted average diluted shares outstanding		1,997		2,024
	Earnings per share:
	Basic	$	$3.63	$	$3.28
	Diluted	$	$3.61	$	$3.28
	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 9,284 shares of common stock for the quarter ended March 31, 2013 and none for the quarter ended March 31, 2014 were excluded from the computation of weighted average diluted shares outstanding because their effect would have been anti-dilutive.

Investments

Investments	3 Months Ended
	Mar. 31, 2014
Investments	'
	(4)           Investments
	As of March 31, 2014, 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 March 31, 2014 (in thousands):
				Gross Unrealized
		Cost		Gains		Losses			Fair Value
	Short-term Investments:
	Corporate bonds	$	25,417	$	322	$	(15	)	$	25,724
	Long-term Investments
	Corporate bonds	$	12,375	$	3	$	(5	)	$	12,373
	At March 31, 2014, the length of time until maturity of these securities ranged from 1.5 to 60 months.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Taxes	'
	(5)           Income Taxes
	Our effective tax rate for the first quarter of 2014 was 34.5 percent, compared with 31.9 percent for the first quarter of 2013. The lower first quarter 2013 effective rate benefited from the retroactive 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. Credits from tax incentives for research and development expenditures in the full year 2012 and first quarter of 2013 were included in the calculation of income taxes for the first quarter of 2013.  The law has not been extended to 2014, and the absence of the federal research and development tax credits for 2014 resulted in an increase in effective tax rate in the first quarter of 2014.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2014
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)	3 Months Ended
	Mar. 31, 2014
Major Components of Inventories	'
	The following table details the major components of inventories (in thousands):
		March 31,		December 31,
		2014		2013
	Raw materials	$	11,222	$	10,744
	Work in process		6,971		6,246
	Finished goods		8,133		9,276
	Total inventories	$	26,326	$	26,266

Income_per_share_Tables

Income per share (Tables)	3 Months Ended
	Mar. 31, 2014
Computation for Basic and Diluted Income Per Share	'
	The following is the computation for basic and diluted income per share:
		Three months ended March 31,
		2014		2013
		(in thousands, except per share amounts)
	Net income	$	7,201	$	$6,635
	Weighted average basic shares outstanding		1,982		2,020
	Add:  Effect of dilutive securities		15		4
	Weighted average diluted shares outstanding		1,997		2,024
	Earnings per share:
	Basic	$	$3.63	$	$3.28
	Diluted	$	$3.61	$	$3.28

Investments_Tables

Investments (Tables)	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 (in thousands):
				Gross Unrealized
		Cost		Gains		Losses			Fair Value
	Short-term Investments:
	Corporate bonds	$	25,417	$	322	$	(15	)	$	25,724
	Long-term Investments
	Corporate bonds	$	12,375	$	3	$	(5	)	$	12,373

Major_Components_of_Inventorie

Major Components of Inventories (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventories	'	'
Raw materials	$11,222	$10,744
Work in process	6,971	6,246
Finished goods	8,133	9,276
Total inventories	$26,326	$26,266

Computation_for_Basic_and_Dilu

Computation for Basic and Diluted Income Per Share (Detail) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Schedule of Earnings Per Share, Basic and Diluted, by Common Class	'	'
Net income	$7,201	$6,635
Weighted average basic shares outstanding	1,982	2,020
Add: Effect of dilutive securities	15	4
Weighted average diluted shares outstanding	1,997	2,024
Earnings per share:	'	'
Basic	$3.63	$3.28
Diluted	$3.61	$3.28

Income_per_Share_Additional_In

Income per Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Shares Excluded from Computation of Weighted average diluted Shares outstanding	0	9,284

Investments_HeldtoMaturity_Sec

Investments Held-to-Maturity Securities (Detail) (Corporate bonds, USD $)	Mar. 31, 2014
In Thousands, unless otherwise specified
Short-term Investments	'
Schedule of Held-to-maturity Securities	'
Cost	$25,417
Gross Unrealized Gains	322
Gross Unrealized Losses	-15
Fair Value	25,724
Long Term Investments	'
Schedule of Held-to-maturity Securities	'
Cost	12,375
Gross Unrealized Gains	3
Gross Unrealized Losses	-5
Fair Value	$12,373

Investments_Additional_Informa

Investments - Additional Information (Detail)	Mar. 31, 2014
Minimum	'
Schedule of Investments	'
Securities maturity length	'1 month 15 days
Maximum	'
Schedule of Investments	'
Securities maturity length	'60 months

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Taxes [Line Items]	'	'
Effective tax rate	34.50%	31.90%