Atrion (ATRI) 10-Q 6 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 15, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
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	'	1,948,940

Consolidated_Statements_of_Inc

Consolidated Statements of Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Revenues	$35,025	$32,605	$71,444	$66,097
Cost of goods sold	17,616	16,971	36,647	34,754
Gross profit	17,409	15,634	34,797	31,343
Operating expenses:	'	'	'	'
Selling	1,616	1,481	3,201	3,066
General and administrative	4,386	3,706	8,314	7,300
Research and development	1,150	952	2,325	2,082
Operating Expenses, Total	7,152	6,139	13,840	12,448
Operating income	10,257	9,495	20,957	18,895
Interest income	364	346	664	695
Income before provision for income taxes	10,621	9,841	21,621	19,590
Provision for income taxes	-3,739	-3,335	-7,539	-6,450
Net income	$6,882	$6,506	$14,082	$13,140
Net income per basic share	$3.51	$3.23	$7.14	$6.51
Weighted average basic shares outstanding	1,960	2,015	1,971	2,017
Net income per diluted share	$3.48	$3.22	$7.09	$6.50
Weighted average diluted shares outstanding	1,977	2,019	1,987	2,021
Dividends per common share	$0.64	$0.56	$1.28	$1.12

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$23,521	$28,559
Short-term investments	18,146	18,351
Accounts receivable	16,407	14,164
Inventories	27,208	26,266
Prepaid expenses and other current assets	2,488	1,603
Deferred income taxes	1,376	1,376
Total Current Assets	89,146	90,319
Long-term investments	10,000	10,069
Property, plant and equipment	136,024	130,504
Less accumulated depreciation and amortization	76,107	72,176
Property plant and equipment net	59,917	58,328
Other assets and deferred charges:	'	'
Patents	2,673	2,808
Goodwill	9,730	9,730
Other	864	812
Prepaid Expense and Other Assets, Noncurrent, Total	13,267	13,350
Total assets	172,330	172,066
Current liabilities:	'	'
Accounts payable and accrued liabilities	9,694	8,511
Accrued income and other taxes	300	853
Total Current Liabilities	9,994	9,364
Line of credit	'	'
Other non-current liabilities	12,466	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	32,853	31,592
Retained earnings	185,915	174,362
Treasury shares, 1,450 at March 31, 2014 and 1,435 at December 31, 2013, at cost at December 31, 2013, at cost	-69,240	-57,302
Total stockholders' equity	149,870	148,994
Total liabilities and stockholders' equity	$172,330	$172,066

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
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	1,471	1,435

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net income	$14,082	$13,140
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	4,458	4,271
Deferred income taxes	-1,016	-449
Stock-based compensation	1,129	842
Net change in accrued interest, premiums, and discounts on investments	274	278
Other	30	26
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	18,957	18,108
Changes in operating assets and liabilities:	'	'
Accounts receivable	-2,243	-4,072
Inventories	-942	-1,404
Prepaid expenses	-885	810
Other non-current assets	-52	-73
Accounts payable and accrued liabilities	1,183	2,884
Accrued income and other taxes	-553	270
Other non-current liabilities	-226	6
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total	15,239	16,529
Cash flows from investing activities:	'	'
Property, plant and equipment additions	-5,942	-2,735
Purchase of investments	-19,375	'
Proceeds from maturities of investments	19,375	3,639
Net Cash Provided by (Used in) Investing Activities, Continuing Operations, Total	-5,942	904
Cash flows from financing activities:	'	'
Shares tendered for employeesb withholding taxes on stock-based compensation	-377	'
Tax benefit related to stock-based compensation	163	6
Purchase of treasury stock	-11,608	-2,912
Dividends paid	-2,513	-2,257
Net Cash Provided by (Used in) Financing Activities, Continuing Operations, Total	-14,335	-5,163
Net change in cash and cash equivalents	-5,038	12,270
Cash and cash equivalents at beginning of period	28,559	7,999
Cash and cash equivalents at end of period	23,521	20,269
Cash paid for:	'	'
Income taxes	$9,685	$5,323

1_Basis_of_Presentation

1. Basis of Presentation	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
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.

2_Inventories

2. Inventories	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
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):
		June 30,	December 31,
		2014	2013
	Raw materials	$11,344	$10,744
	Work in process	7,128	6,246
	Finished goods	8,736	9,276
	Total inventories	$27,208	$26,266

3_Income_per_share

3. Income per share	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Income per share	'
	The following is the computation for basic and diluted income per share:
	(1)		Three Months Ended June 30,				Six Months Ended    June 30,
	(2)		2014		2013		2014		2013
	(3)		(in thousands, except per share amounts)
	Net income		$6,882		$6,506		$14,082		$13,140
	Weighted average basic shares outstanding		1,960		2,015		1,971		2,017
	Add:  Effect of dilutive securities		17		4		16		4
	Weighted average diluted shares outstanding		1,977		2,019		1,987		2,021
		Earnings per share:
		Basic		$3.51		$3.23		$ 7.14		$ 6.51
		Diluted		$3.48		$3.22		$7.09		$6.50
	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 33 and 6,547 shares of common stock for the quarters ended June 30, 2014 and 2013, respectively, were excluded from the computation of weighted average diluted shares outstanding because their effect would have been anti-dilutive.

4_Investments

4. Investments	6 Months Ended
	Jun. 30, 2014
Investments Schedule [Abstract]	'
Investments	'
	As of June 30, 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 June 30, 2014 (in thousands):
			Gross Unrealized
		Cost	Gains	Losses	Fair Value
	Short-term Investments:
	Corporate bonds	$18,146	$136	($8)	$18,274
	Long-term Investments
	Corporate bonds	$10,000	$4	$ --	$10,004
	At June 30, 2014, the length of time until maturity of these securities ranged from four months to 60 months.

5_Income_Taxes

5. Income Taxes	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Our effective tax rate for the second quarter of 2014 was 35.2 percent, compared with 33.9 percent for the second quarter of 2013. Our effective tax rate for the first six months of 2014 was 34.9 percent, compared with 32.9 percent for the first six months of 2013. The lower effective tax rates for both the second quarter and first six 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. Credits from tax incentives for research and development expenditures in the full year 2012 and first six months of 2013 were included in the calculation of income taxes for the first six months 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 second quarter and first six months of 2014. Additionally, the effective tax rate in the second quarter and first six months of 2014 increased as a result of state income tax law changes.

2_Inventories_Tables

2. Inventories (Tables)	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
		June 30,	December 31,
		2014	2013
	Raw materials	$11,344	$10,744
	Work in process	7,128	6,246
	Finished goods	8,736	9,276
	Total inventories	$27,208	$26,266

3_Income_per_share_Tables

3. Income per share (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Computation for Basic and Diluted Income Per Share	'
	The following is the computation for basic and diluted income per share:
	(1)		Three Months Ended June 30,				Six Months Ended    June 30,
	(2)		2014		2013		2014		2013
	(3)		(in thousands, except per share amounts)
	Net income		$6,882		$6,506		$14,082		$13,140
	Weighted average basic shares outstanding		1,960		2,015		1,971		2,017
	Add:  Effect of dilutive securities		17		4		16		4
	Weighted average diluted shares outstanding		1,977		2,019		1,987		2,021
		Earnings per share:
		Basic		$3.51		$3.23		$ 7.14		$ 6.51
		Diluted		$3.48		$3.22		$7.09		$6.50

4_Investments_Tables

4. Investments (Tables)	6 Months Ended
	Jun. 30, 2014
Investments Schedule [Abstract]	'
Investments, Held-to-Maturity Securities	'
			Gross Unrealized
		Cost	Gains	Losses	Fair Value
	Short-term Investments:
	Corporate bonds	$18,146	$136	($8)	$18,274
	Long-term Investments
	Corporate bonds	$10,000	$4	$ --	$10,004

4_Inventories_Detail

4. Inventories (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Raw materials	$11,344	$10,744
Work in process	7,128	6,246
Finished goods	8,736	9,276
Total inventories	$27,208	$26,266

3_Income_Per_Share_Detail

3. Income Per Share (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Net income	$6,882	$6,506	$14,082	$13,140
Weighted average basic shares outstanding	1,960	2,015	1,971	2,017
Add: Effect of dilutive securities	17	4	16	4
Weighted average diluted shares outstanding	1,977	2,019	1,987	2,021
Earnings per share:	'	'	'	'
Basic	$3.51	$3.23	$7.14	$6.51
Diluted	$3.48	$3.22	$7.09	$6.50

3_Income_per_share_Details_Nar

3. Income per share (Details Narrative)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]	'	'
Shares Excluded from Computation of Weighted average diluted Shares outstanding	33	6,547

4_Investments_Details

4. Investments (Details) (Corporate Bond Securities [Member], USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified
Short Term Investments [Member]	'
Schedule of Held-to-maturity Securities [Line Items]	'
Cost	$18,146
Gross Unrealized Gains	136
Gross Unrealized Losses	8
Fair Value	18,274
Long Term Investments [Member]	'
Schedule of Held-to-maturity Securities [Line Items]	'
Cost	10,000
Gross Unrealized Gains	4
Gross Unrealized Losses	'
Fair Value	$10,004

4_Investments_Details_Narrativ

4. Investments (Details Narrative)	6 Months Ended
	Jun. 30, 2013
Investments, Debt and Equity Securities [Abstract]	'
Securities maturity length	'60 months

5_Income_Taxes_Details_Narrati

5. Income Taxes (Details Narrative)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]	'	'
Effective tax rate	35.20%	33.90%