Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 28, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Atrion Corporation | |
Entity Central Index Key | 0000701288 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2020 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 1,828,953 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-32982 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 63-0821819 | |
Entity Address Address Line 1 | One Allentown Parkway | |
Entity Address City Or Town | Allen | |
Entity Address State Or Province | TX | |
Entity Address Postal Zip Code | 75002 | |
City Area Code | 972 | |
Local Phone Number | 390-9800 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||
Revenues | $ 37,968 | $ 40,103 | $ 81,563 | $ 81,717 |
Cost of goods sold | 20,499 | 21,511 | 44,226 | 44,422 |
Gross profit | 17,469 | 18,592 | 37,337 | 37,295 |
Operating expenses: | ||||
Selling | 1,703 | 2,098 | 3,773 | 4,482 |
General and administrative | 4,628 | 4,304 | 9,028 | 8,490 |
Research and development | 1,092 | 1,224 | 2,776 | 2,319 |
Total Operating Expense | 7,423 | 7,626 | 15,577 | 15,291 |
Operating income | 10,046 | 10,966 | 21,760 | 22,004 |
Interest and dividend income | 367 | 581 | 858 | 1,163 |
Other investment income (losses) | 354 | 161 | (673) | 372 |
Total Non Operating Income Expenses | 721 | 742 | 185 | 1,535 |
Income before provision for income taxes | 10,767 | 11,708 | 21,945 | 23,539 |
Provision for income taxes | (2,162) | (2,044) | (4,443) | (4,437) |
Net income | $ 8,605 | $ 9,664 | $ 17,502 | $ 19,102 |
Net income per basic share | $ 4.69 | $ 5.21 | $ 9.49 | $ 10.30 |
Weighted average basic shares outstanding | 1,835 | 1,854 | 1,844 | 1,854 |
Net income per diluted share | $ 4.68 | $ 5.18 | $ 9.47 | $ 10.25 |
Weighted average diluted shares outstanding | 1,839 | 1,864 | 1,849 | 1,863 |
Dividends per common share | $ 1.55 | $ 1.35 | $ 3.10 | $ 2.70 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 24,099,000 | $ 45,048,000 |
Short-term investments | 6,574,000 | 23,766,000 |
Accounts receivable | 22,441,000 | 18,886,000 |
Inventories | 45,805,000 | 42,093,000 |
Prepaid expenses and other current assets | 3,226,000 | 2,545,000 |
Total current assets | 102,145,000 | 132,338,000 |
Long-term investments | 56,871,000 | 31,772,000 |
Property, plant and equipment | 207,814,000 | 200,990,000 |
Less accumulated depreciation and amortization | 119,947,000 | 116,384,000 |
Property, plant and equipment net | 87,867,000 | 84,606,000 |
Other assets and deferred charges: | ||
Patents | 1,480,000 | 1,539,000 |
Goodwill | 9,730,000 | 9,730,000 |
Other | 2,257,000 | 2,046,000 |
Total other assets | 13,467,000 | 13,315,000 |
Total assets | 260,350,000 | 262,031,000 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 11,373,000 | 10,855,000 |
Accrued income and other taxes | 4,070,000 | 419,000 |
Total current liabilities | 15,443,000 | 11,274,000 |
Line of credit | 0 | 0 |
Other non-current liabilities | 11,380,000 | 12,887,000 |
Stockholders' equity: | ||
Common stock, par value $0.10 per share; authorized 10,000 shares, issued 3,420 shares | 342,000 | 342,000 |
Paid-in capital | 53,020,000 | 52,043,000 |
Retained earnings | 329,494,000 | 317,745,000 |
Treasury shares,1,591 at June 30, 2020 and 1,565 at December 31, 2019, at cost | (149,329,000) | (132,260,000) |
Total stockholders' equity | 233,527,000 | 237,870,000 |
Total liabilities and stockholders' equity | $ 260,350,000 | $ 262,031,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Stockholders' equity | ||
Common stock, shares par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000 | 10,000,000 |
Common stock, shares issued | 3,420 | 3,420,000 |
Treasury stock, shares | 1,591,000 | 1,565,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 17,502,000 | $ 19,102,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,574,000 | 5,209,000 |
Deferred income taxes | 503,000 | 1,408,000 |
Stock-based compensation | 991,000 | 980,000 |
Net change in unrealized gains and losses on investments | 933,000 | (364,000) |
Net change in accrued interest, premiums, and discounts on investments | (66,000) | 173,000 |
Other | 22,000 | (6,000) |
Net Cash Provided By Used In Operating Activities Before Changes In Operating Capital, Total | 25,459,000 | 26,502,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,558,000) | (3,354,000) |
Inventories | (3,712,000) | (1,018,000) |
Prepaid expenses | (681,000) | 311,000 |
Other non-current assets | (254,000) | 57,000 |
Accounts payable and accrued liabilities | 518,000 | 542,000 |
Accrued income and other taxes | 3,651,000 | 180,000 |
Other non-current liabilities | (2,000,000) | 912,000 |
Net Cash Provided by Operating Activities, Total | 19,423,000 | 24,132,000 |
Cash flows from investing activities: | ||
Property, plant and equipment additions | (8,800,000) | (9,977,000) |
Purchase of investments | (30,444,000) | (45,843,000) |
Proceeds from sale of investments | 896,000 | 0 |
Proceeds from maturities of investments | 20,774,000 | 28,121,000 |
Net Cash Provided by Investing Activities, Total | (17,574,000) | (27,699,000) |
Cash flows from financing activities: | ||
Purchase of treasury stock | 17,037,000 | 0 |
Shares tendered for employees' withholding taxes on stock-based compensation | (55,000) | (579,000) |
Dividends paid | (5,706,000) | (5,005,000) |
Net Cash Provided by Financing Activities, Total | (22,798,000) | (5,584,000) |
Net change in cash and cash equivalents | (20,949,000) | (9,151,000) |
Cash and cash equivalents at beginning of period | 45,048,000 | 58,753,000 |
Cash and cash equivalents at end of the period | 24,099,000 | 49,602,000 |
Income taxes | $ 199,000 | $ 2,104,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Treasury Stock | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) |
Balance, shares at Dec. 31, 2018 | 1,567 | 1,853 | |||
Balance, amount at Dec. 31, 2018 | $ 210,767 | $ (131,727) | $ 342 | $ 50,391 | $ 291,761 |
Net income | 19,102 | 19,102 | |||
Stock-based compensation transactions, shares | (3) | 3 | |||
Stock-based compensation transactions, amount | 987 | $ 46 | 941 | ||
Shares surrendered in stock transactions, shares | 1 | (1) | |||
Shares surrendered in stock transactions, amount | (579) | $ (579) | |||
Dividends | (5,017) | (5,017) | |||
Balance, shares at Jun. 30, 2019 | 1,565 | 1,855 | |||
Balance, amount at Jun. 30, 2019 | 225,260 | $ (132,260) | $ 342 | 51,332 | 305,846 |
Balance, shares at Mar. 31, 2019 | 1,567 | 1,853 | |||
Balance, amount at Mar. 31, 2019 | 218,083 | $ (131,721) | $ 342 | 50,772 | 298,690 |
Net income | 9,664 | 9,664 | |||
Stock-based compensation transactions, shares | (3) | 3 | |||
Stock-based compensation transactions, amount | 600 | $ 40 | 560 | ||
Shares surrendered in stock transactions, shares | 1 | (1) | |||
Shares surrendered in stock transactions, amount | (579) | $ (579) | |||
Dividends | (2,508) | (2,508) | |||
Balance, shares at Jun. 30, 2019 | 1,565 | 1,855 | |||
Balance, amount at Jun. 30, 2019 | 225,260 | $ (132,260) | $ 342 | 51,332 | 305,846 |
Balance, shares at Dec. 31, 2019 | 1,565 | 1,855 | |||
Balance, amount at Dec. 31, 2019 | 237,870 | $ (132,260) | $ 342 | 52,043 | 317,745 |
Net income | 17,502 | 17,502 | |||
Stock-based compensation transactions, amount | 1,000 | 23 | 977 | ||
Shares surrendered in stock transactions, amount | (55) | $ (55) | |||
Dividends | (5,717) | (5,717) | |||
Cumulative change in accounting principal | (36) | (36) | |||
Purchase of treasury stock, shares | 26 | (26) | |||
Purchase of treasury stock, amount | (17,037) | $ (17,037) | |||
Balance, shares at Jun. 30, 2020 | 1,591 | 1,829 | |||
Balance, amount at Jun. 30, 2020 | 233,527 | $ (149,329) | $ 342 | 53,020 | 329,494 |
Balance, shares at Mar. 31, 2020 | 1,580 | 1,840 | |||
Balance, amount at Mar. 31, 2020 | 234,997 | $ (141,500) | $ 342 | 52,422 | 323,733 |
Net income | 8,605 | 8,605 | |||
Stock-based compensation transactions, amount | 616 | 18 | 598 | ||
Shares surrendered in stock transactions, amount | (55) | $ (55) | |||
Dividends | (2,844) | (2,844) | |||
Purchase of treasury stock, shares | 11 | (11) | |||
Purchase of treasury stock, amount | (7,792) | $ (7,792) | |||
Balance, shares at Jun. 30, 2020 | 1,591 | 1,829 | |||
Balance, amount at Jun. 30, 2020 | $ 233,527 | $ (149,329) | $ 342 | $ 53,020 | $ 329,494 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation | |
1- Basis of Presentation | (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Atrion Corporation and its subsidiaries (collectively referred to herein as “Atrion” the “Company,” “we,” “our,” and “us”) 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 normal and recurring 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 can have a significant impact on our revenue, operating income, and net income, as well as on the value of certain assets and liabilities on our consolidated balance sheets. We base our assumptions, judgments, and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. At least quarterly, we evaluate our assumptions, judgments, and estimates, and make changes as deemed necessary. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. We are not aware of any specific event or circumstance that would require updates to our estimates or judgments or require us to revise the carrying value of our assets or liabilities as of August 6, 2020, the date of issuance of this Quarterly Report on Form 10-Q. However, these estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. 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, 2019 (“2019 Form 10-K”). The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which became law on March 27, 2020, includes a provision that permits an employer to defer the payment of the employer’s portion of payroll taxes that otherwise would be due between March 27, 2020 and December 31, 2020. The Company has elected to take advantage of such deferral provision and is evaluating its ability to take advantage of other provisions of the CARES Act and its amendments. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventories | |
2- Inventories | (2) Inventories Inventories are stated at the lower of cost or net realizable value. 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, 2020 2019 Raw materials $ 19,020 $ 18,157 Work in process 9,972 8,525 Finished goods 16,813 15,411 Total inventories $ 45,805 $ 42,093 |
Income Per Share
Income Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Income Per Share | |
3- Income Per Share | (3) Income per share The following is the computation for basic and diluted income per share: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in thousands, except per share amounts) Net income $ 8,605 $ 9,664 $ 17,502 $ 19,102 Weighted average basic shares outstanding 1,835 1,854 1,844 1,854 Add: Effect of dilutive securities 4 10 5 9 Weighted average diluted shares outstanding 1,839 1,864 1,849 1,863 Earnings per share: Basic $ 4.69 $ 5.21 $ 9.49 $ 10.30 Diluted $ 4.68 $ 5.18 $ 9.47 $ 10.25 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 eight and zero shares of common stock for the quarters ended June 30, 2020 and 2019, respectively, and an average of 12 and zero shares of common stock for the six months ended June 30, 2020 and 2019, respectively, were excluded from the computation of weighted average diluted shares outstanding because their effect would have been anti-dilutive. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments | |
4- Investments | (4) Investments As of June 30, 2020, we held investments in commercial paper, bonds, money market accounts, mutual funds and equity securities. The commercial paper and bonds are considered held-to-maturity and are recorded at amortized cost in the accompanying consolidated balance sheet. The money market accounts, equity securities and mutual funds are recorded at fair value in the accompanying consolidated balance sheet. The fair values of these investments were estimated using recently executed transactions and market price quotations. We consider as current assets those investments which will mature in the next 12 months including interest receivable on the long-term bonds. The remaining investments are considered non-current assets including our investment in equity securities we intend to hold longer than 12 months. The components of the Company’s cash and cash equivalents and our short and long-term investments are as follows (in thousands): June 30, 2020 December 31, 2019 Cash and cash equivalents: Cash deposits $ 21,488 $ 38,942 Money market funds 1,861 3,460 Commercial paper 750 2,646 Total cash and cash equivalents $ 24,099 $ 45,048 Short-term investments: Commercial paper (held-to-maturity) $ 4,709 $ 6,778 Bonds (held-to-maturity) 1,880 16,988 Allowance for credit losses (16 ) - Total short-term investments $ 6,573 $ 23,766 Long-term investments: Mutual funds (available for sale) $ 462 $ 1,105 Bonds (held-to-maturity) 54,353 27,845 Allowance for credit losses (66 ) - Equity securities (available for sale) 2,123 2,822 Total long-term investments $ 56,872 $ 31,772 Total cash, cash equivalents and short and long-term investments $ 87,544 $ 100,586 Newly adopted Topic 326 utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for held-to-maturity securities at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. Our credit loss calculations for held-to-maturity securities are based upon historical default and recovery rates of bonds rated with the same rating as our portfolio. We also apply an adjustment factor to these credit loss calculations based upon our assessment of the expected impact from current economic conditions on our investments, including the impact of COVID-19. We monitor the credit quality of debt securities classified as held-to-maturity through the use of their respective credit rating and update them on a quarterly basis with our latest assessment completed on June 30, 2020. The following table summarizes the amortized cost of our held-to-maturity bonds at June 30, 2020, aggregated by credit quality indicator (in thousands): Held-to-Maturity Bonds Credit Quality Indicators Asset Backed Bonds Fed Govt Bonds/Notes Municipal Bonds Corporate Bonds Totals AAA/AA/A $ 2,392 $ 3,335 $ 755 $ 34,771 $ 41,253 BBB/BB - - - 14,980 14,980 TOTAL $ 2,392 $ 3,335 $ 755 $ 49,751 $ 56,233 The following table presents information regarding our allowance for credit losses on our short-term and long-term investments for the six months ended June 30, 2020 (in thousands): Short- Term Securities Long- Term Securities Total Beginning balance, December 31, 2019 $ - $ - $ - Allowance recognized upon adoption of Topic 326 9 33 42 Provision for credit loss expense 7 33 40 Ending balance, June 30, 2020 $ 16 $ 66 $ 82 Our investments are required to be measured for disclosure purposes at fair value on a recurring basis. Our investments are considered Level 1 or Level 2 as detailed in the table below. The fair values of these investments were estimated using recently executed transactions and market price quotations. The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of the dates shown below (in thousands): Gross Unrealized Level Cost Gains Losses Fair Value As of June 30, 2020: Money market 1 1,861 $ -- $ -- $ 1,861 Commercial paper 2 5,459 $ 14 $ -- $ 5,473 Bonds 2 56,233 $ 575 $ (45 ) $ 56,763 Mutual funds 1 561 $ -- $ (99 ) $ 462 Equity investments 2 5,675 $ -- $ (3,552 ) $ 2,123 As of December 31, 2019: Money Market 1 3,460 $ -- $ -- $ 3,460 Commercial paper 2 9,424 $ 2 $ -- $ 9,426 Bonds 2 44,833 $ 138 $ (19 ) $ 44,952 Mutual funds 1 1,052 $ 53 $ -- $ 1,105 Equity investments 2 5,675 $ -- $ (2,853 ) $ 2,822 The above bonds represent investments in various issuers at June 30, 2020. The unrealized losses for these bond investments relate to the impact of COVID-19 on the bond market which resulted in a lower market price for those securities. None of these bond investments has been in a loss position for more than 12 months. The commercial paper has maturities from less than a month to five months. The bonds have maturities from less than a month to 57 months |
Patents and Licenses
Patents and Licenses | 6 Months Ended |
Jun. 30, 2020 | |
Patents and Licenses | |
5- Patents and Licenses | (5) Patents and Licenses Purchased patents and license fees paid for the use of other entities’ patents are amortized over the useful life of the patent or license. The following tables provide information regarding patents and licenses (dollars in thousands): June 30, 2020 December 31, 2019 Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,360 15.67 $ 13,840 $ 12,301 Aggregate amortization expense for patents and licenses was $30,000 in each of the three months ended June 30, 2020 and 2019 and $60,000 in each of the six months ended June 30, 2020 and 2019. Estimated future amortization expense for each of the years set forth below ending December 31 is as follows (in thousands): 2021 $ 119 2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112 |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2020 | |
Revenues | |
6- Revenues | (6) Revenues We recognize revenue when performance obligations under the terms of a contract with our customer are satisfied. This occurs with the transfer of control of our products to customers when products are shipped. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales and other taxes we may collect concurrent with revenue-producing activities are excluded from revenue. A summary of revenues by geographic area, based on shipping destination, for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 United States $ 19,530 $ 25,780 $ 45,722 $ 52,769 Germany 2,918 2,095 6,155 4,259 Other countries less than 5% of revenues 15,520 12,228 29,686 24,689 Total $ 37,968 $ 40,103 $ 81,563 $ 81,717 A summary of revenues by product line for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Fluid Delivery $ 21,761 $ 18,285 $ 44,108 $ 36,446 Cardiovascular 10,841 14,579 25,666 29,999 Ophthalmology 936 1,817 1,800 4,100 Other 4,430 5,422 9,989 11,172 Total $ 37,968 $ 40,103 $ 81,563 $ 81,717 More than 99 percent of our total revenue in the periods presented herein is pursuant to shipments initiated by a purchase order (our “contract”) and recognized at a single point in time when the performance obligation of the product being shipped is satisfied, rather than recognized over time, and is presented as a receivable on the balance sheet. Payment is typically due within 30 days. We maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments. Effective January 1, 2020, we adopted the new credit loss accounting methodology as discussed in footnote 7 to calculate our credit loss allowance for our trade receivables. An account is written off when we determine the receivable will not be collected. Historically, bad debt has been immaterial. We have elected to recognize the cost of shipping as an expense in cost of sales when control over the product has transferred to the customer. We do not make any material accruals for product returns and warranty obligations because our returns and warranty obligations have been very low due to our focus on quality control. We do not disclose the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount for which we have the right to invoice. We believe that the complexity added to our disclosures by the inclusion of a large amount of insignificant detail in attempting to disclose information about immaterial contracts would potentially obscure more useful and important information. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Recent Accounting Pronouncements | |
7- Recent Accounting Pronouncements | (7) Recent Accounting Pronouncements ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities and trade and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. On January 1, 2020, we adopted the guidance prospectively with a cumulative adjustment to retained earnings. Atrion has not restated comparative information for 2019 and, therefore, the comparative information for 2019 is reported under the old model and is not comparable to the information presented for 2020. At adoption, we recognized an incremental allowance for credit losses on our allowance for credit losses related to our held-to-maturity debt securities of approximately $42,000 and our trade accounts receivable of approximately $4,000. Additionally, we recorded an approximately $36,000 decrease in retained earnings associated with the increased estimated credit losses on our trade accounts receivable and investments. From time to time, new accounting pronouncements applicable to us are issued by the FASB, or other standards setting bodies, which we will adopt as of the specified effective date. Unless otherwise discussed, we believe the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventories | |
Schedule of inventories | June 30, December 31, 2020 2019 Raw materials $ 19,020 $ 18,157 Work in process 9,972 8,525 Finished goods 16,813 15,411 Total inventories $ 45,805 $ 42,093 |
Income Per Share (Tables)
Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Per Share | |
Schedule of Computation of Basic and Diluted Income Per Share | Three Months Ended Six Months Ended 2020 2019 2020 2019 (in thousands, except per share amounts) Net income $ 8,605 $ 9,664 $ 17,502 $ 19,102 Weighted average basic shares outstanding 1,835 1,854 1,844 1,854 Add: Effect of dilutive securities 4 10 5 9 Weighted average diluted shares outstanding 1,839 1,864 1,849 1,863 Earnings per share: Basic $ 4.69 $ 5.21 $ 9.49 $ 10.30 Diluted $ 4.68 $ 5.18 $ 9.47 $ 10.25 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments | |
Schedule of cash and cash equivalents andshort and long-term investments | June 30, 2020 December 31, 2019 Cash and cash equivalents: Cash deposits $ 21,488 $ 38,942 Money market funds 1,861 3,460 Commercial paper 750 2,646 Total cash and cash equivalents $ 24,099 $ 45,048 Short-term investments: Commercial paper (held-to-maturity) $ 4,709 $ 6,778 Bonds (held-to-maturity) 1,880 16,988 Allowance for credit losses (16 ) - Total short-term investments $ 6,573 $ 23,766 Long-term investments: Mutual funds (available for sale) $ 462 $ 1,105 Bonds (held-to-maturity) 54,353 27,845 Allowance for credit losses (66 ) - Equity securities (available for sale) 2,123 2,822 Total long-term investments $ 56,872 $ 31,772 Total cash, cash equivalents and short and long-term investments $ 87,544 $ 100,586 |
Schedule of investments, held-to-maturity securities | Held-to-Maturity Bonds Credit Quality Indicators Asset Backed Bonds Fed Govt Bonds/Notes Municipal Bonds Corporate Bonds Totals AAA/AA/A $ 2,392 $ 3,335 $ 755 $ 34,771 $ 41,253 BBB/BB - - - 14,980 14,980 TOTAL $ 2,392 $ 3,335 $ 755 $ 49,751 $ 56,233 |
Schedule of allowance for credit losses on short-term and long-term investments | Short- Term Securities Long- Term Securities Total Beginning balance, December 31, 2019 $ - $ - $ - Allowance recognized upon adoption of Topic 326 9 33 42 Provision for credit loss expense 7 33 40 Ending balance, June 30, 2020 $ 16 $ 66 $ 82 |
Schedule of gross unrealized gains and losses on investments | Gross Unrealized Level Cost Gains Losses Fair Value As of June 30, 2020: Money market 1 1,861 $ -- $ -- $ 1,861 Commercial paper 2 5,459 $ 14 $ -- $ 5,473 Bonds 2 56,233 $ 575 $ (45 ) $ 56,763 Mutual funds 1 561 $ -- $ (99 ) $ 462 Equity investments 2 5,675 $ -- $ (3,552 ) $ 2,123 As of December 31, 2019: Money Market 1 3,460 $ -- $ -- $ 3,460 Commercial paper 2 9,424 $ 2 $ -- $ 9,426 Bonds 2 44,833 $ 138 $ (19 ) $ 44,952 Mutual funds 1 1,052 $ 53 $ -- $ 1,105 Equity investments 2 5,675 $ -- $ (2,853 ) $ 2,822 |
Patents and Licenses (Tables)
Patents and Licenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Patents and Licenses | |
Schedule of patents and licenses | June 30, 2020 December 31, 2019 Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,360 15.67 $ 13,840 $ 12,301 |
Schedule of estimated future amortization expense | 2021 $ 119 2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenues (Tables) | |
Schedule of revenues by geographic area | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 United States $ 19,530 $ 25,780 $ 45,722 $ 52,769 Germany 2,918 2,095 6,155 4,259 Other countries less than 5% of revenues 15,520 12,228 29,686 24,689 Total $ 37,968 $ 40,103 $ 81,563 $ 81,717 |
Schedule of revenues by product | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Fluid Delivery $ 21,761 $ 18,285 $ 44,108 $ 36,446 Cardiovascular 10,841 14,579 25,666 29,999 Ophthalmology 936 1,817 1,800 4,100 Other 4,430 5,422 9,989 11,172 Total $ 37,968 $ 40,103 $ 81,563 $ 81,717 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Raw materials | $ 19,020 | $ 18,157 |
Work in process | 9,972 | 8,525 |
Finished goods | 16,813 | 15,411 |
Total inventories | $ 45,805 | $ 42,093 |
Income Per Share (Details)
Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Per Share | ||||
Net income | $ 8,605 | $ 9,664 | $ 17,502 | $ 19,102 |
Weighted average basic shares outstanding | 1,835 | 1,854 | 1,844 | 1,854 |
Add: Effect of dilutive securities | 4,000 | 10,000 | 5,000 | 9,000 |
Weighted average diluted shares outstanding | 1,839 | 1,864 | 1,849 | 1,863 |
Earnings per share: | ||||
Basic | $ 4.69 | $ 5.21 | $ 9.49 | $ 10.30 |
Diluted | $ 4.68 | $ 5.18 | $ 9.47 | $ 10.25 |
Income Per Share (Details Narra
Income Per Share (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Per Share | ||||
Shares excluded from computation of weighted average diluted shares outstanding | 8 | 0 | 12,000 | 0 |
Investments (Details)
Investments (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents: | ||
Total cash and cash equivalents | $ 24,099,000 | $ 45,048,000 |
Short-term investments: | ||
Total short-term Investments | 6,573,000 | 23,766,000 |
Allowance for credit losses | (16,000) | 0 |
Long-term investments: | ||
Total long-term investments | 56,872,000 | 31,772,000 |
Allowance for credit losses | (66,000) | 0 |
Total cash, cash equivalents and short and long-term investments | 87,544,000 | 100,586,000 |
Commercial Paper (Held-To-Maturity) [Member] | ||
Short-term investments: | ||
Total short-term Investments | 4,709,000 | 6,778,000 |
Bonds (Held-To-Maturity) [Member] | ||
Short-term investments: | ||
Total short-term Investments | 1,880,000 | 16,988,000 |
Mutual funds (available for sale) [Member] | ||
Long-term investments: | ||
Total long-term investments | 462,000 | 1,105,000 |
Bonds [Held-To-Maturity] [Member] | ||
Long-term investments: | ||
Total long-term investments | 54,353,000 | 27,845,000 |
Equity securities (available for sale] [Member] | ||
Long-term investments: | ||
Total long-term investments | 2,123,000 | 2,822,000 |
Cash Deposits [Member] | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | 21,488,000 | 38,942,000 |
Money Market Funds [Member] | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | 1,861,000 | 3,460,000 |
Commercial Paper [Member] | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | $ 750,000 | $ 2,646,000 |
Investments (Details1)
Investments (Details1) $ in Thousands | Jun. 30, 2020USD ($) |
Debt securities, held-to-maturity | $ 56,233 |
AAA /AA/A [Member] | |
Debt securities, held-to-maturity | 41,253 |
BBB/BB [Member] | |
Debt securities, held-to-maturity | 14,980 |
Assets Baked Bonds [Member] | |
Debt securities, held-to-maturity | 2,392 |
Assets Baked Bonds [Member] | AAA /AA/A [Member] | |
Debt securities, held-to-maturity | 2,392 |
Fed Govt Bonds Notes [Member] | |
Debt securities, held-to-maturity | 3,335 |
Fed Govt Bonds Notes [Member] | AAA /AA/A [Member] | |
Debt securities, held-to-maturity | 3,335 |
Municipal Bonds [Member] | |
Debt securities, held-to-maturity | 755 |
Municipal Bonds [Member] | AAA /AA/A [Member] | |
Debt securities, held-to-maturity | 755 |
Corporate Bonds [Member] | |
Debt securities, held-to-maturity | 49,751 |
Corporate Bonds [Member] | AAA /AA/A [Member] | |
Debt securities, held-to-maturity | 34,771 |
Corporate Bonds [Member] | BBB/BB [Member] | |
Debt securities, held-to-maturity | $ 14,980 |
Investments (Details 2)
Investments (Details 2) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Beginning balance, December 31, 2019 | $ 0 |
Allowance recognized upon adoption of Topic 326 | 42,000 |
Provision for credit loss expense | 40,000 |
Ending balance, June 30, 2020 | 82,000 |
Short-term Investments [Member] | |
Beginning balance, December 31, 2019 | 0 |
Allowance recognized upon adoption of Topic 326 | 9,000 |
Provision for credit loss expense | 7,000 |
Ending balance, June 30, 2020 | 16,000 |
Long Term Investments [Member] | |
Beginning balance, December 31, 2019 | 0 |
Allowance recognized upon adoption of Topic 326 | 33,000 |
Provision for credit loss expense | 33,000 |
Ending balance, June 30, 2020 | $ 66,000 |
Investments (Details 3)
Investments (Details 3) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Debt securities, held-to-maturity | $ 56,233,000 | |
Short-term Investments [Member] | Available For Sale[Member] | ||
Debt securities, held-to-maturity | 561,000 | $ 1,052,000 |
Gross Unrealized Fair Value | 462,000 | 1,105,000 |
Gross Unrealized Gains | 53,000 | |
Gross Unrealized Losses | (99,000) | |
Short-term Investments [Member] | Mutual Funds [Available For Sale] [Member] | ||
Debt securities, held-to-maturity | 5,675,000 | 5,675,000 |
Gross Unrealized Fair Value | 2,123,000 | 2,822,000 |
Gross Unrealized Losses | (3,552,000) | (2,853,000) |
Money Market Funds [Member] | Short-term Investments [Member] | ||
Debt securities, held-to-maturity | 1,861,000 | 3,460,000 |
Gross Unrealized Fair Value | 1,861,000 | 3,460,000 |
Commercial Paper [Member] | Short-term Investments [Member] | ||
Debt securities, held-to-maturity | 5,459,000 | 9,424,000 |
Gross Unrealized Fair Value | 5,473,000 | 9,426,000 |
Gross Unrealized Gains | 14,000 | 2 |
Bonds [Member] | Short-term Investments [Member] | ||
Debt securities, held-to-maturity | 56,233,000 | 44,833,000 |
Gross Unrealized Fair Value | 56,763,000 | 44,952,000 |
Gross Unrealized Gains | 575,000 | 138,000 |
Gross Unrealized Losses | $ (45,000) | $ (19,000) |
Investments (Details Narrative)
Investments (Details Narrative) | 6 Months Ended |
Jun. 30, 2020 | |
Maximum [Member] | Bonds [Member] | |
Securities Maturity | 57 months |
Patents and Licenses (Details)
Patents and Licenses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Patents and Licenses | ||
Weighted Average Original Life (years) | 15 years 8 months 1 day | 15 years 8 months 1 day |
Gross Carrying Amount | $ 13,840 | $ 13,840 |
Accumulated Amortization | $ 12,360 | $ 12,301 |
Patents and Licenses (Details 1
Patents and Licenses (Details 1) $ in Thousands | Dec. 31, 2019USD ($) |
Patents and Licenses | |
2021 | $ 119 |
2022 | 117 |
2023 | 113 |
2024 | 113 |
2025 | $ 112 |
Patents and Licenses (Details N
Patents and Licenses (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Patents and Licenses | ||||
Aggregate amortization expense | $ 30,000,000 | $ 30,000 | $ 60,000,000 | $ 60,000 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 37,968 | $ 40,103 | $ 81,563 | $ 81,717 |
United States [Member] | ||||
Revenues | 19,530 | 25,780 | 45,722 | 52,769 |
Other Countries Less Than 5% Of Revenues [Member] | ||||
Revenues | 15,520 | 12,228 | 29,686 | 24,689 |
Germany [Member] | ||||
Revenues | $ 2,918 | $ 2,095 | $ 6,155 | $ 4,259 |
Revenues (Details 1)
Revenues (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Total Revenues | $ 37,968 | $ 40,103 | $ 81,563 | $ 81,717 |
Fluid Delivery [Member] | ||||
Total Revenues | 21,761 | 18,285 | 44,108 | 36,446 |
Cardiovascular [Member] | ||||
Total Revenues | 10,841 | 14,579 | 25,666 | 29,999 |
Ophthalmology [Member] | ||||
Total Revenues | 936 | 1,817 | 1,800 | 4,100 |
Other [Member] | ||||
Total Revenues | $ 4,430 | $ 5,422 | $ 9,989 | $ 11,172 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Decrease in retained earnings | $ 36,000 |
Trade Accounts Receivable [Member] | |
Provision for Other Credit Losses | 4,000 |
Held-to-maturity Securities [Member] | |
Provision for Other Credit Losses | $ 42,000 |