Exhibit 99.1
Atrion Reports Second Quarter Results;
Diluted EPS from Continuing Operations Increases by 29%
ALLEN, Texas--(BUSINESS WIRE)--July 30, 2003--Atrion Corporation
(Nasdaq/NM:ATRI) today announced that for the second quarter of 2003
revenues were up 9% and diluted earnings per share from continuing
operations were up 29% compared to the results of the second quarter
of 2002.
Commenting on the Company's results, Emile A. Battat, Chairman and
CEO, said, "Our strong sales performance in the quarter coupled with a
modest increase in operating expenses resulted in an operating income
of $1,705,000, a 22% increase compared to $1,401,000 in the second
quarter of 2002. Both figures exclude profit from discontinued
operations. We are very pleased that the solid performance in the
second quarter puts us well on the way to exceeding for the full year
of 2003 our annual growth target of 15% increase in earnings per share
from continuing operations."
Atrion's revenues for the quarter ended June 30, 2003 totaled
$16,175,000 compared with $14,775,000 in the same period in 2002. On a
diluted per share basis, earnings from continuing operations for the
period increased to $.63 as compared to $.49 in the same quarter of
last year. Earnings per diluted share from discontinued operations for
the second quarter totaled $.09 in both years. Net income, which
includes gain from discontinued operations, totaled $.72 per diluted
share for the second quarter of 2003 versus $.58 per diluted share in
the prior-year period.
Revenues for the first six months of 2003 of $31,896,000 were 8%
higher than revenues of $29,600,000 in the first half of 2002. Income
from continuing operations for the first half of 2003 was $1.25 per
diluted share versus $1.02 in 2002. Net income for the first half of
2003 was $1.34 per diluted share versus $.24 in 2002, which included
gains from discontinued operations in both periods and a $.87 per
share charge for goodwill impairment in the first quarter of 2002.
Atrion Corporation designs, develops, manufactures, sells and
distributes products and components primarily to medical markets
worldwide.
The statements in this press release that are forward looking are
based upon current expectations and actual results may differ
materially. Such statements include, but are not limited to, Atrion's
expectations regarding earnings per share from continuing operations
for the year 2003. Words such as "expects," "believes," "anticipates,"
"intends," and variations of such words and similar expressions are
intended to identify such forward-looking statements. These statements
involve risks and uncertainties. The following are some of the factors
that could cause actual results 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 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 SEC.
ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ------------------
2003 2002 2003 2002
-------- -------- -------- --------
Revenues $ 16,175 $ 14,775 $ 31,896 $ 29,600
Cost of goods sold 10,598 9,648 20,723 19,085
-------- -------- -------- --------
Gross profit 5,577 5,127 11,173 10,515
Operating expenses 3,872 3,726 7,744 7,560
-------- -------- -------- --------
Operating income 1,705 1,401 3,429 2,955
Interest expense, net (34) (88) (75) (199)
Other income, net (14) 1 (5) 2
-------- -------- -------- --------
Income from continuing
operations before provision
for income taxes 1,657 1,314 3,349 2,758
Income tax provision 509 384 1,051 821
-------- -------- -------- --------
Income from continuing
operations 1,148 930 2,298 1,937
Gain on disposal of
discontinued operations 165 165 165 165
Cumulative effect of change
in accounting principle, net
of tax -- -- -- (1,641)
-------- -------- -------- --------
Net income $ 1,313 $ 1,095 $ 2,463 $ 461
======== ======== ======== ========
Income per basic share:
Income from continuing
operations $ .67 $ .54 $ 1.33 $ 1.13
Gain on disposal of
discontinued operations .10 .10 .10 .10
Cumulative effect of change
in accounting -- -- -- (.96)
-------- -------- -------- --------
Net income per basic share $ .77 $ .64 $ 1.43 $ .27
======== ======== ======== ========
Weighted average basic shares
outstanding 1,702 1,719 1,733 1,707
======== ======== ======== ========
Income per diluted share:
Income from continuing
operations $ .63 $ .49 $ 1.25 $ 1.02
Gain on disposal of
discontinued operations .09 .09 .09 .09
Cumulative effect of change
in accounting -- -- -- (.87)
-------- -------- -------- --------
Net income per diluted
share $ .72 $ .58 $ 1.34 $ .24
======== ======== ======== ========
Weighted average diluted
shares outstanding 1,812 1,890 1,841 1,894
======== ======== ======== ========
ATRION CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2003 2002
------------ -----------
(Unaudited)
Current assets:
Cash and cash equivalents $ 556 $ 353
Accounts receivable 8,083 6,721
Inventories 11,565 10,311
Prepaid expenses 1,875 2,273
Deferred income taxes 1,018 1,018
------------ -----------
Total current assets 23,097 20,676
Property, plant and equipment, net 24,164 24,450
Other assets 15,452 15,681
------------ -----------
$ 62,713 $ 60,807
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 7,455 $ 5,889
Line of credit 9,686 10,337
Other non-current liabilities 3,216 2,890
Stockholders' equity 42,356 41,691
------------ -----------
$ 62,713 $ 60,807
============ ===========
CONTACT: Atrion Corporation, Allen
Jeffery Strickland, 972-390-9800