Exhibit 99.1
Atrion Reports Second Quarter Results;
Diluted EPS Increases by 21 Percent
ALLEN, Texas--(BUSINESS WIRE)--July 29, 2004--Atrion Corporation
(Nasdaq:ATRI) today announced that for the second quarter of 2004
revenues were up 1% and diluted earnings per share were up 21%
compared to the results of the second quarter of 2003.
Commenting on the Company's results, Emile A. Battat, Chairman and
CEO, said, "Sales in three of our major product areas, cardiovascular,
fluid delivery, and other products, were significantly higher during
the quarter than in the second quarter of 2003. However this growth
was masked by lower sales in our remaining product area,
ophthalmology, which declined significantly following the fulfillment
of a customer's requirements in late 2003, as discussed in our
financial report for the first quarter. Sales comparisons for the
remainder of the year will be similarly affected by the completion of
that order. We are pleased, however, that the growth in our other
product lines has enabled us to deliver a solid 21% increase in
operating income and diluted earnings per share compared to the
results reported for the same quarter of 2003. In both periods we
received residual income from operations discontinued in 1997."
Atrion's revenues for the quarter ended June 30, 2004 totaled
$16,417,000 compared with $16,175,000 in the same period in 2003. On a
diluted per share basis, earnings for the period increased to $.87 as
compared to $.72 in the same quarter of last year. Both periods
included residual earnings of $.09 per share from operations that were
discontinued in 1997. Operating income for the current year period
totaled $2,064,000 compared to $1,705,000 in last year's second
quarter.
Revenues for the first six months of 2004 of $33,206,000 were 4%
higher than revenues of $31,896,000 in the first half of 2003. Diluted
earnings per share for the first half of 2004 were $1.57 per diluted
share versus $1.34 in 2003. Both periods included $.09 per share from
discontinued operations.
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 sales comparisons for the remainder of 2004.
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,
-------------------- -----------------
2004 2003 2004 2003
----------- -------- -------- --------
Revenues $16,417 $16,175 $33,206 $31,896
Cost of goods sold 10,351 10,598 21,185 20,723
----------- -------- -------- --------
Gross profit 6,066 5,577 12,021 11,173
Operating expenses 4,002 3,872 8,056 7,744
----------- -------- -------- --------
Operating income 2,064 1,705 3,965 3,429
Interest expense, net (5) (34) (21) (75)
Other income, net 39 (14) 45 (5)
----------- -------- -------- --------
Income from continuing
operations before provision
for income taxes 2,098 1,657 3,989 3,349
Income tax provision 655 509 1,259 1,051
----------- -------- -------- --------
Income from continuing
operations 1,443 1,148 2,730 2,298
Gain on disposal of
discontinued operations 165 165 165 165
----------- -------- -------- --------
Net income $1,608 $1,313 $2,895 $2,463
=========== ======== ======== ========
Income per basic share:
Income from continuing
operations $.84 $.67 $1.60 $1.33
Gain on disposal of
discontinued operations .10 .10 .10 .10
----------- -------- -------- --------
Net income per basic share $.94 $.77 $1.70 $1.43
=========== ======== ======== ========
Weighted average basic shares
outstanding 1,710 1,702 1,706 1,733
=========== ======== ======== ========
Income per diluted share:
Income from continuing
operations $.78 $.63 $1.48 $1.25
Gain on disposal of
discontinued operations .09 .09 .09 .09
----------- -------- -------- --------
Net income per diluted share $.87 $.72 $1.57 $1.34
=========== ======== ======== ========
Weighted average diluted shares
outstanding 1,848 1,812 1,846 1,841
=========== ======== ======== ========
ATRION CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2004 2003
------------ -----------
(Unaudited)
Current assets:
Cash and cash equivalents $691 $298
Accounts receivable 7,707 6,226
Inventories 12,784 11,314
Prepaid expenses 1,233 1,894
Deferred income taxes 760 760
------------ -----------
Total current assets 23,175 20,492
Property, plant and equipment, net 24,000 24,189
Other assets 14,792 15,369
------------ -----------
$61,967 $60,050
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $8,447 $6,689
Line of credit 1,701 4,287
Other non-current liabilities 4,373 4,470
Stockholders' equity 47,446 44,604
------------ -----------
$61,967 $60,050
============ ===========
CONTACT: Atrion Corporation
Jeffery Strickland, 972-390-9800