Exhibit 99.1
Atrion Reports Third Quarter Results;
Diluted EPS Increased by 30%
ALLEN, Texas--(BUSINESS WIRE)--Oct. 28, 2004--Atrion Corporation
(Nasdaq:ATRI) today announced that for the third quarter of 2004
diluted earnings per share were up 30% compared to the results for the
third quarter of 2003. Revenues in the third quarter increased by 4%
from the same prior-year period.
Commenting on the Company's results, Emile A. Battat, Chairman and
CEO, said, "Compared to the same quarter last year, sales in three of
our major product areas, cardiovascular, fluid delivery, and other
products, were significantly higher. As in the two prior quarters of
this year, our growth in these areas was masked by declines in
ophthalmology sales. The overall sales increase coupled with a higher
gross profit margin percentage resulted in a 20% increase in operating
income for the quarter over the comparable prior-year period. Our
strong operating results, coupled with a lower effective tax rate in
the current-year quarter, pushed our diluted earnings per share to a
new quarterly record for the Company."
Atrion's revenues for the quarter ended Sept. 30, 2004 were
$16,704,000 compared with $16,117,000 for the same period in 2003. On
a diluted per share basis, net income for the period increased to $.95
as compared to $.73 in the same quarter of last year.
Revenues for the first nine months of 2004 increased 4% to
$49,910,000 from $48,013,000 for the same period in 2003. Net income
for the first nine months of 2004 was $2.52 per diluted share versus
$2.07 in 2003, with gains from discontinued operations of $.09 per
share in both periods.
Additionally, the Company reported that Filtertek Inc., a
subsidiary of ESCO Technologies Inc., has claimed that swabable valves
manufactured by a Company subsidiary, Halkey-Roberts Corporation,
infringe on Filteterk's patent. The parties are now engaged in
litigation before the United States District Court in Tampa, Fla.
Filtertek is seeking, among other things, damages and injunctive
relief. The Company believes that swabable valves represent a major
growth opportunity, and intends to vigorously defend its intellectual
property. Halkey-Roberts has asked the court to declare that
Filtertek's claims are without merit. Halkey-Roberts has also asked
the court to invalidate Filtertek's patent.
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 growth of swabable valve sales for the Company.
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 that could cause actual results to differ
materially, including, but not limited to, the effects of changing
economic, business and technological conditions, market acceptance of
the Company's products, the effects of governmental regulation,
changes in research and development requirements, the impact of
competition and other factors 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 Nine Months Ended
September 30, September 30,
------------------- -----------------
2004 2003 2004 2003
---------- -------- -------- --------
Revenues $16,704 $16,117 $49,910 $48,013
Cost of goods sold 10,506 10,291 31,691 31,014
---------- -------- -------- --------
Gross profit 6,198 5,826 18,219 16,999
Operating expenses 3,981 3,971 12,037 11,714
---------- -------- -------- --------
Operating income 2,217 1,855 6,182 5,285
Interest expense, net (12) (30) (33) (106)
Other income, net -- 5 45 --
---------- -------- -------- --------
Income from continuing operations
before provision for income
taxes 2,205 1,830 6,194 5,179
Income tax provision 449 500 1,708 1,551
---------- -------- -------- --------
Income from continuing operations 1,756 1,330 4,486 3,628
Gain on disposal of discontinued
operations -- -- 165 165
---------- -------- -------- --------
Net income $1,756 $1,330 $4,651 $3,793
========== ======== ======== ========
Income per basic share:
Income from continuing
operations $1.02 $.79 $2.62 $2.11
Gain on disposal of
discontinued operations -- -- .10 .10
---------- -------- -------- --------
Net income per basic share $1.02 $.79 $2.72 $2.21
========== ======== ======== ========
Weighted average basic shares
outstanding 1,716 1,683 1,710 1,716
========== ======== ======== ========
Income per diluted share:
Income from continuing
operations $.95 $.73 $2.43 $1.98
Gain on disposal of
discontinued operations -- -- .09 .09
---------- -------- -------- --------
Net income per diluted
share $.95 $.73 $2.52 $2.07
========== ======== ======== ========
Weighted average diluted shares
outstanding 1,854 1,823 1,849 1,835
========== ======== ======== ========
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, Dec. 31,
ASSETS 2004 2003
----------- --------
(Unaudited)
Current assets:
Cash and cash equivalents $446 $298
Accounts receivable 8,100 6,226
Inventories 13,047 11,314
Deposit on land purchase 3,750 --
Prepaid expenses 1,368 1,894
Deferred income taxes 760 760
----------- --------
Total Current Assets 27,471 20,492
Property, plant and equipment, net 24,831 24,189
Other assets 14,637 15,369
----------- --------
$66,939 $60,050
=========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 9,174 6,689
Line of credit 4,034 4,287
Other non-current liabilities 4,801 4,470
Stockholders' equity 48,930 44,604
----------- --------
$66,939 $60,050
=========== ========
CONTACT: Atrion Corporation, Allen
Jeffery Strickland, 972-390-9800