Exhibit 99.1
Atrion Reports Second Quarter Results; Diluted EPS Increases by 36%
ALLEN, Texas--(BUSINESS WIRE)--July 29, 2005--Atrion Corporation
(Nasdaq:ATRI) today announced that for the second quarter of 2005
revenues were up 10% and diluted earnings per share were up 36%
compared to the results of the second quarter of 2004.
Commenting on the Company's results, Emile A. Battat, Chairman and
CEO, said, "We are very pleased with the strong increase in sales and
especially that all our product areas, cardiovascular, fluid delivery,
ophthalmology, and other products, contributed to this growth. The
increase in sales, coupled with continued favorable mix toward
higher-margin products, led to a 52% increase in operating income in
the second quarter as compared to the same period last year." Mr.
Battat added, "The Company continued a program initiated last year to
purchase critical raw materials in larger volumes to take advantage of
quantity discounts and to hedge against further price increases. In
addition we began to increase our inventory of finished goods to
reflect increasing sales and to assure uninterrupted deliveries to our
customers when we relocate our Florida facility next year to a new
plant in St. Petersburg, Florida. These actions were the primary
reason for the increase in inventory of $2.4 million during the second
quarter, and the $3.4 million increase since the beginning of the
year."
Atrion's revenues for the quarter ended June 30, 2005 totaled
$18,102,000 compared with $16,417,000 in the same period in 2004. On a
diluted per share basis, earnings for the period increased to $1.18 as
compared to $.87 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 $3,131,000 compared to $2,064,000 in last year's second
quarter.
Revenues for the first six months of 2005 of $36,747,000 were 11%
higher than revenues of $33,206,000 in the first half of 2004. Diluted
earnings per share for the first half of 2005 were $2.41 versus $1.57
in the first six months of 2004. 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 or future events
may differ materially. Such statements include, but are not limited
to, Atrion's expectations regarding future deliveries to customers.
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 or future events 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 intellectual property 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,
------------------- -----------------
2005 2004 2005 2004
---------- -------- -------- --------
Revenues $18,102 $16,417 $36,747 $33,206
Cost of goods sold 10,896 10,351 21,920 21,185
---------- -------- -------- --------
Gross profit 7,206 6,066 14,827 12,021
Operating expenses 4,075 4,002 8,278 8,056
---------- -------- -------- --------
Operating income 3,131 2,064 6,549 3,965
Interest expense, net (12) (5) (17) (21)
Other income, net -- 39 8 45
---------- -------- -------- --------
Income from continuing operations
before provision for income
taxes 3,119 2,098 6,540 3,989
Income tax provision (1,012) (655) (2,138) (1,259)
---------- -------- -------- --------
Income from continuing operations 2,107 1,443 4,402 2,730
Gain on disposal of discontinued
operations 165 165 165 165
---------- -------- -------- --------
Net income $2,272 $1,608 $4,567 $2,895
========== ======== ======== ========
Income per basic share:
Income from continuing
operations $1.18 $.84 $2.51 $1.60
Gain on disposal of discontinued
operations .09 .10 .09 .10
---------- -------- -------- --------
Net income per basic share $1.27 $.94 $2.60 $1.70
========== ======== ======== ========
Weighted average basic shares
outstanding 1,789 1,710 1,756 1,706
========== ======== ======== ========
Income per diluted share:
Income from continuing
operations $1.09 $.78 $2.32 $1.48
Gain on disposal of discontinued
operations .09 .09 .09 .09
---------- -------- -------- --------
Net income per diluted share $1.18 $.87 $2.41 $1.57
========== ======== ======== ========
Weighted average diluted shares
outstanding 1,925 1,848 1,895 1,846
========== ======== ======== ========
ATRION CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2005 2004
----------- --------
(Unaudited)
Current assets:
Cash and cash equivalents $365 $255
Accounts receivable 8,122 7,588
Inventories 17,455 14,013
Prepaid expenses 1,344 1,028
Land deposit -- 3,750
Deferred income taxes 1,039 1,039
----------- --------
Total current assets 28,325 27,673
Property, plant and equipment, net 30,807 25,331
Other assets 15,046 14,404
----------- --------
$74,178 $67,408
=========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $7,555 8,467
Line of credit 3,293 2,936
Other non-current liabilities 5,667 5,402
Stockholders' equity 57,663 50,603
----------- --------
$74,178 $67,408
=========== ========
CONTACT: Atrion Corporation, Allen
Jeffery Strickland, 972-390-9800