Market Overview

Atrion Reports Fourth Quarter and Full Year 2016 Results


ALLEN, Texas, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ:ATRI) announced today that for the fourth quarter of 2016 revenues were $33.3 million compared to $32.4 million in the same period of 2015, while net income decreased to $5.6 million from $6.1 million, and diluted earnings per share were down to $3.00 from $3.27 in the prior-year period. For the full year 2016, Atrion's revenues decreased to $143.5 million from $145.7 million in 2015, net income was down to $27.6 million from $28.9 million and diluted earnings per share decreased to $14.85 from $15.47 in 2015.

David Battat, CEO, commenting on the results for the fourth quarter and the full year 2016 as compared to the prior year periods said, "Revenues in our fourth quarter were higher by 3%, while operating income was down 9%. For the full year, revenues were down 2% with operating income lower by 8%." Mr. Battat added, "We are never pleased when year-over-year comparisons are lower. In prior statements, we cautioned about the impact of a strong dollar and the lapse of certain ophthalmic patents. To manage these forces, we focused on growing revenues in our primary activities in Fluid Delivery and Cardiovascular. These efforts resulted in positive revenue comparisons in both the third and fourth quarters."

Mr. Battat stated, "We have recently been advised that certain ophthalmic customers are experiencing quality problems unrelated to the products we supply them. Shipments to these customers will likely remain on hold until such time as these issues are resolved. We expect deferred shipments to be made up in subsequent periods."

Mr. Battat continued, "For the third consecutive quarter in 2016, we did not engage in share buybacks. Our cash and long and short term investments increased by $5.4 million in the quarter and $15.8 million during the year to a total of $54.0 million at year end."

Mr. Battat concluded, "Economic forecasts for 2017 suggest higher domestic growth and tighter monetary policy, potentially leading to higher inflation and an even stronger dollar. Because all of our manufacturing facilities are based in the U.S., we could experience higher operating costs while netting lower prices on the one-third of our sales destined to foreign markets. To counter these headwinds, we are continuing to focus on sales growth and investments in manufacturing that add capacity and increase efficiency. Although we may see uneven quarterly comparisons to 2016 periods, we are confident that we will end this year with a strong after-tax return on equity."

Atrion Corporation develops and manufactures products primarily for medical applications. The Company's website is

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 the Company's shipments to ophthalmic customers, operating costs in 2017, prices on sales to foreign markets and after-tax return on equity. Words such as "expects," "believes," "anticipates," "intends," "should", "plans," "will" and variations of such words and similar expressions are intended to identify such forward-looking statements.  Forward-looking 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 Securities and Exchange Commission.

(In thousands, except per share data)
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
   2016     2015     2016     2015 
Revenues $ 33,294     $ 32,372     $ 143,487     $ 145,733  
Cost of goods sold   18,067       17,084       75,857       74,752  
Gross profit   15,227       15,288       67,630       70,981  
Operating expenses   7,616       6,958       28,504       28,471  
Operating income   7,611       8,330       39,126       42,510  
Interest income   134       135       448       771  
Other income (expense)   --       (2,411 )     (308 )     (2,411 )
Income before income taxes   7,745       6,054       39,266       40,870  
Income tax provision   (2,174 )     (4 )     (11,685 )     (11,945 )
Net income $ 5,571     $ 6,050     $ 27,581     $ 28,925  
Income per basic share $ 3.05     $ 3.32     $ 15.12     $ 15.67  
Weighted average basic shares                              
outstanding   1,825       1,824       1,824       1,846  
  $ 3.00     $ 3.27     $ 14.85     $ 15.47  
Income per diluted share              
Weighted average diluted shares                              
outstanding   1,859       1,849       1,857       1,870  

(In thousands)
  Dec. 31,   Dec. 31,
ASSETS  2016    2015
  (Unaudited)   (Unaudited)
Current assets:      
Cash and cash equivalents $ 20,022   $ 28,346
Short-term investments   24,080     44
Total cash and short-term investments   44,102     28,390
Accounts receivable   17,166     16,620
Inventories   29,015     29,771
Prepaid expenses and other   3,181     2,934
Deferred income taxes   651     580
Total current assets   94,115     78,295
Long-term investments   9,945     9,866
Property, plant and equipment, net   65,265     63,314
Other assets   13,268     12,861
  $ 182,593   $ 164,336
Current liabilities   9,073     9,316
Line of credit   --     --
Other non-current liabilities   10,532     10,922
Stockholders' equity   162,988     144,098
  $ 182,593   $ 164,336

Jeffery Strickland
Vice President and Chief Financial Officer
(972) 390-9800

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