Market Overview

Atrion Reports First Quarter Results

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ALLEN, Texas, May 10, 2017 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ:ATRI) today announced diluted earnings per share for the first quarter of 2017 were $5.36 as compared to $3.74 in the first quarter of 2016. Revenues for the quarter ended March 31, 2017 were $38.5 million compared with $36.2 million in the same period in 2016. Net income in the current-year quarter totaled $10.0 million compared to $6.9 million in last year's first quarter.

Commenting on the Company's results for the first quarter of 2017 compared to the same period last year, David A. Battat, President & CEO, said, "Sales were up 6%, with Ophthalmology and Fluid Delivery showing growth and aided by relatively stable foreign exchange rates. With improved scale in manufacturing, operating income increased by 8%." Mr. Battat added, "Diluted earnings per share were up 43% from last year's $3.74, reflecting, in part, a tax benefit related to employee stock compensation that lowered our tax rate to 13% compared to 32% in the first quarter of 2016. Excluding the tax benefit, diluted EPS for the quarter increased 11%, generally in line with the increase in our operating income." Mr. Battat concluded, "Cash and short and long term investments increased by $2.0 million to a total of $56.0 million as of March 31, 2017."

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

ATRION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
   
  Three Months Ended
March 31, 
   2017     2016 
Revenues $     38,504     $     36,215  
Cost of goods sold     19,873         18,650  
  Gross profit     18,631         17,565  
Operating expenses     7,304         7,100  
  Operating income     11,327         10,465  
       
Interest income     149         123  
Other income (expense), net       --           (345 )
  Income before income taxes     11,476         10,243  
Income tax provision     (1,526 )       (3,298 )
  Net income     9,950         6,945  
       
       
Income per basic share $     5.42     $     3.81  
       
Weighted average basic shares outstanding     1,835         1,823  
       
       
Income per diluted share $     5.36     $     3.74  
       
Weighted average diluted shares outstanding       1,855         1,857  


ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
       
  Mar. 31,   Dec. 31,
ASSETS  2017    2016
  (Unaudited)    
Current assets:      
  Cash and cash equivalents $   17,529   $   20,022
  Short-term investments     29,019       24,080
    Total cash and short-term investments     46,548       44,102
  Accounts receivable     20,679       17,166
  Inventories     30,354       29,015
  Prepaid expenses and other     2,003       3,181
      Total current assets     99,584       93,464
           
Long-term investments     9,463       9,945
           
Property, plant and equipment, net     65,601       65,265
Other assets     13,141       13,268
       
  $   187,789   $   181,942
       
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
  Current liabilities     10,124       9,073
  Line of credit     --       --
  Other non-current liabilities     9,969       9,881
  Stockholders' equity     167,696       162,988
       
  $   187,789   $   181,942

NON-GAAP FINANCIAL MEASURE RECONCILIATION
(In thousands, except per share data)

Included in our news release is a non-GAAP financial measure that is calculated by excluding certain tax benefits that are included in financial measures determined in accordance with GAAP.  We have provided this non-GAAP measure as an additional tool for investors to better understand our operating results and to facilitate a comparison of the periods shown.  This measure should be considered in addition to, rather than as a substitute for, GAAP measures of the Company's performance.  The table below provides a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.

    Three Months Ended
  March 31,
%
     2017      2016
  Increase  
GAAP net income $ 9,950   $ 6,945    
Minus tax benefit related to employee stock compensation   2,270       --    
Adjusted net income (non-GAAP) $ 7,680   $ 6,945    
           
Weighted average diluted shares outstanding   1,855     1,857    
           
Adjusted income per diluted share (non-GAAP) $ 4.14   $ 3.74   11 %
           
GAAP income per diluted share $ 5.36   $  3.74   43 %

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

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