Market Overview

Atrion Reports Second Quarter Results

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ALLEN, Texas, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ:ATRI) today announced that for the second quarter ended June 30, 2018 revenues totaled $38.8 million compared with $36.2 million for the same period in 2017. Net income for the second quarter of 2018 totaled $8.8 million as compared to $10.0 million for the same period in 2017, with diluted earnings per share for the second quarter of 2018 at $4.74 compared to $5.40 in the second quarter of 2017.

Commenting on the Company's results for the second quarter of 2018 compared to the same period last year, David A. Battat, President & CEO, said, "Revenues were up 7% with most major products contributing to this solid performance, and operating income increased 11%." Mr. Battat continued, "Our effective tax rate in the second quarter of 2018 was 22% compared to 5% in the comparable 2017 period largely due to significantly lower tax benefits from stock compensation.  If we excluded those benefits in both periods, our income per diluted share in the 2018 period would have been $4.70 compared to $3.79 in the 2017 quarter."  Mr. Battat concluded, "Manufacturing efficiencies and disciplined cost control resulted in operating income constituting 29% of revenues in the current year quarter compared to 28% in the second quarter of 2017. During the quarter, we added $3.5 million to our cash and short and long term investments bringing the total to $82.4 million as of June 30, 2018. We continue to be debt free."

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

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


ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

  Three Months Ended
June 30,
  Six Months Ended
June 30,
    2018       2017       2018       2017  
Revenues $   38,847     $   36,164     $   78,248     $   74,669  
Cost of goods sold     19,624         18,470         40,074         38,344  
  Gross profit     19,223         17,694         38,174         36,325  
Operating expenses     7,957         7,519         15,542         14,823  
  Operating income     11,266         10,175         22,632         21,502  
               
Interest and dividend income     411         370            742            519  
Other investment income (loss)       (408 )       --           (1,197 )        1  
Income before income taxes     11,269         10,545         22,177         22,022  
Income tax provision     (2,472 )         (519 )       (4,892 )       (2,046 )
  Net income $     8,797     $   10,026     $ 17,285     $ 19,976  
               
Income per basic share $     4.75     $     5.44     $     9.33     $     10.86  
               
Weighted average basic shares outstanding     1,852         1,844         1,853         1,839  
               
Income per diluted share $     4.74     $     5.40     $     9.31     $     10.76  
               
Weighted average diluted shares outstanding       1,857           1,858         1,856         1,856  

                   

ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)

  June 30,   Dec. 31,
ASSETS  2018    2017
  (Unaudited)    
Current assets:      
  Cash and cash equivalents $   36,063   $   30,136
  Short-term investments     24,176       35,468
  Total cash and short-term investments     60,239       65,604
  Accounts receivable     18,269       17,076
  Inventories     32,503       29,354
  Prepaid expenses and other     2,919       3,199
  Total current assets     113,930       115,233
           
Long-term investments     22,208       9,136
           
Property, plant and equipment, net     69,572       66,369
Other assets     13,072       13,042
       
  $   218,782   $   203,780
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Current liabilities     10,331       9,622
Line of credit     --       --
Other non-current liabilities     10,394       9,770
Stockholders' equity     198,057       184,388
       
  $   218,782   $   203,780


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
June 30,
Six Months Ended
June 30,
  2018   2017     2018   2017
GAAP net income $ 8,797   $ 10,026     $ 17,285   $ 19,976
Tax benefit related to employee stock compensation   67     2,983       90     5,253
Adjusted non-GAAP net income $ 8,730   $ 7,043     $ 17,195   $ 14,723
                 
Weighted average diluted shares outstanding   1,857     1,858       1,856     1,856
                 
Adjusted non-GAAP income per diluted share $ 4.70   $ 3.79     $ 9.27   $ 7.93
                 
GAAP income per diluted share $ 4.74   $ 5.40     $ 9.31   $ 10.76
                 

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