U.S. markets closed

Atrion Reports Results for Fourth Quarter and Full Year 2019

ALLEN, Texas, Feb. 26, 2020 (GLOBE NEWSWIRE) -- Atrion Corporation (ATRI) announced today that for the fourth quarter of 2019 revenues were $34.5 million compared to $34.9 million in the same period of 2018, net income was $8.1 million compared to $7.7 million in the prior year period, and diluted earnings per share were $4.33 compared to $4.17 in the prior-year period. For the full year 2019 compared to 2018, Atrion increased revenues to $155.1 million from $152.4 million, net income was $36.8 million compared to $34.3 million, and diluted earnings per share were $19.73 compared to $18.44.

David Battat, President & CEO, commenting on the results for the fourth quarter and the full year 2019 as compared to the prior year periods, said, “Revenues were up 2% for the year, but down 1% for the quarter partly due to a critical nationwide shortage of sterilization capacity. We have contracted for additional sterilization capacity, enabling us to fully meet our current requirements.” Mr. Battat continued, “While operating income continued to reflect an enviable ratio of 26% to sales, it was down 3% in the quarter and for the full year.” Mr. Battat added, “With the benefit of a lower tax rate and an increase in the value of our investment portfolio, net income and diluted earnings per share were both up 4% for the quarter and 7% for the full year.”

Mr. Battat added, “During the year we increased our dividend payout by 15%, while adding $11.1 million to our cash and short and long term investments bringing that total to $100.6 million as of December 31, 2019.”

Mr. Battat concluded, “For the first quarter of 2020, sales and operating income are forecasted to be slightly below the prior year period. We expect each subsequent quarter in 2020 to show progressively higher positive comparisons in both measures, with the full year reflecting high single digit growth in sales and low double digit growth in operating income.”

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

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 sales and operating income for each quarter and full year 2020. Words such as “expects,” “believes,” “anticipates,” “forecasts,” “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. The forward-looking statements in this press release are made as of the date hereof, and we do not undertake any obligation, and disclaim any duty, to supplement, update or revise such statements, whether as a result of subsequent events, changed expectations or otherwise, except as required by applicable law.

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



ATRION CORPORATION

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

  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2019
(unaudited)
  2018
(unaudited)
  2019
(unaudited)
  2018
(unaudited)
Revenues $     34,466      $     34,926      $   155,066      $   152,448   
Cost of goods sold     18,964          19,321        84,378        80,670   
         Gross profit     15,502          15,605        70,688        71,778   
Operating expenses     7,427          7,287        30,159        30,071   
         Operating income     8,075          8,318        40,529        41,707   
               
Interest and dividend income   591        473        2,487        1,667   
Other investment income (loss)   (113)       (190)         152        (1,380)  
Other income   --        22        --        42   
Income before income taxes     8,553          8,623        43,168        42,036   
Income tax benefit (provision)   (489)       (874)       (6,407)       (7,781)  
         Net income $     8,064      $     7,749      $   36,761      $   34,255   
 
             
Income per basic share $     4.35      $     4.18      $   19.82      $   18.49   
               
Weighted average basic shares
      outstanding
    1,855          1,853        1,855        1,853   
               
Income per diluted share $     4.33      $     4.17      $   19.73      $   18.44   
               
Weighted average diluted shares
      outstanding
    1,862          1,860        1,863        1,858   
 


ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)

  Dec. 31,   Dec. 31,
ASSETS 2019    2018
  (unaudited)   (unaudited)
Current assets:      
Cash and cash equivalents $   45,048   $   58,753
Short-term investments     23,766       9,684
Total cash and short-term investments     68,814       68,437
Accounts receivable     18,886       17,014
Inventories     42,093       33,572
Prepaid expenses and other     2,545       3,242
Total current assets     132,338       122,265
Long-term investments     31,772       21,048
Property, plant and equipment, net     84,606       74,893
Other assets     13,315       13,010
       
  $   262,031   $   231,216
       
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
       
Current liabilities     11,274       10,220
Line of credit     --       --
Other non-current liabilities     12,887       10,229
Stockholders’ equity     237,870       210,767
       
  $   262,031   $   231,216