ALLEN, TX --(Marketwired - August 09, 2016) - Atrion Corporation (
Commenting on the Company's results for the second quarter of 2016 compared to the same period last year, David A. Battat, President & CEO, said, "Overall sales were down 4%, reflecting lower prices in Ophthalmology following patent expirations and the impact of exchange rates on all our exports." Mr. Battat continued, "Cost of goods remained unchanged, as lower revenues reflected lower prices rather than volume. As a result, operating income was down 9% despite lower operating expenses in the period." Mr. Battat stated, "Net income for the second quarter was basically flat, benefitting from our adoption of a new accounting rule concerning employee share-based compensation that reduced our taxes from an effective rate of 35% in the second quarter of 2015 to 27% in the current year period, resulting in a $623,000 tax savings. Diluted EPS was up 1%, with the number of diluted shares slightly lower than in last year's second quarter." Mr. Battat added, "During the quarter we did not engage in stock buybacks while adding $2.3 million to our cash and short and long term investments, bringing the total to $41.4 million as of June 30, 2016." Mr. Battat stated, "For the remaining quarters of 2016, we expect to continue to see lower realized prices, while additional tax benefits from the new accounting rule are uncertain and will be uneven going forward."
Mr. Battat concluded, "Our Board of Directors, confident in our long term growth, has approved a quarterly dividend increase from $0.90 to $1.05 per share payable on September 30, 2016 to stockholders of record as of September 15, 2016."
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 prices for products for the remaining quarters in 2016, future tax benefits from the new accounting rule and the Company's long-term growth. 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.
| ATRION CORPORATION | ||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Revenues | $ | 36,655 | $ | 37,655 | $ | 72,358 | $ | 75,979 | ||||||||||
| Cost of goods sold | 18,928 | 18,871 | 37,578 | 38,671 | ||||||||||||||
| Gross profit | 17,215 | 18,784 | 34,780 | 37,308 | ||||||||||||||
| Operating expenses | 7,141 | 7,664 | 14,241 | 14,702 | ||||||||||||||
| Operating income | 10,074 | 11,120 | 20,539 | 22,606 | ||||||||||||||
| Interest income | 85 | 328 | 208 | 505 | ||||||||||||||
| Other income (expense), net | 36 | -- | (309 | ) | -- | |||||||||||||
| Income before income taxes | 10,195 | 11,448 | 20,438 | 23,111 | ||||||||||||||
| Income tax provision | (2,745 | ) | (3,974 | ) | (6,042 | ) | (8,036 | ) | ||||||||||
| Net income | $ | 7,450 | $ | 7,474 | $ | 14,396 | $ | 15,075 | ||||||||||
| Income per basic share | $ | 4.09 | $ | 4.04 | $ | 7.90 | $ | 8.10 | ||||||||||
| Weighted average diluted shares outstanding | 1,822 | 1,850 | 1,823 | 1,862 | ||||||||||||||
| Income per diluted share | $ | 4.02 | $ | 3.99 | $ | 7.76 | $ | 8.00 | ||||||||||
| Weighted average diluted shares outstanding | 1,853 | 1,872 | 1,855 | 1,884 | ||||||||||||||
| ATRION CORPORATION | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| June 30, | Dec. 31, | |||||||
| ASSETS | 2016 | 2015 | ||||||
| (Unaudited) | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 30,817 | $ | 28,346 | ||||
| Short-term investments | 6 | 44 | ||||||
| Total cash and short-term investments | 30,823 | 28,390 | ||||||
| Accounts receivable | 18,833 | 16,620 | ||||||
| Inventories | 31,167 | 29,771 | ||||||
| Prepaid expenses and other | 3,815 | 2,934 | ||||||
| Deferred income taxes | 580 | 580 | ||||||
| Total current assets | 85,218 | 78,295 | ||||||
| Long-term investments | 10,617 | 9,866 | ||||||
| Property, plant and equipment, net | 64,289 | 63,314 | ||||||
| Other assets | 12,865 | 12,861 | ||||||
| $ | 172,989 | $ | 164,336 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | 8,236 | 9,316 | ||||||
| Line of credit | -- | -- | ||||||
| Other non-current liabilities | 11,167 | 10,922 | ||||||
| Stockholders' equity | 153,586 | 144,098 | ||||||
| $ | 172,989 | $ | 164,336 | |||||
Jeffery Strickland Vice President and Chief Financial Officer (972) 390-9800
