Atrion Reports Second Quarter Results
Diluted EPS Increases by 20%
ALLEN, TX -- 08/07/2007 -- Atrion Corporation (NASDAQ: ATRI) today announced
that for the second quarter of 2007 revenues were up 11% and diluted
earnings per share were up 20% compared to the results for the second
quarter of 2006.
Commenting on the Company's performance for the second quarter compared to
the second quarter of 2006, Emile A. Battat, Chairman and CEO, said, "Our
20% growth in diluted earnings per share, though substantial, understates
our true performance. Last year's results included the last of a series of
contingent payments from the sale of discontinued operations back in 1997.
We therefore believe that the 28% increase in our income from continuing
operations for the second quarter of 2007 compared to the same period of
2006 is a better indicator of the strength of our performance in the
current year's quarter. The main contributors to our results continue to
be our Ophthalmic and Fluid Delivery businesses, both of which performed
very well during this quarter." Mr. Battat continued, "As we move to the
second half of the year, we would like to reiterate that in the last six
months of 2006 we enjoyed an especially low effective tax rate of 19% due
to additional R&D credits. We expect our tax rate for the balance of this
year to approximate the 32.5% we incurred in the quarter just ended. At
this tax rate, our pretax profit for the second half of 2007 will have to
exceed that of the 2006 period by 20% just to achieve the same after tax
results. Despite the higher anticipated tax rate, we believe that our after
tax earnings for the second half of the year will show a healthy increase
over those of the comparable period last year."
Atrion's revenues for the quarter ended June 30, 2007 totaled $23,199,000
compared with $20,849,000 in the same period in 2006. On a diluted per
share basis, earnings for the period increased to $1.83 as compared to
$1.53 in the same quarter of last year, which included $.08 per share from
discontinued operations. Operating income for the second quarter totaled
$5,426,000 compared to $4,125,000 in last year's second quarter.
Revenues for the first six months of 2007 of $46,237,000 were 15% higher
than revenues of $40,351,000 in the first half of 2006. Diluted earnings
per share for the first half of 2007 were $3.42 versus $2.61 in the first
six months of 2006. Last year's results included $.08 per share from
discontinued operations.
Atrion Corporation designs, develops, manufactures, sells and distributes
products and components primarily to medical markets worldwide.
The 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 tax rate and pretax profit for the second half of
2007. Words such as "expects," "believes," "anticipates," "intends," and
variations of such words and similar expressions are intended to identify
such forward-looking statements. These 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 SEC.
ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2007 2006 2007 2006
-------- -------- -------- --------
Revenues $ 23,199 $ 20,849 $ 46,237 $ 40,351
Cost of goods sold 12,880 12,076 26,258 24,230
-------- -------- -------- --------
Gross profit 10,319 8,773 19,979 16,121
Operating expenses 4,893 4,648 9,816 8,943
-------- -------- -------- --------
Operating income 5,426 4,125 10,163 7,178
Interest income/(expense), net (67) 11 (198) 20
Other income/(expense), net -- (21) -- (21)
-------- -------- -------- --------
Income from continuing operations
before provision for income taxes 5,359 4,115 9,965 7,177
Income tax provision (1,741) (1,295) (3,210) (2,251)
-------- -------- -------- --------
Income from continuing operations 3,618 2,820 6,755 4,926
Gain on disposal of discontinued
operations -- 165 -- 165
-------- -------- -------- --------
Net income $ 3,618 $ 2,985 $ 6,755 $ 5,091
======== ======== ======== ========
Income per basic share:
Income from continuing operations $ 1.92 $ 1.53 $ 3.60 $ 2.68
Gain on disposal of discontinued
operations -- .09 -- .09
-------- -------- -------- --------
Net income per basic share $ 1.92 $ 1.62 $ 3.60 $ 2.77
======== ======== ======== ========
Weighted average basic shares
outstanding 1,883 1,845 1,878 1,840
======== ======== ======== ========
Income per diluted share:
Income from continuing operations $ 1.83 $ 1.45 $ 3.42 $ 2.53
Gain on disposal of discontinued
operations -- .08 -- .08
-------- -------- -------- --------
Net income per diluted share $ 1.83 $ 1.53 $ 3.42 $ 2.61
======== ======== ======== ========
Weighted average diluted shares
outstanding 1,978 1,949 1,977 1,947
======== ======== ======== ========
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
ASSETS 2007 2006
----------- -----------
(Unaudited)
Current assets:
Cash and cash equivalents $ 285 $ 333
Accounts receivable 11,568 10,542
Inventories 16,975 17,115
Prepaid expenses 1,227 1,530
Deferred income taxes 1,138 1,138
----------- -----------
Total current assets 31,193 30,658
Property, plant and equipment, net 52,684 51,442
Other assets 13,551 13,672
----------- -----------
$ 97,428 $ 95,772
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 6,847 6,923
Line of credit 4,700 11,399
Other non-current liabilities 7,965 6,555
Stockholders' equity 77,916 70,895
----------- -----------
$ 97,428 $ 95,772
=========== ===========