EX-99.1 2 a5204765-ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 Atrion Reports Second Quarter Results; Diluted EPS Increases by 30% ALLEN, Texas--(BUSINESS WIRE)--Aug. 7, 2006--Atrion Corporation (Nasdaq:ATRI) today announced that for the second quarter of 2006 revenues were up 15% and diluted earnings per share were up 30% compared to the results for the second quarter of 2005. Commenting on the Company's results, Emile A. Battat, Chairman and CEO, said "We are extremely pleased with the substantial growth in revenues and earnings in the second quarter. Demand was very strong for our fluid delivery and cardiovascular product groups, and we also experienced a resumption of shipments to one of our large ophthalmic customers whose requirements were impacted by its internal issues. For the quarter, our operating income represented 20% of our revenues, a record high for our company. While this percentage has been rising in each of the last four full calendar years, it stood at 10% as recently as calendar year 2002," Mr. Battat added. "The construction of our new plant in Florida is slightly behind schedule, but the new facility is close to completion. In fact partial occupancy has been approved, and in late June we began the process of moving equipment. We expect to complete our staged move by the end of the third quarter. During that quarter we will incur higher expenses as we absorb costs associated with the physical move as well as the inefficiencies of conducting simultaneous partial operations at both the new and the old plants. While we remain cautious about the results for the full year 2006, we still believe that we are on track to meet the double-digit growth in earnings that we targeted at the beginning of the year." Atrion's revenues for the quarter ended June 30, 2006 totaled $20,849,000 compared with $18,102,000 in the same period in 2005. On a diluted per share basis, earnings for the period increased to $1.53 as compared to $1.18 in the same quarter of last year. Both periods included residual earnings of $.08 and $.09 per share, respectively from operations that were discontinued in 1997. Operating income for the current-year period totaled $4,125,000 compared to $3,131,000 in last year's second quarter. Revenues for the first six months of 2006 of $40,351,000 were 10% higher than revenues of $36,747,000 in the first half of 2005. Diluted earnings per share for the first half of 2006 were $2.61 versus $2.41 in the first six months of 2005. Both periods included $.08 and $.09 per share, respectively, 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 completion of its move to its new facility in Florida and growth in earnings in 2006. 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, ------------------ ----------------- 2006 2005 2006 2005 --------- -------- -------- -------- Revenues $20,849 $18,102 $40,351 $36,747 Cost of goods sold 12,076 10,896 24,230 21,920 --------- -------- -------- -------- Gross profit 8,773 7,206 16,121 14,827 Operating expenses 4,648 4,075 8,943 8,278 --------- -------- -------- -------- Operating income 4,125 3,131 7,178 6,549 Interest income/(expense), net 11 (12) 20 (17) Other income/(expense), net (21) -- (21) 8 --------- -------- -------- -------- Income from continuing operations before provision for income taxes 4,115 3,119 7,177 6,540 Income tax provision (1,295) (1,012) (2,251) (2,138) --------- -------- -------- -------- Income from continuing operations 2,820 2,107 4,926 4,402 Gain on disposal of discontinued operations 165 165 165 165 --------- -------- -------- -------- Net income $2,985 $2,272 $5,091 $4,567 ========= ======== ======== ======== Income per basic share: Income from continuing operations $1.53 $1.18 $2.68 $2.51 Gain on disposal of discontinued operations .09 .09 .09 .09 --------- -------- -------- -------- Net income per basic share $1.62 $1.27 $2.77 $2.60 ========= ======== ======== ======== Weighted average basic shares outstanding 1,845 1,789 1,840 1,756 ========= ======== ======== ======== Income per diluted share: Income from continuing operations $1.45 $1.09 $2.53 $2.32 Gain on disposal of discontinued operations .08 .09 .08 .09 --------- -------- -------- -------- Net income per diluted share $1.53 $1.18 $2.61 $2.41 ========= ======== ======== ======== Weighted average diluted shares outstanding 1,949 1,925 1,947 1,895 ========= ======== ======== ======== ATRION CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) June 30, Dec. 31, ASSETS 2006 2005 ----------- -------- (Unaudited) Current assets: Cash and cash equivalents $185 $525 Accounts receivable 9,911 8,291 Inventories 17,694 17,705 Prepaid expenses 1,441 832 Deferred income taxes 620 620 ----------- -------- Total current assets 29,851 27,973 Property, plant and equipment, net 46,987 35,254 Other assets 15,153 15,243 ----------- -------- $91,991 $78,470 =========== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities 8,694 8,226 Line of credit 11,001 2,529 Other non-current liabilities 5,909 5,820 Stockholders' equity 66,387 61,895 ----------- -------- $91,991 $78,470 =========== ======== CONTACT: Atrion Corporation Jeffery Strickland, 972-390-9800