UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
Form 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): May 10, 2017
Atrion Corporation
(Exact Name of Registrant as Specified in Charter)
| DELAWARE | 001-32982 | 63-0821819 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| One Allentown Parkway, Allen, Texas 75002 |
| (Address of Principal Executive Offices) (Zip Code) |
972-390-9800
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On May 10, 2017, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated May 10, 2017
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Atrion Corporation | ||
| Date: May 10, 2017 | By: | /s/ David A. Battat |
| David A. Battat | ||
| President and CEO | ||
EXHIBIT 99.1
Atrion Reports First Quarter Results
ALLEN, Texas, May 10, 2017 (GLOBE NEWSWIRE) -- Atrion Corporation (Nasdaq:ATRI) today announced diluted earnings per share for the first quarter of 2017 were $5.36 as compared to $3.74 in the first quarter of 2016. Revenues for the quarter ended March 31, 2017 were $38.5 million compared with $36.2 million in the same period in 2016. Net income in the current-year quarter totaled $10.0 million compared to $6.9 million in last year’s first quarter.
Commenting on the Company’s results for the first quarter of 2017 compared to the same period last year, David A. Battat, President & CEO, said, “Sales were up 6%, with Ophthalmology and Fluid Delivery showing growth and aided by relatively stable foreign exchange rates. With improved scale in manufacturing, operating income increased by 8%." Mr. Battat added, “Diluted earnings per share were up 43% from last year's $3.74, reflecting, in part, a tax benefit related to employee stock compensation that lowered our tax rate to 13% compared to 32% in the first quarter of 2016. Excluding the tax benefit, diluted EPS for the quarter increased 11%, generally in line with the increase in our operating income.” Mr. Battat concluded, “Cash and short and long term investments increased by $2.0 million to a total of $56.0 million as of March 31, 2017.”
Atrion Corporation develops and manufactures products primarily for medical applications. The Company’s website is www.atrioncorp.com.
| ATRION CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Revenues | $ | 38,504 | $ | 36,215 | ||||
| Cost of goods sold | 19,873 | 18,650 | ||||||
| Gross profit | 18,631 | 17,565 | ||||||
| Operating expenses | 7,304 | 7,100 | ||||||
| Operating income | 11,327 | 10,465 | ||||||
| Interest income | 149 | 123 | ||||||
| Other income (expense), net | -- | (345 | ) | |||||
| Income before income taxes | 11,476 | 10,243 | ||||||
| Income tax provision | (1,526 | ) | (3,298 | ) | ||||
| Net income | 9,950 | 6,945 | ||||||
| Income per basic share | $ | 5.42 | $ | 3.81 | ||||
| Weighted average basic shares outstanding | 1,835 | 1,823 | ||||||
| Income per diluted share | $ | 5.36 | $ | 3.74 | ||||
| Weighted average diluted shares outstanding | 1,855 | 1,857 | ||||||
| ATRION CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) | |||||
| Mar. 31, | Dec. 31, | ||||
| ASSETS | 2017 | 2016 | |||
| (Unaudited) | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 17,529 | $ | 20,022 | |
| Short-term investments | 29,019 | 24,080 | |||
| Total cash and short-term investments | 46,548 | 44,102 | |||
| Accounts receivable | 20,679 | 17,166 | |||
| Inventories | 30,354 | 29,015 | |||
| Prepaid expenses and other | 2,003 | 3,181 | |||
| Total current assets | 99,584 | 93,464 | |||
| Long-term investments | 9,463 | 9,945 | |||
| Property, plant and equipment, net | 65,601 | 65,265 | |||
| Other assets | 13,141 | 13,268 | |||
| $ | 187,789 | $ | 181,942 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities | 10,124 | 9,073 | |||
| Line of credit | -- | -- | |||
| Other non-current liabilities | 9,969 | 9,881 | |||
| Stockholders’ equity | 167,696 | 162,988 | |||
| $ | 187,789 | $ | 181,942 | ||
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 March 31, | % | ||||||||||||
| 2017 | 2016 | Increase | |||||||||||
| GAAP net income | $ | 9,950 | $ | 6,945 | |||||||||
| Minus tax benefit related to employee stock compensation | 2,270 | -- | |||||||||||
| Adjusted net income (non-GAAP) | $ | 7,680 | $ | 6,945 | |||||||||
| Weighted average diluted shares outstanding | 1,855 | 1,857 | |||||||||||
| Adjusted income per diluted share (non-GAAP) | $ | 4.14 | $ | 3.74 | 11 | % | |||||||
| GAAP income per diluted share | $ | 5.36 | $ | 3.74 | 43 | % | |||||||
Jeffery Strickland
Vice President and Chief Financial Officer
(972) 390-9800