Chronicle Journal: Finance

Atrion Reports Second Quarter Results

ALLEN, Texas, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter ended June 30, 2020, revenues totaled $38.0 million compared with $40.1 million for the same period in 2019. Net income for the second quarter of 2020 totaled $8.6 million as compared to $9.7 million for the same period in 2019, with diluted earnings per share for the second quarter of 2020 at $4.68 compared to $5.18 for the second quarter of 2019.

Commenting on the Company’s quarterly results for the second quarter of 2020 compared to the same period last year, David A. Battat, President & CEO, stated, “The impact of the pandemic was felt in the second quarter with revenues and operating income lower by 5% and 8%, respectively, essentially the reverse image of the first quarter when revenues were up 5% and operating income was up 6%.” Mr. Battat explained, “The current year second quarter saw hospitals suspend elective surgeries to preserve ICU beds and other resources to deal with the anticipated deluge of Covid-19 patients. As a result, sales of our products used in elective procedures were lower by $3.7 million.” Mr. Battat added, “The net impact on overall sales was limited to $2.1 million thanks to our diversified product portfolio and the tireless efforts of my co-workers who kept our operations running throughout this period.” 

Mr. Battat continued “With an effective tax rate 15% higher in this year’s quarter than the prior year’s second quarter, diluted EPS and net income were lower by 10% and 11%, respectively. During the quarter we purchased 12,158 shares of our common stock at an average cost of $641 per share. As of June 30, 2020, we continue to be debt free while holding $87.5 million in cash and short and long term investments.”

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


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

 Three Months Ended
June 30,
 Six Months Ended
June 30,
  2020   2019   2020   2019 
Revenues$  37,968  $  40,103  $  81,563  $  81,717 
Cost of goods sold   20,499     21,511     44,226     44,422 
  Gross profit   17,469     18,592     37,337     37,295 
Operating expenses   7,423     7,626     15,577     15,291 
  Operating income   10,046     10,966     21,760     22,004 
        
Interest and dividend income   367     581       858       1,163 
Other investment income (loss)     354       161       (673)      372 
Income before income taxes   10,767     11,708     21,945     23,539 
Income tax provision   (2,162)    (2,044)    (4,443)    (4,437)
  Net income$    8,605  $    9,664  $17,502  $19,102 
        
Income per basic share$    4.69  $    5.21  $    9.49  $    10.30 
        
Weighted average basic shares   outstanding   1,835     1,854     1,844     1,854 
        
        
Income per diluted share$    4.68  $    5.18  $    9.47  $    10.25 
        
Weighted average diluted shares   outstanding   1,839     1,864     1,849     1,863 

                   


ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)

 June 30, Dec. 31,
ASSETS 2020  2019
 (Unaudited)  
Current assets:   
  Cash and cash equivalents$  24,099 $  45,048
  Short-term investments   6,574    23,766
    Total cash and short-term investments   30,673    68,814
  Accounts receivable   22,441    18,886
  Inventories   45,805    42,093
  Prepaid expenses and other   3,226    2,545
    Total current assets   102,145    132,338
 

Long-term investments
   56,871    31,772
 

Property, plant and equipment, net
   87,867    84,606
Other assets   13,467    13,315
    
 $  260,350 $  262,031
    
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
    
Current liabilities   15,443    11,274
Line of credit   --    --
Other non-current liabilities   11,380    12,887
Stockholders’ equity   233,527    237,870
    
 $  260,350 $  262,031

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

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