Aug 06, 2014 |
Atrion Reports Second Quarter Results |
ALLEN, TX--(Marketwired - Aug 6, 2014) - Atrion Corporation (NASDAQ: ATRI) today announced that for the second quarter ended June 30, 2014 revenues totaled $35.0 million compared with $32.6 million in the same period in 2013. On a diluted per share basis, earnings for the period increased to $3.48 as compared to $3.22 in the same period of last year. Net income for the second quarter totaled $6.9 million compared to $6.5 million in last year's second quarter.
Commenting on the Company's results, David A. Battat, President & CEO, stated "I am pleased with our performance in the second quarter. Compared to the same period of last year, operating income was up 8% while sales were up 7%, reflecting growth in our fluid delivery and cardiovascular products of 13% and 7%, respectively. Net income was up 6%, despite a tax rate 4% higher than in the comparable 2013 quarter largely due to government inaction on the renewal of R&D tax credits." Mr. Battat added "Our increased R&D expenditures reflect an ongoing effort to expand our product portfolio."
Mr. Battat added "During the quarter we devoted much effort and expense to travel and legal work related to potential acquisition or collaboration targets. Due to concerns about valuation, we did not conclude any transaction. We remain highly disciplined in our approach to all investments. Consistent with this approach, we intend to scale down acquisition efforts while we wait for valuations of privately held companies to reach levels that offer a more attractive return on capital." Mr. Battat concluded "In the second quarter, we spent $7.3 million to repurchase 23,512 shares of our stock. Compared to the first quarter of 2014, second quarter buybacks were higher by $2.6 million while payments for estimated taxes were up by $7.7 million. Despite these substantial increases in cash utilization, we ended the quarter with cash and marketable securities of $51.7 million."
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 our ongoing acquisition efforts. 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.
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ATRION CORPORATION |
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
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(In thousands, except per share data) |
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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2014 |
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2013 |
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2014 |
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2013 |
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Revenues |
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$ |
35,025 |
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$ |
32,605 |
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$ |
71,444 |
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$ |
66,097 |
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Cost of goods sold |
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17,616 |
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16,971 |
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36,647 |
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34,754 |
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Gross profit |
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17,409 |
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15,634 |
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34,797 |
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31,343 |
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Operating expenses |
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7,152 |
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6,139 |
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13,840 |
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12,448 |
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Operating income |
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10,257 |
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9,495 |
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20,957 |
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18,895 |
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Interest income |
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364 |
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346 |
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664 |
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|
695 |
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Income before income taxes |
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10,621 |
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9,841 |
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21,621 |
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19,590 |
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Income tax provision |
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(3,739 |
) |
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(3,335 |
) |
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(7,539 |
) |
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(6,450 |
) |
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Net income |
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$ |
6,882 |
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$ |
6,506 |
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$ |
14,082 |
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$ |
13,140 | |
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Income per basic share |
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$ |
3.51 |
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$ |
3.23 |
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$ |
7.14 |
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$ |
6.51 |
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Weighted average basic shares outstanding |
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1,960 |
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2,015 |
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1,971 |
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2,017 |
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Income per diluted share |
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$ |
3.48 |
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$ |
3.22 |
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$ |
7.09 |
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$ |
6.50 |
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Weighted average diluted shares outstanding |
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1,977 |
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2,019 |
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1,987 |
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|
2,021 |
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ATRION CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
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June 30, |
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Dec. 31, |
ASSETS |
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2014 |
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2013 |
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(Unaudited) |
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Current assets: |
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Cash and cash equivalents |
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$ |
23,521 |
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$ |
28,559 |
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Short-term investments |
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18,146 |
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18,351 |
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Total cash and short-term investments |
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41,667 |
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46,910 |
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Accounts receivable |
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16,407 |
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14,164 |
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Inventories |
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27,208 |
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26,266 |
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Prepaid expenses and other |
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2,488 |
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1,603 |
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Deferred income taxes |
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|
1,376 |
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|
1,376 |
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Total current assets |
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89,146 |
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90,319 |
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Long-term investments |
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10,000 |
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10,069 |
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Property, plant and equipment, net |
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59,917 |
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58,328 |
Other assets |
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13,267 |
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13,350 |
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$ |
172,330 |
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$ |
172,066 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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9,994 |
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9,364 |
Line of credit |
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-- |
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-- |
Other non-current liabilities |
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12,466 |
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|
13,708 |
Stockholders' equity |
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|
149,870 |
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|
148,994 |
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$ |
172,330 |
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$ |
172,066 |
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