Atrion Reports Third Quarter Results

ALLEN, TX--(Marketwired - October 31, 2014) - Atrion Corporation (NASDAQ: ATRI) today announced that for the third quarter of 2014 revenues totaled $36.6 million compared with $34.0 million for the same period in 2013. Operating income for the just ended quarter was $11.2 million compared to $10.7 million in the same period of 2013. On a diluted per share basis, earnings for the period increased to $3.91 as compared to $3.81 for the same quarter of last year. Net income for the third quarter of $7.7 million was the same in last year’s third quarter.

Commenting on the results for the third quarter compared to the same period of 2013, David Battat, President and CEO, said, “Overall sales were up 8%, with improvements in all product areas. Fluid delivery products increased 11%, and sales of non-medical products in our ‘Other’ category showed an increase of 14%. The substantial growth in this latter category skewed our operating income somewhat for the quarter, as margins for these non-medical products are lower. Changes in our product mix resulted in gross profit increasing by a smaller 6%, and in a 5% increase in operating income for the quarter.” Mr. Battat continued, “Despite these improvements, net income was flat as our tax rate was 9% higher than in last year’s quarter due to Congressional inaction on extending R&D tax credits that expired on December 31, 2013. If the extension is passed prior to the end of the year, our R&D tax credits for the full year will be reflected in the results for the fourth quarter.” Mr. Battat concluded, “Continued strong cash generation during the quarter increased our cash and marketable securities by $3.4 million to $55.1 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 the use of R&D tax credits for 2014. 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.

 ATRION CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- 2014 2013 2014 2013 --------- --------- --------- --------- Revenues $ 36,625 $ 34,044 $ 108,069 $ 100,142 Cost of goods sold 18,587 17,003 55,234 51,757 --------- --------- --------- --------- Gross profit 18,038 17,041 52,835 48,385 Operating expenses 6,812 6,328 20,652 18,777 --------- --------- --------- --------- Operating income 11,226 10,713 32,183 29,608 Interest income 240 310 904 1,005 Other income 12 - 13 - --------- --------- --------- --------- Income before income taxes 11,478 11,023 33,100 30,613 Income tax provision (3,793) (3,350) (11,332) (9,800) --------- --------- --------- --------- Net income $ 7,685 $ 7,673 $ 21,768 $ 20,813 ========= ========= ========= ========= Income per basic share $ 3.94 $ 3.82 $ 11.08 $ 10.33 ========= ========= ========= ========= Weighted average basic shares outstanding 1,949 2,007 1,964 2,014 ========= ========= ========= ========= Income per diluted share $ 3.91 $ 3.81 $ 10.99 $ 10.31 ========= ========= ========= ========= Weighted average diluted shares outstanding 1,966 2,016 1,980 2,019 ========= ========= ========= ========= ATRION CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) Sept. 30, Dec. 31, ASSETS 2014 2013 ----------- ----------- (Unaudited) Current assets: Cash and cash equivalents $ 26,921 $ 28,559 Short-term investments 18,178 18,351 ----------- ----------- Total cash and short-term investments 45,099 46,910 Accounts receivable 18,399 14,164 Inventories 28,408 26,266 Prepaid expenses and other 1,974 1,603 Deferred income taxes 1,376 1,376 ----------- ----------- Total current assets 95,256 90,319 Long-term investments 10,000 10,069 Property, plant and equipment, net 60,446 58,328 Other assets 13,218 13,350 ----------- ----------- $ 178,920 $ 172,066 =========== =========== LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities 10,781 9,364 Line of credit -- -- Other non-current liabilities 11,797 13,708 Stockholders’ equity 156,342 148,994 ----------- ----------- $ 178,920 $ 172,066 =========== ===========