Atrion Reports Second Quarter Results; Operating Income Up 29%.ALLEN Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. , Texas--(BUSINESS WIRE)--July 22, 1999-- Atrion Corporation (Nasdaq/NM:ATRI) today announced higher revenues and earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the second quarter and six-month period ended June June: see month. 30, 1999. Atrion's revenues for the second quarter increased 12% to $12,737,000 compared with $11,375,000 in the same period last year. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share basis, earnings from continuing operations for the period increased 35% to $.23 as compared to $.17 in the second quarter of 1998. Net income for the second quarter of 1999, including a gain from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , totaled $.29 per diluted share versus $.17 per diluted share in the prior-year period. Revenues for the first six months of 1999 increased 13% to $24,318,000 from $21,537,000 in the first half of 1998. Income from continuing operations for the first half of 1999 was $.36 per diluted share versus $.32 per diluted share in the same period last year. Net income for the first half of 1999, including a gain from discontinued operations, totaled $.42 per diluted share versus $.32 per diluted share in the same period last year. The earnings per share calculations in both 1999 periods reflect the impact of the recent repurchases of over 725,000 shares of the Company's common stock. Commenting on the Company's results, Emile A. Battat, Chairman, said, "We are very pleased with our improved operating results in the second quarter caused by our stronger revenues at all of our operating divisions compared with the second quarter of 1998. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the current period of $913,000 before interest and taxes was at its highest level in several years and was 29% higher than in the second quarter of 1998. Particularly satisfying is the fact that this improvement was realized while we continue to expand our sales and marketing activities to promote future growth in all of our operations. We continue to generate a strong cash flow measured by earnings from continuing operations plus depreciation and amortization. Cash flow for the second quarter equaled $.59 per share compared with $.44 per share in the second quarter of 1998, a 34% increase. Tax credits attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to our research and development activities resulted in lower effective income tax rates for the three and six-month periods ended June 30, 1999, as compared to the same periods last year and contributed to the improvements in our after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. results. We expect to benefit from additional tax credits in the third and fourth quarters of 1999 as well." Mr. Battat also stated, "We continue to expect increased revenues, earnings and cash flow for the third and fourth quarters of 1999 compared with the same periods in 1998." Commenting on the Company's developmental business, Mr. Battat noted, "Increasing adoption of our Myocardial myocardial /myo·car·di·al/ (-kahr´de-al) pertaining to the muscular tissue of the heart. myocardial pertaining to the muscular tissue of the heart (the myocardium). Protection System is evidenced by the doubling of our sales of disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. sets in the second quarter of 1999 compared to the second quarter of 1998. This is the best indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of the usage of our equipment in the operating room operating room n. Abbr. OR A room equipped for performing surgical operations. ." The Company repurchased 351,924 shares of Atrion common stock during the quarter ended June 30, 1999, at a price of $10 per share. After these repurchases the Company's book value now exceeds $18.50 per share based upon its 2,474,029 shares currently outstanding. Atrion Corporation designs, develops, manufactures, sells and distributes medical products and components to markets worldwide. The statements in this press release that are forward looking are based upon current expectations and actual results may differ materially. Such statements include, but are not limited to, Atrion's expectations regarding revenues, earnings and cash flow for the third and fourth quarters of 1999. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained herein involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the effect of changing economic and business conditions, market acceptance of the Company's products, changes in expected research and development requirements, changes in growth of the medical products industry and other factors set forth in the Company's filings with the SEC. -0-
ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
Revenues $ 12,737 $ 11,375 $ 24,318 $ 21,537
Cost of goods sold 7,527 6,740 14,483 13,167
---------- ---------- ---------- ----------
Gross profit 5,210 4,635 9,835 8,370
Operating expenses 4,297 3,929 8,316 7,085
---------- ---------- ---------- ----------
Operating income 913 706 1,519 1,285
Interest income
(expense), net (78) 137 (72) 330
Other income, net -- 12 10 40
---------- ---------- ---------- ----------
Income before
income taxes 835 855 1,457 1,655
Income tax provision 215 318 444 620
---------- ---------- ---------- ----------
Income from
continuing
operations 620 537 1,013 1,035
Gain on disposal
of discontinued
operations 165 -- 165 --
---------- ---------- ---------- ----------
Net income $ 785 $ 537 $ 1,178 $ 1,035
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Earnings per basic
share:
Continuing
operations $ .24 $ .17 $ .37 $ .32
Gain on disposal
of discontinued
operations .06 -- .06 --
---------- ---------- ---------- ----------
Net income per
share $ .30 $ .17 $ .43 $ .32
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Weighted average
basic shares
outstanding 2,582 3,202 2,750 3,218
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Earnings per
diluted share:
Continuing
operations $ .23 $ .17 $ .36 $ .32
Gain on disposal
of discontinued
operations .06 -- .06 --
---------- ---------- ---------- ----------
Net income per
share $ .29 $ .17 $ .42 $ .32
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Weighted average
diluted shares
outstanding 2,640 3,203 2,787 3,220
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
ATRION CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
1999 1998
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 101 $ 5,635
Accounts receivable 8,645 7,278
Inventories 9,960 8,568
Other current assets 1,186 1,358
---------- ----------
Total current assets 19,892 22,839
Property, plant and equipment, net 25,498 17,394
Other assets 19,965 20,182
---------- ----------
$ 65,355 $ 60,415
---------- ----------
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 6,139 $ 3,929
Current maturities of
long-term debt -- 203
---------- ----------
Total current liabilities 6,139 4,132
Long-term debt 6,225 --
Other non-current liabilities 7,048 6,914
Stockholders' equity 45,943 49,369
---------- ----------
$ 65,355 $ 60,415
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