Atrion Reports Significantly Improved First Quarter Results; Revenues up 28% and Income from Continuing Operations up 107%.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)--May 6, 1998--Atrion Corporation (Nasdaq/NM - ATRI) today announced higher revenues and income 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 first quarter ended March 31, 1998. Highlights of the quarter included the acquisition of several product lines from Quest See Qwest and Quest disk. Quest See also Adventurousness, Journey, Wandering. Ahab, Captain pursues Moby Dick, the great white whale, even to the point of losing his own life. [Am. Lit. Medical, Inc., which in turn contributed to Atrion's revenue and 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. growth for the period, as well as the introduction of a new aortic aortic pertaining to or emanating from the aorta. See also aortic arch. aortic aneurysm occurs most often in dogs, where it is caused by Spirocerca lupi larvae, turkeys and primates, causing dyspnea, cyanosis and coughing. punch Punch Hooknosed, humpbacked character in marionette and puppet shows (see puppetry). Adapted from a stock character of the commedia dell'arte, the puppet character was taken to France and England by Italian puppeteers in the 1660s. which continues the planned expansion of the Company's cardiovascular cardiovascular /car·dio·vas·cu·lar/ (-vas´ku-ler) pertaining to the heart and blood vessels. car·di·o·vas·cu·lar adj. Abbr. product line. Atrion's revenues for the first quarter increased 28% to $10,162,000 compared with $7,946,000 in the same period last year. Income from continuing operations for the period more than doubled, increasing 107% to $498,000 or $.15 per 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. share versus $240,000 or $.07 per diluted share in the prior-year period. In May 1997, Atrion completed the sale of its natural gas pipeline and marketing subsidiaries. Accordingly, the revenues and expenses of those operations have been aggregated and reported as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for all periods presented. Net income for the first quarter of 1997, including discontinued operations, totaled $1,632,000 or $.50 per diluted share. "With the acquisition of the Quest Medical cardiovascular and fluid delivery product lines during the first quarter of 1998, we accelerated our transition to a growth-oriented medical products company," commented Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. A. Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. , President and Chief Executive Officer. "Over the past three months since completing that acquisition, we have gained a greater working knowledge of those product lines and have become even more excited about the contribution we expect them to make to our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth and profitability. In order to realize their full potential, we are taking steps now to enhance certain of those product lines, including our catheter catheter /cath·e·ter/ (kath´e-ter) 1. a tubular, flexible surgical instrument that is inserted into a cavity of the body to withdraw or introduce fluid. 2. urethral c. lines and the 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, and to expand significantly our marketing capabilities through additions to our direct sales force and our distributor networks. The increased marketing and research and development costs associated with these steps are expected to have an adverse impact on our earnings for the second, third and possibly fourth quarters of this year. However, we believe that these steps are investments in our future that will greatly accelerate our growth and market presence. Furthermore, as we are making these investments to enhance our product lines and marketing capabilities, we are continuing our efforts to achieve operating synergies and to assure the maximum utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of our facilities and personnel. We believe that all of these actions will prove to be very beneficial over the long term. "Aside from the potential we foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. in our new product lines, we also continue to witness new opportunities in our other medical products businesses," Howard added. "During the first quarter, we introduced our new aortic punch -- marketed under the brand name Clean Cut(TM) -- which represents an important step in our development of brand name products." As of March 31, 1998, Atrion reported total assets of $60,975,000, including $6,965,000 in cash and cash equivalents. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. totaled $50,019,000 at March 31, 1998, representing a book value of $15.62 per share. With our cash and unused credit facility, we plan to continue expanding our business through internal growth and, where appropriate, strategic acquisitions. The Company repurchased 42,000 shares of Atrion common stock during the quarter ended March 31, 1998, pursuant to the Company's previously authorized stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program. "Subject to market conditions, the Company may repurchase additional shares of the Company's common stock from time to time under this program when we believe our stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. and represents an attractive investment opportunity for the Company," Howard stated. 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. Therefore, the inclusion of such forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information should not be regarded as a representation by Atrion that the objectives or plans of Atrion will be achieved. Such statements include, but are not limited to, Atrion's expectations regarding contributions from product lines acquired from Quest Medical, Inc., the expansion of product lines and marketing capabilities, marketing and research and development costs and their impact on earnings for the second, third and fourth quarters of 1998, acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of the Company's growth and market presence, new opportunities for the Company's medical products businesses and synergies that may be achieved. Words such as "expects," "believes" and variations of such words and similar expressions are intended to identify such 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. . Forward-looking statements 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, the successful integration of acquired product lines and personnel with the Company's existing businesses, market acceptance of the Company's products, higher than expected marketing and research and development costs, and changes in growth of the medical products industry. -0-
ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
-----------------------
1998 1997
---- ----
Revenues $ 10,162 $ 7,946
Cost of goods sold 6,428 5,103
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Gross profit 3,734 2,843
Operating expenses 3,155 2,351
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Operating income 579 492
Interest income (expense), net 193 (129)
Other income, net 28 32
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Income from continuing
operations before income taxes 800 395
Income tax provision 302 155
--------- ---------
Income from continuing operations 498 240
Income from discontinued operations -- 1,392
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Net income $ 49 $ 1,632
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Earnings per basic share:
Continuing operations $ .15 $ .07
Discontinued operations -- .44
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Net income per share $ .15 $ .51
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Weighted average basic shares
outstanding 3,234 3,215
--------- ---------
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Earnings per diluted share:
Continuing operations $ .15 $ .07
Discontinued operations -- .43
--------- ---------
Net income per share $ .15 $ .50
--------- ---------
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Weighted average diluted shares
outstanding 3,238 3,252
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ATRION CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, Dec. 31,
1998 1997
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 6,965 $ 32,172
Accounts receivable 6,597 2,897
Inventories 8,401 3,960
Other current assets 920 337
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Total current assets 22,883 39,366
Property, plant and equipment, net 17,583 13,142
Other assets 20,509 8,434
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$ 60,975 $ 60,942
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 5,516 $ 5,320
Current maturities of long-term debt 203 453
--------- ---------
Total current liabilities 5,719 5,773
Long-term debt 102 203
Other non-current liabilities 5,135 4,980
Stockholders' equity 50,019 49,986
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$ 60,975 $ 60,942
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CONTACT: Atrion Corp., Allen Jeffery Jeffery is a surname and occasionally an alternate spelling of the given name Jeffrey. It may refer to:
William Strickland , 972/390-9800 |
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