Full Press Release Details
Atrion Reports First Quarter Results
ALLEN, Texas--(BUSINESS WIRE)--April 29, 2005--Atrion Corporation
(Nasdaq:ATRI) today announced that for the first quarter of 2005
diluted earnings per share were up 76% compared to the results for the
first quarter of 2004. Revenues in the first quarter were 11% higher
than in the first quarter of last year.
Commenting on the Company's results, Emile A. Battat, Chairman,
said: "We are very pleased with the double digit increase in sales and
the exceptionally strong increase in profits. The increase in profits
reflected not only a growth in sales but also the more favorable mix
towards higher-margin products. This resulted in a significant
increase in gross margin as a percentage of sales for the quarter,
without which our diluted earnings per share would have been $0.87, a
24% increase over the same period last year rather than the reported
increase of 76%. There is no assurance that in coming quarters
higher-margin products will represent as significant a portion of our
overall sales as in the first quarter."
Atrion's revenues for the quarter ended March 31, 2005 were
$18,645,000 compared with $16,789,000 in the same period in 2004. On a
diluted per share basis, earnings for the period increased to $1.23 as
compared to $.70 in the same quarter of last year. Operating income
for the current year period totaled $3,418,000, compared to $1,901,000
in last year's first quarter.
At the end of the quarter, Halkey-Roberts Corporation, a Company
subsidiary, and Filtertek Inc. settled their pending litigation. Terms
of the settlement required Halkey-Roberts to make a one-time payment
to Filtertek in exchange for a paid-up license to manufacture and sell
swabable valves that were the subject of the litigation. The cost of
the settlement was apportioned to past and future licensing periods.
No charges were made against our first quarter income for this
settlement since the reserves previously established for the cost of
litigation were sufficient to cover the liability for past sales as
well as expenses incurred to date. The cost of the settlement
associated with the future licensing period will be amortized on a
straight-line basis over the remaining life of the patent.
Atrion Corporation designs, develops, manufactures, sells and
distributes products and components primarily to medical markets
The 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 amortization of the cost of a
part of the Filtertek settlement over the remaining life of the
patent. Words such as "expects," "believes," "anticipates," "intends,"
and variations of such words and similar expressions are intended to
identify such forward-looking statements. These 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 SEC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Revenues $18,645 $16,789
Cost of goods sold 11,024 10,834
Gross profit 7,621 5,955
Operating expenses 4,203 4,054
Operating income 3,418 1,901
Interest expense, net (6) (16)
Other income, net 8 6
Income before income taxes 3,420 1,891
Income tax provision (1,126) (604)
Net income 2,294 1,287
Income per basic share $1.33 $.76
Weighted average basic shares outstanding 1,723 1,703
Income per diluted share $1.23 $.70
Weighted average diluted shares outstanding 1,865 1,843
CONSOLIDATED BALANCE SHEETS
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Cash and cash equivalents $1,083 $255
Accounts receivable 8,535 7,588
Inventories 15,094 14,013
Prepaid expenses 957 1,028
Land deposit 3,750 3,750
Deferred income taxes 1,039 1,039
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Total current assets 30,458 27,673
Property, plant and equipment, net 25,665 25,331
Other assets 14,986 14,404
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 8,439 8,467
Line of credit 4,127 2,936
Other non-current liabilities 5,570 5,402
Stockholders' equity 52,973 50,603
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CONTACT: Atrion Corporation, Allen
Jeffery Strickland, 972-390-9800