Full Press Release Details
Atrion Reports Second Quarter Results; Diluted EPS Increases by 30%
ALLEN, Texas--(BUSINESS WIRE)--Aug. 7, 2006--Atrion Corporation
(Nasdaq:ATRI) today announced that for the second quarter of 2006
revenues were up 15% and diluted earnings per share were up 30%
compared to the results for the second quarter of 2005.
Commenting on the Company's results, Emile A. Battat, Chairman and
CEO, said "We are extremely pleased with the substantial growth in
revenues and earnings in the second quarter. Demand was very strong
for our fluid delivery and cardiovascular product groups, and we also
experienced a resumption of shipments to one of our large ophthalmic
customers whose requirements were impacted by its internal issues. For
the quarter, our operating income represented 20% of our revenues, a
record high for our company. While this percentage has been rising in
each of the last four full calendar years, it stood at 10% as recently
as calendar year 2002," Mr. Battat added. "The construction of our new
plant in Florida is slightly behind schedule, but the new facility is
close to completion. In fact partial occupancy has been approved, and
in late June we began the process of moving equipment. We expect to
complete our staged move by the end of the third quarter. During that
quarter we will incur higher expenses as we absorb costs associated
with the physical move as well as the inefficiencies of conducting
simultaneous partial operations at both the new and the old plants.
While we remain cautious about the results for the full year 2006, we
still believe that we are on track to meet the double-digit growth in
earnings that we targeted at the beginning of the year."
Atrion's revenues for the quarter ended June 30, 2006 totaled
$20,849,000 compared with $18,102,000 in the same period in 2005. On a
diluted per share basis, earnings for the period increased to $1.53 as
compared to $1.18 in the same quarter of last year. Both periods
included residual earnings of $.08 and $.09 per share, respectively
from operations that were discontinued in 1997. Operating income for
the current-year period totaled $4,125,000 compared to $3,131,000 in
last year's second quarter.
Revenues for the first six months of 2006 of $40,351,000 were 10%
higher than revenues of $36,747,000 in the first half of 2005. Diluted
earnings per share for the first half of 2006 were $2.61 versus $2.41
in the first six months of 2005. Both periods included $.08 and $.09
per share, respectively, from discontinued operations.
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 completion of its move to its new
facility in Florida and growth in earnings in 2006. 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)
Three Months Ended Six Months Ended
------------------ -----------------
--------- -------- -------- --------
Revenues $20,849 $18,102 $40,351 $36,747
Cost of goods sold 12,076 10,896 24,230 21,920
--------- -------- -------- --------
Gross profit 8,773 7,206 16,121 14,827
Operating expenses 4,648 4,075 8,943 8,278
--------- -------- -------- --------
Operating income 4,125 3,131 7,178 6,549
Interest income/(expense), net 11 (12) 20 (17)
Other income/(expense), net (21) -- (21) 8
--------- -------- -------- --------
Income from continuing operations
before provision for income taxes 4,115 3,119 7,177 6,540
Income tax provision (1,295) (1,012) (2,251) (2,138)
--------- -------- -------- --------
Income from continuing operations 2,820 2,107 4,926 4,402
Gain on disposal of discontinued
operations 165 165 165 165
--------- -------- -------- --------
Net income $2,985 $2,272 $5,091 $4,567
========= ======== ======== ========
Income per basic share:
Income from continuing operations $1.53 $1.18 $2.68 $2.51
Gain on disposal of discontinued
operations .09 .09 .09 .09
--------- -------- -------- --------
Net income per basic share $1.62 $1.27 $2.77 $2.60
========= ======== ======== ========
Weighted average basic shares
outstanding 1,845 1,789 1,840 1,756
========= ======== ======== ========
Income per diluted share:
Income from continuing operations $1.45 $1.09 $2.53 $2.32
Gain on disposal of discontinued
operations .08 .09 .08 .09
--------- -------- -------- --------