Atrion Reports First Quarter Results
Diluted EPS Increased by 15%
ALLEN, TX -- 05/08/2008 -- Atrion Corporation (NASDAQ: ATRI) today announced
that for the first quarter of 2008 diluted earnings per share were 15%
higher than in the first quarter of 2007, and revenues for the quarter were
up 7% compared to the first quarter of 2007.
Commenting on the Company's results, Emile A. Battat, Chairman & CEO, said:
"We are very pleased with our achievements in the quarter. The increase in
revenues compared with the first quarter of 2007 was driven by growth in
our cardiovascular and fluid delivery products, tempered by a decline in
sales to the ophthalmic market. The diversity of our customers and the
markets we serve generally allows us to overcome quarterly fluctuations in
any one of our markets." Mr. Battat added that, "To support our long-term
growth strategy, we have expanded our R&D capabilities. As a result,
expenditures in this area were 20% higher during the quarter than in the
first quarter of 2007. Despite this increase, our diluted earnings per
share were up 15%."
Mr. Battat further stated, "Going forward, the weak domestic economy
presents a challenging environment. The tight credit market is increasing
borrowing costs for many hospitals at a time when these institutions are
also facing lower Medicare reimbursements and higher costs for the
treatment of an increasing number of uninsured patients. The convergence of
these factors may force hospitals to defer some of their purchases of
capital equipment, and could increase pricing pressures on hospital
suppliers. Despite these challenges, we believe that we are on target in
2008 to again achieve double digit growth in diluted earnings per share,
excluding the special items described in last year's third quarter press
release dated November 7, 2007."
Atrion's revenues for the quarter ended March 31, 2008 were $24,602,000
compared with $23,037,000 in the same period in 2007. Net income in the
current quarter totaled $3,656,000 compared to $3,136,000 in last year's
first quarter. On a diluted per share basis, earnings for the period
increased to $1.83 as compared to $1.59 in the same quarter of last year.
Atrion Corporation designs, develops, manufactures, sells and distributes
products and components primarily to medical markets worldwide. The
Company's website is www.atrioncorp.com.
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 effects of various conditions on hospitals'
purchases of capital equipment, possible increases in pricing pressures on
hospital suppliers and growth in diluted earnings per share, excluding
special items. Words such as "expects," "believes," "anticipates,"
"intends," "hopeful" 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 Securities and Exchange Commission.
ATRION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2008 2007
----------- -----------
Revenues $ 24,602 $ 23,037
Cost of goods sold 13,922 13,377
----------- -----------
Gross profit 10,680 9,660
Operating expenses 5,226 4,923
----------- -----------
Operating income 5,454 4,737
Interest income (expense), net 36 (132)
----------- -----------
Income before income taxes 5,490 4,605
Income tax provision (1,834) (1,469)
----------- -----------
Net income 3,656 3,136
=========== ===========
Income per basic share $ 1.89 $ 1.68
=========== ===========
Weighted average basic shares outstanding 1,937 1,872
=========== ===========
Income per diluted share $ 1.83 $ 1.59
=========== ===========
Weighted average diluted shares outstanding 2,003 1,975
=========== ===========
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
Mar. 31, Dec. 31,
ASSETS 2008 2007
------------ ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 5,270 $ 3,531
Accounts receivable 12,270 9,601
Inventories 17,977 17,387
Prepaid expenses and other 771 1,483
Deferred income taxes 607 607
------------ ------------
Total current assets 36,895 32,609
Property, plant and equipment, net 54,952 54,050
Other assets 12,618 12,654
------------ ------------
$ 104,465 $ 99,313
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 7,609 6,864
Line of credit -- --
Other non-current liabilities 7,017 7,007
Stockholders' equity 89,839 85,442
------------ ------------
$ 104,465 $ 99,313
============ ============