ALLEN, Texas (July 29, 2005) — Atrion Corporation (Nasdaq/NM - ATRI) today announced that for the second quarter of 2005 revenues were up 10% and diluted earnings per share were up 36% compared to the results of the second quarter of 2004.
Commenting on the Company's results, Emile A. Battat, Chairman and CEO, said, "We are very pleased with the strong increase in sales and especially that all our product areas, cardiovascular, fluid delivery, ophthalmology, and other products, contributed to this growth. The increase in sales, coupled with continued favorable mix toward higher-margin products, led to a 52% increase in operating income in the second quarter as compared to the same period last year." Mr. Battat added, "The Company continued a program initiated last year to purchase critical raw materials in larger volumes to take advantage of quantity discounts and to hedge against further price increases. In addition we began to increase our inventory of finished goods to reflect increasing sales and to assure uninterrupted deliveries to our customers when we relocate our Florida facility next year to a new plant in St. Petersburg, Florida. These actions were the primary reason for the increase in inventory of $2.4 million during the second quarter, and the $3.4 million increase since the beginning of the year."
Atrion's revenues for the quarter ended June 30, 2005 totaled $18,102,000 compared with $16,417,000 in the same period in 2004. On a diluted per share basis, earnings for the period increased to $1.18 as compared to $.87 in the same quarter of last year. Both periods included residual earnings of $.09 per share from operations that were discontinued in 1997. Operating income for the current-year period totaled $3,131,000 compared to $2,064,000 in last year's second quarter.
Revenues for the first six months of 2005 of $36,747,000 were 11% higher than revenues of $33,206,000 in the first half of 2004. Diluted earnings per share for the first half of 2005 were $2.41 versus $1.57 in the first six months of 2004. Both periods included $.09 per share from discontinued operations.
Atrion Corporation designs, develops, manufactures, sells and distributes products and components primarily to medical markets worldwide.
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 future deliveries to customers. 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.
Contact: Jeffery Strickland Vice President and Chief Financial Officer (972) 390-9800
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