May 01, 2002 |
ATRION REPORTS FIRST QUARTER RESULTS
EPS increases by 26% before charge for goodwill impairment
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ALLEN, Texas (May 1, 2002) — Atrion Corporation (Nasdaq/NM - ATRI) today announced that for the first quarter of 2002 diluted earnings per share were up 26%, excluding a charge resulting from a change in accounting principle, compared to the results of the first quarter of 2001. There were no earnings from discontinued operations in either period.
As previously announced, effective January 1, 2002 the Company adopted Statement of Financial Accounting Standards (“SFAS”) No. 142. Under this new accounting standard, goodwill and indefinite-lived intangible assets are no longer amortized but are reviewed annually for impairment. The required adoption of SFAS No. 142 is considered a change in accounting principle and the cumulative effect of adopting this standard resulted in a $1,641,000 non-cash, after-tax charge in the first quarter of 2002. The charge reflected a reduction in goodwill related to the acquisition of Quest Medical in February 1998. This charge, which totaled $.86 per diluted share, does not affect the Company’s current or future operating results. The adoption of the new standard reduces the Company’s quarterly goodwill amortization expense by $151,000 or $106,000 after-tax from the quarterly level in 2001.
Commenting on the Company's results, Emile A. Battat, Chairman, said “We are pleased with the first quarter's results, particularly in view of the soft economic environment. Overall our revenues increased 18% over the level of the fourth quarter of 2001 and were slightly above those of last year's first quarter. Especially affected by the continuing softness in the economy were sales of some of our products that are used as components in finished goods sold directly to individual consumers. This decline was balanced by growth in sales of several products that are purchased by health care professionals and institutions. We continue to strongly believe that we are on track to increase this year's diluted earnings per share from continuing operations by more than 15% over 2001 results.”
Atrion’s revenues for the quarter ended March 31, 2002 were $14,825,000 compared with $14,803,000 in the same period in 2001. Excluding the impact of the charge described above, on a diluted per share basis earnings for the period increased to $.53 as compared to $.42 in the same quarter of last year. Including the charge, the Company had a net loss of $634,000, or $.33 per diluted share, for the first quarter of 2002. Operating income for the quarter totaled $1,554,000 before interest and taxes, 10% higher than the 2001 first quarter amount of $1,413,000. A meaningful indicator of overall performance for the first quarter is the improvement in cash flow per share measured by earnings before the goodwill impairment charge plus depreciation and amortization. This measure is not affected by the change in goodwill amortization required by the accounting principle adopted in the first quarter. Cash flow per diluted share increased by 12% to $1.10 in the first quarter compared to $.98 in the first quarter of 2001.
Atrion Corporation designs, develops, manufactures, sells and distributes products and components primarily to medical markets worldwide.
Contact:
Jeffery Strickland
Vice President and Chief Financial Officer
(972) 390-9800
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