Oct 28, 2002 |
ATRION REPORTS THIRD QUARTER RESULTS
Diluted EPS from Continuing Operations Increases by 16%
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ALLEN, Texas (October 28, 2002) — Atrion Corporation (Nasdaq/NM - ATRI) today announced that for the third quarter of 2002 diluted earnings per share from continuing operations were up 16% compared to the results for the third quarter of 2001. Revenues in the third quarter declined by 5% from the same prior year period.
Commenting on the Company's results, Emile A. Battat, Chairman and CEO, said “For the second consecutive quarter, sales of our contact lens disinfection cases were significantly lower than those in the same period last year. We should note, however, that our shipments of contact lens cases reached peak levels in the second and third quarters of last year as our customers increased their orders to build up inventories and launch their marketing programs. This drop in sales was partly offset by increases in the sales of medical products, components, and services that are used by physicians and hospitals. Still, the net impact was a disappointing reduction in our overall revenues for the quarter by 5% compared to the same period last year. We believe that our lens case customers’ inventories and order levels are now in balance with their marketing plans and retail demand. Going forward, we anticipate favorable quarterly revenue comparisons from lens case products starting with this year’s fourth quarter. We are gratified that continuing cost control, higher credits from tax incentives for exports and R&D expenditures, elimination of goodwill amortization, and the smaller number of outstanding shares, have combined to give us a 16% increase in diluted earnings per share from continuing operations for the quarter compared to the prior year period. For the year 2002, we are hopeful that we will achieve our growth target of a 15% increase in our diluted earnings per share from continuing operations, excluding one-time items.”
Atrion’s revenues for the quarter ended September 30, 2002 were $14,662,000 compared with $15,418,000 in the same period in 2001. On a diluted per share basis, earnings from continuing operations for the period increased to $.59 as compared to $.51 in the same quarter of last year. Net income for the third quarter of 2002 was $.59 versus $2.84 per diluted share in 2001, which included a $2.33 non-cash gain from discontinued operations. Reductions in income tax expense attributable to higher benefits from tax incentives for exports and to R&D expenditures and the utilization of capital loss carryovers helped reduce Atrion’s effective income tax rate to 14% for the third quarter of 2002. For the quarter, Atrion showed a 16% improvement in cash flow per diluted share measured by earnings from continuing operations plus depreciation and amortization. Cash flow for the current year quarter equaled $1.18 per diluted share compared with $1.02 per diluted share in the third quarter of 2001.
Revenues for the first nine months of 2002 decreased 2% to $44,262,000 from $44,998,000 in the same period in 2001. Income from continuing operations for the current year period was $1.61 per diluted share versus $1.50 per diluted share in the same period last year. Excluding a one-time gain in the second quarter of 2001 of $.12 per diluted share from a patent sale, the year-to date per diluted share amount of $1.61 in 2002 was 17% higher than the per diluted share amount for the comparable prior year period. Including gains in both periods from discontinued operations and an $.87 per diluted share charge for goodwill impairment in the first quarter of 2002, net income for the first nine months of 2002 totaled $0.83 per diluted share versus $3.96 per diluted share in the same period last year.
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 may differ materially. Such statements include, but are not limited to, Atrion’s expectations regarding future lens case revenues and earnings per share for the year 2002. 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 that could cause actual results to differ materially, including, but not limited to, the effects of changing economic, business and technological conditions, market acceptance of the Company’s products, the effects of governmental regulation, changes in research and development requirements, the impact of competition and other factors 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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