Atrion Reports Fourth Quarter and Full Year 2016 Results
ALLEN, Texas, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ:ATRI) announced today that for the fourth quarter of 2016 revenues were $33.3 million compared to $32.4 million in the same period of 2015, while net income decreased to $5.6 million from $6.1 million, and diluted earnings per share were down to $3.00 from $3.27 in the prior-year period. For the full year 2016, Atrion's revenues decreased to $143.5 million from $145.7 million in 2015, net income was down to $27.6 million from $28.9 million and diluted earnings per share decreased to $14.85 from $15.47 in 2015.
David Battat, CEO, commenting on the results for the fourth quarter and the full year 2016 as compared to the prior year periods said, "Revenues in our fourth quarter were higher by 3%, while operating income was down 9%. For the full year, revenues were down 2% with operating income lower by 8%." Mr. Battat added, "We are never pleased when year-over-year comparisons are lower. In prior statements, we cautioned about the impact of a strong dollar and the lapse of certain ophthalmic patents. To manage these forces, we focused on growing revenues in our primary activities in Fluid Delivery and Cardiovascular. These efforts resulted in positive revenue comparisons in both the third and fourth quarters."
Mr. Battat stated, "We have recently been advised that certain ophthalmic customers are experiencing quality problems unrelated to the products we supply them. Shipments to these customers will likely remain on hold until such time as these issues are resolved. We expect deferred shipments to be made up in subsequent periods."
Mr. Battat continued, "For the third consecutive quarter in 2016, we did not engage in share buybacks. Our cash and long and short term investments increased by $5.4 million in the quarter and $15.8 million during the year to a total of $54.0 million at year end."
Mr. Battat concluded, "Economic forecasts for 2017 suggest higher domestic growth and tighter monetary policy, potentially leading to higher inflation and an even stronger dollar. Because all of our manufacturing facilities are based in the U.S., we could experience higher operating costs while netting lower prices on the one-third of our sales destined to foreign markets. To counter these headwinds, we are continuing to focus on sales growth and investments in manufacturing that add capacity and increase efficiency. Although we may see uneven quarterly comparisons to 2016 periods, we are confident that we will end this year with a strong after-tax return on equity."
Atrion Corporation develops and manufactures products primarily for medical applications. The Company's website is www.atrioncorp.com.
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 Company's shipments to ophthalmic customers, operating costs in 2017, prices on sales to foreign markets and after-tax return on equity. Words such as "expects," "believes," "anticipates," "intends," "should", "plans," "will" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking 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
Twelve Months Ended
December 31,
December 31,
2016
2015
2016
2015
Revenues
$
33,294
$
32,372
$
143,487
$
145,733
Cost of goods sold
18,067
17,084
75,857
74,752
Gross profit
15,227
15,288
67,630
70,981
Operating expenses
7,616
6,958
28,504
28,471
Operating income
7,611
8,330
39,126
42,510
Interest income
134
135
448
771
Other income (expense)
--
(2,411
)
(308
)
(2,411
)
Income before income taxes
7,745
6,054
39,266
40,870
Income tax provision
(2,174
)
(4
)
(11,685
)
(11,945
)
Net income
$
5,571
$
6,050
$
27,581
$
28,925
Income per basic share
$
3.05
$
3.32
$
15.12
$
15.67
Weighted average basic shares
outstanding
1,825
1,824
1,824
1,846
$
3.00
$
3.27
$
14.85
$
15.47
Income per diluted share
Weighted average diluted shares
outstanding
1,859
1,849
1,857
1,870
ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31,
Dec. 31,
ASSETS
2016
2015
(Unaudited)
(Unaudited)
Current assets:
Cash and cash equivalents
$
20,022
$
28,346
Short-term investments
24,080
44
Total cash and short-term investments
44,102
28,390
Accounts receivable
17,166
16,620
Inventories
29,015
29,771
Prepaid expenses and other
3,181
2,934
Deferred income taxes
651
580
Total current assets
94,115
78,295
Long-term investments
9,945
9,866
Property, plant and equipment, net
65,265
63,314
Other assets
13,268
12,861
$
182,593
$
164,336
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
9,073
9,316
Line of credit
--
--
Other non-current liabilities
10,532
10,922
Stockholders' equity
162,988
144,098
$
182,593
$
164,336
Contact:
Jeffery Strickland
Vice President and Chief Financial Officer
(972) 390-9800