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Atrion Reports Second Quarter 2022 Results
Source: Nasdaq GlobeNewswire / 08 Aug 2022 15:00:00 America/Chicago
ALLEN, Texas, Aug. 08, 2022 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ: ATRI) today announced its results for the second quarter ended June 30, 2022.
Revenues for the second quarter of 2022 totaled $48.9 million compared to $42.7 million for the same period in 2021. For the quarter ended June 30, 2022, operating income was $11.0 million, up $1.2 million over the comparable 2021 period, and net income was $9.3 million, up $424 thousand over the same period in 2021. Second quarter 2022 diluted earnings per share were $5.20 compared to $4.88 for the second quarter of 2021.
Commenting on the results for the second quarter of 2022 compared to the prior year period, David Battat, President and CEO, stated, “We had outstanding results in the just-ended quarter, with revenues up 14% and operating income up 13%, despite incurring $1.6 million in higher sales and administrative expenses. These results are particularly strong given that we continued to encounter labor and supply chain shortages, as well as localized outbreaks of COVID-19 during the quarter.” Mr. Battat continued, “Notwithstanding additional increased costs for labor, raw materials, and electricity, our gross margin improved from 42% to 43%, reflecting increases in sales of higher margin products as well as our continued focus on investing in equipment that increases quality and efficiency.”
Mr. Battat stated, “We expect double-digit growth in revenues and a 20% increase in operating income in the second half of 2022.” Mr. Battat concluded, “Cash and short and long term investments totaled $66.4 million after our purchase of 9,526 shares of the Company’s stock during the second quarter at an average price of $618.65. We remain debt free.”
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, the Company’s expectations regarding growth in revenues and an increase in operating income in the second half of 2022. Words such as "expects," "believes," "anticipates," "forecasts," "intends," "should", "plans," "will" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements contained herein involve numerous risks and uncertainties, and there are a number of factors that could cause actual results or future events to differ materially, including, but not limited to, the following: the risk that the COVID-19 pandemic continues to lead to material delays and cancellations of, or reduced demand for, procedures in which our products are utilized; curtailed or delayed capital spending by hospitals and other healthcare providers; disruption to our supply chain; closures of our facilities; delays in training; delays in gathering clinical evidence; diversion of management and other resources to respond to the COVID-19 outbreak; the impact of global and regional economic and credit market conditions on healthcare spending; the risk that the COVID-19 virus continues to disrupt local economies and to cause economies in our key markets to enter prolonged recessions; changing economic, market and business conditions; acts of war or terrorism; the effects of governmental regulation; the impact of competition and new technologies; slower-than-anticipated introduction of new products or implementation of marketing strategies; implementation of new manufacturing processes or implementation of new information systems; our ability to protect our intellectual property; changes in the prices of raw materials; changes in product mix; intellectual property and product liability claims and product recalls; the ability to attract and retain qualified personnel; and the loss of, or any material reduction in sales to, any significant customers. In addition, assumptions relating to budgeting, marketing, product development and other management decisions are subjective in many respects and thus susceptible to interpretations and periodic review which may cause us to alter our marketing, capital expenditures or other budgets, which in turn may affect our results of operations and financial condition. 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. The forward-looking statements in this press release are made as of the date hereof, and we do not undertake any obligation, and disclaim any duty, to supplement, update or revise such statements, whether as a result of subsequent events, changed expectations or otherwise, except as required by applicable law.
Contact: Jeffery Strickland Vice President and Chief Financial Officer (972) 390-9800 ATRION CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)Three Months Ended
June 30,Six Months Ended
June 30,2022 2021 2022 2021 Revenues $ 48,882 $ 42,693 $ 96,020 $ 81,862 Cost of goods sold 28,049 24,826 55,943 47,656 Gross profit 20,833 17,867 40,077 34,206 Operating expenses 9,804 8,072 18,798 15,480 Operating income 11,029 9,795 21,279 18,726 Interest and dividend income 292 183 429 399 Other investment income (loss) (308 ) 963 (548 ) 1,025 Other income 60 -- 85 66 Income before income taxes 11,073 10,941 21,245 20,216 Income tax provision (1,725 ) (2,016 ) (3,398 ) (3,565 ) Net income $ 9,348 $ 8,925 $ 17,847 $ 16,651 Income per basic share $ 5.21 $ 4.89 $ 9.94 $ 9.12 Weighted average basic shares outstanding 1,794 1,826 1,796 1,826 Income per diluted share $ 5.20 $ 4.88 $ 9.91 $ 9.10 Weighted average diluted shares outstanding 1,798 1,828 1,800 1,830 ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)June 30, Dec. 31, ASSETS 2022 2021 (Unaudited) Current assets: Cash and cash equivalents $ 16,437 $ 32,264 Short-term investments 34,146 29,059 Total cash and short-term investments 50,583 61,323 Accounts receivable 27,539 21,023 Inventories 54,281 50,778 Prepaid expenses and other 5,171 3,447 Total current assets 137,574 136,571
Long-term investments15,794 19,423 Property, plant and equipment, net 108,806 97,972 Other assets 13,143 13,298 $ 275,317 $ 267,264 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities 19,273 13,346 Line of credit -- -- Other non-current liabilities 9,589 9,622 Stockholders’ equity 246,455 244,296 $ 275,317 $ 267,264