Atrion Reports Second Quarter 2022 Results

Rhea-AI Summary

Atrion Corporation (NASDAQ: ATRI) reported second-quarter 2022 revenues of $48.9 million, a 14% increase from $42.7 million in Q2 2021. Operating income rose to $11.0 million, up $1.2 million, with net income at $9.3 million, up $424 thousand. Diluted earnings per share increased to $5.20 compared to $4.88 in the same period last year. Despite higher sales and administrative expenses of $1.6 million, gross margin improved from 42% to 43%. The company expects double-digit revenue growth and a 20% rise in operating income for the second half of 2022.

Positive

• Revenues increased by 14% to $48.9 million.
• Operating income rose to $11.0 million, a $1.2 million increase.
• Net income grew to $9.3 million, an increase of $424 thousand.
• Diluted earnings per share improved to $5.20 from $4.88.
• Gross margin increased from 42% to 43%.
• Expectations for double-digit revenue growth in H2 2022.
• Projected 20% increase in operating income for H2 2022.
• Cash and investments totaled $66.4 million, remaining debt-free.

Negative

• Incurring $1.6 million in higher sales and administrative expenses.
• Continued challenges from labor and supply chain shortages.
• Increased costs for labor, raw materials, and electricity.

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 investments		15,794			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

 

FAQ

What were Atrion's second quarter 2022 revenues?

Atrion reported revenues of $48.9 million for Q2 2022.

How much did Atrion's operating income increase in Q2 2022?

Operating income increased by $1.2 million to $11.0 million.

What is Atrion's outlook for the second half of 2022?

Atrion expects double-digit revenue growth and a 20% increase in operating income.

What was the diluted earnings per share for Atrion in Q2 2022?

The diluted earnings per share were $5.20.

How did Atrion's gross margin change in Q2 2022?

The gross margin improved from 42% to 43%.