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Atrion Reports Second Quarter 2023 Results

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Atrion Corporation reported second-quarter revenues of $43.8 million, a decrease of 10% compared to the same period in 2022. Operating income was $7.4 million, down $3.7 million, and net income was $6.6 million, down $2.8 million. Diluted earnings per share for Q2 2023 were $3.73. The company's CEO mentioned that the decline in results was due to reduced customer inventories. Atrion is implementing initiatives to improve performance, including facility expansion and resolving supply chain shortages. Cash and investments totaled $15.6 million at the end of June 2023.
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  • Atrion Corporation reported revenues of $43.8 million for Q2 2023, a decrease of 10% compared to the same period in 2022.
  • Operating income for the quarter was $7.4 million, down $3.7 million from the previous year.
  • Net income for Q2 2023 was $6.6 million, reflecting a decrease of $2.8 million compared to the same period in 2022.
  • Diluted earnings per share for the second quarter of 2023 were $3.73, down from $5.20 in Q2 2022.
  • Cash and short- and long-term investments totaled $15.6 million at the end of June 2023.
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  • None.

ALLEN, Texas, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ: ATRI) today announced its results for the second quarter ended June 30, 2023.

Revenues for the second quarter of 2023 totaled $43.8 million compared to $48.9 million for the same period in 2022. For the quarter ended June 30, 2023, operating income was $7.4 million, down $3.7 million from the comparable 2022 period, and net income was $6.6 million, down $2.8 million from the same period in 2022. Second quarter 2023 diluted earnings per share were $3.73 compared to $5.20 for the second quarter of 2022.

Commenting on the results for the second quarter of 2023 compared to the prior year period, David Battat, President and CEO, stated, “We continued to experience disappointing results with declines of 10% in revenues and 33% in operating income as customers continued to reduce their inventories.”

Mr. Battat added, “We are proactively undertaking a number of initiatives to improve our performance. With the recent completion of our facility expansion in Florida, we are installing and validating equipment that will allow us to fill backorders more efficiently and reduce lead times. Production of certain critical fluid delivery and cardiovascular products, including MPS 3 consoles, remains impacted by supply chain shortages. New suppliers have been brought online to resolve remaining shortages more quickly. Cash and short- and long-term investments totaled $15.6 million at June 30, 2023. The Company purchased 1,834 shares of its stock at an average price of $565.59 during the second quarter of 2023.”

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 impact of new equipment on filling backorders and reducing lead times. 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 COVID-19 leads to further 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 COVID-19; the impact of global and regional economic and credit market conditions on healthcare spending; the risk that COVID-19 further disrupts local economies and causes 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:
Cindy Ferguson
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,
  2023   2022   2023   2022 
Revenues$43,838  $48,882  $83,831  $96,020 
Cost of goods sold 26,584   28,049   51,496   55,943 
Gross profit 17,254   20,833   32,335   40,077 
Operating expenses 9,875   9,804   20,486   18,798 
Operating income 7,379   11,029   11,849   21,279 
        
Interest and dividend income 127   292   367   429 
Other investment income (loss) 98   (308)  (623)  (548)
Other income 29   60   39   85 
Interest expense (27)  --   (27)  -- 
Income before income taxes 7,606   11,073   11,605   21,245 
Income tax provision (1,043)  (1,725)  (1,557)  (3,398)
Net income$6,563  $9,348  $10,048  $17,847 
        
Income per basic share$3.73  $5.21  $5.71  $9.94 
        
Weighted average basic shares outstanding 1,760   1,794   1,761   1,796 
        
        
Income per diluted share$3.73  $5.20  $5.70  $9.91 
        
Weighted average diluted shares outstanding 1,761   1,798   1,762   1,800 

        

ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
 June 30, Dec 31,
ASSETS 2023  2022
 (Unaudited)  
Current assets:   
Cash and cash equivalents$309 $4,731
Short-term investments 5,132  21,152
Total cash and short-term investments 5,441  25,883
Accounts receivable 23,693  23,951
Inventories 80,252  65,793
Prepaid expenses and other 6,623  3,770
Total current assets 116,009  119,397
      
Long-term investments 10,186  8,669
      
Property, plant and equipment, net 127,707  123,754
Other assets 12,923  12,892
    
 $266,825 $264,712
    
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
    
Current liabilities 16,428  18,098
Line of credit 3,835  --
Other non-current liabilities 5,646  7,073
Stockholders’ equity 240,916  239,541
    
 $266,825 $264,712


FAQ

What were Atrion Corporation's revenues for the second quarter of 2023?

Atrion Corporation reported revenues of $43.8 million for the second quarter of 2023.

How did Atrion Corporation's operating income perform in Q2 2023?

Atrion Corporation's operating income for the second quarter of 2023 was $7.4 million.

What was Atrion Corporation's net income for the second quarter of 2023?

Atrion Corporation's net income for the second quarter of 2023 was $6.6 million.

What were Atrion Corporation's diluted earnings per share for Q2 2023?

Atrion Corporation reported diluted earnings per share of $3.73 for the second quarter of 2023.

What was the total cash and investments for Atrion Corporation at the end of June 2023?

Atrion Corporation had a total of $15.6 million in cash and investments at the end of June 2023.

What is Atrion Corporation's main focus?

Atrion Corporation develops and manufactures products primarily for medical applications.

What is the website of Atrion Corporation?

The website of Atrion Corporation is www.atrioncorp.com.

Atrion Corp

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Medical Instruments & Supplies
Surgical & Medical Instruments & Apparatus
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United States of America
ALLEN