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Atrion Reports Third Quarter Results

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Atrion Corporation (NASDAQ: ATRI) reported third-quarter 2020 revenues of $33.8 million, a 13% decrease from $38.9 million in Q3 2019. Net income also fell to $7.2 million, down from $9.6 million, with diluted earnings per share at $3.95 compared to $5.15 the previous year. CEO David A. Battat noted a significant decline in surgical procedures due to COVID-19, which impacted results and is expected to continue in Q4. Despite these challenges, Atrion remains profitable and debt-free, holding $88.2 million in cash and investments.

Positive
  • Atrion remains profitable and debt-free as of September 30, 2020.
  • The company holds $88.2 million in cash and short/long-term investments.
Negative
  • Revenues decreased by 13% compared to Q3 2019.
  • Net income declined by 25% year-over-year.
  • Diluted EPS fell by 23% from the previous year.
  • Continued slowdown in surgeries expected to impact Q4 results.

ALLEN, Texas, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ: ATRI) today announced that for the third quarter ended September 30, 2020 revenues totaled $33.8 million compared with $38.9 million for the same period in 2019. Net income for the third quarter of 2020 totaled $7.2 million as compared to $9.6 million for the same period in 2019, with diluted earnings per share for the third quarter of 2020 at $3.95 compared to $5.15 for the third quarter of 2019.

Commenting on the Company’s quarterly results for the third quarter of 2020 compared to the same period last year, David A. Battat, President & CEO, stated, “Our results for the quarter were disappointing, with revenues down 13%, operating income down 27% and diluted EPS down 23%. In the second quarter of this year, our revenues began to weaken as our hospital and OEM customers reported a significant slowdown in surgeries due to the need for Covid-19 beds in hotspots, as well as continued patient reluctance to schedule surgeries. This trend accelerated in the third quarter, and we expect similar weakness in the fourth quarter of this year. Our customers are reporting that these declines in procedures are deferred rather than never to be performed, and, therefore, they expect to see a gradual recovery in 2021 as patients can no longer delay the need for care and hospitals adapt to expand their surgical capacity.”

Mr. Battat continued, “We never make excuses for subpar results, but we remain optimistic. Despite the negative comparisons, the Company remains profitable and debt-free, while holding cash and short and long investments totaling $88.2 million as of September 30, 2020.”

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 demand for our products in the fourth quarter of 2020 and an increase in procedures in 2021. 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 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
September 30,		 Nine Months Ended
September 30,
 2020 2019 2020 2019
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FAQ

What were Atrion's Q3 2020 revenues compared to Q3 2019?

Atrion's Q3 2020 revenues were $33.8 million, down 13% from $38.9 million in Q3 2019.

How much was Atrion's net income in Q3 2020?

Atrion's net income for Q3 2020 was $7.2 million, compared to $9.6 million in Q3 2019.

What is the diluted EPS for Atrion in Q3 2020?

The diluted earnings per share for Atrion in Q3 2020 was $3.95, down from $5.15 in Q3 2019.

How has COVID-19 impacted Atrion's business?

COVID-19 caused a significant decline in surgical procedures, impacting Atrion's revenues and earnings in Q3 2020.

What is Atrion's financial position as of September 30, 2020?

Atrion is profitable, debt-free, and holds $88.2 million in cash and investments as of September 30, 2020.

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