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NEWS RELEASE
Atrion Corporation
1426 Curt Francis Road
P.O. Box 587
Arab, AL 35016
FOR IMMEDIATE RELEASE
Contact: Jeffery Strickland
Vice President and Chief Financial Officer
(205) 586-1580
ATRION CORPORATION REPORTS ARAB, Alabama (October 28, 1997)-ATRION
Corporation (Nasdaq/NM - ATRI) today announced significantly higher income from continuing operations for the third quarter and first nine months of 1997.
For the third quarter, income from continuing operations increased 48% to $658,000 or $.20 per share versus $443,000 or $.14 per share in the year-earlier quarter. For the nine-month period, income from continuing operations advanced 89% to $1,413,000 or $.44 per share versus $748,000 or $.24 per share in the first nine months of 1996.
In May 1997, Atrion completed the sale of its natural gas pipeline and marketing subsidiaries. Accordingly, the revenues and expenses of those operations have been aggregated and reported as discontinued operations for all periods presented. Net income, including discontinued operations, totaled $638,000 or $.20 per share for the third quarter of 1997 versus $1,759,000 or $.55 per share in the same period last year. Net income for the year-to-date period, including both discontinued operations and the second quarter 1997 gain on the sale of those operations, totaled $20,336,000 or $6.32 per share compared with $5,306,000 or $1.67 per share in the first nine months of 1996.
Revenues for the quarter totaled $7,292,000 and were essentially unchanged from revenues of $7,362,000 in the third quarter of 1996. Revenues for the first nine months of 1997 increased 49% to $23,375,000 compared with $15,692,000 in the same period last year. The Company's revenues and income from continuing operations for the first nine months of 1997 reflected the operations of Atrion's Halkey-Roberts unit for the entire 1997 period. Acquired on May 21, 1996 and accounted for as a purchase transaction, Halkey-Roberts' operations prior to the acquisition date were not included in the Company's results for the first nine months of 1996. The acquisition had no effect on comparisons for the third quarter reporting period.
"During the third quarter, we increased sales of certain higher-margin medical products from our Arab, Alabama operations and certain lower-margin products at our Halkey-Roberts unit," commented Jerry A. Howard, Chairman, President and Chief Executive Officer. "However, the positive impact of these increases on gross profits was more than offset by decreased sales to two of the Company's larger customers. As previously reported, these decreases had been anticipated by the Company since early 1997." Mr. Howard also pointed out that interest income in the third quarter on the proceeds of the Company's May 1997 sale of its natural gas operations more than offset the Company's overall reduction in gross profit for the third quarter.
Howard added that the Company continues to explore expansion opportunities that can be funded in whole or in part by its substantial cash resources. The Company intends to use these resources primarily to finance acquisitions in the medical products industry.
As of September 30, 1997, Atrion reported total assets of $66,587,000, including $32,836,000 in cash and cash equivalents. Stockholders' equity stood at $53,446,000 at quarter's end, representing a book value of $16.49 per share.
ATRION Corporation designs, develops, manufactures, sells and distributes medical products and components to markets worldwide. ATRION CORPORATION
ATRION CORPORATION
HIGHER THIRD QUARTER EARNINGS FROM CONTINUING OPERATIONS
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
September 30,Six Months
Ended
September 30,
1997
1996
1997
1996
Revenues
$7,292
$7,362
$23,375
$15,692
Cost of goods sold
4,802
4,474
14,978
8,965
Gross Profit
2,490
2,888
8,397
6,727
Operating Expenses
2,058
2,105
6,797
5,625
Operating Income
432
783
1,600
1,102
Interest Income (expense), net
493
(120)
396
(110)
Other Income, net
52
49
218
206
Income from continuing
operations before income taxes
977
712
2,214
1,198
Provision for income taxes
319
269
801
450
Income from continuing operations
658
443
1,413
748
Discontinued operations:
Income (loss) from discontinued operations
(20)
1,316
1,921
4,558
Gain on disposal of
discontinued operations
0
0
17,002
0
Net income
$ 638
$ 1,759
$ 20,336
$ 5,306
Earnings per share:
Continuing operations
$0.20
$0.14
$0.44
$0.24
Discontinued operations
0.00
0.41
0.60
1.43
Gain on disposal of
discontinued operations
0.00
0.00
5.28
0.00
Net income per share
$0.20
$0.55
$6.32
$1.67
Weighted average shares outstanding
3,230,387
3,192,276
3,217,537
3,184,127
Note: Shares outstanding and per share amounts for the 1996 periods are adjusted to reflect a three-for-two stock split paid in December 1996.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, 1997
Dec. 31, 1996
ASSETS
Current assets:
Cash and temporary investments
$ 32,836
$ 144
Accounts Receivable
3,522
3,658
Inventories
3,999
3,712
Other current assets
499
486
Total current assets
40,856
8,000
Property, plant and equipment, net
12,743
12,680
Other assets
13,009
12,059
Net assets of discontinued operations
(21)
12,694
$ 66,587
$ 45,433
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities
$ 5,211
$2,944
Current maturities of long-term debt
703
703
Total current liabilities
5,914
3,647
Long term debt
203
6,313
Other non-current liabilities
7,024
1,055
Stockholders' equity
53,446
34,418
$ 66,587
$ 45,433