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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 (August 6, 1997)-ATRION
Corporation (Nasdaq/NM - ATRI) today announced higher
sales and earnings from continuing operations for the second quarter and first half of 1997. Net sales from continuing operations for the quarter increased 56% to $8,138,000 compared with $5,204,000 in the second quarter of 1996. Income from continuing operations totaled $515,000 or $.16 per share, representing an increase of 75% versus $294,000 or $.09 per share in the year-earlier quarter. Net sales from continuing operations for the first half of 1997 increased 94% to $16,083,000 compared with $8,277,000 in the same period last year. Income from continuing operations advanced 147% to $756,000 or $.24 per share versus $305,000 or $.10 per share in the first half of 1996. The Company’s improved results reflected primarily the inclusion of Atrion’s Halkey-Roberts operations for the entire 1997 periods; acquired on May 21, 1996, Halkey-Roberts’ results were included for only 40 days in the comparative 1996 periods. Improved results from the Company’s LacriCATHTM product line also contributed to Atrion’s higher sales and earnings for the second quarter and first half of 1997. During the second quarter of 1997, Atrion completed the previously announced 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. Atrion also recorded a gain of $17,002,000 or $5.30 per share in the second quarter from the sale of these operations. Net income for the second quarter of 1997, including discontinued operations, totaled $18,067,000 or $5.63 per share versus $1,447,000 or $.45 per share last year. Net income for the first half of 1997 was $19,699,000 or $6.13 per share compared with $3,546,000 or $1.12 per share in the same 1996 period. "We are pleased with the ongoing growth of our medical products business, particularly the improvements we have seen in our LacriCATH line," commented Jerry A. Howard, Chairman, President and Chief Executive Officer. "LacriCATH sales continued to increase during the quarter, reflecting both increasing acceptance of our less invasive surgical procedure and the recent introduction of our STENTubeTM product. "We also are pleased with the progress we have achieved in integrating Halkey-Roberts as a strategic part of our medical products business," Howard continued. "Halkey-Roberts has enabled us to expand our product offering in several key markets." Howard noted that with the completion of the sale of its natural gas pipeline and marketing subsidiaries, the Company continues to pursue acquisition opportunities in the medical products field. As of June 30, 1997, Atrion reported total assets of $67,578,000, including $32,980,000 in cash and temporary investments. Stockholders’ equity stood at $52,717,000 at quarter’s end, representing a book value of $16.45 per share. Separately, the Company announced that its Board of Directors has declared a dividend of $.10 per share, payable on September 1, 1997, to stockholders of record as of August 22, 1997. ATRION Corporation designs, develops, manufactures, sells and distributes medical products and components to markets worldwide. ATRION CORPORATION
ATRION CORPORATION
HIGHER SECOND QUARTER REVENUES AND EARNINGS FROM CONTINUING OPERATIONS
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
June 30,Six Months
Ended
June 30,
1997
1996
1997
1996
Net Sales
$8,138
$5,204
$16,083
$8,277
Cost of goods sold
5,073
2,889
10,176
4,439
Gross Profit
3,065
2,315
5,907
3,838
Operating Expenses
2,388
1,943
4,739
3,521
Operating Income
677
372
1,168
317
Interest Income (expense), net
35
(35)
(93)
11
Other Income, net
130
129
163
158
Income from continuing
operations before income taxes
842
466
1,238
486
Provision for income taxes
327
172
482
181
Income from continuing operations
515
294
756
305
Discontinued operations:
Income from discontinued operations
550
1,153
1,941
3,241
Gain on disposal of
discontinued operations
17,002
---
17,002
---
Net income
$ 18,067
$ 1,447
$ 19,699
$ 3,546
Earnings per share:
Continuing operations
$.16
$.09
$.24
$.10
Discontinued operations
.17
.36
.60
1.02
Gain on disposal of
discontinued operations
5.30
---
5.29
---
Net income per share
$5.63
$.45
$6.13
$1.12
Weighted average shares outstanding
3,207
3,180
3,211
3,180
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)
June 30,1997
Dec. 31, 1996
ASSETS
Current assets:
Cash and temporary investments
$ 32,980
$ 144
Accounts Receivable
4,155
3,658
Inventories
3,966
3,712
Other current assets
568
486
Total current assets
41,669
8,000
Property, plant and equipment, net
12,724
12,680
Other assets
13,216
12,059
Net assets of discontinued operations
(31)
12,694
$ 67,578
$ 45,433
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities
$ 6,709
$2,944
Current maturities of long-term debt
953
703
Total current liabilities
7,662
3,647
Long term debt
304
6,313
Other non-current liabilities
6,895
1,055
Stockholders' equity
52,717
34,418
$ 67,578
$ 45,433