Atrion Reports Second Quarter 2024 Results

ALLEN, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) — Atrion Corporation (NASDAQ: ATRI) today announced its results for the second quarter ended June 30, 2024.

Revenues for the second quarter of 2024 totaled $48.8 million compared to $43.8 million for the same period in 2023. For the just ended quarter, operating income was $0.5 million, down $6.8 million from the comparable 2023 period, and net income was $0.4 million, down $6.2 million from the same period in 2023. Operating income was significantly impacted by the accrual of $5.0 million in acquisition-related expenses discussed below. Second quarter 2024 diluted earnings per share were $0.23 compared to $3.73 for the second quarter of 2023.

Commenting on the results for the second quarter of 2024 compared to the prior year period, David Battat, President and CEO, stated, “We were pleased to see strong revenue growth of 11%. Adjusting for the accrual of expenses relating to the merger with Nordson Corporation announced May 28, 2024, operating income was $5.5 million, down 25% from the prior year period. Our MPS consoles showed particularly strong growth, with sales up 22% and MPS disposables sales up 21%. We saw continued recovery in our fluid delivery products, with certain product families showing double-digit revenue increases compared to the prior year period. We continued to halt some fluid delivery production lines to reduce inventories accumulated as the result of the supply chain disruptions in 2023. While this halt resulted in under-absorption of overhead and negatively impacted operating income, the value of inventories declined 10% from the first to the second quarters of this year and are 18% lower than they were December 31, 2023.”

Mr. Battat concluded, “As of June 30, 2024, cash and short- and long-term investments totaled $23.2 million. We remain debt free.”

Atrion Corporation develops and manufactures products primarily for medical applications. The Company’s website is www.atrioncorp.com.

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,
		2024				2023				2024				2023
Revenues	$	48,773			$	43,838			$	96,107			$	83,831
Cost of goods sold		32,926				26,584				67,909				51,496
Gross profit		15,847				17,254				28,198				32,335
Operating expenses		15,313				9,875				24,522				20,486
Operating income		534				7,379				3,676				11,849
Interest and dividend income		388				127				544				367
Other investment income (loss)		(542	)			98				(651	)			(623	)
Other income		23				29				37				39
Interest expense		—				(27	)			—				(27	)
Income before income taxes		403				7,606				3,606				11,605
Income tax provision		(1	)			(1,043	)			(412	)			(1,557	)
Net income	$	402			$	6,563			$	3,194			$	10,048
Income per basic share	$	0.23			$	3.73			$	1.81			$	5.71
Weighted average basic shares outstanding		1,761				1,760				1,761				1,761
Income per diluted share	$	0.23			$	3.73			$	1.81			$	5.70
Weighted average diluted shares outstanding		1,763				1,761				1,762				1,762

ATRION CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands)
	June 30,			Dec 31,
ASSETS	2024			2023
	(Unaudited)
Current assets:
Cash and cash equivalents	$	11,462		$	3,565
Short-term investments		6,124			2,691
Total cash and short-term investments		17,586			6,256
Accounts receivable		26,555			23,029
Inventories		67,641			82,307
Prepaid expenses and other		7,480			3,173
Total current assets		119,262			114,765
Long-term investments		5,624			8,165
Property, plant and equipment, net		122,905			125,347
Other assets		12,563			12,548
	$	260,354		$	260,825
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities		17,537			12,621
Other non-current liabilities		3,944			5,315
Stockholders’ equity		238,873			242,889
	$	260,354		$	260,825

ATRION CORPORATION NON-GAAP FINANCIAL INFORMATION (In thousands)

This release includes a reference to non-GAAP operating income that excludes merger-related expenses accrued in the second quarter of 2024. This financial measure is not prepared in accordance with GAAP. The operating income excluding the merger accrual is calculated by increasing operating income by the amount of the merger-related expenses.

We believe that this non-GAAP measure provides insight into our operating income performance. However, this non-GAAP financial measure may not be comparable to similarly titled non-GAAP financial measures used by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for GAAP financial measures. and are supplemental to the comparable GAAP measures.

Reconciliation to the most directly comparable GAAP measure is provided in the table below.

	Three Months Ended June 30,
	2024			2023			Change
Revenues	$	48,773		$	43,838		11	%
Cost of goods sold		32,926			26,584
Gross profit		15,847			17,254
Operating income		534			7,379
Add: merger accrual		5,000			–
Operating income excluding merger accrual		5,534			7,379		(25	%)