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 | %) | |||||
