Atrion Reports Third Quarter 2022 Results

Atrion Corporation (NASDAQ: ATRI) today announced its results for the third quarter ended September 30, 2022.

Revenues for the third quarter of 2022 totaled $44.6 million compared to $42.9 million for the same period in 2021. For the quarter ended September 30, 2022, operating income was $9.6 million, up $125 thousand over the comparable 2021 period, and net income was $8.8 million, up $562 thousand over the same period in 2021. Third quarter 2022 diluted earnings per share were $4.94 compared to $4.58 for the third quarter of 2021.

Commenting on the results for the third quarter of 2022 compared to the prior year period, David Battat, President and CEO, stated, “Even with the impact of Hurricane Ian, revenues were up 4%, resulting in the highest revenues of any third quarter in our history. Net income and earnings per share were up by 7% and 8%, respectively. Continuing manufacturing cost increases lowered gross profit margins in the quarter from 42% to 40%."

Mr. Battat continued, “Thankfully, our employees and our Florida facility were not harmed by the hurricane, but $1.7 million in products scheduled for shipment from that facility the last week of the just ended quarter did not ship until October because trucking companies did not make scheduled pickups in the days leading up to the storm. We also incurred costs due to shutting down that facility for almost three days to ensure the safety of our employees.”

Updating expectations for the second half of 2022, Mr. Battat stated, “Our international customers are expressing greater concern about a severe recession in Europe, especially in light of inflationary pressures from winter energy prices. These customers have cautioned they may push out orders previously scheduled to ship at the end of this year into 2023. We expect revenues and operating income will still show gains, but at lower than previously projected levels.”

Mr. Battat concluded, “Cash and short and long term investments totaled $58.6 million at September 30, 2022 after our purchase of 8,577 shares of the Company’s stock during the third quarter at an average price of $593.46. We remain debt free.”

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, the Company’s expectations regarding revenues and operating income. Words such as "expects," "believes," "anticipates," "forecasts," "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 StricklandVice President and Chief Financial Officer[phone]

ATRION CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share data)

	Three Months EndedSeptember 30,								Nine Months EndedSeptember 30,
		2022				2021				2022				2021
Revenues	$	44,631			$	42,855			$	140,651			$	124,716
Cost of goods sold		26,978				25,065				82,921				72,720
Gross profit		17,653				17,790				57,730				51,996
Operating expenses		8,050				8,312				26,848				23,792
Operating income		9,603				9,478				30,882				28,204
Interest and dividend income		210				281				639				680
Other investment income (loss)		764				(173	)			216				852
Other income		7				--				92				67
Income before income taxes		10,584				9,586				31,829				29,803
Income tax provision		(1,745	)			(1,309	)			(5,143	)			(4,875	)
Net income	$	8,839			$	8,277			$	26,686			$	24,928
Income per basic share	$	4.95			$	4.59			$	14.89			$	13.71
Weighted average basic shares outstanding		1,786				1,803				1,793				1,818
Income per diluted share	$	4.94			$	4.58			$	14.86			$	13.68
Weighted average diluted shares outstanding		1,788				1,806				1,796				1,822

ATRION CORPORATIONCONSOLIDATED BALANCE SHEETS(In thousands)

	Sept. 30,			Dec. 31,
ASSETS		2022			2021
	(Unaudited)
Current assets:
Cash and cash equivalents	$	27,125		$	32,264
Short-term investments		20,296			29,059
Total cash and short-term investments		47,421			61,323
Accounts receivable		22,038			21,023
Inventories		59,624			50,778
Prepaid expenses and other		3,598			3,447
Total current assets		132,681			136,571
Long-term investments		11,133			19,423
Property, plant and equipment, net		115,113			97,972
Other assets		13,027			13,298
	$	271,954		$	267,264
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities		17,879			13,346
Line of credit		--			--
Other non-current liabilities		7,800			9,622
Stockholders’ equity		246,275			244,296
	$	271,954		$	267,264