Atrion Reports Fourth Quarter and Full Year 2021 Results

Allen, Texas, UNITED STATES


ALLEN, Texas, Feb. 25, 2022 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ: ATRI) today announced its results for the fourth quarter ended December 31, 2021 and the full year 2021.

Revenues for the fourth quarter of 2021 totaled $40.3 million compared to $32.2 million for the same period in 2020. Net income for the fourth quarter of 2021 totaled $8.1 million, an increase of $0.7 million compared to the same period in 2020. Fourth quarter 2021 diluted earnings per share were $4.50 compared to $4.02 for the fourth quarter of 2020. For the full year 2021 compared to the full year 2020, revenues increased to $165.0 million from $147.6 million, net income was $33.1 million versus $32.1 million, and diluted earnings per share were $18.18 compared to $17.44.

Commenting on the results for the fourth quarter of 2021 compared to the prior year period, David Battat, President and CEO, stated, “I am pleased to report that despite the impact of the pandemic, revenues were up by 25% and operating income was up by 24% while net income was up by a smaller 10% due, in part, to weaker performance in our investment portfolio in the quarter.” Mr. Battat added, “Although the increase in revenues came from many products, the largest single contributor was our state-of-the-art myocardial protection system console, or MPS 3, and associated disposables. These increases in revenues and operating income further validate our focus on adding new technologies and new customers, as well as continuing to invest in our people and the latest automation.

Mr. Battat continued, “For the full year 2021 compared to the full year 2020, revenues were up by 12% while operating income was flat, impacted by higher labor costs, supply chain disruptions, and inefficiencies in the layouts of our work cells to allow for social distancing and other employee safety measures necessitated by the pandemic. Net income for the year was up by 3%, favorably impacted by lower tax rates.”

Addressing expectations for 2022, Mr. Battat stated, “Barring major events such as a resurgence of COVID-19 or further supply chain disruptions, we expect double-digit increases in revenues and operating income." Mr. Battat concluded, "I have never been more excited by the breadth and depth of our R&D pipeline, including work being done to expand the applications for our MPS3 platform technology."

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, Atrion's expectations regarding increases in revenues and operating income in 2022. 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 Strickland
 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
December 31,
 Twelve Months Ended
December 31,
  2021   2020   2021   2020 
Revenues$40,293  $32,244  $165,009  $147,591 
Cost of goods sold 22,917   18,315   95,637   81,428 
Gross profit 17,376   13,929   69,372   66,163 
Operating expenses 9,538   7,604   33,330   30,495 
Operating income 7,838   6,325   36,042   35,668 
        
Interest and dividend income 163   283    843    1,444 
Other investment income (loss) 625    1,350    1,477    1,355 
Other income  --    --    67    --  
Income before income taxes 8,626   7,958   38,429   38,467 
Income tax provision  (499)  (588)  (5,374)  (6,352)
Net income $8,127  $7,370  $33,055  $32,115 
        
Income per basic share$4.51  $4.03  $18.22  $17.49 
        
Weighted average basic shares                
outstanding 1,801   1,828   1,814   1,836 
        
Income per diluted share$4.50  $4.02  $18.18  $17.44 
        
Weighted average diluted shares       
outstanding 1,806   1,832   1,818   1,841 

        

ATRION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
    
 Dec. 31, Dec. 31,
ASSETS2021 2020
 (Unaudited)  
Current assets:   
Cash and cash equivalents$32,264 $22,450
Short-term investments 29,059  19,258
Total cash and short-term investments 61,323  41,708
Accounts receivable 21,023  16,445
Inventories 50,778  50,298
Prepaid expenses and other 3,447  3,868
    Total current assets 136,571  112,319
      
Long-term investments 19,423  46,207
      
Property, plant and equipment, net 97,972  94,935
Other assets 13,298  13,429
    
 $267,264 $266,890
    
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
    
Current liabilities 13,346  13,636
Line of credit --  --
Other non-current liabilities 9,622  12,812
Stockholders’ equity 244,296   240,442
    
 $267,264 $266,890