Server: Netscape-FastTrack/2.01 Date: Wed, 17 Dec 1997 05:53:59 GMT Accept-ranges: bytes Last-modified: Tue, 21 Oct 1997 19:13:43 GMT Content-length: 17851 Content-type: text/html 1997 FIRST QUARTER RESULTS

NEWS RELEASE

ATRION Corporation

Atrion Corporation
3230 Second Street
P.O. Box 3869
Muscle Shoals, AL 35662

FOR IMMEDIATE RELEASE

Contact: Jeffery Strickland
Vice President and Chief Financial Officer
(205) 383-3631

 

 

 ATRION REPORTS FIRST QUARTER RESULTS

 

MUSCLE SHOALS, Alabama (May 8, 1997) -ATRION Corporation (Nasdaq/NM - ATRI) today announced results for the first quarter of 1997.The Company's medical products business posted significantly higher revenues and earnings for the quarter as a result of the acquisition of Halkey-Roberts Corporation in May 1996, even though the Company's total revenues and earnings for the period declined from those reported in the year-earlier period.



Operating revenues of $40.0 million for the first quarter of 1997 were $1.3 million or 3% lower than revenues of $41.3 million for the first quarter of 1996. Warmer weather in the first quarter of 1997, as well as unusually high demand from one of the Company's industrial customers in the year-earlier period which did not recur in 1997, resulted in a 16% decline in natural gas revenues and an 18% decline in natural gas volumes. This decline in natural gas revenues was largely offset by an increase in revenues in the Company's medical products business attributable to the inclusion of Halkey-Roberts in the current-year period. As a result of lower natural gas revenues, net income for the first quarter of 1997 declined 22% to $1.6 million or $.51 per share from $2.1 million or $.66 per share in the prior-year period.



As previously announced, Atrion has entered into an agreement to sell its natural gas pipeline and marketing subsidiaries to Midcoast Energy Resources, Inc. (AMEX - MRS) for approximately $39.4 million in cash as part of the Company's efforts to redeploy its assets in higher growth areas like its medical products business. The closing of this sale is contingent on the satisfaction of certain conditions, including stockholder approval at the Company's annual meeting to be held later this month.



Atrion's medical products business, which will comprise the bulk of the Company's operations subsequent to the disposition of its natural gas pipeline and marketing subsidiaries, achieved significantly higher revenues and earnings in the first quarter of 1997 compared with the year-earlier period. Revenues from the operations that will be retained by the Company rose 157% to $7.9 million for the first quarter of 1997 compared with $3.1 million in the year-earlier period, while net







income increased 50% to $480,000 or $.15 per share compared with $325,000 or $.10 per share in the first quarter of 1996. These improvements reflect the inclusion in the current year period of the results for Halkey-Roberts Corporation, which was acquired in May 1996, and for the Company's gaseous oxygen pipeline, which became operational in April 1996, as well as continued growth in Atrion's LacriCATH™ sales compared with those in the year-earlier quarter.



"We are optimistic about the growth potential for our medical products business," commented Jerry A. Howard, Chairman, President and Chief Executive Officer. "Atrion Medical Products has just entered into a new long-term contract with one of its large long-standing customers to develop and manufacture a new surgical product which we believe has the potential to contribute significantly to our future results. In addition, following recent clearance by the Food and Drug Administration, we have begun to market a new product in our LacriCATH™ line, the STENTube™ intubation tube, and we also have commenced international distribution of our LacriCATH™ products. These initiatives demonstrate the Company's flexibility and innovation in new product design and implementation." Howard said the Company continues to pursue acquisition opportunities in the medical products field in anticipation of the pending sale of Atrion's natural gas pipeline and marketing subsidiaries.



Howard also noted that the proposed sale of the Company's natural gas operations, the proceeds of which the Company intends to use primarily to finance new acquisitions in the medical products industry, is expected to result in gain of approximately $17 million in the second quarter of 1997. The Company estimates that as a result of this gain, its book value per share following the sale will increase from a current level of $11 per share to approximately $16 per share.



During the first quarter of 1997, Atrion continued to make stock repurchases under the Company's stock repurchase program. "We believe the Company's shares, at current prices, represent an attractive investment for Company funds," Howard said.



Atrion Corporation serves a worldwide health care marketplace and provides pipeline and energy services in the lower Tennessee Valley. Through its medical products subsidiaries, the Company designs, develops, manufactures, sells and distributes medical products and components. Through its pipeline and energy services subsidiaries, the Company transports natural gas and gaseous oxygen, markets natural gas, and provides related energy services.

 

 

 

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

 

  Three Months Ended
March 31, 1997
Three Months Ended
March 31, 1996
Operating Revenues $ 40,018 $ 41,322
Cost of Goods Sold 33,942 35,405
Gross Margin 6,076 5,917
Operating Expenses 3,403 2,894
Operating Income 2,673 3,023
Other Income (Expense) ( 93 ) 264
Income Before Taxes 2,580 3,287
Income Tax Expense 948 1,188
Net Income $ 1,632 $ 2,099
Earnings Per Share $ .51 $ .66 (1)
Dividends Per Share $ .20 $ .20 (1)
Average Shares Outstanding 3,215,385 3,179,888(1)


(1) Adjusted to reflect three-for-two stock split effected in December 1996.


ATRION CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)

  March 31,
1997
March 31,
1996

ASSETS  
Current assets:  
Cash and temporary investments $ 174 $ 144
Accounts Receivable 12,408 19,154
Inventories 3,980 4,016
Other current assets 1,269 1,009
Total current assets 17,831 24,323
Property, plant and equipment, net 25,288 25,409
Other assets 15,150 13,519
$ 58,269 $ 63,251
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current Liabilities:
Accounts payable and accrued liabilities $ 10,953 $ 18,079
Current maturities of long-term debt 953 703
Total current liabilities 11,906 18,782
Long term debt 7,066 6,313
Other non-current liabilities 3,889 3,738
Stockholders' equity 35,408 34,418
$ 58,269 $ 63,251

 

 

 

 

 


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