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PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Atrion Reports Results for Fourth Quarter and Full Year 2019

February 26, 2020 GMT

ALLEN, Texas, Feb. 26, 2020 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ: ATRI) announced today that for the fourth quarter of 2019 revenues were $34.5 million compared to $34.9 million in the same period of 2018, net income was $8.1 million compared to $7.7 million in the prior year period, and diluted earnings per share were $4.33 compared to $4.17 in the prior-year period. For the full year 2019 compared to 2018, Atrion increased revenues to $155.1 million from $152.4 million, net income was $36.8 million compared to $34.3 million, and diluted earnings per share were $19.73 compared to $18.44.

David Battat, President & CEO, commenting on the results for the fourth quarter and the full year 2019 as compared to the prior year periods, said, “Revenues were up 2% for the year, but down 1% for the quarter partly due to a critical nationwide shortage of sterilization capacity. We have contracted for additional sterilization capacity, enabling us to fully meet our current requirements.” Mr. Battat continued, “While operating income continued to reflect an enviable ratio of 26% to sales, it was down 3% in the quarter and for the full year.” Mr. Battat added, “With the benefit of a lower tax rate and an increase in the value of our investment portfolio, net income and diluted earnings per share were both up 4% for the quarter and 7% for the full year.”

Mr. Battat added, “During the year we increased our dividend payout by 15%, while adding $11.1 million to our cash and short and long term investments bringing that total to $100.6 million as of December 31, 2019.”

Mr. Battat concluded, “For the first quarter of 2020, sales and operating income are forecasted to be slightly below the prior year period. We expect each subsequent quarter in 2020 to show progressively higher positive comparisons in both measures, with the full year reflecting high single digit growth in sales and low double digit growth in operating income.”

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 sales and operating income for each quarter and full year 2020. 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 involve risks and uncertainties. The following are some of the factors that could cause actual results or future events to differ materially from those expressed in or underlying our forward-looking statements: changing economic, market and business conditions; acts of war or terrorism; the effects of governmental regulation; competition and new technologies; slower-than-anticipated introduction of new products or implementation of marketing strategies; the Company’s ability to protect its intellectual property; changes in the prices of raw materials; changes in product mix; and intellectual property and product liability claims and product recalls. 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 CORPORATIONCONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share data)

Three Months Ended Twelve Months Ended December 31, December 31, ------------------------ ------------------------ 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) ----------- ----------- ----------- ----------- Revenues $ 34,466 $ 34,926 $ 155,066 $ 152,448 Cost of goods sold 18,964 19,321 84,378 80,670 - ------ -- - ------ -- - ------- - - ------- - Gross profit 15,502 15,605 70,688 71,778 Operating expenses 7,427 7,287 30,159 30,071 - ------ -- - ------ -- - ------- - - ------- - Operating income 8,075 8,318 40,529 41,707 Interest and dividend income 591 473 2,487 1,667 Other investment income (loss) (113) (190) 152 (1,380) Other income -- 22 -- 42 - ------ -- - ------ -- - ------- - - ------- - Income before income taxes 8,553 8,623 43,168 42,036 Income tax benefit (provision) (489) (874) (6,407) (7,781) - ------ -- - ------ -- - ------- - - ------- - Net income $ 8,064 $ 7,749 $ 36,761 $ 34,255 - ------ -- - ------ -- - ------- - - ------- - Income per basic share $ 4.35 $ 4.18 $ 19.82 $ 18.49 - ------ -- - ------ -- - ------- - - ------- - Weighted average basic shares 1,855 1,853 1,855 1,853 outstanding - ------ -- - ------ -- - ------- - - ------- - Income per diluted share $ 4.33 $ 4.17 $ 19.73 $ 18.44 - ------ -- - ------ -- - ------- - - ------- - Weighted average diluted shares 1,862 1,860 1,863 1,858 outstanding - ------ -- - ------ -- - ------- - - ------- -

ATRION CORPORATIONCONSOLIDATED BALANCE SHEETS(In thousands)

Dec. 31, Dec. 31, ASSETS 2019 2018 --------- --------- (unaudited (unaudited ) ) Current assets: Cash and cash equivalents $ 45,048 $ 58,753 Short-term investments 23,766 9,684 - ------- - ------- Total cash and short-term investments 68,814 68,437 Accounts receivable 18,886 17,014 Inventories 42,093 33,572 Prepaid expenses and other 2,545 3,242 Total current assets 132,338 122,265 Long-term investments 31,772 21,048 Property, plant and equipment, net 84,606 74,893 Other assets 13,315 13,010 - ------- - ------- $ 262,031 $ 231,216 - ------- - ------- LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities 11,274 10,220 Line of credit -- -- Other non-current liabilities 12,887 10,229 Stockholders’ equity 237,870 210,767 - ------- - ------- $ 262,031 $ 231,216 - ------- - -------