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ATRION Corp. Reports Operating Results (10-Q)

August 04, 2010 | About:
10qk

10qk

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ATRION Corp. (ATRI) filed Quarterly Report for the period ended 2010-06-30.

Atrion Corp. has a market cap of $300.6 million; its shares were traded at around $148.7 with a P/E ratio of 17.3 and P/S ratio of 3. The dividend yield of Atrion Corp. stocks is 1%. Atrion Corp. had an annual average earning growth of 22.7% over the past 10 years. GuruFocus rated Atrion Corp. the business predictability rank of 4-star.ATRI is in the portfolios of Chuck Royce of Royce& Associates.

Highlight of Business Operations:

For the three months ended June 30, 2010, we reported revenues of $27.9 million, operating income of $8.2 million and net income of $5.4 million, up 7 percent, 16 percent and 17 percent, respectively, from the three months ended June 30, 2009. For the six months ended June 30, 2010, we reported revenues of $54.8 million, operating income of $15.2 million and net income of $10.1 million, up 7 percent, 16 percent and 15 percent, respectively, from the six months ended June 30, 2009.

Consolidated net income totaled $5.4 million, or $2.69 per basic and $2.67 per diluted share, in the second quarter of 2010. This is compared with consolidated net income of $4.7 million, or $2.35 per basic and $2.30 per diluted share, in the second quarter of 2009. The income per basic share computations are based on weighted average basic shares outstanding of 2,021,755 in the 2010 period and 1,979,797 in the 2009 period.

Our second quarter 2010 operating expenses of $4.9 million were $144,000 lower than the operating expenses for the second quarter of 2009. This decrease was comprised of a $170,000 decrease in Selling expenses and a $85,000 decrease in R&D expenses partially offset by a $111,000 increase in General and Administrative, or G&A, expenses. The decrease in R&D costs was primarily related to reduced outside services and compensation partially offset by prototype and development supplies. The decrease in Selling expenses for the second quarter of 2010 was primarily related to decreased compensation and travel costs partially offset by increased advertising and promotion expense. The increase in G&A expenses for the second quarter of 2010 was principally attributable to increased compensation, increased outside services and travel.

Consolidated net income totaled $10.1 million, or $5.01 per basic and $4.98 per diluted share, in the first six months of 2010. This is compared with consolidated net income of $8.8 million, or $4.45 per basic and $4.37 per diluted share, in the first six months of 2009. The income per basic share computations are based on weighted average basic shares outstanding of 2,020,116 in the 2010 period and 1,976,860 in the 2009 period. The income per diluted share computations are based on weighted average diluted shares outstanding of 2,031,614 in the 2010 period and 2,012,179 in the 2009 period.

Our operating expenses for the first six months of 2010 of $9.8 million were $137,000 lower than the operating expenses for the first six months of 2009. This decrease was comprised of a $245,000 decrease in Selling expenses and a $241,000 decrease in R&D expenses partially offset by a $349,000 increase in G&A, expenses. The decrease in R&D costs was primarily related to reduced outside services and compensation. The decrease in Selling expenses for the first six months of 2010 was primarily related to decreased compensation and decreased travel. The increase in G&A expenses for the first six months of 2010 was principally attributable to increased compensation, increased outside services and increased taxes.

Cash flows from operating activities generated $15.1 million for the six months ended June 30, 2010 as compared to $13.3 million for the six months ended June 30, 2009. The increase in the 2010 period was primarily attributable to increased operational results as compared to the 2009 period. During the first six months of 2010, we expended $1.8 million for the addition of property and equipment. Maturities of investments generated $3.0 million during the first six months of 2010. We expended $19.4 million for the purchase of investments during this period. Stock option activities in the first six months of 2010 generated $902,000 of cash, and we paid dividends of $13.6 million during that period. Included in the $13.6 million paid for dividends was $12.1 million related to a special cash dividend paid in January 2010.

Read the The complete Report

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