ATRION Corp. Reports Operating Results (10-Q)
Atrion Corp. has a market cap of $287.9 million; its shares were traded at around $142.47 with a P/E ratio of 17 and P/S ratio of 2.9. 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, Chuck Royce of Royce& Associates.
Highlight of Business Operations:For the three months ended March 31, 2010, we reported revenues of $26.9 million, operating income of $7.0 million and net income of $4.7 million, up 7 percent, 15 percent and 14 percent, respectively, from the three months ended March 31, 2009.
Consolidated net income totaled $4.7 million, or $2.33 per basic and $2.31 per diluted share, in the first quarter of 2010. This is compared with consolidated net income of $4.1 million, or $2.09 per basic and $2.06 per diluted share, in the first quarter of 2009. The income per basic share computations are based on weighted average basic shares outstanding of 2,018,458 in the 2010 period and 1,973,888 in the 2009 period. The income per diluted share computations are based on weighted average diluted shares outstanding of 2,030,268 in the 2010 period and 2,002,885 in the 2009 period.
Our first quarter 2010 operating expenses of $5.0 million were $7,000 higher than the operating expenses for the first quarter of 2009. This increase was comprised of a $237,000 increase in General and Administrative, or G&A, expenses partially offset by a $75,000 decrease in Selling expenses and a $155,000 decrease in R&D expenses. The increase in G&A expenses for the first quarter of 2010 was principally attributable to increased compensation, increased outside services and increased taxes. The decrease in R&D costs was primarily related to reduced outside services and compensation. The decrease in Selling expenses for the first quarter of 2010 was primarily related to decreased compensation.
At March 31, 2010, we had $29.4 million in cash and cash equivalents and short-term and long-term investments, a decrease of $7.0 million from December 31, 2009. The principal contributor to this decrease was a $12.1 million special cash dividend paid on January 29, 2010 partially offset by cash of $5.7 million generated during the quarter ended March 31, 2010 by operating activities.
As of March 31, 2010, we had working capital of $43.5 million, including $16.7 million in cash and cash equivalents. The $6.0 million decrease in working capital during the first three months of 2010 was primarily related to decreases in cash and short-term investments partially offset by an increase in accounts receivable. The decrease in cash and short-term investments was primarily related to the funding of the $12.1 million special cash dividend paid during the first quarter of 2010. The increase in accounts receivable was primarily related to the increase in revenues for the first quarter of 2010 as compared with the fourth quarter of 2009.
Cash flows from operating activities generated $5.7 million for the three months ended March 31, 2010 as compared to $6.0 million for the three months ended March 31, 2009. The decrease in the 2010 period was primarily attributable to less favorable cash requirements for working capital related to accounts payable and accrued liabilities partially offset by increased operational results as compared to the 2009 period. During the first three months of 2010, we expended $791,000 for the addition of property and equipment. Maturities of investments generated $3.0 million during the first three months of 2010. Stock option activities in the first three months of 2010 generated $891,000 of cash, and we paid dividends of $12.9 million during that period. Included in the $12.9 million paid for dividends was $12.1 million related to a special cash dividend paid in January 2010.
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