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Atrion Corp (ATRI) investor relations material

Atrion Corp Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2024 earnings summary9 Aug, 2024

Executive summary

  • Revenues for Q2 2024 increased 11% year-over-year to $48.8 million, driven by strong growth in MPS consoles, disposables, and fluid delivery products.

  • Net income for Q2 2024 dropped 94% year-over-year to $0.4 million, mainly due to $5.0 million in merger-related expenses.

  • Operating income for Q2 2024 was $0.5 million, down 93% from Q2 2023, impacted by merger-related legal and advisory fees.

  • Atrion entered into a definitive merger agreement with Nordson Corporation; each share to be converted into $460 in cash upon closing, expected in Q3 2024.

  • Adjusted operating income, excluding merger expenses, was $5.5 million, a 25% decrease from the prior year.

Financial highlights

  • Q2 2024 revenues: $48.8 million (up 11.3% year-over-year); net income: $0.4 million ($0.23 per share, basic and diluted).

  • Six months ended June 30, 2024: revenues $96.1 million (up 14.6% year-over-year); net income $3.2 million ($1.81 per share).

  • Gross profit margin for Q2 2024 was 32.5% (down from 39.4% in Q2 2023); operating margin was 1.1% (down from 16.8%).

  • Q2 2024 cost of goods sold increased 23.9% year-over-year, mainly due to higher manufacturing costs.

  • Inventories declined 10% sequentially and are 18% lower than at December 31, 2023.

Outlook and guidance

  • The merger with Nordson is expected to close in Q3 2024, subject to customary conditions and stockholder approval.

  • Continued recovery expected in fluid delivery products, with some production lines halted to reduce excess inventories.

  • Inventory management actions are expected to support future margin improvement.

  • Management believes current cash, investments, and credit facility are sufficient to fund requirements for the foreseeable future.

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Frequently asked questions

Atrion Corporation develops and manufactures a variety of products primarily for medical applications. Its offerings include fluid delivery devices, cardiovascular products, and ophthalmic products. These products are utilized by hospitals, physicians, and other healthcare providers, as well as sold to other manufacturers. Key items in Atrion's portfolio include valves for fluid delivery, myocardial protection systems, balloon catheters for ophthalmic use, and various safety products for marine and aviation applications. The company operates manufacturing facilities in Texas, Delaware, and Alabama. Atrion Corporation is headquartered in Allen, Texas, and its shares are listed on the NASDAQ.

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