| Nasdaq: ATRI |
| Sectors: |
| Health Services |
| Medical Appliances & Equipment |
| Medical Instruments & Supplies |
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| Investment Style: |
Theme
Value
Alternative
Cash Flow
Growth
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| Highlights: |
| Atrion’s ability to generate strong cash flows is a key strength that enables the company to deliver consistent growth and profitability and to support ongoing R&D and capital improvements in technology, facilities and equipment. During 2006, we completed construction of a state-of-the-art manufacturing facility in St. Petersburg, Florida. This world-class plant is enhancing our ability to meet customer needs with even greater quality, flexibility and efficiency. Our consistent generation of cash flow also enables us to invest in value-creating initiatives such as stock repurchases and dividend payments.For eleven consecutive years, from 1999 through 2009, Atrion produced earnings per share growth of more than 10 percent each year, ranging from 11 percent to more than 50 percent. Despite fluctuations in markets, product demand, and the economy, the company has continued to return value to stockholders through consistent, strong earnings growth. During this same time period, the company’s stock price increased from $8.00 per share to over $140 per share.Over the same eleven-year period, return on equity steadily increased from five percent in 1999 to 17 percent in 2009.
From 1999 to 2006, we repurchased nearly two million shares of our stock and consistently executed the timely repayment of debt associated with these buybacks. During the years 2005 and 2006, Atrion invested more than $31 million in new facilities and equipment that led to a moderate amount of debt in 2006. This debt was fully repaid in 2007. At December 31,2009 our cash and investments totaled $36.4 million. |
| Summary: |
 Although Atrion is a relatively small company in the medical products arena, a number of our products hold leading market positions in their respective niches, creating a stable and diversified revenue base.
Atrion’s presence in the healthcare and medical products industry is based on providing devices and components to niche markets that offer significant opportunity for product development, market penetration and revenues growth. We work to enhance our position in the markets we serve by:
• Focusing on customer needs
• Expanding existing product lines and developing new products
• Maintaining a culture of controlling cost
• Preserving and fostering a collaborative, entrepreneurial management structure
As a result of this strategy, a number of our most successful products hold the leading market positions in their respective niches, demonstrating that small markets can produce attractive returns. For example, Atrion is a leading U.S. manufacturer of soft contact lens disinfection cases, clamps for IV sets, cardiac surgery vacuum relief valves, minimally invasive surgical tapes and check valves. Additionally, our increasingly popular LacriCATH® balloon catheter, positions the company as a market leader with a patented product for the treatment of tear duct blockages. Atrion is also the leading manufacturer of valves and inflation devices used in marine and aviation safety products.
To respond to new market opportunities, we make research and development a continuing priority. In 2009, we devoted 11 percent of our operating income before taxes and R&D expenditures to this area. Our proprietary products are protected by 428 active or pending patents.
Supporting a successful and diversified product line is a commitment to financial flexibility and strength. Atrion maintains a steady and consistent focus on managing assets wisely, making products that meet specific market needs, and improving productivity and profitability. As a result, we have delivered consistent growth in earnings per share from continuing operations, while funding the needs of the business and investing in the resources, technology and assets to ensure operating efficiency and fuel future growth.
With the inauguration of our newest plant, Atrion has approximately 400,000 square feet of manufacturing, research and development capacity in three facilities in Alabama, Florida and Texas. We continually upgrade the manufacturing technology in our plants — automating processes where possible to maximize efficiency and quality control. The result is a seamless development and production system that can respond to new and increasing customer demand.
Atrion is committed to creating continuing value for stockholders. In recent years, the company has completed several stock repurchase programs, aimed at enhancing stockholder value. Since 2003, when we initiated the payment of quarterly dividends on our common stock, we have increased the dividend five times. In August 2009, we boosted the quarterly dividend from 30 cents per share to 36 cents per share.
The development of new products to meet market needs is an ongoing strategy of the company. In recent years, Atrion has developed such innovative products as a swabable valve that minimizes the risk of needle-sticks for medical personnel, and the MPS2®, the second generation of our Myocardial Protection System. The MPS2 is a proprietary technology that delivers essential fluids and medications to the heart during open-heart surgery. Acceptance of the MPS technology is indicated by the usage of this system in more than 50,000 open-heart surgeries annually.
Our company’s goal is to continue to build its presence in the medical products industry by leveraging our leadership position in niche markets and by developing new products to meet increasing customer demand for effectiveness, safety and cost. Atrion is committed to building value for the company and its stockholders through continued growth in earnings per share. |
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| As of Sep 03, 2010 10:07 AM ET |
| Nasdaq |
ATRI |
$140.82 |
|
0.00 |
0.00% |
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| Open: |
142.09 |
Prev Close: |
140.82 |
| Day High: |
142.30 |
Day Low: |
138.20 |
| Year High: |
164.56 |
Year Low: |
118.00 |
| Volume: |
0 |
| Market Cap: |
$284,689,035 |
| Outstanding: |
2,021,652 |
| Outstanding as of: |
Jul 13, 2010 |
| Quote delayed 20 minutes |
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