Atrion (ATRI) investor relations material

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.