Workflow
Utah Medical Products(UTMD)
icon
Search documents
Utah Medical Products(UTMD) - 2025 Q2 - Quarterly Report
2025-08-12 19:51
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...
Utah Medical Products Reports Q2 Decline
The Motley Fool· 2025-07-25 07:54
Core Insights - Utah Medical Products reported a 4.3% decrease in GAAP revenue for Q2 2025, totaling $9.95 million, primarily due to a decline in sales to its largest customer, PendoTECH [1][2] - Diluted earnings per share (GAAP) were $0.94, with net income falling to $3.05 million, reflecting pressures on both gross and net margins [1][2] Financial Performance - Revenue decreased from $10.40 million in Q2 2024 to $9.95 million in Q2 2025, a drop of 4.3% [2] - Diluted EPS fell by 4.0% from $0.98 in Q2 2024 to $0.94 in Q2 2025 [2] - Gross profit margin contracted to 56.2%, down from 60.1% year-over-year, indicating a 3.9 percentage point decline [2][7] - Operating income decreased by 7.1% to $3.20 million, while net income fell by 11.7% [2] Sales and Market Dynamics - Domestic direct sales increased, with other device sales up 10% year-over-year, and Filshie Clip System sales in the U.S. rising by 8% [5] - However, domestic OEM sales dropped 38%, now representing only 12% of total domestic sales [5] - International sales declined by 11.6% in the first half of 2025 compared to the same period in 2024, with significant drops in Canada and Australia [6][11] Cost Management and Legal Exposure - The company reduced operating costs by $416,000 year-over-year, mainly through lower litigation expenses [8][12] - Legal costs remain a concern, with ongoing exposure related to product liability litigation [9][12] Strategic Focus and Future Outlook - Utah Medical Products focuses on product innovation, regulatory compliance, and international expansion, with a need to offset declining OEM sales [4] - Management anticipates an additional $200,000 reduction in PendoTECH-related revenue for the second half of 2025 compared to the same period in 2024 [14] - The company maintains a strong balance sheet with $82.2 million in cash and no debt, and has returned $1.0 million to shareholders through dividends [13]
Utah Medical Products(UTMD) - 2025 Q2 - Quarterly Results
2025-07-24 18:03
[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) UTMD's 2Q and 1H 2025 results met projections, with revenue and margin declines largely offset by share repurchases, maintaining a strong debt-free balance sheet [Second Quarter (2Q) and First Half (1H) 2025 Highlights](index=1&type=section&id=2Q%20and%201H%202025%20Highlights) UTMD's 2Q and 1H 2025 results met projections, with revenue and margin declines driven by PendoTECH sales, but EPS was cushioned by share repurchases, maintaining a strong debt-free balance sheet - The year-over-year revenue decline was dominated by a continued drop in sales to OEM customer PendoTECH, which accounted for **71% of the Q2 2025 revenue decline** and **86% of the 1H 2025 decline**[4](index=4&type=chunk) - Share repurchases during Q2 and 1H 2025 significantly mitigated the decline in EPS relative to the decline in Net Income[6](index=6&type=chunk) - The balance sheet as of June 30, 2025, remained strong with **no debt**; Cash and Investments totaled **$82.2 million** after paying **$2.0 million** in dividends and repurchasing **$6.7 million** of stock during 1H 2025[7](index=7&type=chunk)[8](index=8&type=chunk) Profit Margin Comparison (2025 vs. 2024) | Profit Margin | 2Q 2025 (%) | 2Q 2024 (%) | 1H 2025 (%) | 1H 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit Margin | 56.2% | 60.1% | 56.6% | 59.9% | | Operating Income Margin | 32.1% | 33.1% | 32.3% | 33.7% | | Income B4 Tax Margin | 38.5% | 40.5% | 39.1% | 41.4% | | Net Income Margin | 30.6% | 33.2% | 31.0% | 34.1% | [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) This section analyzes UTMD's revenue performance for 2Q and 1H 2025, highlighting the impact of PendoTECH sales and trends in domestic and international markets [Second Quarter (2Q) 2025 Revenues](index=2&type=section&id=2Q%202025%20Revenues) Total revenue for Q2 2025 decreased by 4.3% year-over-year, primarily due to a significant drop in sales to PendoTECH, despite domestic sales growth and weaker international direct sales Q2 2025 Revenue Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Consolidated Sales | $9,953k | $10,400k | (4.3%) | | Sales to PendoTECH | $196k | $511k | (61.7%) | | Total Domestic Sales | $5,865k | $5,831k | +0.6% | | Total International (OUS) Sales | $4,088k | $4,569k | (10.5%) | - Domestic sales growth was driven by a **10% increase** in direct non-Filshie device sales (to **$4,047k**) and an **8% increase** in Filshie Clip System sales (to **$1,107k**)[10](index=10&type=chunk) - International direct-to-end-user sales were **$282k (15.8%) lower** than Q2 2024, with declines across all major direct markets including Ireland, Canada, and the UK[11](index=11&type=chunk) - Favorable foreign exchange rates (stronger GBP and EUR) increased total consolidated sales by **$173k** in Q2 2025; In constant currency, foreign currency sales were **21.4% lower** than in Q2 2024[14](index=14&type=chunk) [First Half (1H) 2025 Revenues](index=3&type=section&id=1H%202025%20Revenues) For 1H 2025, total revenue declined by 9.6% year-over-year, largely driven by a substantial decrease in PendoTECH sales, while domestic sales showed growth excluding PendoTECH, and international sales declined 1H 2025 Revenue Performance (in thousands) | Metric | 1H 2025 | 1H 2024 | Change | | :--- | :--- | :--- | :--- | | Total Consolidated Sales | $19,663k | $21,740k | (9.6%) | | Sales to PendoTECH | $265k | $2,056k | (87.1%) | | Total Domestic Sales | $11,448k | $12,022k | (4.8%) | | Total International (OUS) Sales | $8,215k | $9,718k | (15.5%) | - Excluding sales to PendoTECH, domestic sales in 1H 2025 were **$11,184k**, a **7.6% increase** compared to **$10,396k** in 1H 2024[17](index=17&type=chunk) - International (OUS) sales, excluding PendoTECH sales from the prior year, were **11.6% lower** in 1H 2025 compared to 1H 2024[19](index=19&type=chunk) - Favorable foreign exchange rates had a net positive impact of **$130k** on 1H 2025 sales; In constant currency terms, foreign currency sales were **18.0% lower** than in 1H 2024[22](index=22&type=chunk) [Profitability Analysis](index=4&type=section&id=Profitability%20Analysis) This section details UTMD's profitability metrics, including Gross Profit, Operating Income, Income Before Tax, and Net Income, for 2Q and 1H 2025, analyzing key drivers of change [Gross Profit (GP)](index=4&type=section&id=Gross%20Profit%20(GP)) Gross Profit Margin contracted in 2Q and 1H 2025, primarily due to challenges in Ireland operations, including unfavorable product mix, reduced fixed cost absorption, and higher raw material costs Gross Profit and Margin Comparison (in thousands, except for margins) | Metric | 2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $5,595k | $6,253k | $11,133k | $13,018k | | Gross Profit Margin | 56.2% | 60.1% | 56.6% | 59.9% | - The lower margins were mainly due to Ireland operations, stemming from an unfavorable product mix, lower sales volume to absorb fixed costs, higher raw material costs, and an increase in intercompany inventory requiring reserved gross profit[25](index=25&type=chunk) - In contrast, gross margins in the U.S. operations remained consistent with prior periods in 2024 and Q1 2025, helped by higher direct sales[25](index=25&type=chunk) [Operating Income (OI)](index=5&type=section&id=Operating%20Income%20(OI)) Operating Income decreased in 2Q and 1H 2025 due to lower Gross Profit, but the decline was mitigated by reduced Operating Expenses, notably a significant drop in U.S. litigation costs Operating Income and Margin Comparison (in thousands, except for margins) | Metric | 2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Income | $3,196k | $3,438k | $6,349k | $7,321k | | Operating Margin | 32.1% | 33.1% | 32.3% | 33.7% | Operating Expenses Breakdown (as % of sales) | OE Category | 2Q 2025 (%) | 2Q 2024 (%) | 1H 2025 (%) | 1H 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | S&M | 5.3% | 5.3% | 5.2% | 4.4% | | G&A | 17.5% | 19.4% | 17.6% | 19.4% | | R&D | 1.3% | 2.4% | 1.5% | 2.4% | | Total OE | 24.1% | 27.1% | 24.3% | 26.2% | - The primary driver for lower G&A expenses was a significant reduction in U.S. litigation costs, which were **$355k lower** in Q2 2025 and **$791k lower** in 1H 2025 compared to the same periods in 2024[30](index=30&type=chunk) [Income Before Tax (EBT) and EBITDA](index=6&type=section&id=Income%20Before%20Tax%20(EBT)%20and%20EBITDA) EBT declined in 2Q and 1H 2025, exacerbated by lower non-operating income, yet non-GAAP adjusted EBITDA remained strong, with the company on track for its full-year target EBT and Margin Comparison (in thousands, except for margins) | Metric | 2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | :--- | :--- | | Income Before Tax (EBT) | $3,835k | $4,211k | $7,694k | $9,010k | | EBT Margin | 38.5% | 40.5% | 39.1% | 41.4% | - Net non-operating income (NOI) decreased in 1H 2025 by **$343k** compared to 1H 2024, primarily due to receiving approximately **$332k less** in interest income because of lower cash balances and interest rates[35](index=35&type=chunk)[36](index=36&type=chunk) - Management's beginning-of-year EBITDA target of **$17-$18 million** is still considered achievable[38](index=38&type=chunk) Non-US GAAP Adjusted EBITDA Reconciliation (1H 2025 vs 1H 2024) (in thousands) | Component | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | EBT | $7,694k | $9,010k | | Depreciation Expense | $405k | $327k | | Femcare IIA Amortization | $1,032k | $1,005k | | Stock Option Expense | $168k | $130k | | **Adjusted EBITDA** | **$9,323k** | **$10,489k** | [Net Income (NI)](index=7&type=section&id=Net%20Income%20(NI)) Net Income fell in 2Q and 1H 2025 due to lower operating and non-operating income, further impacted by an increased effective tax rate Net Income and Margin Comparison (in thousands, except for margins) | Metric | 2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $3,048k | $3,453k | $6,089k | $7,409k | | Net Income Margin | 30.6% | 33.2% | 31.0% | 34.1% | - The average consolidated income tax provision rate rose to **20.5%** in Q2 2025 (vs. 18.0% in Q2 2024) and **20.9%** in 1H 2025 (vs. 17.8% in 1H 2024), amplifying the decline in Net Income[40](index=40&type=chunk)[41](index=41&type=chunk) [Shareholder Metrics and Capital Allocation](index=7&type=section&id=Shareholder%20Metrics%20and%20Capital%20Allocation) This section examines UTMD's shareholder-focused metrics and capital allocation strategies, including Earnings Per Share, share repurchases, and dividend payments [Earnings Per Share (EPS)](index=7&type=section&id=Earnings%20Per%20Share%20(EPS)) Diluted EPS experienced a more moderate decline than Net Income in 2Q and 1H 2025, primarily due to the company's active share repurchase program reducing outstanding shares Diluted EPS Comparison | Metric | 2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | :--- | :--- | | Diluted EPS | $0.939 | $0.978 | $1.858 | $2.070 | | % Change | (4.0%) | | (10.3%) | | - The percentage decreases in EPS were substantially smaller than the decreases in Net Income due to a lower number of diluted shares outstanding[43](index=43&type=chunk) - Diluted shares used for EPS calculation decreased to **3,277,936** in 1H 2025 from **3,579,435** in 1H 2024 as a result of share repurchases[44](index=44&type=chunk) [Share Repurchases and Dividends](index=8&type=section&id=Share%20Repurchases%20and%20Dividends) UTMD actively returned capital to shareholders in 1H 2025 through significant share repurchases and consistent dividend payments, demonstrating a commitment to shareholder value - In 1H 2025, UTMD repurchased **119,255 shares** at an average price of **$56.26**, for a total cost of **$6.7 million**[45](index=45&type=chunk) - The company paid dividends of **$0.305 per share** in 1H 2025, totaling **$2.018 million**; This payout represented **33% of Net Income** for the period[47](index=47&type=chunk) [Financial Position](index=8&type=section&id=Financial%20Position) This section provides an overview of UTMD's robust financial position, including its balance sheet strength, liquidity, and working capital management as of June 30, 2025 [Balance Sheet Analysis](index=8&type=section&id=Balance%20Sheet%20Analysis) As of June 30, 2025, UTMD maintained a strong, debt-free balance sheet with high liquidity, evidenced by a significantly improved current ratio and efficient working capital management - The company's cash and investments balance declined by only **$0.8 million** to **$82.2 million** in 1H 2025, despite using **$6.7 million** for share repurchases and **$2.0 million** for dividends[49](index=49&type=chunk) - The current ratio improved significantly to **41.9** at June 30, 2025, compared to **25.6** at December 31, 2024, as a result of favorable changes in non-cash working capital[49](index=49&type=chunk) Key Financial Ratios (as of June 30, 2025) | Ratio | Value | | :--- | :--- | | Current Ratio | 41.9 | | Days in Trade Receivables | 33 | | Average Inventory Turns | 2.1 | | 2025 YTD ROE (before dividends) | 10% | [Financial Statements](index=10&type=section&id=Financial%20Statements) This section presents the detailed consolidated financial statements, including the Income Statement and Balance Sheet, for the specified periods, offering a comprehensive view of the company's financial health [Income Statement](index=10&type=section&id=Income%20Statement) This section provides the consolidated income statements for 2Q and 1H 2025, detailing key financial performance indicators such as Net Sales, Gross Profit, Operating Income, Net Income, and Earnings Per Share INCOME STATEMENT, Second Quarter (three months ended June 30) (in thousands except EPS) | (in thousands except EPS) | 2Q 2025 | 2Q 2024 | Percent Change | | :--- | :--- | :--- | :--- | | Net Sales | $ 9,953 | $ 10,400 | ( 4.3%) | | Gross Profit | 5,595 | 6,253 | (10.5%) | | Operating Income | 3,196 | 3,438 | ( 7.1%) | | Income Before Tax | 3,835 | 4,211 | ( 8.9%) | | Net Income | 3,048 | 3,453 | (11.7%) | | Earnings Per Share | $ 0.939 | $0.978 | ( 4.0%) | INCOME STATEMENT, First Half (six months ended June 30) (in thousands except EPS) | (in thousands except EPS) | 1H 2025 | 1H 2024 | Percent Change | | :--- | :--- | :--- | :--- | | Net Sales | $ 19,663 | $ 21,740 | ( 9.6%) | | Gross Profit | 11,133 | 13,018 | (14.5%) | | Operating Income | 6,349 | 7,321 | (13.3%) | | Income Before Tax | 7,694 | 9,010 | (14.6%) | | Net Income | 6,089 | 7,409 | (17.8%) | | Earnings Per Share | $ 1.858 | $ 2.070 | (10.3%) | [Balance Sheet](index=10&type=section&id=Balance%20Sheet) This section presents the consolidated balance sheet as of June 30, 2025, with comparative data, offering a snapshot of the company's assets, liabilities, and stockholders' equity BALANCE SHEET (in thousands) | | JUN 30, 2025 | DEC 31, 2024 | JUN 30, 2024 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash & Investments | $82,179 | $82,976 | $89,219 | | Total Current Assets | 94,375 | 96,331 | 102,322 | | Total Assets | $120,802 | $122,538 | $130,032 | | **Liabilities & Stockholders' Equity** | | | | | Total Current Liabilities | $2,254 | $3,757 | $3,939 | | Stockholders' Equity | 117,533 | 117,427 | 124,052 | | Total Liabilities & Stockholders' Equity | $120,802 | $122,538 | $130,032 |
Utah Medical Products: Deep Discount Is Drawing One Legendary Investor's Interest
Seeking Alpha· 2025-07-03 11:09
Core Viewpoint - The article emphasizes the strong balance sheet and profitability of Utah Medical Products (UTMD), suggesting a favorable risk/reward ratio for investors at its current price [1]. Group 1: Company Analysis - Utah Medical Products (UTMD) was initially rated as a Strong Buy due to its financial strength and profitability [1]. - The investment approach focuses on identifying micro-cap and small-cap opportunities that align with long-term success criteria established by renowned investors [1]. Group 2: Research Background - TQP Research is led by a Certified Public Accountant (CPA) with experience in structured finance, capital markets, and credit risk [1]. - The research emphasizes a value-oriented investment strategy, engaging actively with the investment community [1].
Utah Medical Products(UTMD) - 2025 Q1 - Quarterly Report
2025-05-15 19:00
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) UTAH 87-0342734 (State or other jurisdiction of incorpo ...
Utah Medical Q1 Earnings Drop 16% on Sales Slump, Stock Up 1%
ZACKS· 2025-05-05 18:35
Core Viewpoint - Utah Medical Products, Inc. (UTMD) reported a decline in earnings and sales for the first quarter of 2025, leading to muted investor enthusiasm as reflected in its stock performance compared to the S&P 500 index [1][2]. Financial Performance - Earnings per share (EPS) for Q1 2025 were 92 cents, a 16% decrease from $1.09 in the same quarter last year [2]. - Net sales were $9.7 million, down 14.4% from $11.3 million year-over-year [2]. - Gross profit declined 18.1% year-over-year to $5.5 million [2]. - Operating income fell 18.8% to $3.2 million, while net income decreased 23.1% to $3 million [3]. Business Metrics - Gross profit margin decreased to 57% from 59.7% due to challenges in aligning fixed manufacturing overhead costs with declining sales volume [4]. - Operating income margin slipped to 32.5% from 34.2%, and net income margin contracted to 31.3% from 34.9% [5]. - Domestic direct sales increased by 11.6% year-over-year, driven by recovering demand for neonatal intensive care unit (NICU) devices [5]. - U.S. OEM sales dropped significantly by 61.3%, primarily due to reduced purchases by PendoTECH [5]. - International sales declined 19.8% year-over-year, affected by lower volumes and adverse currency effects [6]. Management Commentary - Management indicated that the sales decline was mainly due to reduced OEM orders from PendoTECH, which accounted for 91% of the total sales decline [7]. - Gross margin erosion was attributed to fixed overhead costs not decreasing in line with revenue drops [7]. - General and administrative costs were reduced, while sales and marketing expenses increased due to higher employee costs and trade show activities [7]. - The effective tax rate rose to 21.2% from 17.6% the previous year, impacting net income due to a shift in income mix and a tax provision related to repatriated earnings [8]. Outlook - Management did not provide specific financial forecasts but stated that Q1 performance aligns with full-year expectations outlined in the 2024 10-K filing [9]. - The company anticipates that revenue and gross margin levels will remain consistent throughout the year, targeting an adjusted EBITDA of approximately $18 million for 2025 [9]. Other Developments - During the quarter, UTMD repurchased 54,267 shares at an average price of $59.35, utilizing $3.2 million in cash [10]. - The company paid $1 million in dividends and maintained a strong financial position, with cash and investments totaling $83.3 million at the end of the quarter [10][11]. - Stockholders' equity remained stable at $117 million, reflecting financial discipline amid capital return activities [11].
Utah Medical Products(UTMD) - 2025 Q1 - Quarterly Results
2025-04-29 18:32
Financial Performance - In Q1 2025, Utah Medical Products, Inc. reported total revenues of $1,630,000, a decline of 14.4% compared to Q1 2024[3] - Gross Profit (GP) for Q1 2025 was $5,538,000, which is $1,227,000 (18.1%) lower than Q1 2024 GP of $6,766,000[5] - Operating Income (OI) in Q1 2025 was $3,154,000, representing 32.5% of sales, compared to $3,883,000 (34.2% of sales) in Q1 2024[6] - Net Income (NI) for Q1 2025 was $2,174,000, a decrease of 23.1% from Q1 2024[9] - Earnings Per Share (EPS) in Q1 2025 was $0.56, only 16.0% lower than Q1 2024 despite a 23.1% decrease in NI due to share repurchases[10] - Total net sales for Q1 2025 were $9,710, down 14.4% from $11,340 in Q1 2024, with gross profit declining by 18.1%[35] Sales Performance - Domestic sales in Q1 2025 were $5,583,000, down 9.8% from $6,192,000 in Q1 2024, with direct sales increasing by 11.6%[13] - OUS sales in Q1 2025 were $4,127,000, a decrease of 19.8% compared to Q1 2024, with OEM sales to PendoTECH contributing significantly to the decline[14] Expenses and Costs - Operating Expenses (OE) in Q1 2025 were $2,385,000, representing 24.6% of sales, compared to $2,882,000 (25.4% of sales) in Q1 2024[16] - Research and Development (R&D) expenses decreased to $155,000 (1.6% of sales) in Q1 2025 from $266,000 (2.3% of sales) in Q1 2024, primarily due to one-time testing costs[19] Tax and Income Metrics - The consolidated income tax provision rate increased to 21.2% in Q1 2025 from 17.6% in Q1 2024, impacting the net income[9] - Consolidated EBT for Q1 2025 was $3,859, a decrease of 19.6% from $4,798 in Q1 2024, representing 39.7% of sales[20] - Net Income in Q1 2025 was $3,041, down 23.1% from $3,956 in Q1 2024, with a net income margin of 31.3% compared to 34.9% in Q1 2024[23] - Earnings per share (EPS) for Q1 2025 was $0.919, a decline of 16.0% from $1.093 in Q1 2024, with diluted shares decreasing to 3,310,248 from 3,618,168[24] Cash and Liquidity - Cash and investments increased by $349, totaling $83.3 million as of March 31, 2025, despite cash outflows for share repurchases and dividends[29] - Total current liabilities were $4,324, an increase from $3,757 at the end of 2024, while stockholders' equity decreased slightly to $117.0 million[30] - The current ratio improved to 22.3 as of March 31, 2025, compared to 19.6 a year earlier, indicating strong liquidity[31] Share Repurchase - The company repurchased 54,267 shares at an average price of $59.35 during Q1 2025, with no options awarded in either Q1 2025 or Q1 2024[26] Receivables Management - The aging of receivables improved to 36.6 days at the end of Q1 2025, down from 40.3 days at the end of 2024[29] EBITDA - The trailing twelve-month EBITDA as of March 31, 2025, was $18,957, supporting a target of $18 million for the year 2025[22]
Utah Medical Products: Quietly Profitable--A Deep Value Gem Hiding In The Open
Seeking Alpha· 2025-04-16 14:58
Group 1 - The investment landscape is increasingly competitive, prompting a focus on value investing principles from renowned investors like Benjamin Graham and Warren Buffett [2] - The analysis emphasizes uncovering investment opportunities in overlooked micro-cap and small-cap stocks, which are often neglected by larger investment firms [2] - A fundamental, bottom-up investment approach is adopted, considering factors such as management quality, company incentives, and capital allocation [2] Group 2 - The analyst has over 10 years of experience in the financial sector and aims to present investment opportunities in a clear and comprehensive manner [2] - Engagement with the investment community is encouraged, inviting questions and new ideas [2]
Utah Medical Products(UTMD) - 2024 Q4 - Annual Report
2025-03-26 21:13
Sales and Revenue Performance - UTMD's consolidated sales from four acquisitions comprised 56% of total sales in 2024[16]. - In 2024, UTMD's worldwide revenues decreased by 18.6% to $40.9 million compared to $50.2 million in 2023[145]. - Total global revenues for UTMD in 2024 were $40,903, down 18.5% from $50,224 in 2023, with significant declines in the blood pressure monitoring category[186]. - U.S. domestic sales in 2024 were $23,444, down $4,759 (16.9%) from $28,204 in 2023, with OEM sales declining by $3,857 (45.7%)[173]. - OUS sales in 2024 were $17,458, a decrease of $4,562 (20.7%) compared to $22,020 in 2023, with constant currency OUS sales down 21.2%[179]. - The decline in revenues was primarily attributed to a 64% drop in PendoTECH OEM sales, which fell from $8.6 million in 2023 to $2.7 million in 2024[145]. - The company expects a revenue decrease of approximately $2 million (about 5%) in 2025 compared to 2024, primarily due to declining sales from PendoTECH and ongoing litigation impacts[187]. Profitability and Financial Metrics - Gross profit for 2024 was $24.1 million, down 19.6% from $30.0 million in 2023, resulting in a gross profit margin of 59.0%[145]. - Operating income fell to $13.6 million in 2024, a decrease of 19.0% from $16.8 million in 2023, maintaining an operating income margin of 33.2%[145]. - Net income for 2024 was $13.9 million, down 16.6% from $16.6 million in 2023, with earnings per share (EPS) of $3.961, a decline of 13.4%[145]. - The gross profit margin contracted by 0.8 percentage points to 59.0% in 2024, attributed to increased fixed manufacturing overhead costs amid declining sales[189]. - Management projects consolidated 2025 Operating Income of about $12 million, which is expected to be 11% lower than in 2024 due to a 5% revenue decline and lower GPM[207]. Product Development and Innovation - The company continues to investigate tools that enhance fetal monitoring techniques, indicating ongoing product development efforts[23]. - UTMD's current product development projects include neonatal intensive care and specialized procedures for cervical/uterine disease[88]. - No new products were launched in 2024, but R&D expenses increased due to independent testing for biopharma sensors, with projections for R&D to remain between 1% and 2% of revenues in 2025[200]. Market and Competitive Landscape - The company faces increasing competition from lower-cost manufacturers in Mexico, Eastern Europe, India, and China, impacting its cost-competitiveness[75]. - UTMD's marketing strategy focuses on clinician engagement through clinical meetings and trade shows, but access to U.S. hospital clinicians has become increasingly restricted[73]. Legal and Regulatory Matters - As of March 25, 2025, five lawsuits related to clip migration have been dismissed by summary judgment, with additional motions pending[56]. - Over the last 31 years, there have been no product liability claims filed for any UTMD device, excluding the Filshie Clip System, after distributing over 20 million critical care and surgical devices[115]. - The company believes that increasing regulatory burdens may lead to significant revenue loss and unpredictable costs[120]. Shareholder Returns and Stock Performance - The company has returned $151 million in share repurchases and $86 million in cash dividends to stockholders since 1992[15]. - UTMD repurchased 301,961 shares of its common stock in 2024 for a total cost of $19.968 million, averaging $66.13 per share[140]. - The company paid total cash dividends of $1.2000 per share in 2024, compared to $1.1800 per share in 2023[145]. Operational Efficiency and Workforce - The average tenure of full-time employees at UTMD is 13 years, with 35% having over 25 years of service[89]. - The company operates in 105,000 square feet of facilities in Midvale, Utah, and additional facilities in Ireland, England, Australia, and Canada[134]. Financial Position and Assets - Year-end 2024 total consolidated assets were $122.5 million, down from $135.5 million at the end of 2023, with current assets decreasing by $9.9 million[152]. - Working capital at year-end 2024 was $92.6 million, a 9% decrease from $101.6 million at year-end 2023, primarily due to share repurchases[154]. - The company's current ratio improved to 25.6 at the end of 2024 from 22.6 at the end of 2023, indicating strong liquidity despite a decline in working capital[151].
Utah Medical's EPS Declines 27% Y/Y in Q4, Stock Drops 5%
ZACKS· 2025-01-31 17:51
Core Viewpoint - Utah Medical Products, Inc. (UTMD) experienced a significant decline in earnings and revenues for the fourth quarter and full year of 2024, leading to a drop in stock price despite stable gross profit margins. Financial Performance - For Q4 2024, UTMD reported earnings per share (EPS) of 86 cents, a 27.4% decrease from $1.18 in Q4 2023 [2] - Total revenues for Q4 were $9.2 million, down 25.8% from $12.3 million in the same quarter last year [3] - Net income for Q4 was $2.9 million, a decline of 32.3% from $4.3 million in the previous year [3] - Full-year revenues were $40.9 million, an 18.6% decline from $50.2 million in 2023 [4] - Full-year net income fell 16.6% to $13.9 million from $16.6 million, with EPS dropping 13.4% to $3.96 from $4.57 [4] Key Business Metrics - The gross margin for Q4 was 58.1%, slightly up from 57.6% in the prior-year period, while the full-year gross margin was 59%, down from 59.8% in 2023 [5] - Operating income for Q4 declined 25.7% year over year to $2.9 million, and full-year operating income fell 19% to $13.6 million [5] - Cash and investments totaled $83 million as of Dec. 31, 2024, down from $92.9 million a year earlier [6] Revenue Decline Factors - The revenue decline was attributed to a $5.9 million drop in PendoTECH sales, lower sales to outside-the-U.S. (OUS) distributors, and a 12% decline in worldwide Filshie Clip System device sales [7] - PendoTECH accounted for 64% of the total revenue drop, with a $2.1 million decrease in OUS distributor sales primarily due to reduced shipments to China [8] Management Commentary and Guidance - Management expects total worldwide revenues to decline again in 2025, though at a lower rate than in 2024, with further declines in PendoTECH sales but a slight rebound anticipated in OUS distributor sales and Filshie device revenues [10] Shareholder Returns - During 2024, the company repurchased over 301,000 shares at an average price of $66.13 per share, totaling nearly $20 million [11] - The quarterly dividend was increased to 30.5 cents per share, effective January 2025 [11]