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Utah Medical Products: A Prudent Downgrade (NASDAQ:UTMD)
Seeking Alpha· 2025-10-06 13:35
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Utah Medical Products(UTMD) - 2025 Q2 - Quarterly Report
2025-08-12 19:51
[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated condensed financial statements and management's discussion for Utah Medical Products, Inc [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents UTMD's unaudited consolidated condensed financial statements, covering balance sheets, income, cash flow, and equity statements [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Details UTMD's financial position, presenting assets, liabilities, and stockholders' equity at reporting dates | (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Total current assets | $94,375 | $96,330 | | Property and equipment, net | $10,257 | $9,763 | | Goodwill | $14,193 | $13,580 | | Other intangible assets, net | $1,977 | $2,865 | | **Total assets** | **$120,802** | **$122,538** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $2,254 | $3,757 | | Total liabilities | $3,269 | $5,111 | | Total stockholders' equity | $117,533 | $117,427 | | **Total liabilities and stockholders' equity** | **$120,802** | **$122,538** | - Total assets decreased by **$1,736 thousand** from December 31, 2024, to June 30, 2025, primarily due to decreases in current assets[8](index=8&type=chunk)[88](index=88&type=chunk) - Total liabilities decreased by **$1,842 thousand**, driven by a **$1,502 thousand** reduction in current liabilities and a **$339 thousand** reduction in long-term liabilities[8](index=8&type=chunk)[92](index=92&type=chunk) [Consolidated Condensed Statements of Income](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) Outlines UTMD's financial performance over specific periods, detailing revenues, expenses, and net income | (in thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales, net | $9,953 | $10,400 | $19,663 | $21,740 | | Gross profit | $5,595 | $6,253 | $11,133 | $13,018 | | Operating income | $3,196 | $3,438 | $6,349 | $7,321 | | Income before provision for income taxes | $3,836 | $4,211 | $7,694 | $9,010 | | Net income | $3,048 | $3,453 | $6,089 | $7,409 | | Earnings per common share (basic) | $0.94 | $0.98 | $1.86 | $2.07 | | Earnings per common share (diluted) | $0.94 | $0.98 | $1.86 | $2.07 | - Net sales decreased by **4.3%** in Q2 2025 and **9.6%** in 1H 2025 compared to the same periods in 2024[9](index=9&type=chunk)[24](index=24&type=chunk) - Net income decreased by **11.7%** in Q2 2025 and **17.8%** in 1H 2025 year-over-year[9](index=9&type=chunk)[24](index=24&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Reports UTMD's cash inflows and outflows from operating, investing, and financing activities | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $7,337 | $8,038 | | Net cash used in investing activities | $(235) | $(110) | | Net cash used in financing activities | $(8,726) | $(11,173) | | Net increase in cash and cash equivalents | $(797) | $(3,649) | | Cash at end of period | $82,179 | $89,219 | - Net cash provided by operating activities decreased by **$701 thousand** in 1H 2025 compared to 1H 2024, primarily due to lower net income and increased use of cash to decrease accrued expenses[10](index=10&type=chunk)[81](index=81&type=chunk) - Cash and investments decreased by **$797 thousand** in 1H 2025, after paying **$2.0 million** in dividends and repurchasing **$6.7 million** of common stock[10](index=10&type=chunk)[28](index=28&type=chunk)[87](index=87&type=chunk) [Consolidated Condensed Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders'%20Equity) Details changes in UTMD's stockholders' equity, including common stock, retained earnings, and comprehensive income | (in thousands) | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :----------------------------------- | :---------------------- | :----------------------- | | Common Stock (Shares) | 3,335 | 3,216 | | Common Stock (Amount) | $33 | $32 | | Accumulated Other Comprehensive Loss | $(11,908) | $(9,362) | | Retained Earnings | $129,302 | $126,862 | | Total Stockholders' Equity | $117,427 | $117,533 | - Total stockholders' equity increased slightly from **$117,427 thousand** at December 31, 2024, to **$117,533 thousand** at June 30, 2025, despite common stock repurchases and dividend payments[12](index=12&type=chunk) - The company repurchased **119,255 shares** of common stock in 1H 2025 for **$6,708 thousand**[12](index=12&type=chunk)[76](index=76&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Provides additional information and disclosures relevant to the consolidated condensed financial statements - The company is evaluating the impact of new FASB ASUs 2023-09 (Income Taxes) and 2024-03 (Income Statement Expenses), effective for fiscal years beginning after December 15, 2024, and December 15, 2026, respectively[14](index=14&type=chunk)[15](index=15&type=chunk) Inventories (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Finished goods | $971 | $1,913 | | Work-in-process | $1,407 | $1,414 | | Raw materials | $5,855 | $5,485 | | Total | $8,233 | $8,812 | - Stock-based compensation expense was **$86 thousand** in Q2 2025 and **$168 thousand** in 1H 2025, compared to **$52 thousand** and **$131 thousand** in the respective prior year periods[16](index=16&type=chunk) - No warranty reserve was made at December 31, 2024, or June 30, 2025, as existing warranty obligations were deemed immaterial[16](index=16&type=chunk) Global Revenues by Product Category (in thousands) | Product Category | 2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Obstetrics | $1,025 | $1,019 | $2,050 | $2,044 | | Gynecology/Electrosurgery/Urology | $4,807 | $5,452 | $9,703 | $10,912 | | Neonatal | $2,102 | $1,546 | $4,084 | $3,188 | | Blood Pressure Monitoring and Accessories | $2,019 | $2,383 | $3,826 | $5,596 | | Total | $9,953 | $10,400 | $19,663 | $21,740 | - The company operates as a single operating segment, with the CEO reviewing consolidated gross profit margin, operating margin, and net income to assess performance and allocate resources[20](index=20&type=chunk) - After June 30, 2025, through August 11, 2025, UTMD repurchased an additional **10,178 shares** for
UTMD's Q2 Earnings Slip Y/Y Due to Falling OEM Sales, Stock Down 3%
ZACKS· 2025-07-30 18:01
Core Insights - Utah Medical Products, Inc. (UTMD) experienced a 3% decline in share price following its earnings report for Q2 2025, contrasting with a 0.6% increase in the S&P 500 index during the same period [1] - The company reported earnings per share (EPS) of 94 cents, a 4% decrease from 98 cents in Q2 2024 [1] Financial Performance - Net sales were $10 million, down 4.3% from $10.4 million in the same quarter last year [2] - Income before tax decreased by 8.9% to $3.8 million, while net income fell 11.7% to $3.1 million compared to $3.5 million in Q2 2024 [2] Sales Trends - Domestic sales increased by 0.6% to $5.9 million, driven by a 10% rise in direct non-Filshie device sales and an 8% increase in Filshie device sales [3] - However, OEM domestic sales plummeted by 38% due to a significant drop in PendoTECH orders [3] - International sales dropped 10.5% to $4.1 million, with direct sales by subsidiaries falling 15.8% [4] Profitability Metrics - Gross profit margin contracted to 56.2% from 60.1% a year earlier, with gross profit declining 10.5% to $5.6 million [5] - Operating income fell 7.1% to $3.2 million, and the operating margin decreased to 32.1% from 33.1% [5] - Net income margin narrowed to 30.6% from 33.2%, influenced by a higher effective tax rate of 20.5% compared to 18% in the previous year [6] Expense Management - Total operating expenses decreased by 14.8% to $2.4 million, with general and administrative expenses dropping 13.6% to $1.7 million [7] - R&D spending saw a significant decline of 47.1% to $0.1 million following the completion of biopharma sensor validation [7] Capital Allocation - The company repurchased 64,988 shares at an average price of $53.67 and paid $1 million in dividends, which accounted for 33% of net income [8] - Cash and investments at the end of the quarter totaled $82.2 million, slightly down from $83 million at the end of 2024 [8] Management Insights - Management attributed revenue decline to the expected drop in PendoTECH sales but highlighted the strength of core direct sales, particularly in the U.S. [9] - Full-year 2025 results are expected to reflect continued weakness in PendoTECH sales, projected to be about $2 million lower than in 2024 [10] - The current trailing twelve-month (TTM) EBITDA stands at $18.6 million, with a target range of $16 million to $18 million for the year [10]
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]