Utah Medical Products(US:UTMD)2024-10-29 18:47Sales Performance - In Q3 2024, total worldwide consolidated sales were $2,500 (20.0%) lower than in Q3 2023, and for the first nine months (9M) of 2024, sales were $6,146 (16.2%) lower compared to 9M 2023[2][9]. - Domestic U.S. sales in Q3 2024 were $5,687, down 21.7% from $7,265 in Q3 2023, while for 9M 2024, domestic sales were $17,709, down 17.5% from $21,467 in 9M 2023[7][10]. - Sales to the major OEM customer, PendoTECH, were $1,704 lower in Q3 2024 and $4,483 lower in 9M 2024, accounting for 73% of the year-to-date sales decline[2]. - In 9M 2024, the company reported a 15.2% decline in OUS sales in constant currency terms compared to 9M 2023, with total consolidated sales expected to decline by 18% to 19% in 2024[12]. - Sales to OUS distributors/OEM customers were 8.5% lower in 9M 2024 compared to 9M 2023, indicating challenges in the distribution segment[12]. Profitability Metrics - Gross Profit (GP) margin in Q3 2024 was 58.0%, down from 58.8% in Q3 2023, while for 9M 2024, it was 59.3%, down from 60.5% in 9M 2023[3][4]. - Gross Profit (GP) in 9M 2024 was $4,120 (18.0%) lower than in 9M 2023, with GP margins remaining relatively stable due to overhead adjustments[13]. - Operating Income (OI) margin for Q3 2024 was 33.4%, compared to 31.7% in Q3 2023, and for 9M 2024, it was 41.8%, up from 39.8% in 9M 2023[3][5]. - Operating Income (OI) in 9M 2024 was $10,664, reflecting a decline of $2,169 (16.9%) compared to 9M 2023, primarily due to increased operating expenses[14]. - Total Operating Expenses (OE) in 9M 2024 were $8,156, representing 25.7% of sales, compared to $10,107 (26.7%) in 9M 2023[15]. Net Income and Earnings Per Share - Net Income (NI) in Q3 2024 decreased by 9% and by 11% in 9M 2024 compared to the respective periods in 2023[2]. - Net Income (NI) in 9M 2024 was $10,972, an 11.1% decrease from $12,349 in 9M 2023, with a net income margin of 34.6%[18]. - Earnings Per Share (EPS) in Q3 2024 were only 5% lower despite a 20% drop in revenues, and for 9M 2024, EPS were 9% lower with a 16% decline in revenues[5]. - Diluted Earnings per Share (EPS) in 9M 2024 were $3.098, down 8.7% from $3.394 in 9M 2023, with diluted shares decreasing to 3,477,797[19]. Expenses and Litigation - The company reported that ongoing litigation expenses related to Filshie product liability claims were 4.26% of revenues in Q3 2024, compared to 2.78% in Q3 2023[5]. - The company maintained S&M expenses in 9M 2024 at $1,395, a $186 increase from 9M 2023, primarily due to salary increases and additional sales personnel[15]. Cash Flow and Shareholder Returns - The company's cash and investments decreased by $4,416 to $88,452 as of September 30, 2024, primarily due to share repurchases and dividends[23]. - Total shares repurchased in 9M 2024 were 196,592 for $13,259, representing about 5.4% of shares outstanding at the end of 2023[22]. - The balance sheet remained strong with a higher current ratio and lower total liabilities despite lower sales and earnings, with $3,222 paid in dividends and $13,259 used for share repurchases in 9M 2024[5]. Market and Currency Impact - Foreign currency sales represented 35% of total worldwide consolidated Q3 2024 sales, with a favorable FX rate impact increasing reported USD sales by $96 compared to Q3 2023[2][8]. EBITDA and Future Expectations - Adjusted consolidated EBITDA for 3Q 2024 was $4,958, down 25% from $6,604 in 3Q 2023[20]. - Adjusted consolidated EBITDA as a percentage of sales was 49.6% in 3Q 2024, down from 52.8% in 3Q 2023[20]. - The company expects adjusted consolidated EBITDA for the entire 2024 calendar year to be in the range of $19 to $20 million[20]. - The company expects WW PendoTECH biopharmaceutical OEM sales to be $6 million lower in 2024 than in 2023, representing less than 7% of total consolidated sales[12]. Stock Performance - The closing share price at the end of 3Q 2024 was $66.91, a 20.6% decrease from $84.22 at the end of 2023[22].