Utah Medical Products(US:UTMD)2024-11-12 20:01Financial Performance - Net sales for Q3 2024 were $10,005, a decrease of 20.0% compared to $12,505 in Q3 2023, and for the first nine months of 2024, net sales were $31,745, down 16.2% from $37,891 in the same period of 2023[27]. - Gross profit for Q3 2024 was $5,802, down 21.2% from $7,359 in Q3 2023, and for 9M 2024, gross profit was $18,820, a decrease of 18.0% from $22,940 in 9M 2023[27]. - Operating income for Q3 2024 was $3,343, down 15.8% from $3,969 in Q3 2023, and for 9M 2024, operating income was $10,664, a decrease of 16.9% from $12,833 in 9M 2023[27]. - Earnings per diluted share (EPS) for Q3 2024 were $1.025, down 5.2% from $1.081 in Q3 2023, and for 9M 2024, EPS were $3.098, a decrease of 8.7% from $3.394 in 9M 2023[27]. - Net income in Q3 2024 was $3,563 (35.6% of sales), a decrease of 9.4% from $3,935 (31.5% of sales) in Q3 2023; for 9M 2024, net income was $10,972 (34.6% of sales), down 11.1% from $12,349 (32.6% of sales) in 9M 2023[73]. Sales and Market Trends - Worldwide sales to the major OEM customer, PendoTECH, were $1,704 lower in Q3 2024 compared to Q3 2023, accounting for 73% of the lower year-to-date sales[27]. - Domestic U.S. sales in Q3 2024 were $5,687, a decrease of 21.7% from $7,265 in Q3 2023, with OEM sales down 54.7%[37]. - OUS sales in 9M 2024 decreased by 14.5% to $14,036 million compared to $16,424 million in 9M 2023, with a constant currency decline of 15.2%[44][45]. - In 3Q 2024, WW labor & delivery device sales were down 26%, and blood pressure monitoring and related OEM product sales decreased by 44% compared to 3Q 2023[48]. Profitability and Margins - The gross profit margin for Q3 2024 was 58.0%, slightly down from 58.8% in Q3 2023, while the operating income margin improved to 33.4% from 31.7% in the same period[29]. - Operating expenses as a percentage of sales were 24.6% in 3Q 2024, down from 27.1% in 3Q 2023, indicating improved cost management[54][60]. - Gross profit in 9M 2024 was $4,120 million lower (18.0%) compared to 9M 2023, but margins remained stable due to overhead adjustments[52]. - Consolidated EBT for Q3 2024 was $4,179 (41.8% of sales), down from $4,781 (38.2% of sales) in Q3 2023; for 9M 2024, EBT was $13,188 (41.5% of sales) compared to $15,072 (39.8% of sales) in 9M 2023[67]. Shareholder Returns - The company repurchased shares totaling $13,259 and paid $3,222 in dividends to stockholders during the first nine months of 2024[32]. - Dividends paid in Q3 2024 totaled $1,052 ($0.300/share), compared to $1,071 ($0.295/share) in Q3 2023; for 9M 2024, dividends were $3,222 ($0.300/share) versus $3,211 ($0.295/share) in 9M 2023[81]. - The company repurchased 58,377 shares for $3,866 in Q3 2024, at an average cost of $66.22/share; total shares repurchased in 9M 2024 were 196,592 for $13,259, averaging $67.45/share[79]. - UTMD returned $16,481 to stockholders in 9M 2024 through dividends and share repurchases, a substantial increase from $3,211 in 9M 2023[84]. Cash Flow and Investments - Net cash provided by operating activities in 9M 2024 was $11,894, down 29.9% from $16,949 in 9M 2023, primarily due to a $1,377 decrease in Net Income[82]. - Capital expenditures for property and equipment (PP&E) were $221 in 9M 2024, significantly lower than $549 in 9M 2023, indicating no expansion-related investments[83]. - The company plans to continue investing in new technology and processes, and remain open to acquisition opportunities to enhance revenue and EPS growth[86]. Future Outlook - The company expects a total annual consolidated sales decline of 18% to 19% in 2024 compared to 2023, with WW PendoTECH biopharmaceutical OEM sales projected to be $6 million lower[46]. - Management expects a revenue decline of 18 to 19% for the year 2024, along with a similar decline in Net Income[96]. Balance Sheet and Financial Ratios - Working capital decreased to $98,221 at September 30, 2024, from $101,559 at December 31, 2023, primarily due to a $4,416 decrease in cash[90]. - Total debt ratio improved to 4% as of September 30, 2024, down from 5% at December 31, 2023[92]. - UTMD's total consolidated assets decreased by $5,764 to $129,694 as of September 30, 2024, compared to December 31, 2023[87]. - Annualized ROE in 9M 2024 was 8%, down from 10% in 9M 2023; before dividends, it was 12% compared to 14% in the prior year[80].