Utah Medical Products(UTMD) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION This section presents the unaudited consolidated condensed financial statements and management's discussion for Utah Medical Products, Inc Item 1. Financial Statements Presents UTMD's unaudited consolidated condensed financial statements, covering balance sheets, income, cash flow, and equity statements Consolidated Condensed Balance Sheets 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][88] - 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][92] Consolidated Condensed Statements of Income 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][24] - Net income decreased by 11.7% in Q2 2025 and 17.8% in 1H 2025 year-over-year[9][24] Consolidated Condensed Statements of Cash Flows 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][81] - 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][28][87] Consolidated Condensed Statements of Stockholders' Equity 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] - The company repurchased 119,255 shares of common stock in 1H 2025 for $6,708 thousand[12][76] Notes to Consolidated Condensed Financial Statements 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][15] 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] - No warranty reserve was made at December 31, 2024, or June 30, 2025, as existing warranty obligations were deemed immaterial[16] 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] - After June 30, 2025, through August 11, 2025, UTMD repurchased an additional 10,178 shares for