Utah Medical Products(US:UTMD)2025-10-23 19:07Revenue Performance - UTMD's 3Q 2025 revenues decreased by 2% compared to 3Q 2024, with a total revenue loss of $581, attributed to foreign trade uncertainties and order cancellations [4][5][6]. - Total consolidated sales for 9M 2025 were $2,271 million, a decrease of 7.2% compared to 9M 2024 [20]. - U.S. domestic sales in 9M 2025 were $17,308 million, down 2.3% from $17,709 million in 9M 2024 [21]. - OUS sales in 9M 2025 were $12,167 million, representing a 13.3% decline from $14,036 million in 9M 2024 [22]. - Sales to UTMD's China distributor were $395 in 3Q 2025, significantly lower than $781 in 3Q 2024, contributing to a negative sales trend [7][8]. - Domestic U.S. sales increased by 3.0% in 3Q 2025, reaching $5,859, despite a decline in sales to PendoTECH [17]. Profitability Metrics - Gross profit margin for 3Q 2025 was 57.1%, down from 58.0% in 3Q 2024, reflecting higher manufacturing overhead costs and lower sales absorption [9][10]. - Operating income in 3Q 2025 fell by 22% year-over-year, leading to a 26% decline in net income [4][12]. - Earnings per share (EPS) in 3Q 2025 were 20% lower than in 3Q 2024, reflecting a 26% decrease in net income [13]. - Gross profit in 9M 2025 was $2,083 million, an 11.1% decrease compared to 9M 2024 [25]. - Operating income in 9M 2025 was $8,961 million, down 16.0% from $10,664 million in 9M 2024 [26]. - Net Income in 3Q 2025 was $2,631 (26.8% of sales), a 26.2% decrease from $3,563 (35.6% of sales) in 3Q 2024; for 9M 2025, Net Income was $8,720 (29.6% of sales), down 20.5% from $10,972 (34.6% of sales) in 9M 2024 [40]. Expenses and Costs - Total operating expenses for 3Q 2025 were $2,073, representing 21.1% of revenues, up from 15.2% in 3Q 2024 [10]. - Adjusted consolidated EBITDA for 3Q 2025 was $4,170 million, a decrease of 15.9% compared to $4,958 million in 3Q 2024 [36]. - Adjusted consolidated EBITDA for 9M 2025 was $13,493, a decrease of 12.7% from $15,447 in 9M 2024, with a projected range of $17 to $18 million for the entire 2025 calendar year [37]. - Adjusted consolidated EBITDA as a percentage of sales was 42.5% in 3Q 2025, down from 49.6% in 3Q 2024, and 45.8% in 9M 2025 compared to 48.7% in 9M 2024 [38]. Balance Sheet and Cash Flow - The balance sheet showed a stronger position with lower total liabilities and higher stockholders' equity as of September 30, 2025 [14]. - Cash and investments increased to $84,267 at September 30, 2025, despite using $7,361 for share repurchases and paying $3,006 in dividends [47]. - The current ratio improved as current liabilities declined by 20% while current assets remained stable [47]. - Total shares repurchased in 9M 2025 were 130,984 for $7,362, representing 3.9% of shares outstanding at the end of 2024 [45]. Market and Share Performance - The closing share price at the end of 3Q 2025 was $62.97, reflecting a 10.6% increase from $56.92 at the end of 2Q 2025 [46]. - The average exercise price of unexercised employee options was $73.75, higher than the market price, resulting in no dilution for 3Q 2025 [44]. Foreign Currency Impact - Foreign currency sales accounted for 29% of total consolidated sales in 3Q 2025, with a favorable impact from stronger EUR and GBP [9][18]. - The weighted-average favorable impact on 9M 2025 consolidated sales from foreign currency exchange rates was 0.8%, adding $244 million to reported sales [22]. Taxation - The company has consistently paid millions in income taxes annually, with the basic corporate income tax rates unchanged from 2024 [41].