Utah Medical Products(UTMD) - 2025 Q4 - Annual Results

Financial Performance - In 2025, UTMD's total consolidated worldwide sales were $38.5 million, a decrease of $2.4 million (5.8%) compared to $40.9 million in 2024[20] - UTMD's net income for 2025 was down 19% year-over-year, with earnings per share (EPS) declining by 12%[4] - The decline in annual revenues was primarily attributed to a $2.3 million (85%) decrease in OEM sales to PendoTECH and a $471,000 (5%) decrease in OUS distributor sales[20] - Operating Income (OI) decreased by $2,192 (16.1%) to $11,402 in 2025, with OI in 4Q 2025 at $2,442, down from $2,930 in 4Q 2024[27] - Consolidated 2025 Income Before Tax (EBT) was $14,110 (36.6% of sales), down from $16,802 (41.1% of sales) in 2024[35] - Adjusted consolidated EBITDA for 2025 was $17,458, a decrease of $2,394 (12.1%) from $19,852 in 2024, with an EBITDA margin of 45.3% compared to 48.5% in 2024[37][38] - Net Income for 2025 was $11,286, a decrease of 18.7% from $13,874 in 2024, representing 29.3% of sales compared to 33.9% in 2024[40] Sales and Revenue - Domestic U.S. sales in 4Q 2025 were $5.5 million, down 4.9% from $5.7 million in 4Q 2024, while OUS sales increased by 4.9% to $3.6 million[14][16] - OUS USD-denominated sales in 2025 were $15,758, a decrease of $1,700 (9.7%) compared to $17,458 in 2024[21] - Domestic U.S. sales in 2025 were $22,761, down $683 (2.9%) from $23,444 in 2024, with domestic Filshie device sales increasing by $436 (10.8%)[24] - The company experienced a $431,000 revenue loss due to the cancellation of a non-changeable order from its China distributor for blood pressure monitoring kits[6] Profitability Metrics - The gross profit margin for 4Q 2025 was 58.2%, consistent with 4Q 2024, while the operating income margin decreased to 27.0% from 32.0% in 4Q 2024[4] - Gross Profit (GP) for 2025 was $21,142, which is $2,142 (8.9%) lower than in 2024, resulting in a GP margin of 57.1% compared to 59.0% in 2024[26] - Total Operating Expenses (OE) for 2025 were $10,599, representing 27.5% of sales, compared to 25.8% in 2024[28] Shareholder Information - UTMD's stockholders' equity increased by $1.8 million in 2025, despite share repurchases and dividends totaling $12.3 million[12] - The company repurchased 148,935 shares in 2025 at an average cost of $56.10 per share, compared to 301,961 shares repurchased in 2024 at an average cost of $66.13 per share[46] - Outstanding shares at the end of 2025 were 3,186,221, a decline of 4.5% from 3,335,156 at the end of 2024 due to share repurchases[42] - Dividends paid in 2025 totaled $3,983 ($1.22/share), down from $4,260 ($1.20/share) in 2024, despite an increase in dividends per share[45] - The company's stock price at the end of 2025 was $55.96, a decrease of 9.0% from $61.47 at the end of 2024, marking three consecutive years of stock price decline[47] Cash and Investments - UTMD's cash and investments increased to $85.8 million at the end of 2025, up from $83.0 million at the end of 2024, despite $4.0 million in dividends and $8.4 million in share repurchases[12] - Total cash and investments at the end of 2025 were $85.8 million, an increase of $2.8 million from $82.976 million at the end of 2024[48] Future Outlook - Looking ahead to 2026, OEM sales to PendoTech and blood pressure monitoring kits to China are expected to be zero, with plans to offset losses through new product sales and modest growth in organic business[25] Currency Impact - The foreign currency exchange rates positively impacted 4Q 2025 sales, contributing an additional $153,000 due to stronger GBP and EUR[14][17] - The combined weighted-average favorable FX impact on 2025 foreign currency OUS sales was 3.6%, increasing reported USD sales by $397 relative to 2024[23] Other Expenses - Operating expenses remained stable year-over-year, but unusual G&A expenses included a $395,000 write-off related to the China distributor and a $195,000 loss from embezzlement[10] - Net Intangible Assets decreased by $1.6 million to 12.2% of total consolidated assets from 13.4% in 2024[48] - The current ratio as of December 31, 2025, was 37.6, indicating strong liquidity[49]