
Core Viewpoint - Utah Medical Products, Inc. (UTMD) experienced a significant decline in earnings and revenues for the fourth quarter and full year of 2024, leading to a drop in stock price despite stable gross profit margins. Financial Performance - For Q4 2024, UTMD reported earnings per share (EPS) of 86 cents, a 27.4% decrease from $1.18 in Q4 2023 [2] - Total revenues for Q4 were $9.2 million, down 25.8% from $12.3 million in the same quarter last year [3] - Net income for Q4 was $2.9 million, a decline of 32.3% from $4.3 million in the previous year [3] - Full-year revenues were $40.9 million, an 18.6% decline from $50.2 million in 2023 [4] - Full-year net income fell 16.6% to $13.9 million from $16.6 million, with EPS dropping 13.4% to $3.96 from $4.57 [4] Key Business Metrics - The gross margin for Q4 was 58.1%, slightly up from 57.6% in the prior-year period, while the full-year gross margin was 59%, down from 59.8% in 2023 [5] - Operating income for Q4 declined 25.7% year over year to $2.9 million, and full-year operating income fell 19% to $13.6 million [5] - Cash and investments totaled $83 million as of Dec. 31, 2024, down from $92.9 million a year earlier [6] Revenue Decline Factors - The revenue decline was attributed to a $5.9 million drop in PendoTECH sales, lower sales to outside-the-U.S. (OUS) distributors, and a 12% decline in worldwide Filshie Clip System device sales [7] - PendoTECH accounted for 64% of the total revenue drop, with a $2.1 million decrease in OUS distributor sales primarily due to reduced shipments to China [8] Management Commentary and Guidance - Management expects total worldwide revenues to decline again in 2025, though at a lower rate than in 2024, with further declines in PendoTECH sales but a slight rebound anticipated in OUS distributor sales and Filshie device revenues [10] Shareholder Returns - During 2024, the company repurchased over 301,000 shares at an average price of $66.13 per share, totaling nearly $20 million [11] - The quarterly dividend was increased to 30.5 cents per share, effective January 2025 [11]