Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Aug. 07, 2014 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'UTAH MEDICAL PRODUCTS INC | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000706698 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 3,739,000 |
Entity Public Float | $171,715,000 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
UTAH_MEDICAL_PRODUCTS_INC_CONS
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $15,939 | $14,395 |
Investments, available-for-sale | 51 | 56 |
Accounts & other receivables - net | 5,447 | 4,335 |
Inventories | 5,301 | 4,704 |
Other current assets | 679 | 796 |
Total current assets | 27,417 | 24,286 |
Property and equipment - net | 8,875 | 8,329 |
Goodwill | 15,918 | 15,649 |
Other intangible assets | 43,269 | 42,002 |
Other intangible assets - accumulated amortization | -11,187 | -9,556 |
Other intangible assets - net | 32,082 | 32,446 |
TOTAL ASSETS | 84,292 | 80,711 |
Current liabilities: | ' | ' |
Accounts payable | 877 | 773 |
Accrued expenses | 3,836 | 2,786 |
Current portion of notes payable | 4,136 | 4,052 |
Total current liabilities | 8,849 | 7,611 |
Notes payable | 3,102 | 5,065 |
Deferred tax liability - intangible assets | 6,414 | 6,510 |
Other long term liabilities | 0 | 0 |
Deferred income taxes | 960 | 944 |
TOTAL LIABILITIES | 19,325 | 20,130 |
Stockholders' equity: | ' | ' |
Preferred stock - $.01 par value; authorized - 5,000 shares; no shares issued or outstanding | ' | ' |
Common stock - $.01 par value; authorized - 50,000 shares; issued - June 30, 2014, 3,742 shares and December 31, 2013, 3,743 shares | 37 | 37 |
Accumulated other comprehensive income | 1,123 | 16 |
Additional paid-in capital | 2,875 | 3,278 |
Retained earnings | 60,932 | 57,250 |
Total stockholders' equity | 64,967 | 60,581 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $84,292 | $80,711 |
UTAH_MEDICAL_PRODUCTS_INC_CONS1
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position | ' | ' |
Preferred Stock, Par Value | $0.01 | $0.01 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Shares Issued | ' | ' |
Preferred Stock, Shares Outstanding | ' | ' |
Common Stock, Par Value | $0.01 | $0.01 |
Common Stock, Shares Authorized | 50,000 | 50,000 |
Common Stock, Shares Issued | 3,742 | 3,743 |
Common Stock, Shares Outstanding | 3,742 | 3,743 |
UTAH_MEDICAL_PRODUCTS_INC_CONS2
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement | ' | ' | ' | ' |
Sales, net | $10,491 | $10,002 | $20,318 | $20,376 |
Cost of goods sold | 4,142 | 3,954 | 7,920 | 8,047 |
Gross profit | 6,349 | 6,048 | 12,399 | 12,329 |
Operating expense: | ' | ' | ' | ' |
Selling, general and administrative | 2,172 | 2,213 | 4,256 | 4,482 |
Research and development | 115 | 120 | 238 | 243 |
Total operating expense | 2,287 | 2,333 | 4,494 | 4,725 |
Operating income | 4,062 | 3,715 | 7,905 | 7,605 |
Other income (expense) | -132 | -89 | -193 | -191 |
Income before provision for income taxes | 3,930 | 3,627 | 7,712 | 7,414 |
Provision for income taxes | 1,096 | 994 | 2,156 | 2,046 |
Net income | 2,834 | 2,632 | 5,556 | 5,368 |
Earnings per common share (basic) | $0.76 | $0.71 | $1.48 | $1.44 |
Earnings per common share (diluted) | $0.75 | $0.70 | $1.47 | $1.43 |
Shares outstanding (basic) | 3,750 | 3,725 | 3,750 | 3,718 |
Shares outstanding (diluted) | 3,775 | 3,770 | 3,778 | 3,764 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation net of taxes of $0 in all periods | 859 | 19 | 1,110 | -2,497 |
Unrealized gain (loss) on investments net of taxes of ($0), $2, ($2) and $4 | 0 | 2 | -3 | 5 |
Total comprehensive income | $3,692 | $2,654 | $6,663 | $2,876 |
UTAH_MEDICAL_PRODUCTS_INC_CONS3
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement | ' | ' | ' | ' |
Foreign currency translation tax adjustment | $0 | $0 | $0 | $0 |
Unrealized gain (loss) on investments tax adjustment | $0 | $2 | ($2) | $4 |
UTAH_MEDICAL_PRODUCTS_INC_CONS4
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOW (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Cash Flows | ' | ' |
Net income | $5,556 | $5,368 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 311 | 308 |
Amortization | 1,376 | 1,273 |
(Gain) loss on investments | 0 | 0 |
Provision for (recovery of) losses on accounts receivable | 6 | -1 |
(Gain)/Loss on disposal of assets | 4 | -1 |
Deferred income taxes | -282 | -357 |
Stock-based compensation expense | 24 | 14 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,016 | -1,350 |
Accrued interest and other receivables | -31 | -128 |
Inventories | -472 | 8 |
Prepaid expenses and other current assets | 118 | 145 |
Accounts payable | 91 | -17 |
Accrued expenses | 75 | 169 |
Deferred revenue | 0 | -50 |
Other liability | 0 | -339 |
Total adjustments | 203 | -326 |
Net cash provided by operating activities | 5,760 | 5,042 |
Capital expenditures for property and equipment | -836 | -111 |
Capital expenditures for intangible assets | 0 | -5 |
Purchases of investments | 0 | 0 |
Proceeds from sale of investments | 0 | 0 |
Net cash provided by (used in) investing activities | -836 | -116 |
Proceeds from issuance of common stock - options | 271 | 490 |
Common stock purchased and retired | -818 | 0 |
Payment of taxes for exchange of stock options | 0 | -90 |
Tax benefit attributable to exercise of stock options | 120 | 199 |
Repayment of notes payable | -2,035 | -1,935 |
Payment of dividends | -938 | -911 |
Net cash provided by (used in) financing activities | -3,401 | -2,246 |
Effect of exchange rate changes on cash | 20 | -164 |
Net increase in cash and cash equivalents | 1,544 | 2,514 |
Cash at beginning of period | 14,395 | 8,871 |
Cash at end of period | 15,939 | 11,385 |
Cash paid during the period for income taxes | 1,551 | 1,634 |
Cash paid during the period for interest | $167 | $235 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Basis of Presentation | ' |
(1) The unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States. These statements should be read in conjunction with the financial statements and notes included in the Utah Medical Products, Inc. ("UTMD" or "the Company") annual report on Form 10 K for the year ended December 31, 2013. In the opinion of management, the accompanying financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. Currency amounts are in thousands except per-share amounts and where noted. | |
Recent Accounting Standards | |
In May 2014, new accounting guidance was issued that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This guidance becomes effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. We are currently assessing the impact that this standard will have on our consolidated financial statements when it is adopted in 2017. | |
Inventories
Inventories | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Notes | ' | |||||
Inventories | ' | |||||
(2) Inventories at June 30, 2014 and December 31, 2013 consisted of the following: | ||||||
30-Jun-14 | 31-Dec-13 | |||||
Finished goods | $ | 1,895 | $ | 1,495 | ||
Work-in-process | 1,075 | 984 | ||||
Raw materials | 2,331 | 2,225 | ||||
Total | $ | 5,301 | $ | 4,704 |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Stock-Based Compensation | ' |
(3) Stock-Based Compensation. At June 30, 2014, the Company has stock-based employee compensation plans which authorize the grant of stock options to eligible employees and directors. The Company accounts for stock compensation under FASB Accounting Standards Codification (“ASC”) 718, Stock Compensation. This statement requires the Company to recognize compensation cost based on the grant date fair value of options granted to employees and directors. In the quarters ended June 30, 2014 and 2013, the Company recognized $18 and $7 , respectively, in stock-based compensation cost. |
Notes_Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Notes Payable | ' |
(4) Notes payable. In March, 2011, UTMD obtained a $14,000 loan from JPMorgan Chase Bank, N.A. (Chase), to help finance the purchase price of Femcare. The terms and conditions of the loan require UTMD to a) repay the loan in equal monthly payments over 5 years, b) pay interest based on the 30-day LIBOR rate plus a margin starting at 2.80% and ranging from 2.00% to 3.75%, depending on the ratio of its funded debt to EBITDA (Leverage Ratio), c) pledge 65% of all foreign subsidiaries’ stock, d) provide first priority liens on all domestic business assets, e) maintain its Interest Coverage Ratio at 1.15 to 1.00 or better, f) maintain its Tangible Net Worth (TNW) above a minimum threshold 20% below TNW at closing on March 18, 2011, and g) maintain its Leverage Ratio at 2.75 to 1.00 or less. UTMD is in compliance with all of the loan financial covenants at June 30, 2014. Based on UTMD’s financial position, the bank’s margin was 2.00% at June 30, 2014. The principal balance on this note at June 30, 2014 was $2,450. | |
In March 2011, the Company also obtained a $12,934 loan from JP Morgan Chase, London Branch, to help finance UTMD’s purchase of Femcare. Terms and conditions of the UK loan are the same as those listed above for the $14,000 U.S. loan. The principal balance on this note at June 30, 2014 was $4,789. |
Warranty_Reserve
Warranty Reserve | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Warranty Reserve | ' |
(5) Warranty Reserve. The Company’s published warranty is: “UTMD warrants its products to conform in all material respects to all published product specifications in effect on the date of shipment, and to be free from defects in material and workmanship for a period of thirty (30) days for supplies, or twenty-four (24) months for equipment, from date of shipment. During the warranty period UTMD shall, at its option, replace any products shown to UTMD's reasonable satisfaction to be defective at no expense to the Purchaser or refund the purchase price.” | |
UTMD maintains a warranty reserve to provide for estimated costs which are likely to occur. The amount of this reserve is adjusted, as required, to reflect its actual experience. Based on its analysis of historical warranty claims and its estimate that existing warranty obligations were immaterial, no warranty reserve was made at December 31, 2013 or June 30, 2014. |
Investments
Investments | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Notes | ' | |||||
Investments | ' | |||||
(6) Investments. Changes in the unrealized holding gain/loss on investment securities available-for-sale and reported as a separate component of accumulated other comprehensive income are as follows: | ||||||
2Q 2014 | 2Q 2013 | |||||
Balance, beginning of period | $ | 5 | $ | 3 | ||
Realized loss from securities included in beginning balance | ~ | ~ | ||||
Gross unrealized holding gains (losses), in equity securities | 0 | 4 | ||||
Deferred income taxes on unrealized holding (gain) loss | 0 | -2 | ||||
Balance, end of period | $ | 5 | $ | 5 |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
(7) Fair Value Measurements. The Company follows ASC 820, Fair Value Measurement to determine fair value of its financial assets. The following table provides financial assets carried at fair value measured as of June 30, 2014: | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Description | Total Fair Value | Quoted Prices | Significant Other | Significant | |||||||||
at 6/30/2014 | in Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||
for Identical Assets | (Level 2) | (Level 3 ) | |||||||||||
(Level 1) | |||||||||||||
Equities | $ | 50 | $ | 50 | $ | 0 | $ | 0 |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Subsequent Events | ' |
(8) Subsequent Events. UTMD has evaluated subsequent events through the date the financial statements were issued, and concluded there were no other events or transactions during this period that required recognition or disclosure in its financial statements. |
Basis_of_Presentation_Recent_A
Basis of Presentation: Recent Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Policies | ' |
Recent Accounting Standards | ' |
Recent Accounting Standards | |
In May 2014, new accounting guidance was issued that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This guidance becomes effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. We are currently assessing the impact that this standard will have on our consolidated financial statements when it is adopted in 2017. |
Inventories_Schedule_of_Invent
Inventories: Schedule of Inventory, Current (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Tables/Schedules | ' | |||||
Schedule of Inventory, Current | ' | |||||
30-Jun-14 | 31-Dec-13 | |||||
Finished goods | $ | 1,895 | $ | 1,495 | ||
Work-in-process | 1,075 | 984 | ||||
Raw materials | 2,331 | 2,225 | ||||
Total | $ | 5,301 | $ | 4,704 |
Investments_Availableforsale_S
Investments: Available-for-sale Securities (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Tables/Schedules | ' | |||||
Available-for-sale Securities | ' | |||||
2Q 2014 | 2Q 2013 | |||||
Balance, beginning of period | $ | 5 | $ | 3 | ||
Realized loss from securities included in beginning balance | ~ | ~ | ||||
Gross unrealized holding gains (losses), in equity securities | 0 | 4 | ||||
Deferred income taxes on unrealized holding (gain) loss | 0 | -2 | ||||
Balance, end of period | $ | 5 | $ | 5 |
Fair_Value_Measurements_Schedu
Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Tables/Schedules | ' | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||
Fair Value Measurements Using | |||||||||||||
Description | Total Fair Value | Quoted Prices | Significant Other | Significant | |||||||||
at 6/30/2014 | in Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||
for Identical Assets | (Level 2) | (Level 3 ) | |||||||||||
(Level 1) | |||||||||||||
Equities | $ | 50 | $ | 50 | $ | 0 | $ | 0 |
Inventories_Schedule_of_Invent1
Inventories: Schedule of Inventory, Current (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Finished goods | $1,895 | $1,495 |
Work-in-process | 1,075 | 984 |
Raw materials | 2,331 | 2,225 |
Total | $5,301 | $4,704 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Details | ' | ' |
Allocated Share-based Compensation Expense | $18 | $7 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
JP Morgan Chase Bank NA (Chase) Note | ' |
Debt Instrument, Description | 'In March, 2011, UTMD obtained a $14,000 loan from JPMorgan Chase Bank, N.A. (Chase), to help finance the purchase price of Femcare. The terms and conditions of the loan require UTMD to a) repay the loan in equal monthly payments over 5 years, b) pay interest based on the 30-day LIBOR rate plus a margin starting at 2.80% and ranging from 2.00% to 3.75%, depending on the ratio of its funded debt to EBITDA (Leverage Ratio), c) pledge 65% of all foreign subsidiaries’ stock, d) provide first priority liens on all domestic business assets, e) maintain its Interest Coverage Ratio at 1.15 to 1.00 or better, f) maintain its Tangible Net Worth (TNW) above a minimum threshold 20% below TNW at closing on March 18, 2011, and g) maintain its Leverage Ratio at 2.75 to 1.00 or less. UTMD is in compliance with all of the loan financial covenants at June 30, 2014. Based on UTMD’s financial position, the bank’s margin was 2.00% at June 30, 2014. The principal balance on this note at June 30, 2014 was $2,450. |
Debt Instrument, Face Amount | $14,000 |
Debt Instrument, Description of Variable Rate Basis | '30-day LIBOR rate plus a margin starting at 2.80% and ranging from 2.00% to 3.75% |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Long-term Debt, Gross | 2,450 |
JP Morgan Chase London Branch Note | ' |
Debt Instrument, Description | 'In March 2011, the Company also obtained a $12,934 loan from JP Morgan Chase, London Branch, to help finance UTMD’s purchase of Femcare. Terms and conditions of the UK loan are the same as those listed above for the $14,000 U.S. loan. The principal balance on this note at June 30, 2014 was $4,789. |
Debt Instrument, Face Amount | 12,934 |
Long-term Debt, Gross | $4,789 |
Investments_Availableforsale_S1
Investments: Available-for-sale Securities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Details | ' | ' |
Available For Sale Securities Gross Unrealized Gain Loss Accumulated ln lnvestments | $5 | $3 |
Realized loss from securities included in beginning balance | ' | ' |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 0 | 4 |
Deferred income taxes on unrealized holding (gain) loss | 0 | -2 |
Available For Sale Securities Gross Unrealized Gain Loss Accumulated ln lnvestments | $5 | $5 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Inputs, Level 1 | ' |
Equities | $50 |
Fair Value, Inputs, Level 2 | ' |
Equities | 0 |
Fair Value, Inputs, Level 3 | ' |
Equities | 0 |
Fair Value, Measurements, Recurring | ' |
Equities | $50 |