Utah Medical Products (UTMD) 10-Q 12 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 11, 2021
Details
Entity Registrant Name	UTAH MEDICAL PRODUCTS INC
Entity Central Index Key	0000706698
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--12-31
Trading Symbol	UTMD
Entity Tax Identification Number	87-0342734
Entity Common Stock, Shares Outstanding		3,650,929
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-12575
Entity Incorporation, State or Country Code	UT
Entity Address, Address Line One	7043 South 300 West
Entity Address, City or Town	Midvale
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84047
City Area Code	801
Local Phone Number	566-1200
Title of 12(b) Security	Common stock, $0.01 par value
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

UTAH MEDICAL PRODUCTS, INC. CON

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash & investments	$ 64,321	$ 51,590
Accounts & other receivables, net	4,853	4,104
Inventories	6,299	6,222
Other current assets	373	346
Total current assets	75,846	62,262
Property and equipment, net	10,547	10,949
Operating lease - right-of-use assets, net	384	377
Goodwill	14,064	14,164
Other intangible assets	55,701	56,159
Other intangible assets - accumulated amortization	(36,790)	(32,166)
Other intangible assets, net	18,911	23,993
Total assets	119,752	111,745
Current liabilities:
Accounts payable	1,026	788
Accrued expenses	3,989	3,003
Total current liabilities	5,015	3,791
Deferred tax liability - Femcare IIA	1,810	2,151
Other long term liabilities	2,196	1,995
Operating lease liability	343	335
Deferred income taxes	408	651
Total liabilities	9,772	8,923
Stockholders' equity:
Common stock - $.01 par value; authorized - 50,000 shares; issued - September 30, 2021, 3,649 shares and December 31, 2020, 3,643 shares	36	36
Accumulated other comprehensive income (loss)	(9,068)	(8,281)
Additional paid-in capital	520	115
Retained earnings	118,492	110,952
Total stockholders' equity	109,980	102,822
Total liabilities and stockholders' equity	$ 119,752	$ 111,745

UTAH MEDICAL PRODUCTS, INC. C_2

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - Parenthetical - $ / shares shares in Thousands	Sep. 30, 2021	Dec. 31, 2020
Details
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	50,000	50,000
Common Stock, Shares, Issued	3,649	3,643
Common Stock, Shares, Outstanding	3,649	3,643

UTAH MEDICAL PRODUCTS, INC. C_3

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Details
Sales, net	$ 12,572	$ 10,479	$ 36,140	$ 30,168
Cost of goods sold	4,499	3,982	13,336	11,885
Gross profit	8,073	6,497	22,804	18,283
Operating expense
Selling, general and administrative	2,848	2,785	8,669	8,480
Research & development	127	125	385	375
Total operating expenses	2,975	2,910	9,054	8,855
Operating income	5,098	3,587	13,750	9,428
Other income	59	1	130	125
Income before provision for income taxes	5,157	3,588	13,880	9,553
Provision for income taxes	951	655	3,224	2,167
Net income	$ 4,206	$ 2,933	$ 10,656	$ 7,386
Earnings per common share (basic)	$ 1.15	$ 0.81	$ 2.92	$ 2.02
Earnings per common share (diluted)	$ 1.15	$ 0.80	$ 2.91	$ 2.01
Shares outstanding - basic	3,647	3,642	3,645	3,664
Shares outstanding - diluted	3,658	3,653	3,656	3,678
Other comprehensive income (loss):
Foreign currency translation net of taxes of $0 in all periods	$ (782)	$ 1,511	$ (787)	$ (416)
Total comprehensive income	$ 3,424	$ 4,444	$ 9,869	$ 6,970

UTAH MEDICAL PRODUCTS, INC. C_4

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME - Parenthetical - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Details
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	$ 0	$ 0	$ 0	$ 0

UTAH MEDICAL PRODUCTS, INC. C_5

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Comprehensive Income	Retained Earnings	Total
Equity Balance, value at Dec. 31, 2019	$ 37	$ 18	$ (9,783)	$ 110,820	$ 101,092
Equity Balance, shares at Dec. 31, 2019	3,722
Common stock issued upon exercise of employee stock options	$ 0	282	0	0	282
Common stock issued upon exercise of employee stock options, shares	6
Stock option compensation expense	$ 0	121	0	0	121
Common stock purchased and retired	$ (1)	(421)	0	(6,555)	(6,976)
Common stock purchased and retired, shares	(87)
Foreign currency translation adjustment	$ 0	0	(416)	0	(416)
Common stock dividends	0	0	0	(3,074)	(3,074)
Net income	0	0	0	7,386	7,386
Equity Balance, value at Sep. 30, 2020	$ 36	0	(10,199)	108,578	98,415
Equity Balance, shares at Sep. 30, 2020	3,640
Equity Balance, value at Jun. 30, 2020	$ 36	80	(11,710)	106,881	95,288
Equity Balance, shares at Jun. 30, 2020	3,643
Common stock issued upon exercise of employee stock options	$ 0	202	0	0	202
Common stock issued upon exercise of employee stock options, shares	4
Stock option compensation expense	$ 0	49	0	0	49
Common stock purchased and retired	$ 0	(332)	0	(219)	(551)
Common stock purchased and retired, shares	(7)
Foreign currency translation adjustment	$ 0	0	1,511	0	1,511
Common stock dividends	0	0	0	(1,018)	(1,018)
Net income	0	0	0	2,933	2,933
Equity Balance, value at Sep. 30, 2020	$ 36	0	(10,199)	108,578	98,415
Equity Balance, shares at Sep. 30, 2020	3,640
Equity Balance, value at Dec. 31, 2020	$ 36	115	(8,281)	110,951	102,822
Equity Balance, shares at Dec. 31, 2020	3,643
Common stock issued upon exercise of employee stock options	$ 0	281	0	0	281
Common stock issued upon exercise of employee stock options, shares	6
Stock option compensation expense	$ 0	123	0	0	123
Foreign currency translation adjustment	0	0	(787)	0	(787)
Common stock dividends	0	0	0	(3,116)	(3,116)
Net income	0	0	0	10,656	10,656
Equity Balance, value at Sep. 30, 2021	$ 36	520	(9,068)	118,492	109,980
Equity Balance, shares at Sep. 30, 2021	3,649
Equity Balance, value at Jun. 30, 2021	$ 36	289	(8,286)	115,326	107,365
Equity Balance, shares at Jun. 30, 2021	3,646
Common stock issued upon exercise of employee stock options	$ 0	189	0	0	189
Common stock issued upon exercise of employee stock options, shares	3
Stock option compensation expense	$ 0	41	0	0	41
Foreign currency translation adjustment	0	0	(782)	0	(782)
Common stock dividends	0	0	0	(1,040)	(1,040)
Net income	0	0	0	4,206	4,206
Equity Balance, value at Sep. 30, 2021	$ 36	$ 520	$ (9,068)	$ 118,492	$ 109,980
Equity Balance, shares at Sep. 30, 2021	3,649

UTAH MEDICAL PRODUCTS, INC. C_6

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOW - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,656	$ 7,386
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	483	495
Amortization	4,996	4,875
Provision for (recovery of) losses on accounts receivable	20	(4)
Amortization of Right of Use Assets	32	29
(Gain) loss on disposal of assets	0	1
Deferred income taxes	(160)	(20)
Stock-based compensation expense	123	121
Tax benefit attributable to exercise of stock options	11	7
Changes in operating assets and liabilities:
Accounts receivable and other receivables	(802)	442
Inventories	(161)	757
Prepaid expenses and other current assets	(35)	58
Accounts payable	242	(439)
Accrued expenses	811	651
Total adjustments	5,560	6,973
Net cash provided by operating activities	16,216	14,359
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment	(299)	(806)
Net cash used in investing activities	(299)	(806)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock - options	281	282
Common stock purchased and retired	0	(6,977)
Payment of dividends	(3,116)	(3,097)
Net cash used in financing activities	(2,835)	(9,792)
Effect of exchange rate changes on cash	(351)	(254)
Net increase in cash and cash equivalents	12,731	3,507
Cash at beginning of period	51,590	42,787
Cash at end of period	64,321	46,294
Cash paid during the period for income taxes	3,094	2,153
Cash paid during the period for interest	$ 0	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2021
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, 2020. 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.

New Accounting Pronouncements a

New Accounting Pronouncements and Changes in Accounting Principles	9 Months Ended
	Sep. 30, 2021
Notes
New Accounting Pronouncements and Changes in Accounting Principles	(2) Recent Accounting Standards. The Company has determined that other recently issued accounting standards will either have no material impact on its consolidated financial position, results of operations or cash flows, or will not apply to its operations.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2021
Notes
Inventories	(3) Inventories at September 30, 2021, and December 31, 2020, consisted of the following: September 30, 2021 December 31, 2020 Finished goods $ 1,436 $ 1,363 Work-in-process 1,459 1,375 Raw materials 3,404 3,484 Total $ 6,299 $ 6,222

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2021
Notes
Stock-Based Compensation	(4) Stock-Based Compensation. At September 30, 2021, 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, Compensation - Stock Compensation

Warranty Reserve

Warranty Reserve	9 Months Ended
	Sep. 30, 2021
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, 2020, or September 30, 2021.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2021
Notes
Revenue Recognition	(6) Global 3Q 2021 revenues (USD) by product category: Domestic Outside US Total Obstetrics $ 1,014 $ 232 $ 1,246 Gynecology/Electrosurgery/Urology 2,743 2,815 5,558 Neonatal 1,336 312 1,648 Blood Pressure Monitoring and Accessories 2,656 1,464 4,120 Total $ 7,749 $ 4,823 $ 12,572 Global 9M 2021 revenues (USD) by product category: Domestic Outside US Total Obstetrics $ 2,864 $ 559 $ 3,423 Gynecology/Electrosurgery/Urology 8,229 8,130 16,359 Neonatal 3,813 1,064 4,877 Blood Pressure Monitoring and Accessories 7,649 3,832 11,481 Total $ 22,555 $ 13,585 $ 36,140

CSI Distribution Agreement Purc

CSI Distribution Agreement Purchase Disclosure	9 Months Ended
	Sep. 30, 2021
Notes
CSI Distribution Agreement Purchase Disclosure	(7) Distribution Agreement Purchase. UTMD completed the purchase of exclusive U.S. distribution rights for the Filshie Clip System from CooperSurgical, Inc. (CSI) on February 1, 2019. The $21,000 purchase price represented an identifiable intangible asset which is being straight-line amortized and recognized as part of G&A expenses over a remaining 2.08 year life as of September 30, 2021 of the prior CSI distribution agreement with Femcare.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2021
Notes
Earnings Per Share	(8) Earnings Per Share. Basic earnings per share is calculated by dividing net income attributable to the common stockholders of the company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by assuming the exercise of stock options at the closing price of stock at the end of 3rd quarter 2021. The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: ( in thousands Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Numerator Net income 4,206 2,933 10,656 7,386 Denominator Weighted average shares, basic 3,647 3,642 3,645 3,664 Dilutive effect of stock options 11 11 11 14 Diluted shares 3,658 3,653 3,656 3,678 Earnings per share, basic 1.15 0.81 2.92 2.02 Earnings per share, diluted 1.15 0.80 2.91 2.01

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Notes
Subsequent Events	(9) Subsequent Events.

New Accounting Pronouncements_2

New Accounting Pronouncements and Changes in Accounting Principles: New Accounting Pronouncements, Policy (Policies)	9 Months Ended
	Sep. 30, 2021
Policies
New Accounting Pronouncements, Policy	The Company has determined that other recently issued accounting standards will either have no material impact on its consolidated financial position, results of operations or cash flows, or will not apply to its operations.

Inventories_ Schedule of Invent

Inventories: Schedule of Inventory, Current (Tables)	9 Months Ended
	Sep. 30, 2021
Tables/Schedules
Schedule of Inventory, Current	September 30, 2021 December 31, 2020 Finished goods $ 1,436 $ 1,363 Work-in-process 1,459 1,375 Raw materials 3,404 3,484 Total $ 6,299 $ 6,222

Revenue Recognition_ Schedule O

Revenue Recognition: Schedule Of Revenues By Product Category (Tables)	9 Months Ended
	Sep. 30, 2021
Tables/Schedules
Schedule Of Revenues By Product Category	Domestic Outside US Total Obstetrics $ 1,014 $ 232 $ 1,246 Gynecology/Electrosurgery/Urology 2,743 2,815 5,558 Neonatal 1,336 312 1,648 Blood Pressure Monitoring and Accessories 2,656 1,464 4,120 Total $ 7,749 $ 4,823 $ 12,572 Global 9M 2021 revenues (USD) by product category: Domestic Outside US Total Obstetrics $ 2,864 $ 559 $ 3,423 Gynecology/Electrosurgery/Urology 8,229 8,130 16,359 Neonatal 3,813 1,064 4,877 Blood Pressure Monitoring and Accessories 7,649 3,832 11,481 Total $ 22,555 $ 13,585 $ 36,140

Earnings Per Share_ Schedule of

Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	9 Months Ended
	Sep. 30, 2021
Tables/Schedules
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: ( in thousands Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Numerator Net income 4,206 2,933 10,656 7,386 Denominator Weighted average shares, basic 3,647 3,642 3,645 3,664 Dilutive effect of stock options 11 11 11 14 Diluted shares 3,658 3,653 3,656 3,678 Earnings per share, basic 1.15 0.81 2.92 2.02 Earnings per share, diluted 1.15 0.80 2.91 2.01

Inventories_ Schedule of Inve_2

Inventories: Schedule of Inventory, Current (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Details
Finished goods	$ 1,436	$ 1,363
Work-in-process	1,459	1,375
Raw materials	3,404	3,484
Total	$ 6,299	$ 6,222

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Details
Allocated Share-based Compensation Expense	$ 41	$ 49	$ 123	$ 121

Warranty Reserve (Details)

Warranty Reserve (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Details
Standard and Extended Product Warranty Accrual	$ 0	$ 0

Revenue Recognition_ Schedule_2

Revenue Recognition: Schedule Of Revenues By Product Category (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Sales, net	$ 12,572	$ 10,479	$ 36,140	$ 30,168
Obstetrics
Sales, net	1,246		3,423
Gynecology/Electrosurgery/Urology
Sales, net	5,558		16,359
Neonatal
Sales, net	1,648		4,877
Blood Pressure Monitoring and Accessories
Sales, net	4,120		11,481
DomesticUsMember
Sales, net	7,749		22,555
DomesticUsMember | Obstetrics
Sales, net	1,014		2,864
DomesticUsMember | Gynecology/Electrosurgery/Urology
Sales, net	2,743		8,229
DomesticUsMember | Neonatal
Sales, net	1,336		3,813
DomesticUsMember | Blood Pressure Monitoring and Accessories
Sales, net	2,656		7,649
OutsideUsMember
Sales, net	4,823		13,585
OutsideUsMember | Obstetrics
Sales, net	232		559
OutsideUsMember | Gynecology/Electrosurgery/Urology
Sales, net	2,815		8,130
OutsideUsMember | Neonatal
Sales, net	312		1,064
OutsideUsMember | Blood Pressure Monitoring and Accessories
Sales, net	$ 1,464		$ 3,832

CSI Distribution Agreement Pu_2

CSI Distribution Agreement Purchase Disclosure (Details) - CooperSurgical Inc $ in Thousands	Sep. 30, 2021	Mar. 31, 2019USD ($)
Finite-lived Intangible Assets Acquired		$ 21,000
Remaining years of exclusive U.S. distribution rights for Femcare's Filshie Clip System	2.08

Earnings Per Share_ Schedule _2

Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Details
Net income	$ 4,206	$ 2,933	$ 10,656	$ 7,386
Weighted average shares, basic	3,647	3,642	3,645	3,664
Dilutive effect of stock options	11	11	11	14
Diluted shares	3,658	3,653	3,656	3,678
Earnings per share, basic	$ 1.15	$ 0.81	$ 2.92	$ 2.02
Earnings per share, diluted	$ 1.15	$ 0.80	$ 2.91	$ 2.01