Utah Medical Products (UTMD) 10-Q 10 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 09, 2024
Details
Entity Registrant Name	UTAH MEDICAL PRODUCTS INC
Entity Central Index Key	0000706698
Document Type	10-Q
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Trading Symbol	UTMD
Entity Tax Identification Number	87-0342734
Entity Common Stock, Shares Outstanding		3,528,426
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
Securities Act 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	2024
Document Fiscal Period Focus	Q1

UTAH MEDICAL PRODUCTS, INC. CON

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash & Investments	$ 93,808	$ 92,868
Accounts & other receivables, net	3,591	3,391
Inventories	9,240	9,582
Other current assets	510	428
Total current assets	107,149	106,269
Property and equipment, net	10,266	10,551
Goodwill	13,638	13,692
Other intangible assets	54,029	54,296
Other intangible assets - accumulated amortization	(49,641)	(49,350)
Other intangible assets, net	4,388	4,946
Total assets	135,441	135,458
Current liabilities
Accounts payable	998	769
Accrued expenses	4,476	3,941
Total current liabilities	5,474	4,710
Deferred tax liability - Femcare IIA	986	1,120
Other long term liabilities	698	698
Long-term lease liability	285	295
Deferred income taxes	256	322
Total liabilities	7,699	7,145
Stockholders' equity
Common stock - $.01 par value; authorized - 50,000 shares; issued and outstanding - March 31, 2024, 3,588 shares and December 31, 2023, 3,628 shares	36	36
Accumulated other comprehensive loss	(11,289)	(10,658)
Additional paid-in capital	0	594
Retained earnings	138,995	138,341
Total stockholders' equity	127,742	128,313
Total liabilities and stockholders' equity	$ 135,441	$ 135,458

UTAH MEDICAL PRODUCTS, INC. C_2

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - Parenthetical - $ / shares shares in Thousands	Mar. 31, 2024	Dec. 31, 2023
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	50,000	50,000
Common Stock, Shares, Issued	3,588	3,628
Common Stock, Shares, Outstanding	3,588	3,628

UTAH MEDICAL PRODUCTS, INC. C_3

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME
Sales, net	$ 11,340	$ 12,520
Cost of goods sold	4,574	4,677
Gross profit	6,766	7,843
Operating expense
Selling, general and administrative	2,617	3,260
Research & development	266	144
Total operating expenses	2,883	3,404
Operating income	3,883	4,439
Other income	915	680
Income before provision for income taxes	4,798	5,119
Provision for income taxes	842	905
Net income	$ 3,956	$ 4,214
Earnings per common share (basic)	$ 1.09	$ 1.16
Earnings per common share (diluted)	$ 1.09	$ 1.16
Shares outstanding (basic)	3,618	3,628
Shares outstanding (diluted)	3,618	3,636
Other comprehensive income (loss)
Foreign currency translation net of taxes of $0 in all periods	$ (631)	$ 549
Total comprehensive income	$ 3,325	$ 4,763

UTAH MEDICAL PRODUCTS, INC. C_4

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME - Parenthetical - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	$ 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, 2022	$ 36	$ 251	$ (12,039)	$ 126,006	$ 114,254
Equity Balance, shares at Dec. 31, 2022	3,628
Common stock issued upon exercise of employee stock options	$ 0	21	0	0	21
Common stock issued upon exercise of employee stock options, shares	0
Stock option compensation expense	$ 0	50	0	0	50
Foreign currency translation adjustment	0	0	549	0	549
Common stock dividends	0	0	0	(1,070)	(1,070)
Net income	0	0	0	4,214	4,214
Equity Balance, value at Mar. 31, 2023	$ 36	322	(11,491)	129,150	118,018
Equity Balance, shares at Mar. 31, 2023	3,628
Equity Balance, value at Dec. 31, 2023	$ 36	593	(10,658)	138,341	128,313
Equity Balance, shares at Dec. 31, 2023	3,630
Common stock issued upon exercise of employee stock options	$ 0	96	0	0	96
Common stock issued upon exercise of employee stock options, shares	2
Stock option compensation expense	$ 0	79	0	0	79
Common stock purchased and retired	$ 0	(769)	0	(2,221)	(2,990)
Common stock purchased and retired, shares	43
Foreign currency translation adjustment	$ 0	0	(631)	0	(631)
Common stock dividends	0	0	0	(1,081)	(1,081)
Net income	0	0	0	3,956	3,956
Equity Balance, value at Mar. 31, 2024	$ 36	$ 0	$ (11,289)	$ 138,995	$ 127,742
Equity Balance, shares at Mar. 31, 2024	3,588
Stock Repurchased and Retired During Period, Shares	(43)

UTAH MEDICAL PRODUCTS, INC. C_6

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOW - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 3,956	$ 4,214
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	156	155
Amortization	513	1,596
Provision for losses on/(recovery of) accounts receivable	(8)	1
Operating Lease, Right-of-Use Asset, Amortization Expense	14	13
Deferred income taxes	(192)	(3)
Stock-based compensation expense	79	50
Tax benefit attributable to exercise of stock options	9	2
Changes in operating assets and liabilities
Accounts receivable and other receivables	(214)	1,789
Inventories	271	(1,084)
Prepaid expenses and other current assets	(87)	25
Accounts payable	230	(193)
Accrued expenses	549	350
Total adjustments	1,320	2,701
Net cash provided by operating activities	5,276	6,915
CASH FLOWS FROM INVESTING ACTIVITIES
Property and equipment	(22)	(43)
Proceeds from sale of equipment	27	0
Net cash provided by/(used in) investing activities	5	(43)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - options	96	21
Common stock purchased and retired	(2,990)	0
Payment of dividends	(1,089)	(1,070)
Net cash used in financing activities	(3,983)	(1,049)
Effect of exchange rate changes on cash	(358)	37
Net increase in cash and cash equivalents	940	5,860
Cash at beginning of period	92,868	75,052
Cash at end of period	93,808	80,912
Cash paid during the period for income taxes	105	129
Cash paid during the period for interest	$ 0	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2024
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, 2023. 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	3 Months Ended
	Mar. 31, 2024
Notes
New Accounting Pronouncements and Changes in Accounting Principles	(2) Recent Accounting Standards. The Company has determined that 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	3 Months Ended
	Mar. 31, 2024
Notes
Inventories	(3) Inventories at March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Finished goods $ 1,634 $ 1,685 Work-in-process 1,302 1,503 Raw materials 6,304 6,394 Total $ 9,240 $ 9,582

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2024
Notes
Stock-Based Compensation	(4) Stock-Based Compensation. At March 31, 2024, 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	3 Months Ended
	Mar. 31, 2024
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, 2023 or March 31, 2024.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2024
Notes
Revenue Recognition	(6) 1Q 2024 global revenues (USD) by product category: Domestic Outside US Total Obstetrics $ 803 $ 222 $ 1,025 Gynecology/Electrosurgery/Urology 2,353 3,108 5,461 Neonatal 1,247 395 1,642 Blood Pressure Monitoring and Accessories 1,788 1,424 3,212 Total $ 6,191 $ 5,149 $ 11,340

CSI Distribution Agreement Purc

CSI Distribution Agreement Purchase Disclosure	3 Months Ended
	Mar. 31, 2024
Notes
CSI Distribution Agreement Purchase Disclosure	(7) Exclusive U.S. Filshie Distribution Agreement Purchase. UTMD completed the purchase of exclusive U.S. distribution and use of intellectual property rights for the Filshie® Clip System from CooperSurgical, Inc. (CSI) effective February 1, 2019. The $21,000 purchase price represented an identifiable intangible asset which was straight-line amortized and recognized as part of G&A expenses over the 4.75 year remaining life of the CSI Agreement with Femcare ended in October 2023.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2024
Notes
Earnings Per Share	(8) Earnings Per Share. Basic earnings per share were calculated by dividing net income attributable to the common stockholders of the company by the weighted average number of common shares outstanding during each applicable period. Diluted earnings per share were calculated by assuming the exercise of stock options at the closing price of stock at the end of first quarter 2024 and 2023, as applicable. The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: ( in thousands Three months ended March 31, 2024 2023 Numerator Net income 3,956 4,214 Denominator Weighted average shares, basic 3,618 3,628 Dilutive effect of stock options - 8 Diluted shares 3,618 3,636 Earnings per share, basic $ 1.09 $ 1.16 Earnings per share, diluted $ 1.09 $ 1.16

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Notes
Subsequent Events	(9) Subsequent Events.

New Accounting Pronouncements_2

New Accounting Pronouncements and Changes in Accounting Principles: New Accounting Pronouncements, Policy (Policies)	3 Months Ended
	Mar. 31, 2024
Policies
New Accounting Pronouncements, Policy	The Company has determined that 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)	3 Months Ended
	Mar. 31, 2024
Tables/Schedules
Schedule of Inventory, Current	March 31, 2024 December 31, 2023 Finished goods $ 1,634 $ 1,685 Work-in-process 1,302 1,503 Raw materials 6,304 6,394 Total $ 9,240 $ 9,582

Revenue Recognition_ Schedule O

Revenue Recognition: Schedule Of Revenues By Product Category (Tables)	3 Months Ended
	Mar. 31, 2024
Tables/Schedules
Schedule Of Revenues By Product Category	Domestic Outside US Total Obstetrics $ 803 $ 222 $ 1,025 Gynecology/Electrosurgery/Urology 2,353 3,108 5,461 Neonatal 1,247 395 1,642 Blood Pressure Monitoring and Accessories 1,788 1,424 3,212 Total $ 6,191 $ 5,149 $ 11,340

Earnings Per Share_ Schedule of

Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 2023 Numerator Net income 3,956 4,214 Denominator Weighted average shares, basic 3,618 3,628 Dilutive effect of stock options - 8 Diluted shares 3,618 3,636 Earnings per share, basic $ 1.09 $ 1.16 Earnings per share, diluted $ 1.09 $ 1.16

Inventories_ Schedule of Inve_2

Inventories: Schedule of Inventory, Current (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Details
Finished goods	$ 1,634	$ 1,685
Work-in-process	1,302	1,503
Raw materials	6,304	6,394
Total	$ 9,240	$ 9,582

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Details
Allocated Share-based Compensation Expense	$ 79	$ 50

Warranty Reserve (Details)

Warranty Reserve (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
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
	Mar. 31, 2024	Mar. 31, 2023
Sales, net	$ 11,340	$ 12,520
Obstetrics
Sales, net	1,025
Gynecology/Electrosurgery/Urology
Sales, net	5,461
Neonatal
Sales, net	1,642
Blood Pressure Monitoring and Accessories
Sales, net	3,212
DomesticUsMember
Sales, net	6,191
DomesticUsMember | Obstetrics
Sales, net	803
DomesticUsMember | Gynecology/Electrosurgery/Urology
Sales, net	2,353
DomesticUsMember | Neonatal
Sales, net	1,247
DomesticUsMember | Blood Pressure Monitoring and Accessories
Sales, net	1,788
OutsideUsMember
Sales, net	5,149
OutsideUsMember | Obstetrics
Sales, net	222
OutsideUsMember | Gynecology/Electrosurgery/Urology
Sales, net	3,108
OutsideUsMember | Neonatal
Sales, net	395
OutsideUsMember | Blood Pressure Monitoring and Accessories
Sales, net	$ 1,424

CSI Distribution Agreement Pu_2

CSI Distribution Agreement Purchase Disclosure (Details) - CooperSurgical Inc $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Finite-Lived Intangible Assets Acquired	$ 21,000
Remaining years of exclusive U.S. distribution rights for Femcare's Filshie Clip System	4.75

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
	Mar. 31, 2024	Mar. 31, 2023
Details
Net income	$ 3,956	$ 4,214
Weighted average shares, basic	3,618	3,628
Dilutive effect of stock options	0	8
Diluted shares	3,618	3,636
Earnings per share, basic	$ 1.09	$ 1.16
Earnings per share, diluted	$ 1.09	$ 1.16

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	May 03, 2024	Mar. 31, 2024
Details
Stock Repurchased and Retired During Period, Shares	63,985
Common stock purchased and retired	$ 4,323	$ (2,990)
Accelerated Share Repurchases, Final Price Paid Per Share	$ 67.57