Utah Medical Products (UTMD) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 11, 2024
Details
Entity Registrant Name	UTAH MEDICAL PRODUCTS INC
Entity Central Index Key	0000706698
Document Type	10-Q
Document Period End Date	Sep. 30, 2024
Current Fiscal Year End Date	--12-31
Trading Symbol	UTMD
Entity Tax Identification Number	87-0342734
Entity Common Stock, Shares Outstanding		3,391,620
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	Q3

UTAH MEDICAL PRODUCTS, INC. CON

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash & investments	$ 88,452	$ 92,868
Accounts & other receivables, net	3,720	3,391
Inventories	9,107	9,582
Other current assets	377	428
Total current assets	101,656	106,269
Property and equipment, net	10,419	10,551
Goodwill	14,027	13,692
Other intangible assets	55,899	54,296
Other intangible assets - accumulated amortization	(52,307)	(49,350)
Other intangible assets, net	3,592	4,946
Total assets	129,694	135,458
Current liabilities
Accounts payable	999	769
Accrued expenses	2,436	3,941
Total current liabilities	3,435	4,710
Deferred tax liability - Femcare IIA	779	1,120
Other long term liabilities	698	698
Operating lease liability	299	295
Deferred income taxes	286	322
Total liabilities	5,497	7,145
Stockholders' equity
Common stock - $.01 par value; authorized - 50,000 shares; issued - September 30, 2024, 3,441 shares and December 31, 2023, 3,630 shares	34	36
Accumulated other comprehensive income (loss)	(9,890)	(10,658)
Additional paid-in capital	0	594
Retained earnings	134,053	138,341
Total stockholders' equity	124,197	128,313
Total liabilities and stockholders' equity	$ 129,694	$ 135,458

UTAH MEDICAL PRODUCTS, INC. C_2

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - Parenthetical - $ / shares shares in Thousands	Sep. 30, 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	3,441	3,630
Common Stock, Shares, Outstanding	3,441	3,630

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME
Sales, net	$ 10,005	$ 12,505	$ 31,745	$ 37,891
Cost of goods sold	4,203	5,146	12,925	14,951
Gross profit	5,802	7,359	18,820	22,940
Operating expense
Selling, general and administrative	2,287	3,252	7,464	9,693
Research & development	172	138	692	414
Total operating expense	2,459	3,390	8,156	10,107
Operating income	3,343	3,969	10,664	12,833
Other income	836	812	2,524	2,239
Income before provision for income taxes	4,179	4,781	13,188	15,072
Provision for income taxes	616	846	2,216	2,723
Net income	$ 3,563	$ 3,935	$ 10,972	$ 12,349
Earnings per common share (basic)	$ 1.02	$ 1.08	$ 3.1	$ 3.4
Earnings per common share (diluted)	$ 1.02	$ 1.08	$ 3.1	$ 3.39
Shares outstanding - basic	3,478	3,629	3,542	3,629
Shares outstanding - diluted	3,478	3,639	3,542	3,638
Other comprehensive income (loss)
Foreign currency translation net of taxes of $0 in all periods	$ 1,432	$ (1,012)	$ 769	$ 41
Total comprehensive income	$ 4,995	$ 2,923	$ 11,741	$ 12,390

UTAH MEDICAL PRODUCTS, INC. C_4

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME - Parenthetical - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME
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, 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	117	0	0	117
Common stock issued upon exercise of employee stock options, shares	2
Stock option compensation expense	$ 0	153	0	0	153
Foreign currency translation adjustment	0	0	41	0	41
Common stock dividends	0	0	0	(3,212)	(3,212)
Net income	0	0	0	12,349	12,349
Equity Balance, value at Sep. 30, 2023	$ 36	521	(11,999)	135,144	123,702
Equity Balance, shares at Sep. 30, 2023	3,630
Equity Balance, value at Jun. 30, 2023	$ 36	432	(10,986)	132,279	121,762
Equity Balance, shares at Jun. 30, 2023	3,629
Common stock issued upon exercise of employee stock options	$ 0	36	0	0	36
Common stock issued upon exercise of employee stock options, shares	1
Stock option compensation expense	$ 0	53	0	0	53
Foreign currency translation adjustment	0	0	(1,012)	0	(1,012)
Common stock dividends	0	0	0	(1,071)	(1,071)
Net income	0	0	0	3,935	3,935
Equity Balance, value at Sep. 30, 2023	$ 36	521	(11,999)	135,144	123,702
Equity Balance, shares at Sep. 30, 2023	3,630
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	390	0	0	390
Common stock issued upon exercise of employee stock options, shares	8
Stock option compensation expense	$ 0	184	0	0	184
Common stock purchased and retired	$ (2)	(1,168)	0	(12,090)	(13,259)
Common stock purchased and retired, shares	(197)
Foreign currency translation adjustment	$ 0	0	769	0	769
Common stock dividends	0	0	0	(3,171)	(3,171)
Net income	0	0	0	10,972	10,972
Equity Balance, value at Sep. 30, 2024	$ 34	0	(9,890)	134,053	124,197
Equity Balance, shares at Sep. 30, 2024	3,441
Equity Balance, value at Jun. 30, 2024	$ 35	0	(11,322)	135,339	124,052
Equity Balance, shares at Jun. 30, 2024	3,499
Stock option compensation expense	$ 0	53	0	0	53
Common stock purchased and retired	$ (1)	(53)	0	(3,812)	(3,866)
Common stock purchased and retired, shares	(58)
Foreign currency translation adjustment	$ 0	0	1,432	0	1,432
Common stock dividends	0	0	0	(1,038)	(1,038)
Net income	0	0	0	3,563	3,563
Equity Balance, value at Sep. 30, 2024	$ 34	$ 0	$ (9,890)	$ 134,053	$ 124,197
Equity Balance, shares at Sep. 30, 2024	3,441

UTAH MEDICAL PRODUCTS, INC. C_6

UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOW - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 10,972	$ 12,349
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	530	465
Amortization	1,548	4,824
Provision for (recovery of) losses on accounts receivable	(6)	(31)
Amortization of Right of Use Assets	38	39
Deferred income taxes	(417)	(284)
Stock-based compensation expense	184	153
Tax benefit attributable to exercise of stock options	20	12
Changes in operating assets and liabilities
Accounts receivable and other receivables	(306)	2,133
Inventories	508	(925)
Prepaid expenses and other current assets	54	19
Accounts payable	229	(712)
Accrued expenses	(1,460)	(1,093)
Total adjustments	922	4,600
Net cash provided by operating activities	11,894	16,949
CASH FLOWS FROM INVESTING ACTIVITIES
Property and equipment	(221)	(549)
Intangible assets	(5)	0
Proceeds from sale of property and equipment	27	0
Net cash used in investing activities	(199)	(549)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - options	390	117
Common stock purchased and retired	(13,259)	0
Payment of dividends	(3,222)	(3,211)
Net cash used in financing activities	(16,091)	(3,094)
Effect of exchange rate changes on cash	(20)	(149)
Net increase/(decrease) in cash and cash equivalents	(4,416)	13,157
Cash at beginning of period	92,868	75,052
Cash at end of period	88,452	88,209
Cash paid during the period for income taxes	3,713	3,489
Cash paid during the period for interest	$ 0	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2024
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, 2024
Notes
Inventories	(3) Inventories at September 30, 2024, and December 31, 2023, consisted of the following: September 30, 2024 December 31, 2023 Finished goods $ 1,356 $ 1,685 Work-in-process 1,441 1,503 Raw materials 6,310 6,394 Total $ 9,107 $ 9,582

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2024
Notes
Stock-Based Compensation	(4) Stock-Based Compensation. At September 30, 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	9 Months Ended
	Sep. 30, 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 September 30, 2024.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2024
Notes
Revenue Recognition	(6) Global 3Q 2024 revenues (USD) by product category: Domestic Outside US Total Labor & Delivery $ 894 $ 159 $ 1,053 Gynecology/Electrosurgery/Urology 2,298 2,795 5,093 Neonatal 1,371 342 1,713 Blood Pressure Monitoring and Accessories* 1,124 1,022 2,146 Total: $ 5,687 $ 4,318 $ 10,005 Global 9M 2024 revenues (USD) by product category: Domestic Outside US Total Labor & Delivery $ 2,550 $ 547 $ 3,097 Gynecology/Electrosurgery/Urology 7,060 8,945 16,005 Neonatal 3,848 1,053 4,901 Blood Pressure Monitoring and Accessories* 4,251 3,491 7,742 Total: $ 17,709 $ 14,036 $ 31,745 *includes assemblies and molded components sold to OEM customers.

CSI Distribution Agreement Purc

CSI Distribution Agreement Purchase Disclosure	9 Months Ended
	Sep. 30, 2024
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) as of 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 distribution agreement with Femcare Ltd.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2024
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 2024. 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, 2024 2023 2024 2023 Numerator Net income 3,563 3,935 10,972 12,349 Denominator Weighted average shares, basic 3,478 3,629 3,542 3,629 Dilutive effect of stock options - 10 - 9 Diluted shares 3,478 3,639 3,542 3,638 Earnings per share, basic 1.02 1.08 3.10 3.40 Earnings per share, diluted 1.02 1.08 3.10 3.39

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
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, 2024
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, 2024
Tables/Schedules
Schedule of Inventory, Current	September 30, 2024 December 31, 2023 Finished goods $ 1,356 $ 1,685 Work-in-process 1,441 1,503 Raw materials 6,310 6,394 Total $ 9,107 $ 9,582

Revenue Recognition_ Schedule O

Revenue Recognition: Schedule Of Revenues By Product Category (Tables)	9 Months Ended
	Sep. 30, 2024
Tables/Schedules
Schedule Of Revenues By Product Category	Domestic Outside US Total Labor & Delivery $ 894 $ 159 $ 1,053 Gynecology/Electrosurgery/Urology 2,298 2,795 5,093 Neonatal 1,371 342 1,713 Blood Pressure Monitoring and Accessories* 1,124 1,022 2,146 Total: $ 5,687 $ 4,318 $ 10,005 Global 9M 2024 revenues (USD) by product category: Domestic Outside US Total Labor & Delivery $ 2,550 $ 547 $ 3,097 Gynecology/Electrosurgery/Urology 7,060 8,945 16,005 Neonatal 3,848 1,053 4,901 Blood Pressure Monitoring and Accessories* 4,251 3,491 7,742 Total: $ 17,709 $ 14,036 $ 31,745 *includes assemblies and molded components sold to OEM customers.

Earnings Per Share_ Schedule of

Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	9 Months Ended
	Sep. 30, 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 Nine months ended September 30, September 30, 2024 2023 2024 2023 Numerator Net income 3,563 3,935 10,972 12,349 Denominator Weighted average shares, basic 3,478 3,629 3,542 3,629 Dilutive effect of stock options - 10 - 9 Diluted shares 3,478 3,639 3,542 3,638 Earnings per share, basic 1.02 1.08 3.10 3.40 Earnings per share, diluted 1.02 1.08 3.10 3.39

Inventories_ Schedule of Inve_2

Inventories: Schedule of Inventory, Current (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Details
Finished goods	$ 1,356	$ 1,685
Work-in-process	1,441	1,503
Raw materials	6,310	6,394
Total	$ 9,107	$ 9,582

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Details
Allocated Share-based Compensation Expense	$ 53	$ 53	$ 184	$ 153

Warranty Reserve (Details)

Warranty Reserve (Details) - USD ($)	Sep. 30, 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Sales, net	$ 10,005	$ 12,505	$ 31,745	$ 37,891
Obstetrics
Sales, net	1,053		3,097
Gynecology/Electrosurgery/Urology
Sales, net	5,093		16,005
Neonatal
Sales, net	1,713		4,901
Blood Pressure Monitoring and Accessories
Sales, net	2,146		7,742
DomesticUsMember
Sales, net	5,687		17,709
DomesticUsMember | Obstetrics
Sales, net	894		2,550
DomesticUsMember | Gynecology/Electrosurgery/Urology
Sales, net	2,298		7,060
DomesticUsMember | Neonatal
Sales, net	1,371		3,848
DomesticUsMember | Blood Pressure Monitoring and Accessories
Sales, net	1,124		4,251
OutsideUsMember
Sales, net	4,318		14,036
OutsideUsMember | Obstetrics
Sales, net	159		547
OutsideUsMember | Gynecology/Electrosurgery/Urology
Sales, net	2,795		8,945
OutsideUsMember | Neonatal
Sales, net	342		1,053
OutsideUsMember | Blood Pressure Monitoring and Accessories
Sales, net	$ 1,022		$ 3,491

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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Details
Net income	$ 3,563	$ 3,935	$ 10,972	$ 12,349
Weighted average shares, basic	3,478	3,629	3,542	3,629
Dilutive effect of stock options	0	10	0	9
Diluted shares	3,478	3,639	3,542	3,638
Earnings per share, basic	$ 1.02	$ 1.08	$ 3.1	$ 3.4
Earnings per share, diluted	$ 1.02	$ 1.08	$ 3.1	$ 3.39

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Nov. 11, 2024	Sep. 30, 2024	Sep. 30, 2024
Details
Common stock purchased and retired, shares	48,905
Common stock purchased and retired	$ 3,164	$ (3,866)	$ (13,259)
Accelerated Share Repurchases, Final Price Paid Per Share	$ 64.7