Utah Medical Products Inc. has a market cap of $91.7 million; its shares were traded at around $25.24 with a P/E ratio of 15 and P/S ratio of 3.5. The dividend yield of Utah Medical Products Inc. stocks is 3.8%. Utah Medical Products Inc. had an annual average earning growth of 5.3% over the past 10 years. GuruFocus rated Utah Medical Products Inc. the business predictability rank of 2.5-star.UTMD is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:2Q 2010 earnings per share (EPS) were $.402 compared to $.416 in 2Q 2009. 1H 2010 EPS were $0.821 compared to $0.856 in 1H 2009. The most recent four calendar quarters EPS were $1.69. EPS for calendar year 2009 were $1.72. Management is currently projecting EPS for calendar year 2010 in the range of $1.66 - $1.72.
G&A expenses in 2Q 2010 were 9.2% of sales compared to 9.4% of sales in 2Q 2009, and 9.0% of sales in 1H 2010 compared to 9.1% of sales in 1H 2009. In addition to litigation expense, G&A expenses include the cost of outside financial auditors and corporate governance activities relating to the implementation of SEC rules resulting from the Sarbanes-Oxley Act, as well as estimated stock-based compensation cost. Option compensation expense included in G&A expenses in 2Q 2010 was $19 compared to $22 in 2Q 2009, and $44 in 1H 2010 compared to $53 in 1H 2009.
Non-operating income in 2Q 2010 was $16 compared to $78 in 2Q 2009, and $35 in 1H 2010 compared to $87 in 1H 2009. The decrease in both 2010 periods was due primarily to UTMD receiving less in investment income as a result of lower interest rates. During 2010 UTMD also received short term rental income from excess facility warehouse space in Ireland. If interest rates remain about the same for the rest of the year, UTMD expects its non-operating income will be about $50 for all of 2010.
2Q 2010 earnings before income taxes (EBT) were $2,211 compared to $2,291 in 2Q 2009. EBT in 1H 2010 were $4,519 compared to $4,759 in 1H 2009. EBT margins (EBT divided by sales) were 35.2% and 35.6% in 2Q and 1H 2010, respectively, compared to 36.3% and 37.3% in 2Q and 1H 2009. The domestic component of EBT was $2,122 and $4,320 in 2Q and 1H 2010, respectively, compared to $2,168 and $4,538 in 2Q and 1H 2009. The Ireland contribution to (foreign component of) EBT was $89 and $199 in 2Q and 1H 2010, respectively, compared to $123 and $221 in 2Q and 1H 2009.
In 1H 2010, UTMD received $375 and issued 20,306 shares of stock upon the exercise of employee stock options. Option exercises in 1H 2010 were at an average price of $19.27 per share. Employees exercised a total of 22,075 option shares in 1H 2010, with 1,769 shares immediately being retired as a result of the individuals trading the shares in payment of the exercise price of the options. For comparison, the Company received $31 from issuing 8,980 shares of stock on the exercise of employee stock options in 1H 2009, net of 2,145 shares retired upon employees trading those shares in payment of the stock option exercise price. The Company repurchased 5,230 shares of its stock in the open market at a cost of $134 during 1H 2010, an average cost of $25.71 per share including commissions and fees. For comparison, UTMD repurchased 5,367 shares of stock in the open market at a cost of $116 during 1H 2009.
UTMD s long term liabilities are comprised of the Ireland note payable ($1,034 on June 30, 2010) and deferred income taxes ($667 on June 30, 2010). The deferred taxes result primarily from the temporary difference created by accelerated depreciation of assets for tax purposes compared to depreciation for book purposes. As of December 31, 2009, the respective long term liabilities were $1,403 and $608. The June 30, 2010 Ireland note payable balance, denominated in thousand Euros, declined 133. This translated to a $414 in USD-denominated decline because the USD increased in value against the Euro.
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