Utah Medical Products Inc. Reports Operating Results (10-Q)
Utah Medical Products Inc. has a market cap of $97.73 million; its shares were traded at around $27.02 with a P/E ratio of 15.89 and P/S ratio of 3.77. The dividend yield of Utah Medical Products Inc. stocks is 3.48%. 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:G&A expenses in 1Q 2010 were $568 or 8.8% of sales compared to $566 or 8.8% of 1Q 2009 sales. In addition to litigation costs, 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 was $25 in 1Q 2010 compared to $31 in 1Q 2009.
Non-operating income in 1Q 2010 was $19 compared to $9 in 1Q 2009. UTMD received less in investment income in 1Q 2010 than in 1Q 2009, primarily due to lower interest rates, but it also paid less in bank fees and interest on its Ireland debt. The two effectively canceled each other out. The increase of $10 in 1Q 2010 was due to short term rental of 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.
1Q 2010 earnings before income taxes (EBT) decreased to $2,308 compared to $2,468 in 1Q 2009. 1Q 2010 EBT margin was 35.9% of sales compared to 38.3% in 1Q 2009. The domestic component of EBT was $2,197 in 1Q 2010 compared to $2,370 in 1Q 2009. The foreign component of EBT was $111 in 1Q 2010 compared to $98 in 1Q 2009.
Net cash provided by operating activities, including adjustments for depreciation and other non-cash operating expenses along with changes in working capital, totaled $2,347 in 1Q 2010 compared to $2,357 in 1Q 2009. The most significant differences in the two periods essentially offset each other: a $248 smaller increase in accrued expenses plus a $149 smaller decrease in accounts receivable compared to a $425 smaller increase in inventories.
Net property and equipment decreased $229 in 1Q 2010 even though capital expenditures of $210 exceeded depreciation by $70. The difference was due to the dollar-denominated change in value of Ireland P&E. Goodwill resulting from prior acquisitions remained the same. Net intangible assets excluding goodwill decreased $11, the amount of intellectual property amortization during the period. At March 31, 2010, net intangible assets including goodwill were 17% of total assets compared to 18% at year-end 2009.
UTMD s long term liabilities are comprised of the Ireland note payable ($1,278 on March 31, 2010) and deferred income taxes ($592 on March 31, 2010). As of December 31, 2009, the respective long term liabilities were $1,403 and $608. The March 31, 2010 Ireland note payable balance, denominated in thousand Euros, declined 15. This translated to a $133 in USD-denominated decline because the USD increased in value against the Euro. Because of the change in C/L in 1Q 2010, UTMD s total debt ratio (total liabilities/ total assets) as of March 31, 2010 increased to 12% from 9% on December 31, 2009. UTMD s total debt ratio on March 31, 2009 was 13%, which reflected the same C/L income tax payment and dividend payment timing issues as in 1Q 2010.
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