Utah Medical Products Inc. (UTMD, Financial) filed Quarterly Report for the period ended 2009-03-31.
Utah Medical Products is in the business of producing cost-effective devices for the healthcare industry which are predominantly proprietary disposable and for hospital use. The company's success in rapidly producing solutions comes from its proven ability to integrate a number of engineering and technical disciplines in electronics software mechanical packaging instrumentation optics and materials. The resulting proprietary products represent significant incremental improvementsover existing clinical techniques. Utah Medical Products Inc. has a market cap of $79.3 million; its shares were traded at around $21.98 with a P/E ratio of 12.08 and P/S ratio of 2.85. The dividend yield of Utah Medical Products Inc. stocks is 4.19%. Utah Medical Products Inc. had an annual average earning growth of 4.5% over the past 5 years.
UTMD s net income decreased to $1,592 in 1Q 2009 compared to $1,891 in 1Q 2008. Net profit margins (NPM), which are net income (after income tax provision) expressed as a percentage of sales, were 24.7% in 1Q 2009 compared to 27.5% in 1Q 2008. The income tax provision rate in 1Q 2009 was 35.5% compared to 31.1% in 1Q 2008. The lower tax provision rate in 2008 resulted primarily from one-time refunds on amended 2004-2006 income tax returns in Ireland. Diluted 1Q 2009 Earnings per Share (EPS) decreased to $.440 compared to $.481 in 1Q 2008. UTMD previously targeted 2009 EPS about equal to the $1.86 achieved in 2008. Incorporating the current view that UTMD expects lower sales in 2009, an EPS projection in the range of $1.76 - $1.80 for the year appears more likely.
Net cash provided by operating activities, including adjustments for depreciation and other non-cash operating expenses along with changes in working capital, totaled $2,357 in 1Q 2009 compared to $1,740 in 1Q 2008. A $280 larger increase in accrued expenses, a $3 decrease in accrued interest and other receivables compared to a $200 increase during 1Q 2008, and a $196 larger decrease in accounts receivable were the most significant differences in the two periods.
In 1Q 2009, UTMD received $25 and issued 5,112 shares of stock upon the exercise of employee stock options. Employees exercised a total of 5,656 option shares in 1Q 2009, with 544 shares immediately being retired as a result of the individuals trading the shares in payment of the exercise price of the options. UTMD did not repurchase any shares of stock in the open market during 1Q 2009. Option exercises in 1Q 2009 were at an average price of $6.78 per share. In comparison, the Company received $133 from issuing 11,451 shares of stock on the exercise of employee stock options in 1Q 2008, net of 1,800 shares retired upon employees trading those shares in payment of the stock option exercise price. UTMD repurchased 31,343 shares of stock in the open market at a cost of $921 during 1Q 2008.
Net property and equipment decreased $316 in 1Q 2009 after additions of $83 and a decrease in the dollar-denominated value of Ireland P&E and depreciation of $135. Goodwill resulting from prior acquisitions remained the same. Net intangible assets excluding goodwill decreased $6 as a result of $9 amortization of intellectual property offset by $3 additions to intangibles. At March 31, 2009, net intangible assets including goodwill were 18% of total assets compared to 19% at year-end 2008.
UTMD s long term liabilities are comprised of the Ireland note payable ($1,509 on March 31, 2009) and deferred income taxes ($405 on March 31, 2009). As of December 31, 2008, the respective long term liabilities were $1,828 and $420. The note payable, denominated in Euros, declined $319 in USD book value despite actual principal payments of $231 because the USD increased in value against the Euro. In Euros, the note declined 11% from €1,485 to €1,322 (both in thousands) during the quarter. As of March 31, 2009, UTMD s total debt ratio (total liabilities/ total assets) increased to 13% from 10% on December 31, 2008. UTMD s total debt ratio on March 31, 2008 was 17%.
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Utah Medical Products is in the business of producing cost-effective devices for the healthcare industry which are predominantly proprietary disposable and for hospital use. The company's success in rapidly producing solutions comes from its proven ability to integrate a number of engineering and technical disciplines in electronics software mechanical packaging instrumentation optics and materials. The resulting proprietary products represent significant incremental improvementsover existing clinical techniques. Utah Medical Products Inc. has a market cap of $79.3 million; its shares were traded at around $21.98 with a P/E ratio of 12.08 and P/S ratio of 2.85. The dividend yield of Utah Medical Products Inc. stocks is 4.19%. Utah Medical Products Inc. had an annual average earning growth of 4.5% over the past 5 years.
Highlight of Business Operations:
Non-operating income in 1Q 2009 was $9 compared to $203 in 1Q 2008. UTMD did not receive royalty income in 1Q 2009 compared to $113 in 1Q 2008 because of applicable patent expirations. UTMD received $48 in 1Q 2009 compared to $141 in 1Q 2008 in interest, dividends and capital gains/losses income from investing cash balances. The decline was primarily due to the fact that interest rates in the U.S. have declined substantially compared to one year ago. In 1Q 2009, UTMD incurred $16 in interest expense compared to $66 in 1Q 2008 due to lower interest rates on its loan in Ireland, lower average loan balances and favorable foreign exchange conversion as a result of a stronger US Dollar. The lower non-operating income was aided by a $15 IRS penalty for late filing of UTMD s 2007 annual report for its U.S. employee health plan. This expense was also not tax deductible. Unless cash balances decline substantially as a result of significant share repurchases or alternative investment such as an acquisition, UTMD expects its quarterly non-operating income will improve during the remaining quarters of 2009, but likely end up about $100 less for the year as a whole compared to 2008.UTMD s net income decreased to $1,592 in 1Q 2009 compared to $1,891 in 1Q 2008. Net profit margins (NPM), which are net income (after income tax provision) expressed as a percentage of sales, were 24.7% in 1Q 2009 compared to 27.5% in 1Q 2008. The income tax provision rate in 1Q 2009 was 35.5% compared to 31.1% in 1Q 2008. The lower tax provision rate in 2008 resulted primarily from one-time refunds on amended 2004-2006 income tax returns in Ireland. Diluted 1Q 2009 Earnings per Share (EPS) decreased to $.440 compared to $.481 in 1Q 2008. UTMD previously targeted 2009 EPS about equal to the $1.86 achieved in 2008. Incorporating the current view that UTMD expects lower sales in 2009, an EPS projection in the range of $1.76 - $1.80 for the year appears more likely.
Net cash provided by operating activities, including adjustments for depreciation and other non-cash operating expenses along with changes in working capital, totaled $2,357 in 1Q 2009 compared to $1,740 in 1Q 2008. A $280 larger increase in accrued expenses, a $3 decrease in accrued interest and other receivables compared to a $200 increase during 1Q 2008, and a $196 larger decrease in accounts receivable were the most significant differences in the two periods.
In 1Q 2009, UTMD received $25 and issued 5,112 shares of stock upon the exercise of employee stock options. Employees exercised a total of 5,656 option shares in 1Q 2009, with 544 shares immediately being retired as a result of the individuals trading the shares in payment of the exercise price of the options. UTMD did not repurchase any shares of stock in the open market during 1Q 2009. Option exercises in 1Q 2009 were at an average price of $6.78 per share. In comparison, the Company received $133 from issuing 11,451 shares of stock on the exercise of employee stock options in 1Q 2008, net of 1,800 shares retired upon employees trading those shares in payment of the stock option exercise price. UTMD repurchased 31,343 shares of stock in the open market at a cost of $921 during 1Q 2008.
Net property and equipment decreased $316 in 1Q 2009 after additions of $83 and a decrease in the dollar-denominated value of Ireland P&E and depreciation of $135. Goodwill resulting from prior acquisitions remained the same. Net intangible assets excluding goodwill decreased $6 as a result of $9 amortization of intellectual property offset by $3 additions to intangibles. At March 31, 2009, net intangible assets including goodwill were 18% of total assets compared to 19% at year-end 2008.
UTMD s long term liabilities are comprised of the Ireland note payable ($1,509 on March 31, 2009) and deferred income taxes ($405 on March 31, 2009). As of December 31, 2008, the respective long term liabilities were $1,828 and $420. The note payable, denominated in Euros, declined $319 in USD book value despite actual principal payments of $231 because the USD increased in value against the Euro. In Euros, the note declined 11% from €1,485 to €1,322 (both in thousands) during the quarter. As of March 31, 2009, UTMD s total debt ratio (total liabilities/ total assets) increased to 13% from 10% on December 31, 2008. UTMD s total debt ratio on March 31, 2008 was 17%.
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