Utah Medical Products, Inc. Reports Financial Performance for First Quarter 2021
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Salt Lake City, Utah, April 22, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Because of the aberration in results which began in March 2020 due to the impact of restrictions on “nonessential” medical procedures, Utah Medical Products, Inc. (Nasdaq: UTMD) will report 2021 quarterly income statement results compared to the same periods in both 2020 and 2019. Please see the income statement on the last page.
Currencies in this release are denoted as $ or USD = U.S. Dollars; AUD = Australia Dollars; £ or GBP = UK Pound Sterling; C$ or CAD = Canadian Dollars; and € or EUR = Euros. Currency amounts throughout this report are in thousands, except per share amounts and where noted.
Summary of Results
Despite very weak demand for UTMD’s devices in January 2021 due to renewed lockdowns after steady improvements in medical device demand during 2020 after the second calendar quarter (2Q), first calendar quarter (1Q) 2021 sales, gross profits and operating profits were all higher for the full quarter compared to 1Q 2020. Stockholders will remember that in 1Q 2020, the impact of restrictions imposed due to the corona virus pandemic began in March. Because the negative impact on UTMD was at its worst in 2Q 2020, UTMD expects substantially better comparative results for 2Q 2021. The following is a summary comparison of 1Q 2021 with 1Q 2020 income statement measures:
| Revenues (Sales): | + 1% |
| Gross Profit (GP): | + 2% |
| Operating Income (OI): | + 1% |
| Income Before Tax (EBT): | (2%) |
| Net Income (NI): | (4%) |
| Earnings Per Share (EPS): | (2%) |
Sales invoiced in foreign currencies were helped by a weaker USD. Despite the higher OI, 1Q 2021 EBT was lower as a result of much less non-operating income, i.e. less interest received on UTMD’s cash reserves. The NI change was lowered further by a higher estimated consolidated income tax provision rate, due to a greater share of EBT coming in higher-taxed sovereignties such as the U.S. On the other hand, EPS was helped by UTMD share repurchases during 2020.
Profit margins in 1Q 2021 compared to 1Q 2020 follow:
| 1Q 2021 (JAN – MAR) | 1Q 2020 (JAN – MAR) | |
| Gross Profit Margin (GP/ sales): | 63.4% | 62.7% |
| Operating Income Margin (OI/ sales): | 35.5% | 35.4% |
| EBT Margin (EBT/ sales): | 35.6% | 36.6% |
| Net Income Margin (NI/ sales): | 27.6% | 28.8% |
UTMD’s March 31, 2021 Balance Sheet, in the absence of debt, continued to strengthen. Ending Cash and Investments were $56.0 million on March 31, 2021 compared to $51.6 million on December 31, 2020, after paying $1.0 million in cash dividends to stockholders during 1Q 2021. Stockholders’ Equity (SE) increased $2.1 million in the three month period from December 31, 2020 despite the fact that dividends reduce SE. Compared to March 31, 2020, cash increased $16.4 million and SE increased $10.5 million.
Foreign currency exchange (FX) rates for Balance Sheet purposes are the applicable rates at the end of each reporting period. The FX rates from the applicable foreign currency to USD for assets and liabilities at the end of 1Q 2021 and the end of 1Q 2020 follow:
3-31-21 3-31-20 Change
GBP 1.380 1.245 10.8%
EUR 1.174 1.102 6.5%
AUD 0.761 0.614 24.0%
CAD …
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