Financial Performance - Total consolidated net sales for 2Q 2024 were $10,400, a decrease of 19.2% compared to $12,866 in 2Q 2023, with 1H 2024 sales at $21,740, down 14.4% from $25,386 in 1H 2023[20]. - Gross profit for 2Q 2024 was $6,253, reflecting a 19.2% decline from $7,739 in 2Q 2023, while 1H 2024 gross profit was $13,018, down 16.4% from $15,581 in 1H 2023[20]. - The decline in sales was primarily attributed to three categories: WW PendoTECH OEM (70% of 2Q decline), China BPM Distributor (21%), and WW Filshie Clip System (16%) contributing to a total decline of $2,639[21]. - UTMD expects a total sales decline of $6 million for the year 2024 compared to 2023 due to reduced sales to its major biopharmaceutical OEM customer[22]. - The gross profit margin for 2Q 2024 remained stable at 60.1%, consistent with 2Q 2023, despite a 19% decrease in sales[22]. - Total consolidated sales in 1H 2024 were $3,646 (14.4%) lower than in 1H 2023, with biopharma pressure monitoring device sales to PendoTECH down $2,788 (57.5%)[33]. - WW consolidated Filshie sales in 1H 2024 were $918 (14.2%) lower than in 1H 2023, with domestic Filshie sales down $362 (14.8%)[34]. - OUS sales in 1H 2024 were $9,718, compared to $11,184 in 1H 2023, reflecting a decline of 13.1%[35]. - Gross Profit in 1H 2024 was $2,563 (16.4%) lower than in 1H 2023, with a Gross Profit Margin of 59.9% compared to 61.4% in 1H 2023[40]. - Operating Income in 2Q 2024 was $3,438, down $987 (22.3%) from $4,425 in 2Q 2023, maintaining a margin of 33.1%[42]. - Consolidated EBT for 2Q 2024 was $4,211 million, representing 40.5% of sales, compared to $5,172 million (40.2% of sales) in 2Q 2023[51]. - Net Income in 2Q 2024 was $3,453 million, a 17.8% decrease from $4,200 million in 2Q 2023, attributed to lower Operating Income[55]. - Diluted EPS in 2Q 2024 were $0.978, down 15.3% from $1.154 in 2Q 2023, reflecting a decrease in Net Income[57]. - Adjusted consolidated EBITDA for 1H 2024 was $10,489 million, a 24.6% decrease from $13,916 million in 1H 2023, primarily due to lower gross profit[52]. Sales and Market Trends - Total OUS sales in 2Q 2024 were $4,569, a decrease of 21.8% from $5,849 in 2Q 2023, with significant declines in sales to distributors in Ireland and China[30]. - Domestic Filshie sales in 2Q 2024 were $165 (13.9%) lower compared to 2Q 2023, indicating challenges in maintaining sales levels[28]. - Domestic U.S. sales in 2Q 2024 were $5,831, down from $7,017 in 2Q 2023, representing a decline of 16.9%[31]. - Direct non-Filshie device sales represented 63% of total domestic sales, remaining relatively stable with only a $8 (0.2%) decrease[31]. - Domestic OEM sales were $1,013 (47.0%) lower, primarily due to a $1,124 decline in U.S. PendoTECH sales[31]. - The company projects 2024 sales to be 20-22% lower than in 2023 due to ongoing weakness in Filshie device sales and lack of orders from its largest OEM customer[38]. Expenses and Investments - Total Operating Expenses in 1H 2024 were $5,697, down from $6,717 in 1H 2023, with S&M expenses increasing to 4.4% of sales[43]. - Total consolidated G&A Operating Expenses in 2Q 2024 were $2,014 million, a decrease of $761 million compared to the same period in 2023[45]. - R&D expenses in 2Q 2024 were $255 million, significantly higher than $133 million in 2Q 2023, due to extensive validation studies required by biopharmaceutical manufacturers[46]. - The total cost of share repurchases in 1H 2024 was $9,393 million, with 138,215 shares repurchased at an average price of $67.96[59]. - Capital expenditures for property, plant, and equipment (PP&E) were $132 in 1H 2024, a decrease of 63.6% from $363 in 1H 2023[63]. Cash Flow and Financial Position - Ending cash and investments as of June 30, 2024, were $89.2 million, down from $92.9 million at the end of 2023, after paying $2.2 million in dividends and repurchasing $9.4 million of common stock[23]. - Net cash provided by operating activities in 1H 2024 was $8,038, down 32.5% from $11,828 in 1H 2023, primarily due to a $1,005 decrease in Net Income[62]. - Working capital was $98,383 at June 30, 2024, down from $101,559 at December 31, 2023, with cash balances comprising 91% of working capital[70]. - Total liabilities decreased by $1,165 to $5,980 as of June 30, 2024, with a total debt ratio of 4.6%[71]. - Total consolidated assets decreased by $5,425 to $130,032 as of June 30, 2024, compared to December 31, 2023[67]. Management and Future Outlook - UTMD's current backlog for WW PendoTECH shipments is approximately $450, with minimal new orders expected for the second half of 2024[26]. - Management plans to introduce high-pressure process control transducer configurations to biopharmaceutical manufacturers and continue product development in 2H 2024[72]. - EPS is expected to benefit from share repurchases, despite lower than projected revenues for the year[73]. - The average age of trade receivables was 32 days at June 30, 2024, compared to 24 days at December 31, 2023, indicating strong collection performance[66]. - UTMD's cash and investments decreased by $3,650 to $89,219, primarily due to cash used for stock repurchases and dividends[66].

Core Insights - Utah Medical Products Inc. (UTMD) reported a second-quarter 2024 earnings per share (EPS) of $0.98, a 15.3% decrease from $1.15 in the second quarter of 2023 [1] - The company experienced a notable decline in revenues and profits, primarily driven by significant reductions in sales to major customers and distributors, while maintaining healthy profit margins and continuing investments in share repurchases and dividends [2] Revenue Breakdown - Sales to UTMD's largest blood pressure monitoring (BPM) kit distributor in China were 39.3% lower in the second quarter of 2024 compared to the same quarter in 2023 [3] - Domestic sales were $5.8 million in the second quarter of 2024, a 16.9% decline from $7 million in the year-ago quarter [5] - Total revenues for the quarter stood at $10.4 million, a 19.2% decrease from $12.9 million in the second quarter of 2023 [10] - International sales were $4.6 million in the reported quarter, down 21.9% from $5.9 million in the year-ago quarter [13] Financial Performance - Gross profit for the second quarter of 2024 was $6.3 million, a 19.2% decrease from $7.7 million in the second quarter of 2023, with a gross profit margin of 60.1% [6] - Operating income was $3.4 million, down 22.3% from $4.4 million in the prior year quarter, with an operating income margin of 33.1% [6] - Income before tax (EBT) for the reported quarter was $4.2 million, an 18.6% decline from $5.2 million in the year-ago quarter, while net income was $3.5 million, down 17.8% from $4.2 million a year ago [15] Operating Expenses - Total operating expenses in the reported quarter were $2.8 million, a 15% decrease from $3.3 million a year ago [7] - Sales and Marketing (S&M) expenses increased to $0.5 million from $0.4 million in the year-ago quarter, while General and Administrative (G&A) costs decreased to $2 million from $2.8 million [14] Balance Sheet and Shareholder Returns - Total stockholders' equity was $124.1 million as of June 30, 2024, compared with $128.3 million at the end of December 2023, with a current ratio improving to 26.0 from 22.6 [8] - Cash and investments totaled $89.2 million, down from $92.9 million at the end of December 2023, with total assets at $130 million [16] - The company repurchased 95,107 shares at an average price of $67.33 per share and paid $1.1 million in dividends to stockholders during the second quarter of 2024 [17]

Company Overview - Utah Medical Products, Inc. (UTMD) has been initiated with a Neutral recommendation, highlighting its strong positioning in the medical device market while acknowledging challenges such as intense competition and the loss of a major OEM customer [1] - The company operates in the expanding medical device industry, driven by increasing chronic disease prevalence, an aging population, and rising demand for home healthcare [2] Financial Performance - In the first quarter of 2024, UTMD's international sales accounted for 45.4% of total revenues, indicating a well-diversified revenue stream and exposure to growth opportunities in emerging markets [3] - Despite increased litigation costs, UTMD improved its net income margin to 34.9% in Q1 2024 from 33.7% in Q1 2023, reflecting strong cost management [4] - The company reported a significant reduction in general and administrative expenses by 23.3% in Q1 2024 compared to Q1 2023 [4] - As of March 31, 2024, UTMD had $93.8 million in cash and investments, providing financial flexibility and stability due to the absence of debt [5] Shareholder Returns - UTMD has consistently returned value to shareholders through stock repurchases and cash dividends, repurchasing 43,108 shares and paying $1.1 million in cash dividends in Q1 2024 [6] Challenges - The termination of a significant OEM customer relationship led to a 9.4% sales decline in Q1 2024, with expectations of further revenue losses throughout 2024 due to the absence of new orders from this customer [7] - The company experienced a decline in both net sales and gross profit margins in Q1 2024, attributed to lower absorption of manufacturing overhead costs [8] - UTMD faces intense competition from industry giants, which may lead to pricing pressures and reduced margins [8] Market Position - UTMD's share price has declined significantly over the past year, reflecting investor concerns over recent challenges, despite trading at a discount compared to its peer group [9] - The current trading multiples suggest that while UTMD has recovery potential, its valuation remains constrained by uncertainties impacting future performance [9] Conclusion - While UTMD is well-positioned in a growing market with a strong product portfolio and solid financials, it faces significant hurdles that could impact future performance [10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) Utah 87-0342734 (State or other jurisdiction of incorpo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organizatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) Utah 87-0342734 (State or other jurisdiction of incorp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) Utah 87-0342734 (State or other jurisdiction of incorpor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) Utah 87-0342734 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 7043 South 300 West OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-12575 UTAH MEDICAL PRODUCTS INC (Exact name of Registrant as specified in its charter) Indicate by check mark whether the registrant is a ...