Utah Medical (UTMD) Q2 EPS Falls Y/Y on Lower Key Customer Sales

Core Insights - Utah Medical Products Inc. (UTMD) reported a second-quarter 2024 earnings per share (EPS) of $0.98, a 15.3$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$7 million in the year-ago quarter [5] - Total revenues for the quarter stood at $10.4 million, a 19.2$12.9 million in the second quarter of 2023 [10] - International sales were $4.6 million in the reported quarter, down 21.9$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$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$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$5.2 million in the year-ago quarter, while net income was $3.5 million, down 17.8$4.2 million a year ago [15] Operating Expenses - Total operating expenses in the reported quarter were $2.8 million, a 15$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]