Business
Utah Medical Products, Inc. Reports Financial Performance for First Quarter 2020
Salt Lake City, Utah, April 23, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- In the first calendar quarter (1Q) of 2020, Utah Medical Products, Inc. (Nasdaq:
About this update from Utah Medical Products, Inc.
[{"type":"text","content":"Salt Lake City, Utah, April 23, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- In the first calendar quarter (1Q) of 2020, Utah Medical Products, Inc. (Nasdaq: UTMD) attained results consistent with 1Q 2019, despite realizing a negative impact from the public response to the corona virus (COVID-19). \n Summary of results.The following is a summary comparison of 1Q 2020 with 1Q 2019 income statement measures: Revenues (Sales):+ 2%Gross Profit (GP):+ 1%Operating Income (OI): ( 6%)Net Income (NI): -Earnings Per Share (EPS): - According to CEO Kevin Cornwell,“In order to provide investors and other stakeholders with as much information as possible from which to make informed decisions, I would like to make the following comments. Despite 1Q 2020 overall higher sales and gross profits, those increases fell short of UTMD’s expectations due to a delay in “elective surgeries” resulting from COVID-19. Sales of the Filshie Clip System (Filshie devices) worldwide fell precipitously in March, and have continued that way in April. Filshie device sales were 36% of consolidated UTMD revenues in 2019, and were projected to grow in 2020 as a result of direct to end-user distribution in the US. Stockholders will recall that UTMD purchased the remaining exclusive U.S. distribution rights of Femcare Ltd’s Filshie devices from CooperSurgical Inc (CSI) in mid-1Q 2019. Consequently, 1Q 2020 U.S. Filshie device sales were up 83% on a comparative basis with 1Q 2019, but they should have been up more than that since UTMD sold directly for only about half of 1Q 2019 due to normal start-up distribution issues. The most important financial performance impact of the 1Q 2020 U.S. Filshie device sales shortfall was not being able to realize the expected expansion in GP Margin driven by direct end-user sales of Filshie devices in the U.S. The incremental GP obtained from U.S. Filshie sales in 1Q 2020 did not exceed the 1Q 2020 non-cash expense from amortizing the purchase price paid CSI. In addition, substantially lower Filshie device sales outside the U.S. (OUS) with higher than average GP Margins than other UTMD sales, further leveraged down in USD terms by weaker foreign currencies, also diminished UTMD’s expected consolidated 1Q 2020 GP Margin. In addition to delayed Filshie device implantations, we are concerned about patients foregoing other gynecological p...