Business
UTMD Reports Audited Year 2019 and Fourth Quarter Financial Performance
SALT LAKE CITY, Jan. 30, 2020 (GLOBE NEWSWIRE) -- In the final calendar quarter (4Q) of 2019, Utah Medical Products, Inc. (Nasdaq: UTMD) began to realize
About this update from Utah Medical Products, Inc.
[{"type":"text","content":"SALT LAKE CITY, Jan. 30, 2020 (GLOBE NEWSWIRE) -- In the final calendar quarter (4Q) of 2019, Utah Medical Products, Inc. (Nasdaq: UTMD) began to realize accretive profits net of the quarterly amortization of the purchase price paid to CooperSurgical Inc. (CSI) for the acquisition of exclusive Filshie Clip System distribution rights in the U.S. The 4Q results allowed UTMD to meet its beginning of 2019 year projections to stockholders for the year as a whole.\n Currencies in this report are denoted as $ or USD = U.S. Dollars; AUD = Australia Dollars; GBP = UK Pound Sterling; EUR = Euros; and CAD = Canadian Dollars. Currency amounts are in thousands, except per share amounts and where noted. Summary of Financial ResultsIn USD terms, changes in 4Q and Year 2019 consolidated US GAAP income statement results compared to the same time periods in the prior calendar year were as follows: 4Q(October – December)Year(January – December)Revenues:+ 21%+12%Gross Profit:+ 28%+12%Operating Income: + 10% ( 6%)Net Income:+ 28% (21%)Earnings Per Share (EPS):+ 29% (20%) UTMD sales (revenue) growth in 2019 was higher than projected at the beginning of the year primarily because of an unexpected 89% increase in demand from UTMD’s largest OEM customer. The higher sales growth in 4Q 2019 compared to 4Q 2018 was primarily due to the fact that 4Q 2018 was the lowest quarter of Femcare Filshie Clip System sales to CSI in 2018. In comparison, 4Q 2019 UTMD direct sales to U.S. end users were 313% higher than the 4Q 2018 distributor sales to CSI. Gross Profit growth for the year 2019 was not leveraged more than the sales growth, as was expected, for two reasons: 1) UTMD had to sell off remaining CSI inventory for which the cost was the price at which CSI had previously purchased it from Femcare, and 2) a change in sales mix where 63% of UTMD’s growth in total sales came from OEM product sales and sales of blood pressure monitoring (BPM) kits to UTMD’s China distributor at lower gross profit margins (GPMs) than the average GPM from sales of finished medical devices to end users. The immediate financial benefit of UTMD’s purchase of the CSI exclusive U.S. distribution rights agreement effective February 1, 2019 was higher sales at end user prices instead of distributor prices and theoretically even higher gross profits, offset by higher operating expenses for ...