Business
UTMD Reports Audited Year 2022 and Fourth Quarter Financial Performance
SALT LAKE CITY, UT, Jan. 31, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Utah Medical Products, Inc. (Nasdaq: UTMD) finished the calendar year with a solid
About this update from Utah Medical Products, Inc.
[{"type":"text","content":"SALT LAKE CITY, UT, Jan. 31, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Utah Medical Products, Inc. (Nasdaq: UTMD) finished the calendar year with a solid fourth quarter (4Q) performance, which allowed financial results for the year 2022 exceeding management’s beginning of year projections, despite many challenges. 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. Overview of Results A summary comparison of 4Q and calendar year 2022 income statement measures with the same periods of 2021 follows: 4Q Year 2022 to 2021 Comparison (October–December) (January-December) Revenues (Sales):+5%+7% Gross Profit (GP):+3%+4% Operating Income (OI):(1%)+5% Income Before Tax (EBT):+8%+8% Net Income (NI):+10%+11% Earnings Per Share (EPS):+11%+12% Sales invoiced in foreign currencies, which represented 25% of total consolidated sales (when expressed in USD) during 2022, were substantially diminished by a stronger USD. Using the same foreign currency exchange (FX) rates as in the prior year (“constant currency” sales), revenues in 4Q 2022 were up 9%, and for the 2022 year were up almost 10%. Profit margins in 4Q and year 2022 compared to 4Q and year 2021 follow: 4Q 20224Q 20212022 2021 (Oct – Dec)(Oct-Dec)(Jan–Dec)(Jan–Dec)Gross Profit Margin (GP/ sales):61.30%62.80%61.60%63.00%Operating Income Margin (OI/ sales):37.30%39.70%37.90%38.50%Income Before Tax Margin (EBT/ sales):41.20%40.10%39.50%38.90%Net Income Margin (US GAAP)¹:33.60%32.00%31.50%30.10%Net Income Margin (Non-US GAAP)²:33.60%32.00%31.50%30.90% ¹ The Net Income Margin is NI (after subtracting a provision for income taxes) divided by sales. ² A deferred tax liability (DTL) adjustment occurred in 2Q 2021 that is the difference in US GAAP and Non-US GAAP annual Net Income Margin. Please see the explanation below. UTMD’s GP Margin (GPM) was primarily diluted from proportionately greater variable manufacturing costs, including raw materials, incoming freight, sterilization and direct labor, than UTMD’s price increases for goods sold to customers. UTMD’s OI Margin, in addition to incorporating the lower GPM, was impacted by substantial legal costs which did not occur in...