Business
UTMD Reports Financial Performance for Second Calendar Quarter and First Half 2022
SALT LAKE CITY, UT , July 26, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire --UTMD achieved second calendar quarter (2Q) and first half (1H) 2022 financial
About this update from Utah Medical Products, Inc.
[{"type":"text","content":"SALT LAKE CITY, UT , July 26, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire --UTMD achieved second calendar quarter (2Q) and first half (1H) 2022 financial results better than those anticipated in its beginning of year projections. 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. Because of the relatively short span of time, results for any given three-month period in comparison with a previous three-month period may not be indicative of comparative results for the year as a whole. Overview of Results In brief, UTMD was able to adjust to the challenges of rapidly rising variable costs in the 1H of 2022. The following is an income statement summary comparison of 2Q and 1H 2022 with 2Q and 1H 2021 according to U.S. Generally Accepted Accounting Principles (US GAAP): 2Q 1H (April – June) (January-June) Revenues (Sales):+ 7%+ 9%Gross Profit (GP):+ 5%+ 6%Operating Income (OI):+ 6% + 11% Income Before Tax (EBT):Net Income (NI):+ 8% + 20%+ 12% + 18%Earnings Per Share (EPS):+ 20%+ 18% The above comparisons of GP and OI indicate costs rising faster than revenues in 1H 2022. The expansion in EBT was due to better non-operating income. The high expansion in NI and EPS was due to comparison after a one-time negative income tax provision adjustment in the prior year as a result of a long-term tax rate change enacted in the UK in June 2021. For clarity, the above comparisons of NI and EPS according to US GAAP were affected by a long term deferred tax liability (DTL) adjustment on the balance of Femcare identifiable intangible assets (IIA) in 2Q 2021. As stockholders may remember, the DTL was initiated as part of the 2011 acquisition of Femcare because the expense from amortizing Femcare IIA, most of which is occurring over a fifteen-year time span from the acquisition date, is not tax-deductible in the UK. According to US GAAP, the future tax impact of a change in DTL must be recognized in the quarter in which a tax law change is enacted. In 2Q 2021, a $390 increase in DTL over the remaining five years of amortization occurred because in June 2021, UK parliament ratified an increase of the UK corporate income tax rate from 19...