UTAH MEDICAL
PRODUCTS, INC.
CORPORATE HEADQUARTERS |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRESS RELEASE UTMD
Reports Financial Performance for
Fourth Quarter Contact: Paul Richins Salt Lake City, Utah - Utah Medical Products, Inc.’s (Nasdaq: UTMD) financial results for 2007 were dragged down by a weak fourth quarter (4Q). A comparison of 4Q 2007 results to 4Q 2006 is accentuated by the fact that 4Q 2006 was the best quarter of 2006 in both sales and earnings per share (eps) performance, whereas 4Q 2007 was the lowest quarter in sales and second lowest quarter in eps in 2007. The primary difference in sales was due to a $182,000 shipment to China of blood pressure monitoring kits in 4Q 2006 that did not repeat in 4Q 2007, and a decline in shipments of Intran Plus intrauterine pressure catheters to U.S. hospitals of about $223,000. About 25% of the Intran Plus 4Q 2007 sales decline was due to unit price reductions. For the year, U.S. Intran Plus sales declined $926,000 or about 14%, while consolidated total UTMD sales declined only about $251,000. The decline in U.S. Intran Plus sales is primarily due to increased competition, including administrative restrictions of hospital group purchasing organizations (GPOs). In contrast, international sales of Intran Plus catheters in 2007 increased 33%.
Despite the negative comparisons to same periods in the record year of 2006, overall 2007 financial performance remained strong, and UTMD’s 2007 performance exceeded its 2005 performance in all income statement categories. On an absolute basis, although UTMD missed its earlier $1.99 eps projection for 2007, it met its profitability target for net profit margin. In 4Q 2007 and 2007 as a whole, UTMD achieved the following profit margins:
Domestic sales in 4Q 2007 were down 8%, while international sales were up 8% compared to 4Q 2006. Trade shipments from UTMD Ireland were down 10% in EURO terms, but up 2% in US Dollar terms because of a much weaker U.S. dollar. UTMD believes the decline in EURO terms was due to quarter-to-quarter fluctuations in international distributor stocking orders. New products introduced in 2007 and UTMD’s new distributor in Japan have not yet contributed in a significant way to sales. Comparing 4Q 2007 sales to 4Q 2006 sales in product categories, neonatal product sales were up 3%, obstetrics product sales were down 10%, gynecology/ electrosurgery product sales were down 8% and blood pressure monitoring/ components sales were up 2%. The decline in the obstetrics category is explained by the change in Intran Plus sales. More than half of the lower gyn/ electrosurgery 4Q 2007 sales were due to a large China distributor order which had to be held back for lack of prepayment. “UTMD’s Ireland subsidiary had a record year, meeting all of its goals measured in EURO terms. Although we did not meet our financial goals as a consolidated corporation, UTMD’s 2007 results demonstrated continued excellent overall performance. UTMD’s plans for 2008 include modest growth domestically due to increased acceptance of new products offsetting any continued decline in the mature products facing significant competition. We also expect continued strong growth in international demand aided by a continuing weak U.S. dollar and additional foreign distributors representing our products. Historically, UTMD’s business has not been affected by a recessionary environment, if that is what we face in 2008. However, in such an environment, we may be able to find more reasonably valued acquisitions which would augment financial performance. Of course, we expect to maintain the Company’s longstanding share repurchase program if UTMD stock prices dip below our expectation of a fair market value. Our vision remains focused on creating excellent long term shareholder value. We appreciate the continued confidence that our shareholders demonstrate in the Company’s prospects for future success.” Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected. Risk factors that could cause results to differ materially from those projected include market acceptance of products, timing of regulatory approval of new products, regulatory intervention in current operations, the Company’s ability to efficiently manufacture, market, and sell its products, among other factors that have been outlined in UTMD's public disclosure filings with the SEC.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utah
Medical Products, Inc. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME STATEMENT, Fourth Quarter (3 months ended
December 31) (in thousands except earnings per share) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales Gross Profit Operating Income Income Before Tax Net Income Earnings Per Share (EPS) Shares Outstanding (diluted) |
|
4Q 2006 $7,355 4,092 2,872 3,202 2,070 $0.513 4,033 |
Percent Change (3.8%) (5.4%) (8.5%) (8.5%) (5.6%) (4.0%) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME STATEMENT, Year (12 months ended
December 31) (in thousands except earnings per share) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales Gross Profit Operating Income Income Before Tax Net Income Earnings Per Share (EPS) Shares Outstanding (diluted) |
|
2006 $28,753 16,147 10,835 12,418 8,168 $2.020 4,043 |
Percent Change (0.9%) (2.2%) (0.7%) (3.1%) (3.2%) (1.9%) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET (in thousands) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|