PRESS RELEASE
Utah
Medical Products, Inc.
Reports Financial Performance for
First Quarter 2006
April
19, 2006
Contact: Paul Richins
(801) 566-1200
Salt Lake City, Utah - Utah Medical Products,
Inc. (Nasdaq:UTMD) reports that all primary income statement measures of
financial performance in First Quarter (1Q) 2006 increased compared to 1Q
2005, according to the following table:
Sales |
+ 7%
|
Gross Profits |
+ 7% |
Operating Profits |
+ 3% |
Earnings before Taxes (EBT) |
+ 9% |
Net Income |
+ 3% |
Earnings per Share (EPS) |
+10% |
The increase in operating profits was smaller
than the growth in sales and gross profits because of higher operating
expenses from 1) an increase in sales & marketing expense due primarily to
an expanded sales force ($89,000), 2) higher legal fees and litigation
expenses ($58,000) and the non-cash expense ($43,000) associated with
expensing unvested stock options per SFAS 123R. However, the higher
operating expenses ($194,000 total increase) were largely offset by higher
non-operating income ($160,000) from the investment of cash balances.
Net income increased less than EBT due to a higher income tax provision in
1Q 2006. In 2005, UTMD was allowed a temporary tax deduction on repatriated
foreign earnings as a result of The American Jobs Creation Act of 2004.
However, a lower number of diluted shares used to calculate eps, as a result
of share repurchases since 1Q 2005, more than compensated for the higher
income tax provision. Compared to 1Q 2005, diluted outstanding shares used
for calculating 1Q 2006 eps were down 6%. Eps for 1Q 2006 were $.50. Eps for
1Q 2005 were $.46. Eps for the most recent twelve months were $1.85.
In 1Q 2006, UTMD achieved a gross profit margin of 56.4% and a net profit
margin of 28.7%. In 1Q 2005, those respective profit margins were 56.1% and
29.6%.
Comparing 1Q 2006 sales to 1Q 2005 sales in product categories, neonatal
product sales were up 35%, obstetrics product sales were unchanged,
gynecology/ electrosurgery product sales were up 10% and blood pressure
monitoring/ components sales were down 8%. Both domestic and international
sales were up 7%. Although trade shipments from Ireland were up 4% in EURO
terms, they were down 5% in US Dollar terms because of a stronger U.S.
dollar.
UTMD’s balance sheet remained strong. Compared to December 31, 2005, working
capital increased more than $0.9 million. Stockholders’ Equity increased
more than
$1.0 million even though dividends and share repurchases, which reduce
Stockholders’ Equity, totaled $1.1 million.
Financial ratios which may be of interest to shareholders follow:
1) Current Ratio = 9.3
2) Days in Receivables (based on 1Q sales activity) = 44
3) Average Inventory Turns (based on 1Q CGS) = 3.7
4) Year-to-Date ROE (after payment of dividends) = 17%
UTMD's dilution from unexercised option shares
added to actual weighted average outstanding shares for purposes of
calculating eps was 117,000 in 1Q 2006 compared to 230,000 in 1Q 2005. The
actual number of outstanding shares at the end of 1Q 2006 was 3,966,400
which included 1Q employee and outside director option exercises of 266,600
shares and 1Q share repurchases of 12,100. The average price paid by the
Company to repurchase shares in the open market during 1Q 2006 was $30.67
including commissions. The total number of outstanding unexercised options
at March 31, 2006 was about 280,000 shares at an average exercise price of
$17.75/ share, including shares awarded but not vested. This compares to
728,000 option shares outstanding at the end of 1Q 2005.
Risk factors that could cause results to differ materially in future
quarters 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. The SEC Form 10-Q for 1Q 2006 will
be filed with the SEC by May 10.
Utah Medical Products, Inc., with particular interest in health care for
women and their babies, develops, manufactures, assembles and markets a
broad range of disposable and reusable specialty medical devices designed
for better health outcomes for patients and their care-providers. For more
information about Utah Medical Products, Inc., visit UTMD's
website at www.utahmed.com.
|
Net Sales
Gross Profit
Operating Income
Income Before Tax
Net Income
Earnings Per Share (EPS)
Shares Outstanding (diluted) |
1Q
2006
$7,104
4,007
2,632
3,046
2,036
$0.500
4,070
|
1Q
2005
$6,652
3,734
2,552
2,806
1,969
$0.455
4,326 |
Percent
Change
+6.8%
+7.3%
+3.1%
+8.6%
+3.4%
+9.9% |
|
|
|
(unaudited) |
(audited) |
(unaudited) |
|
MAR
31, 2006 |
DEC
31, 2005 |
MAR 31, 2005 |
Assets |
|
|
|
Cash &
Investments |
$
17,423 |
$
17,453 |
$
16,525 |
Accounts
& Other Receivables, Net |
4,825 |
4,418 |
3,916 |
Inventories |
3,470 |
3,305 |
2,836 |
Other Current Assets |
655 |
682 |
945 |
Total Current Assets |
26,373 |
25,858 |
24,222 |
Property & Equipment,
Net |
8,258 |
8,160 |
8,774 |
Intangible Assets, Net |
7,612 |
7,624 |
7,662 |
Total Assets |
$ 42,243 |
$ 41,642 |
$ 40,658 |
|
|
|
|
Liabilities
&
Stockholders’ Equity |
|
|
|
Total Current Liabilities |
$
2,848 |
$
3,175 |
$
3,820 |
Note Payable |
5,251 |
5,336 |
0 |
Deferred Income Taxes |
257 |
274 |
753 |
Stockholders’ Equity |
33,887 |
32,857 |
36,085 |
Total Liabilities
&
|
$ 42,243 |
$ 41,642 |
$ 40,658 |
Stockholders’ Equity |
|