Achieves Profitability Records in Third Quarter 2002
Contact: Paul Richins
Salt Lake City, Utah - Utah Medical Products, Inc. (Nasdaq:UTMD) reports results for Third Quarter (3Q) 2002 that are accurate and meet the provisions of Generally Accepted Accounting Principles.
In the 3Q 2002, UTMD achieved the following profitability
records for a calendar quarter:
The record profit margins were achieved from sales which grew 3% relative to 3Q 2001, UTMD’s best increase in quarter over prior year’s same quarter total revenues in the last three years. Due to lower expenses in every operating expense category, record GPM and higher sales, operating income dollars increased 16% in 3Q 2002 compared with 3Q 2001, and 13% for the first nine months (9YTD) of 2002 compared with 9YTD 2001.
UTMD’s 3Q 2002 net income increased 23% to $1,883,000,
compared to 3Q 2001 net income of $1,532,000. Several factors contributed to
the disproportionate increase in net profits:
Earnings per share (eps) in 3Q 2002 also increased 23%, to $.36 compared to $.29 in 3Q 2001. The number of diluted outstanding shares used to calculate eps remained about the same compared to 3Q 2001 because the number of shares added for dilution from options as a result of exercises and a higher share price was offset by 203,900 shares repurchased by the Company during the last four calendar quarters. Eps for 9YTD of 2002 were $1.01 compared to 9YTD 2001 eps of $.85, a 19% increase in year-to-date eps.
UTMD concluded its nineteenth consecutive quarter of higher eps compared to the same quarter in the prior year, during which 4¾ year time span eps have grown at a compounded rate of 22% per year. Eps for the most recent four calendar quarters (LTM) were $1.30.
UTMD’s earnings before interest and income tax expenses and before non-cash depreciation/amortization expenses (EBITDA), were $3,167,000 and $9,172,000 in 3Q and 9YTD 2002, compared to $3,015,000 and $8,857,000 in 3Q and 9YTD 2001, respectively. LTM EBITDA were $12,097,000. LTM EBITDA were 44% of sales.
Changes in UTMD’s Balance Sheet demonstrated a continued
significant financial strengthening during 3Q 2002. In the presence of
higher sales activity, accounts receivable, inventories, net fixed assets
and liabilities all declined, while cash and stockholders’ equity increased,
even after using $1,732,000 in cash to repurchase 126,400 shares, which
reduced net worth as well as cash balances. Financial ratios as of September
30, 2002 which may be of interest to investors include UTMD’s
The 10-Q for the third quarter will be filed with the SEC by November 15, and will be available for direct access on the Internet for shareholders by linking through UTMD’s website www.utahmed.com.
Utah Medical Products, Inc., with particular interest in healthcare for women and their babies, develops, manufactures, assembles and markets a broad range of disposable and reusable specialty medical devices designed for better health outcomes for patients and their care-providers.
Utah Medical Products, Inc.
(in thousands except earnings per share data)
Third Quarter ended September 30
|Percent Change||3Q 2002||3Q 2001|
|Net Sales||+ 3.2%||$ 7,005||$ 6,791|
|Gross Profit||+ 4.7%||4,079||3,896|
|Income Before Tax||+16.8%||2,888||2,472|
|Diluted Earnings Per Share||+23.1%||$ .358||$ .291|
|Shares Outstanding (diluted)||5,261||5,268|
|Nine Months Ended September 30|
|Percent Change||9YTD 2002||9YTD 2001|
|Net Sales||+ 1.8%||$ 20,510||$ 20,152|
|Gross Profit||+ 2.0%||11,812||11,581|
|Income Before Tax||+17.0%||8,250||7,051|
|Diluted Earnings Per Share||+19.0%||$ 1.009||$ .848|
|Shares Outstanding (diluted)||5,331||5,193|