NASDAQ$UTMD

Utah Medical Products Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Utah Medical experienced a decline in financial performance due to the COVID-19 pandemic's impact on elective medical procedures.

Utah Medical Products Inc. reported a significant decrease in sales, gross profit, and net income for the second quarter of 2020 compared to the same period in 2019, primarily due to the COVID-19 pandemic's impact on elective medical procedures. Despite the challenges, the company maintained profitability and a solid financial position.

  • Second quarter sales decreased by 25.8% compared to the prior year due to the COVID-19 pandemic.
  • Gross profit declined by 34% due to increased manufacturing costs and lower absorption of overhead.
  • Operating income decreased by 56% due to lower sales and gross profit.
  • Net income decreased by 62.8% due to lower operating income and a deferred tax liability increase.

Headline financials

Total Revenue

$8.79M

Previous: $11.8M-25.8%
EPS (adj)

$0.36

Previous: $0.94-61.7%
Current Ratio

16.4

No prior period
Days in Trade Receivables

39

No prior period
Average Inventory Turns

2.3

No prior period
Capital Expenditures

-$711K

Previous: -$130K-446.9%
Free Cash Flow

$602K

Previous: $3.4M-82.3%
Net Income

$1.31M

Previous: $3.53M-62.8%
Operating Income

$1.98M

Previous: $4.48M-55.9%
Gross Profit

$4.95M

Previous: $7.5M-34.0%
Cash & Equivalents

$42.4M

Previous: $32.9M+28.8%
Total Assets

$104M

Previous: $103M+0.2%
Stock-Based Comp

$49K

Previous: $28K+75.0%

Revenue & EPS history

Utah Medical · Revenue · Quarterly

$8.79M

Q2 2020-25.8%vs Q2 2019

Revenue by segment

Utah Medical · $7.98M total across 3 segments · Q1 2022

  • Direct Sales
    $3.99M
  • OEM Sales
    $2.72M+42.6%
  • Filshie Device Sales
    $1.28M

Forward guidance

The company anticipates a potential recovery in OUS sales and focuses on managing costs and maintaining a strong financial position.

Tailwinds

  • Medical need for UTMD's specialized devices has neither decreased nor increased because of the appearance of the corona virus.
  • UTMD's financial position is strong.
  • Company maintained substantial profitability even during a “shutdown” of certain medical procedures in 2Q 2020.
  • UTMD is well-positioned to produce and distribute devices to medical facilities on demand.
  • 2Q 2020 EBITDA at 43.2% of sales represents a functionally healthy company.

Headwinds

  • The Company’s financial performance in the second calendar quarter (2Q) and first half (1H) of 2020 reflects a substantial negative change relative to the same periods in 2019.
  • UTMD just had a bad quarter.
  • USD sales in 2020 continued to be hampered by a stronger USD compared to other currencies.
  • The medical procedure shutdowns started in Europe before the U.S.
  • After experiencing a nice increase in June and early July Filshie sales, demand seems to have slowed again as I write this report in mid-July.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.7%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+6.8%

Q2 2019

Best reaction

-11.7%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-4.3%-7.5%
Q4 2025+1.2%+1.9%+9.5%
Q3 2025-1.1%-1.9%-6.0%
Q1 2025-0.2%+0.9%+4.3%
Q4 2024-1.8%-4.6%-6.9%
Q3 2024-0.3%-0.2%+1.4%
Q2 2024-7.4%-7.2%-8.6%
Q1 2024-1.8%-1.4%-0.2%
Q4 2023-4.3%-7.0%-15.2%
Q3 2023-3.1%+0.0%+4.2%
Q2 2023+0.0%+0.5%-2.8%
Q1 2023+0.8%+0.8%-0.6%
Q4 2022+3.9%+5.5%+4.7%
Q3 2022+3.5%-1.3%-0.1%
Q2 2022+3.6%+6.3%+6.7%
Q1 2022-1.2%-3.1%-4.6%
Q4 2021-3.4%-0.3%-5.9%
Q3 2021+4.7%+1.7%+30.7%
Q2 2021+0.2%+2.9%-0.2%
Q1 2021+0.6%+0.8%-0.4%
Q4 2020+3.5%+5.7%+0.8%
Q3 2020-3.4%-1.7%+6.3%
Q2 2020-5.3%-7.6%-6.7%
Q1 2020-1.8%+4.5%+11.7%
Q4 2019-11.7%-13.9%-16.2%
Q3 2019+1.1%+7.1%+9.2%
Q2 2019+6.8%+9.3%+15.6%
Q1 2019-0.8%-1.5%-5.2%
Q4 2018+3.4%+5.1%-5.2%
Q3 2018+0.7%+1.7%+8.8%
Q2 2018-1.7%+2.1%-5.8%
Q1 2018-2.2%-2.7%-2.7%
Q4 2017-0.2%+0.2%-3.0%
Q3 2017+0.3%+1.1%+6.6%
Q2 2017-0.4%-2.7%-1.1%
Q1 2017+0.4%-0.2%+3.7%
Q4 2016-1.2%+1.0%+1.1%
Q3 2016+0.8%+1.1%+10.4%
Q2 2016-1.3%-2.0%-2.6%
Q1 2016+1.8%
Q4 2015+0.9%
Q3 2015+4.6%
Q2 2015-3.2%
Q1 2015+2.1%
Q4 2014-4.7%
Q3 2014-0.0%
Q2 2014+2.8%
Q1 2014-6.5%
Q4 2013+1.4%
Q3 2013-0.7%
Q2 2013+0.7%
Q1 2013+3.6%
Q4 2012+6.8%
Q4 2011+6.8%
Q3 2012+1.9%
Q2 2012-0.1%
Q1 2011-0.1%
Q1 2012-0.7%
Q4 2009-0.8%
Q3 2010-2.3%
Q3 2011-2.3%
Q4 2010-1.4%
Q2 2011-1.4%
Q2 2010-1.4%
Q1 2010+4.4%

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