NASDAQ$UTMD

Utah Medical Products Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Revenue decreased due to COVID-19 impact, but US domestic sales substantially recovered from Q2 2020.

Utah Medical Products reported a decrease in revenue for the third quarter of 2020 compared to the same period in 2019, primarily due to the impact of COVID-19 on medical procedures. However, U.S. domestic sales showed a substantial recovery from the previous quarter. The company's balance sheet remained strong with an absence of debt, and management focused on managing operating expenses while preserving resources for long-term growth.

  • Worldwide revenues decreased by 16.1% compared to Q3 2019.
  • Gross profit margin improved to 62.0% compared to 59.1% in Q3 2019.
  • Operating income decreased by 17.9% compared to Q3 2019.
  • Diluted EPS was $0.803 compared to $0.991 in Q3 2019.

Headline financials

Total Revenue

$10.5M

Previous: $12.5M-16.1%
EPS (adj)

$0.80

Previous: $0.99-19.2%
Current Ratio

15.8

No prior period
Days in Trade Receivables

36

No prior period
Average Inventory Turns

2.5

No prior period
Capital Expenditures

-$806K

Previous: -$252K-219.8%
Free Cash Flow

$2.13M

Previous: $3.45M-38.4%
Net Income

$2.93M

Previous: $3.71M-20.8%
Operating Income

$3.59M

Previous: $4.37M-17.9%
Gross Profit

$6.5M

Previous: $7.38M-12.0%
Cash & Equivalents

$46.3M

Previous: $37.4M+23.8%
Total Assets

$107M

Previous: $104M+2.9%
Stock-Based Comp

$49K

Previous: $29K+69.0%

Revenue & EPS history

Utah Medical · Revenue · Quarterly

$10.5M

Q3 2020-16.1%vs Q3 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

Unless governments again restrict medical care, we see the recovery trend continuing to be positive, so that 4Q 2020 is likely to be UTMD’s best revenue quarter of the year.

Tailwinds

  • UTMD believes that the lower sales are transitory
  • UTMD knows it can remain very profitable even at the lower sales levels experienced during the pandemic
  • UTMD has a significant cash reserve relative to operational needs
  • U.S. domestic sales substantially recovered from 2Q 2020
  • Sales outside the U.S. (OUS) have been slower to recover, they nevertheless were significantly higher in 3Q 2020 than in the dismal 2Q 2020

Headwinds

  • Worldwide revenues decreased by 16.1% compared to Q3 2019
  • Operating income decreased by 17.9% compared to Q3 2019
  • Diluted EPS was $0.803 compared to $0.991 in Q3 2019
  • Devices in the gynecology/ electrosurgery category were mostly classified as “nonessential” during the pandemic
  • Lower gross profits in 2020 were leveraged down further by higher IIA amortization expense absorbed by fewer sales

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 Q3 2020

Historical avgQ3 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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