Tue, Nov 12, 8:03 PM (90 days ago)
Utah Medical Products, Inc. (UTMD) reported a decline in both revenue and net income for the third quarter (3Q) and first nine months (9M) of 2024 compared to the same periods in 2023. 3Q revenue decreased by 20% to $10,005, while 9M revenue fell 16.2% to $31,745, primarily due to lower sales from key customers and product categories. Gross profit margins were negatively impacted by increased manufacturing overhead costs, although operating income margins improved slightly due to the end of amortization for a significant intangible asset. Net income for 3Q dropped 9.4% to $3,563, and for 9M decreased 11.1% to $10,972, with diluted earnings per share (EPS) down 5.2% and 8.7%, respectively. Cash flow from operations totaled $11,894, down from $16,949 in 9M 2023, influenced by lower net income and changes in working capital. UTMD's balance sheet remained strong, with total assets of $129,694, despite a decrease in cash and inventories. The company anticipates an overall revenue decline of 18-19% for 2024, citing ongoing challenges in sales and market conditions. Future strategies include focusing on product development and leveraging international operations for growth.