Utah Medical Products, Inc. (UTMD) reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales totaled $10,005,000, a decrease of 20.0% from $12,505,000 in Q3 2023. Similarly, net sales for the nine months ended September 30, 2024, were $31,745,000, down 16.2% from $37,891,000 in the prior year. The decline in sales was attributed primarily to a significant drop in sales to major OEM customer PendoTECH, which accounted for 73% of the year-to-date sales decrease.

Gross profit for Q3 2024 was $5,802,000, reflecting a 21.2% decrease from $7,359,000 in Q3 2023. For the nine-month period, gross profit fell to $18,820,000, down 18.0% from $22,940,000. Operating income also declined, with Q3 2024 reporting $3,343,000, a 15.8% decrease from $3,969,000 in Q3 2023, and a nine-month operating income of $10,664,000, down 16.9% from $12,833,000.

Net income for Q3 2024 was $3,563,000, a 9.4% decline from $3,935,000 in Q3 2023. For the nine months, net income decreased by 11.1% to $10,972,000 from $12,349,000. Basic and diluted earnings per share for Q3 2024 were both $1.02, down from $1.08 in the same quarter of 2023. For the nine-month period, EPS decreased to $3.10 from $3.40.

The company’s operating expenses as a percentage of sales improved, with total operating expenses at 24.6% in Q3 2024 compared to 27.1% in Q3 2023. This was attributed to a reduction in non-operating expenses and effective cost management strategies.

UTMD's balance sheet showed a strong position with a current ratio improvement and lower total liabilities compared to the end of 2023. The company repurchased 48,905 shares for $3,164,000 after September 30, 2024, as part of its strategy to maximize shareholder value. The total cash returned to stockholders in the first nine months of 2024 was $16,481, significantly higher than $3,211 in the same period of 2023.

Looking ahead, UTMD anticipates a further decline in revenues and net income for 2024, projecting an 18% to 19% decrease compared to earlier estimates. The company plans to introduce new products and leverage existing distribution channels to mitigate these challenges.

About UTAH MEDICAL PRODUCTS INC

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