Utah Medical Posts Q2 Financial Report

Utah Medical Products (NASDAQ:UTMD) shared their financial report for the second quarter of 2017.
As quoted in the press release:

UTMD’s consolidated 2Q 2017 gross profit margin (GPM), which was consistent with 1Q 2017, confirmed the substantial benefit from UTMD starting to distribute directly to established Femcare users in Canada and France.
In addition to the GPM improvement, UTMD’s Operating Income Margin (OIM) gained leverage from two other factors; 1) the 12% weaker GBP reduced Identifiable Intangible Asset (IIA) amortization expense $138 in USD terms out of a total reduction of $144 as the IIA were only GBP 4 lower, and 2) all other operating expenses (OE) were about 1% ($33) lower, as the increase in OE due to a new distribution facility in Canada ($99) was offset by the 12% weaker GBP when converting UK OE ($61) to USD and $40 lower U.S. acquisition expenses in 1H 2017 than in 1H 2016.
Net Income was further leveraged as a result of a consolidated income tax provision rate about two points lower than in the same periods in the prior year. On April 1, the UK corporate income tax rate declined from 20% to 19%. For foreign subsidiaries, the tax provision booked in consolidated results is based on taxable income in the applicable sovereignty, not based on U.S. GAAP Income Before Tax (EBT). As UTMD held about $16 million in cash in USD currency in Ireland and UK subsidiary bank accounts, and the USD weakened relative to the applicable native currency, the resulting translation loss for each subsidiary created a tax credit in those subsidiaries. In summary, although there was not a corresponding translation loss for consolidated UTMD results, which are obviously expressed in USD, there was a tax provision benefit.

Click here to read the full press release.

Source: www.marketwired.com