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Utah Medical Products Reports Financial Performance for Second Quarter 2018
Jul. 24, 2018 09:32AM PST
Medical Device InvestingUtah Medical Products (NASDAQ:UTMD) has announced its second quarter and first half of 2018 financial results. As quoted in the press release: Despite noticeable increases in raw material costs, higher production wages and a stronger EUR affecting Ireland manufacturing costs when converted to USD, UTMD’s consolidated 2018 gross profit margins (GPMs) were consistent with the …
Utah Medical Products (NASDAQ:UTMD) has announced its second quarter and first half of 2018 financial results.
As quoted in the press release:
Despite noticeable increases in raw material costs, higher production wages and a stronger EUR affecting Ireland manufacturing costs when converted to USD, UTMD’s consolidated 2018 gross profit margins (GPMs) were consistent with the prior year 2017. This was due to improved manufacturing planning, lower overheads and some price increases.
UTMD’s Operating Income Margin (OIM) was squeezed by the stronger EUR and GBP. OUS Operating Expenses (OE) were 8.5% higher in 1H 2018 compared to 1H 2017. For example, the 9.2% stronger GBP increased the same GBP Identifiable Intangible Asset (IIA) amortization expense $93 in USD terms which was 58% of the total $162 increase in OUS OE. U.S. OE increased $48 (+2.7%).
Net Income was leveraged because of 1) non-operating income of $418 as a result of the sale of a no longer needed remote storage facility in Utah and a $32 gain from the sale of an investment asset, and 2) a lower U.S. federal income tax rate. The lower U.S. corporate income tax rate was offset in part by lower currency translation losses in foreign subsidiary cash balances (i.e. foreign subsidiary tax provision rates were higher). 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).
Earnings Per Share (EPS) for the most recent twelve months (TTM) were $2.53 per U.S. GAAP. This includes the 4Q 2017 recognition of a $6,288 one-time U.S. and Utah repatriation tax (REPAT) on foreign subsidiary cash and cumulative earnings (E&P) resulting from the “Tax Cuts and Jobs Act” enacted in December 2017. Excluding the REPAT tax, TTM EPS were $4.15.
Excluding the noncash effects of depreciation, amortization of intangible assets and stock option expense, TTM consolidated earnings before taxes, excluding the remeasured bank balance currency loss or gain and interest expense (EBITDA), were $22,864. 1H 2018 EBITDA were $12,122 compared to $11,236 in 1H 2017.
