For quarter ended: June 30, 2015
|
Commission File No. 001-12575
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UTAH
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87-0342734
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Registrant's telephone number:
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(801) 566-1200
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Large accelerated filer o
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Accelerated filer x
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Non-accelerated filer o
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Smaller reporting company o
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PART I - FINANCIAL INFORMATION
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PAGE | ||
Item 1.
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Financial Statements
|
||
Consolidated Condensed Balance Sheets as of June 30, 2015 and December 31, 2014
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1
|
||
Consolidated Condensed Statements of Income for the three and six months ended June 30, 2015 and June 30, 2014
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2
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Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2015 and June 30, 2014
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3
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Notes to Consolidated Condensed Financial Statements
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4
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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6
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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15
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Item 4.
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Controls and Procedures
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15
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PART II – OTHER INFORMATION
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|||
Item 1.
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Legal Proceedings
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16
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Item 1A.
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Risk Factors
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16
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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18
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Item 6.
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Exhibits
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19
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SIGNATURES
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19 |
Item 1. Financial Statements
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||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS AS OF
|
||||||||
JUNE 30, 2015 AND DECEMBER 31, 2014
|
||||||||
(in thousands)
|
||||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
JUNE 30,
2015
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DECEMBER 31,
2014
|
||||||
Current assets:
|
||||||||
Cash
|
$ | 19,169 | $ | 19,274 | ||||
Investments, available-for-sale
|
59 | 58 | ||||||
Accounts & other receivables, net
|
5,613 | 4,703 | ||||||
Inventories
|
4,473 | 4,872 | ||||||
Other current assets
|
662 | 768 | ||||||
Total current assets
|
29,976 | 29,675 | ||||||
Property and equipment, net
|
7,746 | 8,236 | ||||||
Goodwill
|
15,216 | 15,145 | ||||||
Other intangible assets
|
40,015 | 39,675 | ||||||
Other intangible assets - accumulated amortization
|
(13,023 | ) | (11,655 | ) | ||||
Other intangible assets, net
|
26,992 | 28,020 | ||||||
Total assets
|
$ | 79,930 | $ | 81,076 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 932 | $ | 929 | ||||
Accrued expenses
|
4,401 | 4,148 | ||||||
Current portion of notes payable
|
- | 3,894 | ||||||
Total current liabilities
|
5,333 | 8,971 | ||||||
Notes payable
|
- | 973 | ||||||
Deferred tax liability - intangible assets
|
5,370 | 5,581 | ||||||
Deferred income taxes
|
1,034 | 995 | ||||||
Total liabilities
|
11,737 | 16,520 | ||||||
Stockholders' equity:
|
||||||||
Preferred stock - $.01 par value; authorized - 5,000 shares; no shares issued or outstanding
|
- | - | ||||||
Common stock - $.01 par value; authorized - 50,000 shares; issued - June 30, 2015, 3,757 shares and December 31, 2014, 3,748 shares
|
38 | 37 | ||||||
Accumulated other comprehensive income (loss)
|
(3,408 | ) | (3,234 | ) | ||||
Additional paid-in capital
|
3,029 | 2,890 | ||||||
Retained earnings
|
68,534 | 64,863 | ||||||
Total stockholders' equity
|
68,193 | 64,556 | ||||||
Total liabilities and stockholders' equity
|
$ | 79,930 | $ | 81,076 |
UTAH MEDICAL PRODUCTS, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME FOR THE
|
||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND JUNE 30, 2014
|
||||||||||||||||
(in thousands, except per share amounts - unaudited)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended | |||||||||||||||
June 30,
|
June 30, | |||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Sales, net
|
$ | 10,397 | $ | 10,491 | $ | 20,630 | $ | 20,318 | ||||||||
Cost of goods sold
|
4,298 | 4,142 | 8,419 | 7,919 | ||||||||||||
Gross profit
|
6,099 | 6,349 | 12,211 | 12,399 | ||||||||||||
Operating expense
|
||||||||||||||||
Selling, general and administrative
|
1,992 | 2,172 | 4,071 | 4,256 | ||||||||||||
Research & development
|
140 | 115 | 296 | 238 | ||||||||||||
Total operating expenses
|
2,132 | 2,287 | 4,367 | 4,494 | ||||||||||||
Operating income
|
3,967 | 4,062 | 7,844 | 7,905 | ||||||||||||
Other income (expense)
|
(43 | ) | (132 | ) | (252 | ) | (193 | ) | ||||||||
Income before provision for income taxes
|
3,924 | 3,930 | 7,592 | 7,712 | ||||||||||||
Provision for income taxes
|
1,006 | 1,096 | 2,006 | 2,156 | ||||||||||||
Net income
|
$ | 2,918 | $ | 2,834 | $ | 5,586 | $ | 5,556 | ||||||||
Earnings per common share (basic)
|
$ | 0.78 | $ | 0.76 | $ | 1.49 | $ | 1.48 | ||||||||
Earnings per common share (diluted)
|
$ | 0.77 | $ | 0.75 | $ | 1.48 | $ | 1.47 | ||||||||
Shares outstanding - basic
|
3,755 | 3,750 | 3,753 | 3,750 | ||||||||||||
Shares outstanding - diluted
|
3,773 | 3,775 | 3,775 | 3,778 | ||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Foreign currency translation net of taxes of $0 in all periods
|
$ | 2,360 | $ | 859 | $ | (175 | ) | $ | 1,110 | |||||||
Unrealized gain (loss) on investments net of taxes of $2, ($0), $0 and ($2)
|
2 | (0 | ) | 1 | (3 | ) | ||||||||||
Total comprehensive income
|
$ | 5,280 | $ | 3,693 | $ | 5,412 | $ | 6,663 |
UTAH MEDICAL PRODUCTS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
|
||||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND JUNE 30, 2014
|
||||||||
(in thousands - unaudited)
|
||||||||
Six Months Ended
June 30,
|
||||||||
2015
|
2014
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 5,586 | $ | 5,556 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation
|
301 | 311 | ||||||
Amortization
|
1,259 | 1,376 | ||||||
(Gain) loss on investments
|
- | - | ||||||
Provision for (recovery of) losses on accounts receivable
|
(9 | ) | 6 | |||||
(Gain) loss on disposal of assets
|
1 | 4 | ||||||
Deferred income taxes
|
(213 | ) | (282 | ) | ||||
Stock-based compensation expense
|
44 | 24 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(828 | ) | (1,016 | ) | ||||
Accrued interest and other receivables
|
(81 | ) | (31 | ) | ||||
Inventories
|
218 | (472 | ) | |||||
Prepaid expenses and other current assets
|
104 | 118 | ||||||
Accounts payable
|
5 | 91 | ||||||
Accrued expenses
|
(654 | ) | 75 | |||||
Total adjustments
|
147 | 204 | ||||||
Net cash provided by operating activities
|
5,733 | 5,760 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital expenditures for:
|
||||||||
Property and equipment
|
(109 | ) | (836 | ) | ||||
Intangible assets
|
(7 | ) | - | |||||
Net cash provided by (used in) investing activities
|
(116 | ) | (836 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from issuance of common stock - options
|
245 | 271 | ||||||
Common stock purchased and retired
|
(215 | ) | (818 | ) | ||||
Payment of taxes for exchange of stock options
|
(42 | ) | - | |||||
Tax benefit attributable to exercise of stock options
|
107 | 120 | ||||||
Repayment of notes payable
|
(4,778 | ) | (2,035 | ) | ||||
Payment of dividends
|
(957 | ) | (938 | ) | ||||
Net cash provided by (used in) financing activities
|
(5,640 | ) | (3,400 | ) | ||||
Effect of exchange rate changes on cash
|
(82 | ) | 20 | |||||
Net increase (decrease) in cash and cash equivalents
|
(105 | ) | 1,544 | |||||
Cash at beginning of period
|
19,274 | 14,395 | ||||||
Cash at end of period
|
$ | 19,169 | $ | 15,939 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for income taxes
|
$ | 2,781 | $ | 1,551 | ||||
Cash paid during the period for interest
|
65 | 167 |
June 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
Finished goods
|
$ | 1,554 | $ | 1,847 | ||||
Work-in-process
|
1,101 | 1,103 | ||||||
Raw materials
|
1,818 | 1,922 | ||||||
Total
|
$ | 4,473 | $ | 4,872 |
2Q 2015
|
2Q 2014
|
|||||||
Balance, beginning of period
|
$
|
8
|
$
|
5
|
||||
Realized loss from securities included in beginning balance
|
-
|
-
|
||||||
Gross unrealized holding gains (losses), in equity securities
|
4
|
(0)
|
||||||
Deferred income taxes on unrealized holding (gain)loss
|
(2)
|
0
|
||||||
Balance, end of period
|
$
|
10
|
$
|
5
|
Fair Value Measurements Using
|
||||||||||||||||
Description
|
Total Fair Value
at 6/30/2015
|
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3 )
|
||||||||||||
Equities
|
$
|
59
|
$
|
59
|
$
|
0
|
$
|
0
|
2Q 2015 | 2Q 2014 |
change
|
1H 2015 | 1H 2014 |
change
|
|||||||||||||||||||
Net Sales
|
$ | 10,397 | $ | 10,491 | (0.9 | %) | $ | 20,630 | $ | 20,318 | +1.5 | % | ||||||||||||
Gross Profit
|
6,099 | 6,349 | (3.9 | %) | 12,211 | 12,399 | (1.5 | %) | ||||||||||||||||
Operating Income
|
3,967 | 4,062 | (2.3 | %) | 7,844 | 7,905 | (0.8 | %) | ||||||||||||||||
Income Before Tax
|
3,924 | 3,930 | (0.1 | %) | 7,592 | 7,712 | (1.6 | %) | ||||||||||||||||
Net Income
|
2,918 | 2,834 | +3.0 | % | 5,586 | 5,556 | +0.5 | % | ||||||||||||||||
Earnings per Diluted Share
|
.773 | .751 | +3.0 | % | 1.480 | 1.470 | +0.6 | % |
2Q 2015 | 2Q 2014 |
change
|
1H2015 | 1H 2014 |
change
|
|||||||||||||||||||
GBP
|
1.531 | 1.682 | (9.0 | %) | 1.522 | 1.669 | (8.8 | %) | ||||||||||||||||
EUR
|
1.110 | 1.370 | (18.9 | %) | 1.114 | 1.371 | (18.7 | %) | ||||||||||||||||
AUD
|
0.778 | 0.933 | (16.5 | %) | 0.781 | 0.917 | (14.8 | %) |
2Q 2015 | 2Q 2014 | 1H 2015 | 1H 2014 | |||||||||||||
Gross Profit Margin (gross profit/ sales):
|
58.7 | % | 60.5 | % | 59.2 | % | 61.0 | % | ||||||||
Operating Income Margin (operating profit/ sales):
|
38.2 | % | 38.7 | % | 38.0 | % | 38.9 | % | ||||||||
EBT Margin (profit before income taxes/ sales):
|
37.7 | % | 37.5 | % | 36.8 | % | 38.0 | % | ||||||||
Net Income Margin (profit after taxes/ sales):
|
28.1 | % | 27.0 | % | 27.1 | % | 27.3 | % |
June 30, 2015
|
June 30, 2014
|
change
|
||||||||||
GBP
|
1.573 | 1.710 | (8.1 | %) | ||||||||
EUR
|
1.115 | 1.369 | (18.5 | %) | ||||||||
AUD
|
0.770 | 0.943 | (18.3 | %) |
2Q 2015 | 2Q 2014 | 1H 2015 | 1H 2014 | |||||||||||||
Obstetrics
|
$ | 1,174 | $ | 1,134 | $ | 2,309 | $ | 2,303 | ||||||||
Gynecology/ Electrosurgery/ Urology
|
5,758 | 6,282 | 11,712 | 12,403 | ||||||||||||
Neonatal
|
1,680 | 1,538 | 3,213 | 2,810 | ||||||||||||
Blood Pressure Monitoring and Accessories*
|
1,785 | 1,537 | 3,396 | 2,802 | ||||||||||||
Total:
|
$ | 10,397 | $ | 10,491 | $ | 20,630 | $ | 20,318 |
2Q 2015 | 2Q 2014 | 1H 2015 | 1H 2014 | |||||||||||||
Obstetrics
|
$ | 197 | $ | 156 | $ | 382 | $ | 324 | ||||||||
Gynecology/ Electrosurgery/ Urology
|
3,325 | 3,952 | 6,736 | 7,848 | ||||||||||||
Neonatal
|
565 | 403 | 1,020 | 705 | ||||||||||||
Blood Pressure Monitoring and Accessories*
|
1,033 | 838 | 1,838 | 1,458 | ||||||||||||
Total:
|
$ | 5,120 | $ | 5,349 | $ | 9,976 | $ | 10,335 |
2Q 2015 | 2Q 2014 | 1H 2015 | 1H 2014 | |||||||||||||
S&M Expense
|
$ | 552 | $ | 608 | $ | 1,125 | $ | 1,150 | ||||||||
R&D Expense
|
140 | 115 | 296 | 238 | ||||||||||||
G&A Expense
|
1,439 | 1,564 | 2,946 | 3,106 | ||||||||||||
Total Operating Expenses:
|
$ | 2,132 | $ | 2,287 | $ | 4,367 | $ | 4,494 |
Period
|
Total Number
of Shares
Purchased (1)
|
Average
Price Paid
per Share
|
Total Number
of Shares
Purchased as
Part of
Publicly
Announced
Plans
or Programs (1)
|
Maximum
Number (or
Approximate
Dollar Value)
of Shares
that May
be Purchased
Under the
Plans or
Programs (1)
|
|||||||||
4/01/15 – 4/30/15
|
2,000 | $ | 54.05 | 2,000 | |||||||||
5/01/15 – 5/31/15
|
2,000 | $ | 53.68 | 2,000 | |||||||||
6/01/15 – 6/30/15
|
- | - | - | ||||||||||
Total
|
4,000 | $ | 53.87 | 4,000 |
(1)
|
In 2Q 2015 UTMD repurchased the above shares pursuant to a continued open market repurchase program initially announced in August 1992. Since 1993 through 2Q 2015, the Company has repurchased 6.8 million shares at an average cost of $12.67 per share including broker commissions and fees in open market transactions. In addition, the Company conducted tender offer transactions in which it purchased an additional 2.8 million shares at an average cost of $9.76 per share including fees and administrative costs. In total, UTMD has repurchased 9.5 million of its shares at an average price of $11.82 per share since 1993. To complete the picture relating to current shares outstanding, since 1993 the Company’s employees and directors have exercised and purchased 1.9 million option shares at an average price of $10.97 per share. All options were awarded at the market value of the stock on the date of the award.
|
Exhibit #
|
SEC Reference #
|
Title of Document
|
1
|
31
|
Certification of CEO pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
2
|
31
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
3
|
32
|
Certification of CEO pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
4
|
32
|
Certification of Principal Financial Officer pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
5
|
101 ins
|
XBRL Instance
|
6
|
101.xsd
|
XBRL Schema
|
7
|
101.cal
|
XBRL Calculation
|
8
|
101.def
|
XBRL Definition
|
9
|
101.lab
|
XBRL Label
|
10
|
101.pre
|
XBRL Presentation
|
UTAH MEDICAL PRODUCTS, INC.
|
|
REGISTRANT
|
|
Date: 8/7/15
|
By: /s/ Kevin L. Cornwell
|
Kevin L. Cornwell
|
|
CEO
|
|
Date: 8/7/15
|
By: /s/ Paul O. Richins
|
Paul O. Richins
|
|
Principal Financial Officer
|
I, Kevin L. Cornwell, certify that:
|
||
1. | I have reviewed this quarterly report on Form 10-Q of Utah Medical Products, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): | |
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: August 7, 2015
|
||
/s/ Kevin L. Cornwell
|
||
Kevin L. Cornwell
|
||
Chief Executive Officer
|
I, Paul O. Richins, certify that:
|
||
1. | I have reviewed this quarterly report on Form 10-Q of Utah Medical Products, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; | |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): | |
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: August 7, 2015
|
||
/s/ Paul O. Richins
|
||
Paul O. Richins
|
||
Principal Financial Officer
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
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Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | |||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||
Inventories | (3) Inventories at June 30, 2015 and December 31, 2014 consisted of the following:
|
New Accounting Pronouncements and Changes in Accounting Principles |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Notes | |
New Accounting Pronouncements and Changes in Accounting Principles | (2) Recent Accounting Standards. In May 2014, new accounting guidance was issued that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This guidance becomes effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. UTMD is currently assessing the impact that this standard will have on its consolidated financial statements when it is adopted in 2017. |
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Notes Payable (Details) $ in Thousands |
Jun. 30, 2015
USD ($)
|
---|---|
JP Morgan Chase Bank NA (Chase) Note | |
Debt Instrument, Face Amount | $ 14,000 |
JP Morgan Chase London Branch Note | |
Debt Instrument, Face Amount | $ 12,934 |
Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) $ in Thousands |
Jun. 30, 2015
USD ($)
|
---|---|
Fair Value, Inputs, Level 1 | |
Equities | $ 59 |
Fair Value, Inputs, Level 2 | |
Equities | 0 |
Fair Value, Inputs, Level 3 | |
Equities | 0 |
Fair Value, Measurements, Recurring | |
Equities | $ 59 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Notes | |
Basis of Presentation | (1) The unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States. These statements should be read in conjunction with the financial statements and notes included in the Utah Medical Products, Inc. ("UTMD" or "the Company") annual report on Form 10 K for the year ended December 31, 2014. In the opinion of management, the accompanying financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. Currency amounts are in thousands except per-share amounts and where noted. |
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position | ||
Preferred Stock, Par Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Shares Issued | ||
Preferred Stock, Shares Outstanding | ||
Common Stock, Par Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 50,000 | 50,000 |
Common Stock, Shares Issued | 3,757 | 3,748 |
Common Stock, Shares Outstanding | 3,757 | 3,748 |
Inventories: Schedule of Inventory, Current (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | |||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||
Schedule of Inventory, Current |
|
Document and Entity Information - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2015 |
Aug. 06, 2015 |
|
Document and Entity Information: | ||
Entity Registrant Name | UTAH MEDICAL PRODUCTS INC | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 0000706698 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 3,758,300 | |
Entity Public Float | $ 199,695,980 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | utmd |
Investments: Available-for-sale Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | |||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||
Available-for-sale Securities |
|
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
Jun. 30, 2015 |
Jun. 30, 2014 |
|
Income Statement | ||||
Sales, net | $ 10,397 | $ 10,491 | $ 20,630 | $ 20,318 |
Cost of goods sold | 4,298 | 4,142 | 8,419 | 7,919 |
Gross profit | 6,099 | 6,349 | 12,211 | 12,399 |
Operating expense: | ||||
Selling, general and administrative | 1,992 | 2,172 | 4,071 | 4,256 |
Research & development | 140 | 115 | 296 | 238 |
Total operating expense | 2,132 | 2,287 | 4,367 | 4,494 |
Operating income | 3,967 | 4,062 | 7,844 | 7,905 |
Other income (expense) | (43) | (132) | (252) | (193) |
Income before provision for income taxes | 3,924 | 3,930 | 7,592 | 7,712 |
Provision for income taxes | 1,006 | 1,096 | 2,006 | 2,156 |
Net income | $ 2,918 | $ 2,834 | $ 5,586 | $ 5,556 |
Earnings per common share (basic) | $ 0.78 | $ 0.76 | $ 1.49 | $ 1.48 |
Earnings per common share (diluted) | $ 0.77 | $ 0.75 | $ 1.48 | $ 1.47 |
Shares outstanding (basic) | 3,755 | 3,750 | 3,753 | 3,750 |
Shares outstanding (diluted) | 3,773 | 3,775 | 3,775 | 3,778 |
Other comprehensive income (loss): | ||||
Foreign currency translation net of taxes of $0 in all periods | $ 2,360 | $ 859 | $ (175) | $ 1,110 |
Unrealized gain (loss) on investments net of taxes of $2, ($0), $0 and ($2) | 2 | 0 | 1 | (3) |
Total comprehensive income | $ 5,280 | $ 3,693 | $ 5,412 | $ 6,663 |
Warranty Reserve |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Notes | |
Warranty Reserve | (6) Warranty Reserve. The Companys published warranty is: UTMD warrants its products to conform in all material respects to all published product specifications in effect on the date of shipment, and to be free from defects in material and workmanship for a period of thirty (30) days for supplies, or twenty-four (24) months for equipment, from date of shipment. During the warranty period UTMD shall, at its option, replace any products shown to UTMD's reasonable satisfaction to be defective at no expense to the Purchaser or refund the purchase price.
UTMD maintains a warranty reserve to provide for estimated costs which are likely to occur. The amount of this reserve is adjusted, as required, to reflect its actual experience. Based on its analysis of historical warranty claims and its estimate that existing warranty obligations were immaterial, no warranty reserve was made at December 31, 2014 or June 30, 2015. |
Notes Payable |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Notes | |
Notes Payable | (5) Notes Payable. In March 2011, the Company obtained a $14,000 loan from JPMorgan Chase Bank, N.A. and a $12,934 loan from JP Morgan Chase, London Branch to help finance UTMDs purchase of Femcare. The notes were fully paid off in February 2015. |
Investments: Available-for-sale Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
|
Details | ||
Available For Sale Securities Gross Unrealized Gain Loss Accumulated ln lnvestments | $ 8 | $ 5 |
Realized loss from securities included in beginning balance | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 4 | $ 0 |
Deferred income taxes on unrealized holding (gain) loss | (2) | 0 |
Available For Sale Securities Gross Unrealized Gain Loss Accumulated ln lnvestments | $ 10 | $ 5 |
Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
|
Subsequent Events |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Notes | |
Subsequent Events | (9) Subsequent Events. UTMD has evaluated subsequent events through the date the financial statements were issued, and concluded there were no other events or transactions during this period that required recognition or disclosure in its financial statements. |
Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | |||||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||||
Investments | (7) Investments. Changes in the unrealized holding gain/loss on investment securities available-for-sale and reported as a separate component of accumulated other comprehensive income are as follows:
|
Fair Value Measurements |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | (8) Fair Value Measurements. The Company follows ASC 820, Fair Value Measurement to determine fair value of its financial assets. The following table provides financial assets carried at fair value measured as of June 30, 2015:
|
New Accounting Pronouncements and Changes in Accounting Principles: New Accounting Pronouncements, Policy (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Policies | |
New Accounting Pronouncements, Policy | In May 2014, new accounting guidance was issued that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This guidance becomes effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. UTMD is currently assessing the impact that this standard will have on its consolidated financial statements when it is adopted in 2017. |
Stock-Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2015 |
Mar. 31, 2014 |
Jun. 30, 2015 |
Jun. 30, 2014 |
|
Details | ||||
Allocated Share-based Compensation Expense | $ 22 | $ 18 | $ 44 | $ 24 |
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
Jun. 30, 2015 |
Jun. 30, 2014 |
|
Income Statement | ||||
Foreign currency translation tax adjustment | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on investments tax adjustment | $ 2 | $ 0 | $ 0 | $ (2) |
Stock-Based Compensation |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Notes | |
Stock-Based Compensation | (4) Stock-Based Compensation. At June 30, 2015, the Company has stock-based employee compensation plans which authorize the grant of stock options to eligible employees and directors. The Company accounts for stock compensation under FASB Accounting Standards Codification (ASC) 718, Stock Compensation. This statement requires the Company to recognize compensation cost based on the grant date fair value of options granted to employees and directors. In the quarters ended June 30, 2015 and 2014, the Company recognized $22 and $18, respectively, in stock-based compensation cost. In the six months ended June 30, 2015 and 2014, the Company recognized $44 and $24, respectively, in stock based compensation cost. |
Inventories: Schedule of Inventory, Current (Details) - USD ($) $ in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|
Details | ||
Finished goods | $ 1,554 | $ 1,847 |
Work-in-process | 1,101 | 1,103 |
Raw materials | 1,818 | 1,922 |
Total | $ 4,473 | $ 4,872 |