UTAH MEDICAL PRODUCTS, INC.
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(Exact name of registrant as specified in its charter)
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Utah
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000-12575
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87-0342734
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(State or other jurisdiction of
incorporation or organization)
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(Commission File Number)
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(IRS Employer Identification
No.)
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7043 South 300 West
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Midvale, Utah
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84047
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(Address of principal executive offices)
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(Zip code)
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Registrant’s telephone number, including area code:
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Phone: (801) 566-1200
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n/a
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(Former name or former address, if changed since last report)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the
Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
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Emerging growth company [ ]
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
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Exhibit
Number*
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Title of Document
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Location
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Item 99.1
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Financial information for Utah Medical Products, Inc. for the three months ended March 31, 2019 and
forward-looking statements relating to 2019 and beyond as presented in a press release dated April 25, 2019.
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This filing
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* |
All exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number following the
decimal indicating the sequence of the particular document.
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UTAH MEDICAL PRODUCTS, INC.
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Dated: April 25,
2019
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By:
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/s/Kevin L. Cornwell |
Kevin L. Cornwell, Chief Executive Officer
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Contact: Crystal Rios (801) 566-1200
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April 25, 2019
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Revenues (Sales):
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( 1
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%)
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||
Gross Profit (GP):
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( 2
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%)
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||
Operating Income (OI):
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(17
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%)
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Net Income (NI):
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(23
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%)
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Earnings Per Share (EPS):
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(23
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%)
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1Q 2019
(JAN – MAR)
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1Q 2018
(JAN – MAR)
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Gross Profit Margin (gross profits/ sales):
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63.1
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%
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63.6
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%
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||||
Operating Income Margin (operating income/ sales):
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38.2
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%
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45.7
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%
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||||
EBT Margin (profits before income taxes/ sales):
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38.5
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%
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46.0
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%
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||||
Net Income Margin (profit after taxes/ sales):
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29.2
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%
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37.6
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%
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1Q 2019
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1Q 2018
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Change
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||||||||||
GBP
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1.304
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1.391
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(6.3
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%)
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||||||||
EUR
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1.134
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1.226
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(7.5
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%)
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||||||||
AUD
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0.713
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0.786
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(9.4
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%)
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||||||||
CAD
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0.753
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0.791
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(4.8
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%)
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3-31-19
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3-31-18
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Change
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||||||||||
GBP
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1.303
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1.402
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(7.1
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%)
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||||||||
EUR
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1.229
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1.232
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(0.2
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%)
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||||||||
AUD
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0.710
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0.769
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(7.6
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%)
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||||||||
CAD
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0.749
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0.775
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(3.5
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%)
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1) |
An ongoing GILTI tax on foreign earnings was (speciously) included by Congress in the December 2017 TCJA, which purportedly levied a one-time repatriation tax on cumulative foreign earnings that would be followed by no more income taxes on foreign subsidiary earnings. Ironically, because the state of Utah does not allow foreign tax credits, the Utah State GILTI tax is so large that its deduction from federal taxable income completely negates what GILTI tax the U.S. Treasury receives, i.e. the entire benefit of the GILTI tax enactment accrues to the State of Utah, not the Federal government. Because all of the provisions of the TCJA were not understood at the time, there was no GILTI tax accrual by UTMD in 1Q 2018. The GILTI tax accrual in 1Q 2019 was $45. |
2) |
In 1Q 2018, lower valued USD cash balances in the UK and Ireland, when expressed in their native currencies, caused a tax deduction in those sovereignties which did not recur in 1Q 2019 because of the stronger USD. The tax provision combined difference due to USD currency balance translation was about $128. |
3) |
The remaining $68 tax difference resulted from a shift of U.S. Filshie-related EBT from the UK to the U.S. taxed at a 6.95% higher tax rate. UK Filshie sales to the U.S. were $691 lower in 1Q 2019 compared to 1Q 2018 because of the CSI inventory, and Filshie sales by UTMD in the U.S. were $925 higher in 1Q 2019 compared to 1Q 2018. |
1)
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Current Ratio = 6.5
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2)
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Days in Trade Receivables (based on 1Q 2019 sales activity) = 41
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3)
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Average Inventory Turns (based on 1Q 2019 CGS) = 2.4
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4)
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2019 YTD ROE (before dividends) = 17%
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1Q 2019
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1Q 2018
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Percent
Change
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||||||||||
Net Sales
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$
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10,732
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$
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10,887
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(1.4
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%)
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||||||
Gross Profit
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6,773
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6,922
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(2.2
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%)
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||||||||
Operating Income
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4,102
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4,971
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(17.5
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%)
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||||||||
Income Before Tax
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4,137
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5,008
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(17.4
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%)
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||||||||
Net Income
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3,139
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4,092
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(23.3
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%)
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||||||||
Earnings Per Share
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$
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0.840
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$
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1.092
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(23.1
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%)
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||||||
Shares Outstanding (diluted)
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3,738
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3,748
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(in thousands)
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(unaudited)
MAR 31, 2019
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(audited)
DEC 31, 2018
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(unaudited)
MAR 31, 2018
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|||||||||
Assets
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||||||||||||
Cash & Investments
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$
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32,665
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$
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51,112
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$
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42,925
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||||||
Accounts & Other Receivables, Net
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4,910
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3,955
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4,209
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|||||||||
Inventories
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7,648
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5,413
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5,559
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|||||||||
Other Current Assets
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446
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423
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426
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|||||||||
Total Current Assets
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45,669
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60,903
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53,119
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|||||||||
Property & Equipment, Net
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10,679
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10,359
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11,781
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|||||||||
Intangible Assets, Net
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48,703
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28,506
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32,288
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|||||||||
Total Assets
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$
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105,051
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$
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99,768
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$
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97,188
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||||||
Liabilities & Stockholders’
Equity
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||||||||||||
Accounts Payable
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2,847 |
975 |
1,084 |
|||||||||
REPAT Tax Payable
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85 |
85 |
503 |
|||||||||
Other Accrued Liabilities
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4,111 |
4,200 |
3,533 |
|||||||||
Total Current Liabilities
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7,043
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5,260
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5,120
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|||||||||
Deferred Tax Liability – Intangibles
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2,496 |
2,540
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3,111
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|||||||||
Long Term Lease Liability
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405 |
0 |
0
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|||||||||
Long Term REPAT Tax Payable
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2,441
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2,441
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5,785
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|||||||||
Deferred Income Taxes
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491
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535
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486
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|||||||||
Stockholders’ Equity
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92,175
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88,992
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82,686
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|||||||||
Total Liabilities & Stockholders’ Equity
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$
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105,051
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$
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99,768
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$
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97,188
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