UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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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). | |
| 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. ¨ | |
ITEM 8.01—OTHER EVENTS
On November 2, 2021, Utah Medical Products, Inc. announced that it will pay a special cash dividend. A dividend of $2.00 per share is payable on December 29, 2021 to shareholders of record at the close of business on December 15, 2021. A copy of the press release is attached hereto as Exhibit 99.1.
ITEM 9.01—FINANCIAL STATEMENTS AND EXHIBITS
The following is filed as an exhibit to this report:
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Item 99.1 |
| Press release issued November 2, 2021: Utah Medical Products Inc. Announces Special Dividend. |
| 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UTAH MEDICAL PRODUCTS, INC. | |
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Dated: November 2, 2021 | By: | /s/ Kevin L. Cornwell |
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| Kevin L. Cornwell, Chief Executive Officer |
EXHIBIT 99.1
Utah Medical Products, Inc. Announces Special Dividend
Contact: Crystal Rios | November 2, 2021 |
(801) 566-1200 |
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Salt Lake City, Utah -Utah Medical Products, Inc. (Nasdaq: UTMD) announces that its Board of Directors approved a special cash dividend of two dollars ($2.00) per share of common stock payable on December 29, 2021 to stockholders of record at the close of business on December 15, 2021. This dividend replaces the normal quarterly dividend, and will be paid in December rather than in early 2022.
A key long term UTMD business objective has been to maximize returns for its stockholders. In recent years, the annual dividend distributed has been about $4 million per year. In 2019 and in 2021 to date (excluding the 2020 pandemic year in which net income was temporarily depressed), dividends represented about 28% of UTMD’s net income (after a provision for corporate income taxes).
Chairman Kevin Cornwell states, “I would like to help explain the rationale for this $7.3 million special dividend:
A) UTMD generally endeavors to utilize cash not needed to support normal operations in one or a combination of the following:
1) to continue to invest at an opportune time in ways that will enhance future profitability;
2) to make additional investments in new technology and/or processes; and/or
3) to acquire a product line or another company that will augment revenue and EPS growth, better utilizing UTMD’s existing infrastructure.
According to its SEC filings, when UTMD has grown cash beyond these three strategic uses, the Company will continue to return cash to stockholders in the form of dividends and share repurchases when the stock appears undervalued.
At September 30, 2021 UTMD’s cash and investment balances at $64.3 million were $12.7 million higher than at December 31, 2020 despite having previously paid $3.1 million in dividends during the first nine months of 2021. During 2020, in addition to paying $4.1 million in dividends to stockholders, UTMD used $7.0 million of cash to repurchase its shares in the open market, thus improving remaining stockholders’ value. Because the Company has not been able to repurchase shares in 2021, the special dividend can be viewed as the Board of Directors returning cash in the form of a dividend in lieu of repurchasing shares.
B) For investors subject to income taxes on dividends, a larger and earlier dividend payment should be of benefit given anticipated changes in 2022 U.S. income tax provisions.
C) UTMD will retain its ability to allocate cash according to the three strategic uses above after distribution of this special dividend, because management estimates that the Company’s cash balance at December 31, 2021 will remain close to what was at September 30, 2021 due to continued excellent operating performance.”
Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected or expected.
Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in over a hundred countries around the world as the standard for obtaining optimal long term outcomes for their patients. For more information about Utah Medical Products, Inc., visit UTMD’s website at www.utahmed.com.
Document and Entity Information |
Nov. 02, 2021 |
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| Details | |
| Registrant CIK | 0000706698 |
| Registrant Name | UTAH MEDICAL PRODUCTS, INC. |
| SEC Form | 8-K |
| Period End date | Nov. 02, 2021 |
| Tax Identification Number (TIN) | 87-0342734 |
| Emerging Growth Company | false |
| Entity Incorporation, State or Country Code | UT |
| Entity File Number | 000-12575 |
| Entity Address, Address Line One | 7043 South 300 West |
| Entity Address, City or Town | Midvale |
| Entity Address, State or Province | UT |
| Entity Address, Postal Zip Code | 84047 |
| City Area Code | 801 |
| Local Phone Number | 566-1200 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Amendment Flag | false |