Utah Medical Products Inc. UTMD reported a second-quarter 2024 earnings per share (EPS) of $0.98, a 15.3% decrease from $1.15 in the second quarter of 2023.

Revenues for the quarter stood at $10.4 million, a 19.2% decrease from $12.9 million in the second quarter of 2023.

Utah Medical experienced a notable decline in revenues and profits for the second quarter of 2024. The decline was primarily driven by significant reductions in sales to major customers and distributors. Despite the revenue decline, the company maintained healthy profit margins and continued to invest in share repurchases and dividends.

Utah Medical Products, Inc. Price, Consensus and EPS Surprise

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Key Business Metrics

Revenue Breakdown

PendoTECH OEM Sales: The most significant decline was observed in sales to UTMD’s largest OEM customer, PendoTECH. Sales dropped 77.3% in the second quarter of 2024 compared to the second quarter of 2023.

China BPM Distributor: Sales to UTMD's largest blood pressure monitoring (BPM) kit distributor in China were 39.3% lower in the second quarter of 2024 than in the second quarter of 2023.

Filshie Clip System: Sales of the Filshie Clip System declined by 12.8% in the reported quarter compared with the year-ago quarter.

These three categories contributed more than the total consolidated sales decline, offset by higher aggregated sales in other categories.

Geographical Sales

Domestic U.S. Sales: Domestic sales were $5.8 million in the second quarter of 2024, a 16.9% decline from $7 million in the year-ago quarter.

Outside U.S. Sales: International sales were $4.6 million in the reported quarter, down 21.9% from $5.9 million in the year-ago quarter.

Financial Performance

Gross Profit and Operating Income

Gross profit for the second quarter of 2024 was $6.3 million, a 19.2% decrease from $7.7 million in the second quarter of 2023. The company reported a gross profit margin of 60.1% for the second quarter of 2024, consistent with the previous year. Operating income was $3.4 million, down 22.3% from $4.4 million in the prior year quarter. The decrease in operating income was primarily due to a reduction in gross profit, partially offset by lower operating expenses. Operating income margin was 33.1%, slightly down from 34.4%.

Operating Expenses

Total operating expenses in the reported quarter were $2.8 million, a 15% decrease from $3.3 million a year ago. Key components include:

Sales and Marketing (S&M) expenses increased to $0.5 million in the second quarter of 2024 from $0.4 million in the year-ago quarter. General and Administrative (G&A) costs decreased to $2 million in the reported quarter from $2.8 million in the second quarter of 2023, largely due to the completion of the amortization of certain intangible assets. Research and Development expenses increased to $0.3 million in the second quarter of 2024 from $0.1 million in the year-ago quarter.