UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 15, 2002
Commission File No. 0-11178
UTAH MEDICAL PRODUCTS, INC.
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(Exact name of Registrant as specified in its charter)
UTAH 87-0342734
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7043 South 300 West
Midvale, Utah 84047
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Address of principal executive offices
Registrant's telephone number: (801) 566-1200
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ITEM 5. OTHER EVENTS
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On October 15, 2002 the Company announced, by press release, the
following:
Utah Medical Products, Inc. (Nasdaq:UTMD) reports results for Third Quarter (3Q)
2002 that are accurate and meet the provisions of Generally Accepted Accounting
Principles.
In the 3Q 2002, UTMD achieved the following profitability records for a
calendar quarter:
Gross Profit Margin (gross profits/ sales): 58.2%
Operating Profit Margin (operating profits/ sales): 39.6%
Net Profit Margin (profit after taxes/ sales): 26.9%
The record profit margins were achieved from sales which grew 3% relative to 3Q
2001, UTMD's best increase in quarter over prior year's same quarter total
revenues in the last three years. Due to lower expenses in every operating
expense category, record GPM and higher sales, operating income dollars
increased 16% in 3Q 2002 compared with 3Q 2001, and 13% for the first nine
months (9YTD) of 2002 compared with 9YTD 2001.
UTMD's 3Q 2002 net income increased 23% to $1,883,000, compared to 3Q 2001 net
income of $1,532,000. Several factors contributed to the disproportionate
increase in net profits: 1) Nonoperating income up $35,600 because of the lack
of any interest on bank debt in 3Q 2002, 2) a lower income tax rate this year
due to litigation expenses which exceed the accrual rate, 3) an income tax
benefit from exercises of employee options, and 4) a higher contribution to
total income of Ireland operations which are taxed at a lower tax rate.
Earnings per share (eps) in 3Q 2002 also increased 23%, to $.36 compared to $.29
in 3Q 2001. The number of diluted outstanding shares used to calculate eps
remained about the same compared to 3Q 2001 because the number of shares added
for dilution from options as a result of exercises and a higher share price was
offset by 203,900 shares repurchased by the Company during the last four
calendar quarters. Eps for 9YTD of 2002 were $1.01 compared to 9YTD 2001 eps of
$.85, a 19% increase in year-to-date eps.
UTMD concluded its nineteenth consecutive quarter of higher eps compared to the
same quarter in the prior year, during which 4 3/4 year time span eps have grown
at a compounded rate of 22% per year. Eps for the most recent four calendar
quarters (LTM) were $1.30.
UTMD's earnings before interest and income tax expenses and before non-cash
depreciation/amortization expenses (EBITDA), were $3,167,000 and $9,172,000 in
3Q and 9YTD 2002, compared to $3,015,000 and $8,857,000 in 3Q and 9YTD 2001,
respectively. LTM EBITDA were $12,097,000. LTM EBITDA were 44% of sales.
Changes in UTMD's Balance Sheet demonstrated a continued significant financial
strengthening during 3Q 2002. In the presence of higher sales activity, accounts
receivable, inventories, net fixed assets and liabilities all declined, while
cash and stockholders' equity increased, even after using $1,732,000 in cash to
repurchase 126,400 shares, which reduced net worth as well as cash balances.
Financial ratios as of September 30, 2002 which may be of interest to investors
include UTMD's
1) Current Ratio = 4.3
2) Days in Receivables (based on 3Q sales activity) = 43.5
3) Average Inventory Turns (based on 3Q CGS) = 3.6
4) Year-to-Date ROE = 36%
The 10-Q for the third quarter will be filed with the SEC by November 15, and
will be available for direct access on the Internet for shareholders by linking
through UTMD's website www.utahmed.com.
Utah Medical Products, Inc., with particular interest in healthcare for women
and their babies, develops, manufactures, assembles and markets a broad range of
disposable and reusable specialty medical devices designed for better health
outcomes for patients and their care- providers.
Utah Medical Products, Inc.
INCOME STATEMENTS (unaudited)
(in thousands except earnings per share)
Third Quarter ended September 30
Percent Change 3Q 2002 3Q 2001
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Net Sales +3.2% $7,005 $6,791
Gross Profit +4.7% 4,079 3,896
Operating Income +15.9% 2,775 2,395
Income Before Tax +16.8% 2,888 2,472
Net Income +22.9% 1,883 1,532
Diluted Earnings Per Share +23.1% .358 .291
Shares Outstanding (diluted) 5,261 5,268
Nine Months ended September 30
Percent Change 9YTD 2002 9YTD 2001
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Net Sales +1.8% $20,510 $20,152
Gross Profit +2.0% 11,812 11,581
Operating Income +13.3% 7,898 6,970
Income Before Tax +17.0% 8,250 7,051
Net Income +22.2% 5,380 4,403
Diluted Earnings Per Share +19.0% 1.009 .848
Shares Outstanding (diluted) 5,331 5,193
BALANCE SHEETS
(in thousands)
(unaudited) (unaudited) (audited) (unaudited)
SEP 30, 2002 JUN 30, 2002 DEC 31, 2001 SEP 30, 2001
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Assets
Accounts Receivable, net $ 3,390 $ 3,458 $ 3,585 $ 3,832
Inventories 3,098 3,351 3,248 3,331
Other Current Assets/ Cash 2,437 1,563 1,040 957
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Total Current Assets 8,925 8,372 7,873 8,120
Property and Equipment - net 8,755 8,990 8,877 9,136
Intangible Assets - net 6,759 6,779 6,822 6,998
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Total Assets $ 24,439 $ 24,141 $ 23,572 $ 24,254
Liabilities and Stockholders' Equity
Total Current Liabilities $ 2,068 $ 2,145 $ 2,474 $ 2,652
Note Payable - - 2,501 4,400
Deferred Income Taxes 201 200 390 386
Stockholders' Equity 22,170 21,796 18,207 16,816
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Total Liabilities and Stockholders' Equity $ 24,439 $ 24,141 $ 23,572 $ 24,254
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SIGNATURES
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Pursuant to the requirements of the Securities Exchanges Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
UTAH MEDICAL PRODUCTS, INC.
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REGISTRANT
Date: October 15, 2002 By: /s/ Kevin L. Cornwell
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Kevin L. Cornwell
CEO