Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Nov. 06, 2017 | Jun. 30, 2017 | |
Document and Entity Information: | |||
Entity Registrant Name | UTAH MEDICAL PRODUCTS INC | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 706,698 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 3,720,600 | ||
Entity Public Float | $ 242,289,134 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q3 | ||
Trading Symbol | utmd |
UTAH MEDICAL PRODUCTS, INC. CON
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 37,438 | $ 26,296 |
Investments, available-for-sale | 78 | 64 |
Accounts & other receivables, net | 4,730 | 3,211 |
Inventories | 5,042 | 4,542 |
Other current assets | 733 | 754 |
Total current assets | 48,021 | 34,867 |
Property and equipment, net | 10,407 | 9,966 |
Goodwill | 14,028 | 13,487 |
Other intangible assets | 34,507 | 31,947 |
Other intangible assets - accumulated amortization | (16,288) | (13,683) |
Other intangible assets, net | 18,219 | 18,264 |
TOTAL ASSETS | 90,675 | 76,584 |
Current liabilities: | ||
Accounts payable | 1,125 | 906 |
Accrued expenses | 4,058 | 2,116 |
Total current liabilities | 5,183 | 3,022 |
Deferred tax liability - intangible assets | 3,176 | 3,209 |
Deferred income taxes | 1,119 | 1,109 |
TOTAL LIABILITIES | 9,478 | 7,340 |
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 - September 30, 2017, 3,719 shares and December 31, 2016, 3,713 shares | 37 | 37 |
Accumulated other comprehensive income (loss) | (8,686) | (12,243) |
Additional paid-in capital | 701 | 378 |
Retained earnings | 89,145 | 81,072 |
Total stockholders' equity | 81,197 | 69,244 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 90,675 | $ 76,584 |
UTAH MEDICAL PRODUCTS, INC. CO3
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
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 | 3,719 | 3,713 |
Common Stock, Shares Outstanding | 3,719 | 3,713 |
UTAH MEDICAL PRODUCTS, INC. CO4
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement | ||||
Sales, net | $ 10,125 | $ 9,655 | $ 31,213 | $ 30,446 |
Cost of goods sold | 3,629 | 3,880 | 11,288 | 12,196 |
Gross profit | 6,496 | 5,775 | 19,925 | 18,250 |
Operating expense: | ||||
Selling, general and administrative | 1,714 | 1,701 | 5,146 | 5,320 |
Research & development | 103 | 135 | 341 | 364 |
Total operating expense | 1,817 | 1,836 | 5,487 | 5,684 |
Operating income | 4,679 | 3,939 | 14,438 | 12,566 |
Other income (expense) | 17 | 41 | 65 | 206 |
Income before provision for income taxes | 4,696 | 3,980 | 14,503 | 12,772 |
Provision for income taxes | 1,074 | 1,045 | 3,476 | 3,361 |
Net income | $ 3,622 | $ 2,935 | $ 11,027 | $ 9,411 |
Earnings per common share (basic) | $ 0.97 | $ 0.78 | $ 2.97 | $ 2.50 |
Earnings per common share (diluted) | $ 0.97 | $ 0.78 | $ 2.95 | $ 2.49 |
Shares outstanding (basic) | 3,719 | 3,761 | 3,716 | 3,757 |
Shares outstanding (diluted) | 3,738 | 3,778 | 3,734 | 3,775 |
Other comprehensive income (loss): | ||||
Foreign currency translation net of taxes of $0 in all periods | $ 1,219 | $ (430) | $ 3,550 | $ (3,856) |
Unrealized gain (loss) on investments net of taxes of $2, $2, $5 and ($2) | 4 | 3 | 9 | (3) |
Total comprehensive income | $ 4,845 | $ 2,508 | $ 14,586 | $ 5,552 |
UTAH MEDICAL PRODUCTS, INC. CO5
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement | ||||
Foreign currency translation tax adjustment | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on investments tax adjustment | $ 2 | $ 2 | $ 5 | $ (2) |
UTAH MEDICAL PRODUCTS, INC. CO6
UTAH MEDICAL PRODUCTS, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOW - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 11,027 | $ 9,411 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 489 | 452 |
Amortization | 1,568 | 1,714 |
Provision for (recovery of) losses on accounts receivable | (2) | 0 |
(Gain) loss on disposal of assets | 0 | 5 |
Deferred income taxes | (281) | (351) |
Stock-based compensation expense | 99 | 62 |
Tax benefit attributable to exercise of stock options | 25 | 37 |
Changes in operating assets and liabilities: | ||
Accounts receivable - trade | (1,340) | (510) |
Accrued interest and other receivables | (5) | (35) |
Inventories | (301) | (222) |
Prepaid expenses and other current assets | 40 | 36 |
Accounts payable | 201 | 316 |
Accrued expenses | 803 | 228 |
Total adjustments | 1,296 | 1,732 |
Net cash provided by operating activities | 12,323 | 11,143 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures for property and equipment | (174) | (237) |
Capital expenditures for intangible assets | 0 | (9) |
Net cash provided by (used in) investing activities | (174) | (246) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock - options | 224 | 306 |
Payment of dividends | (1,969) | (1,954) |
Net cash provided by (used in) financing activities | (1,745) | (1,648) |
Effect of exchange rate changes on cash | 738 | (971) |
Net increase in cash and cash equivalents | 11,142 | 8,278 |
Cash at beginning of period | 26,296 | 23,278 |
Cash at end of period | 37,438 | 31,556 |
Cash paid during the period for income taxes | 3,753 | 3,342 |
Cash paid during the period for interest | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016. 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. |
New Accounting Pronouncements a
New Accounting Pronouncements and Changes in Accounting Principles | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
New Accounting Pronouncements and Changes in Accounting Principles | (2) Recent Accounting Standards. In March 2016, new accounting guidance was issued to simplify several aspects of accounting for employee share-based payment (including stock option) transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the guidance, entities recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. UTMD adopted this standard on January 1, 2017, which had an insignificant impact on its consolidated financial statements. UTMD made a determination to continue to account for forfeitures by estimating the number of awards that are expected to vest. Because UTMD primarily issues incentive stock options, excess tax benefits and tax deficiencies have historically been minimal. 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, 2017 and early adoption is permitted for periods beginning after December 15, 2016. Because the vast majority of its revenue is recognized when a physical product is shipped, UTMD expects that the 2018 adoption of this standard will have an insignificant impact on its consolidated financial statements, including the timing of revenue recognition. In February 2016, new accounting guidance was issued which requires recording most leases on the balance sheet. The new lease standard requires disclosure of key information about lease arrangements and aligns many of the underlying principles of this new model with those in the new revenue recognition standard noted above. This guidance becomes effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. UTMD has yet to assess the impact that this standard will have on its consolidated financial statements when it is adopted. The only significant lease the Company anticipates it will have at that time is for the parking lot at its Utah facility. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
Inventories | (3) Inventories at September 30, 2017 and December 31, 2016 consisted of the following: September 30, 2017 December 31, 2016 Finished goods $ 982 $ 1,327 Work-in-process 1,580 942 Raw materials 2,480 2,273 Total $ 5,042 $ 4,542 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
Stock-Based Compensation | (4) Stock-Based Compensation. At September 30, 2017, 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, Compensation - Stock Compensation |
Warranty Reserve
Warranty Reserve | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
Warranty Reserve | (5) 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, 2016 or September 30, 2017. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
Fair Value Measurements | (6) Fair Value Measurements. The Company follows ASC 820, Fair Value Measurement Fair Value Measurements Using Description Total Fair Value at 9/30/2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3 ) Equities $ 78 $ 78 $ 0 $ 0 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
Subsequent Events | (7) Subsequent Events. |
New Accounting Pronouncements14
New Accounting Pronouncements and Changes in Accounting Principles: New Accounting Pronouncements, Policy (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
New Accounting Pronouncements, Policy | In March 2016, new accounting guidance was issued to simplify several aspects of accounting for employee share-based payment (including stock option) transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the guidance, entities recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. UTMD adopted this standard on January 1, 2017, which had an insignificant impact on its consolidated financial statements. UTMD made a determination to continue to account for forfeitures by estimating the number of awards that are expected to vest. Because UTMD primarily issues incentive stock options, excess tax benefits and tax deficiencies have historically been minimal. 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, 2017 and early adoption is permitted for periods beginning after December 15, 2016. Because the vast majority of its revenue is recognized when a physical product is shipped, UTMD expects that the 2018 adoption of this standard will have an insignificant impact on its consolidated financial statements, including the timing of revenue recognition. In February 2016, new accounting guidance was issued which requires recording most leases on the balance sheet. The new lease standard requires disclosure of key information about lease arrangements and aligns many of the underlying principles of this new model with those in the new revenue recognition standard noted above. This guidance becomes effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. UTMD has yet to assess the impact that this standard will have on its consolidated financial statements when it is adopted. The only significant lease the Company anticipates it will have at that time is for the parking lot at its Utah facility. |
Inventories_ Schedule of Invent
Inventories: Schedule of Inventory, Current (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Tables/Schedules | |
Schedule of Inventory, Current | September 30, 2017 December 31, 2016 Finished goods $ 982 $ 1,327 Work-in-process 1,580 942 Raw materials 2,480 2,273 Total $ 5,042 $ 4,542 |
Fair Value Measurements_ Schedu
Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Tables/Schedules | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements Using Description Total Fair Value at 9/30/2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3 ) Equities $ 78 $ 78 $ 0 $ 0 |
Inventories_ Schedule of Inve17
Inventories: Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Details | ||
Finished goods | $ 982 | $ 1,327 |
Work-in-process | 1,580 | 942 |
Raw materials | 2,480 | 2,273 |
Total | $ 5,042 | $ 4,542 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Details | ||||
Allocated Share-based Compensation Expense | $ 30 | $ 20 | $ 99 | $ 62 |
Fair Value Measurements_ Sche19
Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Fair Value, Inputs, Level 1 | |
Equities | $ 78 |
Fair Value, Inputs, Level 2 | |
Equities | 0 |
Fair Value, Inputs, Level 3 | |
Equities | 0 |
Fair Value, Measurements, Recurring | |
Equities | $ 78 |