Utah Medical Products, Inc. reported its third quarter (Q3) and first nine months (9M) of calendar year 2024 financial results, showing weaker top-line performance but better bottom-line results compared to initial projections. Worldwide consolidated sales in Q3 2024 were $2.5 million lower than in Q3 2023, and $6.146 million lower in 9M 2024 compared to 9M 2023.
The decline in sales was primarily attributed to a $1.704 million reduction in sales to UTMD's major OEM customer, PendoTECH, in Q3 2024, accounting for 73% of the year-to-date sales decline. Additionally, worldwide Filshie Clip System sales were $193,000 lower in Q3 2024, representing 18% of the year-to-date sales decline. Domestic U.S. sales decreased by 21.7%, and outside the U.S. (OUS) sales were 17.6% lower in USD terms for Q3 2024.
Despite the revenue contraction, the company's Operating Income Margin improved to 33.4% in Q3 2024 from 31.7% in Q3 2023, benefiting from the full amortization of a $21 million identifiable intangible asset related to the Filshie Clip System distribution rights. However, litigation expenses related to Filshie product liability claims increased to 4.26% of revenues in Q3 2024 from 2.78% in Q3 2023. Earnings Per Share (EPS) for Q3 2024 were $1.025, a 5% decrease from $1.081 in Q3 2023, while 9M 2024 EPS were 9% lower.
The company's balance sheet remained strong with no debt, and it utilized $3.222 million for dividends and $13.259 million for share repurchases during the first nine months of 2024. Management projected that worldwide PendoTECH OEM sales would be $6 million lower in 2024 than in 2023, and anticipated a total annual 2024 consolidated sales decline of 18% to 19% compared to 2023.
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