Utah Medical Products, Inc. Announces Special Dividend
SALT LAKE CITY, UT / ACCESSWIRE / November 2, 2021 / Utah Medical Products, Inc. (NASDAQ:UTMD) announces that its Board of Directors approved a special cash dividend of two dollars (
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
Chairman Kevin Cornwell states, "I would like to help explain the rationale for this
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
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.
CONTACT:
Crystal Rios
(801) 566-1200
SOURCE: Utah Medical Products, Inc.
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