CORPORATE FINANCIAL REPORTS - 8-7-17

The following are recent financial reports as posted by selected Utah corporations:

Huntsman

Huntsman Corp., with main offices in Salt Lake City and Texas, reported net income of $183 million, or 69 cents per share, for the second quarter. That compares with $94 million, or 36 cents per share, for the same quarter a year earlier.

Revenues in the most recent quarter totaled $2.62 billion, up from $2.54 billion in the year-earlier quarter.

Huntsman is a global manufacturer and marketer of differentiated chemicals. It operates more than 100 manufacturing and research and development facilities in about 30 countries and employs approximately 15,000 people in its five business divisions.

“I am very pleased with the progress made in the second quarter,” Peter R. Huntsman, president and chief executive officer, said in announcing the results. “Our businesses continue to benefit from solid underlying fundamentals, enhanced free cash flow generation, and our downstream strategy.  We are on pace to achieve earnings growth in each of our business segments in 2017.”

He said the company is in “an unprecedented and transformational time.”

“This week we launched the initial public offering of Venator, our Pigments and Additives business, the proceeds of which will be used to reduce our debt. Furthermore, having begun our integration planning with Clariant, we are now more confident than ever in our ability to exceed our stated synergy targets, seamlessly integrate these two complementary organizations and create significant value for the combined company’s shareholders.”

The plans to merge with Clariant remain on track, he added. “We are confident in our ability to achieve in excess of $400 million in annual cost synergies with another $25 million in annual tax savings, creating in excess of $3.5 billion of value for shareholders,” Huntsman said.

SkyWest

SkyWest Inc., based in St. George, reported net income of $50 million, or 95 cents per share, for the second quarter. That compare with $40 million, or 77 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $810 million, up from $801 million in the year-earlier quarter.

SkyWest Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. The airline companies provide commercial air service in cities throughout North America with more than 3,000 daily flights. SkyWest Inc. It has more than 18,000 employees.

“Our results reflect strong production, solid operating performance and ongoing fleet transition improvements,” Chip Childs, chief executive officer, said in announcing the results. “We will continue our disciplined strategy to pursue opportunities that will further improve our business model.”

Holly Energy Partners

Holly Energy Partners LP, based in Texas but with operations in Utah, reported net income of $41.3 million, or 36 cents per limited partner unit, for the second quarter. That compares with $39.1 million, or 45 cents per unit, for the same quarter a year earlier.

The company said the increase was primarily due to increased operating income from its Woods Cross refinery processing units of $4.5 million, offset by higher interest expense of $2.5 million.

Revenues in the most recent quarter totaled $109.1 million, up from $94.9 million a year earlier. The increase was primarily attributable to the $12.9 million of revenue recorded for the Woods Cross processing units acquired in the fourth quarter of 2016.

Holly Energy Partners provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corp. subsidiaries. The partnership, through its subsidiaries and joint ventures, owns and/or operates petroleum product and crude gathering pipelines, tankage and terminals in Utah and nine other states, plus refinery processing units in Utah and Kansas.

“We are pleased with our solid financial performance in the second quarter, which allowed us to maintain our record of continuous quarterly distribution increases and achieve our distribution growth target of 8 percent, while still maintaining a distribution coverage ratio greater than 1.0,” George Damiris, chief executive officer, said in announcing the results.

Merit Medical Systems

Merit Medical Systems Inc., based in South Jordan, reported net income of $9.5 million, or 19 cents per share, for the quarter ended June 30. That compares with $7.3 million, or 16 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $186.5 million, up from $151.1 million for the year-earlier quarter.

The company manufactures and markets disposable medical devices.

“Our second quarter reinforced our belief in the continued momentum of our business,” Fred P. Lampropoulos, chairman and chief executive officer, said in announcing the results. “Our integration of the Argon critical care business and Catheter Connections assets has exceeded our expectations and helped to maintain gross margins at our first-quarter level and our belief that we will see continued gross margin improvement during the balance of the year. All product divisions, including OEM, Sensors and Coatings, are growing and contributing. To put it simply, we believe the business is in sync.”

People’s Utah Bancorp

People’s Utah Bancorp, based in American Fork, reported net income of $6.5 million, or 35 cents per share, for the second quarter. That compares with $5.6 million, or 31 cents per share, for the same quarter a year earlier.

Net interest income increased $1.2 million during the most recent quarter and was up $1.8 million compared with a year earlier. Average loans increased by $41.7 million during the quarter and were up by $80.8 million from the year-earlier quarter. Loans held for investment at the end of the quarter increased $105.6 million, or 9.6 percent, year-over-year and $81.5 million, or 7.3 percent, from Dec. 31.

People’s Utah Bancorp is the holding company for People’s Intermountain Bank, which has 20 locations in two banking divisions, Bank of American Fork and Lewiston State Bank; a leasing division, GrowthFunding Equipment Finance; and a mortgage division, People’s Intermountain Bank Mortgage. PUB has a pending transaction, subject to customary closing conditions, to acquire Town & Country Bank Inc. in St. George.

“We’re pleased to have achieved strong growth across our community banking family, while improving our net interest margins and operating efficiencies,” Richard Beard, president and chief executive officer, said in announcing the results. “While we continue to achieve solid loan growth, we’ve maintained a strong focus on credit quality as reflected in our low level of nonperforming assets and net charge-offs.  As a result of our efforts to profitably grow our business, we continue to experience positive trends in our operating results.”

Nutraceutical

Nutraceutical International Corp., based in Park City, reported net income of $1.9 million, or 20 cents per share, for the fiscal third quarter ended June 30. That compares with $6 million, or 65 cents per share, for the same quarter a year earlier.

The most recent quarter included costs of $2.6 million, or 28 cents per share, related to entering into a definitive merger agreement to be acquired by an affiliate of HGGC LLC (“HGGC”), a middle-market private equity firm.

Sales in the most recent quarter totaled $65 million, up from $60.8 million in the year-earlier quarter.

Nutraceutical manufactures, markets, distributes and retails branded nutritional supplements and other natural products sold primarily to and through domestic health and natural food stores.

“Our fiscal 2017 third-quarter net sales growth of 6.8 percent was primarily driven by our April 2017 acquisition of Zhou Nutrition,” Bill Gay, chairman and chief executive officer, said in announcing the results. “Gross profit remained solid at 51.4 percent for the third quarter. Net income and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter were impacted by merger-related costs of $2.6 million. Also, the third quarter included $1.7 million in costs related to the write-up of Zhou Nutrition inventory to fair value and $0.4 million in severance costs related to the ongoing re-alignment of our marketing, sales and administrative groups.”

Instructure

Instructure Inc., based in Salt Lake City, reported a net loss of $13 million, or 45 cents per share, for the second quarter ended June 30. That compares with a loss of $14.6 million, or 53 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $38 million, up from $25.9 million in the year-earlier quarter.

Instructure is a software-as-a-service (SaaS) technology company.

“We delivered strong second-quarter results — 47 percent year-over-year revenue growth, continued significant improvements to our operating margin and robust customer adoption for both Canvas and Bridge across the globe,” Josh Coates, chief executive officer, said in announcing the results. “We are excited about the progress we made in the first half of 2017 and our outlook for the remainder of the year and beyond.”