CORPORATE FINANCIAL REPORTS - 2-26-18

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

Extra Space Storage

Extra Space Storage Inc., based in Salt Lake City, reported funds from operations (FFO) attributable to common stockholders and unit holders of $158.6 million, or $1.17 per share, for the quarter ended Dec. 31. That compares with $134.4 million, or $1 per share, for the same quarter a year earlier.

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Excluding adjustments for non-cash interest and to remove the benefit from tax reform enacted in December, FFO as adjusted was $1.12 per diluted share, up 8.7 percent compared to the same period in 2016.

Net income attributable to common stockholders in the most recent quarter was $216 million, or $1.69 per share. That compares with $82.4 million, or 65 cents per share, for the same quarter a year earlier.

Same-store rental revenues totaled $210.8 million in the most recent quarter, up from $200.1 million a year earlier.

For the full year 2017, the company reported FFO of $590.2 million, or $4.27 per share. That compares with $494.7 million, or $3.70 per share, for 2016. Excluding adjustments to remove the benefit from tax reform, property losses and tenant reinsurance claims due to hurricanes and noncash interest, core FFO was $4.38 per diluted share, up 13.8 percent over 2016.

For the full year 2017, net income attributable to common stockholders was $479 million, or $3.76 per share, which compares with $366.1 million, or $2.91 per share, for 2016.

Same-store rental revenue in 2017 totaled $831.4 million, up from $790.9 million in 2016.

Extra Space Storage is a self-administered and self-managed real estate investment trust that owns and/or operates 1,483 self-storage stores in 39 states; Washington, D.C.; and Puerto Rico. It is the second-largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.

“It was another solid year for Extra Space,” Joe Margolis, chief executive officer, said in announcing the results. “Our geographically diversified portfolio and best-in-class platform continue to produce consistent results despite the operational challenges that new supply presented in certain markets.”

Nu Skin

Nu Skin Enterprises Inc., based in Provo, reported net income of $18.2 million, or 33 cents per share, for the fourth quarter ended Dec. 31. That compares with $38.2 million, or 69 cents per share, for the same quarter a year earlier.

Without the impact of tax reform legislation (the Tax Cuts and Jobs Act) passed in December, earnings per share in the most recent quarter was $1.20, up from 69 cents per share in the year-earlier quarter, which included a 10-cents-per-share tax charge.

Revenue in the most recent quarter was $666.2 million, up from $531.3 million in the year-earlier quarter.

For the full year 2017, the company reported net income of $129.4 million, or $2.36 per share, which compares with $143 million, or $2.55 per share, for 2016. Revenue in 2017 totaled $2.28 billion, up from $2.2 billion in 2016.

Without the impact of tax reform, earnings per share in 2017 was $3.23, compared with $2.55 per share in 2016, which included a 36-cents-per-share Japan customs charge.

Nu Skin develops and distributes beauty and wellness products.

“We concluded 2017 on a high note with solid quarterly results driven by customer and sales leader growth,” Ritch Wood, chief executive officer, said in announcing the results. “Our growth strategy, which remains focused on three key elements — engaging platforms, enabling products and empowering programs — continues to drive our positive results.”

Wood said the company recently completed the acquisition of two manufacturing partners in which Nu Skin previously held noncontrolling equity ownership, as well as a packaging company. “We anticipate these acquisitions will be accretive to our annual results and will be meaningful contributors to our future success,” he said.

Holly Energy Partners

Holly Energy Partners LP, based in Dallas but with operations in Utah, reported net income of $86.1 million, or 96 cents per unit, for the fourth quarter ended Dec. 31. That compares with $41.4 million, or 40 cents per unit, for the same quarter a year earlier.

Revenues in the most recent quarter totaled $129.2 million, up from $112.5 million in the year-earlier quarter.

For the full year 2017, the company reported net income of $195 million, or $2.28 per unit, which compares with $158.2 million, or $1.69 per unit, in 2016.

Revenues in 2017 totaled $454.4 million, up from $402 million in 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 pipelines, tankage and terminals in Utah and nine other states, plus refinery processing units in Utah and Kansas.

HEP acquired the remaining interests in the SLC and Frontier pipelines in the fourth quarter, and the fourth quarter results reflect a gain of $36.3 million related to the re-measurement to acquisition date fair value of HEP’s preexisting equity interests in those companies. Excluding that gain, net income attributable to Holly Energy Partners for the quarter was $49.8 million, or 56 cents per share, an increase of $8.5 million compared to the same period of 2016. This increase in earnings is primarily due to higher pipeline throughputs and revenues as well as increased earnings related to the acquisition of the remaining interests in the SLC and Frontier pipelines.

The company said the revenue increase from 2016 to 2017 was primarily attributable to $43.5 million higher revenues from the Woods Cross refinery processing units acquired in the fourth quarter of 2016 as well as revenues from the acquisition of the remaining interests in the SLC and Frontier pipelines in the fourth quarter of 2017.

“We are pleased with our solid financial performance in the fourth quarter, which allowed us to maintain our record of continuous quarterly distribution increases,” George Damiris, chief executive officer, said in announcing the results.

“The fourth quarter was eventful as we completed the acquisition of the remaining interests in the SLC and Frontier pipelines and eliminated the general partner’s incentive distribution rights and the economic general partner interest. Volumes on the SLC and Frontier pipelines have been strong, and we plan to expand these lines later this year.”

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