CORPORATE FINANCIAL REPORTS 3-25-19

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

Overstock.com 

Overstock.com Inc., based in Salt Lake City, reported a net loss attributable to Overstock.com Inc. stockholders of $42.3 million, or $1.39 per share, for the fourth quarter ended Dec. 31. That compares with a net loss of $95.7 million, or $3.72 per share, for the same quarter a year earlier.{mprestriction ids="1,3"}

Revenue in the most recent quarter totaled $452.5 million, down from $456.3 million in the year-earlier quarter.

For the full year 2018, the company reported a net loss of $206 million, or $6.83 per share. That compares with a loss of $109.9 million, or $4.28 per share, in 2017.

Revenue in 2018 totaled $1.82 billion, up from $1.74 billion in 2017.

Overstock.com is an online retailer and advancer of blockchain technology.

“Our blockchain projects are some of the most significant and cutting-edge in the world, and we are just reaching the point where our products are being introduced to the public,” Patrick M. Byrne, founder and CEO, said in announcing the results. “In particular, tZERO brought live a security token trading platform. Our retail arm lost money last year because I gunned things in an attempt to create a conventional high-growth/money-losing e-commerce business, but the losses were nauseating and we reverted back to the philosophy of profitability on which we built Overstock. As a result, in 2019, retail will return to profitability, generating a positive operating cash flow (greater than or equal to $10 million).”

During a conference call with analysts, Byrne said it was a “terrible mistake” for Overstock.com retail operations to chase Wayfair, “and we had to revert to our DNA, which is focusing on value and running the company to profitability.”

“This year, I’m committing that we will generate at least $10 million of positive operating cash flow from the retail business,” he said.

HealthEquity

HealthEquity Inc., based in Draper, reported net income of $13.1 million, or 21 cents per share, for the fiscal fourth quarter ended Jan. 31. That compares with $5.9 million, or 9 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $75.8 million, up from $60.4 million in the year-earlier quarter.

For the full fiscal year, the company reported net income of $73.9 million, of $1.17 per share. That compares with $47.4 million, or 77 cents per share, for the prior year.

Revenue in the most recent fiscal year totaled $287.2 million, up from $229.5 million in the prior year.

The company is the nation’s largest health savings account (HAS) non-bank custodian.

“Our ‘Purple’ team delivered another solid fourth quarter to cap a year of strong growth in fiscal year 2019, which included full-year revenue that increased 25 percent to $287 million, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) that increased 40 percent to $118 million,” Jon Kessler, president and CEO, said in announcing the results.

“We continue to outpace the market and gain market share as we edged up to 4 million HSA members and eclipsed $8 billion of custodial assets. We are well-positioned to have another great year for fiscal 2020 helping our members to connect health and wealth as we broaden our proprietary platform and deepen our relationships with our network and employer partners.”

ZAGG

ZAGG Inc., based in Salt Lake City, reported net income of $14.3 million, or 52 cents per share, for the fourth quarter ended Dec. 31. That compares with $8.1 million, or 28 cents per share, for the same quarter a year earlier.

Net sales in the most recent quarter totaled $166.5 million, down from $176.9 million in the year-earlier quarter.

For the full fiscal year, the company reported net income of $39.2 million, or $1.38 per share. That compares with $15.1 million, or 53 cents per share, for 2017.

Net sales in 2018 totaled $538.2 million, up from $519.5 million in 2017.

ZAGG produces screen protection, mobile keyboards, power management solutions, social tech and personal audio sold under the ZAGG, mophie, InvisibleShield, IFROGZ, BRAVEN, Gear4 and HALO brands.

“Our fourth-quarter performance was shaped by results from our core business that were generally in line with our expectations coupled with incremental revenue, expenses and transaction costs associated with our acquisition of Gear4,” Chris Ahern, CEO, said in announcing the results.

“While soft demand for smartphone devices has created some headwinds for our business, we were able to increase screen protection sales double digits through new product innovation, strong international growth and some domestic retailer requests for early deliveries ahead of a potential tariff increase. As expected, fourth-quarter power sales were down as we lapped the launch and sell-in of our initial wireless charge pad a year ago, combined with the impact on juice pack demand from the previously discussed delay in made for iPhone certification.

“Despite certain challenges, we delivered record sales and profitability in 2018. We also executed three strategic acquisitions that diversify our business and represent compelling growth vehicles for the future.”

Purple Innovation

Purple Innovation Inc., based in Alpine, reported a net loss of $5.4 million for the fourth quarter ended Dec. 31. That compares with a net loss of $4.6 million for the same quarter a year earlier.

Net revenue in the most recent quarter totaled $78.5 million, up from $63 million in the prior-year quarter.

For the full fiscal year, the company reported a net loss of $19.6 million, which compares with a net loss of $8.8 million in 2017.

Net revenue in 2018 totaled $285.8 million, up from $196.9 million in 2017.

Purple designs and manufactures comfort products, including mattresses, pillows and cushions.

“We made meaningful progress throughout the fourth quarter preparing the company to deliver improved results going forward,” Joe Megibow, CEO, said in announcing the results. “This included addressing identified inefficiencies in our manufacturing, supply chain and delivery processes, and rightsizing our headcount.  At the same time, we began development of a new branding campaign that will better showcase Purple’s premium positioning and help further distinguish our differentiated product offering from the competition.

“The consumer demand we experienced for our mattresses in the fourth quarter, fueled by our expanded brick-and-mortar presence, was encouraging and provided the business with good momentum heading into 2019. While there is still much work to be done, the entire organization is fully focused on ensuring we capitalize on the many opportunities ahead of us in a manner that drives profitable growth and increased shareholder value over the long term.”

Domo

Domo Inc., based in American Fork, reported a net loss of $29.9 million, or $1.13 per share, for the fiscal fourth quarter ended Jan. 31. That compares with a net loss of $41.2 million, or $25.33 per share, in the same quarter a year earlier.

Revenue in the most recent quarter totaled $39.4 million, up from $30 million in the year-earlier quarter.

For the full fiscal year, the company reported a net loss of $154.3 million, or $9.43 per share. That compares with a loss of $176.6 million, or $110.70 per share, for the prior year.

Revenue in the fiscal year totaled $142.5 million, up from $108.5 million in the prior year.

Domo is a business operating system company.

“We executed very well in Q4 as our results show, while also delivering on our commitment to drive efficiencies in our sales and marketing spend, and we expect that strong execution to continue into fiscal 2020,” Josh James, Domo founder and CEO, said in announcing the results. “We continue to see an enormous market opportunity in front of us as we push further into organizations, while enabling customers to unleash data across the business with the speed, security and scale IT demands. I’m particularly pleased with our people and their performance delivering more than 30 percent growth in revenue while lowering operating expenses 11 percent.”

“Q4 was another strong quarter for us,” said Bruce Felt, chief financial officer. “We continued to improve execution across all functions of the organization. We are pleased with the productivity gains from sales and marketing. We plan to continue to grow the business while improving efficiencies and we continue to be committed to achieving cash flow positive with the cash we have on hand.”

PolarityTE

PolarityTE Inc., a Salt Lake City-based commercial-stage biotechnology and regenerative biomaterials company, reported the financial results for the two-month transition period ended Dec. 31. The company is transitioning from an Oct. 31 fiscal year end to a Dec. 31 fiscal year end.

The company reported a net loss of $18.4 million during the two months ended Dec. 31, including $8.9 million of stock-based compensation. Revenue totaled $700,000, which included $200,000 from sales of SkinTE and $500,000 from contract research operations.{/mprestriction}