CORPORATE FINANCIAL REPORTS 8-5-19

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

Zions 

Zions Bancorporation NA, based in Salt Lake City, reported net earnings applicable to common shareholders of $189 million, or 99 cents per share, for the second quarter. That compares with $187 million, or 89 cents per share, for the same quarter a year earlier.

Net interest income rose 4 percent year over year to $569 million. Average loans held for investment were up 7 percent, while average deposits were up 3 percent.

Zions, with total assets of $70 billion, operates in 11 western states.

“Net earnings available to common shareholders was up only slightly from last year, reflecting relatively strong loan growth coupled with margin compression resulting from a challenging interest rate environment,” Harris H. Simmons, chairman and CEO, said in announcing the results.

“Second-quarter earnings per share of 99 cents increased 11 percent from the prior-year period, largely the result of a share count that was 9 percent lower than last year. Operating expenses continued to be well-controlled, rising less than 1 percent from the prior-year’s second quarter, and credit quality remained very clean with annualized net charge-offs totaling only 0.12 percent of average loans and leases, as economic conditions remain strong throughout the western United States.”

Huntsman

Huntsman Corp., with main offices in Salt Lake City and Texas, reported net income of $118 million, or 47 cents per share, for the second quarter ended June 30. That compares with $623 million, or $1.71 per share, for the same quarter a year earlier.

Revenues in the most recent quarter totaled $2.2 billion, down from $2.4 billion in the year-earlier period.

Huntsman manufactures and markets differentiated and specialty chemicals. It operates more than 75 manufacturing, research and development and operations facilities in approximately 30 countries and employs approximately 10,000 associates within  four business divisions.

“We are pleased with the relative resilience of the margins in our core downstream portfolio,” Peter R. Huntsman, chairman, president and CEO, said in announcing the results. “In spite of challenging economic conditions, we generated $240 million of free cash flow in the quarter and reaffirm our stated objective of generating 40 percent free cash flow to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

“Regardless of second-half economic uncertainties, we will continue to control our costs, protect our margins and focus on maintaining a strong balance sheet and cash generation. We will continue to follow a balanced approach to capital allocation between maintaining a competitive dividend, ongoing share repurchases and strategic organic and inorganic growth in our downstream portfolio.”

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 $165.8 million, or $1.21 per share, for the quarter ended June 30. That compares with FFO of $153.8 million, or $1.14 per share, for the same quarter a year earlier.

The company reported net income attributable to common stockholders of $104.8 million, or 81 cents per share. That compares with $95.2 million, or 75 cents per share, for the year-earlier quarter.

Same-store revenues totaled $258.3 million in the most recent quarter, up from $248.6 million in the year-earlier period.

Extra Space Storage is a self-administered and self-managed real estate investment trust that owns and/or operates 1,752 self-storage stores in 40 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.

People’s Utah Bancorp

People’s Utah Bancorp, based in American Fork, reported net income of $11 million, or 58 cents per share, for the second quarter ended June 30. That compares with $10.5 million, or 55 cents per share, for the same quarter a year earlier.

Return on average assets was 1.96 percent for the second quarter of 2019 compared with 1.93 percent for the second quarter of 2018. Return on average equity was 14.33 percent for the second quarter, compared with 15.6 percent for the second quarter of 2018.

Net interest income grew 2.8 percent, from $20.7 million to $27.7 million, during the 12-month period. Noninterest income was $3.6 million during the quarter, down from $4.1 million in the year-earlier quarter. Total deposits grew $105 million to $1.98 billion at the end of the most recent quarter, compared with $1.78 billion at the end of the year-earlier quarter.

People’s Utah Bancorp is the holding company for People’s Intermountain Bank, which has 26 locations in three banking divisions, Bank of American Fork, Lewiston State Bank and People’s Town & Country Bank; and a mortgage division, People’s Intermountain Bank Mortgage.

“People’s Utah Bancorp achieved another strong quarter with a return on average equity of 14.3 percent as we continue to position, strengthen and fortify our balance sheet,” Len Williams, president and CEO, said in announcing the results.

“We have increased our average equity to average assets from 12.4 percent a year ago to 13.7 percent for the second quarter of 2019, while increasing our allowance for loan losses from 1.3 percent a year ago to 1.7 percent at the end of the second quarter.”

Williams said the company’s lower marketing and advertising costs are the result of it deciding to simplify its branding strategy to a single, unified name for the bank, a new logo and a more-contemporary look. “We expect to roll out our new single-brand strategy around the end of the year and anticipate higher marketing and advertising costs over the next several quarters,” he said.

USANA

USANA Health Sciences Inc., based in Salt Lake City, reported net earnings of $21.4 million, or 91 cents per share, for the second quarter ended June 29. That compares with $33.9 million, or $1.36 per share, for the same quarter a year earlier.

Sales in the most recent quarter totaled $256 million, down from $301.5 million in the prior-year quarter.

USANA develops and manufactures nutritional supplements, healthy foods and personal care products that are sold directly to associates and preferred customers.

“The continuing challenging market environment in China was the major factor that impacted our second-quarter results,” Kevin Guest, CEO, said in announcing the results. 

“During the second quarter, we offered promotions and incentives in China that have historically generated meaningful sales and customer growth. However, the contribution of these promotions was significantly lower than we anticipated, which we believe is due to the low consumer sentiment toward health products in China.”

Guest said it could take several months for consumer sentiment and company momentum to improve in China.

“We will continue to execute our 2019 strategy during the second half of the year, which includes introducing new products and planned promotional activity across our markets,” he said. “We have tailored our plan to ensure that we have strategic offerings in the appropriate markets at the appropriate times to generate momentum in the business. Overall, we remain confident in the strategies we are pursuing for the long-term health of our business.”

Merit Medical

Merit Medical Systems Inc., based in South Jordan, reported net income of $6.9 million, or 12 cents per share, for the second quarter ended June 30. That compares with $10.9 million, or 21 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $255.5 million, up from $224.8 million in the year-earlier period.

Merit manufactures and markets disposable devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy.

“There were a number of factors affecting revenues and gross margins during the second quarter,” Fred P. Lampropoulos, chairman and CEO, said in announcing the results. 

“The shortfall in revenue involved foreign exchange, slower-than-anticipated conversion and uptake of acquired products such as the Vascular Insights product line and some products from the BD acquisition. Additionally, we saw sales of legacy products increase more than expected. Of course, the combination of lower-than-expected revenues and the mix resulted in lower gross margins. The silver lining is the core growth and the management of SG&A expenses, which were in line with our expectations.”

Utah Medical Products

Utah Medical Products Inc., based in Salt Lake City, reported net income of $3.5 million, or 94 cents per share, for the quarter ended June 30. That compares with $4.3 million, or $1.15 per share, for the same quarter a year earlier.

Sales in the most recent quarter totaled $11.8 million, up from $11 million in the year-earlier quarter.

Utah Medical Products develops, manufactures and markets disposable and reusable specialty medical devices.

The company said it “attained results which reflect that the company remains on target to achieve its financial goals for year 2019 despite the apparent negative comparison with” second-quarter and first-half 2018 results.

Instructure

Instructure Inc., based in Salt Lake City, reported a net loss of $20.7 million, or 56 cents per share, for the second quarter ended June 30. That compares with a loss of $12.5 million, or 36 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $62.9 million, up from $50 million in the year-earlier quarter.

Instructure produces a learning management platform for schools and an employee development platform for businesses.

“Q2 was another solid quarter for Instructure as we delivered $62.9 million in revenue,” Dan Goldsmith, CEO, said in announcing the results. “Our mission of helping people grow from the first day of school to the last day of work is resonating with our growing customer base of more than 30 million people.”