CORPORATE FINANCIAL REPORTS 10-28-19

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 $214 million, or $1.17 per share, for the third quarter ended Sept. 30. That compares with $215 million, or $1.04 per share, for the same quarter a year earlier.{mprestriction ids="1,3"}

Zions said net interest income was up less than 1 percent over the year-earlier period, to $457 million. Average loans were up 8 percent and average deposits were up 3 percent year over year. Noninterest income grew 11 percent from the prior year due to strength in capital markets product sales, lending activity and wealth management and trust fees. 

Zions operates in 11 western states.

“Given the challenging interest rate environment in which banks currently operate, we’re pleased with the quarter’s overall results,” Harris H. Simmons, chairman and CEO, said in announcing the results.

“We achieved solid growth of both demand and interest-bearing deposits, moderate loan growth, strong customer-related fee income growth, and flat operating expenses. Credit quality also remained well-controlled, with annualized net charge-offs of only 0.01 percent of average loans, and nonperforming assets which declined to less than 0.5 percent of average loans. A 12 percent reduction in average outstanding diluted shares relative to last year’s third quarter helped produce a 13 percent increase in earnings per share.

“As we adjust to a lower interest rate environment and anticipate the resulting continued pressure on interest margins, we will continue to take steps to carefully manage operating expenses in the year ahead. We are optimistic that we will be able to manage 2020 operating expenses to a level that is no more than, and likely modestly reduced from, expected 2019 results.”

USANA

USANA Health Sciences Inc., based in Salt Lake City, reported net earnings of $24.2 million, or $1.09 per share, for the third quarter ended Sept. 28. That compares with $31 million, or $1.24 per share, for the same quarter a year earlier.

Sales in the most recent quarter totaled $260.6 million, down from $296.8 million in the prior-year quarter.

Notably, sales in the Asia Pacific region fell 12.9 percent to $208.6 million, and the number of active customers in the region fell 10.1 percent year over year. Sales in Greater China were down 18.6 percent.

“Although we continue to face a challenging sales environment in China and other regions, we were pleased to see sales in several markets improve on a consecutive-quarter basis,” Kevin Guest, CEO, said in announcing the results. “We offered several incentives and promotions around the world during the quarter, which positively impacted customer growth and added approximately $16 million to net sales. We also recognize, however, that we still have work to do in the Southeast Asia Pacific and Americas/Europe regions towards regaining sales momentum.”

Guest said that in September, the Chinese government started a follow-up to the industry review it conducted during the first quarter of the year. The company expected the 100-day follow-up review and will cooperate with the government throughout this process, he said. “To date, we have not experienced the negative media environment or restrictions on meetings that accompanied the government’s previous review,” Guest said.

“As we conclude fiscal 2019, we will continue to utilize strategic incentive offerings to help generate sales and customer growth around the world, although not at the same level as those offered during the previous quarter. We remain optimistic in our long-term growth potential in China and our other regions around the world and are committed to returning momentum to the business.”{/mprestriction}