CORPORATE FINANCIAL REPORTS 5-25-20

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

Varex

Varex Imaging Corp., based in Salt Lake City, reported a net loss of $1.9 million, or 5 cents per share, for the fiscal second quarter ended April 3. That compares with net income of $5.8 million, or 15 cents per share, for the same quarter a year earlier.

Revenues in the most recent quarter totaled $197 million, up from $196 million in the year-earlier quarter.

Varex designs and manufactures X-ray imaging components, which include X-ray tubes, digital detectors and other image processing solutions that are components of X-ray imaging systems.

“During the second quarter we began to see the impact of the COVID-19 pandemic on our business,” Sunny Sanyal, CEO, said in announcing the results. “Although our revenues increased over the prior-year quarter, we experienced a substantial shift in mix between and within our business segments that lowered our overall margins.”

The company has withdrawn its previously issued guidance for fiscal 2020 due to uncertainty related to the COVID-19 pandemic.

Health Catalyst

Health Catalyst Inc., based in Salt Lake City, reported a net loss attributable to common stockholders of $17.5 million, or 47 cents per share, for the quarter ended March 31. That compares with a loss of $13.7 million, or $16.21 per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $45.1 million, up from $35.2 million in the year-earlier quarter.

Health Catalyst offers data and analytics technology and services to healthcare organizations.

“From a financial perspective, I am very pleased with our performance in the first quarter across all areas of our business, including outperforming the mid-point of our guidance for both total revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization),” Dan Burton, CEO, said in announcing the results.

“While the fluidity and uncertain timeline of the COVID-19 pandemic creates some near-term uncertainty, we believe this crisis significantly highlights the need for healthcare organizations to invest in data and analytics, and thus will serve as a long-term tailwind for our business.”

Co-Diagnostics

Co-Diagnostics Inc., based in Salt Lake City, reported a net loss of $1 million, or 5 cents per share, for the quarter ended March 31. That compares with a loss of $1.4 million, or 9 cents per share, for the same quarter a year earlier.

Sales in the most recent quarter totaled $1.5 million, up from $3,400 in the year-earlier quarter.

Co-Diagnostics is a molecular diagnostics company that develops, manufactures and markets a new diagnostics technology.

“Co-Diagnostics has increased production capacity to meet growing demand for our tests,” Dwight Egan, CEO, said in announcing the results. “We have positioned the company to continue to make an important contribution in meeting the enormous demand for tests around the world. Our value proposition of accurate, high-throughput, and cost-effective tests continues to resonate with customers around the globe.”

Security National Financial

Security National Financial Corp., based in Salt Lake City, reported after-tax earnings from operations of $1.4 million, or 8 cents per share, for the quarter ended March 31. That compares with $1.9 million, or 11 cents per share, during the same quarter a year earlier.

Revenue in the most recent quarter totaled $79.6 million, up from $61.5 million in the year-earlier quarter.

The company has three business segments: life insurance, cemeteries/mortuaries and mortgages.

“The COVID-19 pandemic had a marked influence on our reported Q1 earnings,” Scott M. Quist, president, said in announcing the results.

“Our mark to market common stock losses included in our Q1 results were about $2.5 million and were centered in both our life insurance and cemeteries/mortuaries business segments.  As of April 30th, we had recovered approximately 50 percent of those losses on a mark to market basis, but the stock market continues to be very volatile so forecasting market returns is currently a challenge.

“I am sure we will recognize some ‘real” cash stock market losses as we did have some holdings, albeit relatively small, in what are now some very troubled industries, including airlines and aircraft manufacturers. Absent the mark to market losses, operationally our performance would have been in the $4 million range, which would be a significant improvement over 2019. Thus, even recognizing the decrease in reported net income, I am quite pleased with our company’s first-quarter performance.”

CleanSpark

CleanSpark Inc., based in Salt Lake City, reported a net loss of $5.8 million, or $1.13 per share, for the quarter ended March 31. That compares with a loss of $7.8 million, or $1.88 per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $3.7 million, up from $723,899 in the year-earlier quarter.

CleanSpark is a software and services company that offers software and intelligent controls for microgrid and distributed energy resource management systems and innovative strategy and design services.

“We count ourselves as very fortunate as we delivered our seventh consecutive record-setting quarter with a significant increase in year-over-year revenues during this trying period,” CEO Zachary Bradford Chairman S. Matthew Schultz said in a letter to shareholders.

“Through our strategic acquisition of p2klabs Inc. and expansion of our existing product offerings, we are optimistic that we will continue to see increased adoption of our solutions and associated revenues.”

HollyFrontier

HollyFrontier Corp., based in Texas but with operations in Utah, reported a net loss attributable to stockholders of $304.6 million, or $1.88 per share, for the quarter ended March 31. That compares with net income of $253.1 million, or $1.47 per share, for the same quarter a year earlier.

Sales and other revenues in the most recent quarter totaled $3.4 billion, down from $3.9 billion in the year-earlier quarter.

HollyFrontier is an independent petroleum refiner and marketer that produces light products such as gasoline, diesel fuel, jet fuel and other specialty products. It owns and operates refineries in Utah and four other states.

HollyFrontier delivered strong financial results in the first quarter driven by healthy margins in our refining and finished lubricants businesses,” Michael Jennings, president and CEO, said in announcing the results.

“We are committed to delivering safe and reliable operations during this challenging environment. We believe our disciplined approach to capital allocation, led by our strong balance sheet and liquidity position, will help position HollyFrontier for long-term success.”

Holly Energy Partners

Holly Energy Partners LP, based in Texas but with operations in Utah, reported net income of $24.9 million, or 24 cents per share, for the first quarter ended March 31. That compares with $51.2 million, or 49 cents per share, for the same quarter a year earlier.

Revenues in the most recent quarter totaled $127.9 million, down from $134.5 million in the year-earlier quarter.

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 eight other states, plus refinery processing units in Utah and Kansas.

The company said COVID-19 has “created destruction of demand, as well as lack of forward visibility, for refined products and crude oil transportation, and for the terminalling and storage services that we provide. We expect a recovery of our services as demand for these essential products returns in the long run; however, there is little visibility on the timing for, or the extent of, this recovery in the near term.”

“HEP delivered solid first-quarter results, supported by safe and reliable operations and continued strength in both our crude and refined product transportation and storage systems. Additionally, HEP has changed its distribution strategy to allow for long-term financial strength and flexibility. The new distribution rate will allow HEP to retain an additional $130 million per year, which will be utilized to fully fund capital expenditures as well as reduce leverage.”