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 $57 million, or 34 cents per share, for the second quarter. That compares with $189 million, or 99 cents per share, for the same quarter a year earlier.
Zions is a financial services company with more than $75 billion of total assets. Zions operates under local management teams and distinct brands in 11 western states.
The company said pre-provision net revenuewas $256 million, down 10 percent. The provisions for loan losses were elevated in anticipation of future credit loss.
Zions said it gained more than 10,000 new customers, both from the Paycheck Protection Program (PPP) loans and other sources. That program was “a great success,” the bank said, “helping to preserve many small businesses” and expecting to result in “a long-term major boost to the reputation of the bank.”
“By most any measure, the past three months have been one of the most extraordinary periods in the bank’s history,” Harris H. Simmons, chairman and CEO, said in announcing the results. “Despite having sent thousands of our employees to work from home through the pandemic, we swiftly responded to the urgent needs of over 46,000 small businesses — many of them new to the bank — by providing them with Paycheck Protection Program loans totaling nearly $7 billion, making Zions one of the 10 largest providers of PPP loans in the nation.”
Zions provided 46,707 PPP loans during the quarter. They totaled $6.9 billion, with the average size being $148,623 and the median size being less than $35,000. The highest dollar amounts were extended to companies in the accommodation and food service industries, it said.
“At the same time, we’ve been conducting exhaustive credit reviews of our exposures in industries particularly hard hit by the economic impact of the pandemic and find ourselves generally quite encouraged by the resilience of our borrowers, the great majority of whom entered this time of stress with strong balance sheets and liquidity.”
Simmons said the bank believes its tendency to engage in collateralized lending will further strengthen its ability to work with borrowers while moderating its credit losses.
“During the quarter, we also maintained a strong focus on controlling operating expenses, which, when adjusted for the effects of the previously announced termination of our pension plan, decreased 5 percent from the second quarter a year ago.”
Franklin Covey
Franklin Covey Co., based in Salt Lake City, reported a net loss of $11 million, or 79 cents per share, for the third fiscal quarter ended May 31. That compares with a loss of $2 million, or 14 cents per share, for the same quarter a year earlier.
Sales in the most recent quarter totaled $37.5 million, down from $56 million in the prior-year quarter.
The company said all of its business units were hurt by the closure of offices, schools and other gathering places in the United States and in other countries as governments, organizations and individuals sought to slow the spread of COVID-19.
“The company closed its corporate offices and restricted travel to protect the health and safety of its associates and clients in an effort to slow the spread of the pandemic. The company’s international direct offices followed the same pattern of closures and restrictions,” the company said in explaining the sales decline as on-site training, coaching days and facilitated presentations were postponed or canceled.
Bob Whitman, chairman and CEO, said the company expects to “emerge from this period of uncertainty and resume our aggressive march forward to be a company with strong growth in revenue, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and cash flow.”
“While we know that the future is clouded by the COVID-19 pandemic and will present additional financial challenges,” he said, “we believe our ongoing investments in offerings and electronic delivery capabilities uniquely position us to grow in the future. We believe now is the time to build on Franklin Covey’s strengths and distinct capabilities to help our clients solve problems and achieve greatness at both the individual and organizational level.”
The company previously withdrew its guidance and assumptions for fiscal 2020 due to the adverse impacts of the pandemic and the ongoing uncertainties related to business, governmental and educational institution disruptions.
“The company remains confident, however, that once national and local economies begin to return to normalcy, the same factors that have driven Franklin Covey’s growth trajectory across recent years, will help the company begin to resume accelerated growth,” it said.
