CORPORATE FINANCIAL REPORTS 8-24-20

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

Purple Innovation

Purple Innovation Inc., based in Lehi, reported a net loss of $5.8 million, or 11 cents per share, for the second quarter ended June 30. That compares with a net loss of $7.3 million, or 16 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $165.1 million, up from $103 million in the year-earlier quarter.

The company designs and manufactures comfort products, including mattresses, pillows, cushions, frames and sheets.

“It was a record-breaking quarter from both a revenue and operating income standpoint as our organization successfully capitalized on the strengths of our business model and the changes in consumer buying  behavior brought on by COVID-19,” Joe Megibow, CEO, said in announcing the results.

“Following a brief scale-back in our operations early in the pandemic, we quickly ramped production and fulfillment capabilities and pivoted back to our digital roots, shifting our efforts into a mostly direct-to-consumer business to capture the growing online demand. In addition to driving an increase in online purchasing, shelter-at-home directives also fueled higher demand for many categories tied to the home.”

Megibow said the company remains optimistic. “While we still have much work to be done,” he said, “we are pleased with how our team is navigating through these unprecedented times and are confident that the long-term growth prospects for our company are stronger than ever.”

Varex

Varex Imaging Corp., based in Salt Lake City, reported a net loss of $28.3 million, or 73 cents per share, for the fiscal third quarter ended July 3. That compares with a loss of $1.4 million, or 4 cents per share, for the same quarter a year earlier.

Revenues in the most recent quarter totaled $171 million, down from $196.7 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 key components of X-ray imaging systems. Its products are used in medical imaging as well as in industrial and security imaging applications.

“During the third quarter of fiscal year 2020, the impact of COVID-19 resulted in declining sales and a sizeable unfavorable shift in product mix that reduced our revenues, margins and profitability,” Sunny Sunyal, CEO, said in announcing the results.

“While sales of CT tubes and other radiographic products used in COVID-19-related diagnostic imaging applications increased significantly, total revenues declined 13 percent from the year ago quarter due to sales declines in other products, such as those for oncology, dental and industrial applications.”

In response to the decline in revenues and gross margin, Varex has taken a number of actions that are expected to reduce annual operating costs by more than $25 million, including accelerating the previously announced closure of its Santa Clara, California, facility, with most assembly operations shut down in June; discontinuing certain low-margin, low-demand products; and reducing the workforce by eliminating 94 positions at the end of July, which when combined with other actions, is expected to result in an overall workforce reduction of about 10 percent in calendar year 2020.

“We believe that these and other actions, as well as a continued focus on pursuing productivity gains, will better position Varex when the imaging markets recover from the downturn caused by COVID-19,” Sanyal said.

Security National Financial

Security National Financial Corp., based in Salt Lake City, reported after-tax earnings from operations of $20.6 million, or $1.10 per share, for the quarter ended June 30. That compares with $3.5 million, or 19 cents per share, for the same quarter a year earlier.

Revenues in the most recent quarter totaled $118.7 million, up from $68.4 million in the year-earlier quarter.

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

“We are pleased with the operational performance of our company for the second quarter and year-to-date,” Scott M. Quist, president, said in announcing the results. “Any time profitability is up approximately 500 percent quarter over quarter, up essentially 300 percent YOY (year over year), and earning a 13 percent return on equity for the first half of the year, we should be pleased.  For Q2, all of our business segments delivered very solid results.”

Clarus

Clarus Corp., based in Salt Lake City, reported a net loss of $2.7 million, or 9 cents per share, for the second quarter ended June 30. That compares with a loss of $700,000, or 2 cents per share, for the same quarter a year earlier.

Sales in the most recent quarter totaled $30, down from $47 million in the year-earlier quarter.

Clarus develops, manufactures and distributes outdoor equipment and lifestyle products focused on the climb, ski, mountain and sport markets. Its brands include Black Diamond, Sierra, PIEPS and SKINourishment.

The company said sales for Black Diamond were down primarily because of the COVID-related retail demand freeze during the quarter. The increase in Sierra was due to “sustained improvements in the domestic demand environment for bullets” during the quarter.

“Despite a challenging consumer environment amidst a global pandemic, the strength of our well-diversified brand portfolio and multi-channel distribution platform was apparent in our second-quarter results,” John Walbrecht, president, said in announcing the results.

“For Black Diamond, the impact of COVID-19 caused our retail partners to close their doors, freezing pre-season and replenishment orders. However, demand improved each month in the quarter, particularly in regions that have shown marked progress in the recovery, like Europe.”

The Sierra business’ domestic growth was partially offset by prolonged softness internationally, “as those markets had retail ordinances preventing their opening and the absence of unique demand-drivers being experienced in the U.S., like the upcoming election,” Walbrect said.

“Assessing our expectations for 2020, we believe we are still well on track to achieve the goals laid out last quarter. These include liquidity improvements, cost-saving measures, key sales assumptions and current demand trends, which all underscore the optionality that we have created in our brands to adapt to the changing consumer landscape.”

Co-Diagnostics

Co-Diagnostics Inc., based in Salt Lake City, reported net income of $12.6 million, or 43 cents per share, for the quarter ended June 30. That compares with $1.3 million, or 8 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $24 million, up from $61,574 in the year-earlier quarter.

Co-Diagnostics offers a platform for the development of molecular diagnostic tests.

The company said its COVID-19 test and equipment sales orders approached $50 million year-to-date, including joint venture sales in India, through mid-third quarter.

“In the last four months since Co-Diagnostics received emergency use authorization from the FDA, the company has successfully grown our internationally recognized business and brand,” Dwight Egan, CEO, said in announcing the results.

“With clients in over 50 countries, 25 U.S. states, and validations of test accuracy from regulatory bodies of numerous countries around the world, Co-Diagnostics has established a distribution platform that we believe will continue to support sales and profitability as our tests have gained widespread acceptance in the market.

“We have created a test menu and established the production capacity to meet demand for tests as the nations of the world continue to battle the pandemic, and believe these efforts will continue to bolster the company’s durability in the months and years to come.”