CORPORATE FINANCIAL REPORTS 11-8-20

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

SkyWest

SkyWest Inc., based in St. George, reported net income of $34 million, or 66 cents per share, for the third quarter ended Sept. 30. That compares with $91 million, or $1.79 per share, for the same quarter a year earlier.

The company said the primary factor in its lower results was reduced flight schedules and lower demand resulting from the COVID-19 pandemic.

Revenue in the most recent quarter totaled $457 million, down from $760 million in the year-earlier quarter, again primarily because of the pandemic.

SkyWest Inc. is the holding company for SkyWest Airlines and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines serves more than 250 destinations throughout North America through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines.

“Over the past several months, we have worked with our partners and our people to respond quickly and aggressively to the worst crisis our industry has experienced,” Chip Childs, CEO, said in announcing the results. “The SkyWest team continues to demonstrate exceptional dedication and flexibility, and I want to thank them for their hard work and focus through this challenge. We are committed and remain laser-focused on ensuring we are positioned for the long-term, maintaining strong liquidity, and delivering on our partners’ objectives in the recovery.”

Overstock.com

Overstock.com Inc., based in Salt Lake City, reported net income attributable to stockholders of $23.4 million, or 50 cents per share, for the quarter ended Sept. 30. That compares with a loss of $30.9 million, or 89 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $732 million, up from $347 million in the year-earlier quarter.

Overstock.com is an online retailer and technology company.

“After a record-setting second quarter, we maintained our momentum, continued to outperform expectations, and grew faster than competitors in the third quarter,” Jonathan Johnson, CEO, said in announcing the results. “Our quarterly gross sales in our retail business doubled year over year once again and new customers grew 141 percent. These new customers are making repeat purchases at an increasing rate. Heading into the fourth quarter, I am as confident as ever in our retail business maintaining sustainable, profitable market share growth.”

The increase in customer demand was among the opportunities resulting from the COVID-19 pandemic, particularly in home furnishings categories. Website traffic and the number of new customers grew “substantially,” the company said.

“We continue to face challenges created by the sharp increase in volume, in customer service channels and in fulfillment and delivery, stemming from capacity issues from shipping carriers and some suppliers, including out-of-stock positions on some of our top-performing products,” the company said.

“We cannot predict how the COVID-19 pandemic will unfold in the coming months. Nevertheless, the challenges arising from the pandemic have not adversely affected our liquidity, revenues, or capacity to service our debt, nor have these conditions required us to reduce our capital expenditures.”

Altabancorp

Altabancorp, based in American Fork, reported net income of $11.3 million, or 60 cents per share, for the third quarter ended Sept. 30. That compares with $11.1 million, or 59 cents per share, for the same quarter a year earlier.

Altabancorp is the parent company of Altabank, which has 26 branch locations in Idaho and Utah.

“We are pleased with the results we achieved in the third quarter as we continue to actively manage the negative effects of the COVID-19 pandemic,” Len Williams, president and CEO, said in announcing the results. “Our mortgage banking team is one area, in particular, that has performed well. Mortgage banking revenues grew 67 percent for the year compared with a year ago, reflecting strong refinance demand and higher margins due to decline in overall interest rates.”

The company said total assets grew $731 million, or 30 percent, year-over-year to $3.18 billion. Total deposits grew $615 million, or 29 percent, year-over-year to $2.72 billion. Loans held for investment grew $22 million, or 1.3 percent, year-over-year to $1.7 billion.

As for the pandemic effects, the company said it funded 333 loans totaling $84.6 million under the SBA’s PPP loan program. As of the date of the earnings release, the company had filed 62 applications, or 19 percent, with the SBA, totaling $19 million and had received loan forgiveness on 15 loans, totaling $800,000.

As of the release date, the company had offered temporary loan payment relief to 415 businesses and 108 individuals totaling approximately $320 million, or 18.5 percent of total loans, excluding SBA PPP loans.

Utah Medica Products

Utah Medical Products Inc., based in Salt Lake City, reported net income of $2.9 million, or 80 cents per share, for the third quarter ended Sept. 30. That compares with $3.7 million, or 99 cents per share, for the same quarter a year earlier.

Net sales in the most recent quarter totaled $10.5 million, down from $12.5 million in the year-earlier quarter.

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

“As stockholders know, the desire to preserve capacity for treating patients with COVID-19 led to suspending many hospital medical procedures. As a result, UTMD began to experience lower demand for its specialty medical devices in March during 1Q 2020,” Kevin Cornwell, CEO, said in announcing the results.

“As the largest segment of UTMD’s revenues in recent years has been in gynecology procedures deemed ‘nonessential,’ such as tubal ligation and loop excision of the transformation zone, UTMD sales dropped precipitously in 2Q 2020.

“My view is that comparisons of 3Q and 9M 2020 results with the same periods in the prior year represent the magnitude of a revenue hole that UTMD fell into caused by COVID-19 management policies, not a fundamental trend. The trend which may be of more interest and cause for optimism is a comparison of successive quarterly revenues during 2020.”

Third-quarter U.S. sales “substantially recovered” from the second quarter. “Although sales outside the U.S. have been slower to recover, they nevertheless were significantly higher in 3Q 2020 than in the dismal 2Q 2020,” Cornwell said. “Unless governments again restrict medical care, we see the recovery trend continuing to be positive, so that 4Q 2020 is likely to be UTMD’s best revenue quarter of the year.”

Merit Medical Products

Merit Medical Products Inc., based in South Jordan, reported a net loss of $3 million, or 5 cents per share, for the quarter ended Sept. 30. That compares with a loss of $3.4 million, or 6 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $244 million, up from $243 million in the year-earlier quarter.

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

“Our third-quarter revenue results reflect better-than-expected performance driven by strong execution and discipline despite a fluctuating global recovery,” Fred P. Lampropoulos, chairman and CEO, said in announcing the results, adding that the company is “particularly proud” of its profitability performance in the third quarter.

The company remains focused on its plan to make the company more efficient, he said, addin that it is on track to complete the movement of more than 14 production lines and consolidate several facilities before year-end.