CORPORATE FINANCIAL REPORTS 5-24-21

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

Cricut

Cricut Inc., based in South Jordan, reported net income of $49.4 million, or 24 cents per share, for the first quarter ended March 31. That compares with $13 million, or 6 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $322.8 million, up from $143.7 million in the year-earlier quarter.

Cricut is a technology platform company dedicated to encouraging new ways for people to experience making handmade projects at home.

“Cricut saw continued strong demand as we added over 600,000 users in the last three months and delivered year-over-year revenue growth of approximately 125 percent,” Ashish Arora, CEO, said in announcing the results.

“Sales from connected machines grew 148 percent over first-quarter last year and were limited somewhat by inventory shortages,” said Marty Petersen, chief financial officer. “Importantly, our connected machines are only the start of our users’ journey with Cricut. Connected machine sales led to strong demand for our higher margin subscription offering and accessories and materials products, which contributed to gross margins of 37 percent and EBITDA (earnings before interest, taxes, depreciation and amortization) of $69 million.”

Purple Innovation

Purple Innovation Inc., based in Lehi, reported net income of $20.9 million, or 17 cents per share, for the first quarter ended March 31. That compares with $28 million, or 43 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $186.4 million, up from $122.4 million in the year-earlier quarter.

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

“Our first-quarter results meaningfully exceeded expectations and represent a great start to 2021,” Joe Megibow, CEO, said in announcing the results. “We experienced strong demand early in the year, particularly in our digital channel, followed by a sharp acceleration in our wholesale business as the first quarter progressed.”

Megibow said the company’s recent capacity expansion “has us well-positioned to take advantage of the strong wholesale momentum we are experiencing as brick-and-mortar traffic further approaches pre-pandemic levels and current consumer spending benefits from recent government stimulus.”

Security National Financial

Security National Financial Corp., based in Salt Lake City, reported after-tax earnings from operations of $12.1 million for the first quarter ended March 31. That compares with $1.4 million during the same quarter a year earlier.

Revenues in the most recent quarter totaled $122.7 million, up from $79.6 million in the year-earlier quarter.

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

“I can’t help but admire the execution excellence our teams have accomplished in the first quarter,” Scott M. Quist, president, said in announcing the results. “Overall earnings are up 1,000 percent. The low interest rate environment has provided our mortgage segment a favorable tailwind, but note that every segment’s earnings are up triple digits.

“The COVID-induced climate brings blessings and curses. In no way do we minimize the personal hardships and losses the pandemic has inflicted on so many individuals and families — our insurance and memorial businesses essentially have front-row seats to observe some of those effects. From a financial point of view, low interest rates have helped our mortgage segment, but low rates and higher death claims have hurt our life segment.

“In total, death claims increased 37 percent over 2020 levels with the major part of that increase being COVID-related. Better cash and expense management has helped to offset the increased death claims. While our memorial segment has experienced higher death counts, a major factor in its increased profitability has been improved preneed sales. Again, our job is to execute our business plans in whatever environment we have, and I believe our teams have done that in an admirable fashion.” 

Co-Diagnostics

Co-Diagnostics Inc., based in Salt Lake City, reported net income of $7.9 million, or 26 cents per share, for the first quarter ended March 31. That compares with a net loss of $1.1 million, or 5 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $20 million, up from $1.5 million in the year-earlier quarter.

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

“We are proud to deliver another strong quarter following our record results across 2020,” Dwight Egan, CEO, said in announcing the results. “We continue to see great progress in the development of our new rapid PCR diagnostic testing and are incredibly thankful to our customers, partners and employees for their efforts toward combatting COVID-19 and other infectious diseases.

“We remain well-positioned to provide timely, affordable and high-quality molecular diagnostics solutions to countries around the globe and especially to those with increasing needs and surging crises.

“Looking forward, we continue to anticipate demand for our product portfolio amid strong market conditions. As such, we have maintained solid revenues, earnings and free cash flow to start the year and are excited to accelerate investments in talent and the breadth of our portfolio to create increased capacity and deliver sustained value to our customers and shareholders.”

Superior Drilling Products

Superior Drilling Products Inc., based in Vernal, reported a net loss of $1.1 million, or 4 cents per share, for the quarter ended March 31. That compares with net income of $198,000, or 1 cent per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $2.4 million, down from $5.4 million in the year-earlier quarter.

The company designs and manufactures drilling tool technologies.

“The pace of activity is encouraging as markets begin to recover,” Troy Meier, chairman and CEO, said in announcing the results. “Demand for new Drill-N-Ream well bore conditioning tools in North America continued through April as market conditions strengthen.

“We believe we are also continuing to gain market share in this depressed environment as more operators recognize both the production efficiencies gained and costs saved when using the DNR for their drilling operations. Drill bit refurbishment activity has increased as well during the quarter, with the growing number of drill rigs operating in the U.S.”

Meier said that while the company is not expecting the market in the U.S. to return to pre-COVID levels, “we believe that there is still plenty of room for improvement and more market penetration potential for the DNR.”