Corporate Financial Reports 5-8-23

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

Medallion Bank 

Medallion Bank, based in Salt Lake City, reported company-record net income of $21.4 million for the first quarter ended March 31. That compares with $18.8 million for the same quarter a year earlier.

Medallion Bank is an industrial bank that is a wholly owned subsidiary of Medallion Financial Corp. It provides consumer loans for the purchase of recreational vehicles, boats and home improvements, along with loan origination services to fintech strategic partners.

The company said net interest income in the quarter totaled $44.3 million, compared to $37.2 million in the{mprestriction ids="1,3"} prior-year quarter. Total assets at the end of the quarter were $2.1 billion.

“We are happy with the start to the year and continue to position ourselves for the future,” Donald Poulton, president and CEO, said in announcing the results. “In the first quarter, recurring loan losses in our home improvement portfolio fell from fourth-quarter levels, and a large portion of our recreation portfolio charge-offs were non-recurring and related to our adoption of CECL.

“We also had material medallion loan settlements and recoveries this quarter that reduced provision and boosted earnings. Medallion loan recoveries are difficult to predict, and we expect variability for the rest of 2023.”

Poulton also said Medallion is “fortunate that our deposits are concentrated in brokered deposits that have no right of voluntarily withdrawals. Our deposits are also acquired to fund our loan growth, which differs from a typical bank that acquires assets to use its available deposits. A consequence of this is a relatively small investment portfolio and related unrealized gains or losses. We believe our business model to be resilient under a wide variety of conditions.”

Merit Medical

Merit Medical Systems Inc., based in South Jordan, reported net income of $20.7 million, or 36 cents per share, for the first quarter ended March 31. That compares with $10.5 million, or 18 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $297.6 million, up from $275.4 million in the year-earlier quarter.

Merit Medical is a manufacturer and marketer of healthcare technology. It has about 7,100 employees worldwide.

“We delivered 9.8 percent constant currency revenue growth in the first quarter of 2023, exceeding the high end of our expectations, driven primarily by better-than-expected growth in both the U.S. and international markets during the month of March,” Fred P. Lampropoulos, chairman and CEO, said in announcing the results.

“We also delivered significant year-over-year improvements in profitability with non-GAAP gross and operating margins of 50.1 percent and 16.1 percent, respectively, and more than 20 percent growth year-over-year in both non-GAAP net income and non-GAAP earnings per share.”

SkyWest

SkyWest Inc., based in St. George, reported a net loss of $22 million, or 45 cents per share, for the first quarter. That compares with net income of $17.7 million, or 35 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $691.8 million, down from $735.2 million in the year-earlier quarter.

SkyWest Inc. is the holding company for SkyWest Airlines and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of approximately 500 aircraft connecting passengers to over 230 destinations throughout North America.

“We are making solid headway in our production and performance objectives,” Chip Childs, CEO, said in announcing the results. “We continue to experience exceptionally high demand for our products and appreciate the ongoing engagement from each of our partners. I also want to thank our people for their great work in delivering both an outstanding product and exceptional reliability through the challenging first quarter.”

Overstock.com

Overstock.com Inc., based in Salt Lake City, reported a net loss of $10.3 million, or 23 cents per share, for the first quarter ended March 31. That compares with net income of $10.1 million, or 21 cents per share, for the same quarter a year earlier.

Revenue in the most recent quarter totaled $381.1 million, down from $536 million in the year-earlier quarter.

Overstock.com is an online furniture and home furnishings retailer and technology-focused company.

“The team delivered positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the 12th consecutive quarter,” Jonathan Johnson, CEO, said in announcing the results.

“I am pleased with their efforts to accomplish this in a challenging environment. Our revenue trend improved each month during the quarter, with a more meaningful improvement in late Q1. Importantly, our home-only revenue trend slightly improved in Q1 after stabilizing over the prior two quarters. We continued to navigate a highly competitive landscape to deliver healthy gross margins. While the economic and consumer environment remains uncertain, our strong cash position allows us to focus on executing our plans for the year and continue to deploy new strategies to drive growth.”

Utah Medical Products

Utah Medical Products Inc., based in Salt Lake City, reported net income of $4.2 million, or $1.16 per share, for the first quarter ended March 31. That compares with $3.5 million, or 96 cents per share, for the same quarter a year earlier.

Net sales in the most recent quarter totaled $12.5 million, up from $12.3 million in the year-earlier quarter.

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

FinWise

FinWise Bancorp., based in Murray, reported net income of $3.9 million, or 29 cents per share, for the first quarter ended March 31. That compares with $9.4 million, or 70 cents per share, for the same quarter a year earlier.

In the most recent quarter, loan originations were $900 million, compared to $2.5 billion for the first quarter of the prior year. Net interest income was $12.1 million, compared to $13 million for the first quarter of the prior year. Net income was $3.9 million, compared to $9.4 million in the year-earlier quarter.

FinWise Bancorp is the parent company of FinWise Bank.

“We continued to leverage our resilient, differentiated and diverse business model to effectively navigate the challenging macroeconomic backdrop,” Kent Landvatter, chairman, CEO and president, said in announcing the results. “We remain laser-focused on balancing the trade-off between loan growth and credit quality while managing capital prudently. As we look ahead, we anticipate industry-wide slowdown in loan originations to persist as we move through 2023.

“We will also continue to source new business opportunities, and invest for future growth while striving to maintain a strong capital and liquidity position. While this approach is expected to have an impact on our results in the current year, we believe it will enable us to emerge even stronger when the economy improves. We also believe these efforts will result in the creation of shareholder value over time.”{/mprestriction}