It was mid-March when the coronavirus pandemic hit home in America. For most companies, that coincided with the end of the first fiscal quarter of the calendar year 2020.
Since that time, most public corporations have filed two full quarters' worth of financial reports, covering April through September. The second batch was released in late October and early November, offering shareholders a clear view of an entire half-year of pandemic business.
How are Tampa Bay’s big companies holding up?
To assess it, we combed through six months' worth of company news and U.S. Securities and Exchange Commission filings for nine of Tampa Bay’s largest public corporations. (We skipped some that operate on a slightly different fiscal calendar, like Jabil, or that went private during the pandemic, like Tech Data or Benefytt Technologies). Here’s how they’ve done.
Raymond James Financial
Closing stock price on Feb. 28: $83.63
Closing stock price on Nov. 18: $89.08
Revenue, April to September: $3.91 billion, down from $3.95 billion in 2019
Net income, April to September: $381 million, down from $524 million in 2019
The St. Petersburg wealth management firm posted record annual revenues of $7.7 billion during the 2018-19 fiscal year, and $7.99 billion in 2019-20. But income was down year over year, executives said, due to low interest rates and expenses associated with laying off 4 percent of the company’s workforce in September. The company reacted by curtailing expenses (such as travel to conferences) and risk, including selling off hundreds of millions in corporate loans to entities deemed “most vulnerable to the COVID-19 crisis.” In October, chairman and CEO Paul Reilly told investors that the company wasn’t planning any more layoffs. “But we are managing infrastructure spend, technology spend,” he said. "You go across the board, and we are looking at, how do we get more efficient and continue to bring in costs?”
Closing stock price on Feb. 28: $30.46
Closing stock price on Nov. 18: $41.10
Revenue, April to September: $708.44 million, up from $684.42 million in 2019
Net income, April to September: $28.65 million, down from $90.77 million in 2019
The Tampa staffing and professional services firm slightly boosted its revenue year over year, and the drop in net income comes with a significant asterisk, as 2019′s books included nearly $60 million related to selling part of its business. Kforce’s permanent staffing division saw a significant decline, as clients tightened their own workforce budgets. But the company’s temporary hiring division benefited from at least $86.2 million in COVID-19-related government contracts. The company is banking on its technology business to sustain it as companies adapt to a changing workforce. In a recent earnings call, chief financial officer David Kelly said: “Our balance sheet is very strong, our strategic position and client portfolio is in the ideal position, and our performance continues to be encouraging.”
Closing stock price on Feb. 28: $73.50
Closing stock price on Nov. 18: $97.08
Revenue, April to September: $1.08 billion, down from $1.12 billion in 2019
Net income, April to September: $12.89 million, down from $45.55 million in 2019
The Tampa door manufacturer’s steep income drop can be chalked up to nearly $38 million in legal settlements in August and September. If not for that, Masonite would have posted a year-over-year income bounce, largely on the strength of price hikes and cost management. The coronavirus limited Masonite’s production capabilities and curbed demand for its architectural products, as corporate clients tightened their budgets. Net sales were down year-over-year from April to June, then up from July to September. The company is counting on a still-strong housing market to buoy sales in the fourth quarter. president and CEO Howard Heckes recently told investors that if more people shift into long-term remote-work jobs, it could spur interest in larger homes with “sanctuary spaces” — that is, extra rooms with doors. “As footprints get bigger because people want more space as they’re spending more time at home, we see that as potential tailwinds going forward,” he said.
Closing stock price on Feb. 28: $17.99
Closing stock price on Nov. 18: $16.96
Revenue, April to September: $1.34 billion, down from $1.96 billion in 2019
Net income, April to September: A net loss of more than $110 million, compared to net income of $38.39 million in 2019
Like all restaurant businesses, Outback Steakhouse parent company Bloomin' Brands struggled mightily during the pandemic. Its stock price crashed from more than $23 in mid-February to less than $5 by mid-March. Revenue fell more than 40 percent from April to June, when the company lost more than $92 million. Losses weren’t quite as steep from July to September, but still surpassed $17 million. The company touted the fact that it did not lay off employees, and its takeout business had doubled. Bloomin’ plans to lean into fast-casual takeout concepts like Aussie Grill and Tender Shack as it sorts out its place in a post-pandemic world. “We want to be able to serve our consumers at home or in the restaurant, and off-premises (dining) has enabled us to do that,” CEO David Deno told investors in October.
The Mosaic Co.
Closing stock price on Feb. 28: $17.03
Closing stock price on Nov. 18: $19.19
Revenue, April to September: $4.4 billion, down from $4.9 billion in 2019
Net income, April to September: $41.2 million, compared to a net loss of $277.2 million in 2019
Compared to 2019, a year in which low sales and non-cash accounting expenses led to a $1 billion loss, 2020 almost represents a boom year for the Tampa phosphate and potash company. Aside from the temporary closure of a Peruvian mine, Mosaic has described the pandemic’s impact as “limited"; it has taken advantage of tax benefits afforded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act to boost its bottom line. Prices for Mosaic’s fertilizer products have fluctuated due to swings in the global marketplace, including fewer exports to China and fewer American imports from Russia and Morocco. “Economic tightness in the market is driving global prices up. Supply has tightened," president and CEO Joc O’Rourke told investors in November. “On the demand side, the agricultural economy globally is strong. Food security has become a great priority around the world, and fertilizers are very affordable.”
Closing stock price on Feb. 28: $31.68
Closing stock price on Nov. 18: $38.22
Revenue, April to September: $848.56 million, up from $786.55 million in 2019
Net income, April to September: $17.14 million, down from $29.37 million in 2019
The Tampa company, which provides customer assistance, technical support and other corporate services, reported record revenues during the last two quarters. That’s due largely to boosts in client sectors like technology, health care and financial services, which offset significant drops among hotel and travel businesses, traditionally a core part of Sykes' business. The company sustained a net loss in its most recent quarter due in part to unrecoverable losses related to its decision to shrink its real estate footprint. Well before the pandemic, Sykes had many work-at-home employees, and the company has looked to grow that remote workforce. Over time, clients may look to share in the overhead savings, but it might not materially hurt the company provided it can keep expanding its client base outside the travel sector. This has been “the most difficult year of this company, but yet it’s going to be potentially the most successful year of this company," chief financial officer John Chapman told executives this month. "I look at it, and I think there’s nothing temporary about the revenues and the growth that we’ve got this year.”
Closing stock price on Feb. 28: $16.93
Closing stock price on Nov. 18: $33.14
Revenue, April to September: $897 million, up from $691.63 million in 2019
Net income, April to September: $60.51 million, up from $25.77 million in 2019
If any local company can be called a winner during the pandemic, it’s MarineMax. The Clearwater boat retailer set revenue and net income records during both quarters, and posted a record $1.5 billion in annual revenue for the fiscal year ending Sept. 30. Year over year, its fourth-quarter net income nearly quadrupled. Economists have cited the boating boom — as well as increased demand in other high-dollar goods, like RVs and larger homes — as evidence that this year’s economic collapse isn’t impacting every class, or industry, equally. “Boating proved to be a great way to escape the stresses of everyday life and strengthen the bonds of family and friends while avoiding crowds,” CEO Brett McGill told investors last month.
Odyssey Marine Exploration
Closing stock price on Feb. 28: $3.78
Closing stock price on Nov. 18: $6.62
Revenue, April to September: $731,507, down from $1.54 million in 2019
Net income, April to September: A loss of $9.55 million, down from a loss of $7 million in 2019
The Tampa deep-sea treasure- and mineral-hunting business was among a handful of local public companies to get federal help during the pandemic, receiving a $370,400 Paycheck Protection Program loan and a $150,000 Economic Injury Disaster Loan through the Coronavirus Aid, Relief and Economic Safety (CARES) Act. The company has sustained “several years of net losses,” according to a federal filing this week, “and may continue to do so,” due to its ongoing free-trade lawsuit with Mexico over environmental permits to mine a $3.5 billion phosphate deposit in the Pacific Ocean. In August, it raised $11.3 million from the sale of millions of shares of common stock and warrants to purchase common stock; executives believe this will get them through the Mexico claim so they can start mining. "Based on current budgets and forecasts, we expect this capital to provide Odyssey with the longest duration of operating capital in its 26-year history,” chairman and CEO Mark Gordon said in a statement.
Closing stock price on Feb. 28: $14.25
Closing stock price on Nov. 18: $14.86
Revenue, April to September: $974.3 million, up from $927.7 million in 2019
Net income, April to September: A net loss of $109.7 million, down from a net income of $12.8 million in 2019
In early March, Tampa’s Cott Co. completed its purchase of North Carolina company Primo Water, which sells water dispensers and refills, and adopted the company’s name. Talk about unfortunate timing. The company lost a significant stream of revenue when offices around the world closed and sent workers home. And it suffered when Costco, a top driver of new business, closed promotional booths with sampling dispensers in its stores. The company implemented job cuts and furloughs involving hundreds of employees, reduced executive salaries, and took a $115 million goodwill impairment hit on its European operations, all due to market conditions created by the coronavirus. Officials do see opportunity in the work-from-home marketplace, though. “We think people have become accustomed to no-contact delivery,” president and CEO Thomas Harrington told investors in August. “They order online, and when they’re home, they drink more.”
Closing stock price on Feb. 28: $13.22
Closing stock price on Nov. 18: $9.30
Revenue, April to September: $504.5 million, down from $836.8 million in 2019
Net income, April to September: A net loss of $12.5 million, down from a net income of $40.1 million in 2019
It’s been a rough go for New Port Richey company Welbilt, which produces commercial food service equipment. With the restaurant industry in a tailspin, Welbilt saw sales during the period decline nearly 40 percent year over year. Welbilt CEO Bill Johnson called April, May and June “the worst quarter in the history of our industry,” and in a November filing, the company estimated demand for its products would suffer “well into 2021 and beyond.” That said, after enacting layoffs and plant closures, the company did begin reining in losses during the most recent quarter, and has seen slightly better performance in October. “I do think, at some point out there several years, there will be a buildup of restaurants,” Johnson told investors this month. “It’s a very popular form of business that a lot of people like to get into. I think we will see more restaurant new-builds, but I think it’s a couple of years out.”
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