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VOL. 8 | NO. 32 | Saturday, August 1, 2015

Earnings Season Roundup

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International Paper Reports Q2 Earnings Growth: International Paper reports its second-quarter net earnings grew while net sales for the quarter decreased slightly.

The Memphis-based company, which released its quarterly financial results Wednesday, July 29, said second-quarter earnings totaled $227 million, or 54 cents per share. That’s up from $161 million, or 37 cents per share, in second quarter 2014, but down from $313 million, or 74 cents per share, in first quarter 2015.

Quarterly net sales were $5.7 billion in the second quarter of 2015 compared with $5.9 billion in year-ago period and $5.5 billion in the first quarter. Revenues continue to be negatively impacted by foreign exchange translation, the company said in an earnings statement.

– Daily News staff

Wright Medical Reports Sales Growth, Q2 Loss
Memphis-based medical device maker Wright Medical Group Inc.’s second-quarter report sent signals as similarly mixed as in the first quarter – a pickup in sales, yet red ink for the quarter overall.

The company, which reported earnings Wednesday, July 29, after markets closed, reported a second-quarter loss of $44.3 million. It was something of an improvement from the year-ago period, when Wright notched a loss of $56.2 million in second quarter 2014.

Sales were a brighter spot, with net sales totaling $80.4 million for the quarter ended June 30, an 11 percent increase year over year.

Wright president and CEO Robert Palmisano said the quarter’s results also reflected growth in the company’s U.S. foot and ankle business, as well as improvement in its international business.

Meanwhile, Wright is still on track to close its merger with Tornier in the coming quarter and plans to provide updated yearly guidance when the merger closes. Currently, Wright anticipates net sales for 2015 of between $325 million to $335 million.

Wright also is forecasting full-year earnings per share from continuing operations, including stock-based compensation, to range from $1.67 to $1.77.

– Andy Meek

EdR Reports Rising Second-Quarter Earnings
EdR reported rising second-quarter earnings Thursday, July 30.

The Memphis-based college housing real estate investment company reported net income of $2.9 million, or 6 cents per share. That compares to an $8.8 million, or 23-cent per share, loss over the same three-month period last year.

The company reported core funds from operations of $20.1 million, up 16.2 percent from $17.3 million a year ago. EdR buys, builds and manages housing for college students.

“Fundamentals in the student housing industry and within EdR’s markets remain strong,” said EdR chairman Randy Churchey in a statement. “Our pre-leasing velocity for this fall continues to outpace last year, and we anticipate a second consecutive year of significant decline in new supply volume in 2016.

“Our board recognized these strong fundamentals along with our external growth opportunities when recently approving an increase in our quarterly dividend for the sixth year in a row.”

EdR increased its quarterly dividend from 36 cents to 37 cents per share.

– Amos Maki

Trustmark Corp. Reports Second-Quarter Profit
Trustmark Corp., the parent company of Trustmark Bank, has reported a second-quarter profit of $30.6 million, which represents diluted earnings per share of 45 cents.

Trustmark’s board also has declared a quarterly cash dividend of 23 cents per share payable Sept. 15.

Among the quarterly highlights, revenue totaled $142.5 million, up almost 8 percent from the prior quarter. The bank also expanded its mortgage-production capabilities by adding mortgage producers in Alabama and Florida markets.

Deposits were relatively stable, at almost $10 million for the quarter.

– Andy Meek

Metropolitan Bank Grows Income in Second Quarter
Metropolitan Bank, which has co-headquarters in Memphis and Ridgeland, Miss., has closed out another quarter of growth in profit and other key performance metrics.

Net income was up 6 percent, growing from $1.3 million in second quarter 2014 to $1.6 million during the same period this year. During that same period, diluted earnings per share also grew 11 percent, from 18 cents to 21 cents.

Year-to-date gross loan originations were up 24 percent, to $183 million from $147 million in the same period of 2014. And for the first six months of the year, Metropolitan’s earnings were $3 million, compared to $2.3 million during the same period in 2014.

– Andy Meek

MAA Reports Surging Profits
Mid-America Apartment Communities Inc
. reported a banner second quarter highlighted by surging profits.

Fueled by strong leasing conditions in high-value markets and strategic sales, the real estate investment trust reported net income of $136.3 million, or $1.81 per share, a company record. That’s compared to $31.6 million, or 42 cents per share, over the same period a year ago.

Core funds from operations – a key stat that defines a REIT’s cash flow from operations – reached $1.36 per share in the quarter, a 15 percent jump from the year-ago quarter and a record for the company.

Memphis-based MAA, which buys, manages and sells apartment communities, said revenue rose to $258.9 million, up 5.6 percent over the same three-month period a year ago.

"Leasing conditions across our high-growth markets coupled with the opportunities captured from our merger transaction closed in late 2013 continue to generate strong results," said MAA chairman Eric Bolton in a statement. "Delivery of new apartment product across a number of our markets is being well absorbed by the growing demand for apartment housing."

In October 2013, MAA completed its nearly $2.2 billion acquisition of Birmingham-based Colonial Properties, a deal that created the second-largest apartment-focused REIT in the country.

Notable transactions in the quarter include the acquisition of a 325-unit apartment community in Scottsdale, Arizona, and a 254-unit apartment community in Richmond, Virginia. The real estate investment trust has sold 21 apartment properties for $354.3 million, which improved the company's results by $105.4 million.

“We're pleased with the results captured from our planned property sales for the year,” Bolton said during a Thursday, July 30, conference call. Bolton did not rule out more strategic sales during the call but said the company was in no hurry to dispose of additional communities.

MAA, which employs 2,220 across the U.S., including roughly 200 in Memphis, acknowledged in June that growth has caused the company to tap Cushman & Wakefield/Commercial Advisors to review its long-term office needs. MAA currently has its headquarters in a 43,000-square-foot office building at 6584 Poplar Ave. which company founder George E. Cates developed in 1979.

– Amos Maki

PROPERTY SALES 81 201 16,108
MORTGAGES 40 104 10,026
BUILDING PERMITS 130 336 38,272
BANKRUPTCIES 28 56 7,528