Saturday, September 29, 2018

Arizona Companies Have Experienced Two Massive Earnings Meltdowns (of $23.7 Bil in 2008 and of $13.4 Bil in 2015) and Subsequent Quick and Miraculous Earnings Recoveries When John McCain and Jeff Flake Both Served in the US Congress ….. But You Know What? Kyrsten Sinema Was Then Serving in the US House During One of Them and Serving in the Arizona State House During the Other One .......................................................................................


From a review of SEC filings, there are 23 Arizona headquartered Companies with stock market caps above $1 Bil which have filed their annual predominately audited financial statements consecutively from Fiscal Year End (FYE) 2007 through FYE 2017.

In 2007, these 23 Arizona Companies posted Audited Gold-Standard US GAAP Total Pretax Income From Continuing Operations of $8.713 Bil.

Then the disastrous US Meltdown hit in 2008 and these same Arizona Companies Total Earnings plummeted to a Total Loss of $15.008 Bil in 2008, a decline of $23.721 Bil in just one year.

Remarkably, in 2009, these fine 23 Arizona Companies recovered all of the $23.721 Bil they lost in 2008, posting comparable Total Earnings of $8.887 Bil in 2009, an increase of $23.895 Bil in just one year.  Further in 2010, these 23 Arizona Companies increased Their Total Pretax Income by an additional $4.582 Bil to $13.469 Bil.

During this 2008 earnings meltdown and 2009 earnings recovery, John McCain was in the US Senate, Jeff Flake was in the US House and Kyrsten Sinema was in the Arizona State House.

Then in 2015, these 23 Arizona Companies experienced a second earnings meltdown, with their 2014 Total Pretax Income of $4.892 Bil plummeting down by $13.375 Bil to a Total Loss of $8.483 in 2015.

This time it took these 23 Arizona Companies 2 years to recover this $13.375 Bil of Total Earnings lost in 2015.  In 2016, they recovered $9.484 Bil and in 2017, they recovered an additional $8.740 Bil, resulting in their Total Pretax Income rising to $9.741 Bil in 2017.

During this 2015 earnings meltdown and 2016 and 2017 earnings recovery, John McCain was in the US Senate, Jeff Flake was in the US Senate and Kyrsten Sinema was in the US House.

A key takeaway here is that if you were serving in the US Congress or State House when your State’s Companies experienced two separate massive earnings meltdowns and subsequent quick earnings recoveries, you received a substantial amount of first-hand very valuable experience.  

From a review of SEC filings, the chart below shows the Audited Gold-Standard US GAAP Pretax Income (Loss) From Continuing Operations for the Fiscal Years Ended 2007 through 2010 and 2014 through 2017 for these 23 Arizona Companies.
2007
2017 2016 2015 2014 2010 2009 2008 Largely
Audited Audited Audited Audited Audited Audited Audited Audited
Pretax Pretax Pretax Pretax Pretax Pretax Pretax Pretax
Arizona Companies City Most Income Income Income Income Income Income Income Income
Stock Market Caps > $1 Bil HQs Recent (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)
FYE  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils
Freeport-McMoRan (FCX) Phoenix AZ Dec 17       2,912     (3,461)   (14,131)        (421)       8,527       5,841   (13,294)       6,133
Republic Services Phoenix AZ Dec 17       1,282          966       1,196          885          877          865          159          468
Pinnacle West Capital Phoenix AZ Dec 17          766          698          694          644          506          395          374          452
Microchip Technology Chandler AZ Mar 18          737            90          281          346          461          238          232          349
ON Semiconductor Phoenix AZ Dec 17          548          181          220          192          306            71        (438)          213
Carlisle Cos Scottsdale AZ Dec 17          468          411          468          376          188          203          125          304
Western Alliance Bancorporation Phoenix AZ Dec 17          452          361          259          197          (11)        (185)        (280)            51
Taylor Morrison Home Corp Scottsdale AZ Dec 17          356          314          261          302            89          (36)        (440)        (534)
Amkor Technology Tempe AZ Dec 17          304          215            82          165          251          127        (426)          235
Grand Canyon Education Phoenix AZ Dec 17          284          236          209          180            57            45            11              3
Meritage Homes Corp Scottsdale AZ Dec 17          248          218          189          208              2        (155)        (276)        (456)
First Solar Tempe AZ Dec 17          206        (393)          626          427          762          686          464          156
Knight-Swift Transportation Phoenix AZ Dec 17          194          153          187          172            98            84            94          104
Insight Enterprises Tempe AZ Dec 17          159          139          119          124          115            42        (326)          105
Avnet Phoenix AZ Jun 18          145          310          478          572          871          585     (1,095)          693
Magellan Health Inc Scottsdale AZ Dec 17          135          146            71          118          222          164          140          153
Rogers Corp Chandler AZ Dec 17          133            82            66            81            44          (16)            25            24
Viad Corp Phoenix AZ Dec 17          104            65            38            41              3        (133)            64            63
Cavco Phoenix AZ Mar 18            79            55            44            37              5            (6)              0              9
Mobile Mini Inc Phoenix AZ Dec 17            74            69              1            70            22            46            57            73
Benchmark Electronics Scottsdale AZ Dec 17            73            68            90            98            87            51        (157)          100
Healthcare Trust of America Scottsdale AZ Dec 17            66            47            34            46            (8)          (25)          (28)            (8)
Axon Enterprise Scottsdale AZ Dec 17            16            31            35            32            (5)              0              7            23
Total 22 Cos (No FCX)
       6,829       4,462       5,648       5,313       4,942       3,046     (1,714)       2,580
Total all 23 Arizona Cos
       9,741       1,001     (8,483)       4,892     13,469       8,887   (15,008)       8,713
Annual Increase (Decrease)
       8,740       9,484   (13,375)           4,582     23,895   (23,721)




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