Wednesday, September 19, 2018

Indiana Companies Underperform on an After-Tax Earnings Basis in the Seven Years (2011-2017) of 8th District Republican Larry Bucshon's Term in Office With Their Audited After-Tax Profits Down By 6.5% Over That Seven Year Period; While These Same Indiana Companies Posted a Spectacularly Off-the-Charts 807% Audited After-Tax Profits Increase in the Immediately Preceding Two Years (2009 and 2010) When Democrat Brad Ellsworth Held This Office ....................................................................................

Since there was an Indivisible Evansville Meet the Candidates forum held last night Tuesday, Sept 18th at 7:00 PM in the Ivy Tech Auditorium (3501 N First Avenue) in Evansville, Indiana, I think it would be helpful to research just how well Indiana Companies have performed since the horrible 2008 US financial meltdown.

The National Indivisible Organization has endorsed Progressive Democratic candidate William Tanoos, who is running for Indiana 8th District House seat which is currently held by Republican incumbent Larry Bucshon.  It has only endorsed 64 candidates nationally.

Unfortunately, Bucshon refused to show up for the debate last night.

Bucshon has been in this office from 2011 to now.

During this seven-year period (2011-2017) where fiscal year end December Indiana Headquartered Companies have filed their audited annual reports with the US SEC, there were 23 Indiana Companies which filed financial statements both for the December year 2008  and also consecutively through the most recent year ended December 2017 and which also had stock market caps of above $1 bil recently.

Nearly all Republicans, a high percentage of Independents and even many perceptive Democrats all agree as a starting point that for US capitalism to work properly, Companies must generate in the aggregate reasonably healthy profits.

The problem here is that Indiana Companies in the aggregate have not generated reasonably healthy profits in the past seven years.

These 23 Indiana Cos posted Audited Gold-Plated US GAAP Total After-Tax Net Income From Continuing Operations of $12.043 Bil in the Annual Year Ended December 2017, which is down 6.5% from their comparable total earnings of $12.884 Bil in the Annual Year Ended 2010.  This covers Bucshon's first seven annual years in office.

The US financial meltdown just crushed Indiana, just like it did many other US States.  For the Annual Year Ended December 2008, these 23 Indiana Companies Posted Audited Gold-Plated US GAAP Total After-Tax Net Income From Continuing Operations of only $1.420 Bil.

But then the comparable Total After-Tax Earnings of these same 23 Indiana Cos just soared like a rocket in 2009, up by an off-the-charts 591%, increasing from $1.420 Bil in Annual 2008 to $9.806 Bil in Annual 2009.

And in Annual 2010, these same Total After-Tax Earnings increased by another 31.4% to $12.884 Bil.

So who held this key 8th District seat when these Indiana Companies earnings expanded so incredibly high in the two years 2009 and 2010?  Democrat Brad Ellsworth.

From SEC filings, the below chart shows the Audited US GAAP After-Tax Net Income (Loss) From Continuing Operations for each of these 23 fine Indiana Companies for the most recent three years (2017, 2016 and 2015) and also for the 2008 US Meltdown Year and the Two Recovery Years of 2009 and 2010:
2017 2016 2015 2010 2009 2008
Audited Audited Audited Audited Audited Audited
After-Tax After-Tax After-Tax After-Tax After-Tax After-Tax
Net Net Net Net Net Net
Income Income Income Income Income Income
(Loss) (Loss) (Loss) (Loss) (Loss) (Loss)
Indiana Companies From From From From From From
With December Year Ends Most Continuing Continuing Continuing Continuing Continuing Continuing
Stock Market Caps > $1 Bil Recent Operations Operations Operations Operations Operations Operations
FYE  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils
Anthem Indianapolis IN Dec 17          3,843          2,470          2,560           2,887           4,746             2,491
Simon Property Group Indianapolis IN Dec 17          2,245          2,135          2,139              754              387                600
Zimmer Biomet Holdings Warsaw IN Dec 17          1,813             305             146              597              717                850
Cummins Columbus IN Dec 17             994          1,456          1,470           1,140              484                818
Steel Dynamics Fort Wayne IN Dec 17             806             360            (145)              130               (11)                455
Allison Transmission Indianapolis IN Dec 17             504             215             182                30             (324)              (328)
KAR Auction Services Carmel IN Dec 17             362             222             215                70                23              (216)
Duke Realty Corp Indianapolis IN Dec 17             291             298             188                29             (254)                  86
Vectren Evansville IN Dec 17             216             212             197              134              133                129
OneMain Holdings Evansville IN Dec 17             183             243              (93)           1,454             (642)           (1,346)
CNO Financial Group Carmel IN Dec 17             176             358             271              285                86              (410)
LCI Industries Elkhart IN Dec 17             133             130               74                28               (24)                  12
NiSource Merrillville IN Dec 17             129             328             199              295              231                371
Wabash National Corp Lafayette IN Dec 17             111             119             104             (142)             (102)              (126)
Old National Bancorp Evansville IN Dec 17               96             134             117                38                14                  62
First Merchants Corp Muncie IN Dec 17               96               81               65                  7               (41)                  21
Patrick Industries Inc  Elkhart  IN Dec 17               86               56               42                  1                 (5)                (67)
Franklin Electric Co Fort Wayne IN Dec 17               79               79               74                40                27                  45
1st Source Corp South Bend IN Dec 17               68               58               57                41                25                  33
Lakeland Financial Corp Warsaw IN Dec 17               57               52               46                25                19                  20
Kite Realty Trust Indianapolis IN Dec 17               14                 3               29                 (9)                  5                  10
Endocyte Lafayette IN Dec 17              (55)              (44)              (41)               (20)               (17)                (18)
Eli Lilly Indianapolis IN Dec 17            (204)          2,738          2,408           5,070           4,329           (2,072)
Total all 23 Indiana Cos        12,043        12,008        10,304         12,884           9,806             1,420
% Change vs Prior Year 0.3% 16.5% 31.4% 590.6%
% Change 2017 vs 2010 -6.5%
% Change 2010 vs 2008 807.3%

There are only 3 additional Indiana Cos meeting the above criteria except that they have other than a December fiscal year end: Berry Plastics Group which has a very strong earnings trend, Thor Industries which has a strong earnings trend and Hillenbrand.

Also, there will be other US States whose Cos will have similar total earnings trends to that of the above total earnings trend of these 23 Indiana Cos.


Posted by at