Wednesday, September 19, 2018

The Three Southwest Indiana State Republicans Elected in the Tea Party Wave of 2010 (Jim Tomes, Ron Bacon and Wendy McNamara) ..... Indiana Companies Have Underperformed During Their Seven Years in Office (2011 to 2017) ....................................................................................

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.

Unfortunately, the 3 Indiana State Republican candidates (Jim Tomes, Ron Bacon and Wendy McNamara) all refused to show up for the debate last night.

All 3 have been in office from 2011 to now.

 Democrats Edie Hardcastle is running against Jim Tomes,  John Hurley against Ron Bacon and Steve Folz against Wendy McNamara.  All 3 Democrats showed up and so did Democrat Ryan Hatfield who is running unopposed.

 All 4 State Democratic candidates and also US House candidate William Tanoos did superb jobs in their presentations and their answers to questions.

 In my eyes, the stick out performer was Edie Hardcastle.

 Now to the Indiana Company numbers.

There were 23 Indiana Headquartered Companies which filed audited 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 ...... and it's not even close.  There is no way the bulk of these Indiana Companies could be pleased with the Southwest Indiana State Republicans in office or with US House Republican Larry Bucshon.  The leaders of these 23 Indiana Companies can read and can understand Company financial statements.

 These 23 Indiana Cos posted Audited Gold-Plated US GAAP Total Pretax Income From Continuing Operations of $16.010 Bil in the Annual Year Ended December 2017, which is down 4.4% from their comparable total earnings of $16.744 Bil in the Annual Year Ended 2010.

 So who held office in Southwest Indiana during the entire seven years from 2011 to 2017 when this substantial Indiana Companies earnings underperformance occurred?  All Republicans and specifically Larry Bucshon, Jim Tomes, Ron Bacon and Wendy McNamara.

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 Pretax Income From Continuing Operations of only $4.863 Bil.

But then the comparable Total Pretax Earnings of these same 23 Indiana Cos just soared like a rocket in 2009, up by an off-the-charts 184%, increasing from $4.863 Bil in Annual 2008 to $13.816 Bil in Annual 2009.

And in Annual 2010, these same Total Pretax Earnings increased by another 21% to $16.744 Bil.

So who held these key elected Southwest Indiana office seats when these Indiana Companies earnings exploded so incredibly high in the two years 2009 and 2010?  All Democrats:  Dennis Avery, Trent Van Haaften, Gail Riecken, Bob Deig and Brad Ellsworth.  And Democratic US Senate Candidate Joe Donnelly was then also in US House elected office up in Northern Indiana.

From SEC filings, the below chart shows the Audited US GAAP Pretax 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
Pretax Pretax Pretax Pretax Pretax Pretax
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          3,964          4,555          4,631           4,354           7,403             3,122
Cummins Columbus IN Dec 17          2,365          1,930          2,025           1,617              640             1,178
Simon Property Group Indianapolis IN Dec 17          2,245          2,135          2,139              754              387                600
Eli Lilly Indianapolis IN Dec 17          2,197          3,374          2,790           6,525           5,358           (1,308)
Steel Dynamics Fort Wayne IN Dec 17             935             564            (242)              213               (18)                735
Allison Transmission  Indianapolis IN Dec 17             527             341             289                83             (283)              (291)
CNO Financial Group Carmel IN Dec 17             481             353             368              294              174                    4
Zimmer Biomet Holdings Warsaw IN Dec 17             465             400             153              860              998             1,122
NiSource Merrillville IN Dec 17             443             510             340              436              396                557
OneMain Holdings Evansville IN Dec 17             431             356            (226)           1,202          (1,074)              (951)
KAR Auction Services Carmel IN Dec 17             398             355             341                97                34              (248)
Duke Realty Corp Indianapolis IN Dec 17             290             298             184                28             (260)                  79
Vectren Evansville IN Dec 17             262             325             297              208              197                205
LCI Industries Elkhart IN Dec 17             213             199             114                45               (36)                  19
Old National Bancorp Evansville IN Dec 17             169             200             163                43                 (7)                  62
First Merchants Corp Muncie IN Dec 17             134             109               91                  3               (69)                  29
Wabash National Corp Lafayette IN Dec 17             123             185             163             (142)             (105)              (109)
Patrick Industries Inc  Elkhart  IN Dec 17             113               84               66                  1                 (6)                (77)
Franklin Electric Co Fort Wayne IN Dec 17             105             104               86                55                39                  68
1st Source Corp South Bend IN Dec 17             101               89               89                60                32                  46
Lakeland Financial Corp Warsaw IN Dec 17               90               77               69                37                28                  29
Kite Realty Trust Indianapolis IN Dec 17               14                 3               29                 (9)                  5                  10
Endocyte Lafayette IN Dec 17              (55)              (44)              (41)               (20)               (17)                (18)
Total all 23 Indiana Cos        16,010        16,502        13,918         16,744         13,816             4,863
% Change vs Prior Year -3.0% 18.6% 21.2% 184.1%
% Change 2017 vs 2010 -4.4%
% Change 2010 vs 2008 244.3%

So what about the After-Tax Net Income numbers?  Well, they were even more pronounced ..... Down 6.5% in the seven years from 2010 to 2017 and up 807% in the two years from 2008 to 2010.

 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. 

My clear conclusion is that the Tea Party Wave of 2010 has severely harmed Total Indiana Company profits of the past seven years.  And it has also done so all over the country.













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