Furloughs, closures, some corporate pay cuts, virtual meetings and canceled guidance are some of the actions that New Hampshire’s publicly traded companies disclosed in Securities and Exchange Commission filings over the last month in reaction to the coronavirus-induced recession that has slammed the nation.
PLANET FITNESS
The fitness chain closed its gyms on March 18 as governors across the nation issued stay-at-home orders. On April 9, the company furloughed all of its in-store staff, except for corporate store managers. The company also said it would continue benefits for employees that were already getting them.
CEO Chris Rondeau has elected to forego 100% of base salary. President Dorvin Lively has taken a 30% pay cut, and chief financial officer Thomas Fitzgerald and chief information officer Craig Miller’s salary took 25% cuts. The base salaries of other senior management were reduced as well, and the board of directors waived annual cash retainers.
The company drew down $75 million under its revolving
financing facility, increasing its cash on hand to $540 million as a
“precautionary measure” and is withdrawing guidance.
VAPOTHERM INC.
The
Exeterbased company, which makes equipment to treat patients suffering
from respiratory distress, announced Monday that business has been
booming.
It announced
preliminary results that included an increase of 54% in revenue, to
$18.9 million, for the first quarter, with gross margins of 47.6% to
48%, compared to 42.1% in the first quarter of 2019.
It expects to have $60 million in cash on hand and is withdrawing guidance due to the significant increase of demand.
ALBANY INTERNATIONAL
The
Rochesterbased manufacturer of engineering components announced that it
has suspended production of composites for the LEAP aircraft engine at
its plants in Rochester and Mexico. It
also has halted operations of a facility in Salt Lake City after an
employee tested positive for the coronavirus, but its larger facility
there, which makes parts for the Lockheed Martin F-35 and the Boeing 787
Dreamliner, is continuing.
The
company said there is “considerable uncertainty” in the company’s
Machine Clothing unit, even though the products include materials used
in a “wide variety of health and hygiene application.”
The
company drew down $50 million on its existing credit facility, upping
its cash equivalents to $220 million, and has access to another $200
million revolving credit line. It, too, is withdrawing its previous
guidance, and announced that its May 14 meeting will be virtual.
VF CORP.
VF
Corp., which owns Timberland in Stratham and other outerwear brands
like The North Face, has closed all its retail stores and its
office-based employees are working from home, with full pay and benefits
for its employees.
The company is doing
business online, however, so its distribution center works have been
given extra emergency pay, and VF says it is implementing social
distancing protocols, temperature screening, added protective equipment,
and reduced and rotating shifts and frequent cleanings.
The
company is holding off on a share repurchasing program, drew down $1
billion from a revolving credit facility and says it has $2.4 billion of
cash on hand. The company will offer guidance in May.
SPEEDWAY MOTORSPORTS
North
Carolinabased Speedway Motorsports, owner of nine facilities around the
country, including New Hampshire Motor Speedway in Loudon, announced it
is restructuring because of the coronavirus pandemic.
It
said it would be eliminating 180 positions and another 100 employees
will be furloughed. New Hampshire Motor Speedway officials would not say
how many jobs are affected in Loudon.