Evergy Hires Texan as New CEO

Evergy  (NYSE: EVRG) has hired a new president and CEO.

The company said today its board of directors has unanimously appointed David A. Campbell as President and Chief Executive Officer and a Director of Evergy, effective Jan. 4, 2021.

Campbell succeeds Terry Bassham, who previously announced his intention to retire from the Company. Bassham will remain Evergy’s President, CEO and member of the board until Campbell joins the Company.

“David is a proven leader with a track record of operational and financial success. His deep understanding of our industry and his ability to work with and balance the interests of all stakeholders, makes him our first and best choice to lead Evergy at this pivotal time,” said Mark Ruelle, Evergy Board Chair and Chair of the Search Committee. “David’s appointment is the culmination of a comprehensive national search that included many highly qualified internal and external candidates. The Search Committee focused on identifying a proven leader with deep industry experience, who has a strong reputation for having led value-building transformations and one who understands Evergy and its importance to the communities we serve. In David, we have found that leader.”

Campbell, 52, has served as Executive Vice President and Chief Financial Officer of Vistra Corporation, a multi-state electricity generation and retail electric provider headquartered in Dallas, Texas. Campbell’s focus at Vistra has included the company’s portfolio transformation, the announcement of the company’s greenhouse gas reduction targets, and the articulation of the company’s capital allocation strategy and long-term fundamental outlook. During his tenure, the Vistra team delivered at the high-end of its 2019 guidance and recently raised its 2020 outlook to the top end of the prior guidance range.

In addition to his strong performance at Vistra, Campbell has been successful in multiple leadership roles. As CEO of Sharyland, Campbell successfully navigated complex regulatory dynamics and won support for an asset swap with Oncor that resulted in a rate reduction for Sharyland’s customers, who otherwise faced higher rates due to Sharyland’s rural service territory. Prior to that, as CEO of Luminant, the largest power generator in Texas, Campbell oversaw coal and nuclear operations that consistently achieved top decile performance in capacity factors and top quartile or top decile performance in costs relative to industry benchmarks. As CFO of TXU Corp., Campbell was part of the senior leadership team that led the company’s financial and operational turnaround from 2004-2007, achieving the top performance in the S&P 500 Utilities Index.

“Evergy has a talented and capable leadership team, a steadfast commitment to serving customers and communities, and a strong track record as an emissions-free energy supplier,” said Campbell. “Evergy’s Board and management team have carefully developed and embarked on a high-performance strategic plan that contains the right elements to accelerate growth and provide tangible benefits for all the Company’s stakeholders. I join Evergy with a shared drive and commitment to provide customers with clean, affordable, reliable and secure energy to power their lives, while driving sustainable, superior value for shareholders. I look forward to working alongside the team to ensure that together we realize the potential Evergy has for continued success and growth.”

In August 2020, Evergy announced it was not going to seek a merger, but instead would pursue its Sustainability Transformation Plan (STP), a five-year strategic plan to deliver increased value for Evergy shareholders and benefit Evergy customers through additional cost reductions, improved grid reliability and security, enhanced customer experience and further accelerate Evergy’s transition to clean energy. The STP is expected to move Evergy to a top-quartile electric utility with 6% to 8% growth in earnings per share through 2024, and without dilution from having to issue additional equity, the company said.

Ruelle concluded, “Terry’s leadership and the culture he built have put the company on a strong, sustainable track for continued success. Terry has had a long and distinguished career as a utility executive, board member and colleague. We are grateful for his commitment to ensure a seamless transition and wish him well in his well-deserved retirement.”

Evergy also today reaffirmed its previously announced 2020 earnings guidance. As disclosed in its third quarter 2020 earnings results, Evergy narrowed 2020 GAAP EPS guidance to the upper end of the range of $2.58 to $2.73 and adjusted EPS guidance of $2.95 to $3.10.

Evergy, Inc. (NYSE: EVRG) serves approximately 1.6 million customers in Kansas and Missouri. Evergy was formed in 2018 when KCP&L and Westar Energy merged. 

Disclosure: The editor of this blog owns shares of Evergy.

CapFed Stock Climbs 13% after joining index but still down 21% YTD

By Michael Hooper

Capitol Federal Financial (CFFN) stock jumped 13% on Friday after it was announced the company would join the S&P SmallCap 600. The stock had hit a recent low of $8.75, but closed Friday at $10.60 per share.

Topeka-based Capitol Federal Financial (CFFN) is down 21% year-to-date compared with a 4% positive return of the S&P 500 through Oct. 2, 2020. The general stock market fell 30% in March during the Covid-19 crisis, but recovered over the spring and summer.

Evergy (EVRG) -- which is a combination of Westar Energy and Great Plains Energy -- is down 19% year-to-date.

Both Evergy and Capitol Federal are conservative retirement stocks that pay nice dividends but are not growth stocks. Mega cap growth stocks like Apple and and Google are winning in the market this year. Any stock that benefits from the home consumer is doing well. Amazon, Facebook, Zoom are all up gigantic. Banks, oil and utility stocks all have performed poorly this year. They are out of favor.

Evergy stock fell from $65 per share to $50 per share after the company announced in early August it was not going to seek a merger or sale as recommended by hedge fund Elliott Management. Investors, thinking there is not going to be a potential upside in a merger or acquisition, dumped the stock. Evergy earnings have been a little weak in the last three quarters yet Evergy is earning respectable money and able to pay its dividend, currently yielding 3.82%. Evergy management sees opportunities to reduce operating costs through its strategic plan by finding synergies between the Missouri and Kansas utilities and eliminating waste. Evergy is stepping up its capital improvement plan, to generate more returns in the future. EVRG stock closed Friday at $51.97

Capitol Federal Financial has fallen from $14 per share in January to $8.75 per share in mid-September. Then recovered 13% in one day after being appointed to replace Neogen (NEOG) in the S&P SmallCap 600 upon Neogen's move into the S&P MidCap 400.

Banks tend to perform better with higher interest rates, this gives them more flexibility in their net interest margin, but interest rates have fallen dramatically this year. The 10-year Treasury only yields 0.69%. People will see almost no returns on their savings accounts. Earnings at CapFed have been OK, but it's possible it may see some benefit in the third quarter from the uptick in demand for housing in Kansas. A few years ago, the company purchased Capital City Bank; this has added new services to the CapFed menu, including commercial loans and trust services. These areas of business will see growth as the bank scales out its commercial and trust services to all of its locations.

On August 6th, Michel' Phillip Cole, a member of the board of directors of Capitol Federal Financial, filed Form 4 with the Securities and Exchange commission saying she had purchased 7,040 shares on August 6th at 9.9459 per share. She listed the purchase as an open market or private purchase of stock. The form says she owns 19,411 shares of Capitol Federal. 

Perhaps the CapFed board member's recent purchase of stock may indicate she thinks there is value in the company and shares are under priced. The bank pays board members $66,000 a year for serving on the board.

CapFed stock is trading near book value. Before Covid-19, CFFN stock traded at 1.4 times book value in the previous three years compared to the current 1.12 ratio.

Disclosure: The author owns shares of Evergy (EVRG), but owns no shares of Capitol Federal.

Hot Real Estate Market In Topeka

This house at 907 SW Anderson Terrace, Topeka, sold in two days, $10,000 over asking price. 

By Michael Hooper

Houses are selling fast in Topeka as the community struggles with an historic low number of houses for sale.

Homes in Shawnee County that sold in July were typically on the market for three days and sold for 100 percent of their list prices, according to the Sunflower Association of Realtors.

Total home sales in Shawnee County rose by 3 percent in July to 273 units, compared to 265 units in July 2019. Total sales volume was $47.2 million in Shawnee County in July, up 17.9 percent from a year earlier. The median sale price in July was $151,000, up from $143,500 a year earlier. 

"The market is hot hot hot," said Helen Crow, agent with Kirk & Cobb.

The total number of active listings in Shawnee County at the end of July was 186 units, down from 344 at the same point in 2019. This represents less than one month's supply of homes available for sale, according to page 255 on Sunflower Association's July report.

"We have the lowest inventory of homes for sale since the troops came home from World War II," said Crow. "There was a housing crunch back then. In 1973, housing was tight but not like this, this is just crazy. We used to have 700 to 900 houses for sale."

A constrained housing supply will lead to more increases in value of the property, she said. 

A good example of what is happening in the market is 907 S.W. Anderson Terrace, my neighbor's house. The three bedroom house went on the market for $110,000 on Friday, Aug. 14. By Monday, Aug. 17, the house had been sold. Multiple offers came in for the property. Crow said she advised her client to bid $10,000 over the asking price and his bid was accepted.

The median list price of homes on the market at the end of July was $153,425. During July, a total of 269 contracts were written up from 237 in July 2019. At the end of the month, there were 320 contracts pending, compared to 311 at the end of July 2019.

The city of Topeka found 1,008 vacant homes without water service in January 2020, Crow said. There are others with water on but still vacant, so there could be more housing stock available, she said. Many of those homes are in terrible shape. Some are OK, but the owner is not motivated to sell for some reason. Crow herself said she is holding onto a childhood home that she should be selling. "I probably need to see a psychiatrist," she said.

Crow said nationwide inventory levels have been falling. There used to be 2 million existing homes for sale in 2019. In June 2020, that number fell to 1.57 million, according to ycharts.

Millennials want to buy a home but Baby Boomers are living longer and staying in their homes, she said.

Another possible reason inventory is so low is some people had considered selling their home in 2020 but when the Covid-19 crisis hit in March, they delayed their plans and stayed put.

Jeff Huckabay, real estate agent with Reece & Nichols, said 2020 started slow, but picked up in the spring, even though the Covid-19 crisis hit.

"This year has been different with Covid-19 but basically it's been a frenzy," he said. "There is not enough inventory. Sellers are getting top dollar. It's a sellers market."

Sometimes, he said, he schedules a buyer to see a home, but by the time they get there, it's almost sold. For example, a couple wanted to buy a home after seeing it in the morning, but the agent for the house said offers were being presented to the seller at 11:30 a.m. that same day. He and his client had 30 minutes to present an offer. Their offer was $6,000 over asking price and they dropped the inspections in order to make the deal happen.

A buyer who is offering below the asking price will likely not get the deal, he said.

Sunflower Association of Realtors represents Brown, Greenwood, Jackson, Jefferson, Lyon, Nemaha, Osage and Shawnee counties.

Total home sales in the Sunflower multiple listing service rose by 10.1% last month to 445 units, compared to 404 units in July 2019. Total sales volume was $75.4 million, up 17.4% from a year earlier. The median sale price in July was $146,000, up from $145,000 a year earlier. Homes that sold in July were typically on the market for 5 days and sold for 100.0% of their list prices. 

The total number of active listings in the Sunflower multiple listing service at the end of July was 451 units, down from 786 at the same point in 2019. This represents a 1.4 months' supply of homes available for sale. The median list price of homes on the market at the end of July was $168,000.

During July, a total of 398 contracts were written up from 370 in July 2019. At the end of the month, there were 509 contracts pending, compared to 476 at the end of July 2019.

Buffett Was Wrong To Sell Airlines

By Michael Hooper

I think Warren Buffett was wrong when he sold his airline stocks during the Coronavirus pandemic. I recently purchased shares of stock in United Airlines (UAL), Southwest Airlines (LUV), JetBlue Airways (JBLU) and Spirit Airlines (SAVE).

Warren Buffett has favored owning hard asset companies like railroads, utilities, manufacturers, banks and insurance companies. He has avoided tech companies because he was afraid new technology would replace the old, leaving some companies behind to die. He is usually the most consummate long-term investor, he typically holds onto stocks for life. Yet he has sold companies. He bought IBM, held it for several years and sold it with no gain. He missed out on a much better tech play with Microsoft that was right there in front of him with Bill Gates on his board of directors for so many years, Buffett had an inside view on Microsoft, now worth $1.4 trillion in market cap compared to $108 billion market cap for IBM. The fact that Buffett chose IBM over Microsoft shows his old man ways stuck in the past. IBM was a name he was familiar with for half a century. Microsoft was a newcomer to the world of tech compared to IBM yet Microsoft made itself into a much larger and more profitable organization than IBM. He’s not all bad at tech, considering Berkshire Hathaway (BRK.B) has a huge position in Apple.

Warren Buffett has owned the airlines before. Buffett invested in US Air in the 1990s, but a price war scared him out of the business. The low-cost carriers expanded their seats, forcing the old-time airlines to lower their fares or face extinction. Buffett didn't think the business was sustainable so he sold his position in US Air. Since then, the airlines have found ways to improve their margins and stay airborne.

Prior to Covid-19, consumers had it good with airline travel, you could fly anywhere in the world at a reasonable price. And the airlines made enough money to stay alive and even pay dividends. Then the Covid-19 crisis hit and airline travel virtually stopped overnight. I think Buffett panicked when he sold the airlines in March-April 2020. He had never seen a stock market crash related to a pandemic before. He had never seen airlines' income vanish overnight. This halt in travel was unnerving. Airlines got a bailout from the government. Buffett doesn't want his companies dependent on the government for bailouts.

With millions of people being laid off during the pandemic, the outlook for stocks looked bleak when Buffett sold his airline stock. Yet U.S. stocks did not stay down long, firing a comeback in April and May. Investors believe somehow the world will find a way to deal with Coronavirus. We believe a vaccine will be found. This faith will carry us forward but we don not know the future and there is no guarantee scientists will create a vaccine that works. There are some promising drugs, but anything can happen. A resurgence in Coronavirus cases is already occurring in places like Florida and Texas where they have opened up their economies.

My portfolio is 74% equities, 22% bonds and 3% cash. So I'm pretty much fully invested. During the downturn I sold some ETFs in the S&P 500 and bought stocks like Apple, Google, Union Pacific, Church & Dwight, Norfolk Southern, Hershey, Casey's General Stores and Visa. As of this writing my portfolio is down 11% year to date, largely because of an overweight position in Berkshire Hathaway. My portfolio was up 18% in 2019.

I bought Southwest Airlines at $26.62 per share on May 11 and then sold my position on June 5 at $37.96 per share for a 42.6% short term gain. I bought United Airlines at $24.52 per share on May 11th and then sold at $42.04 per share on June 5, a 71.45% return. On June 15th I bought back into Southwest Airlines at $36.45 per share and United Airlines at $39.13 per share. I bought JetBlue Airways at $14.25 per share and Spirit Airlines at $24.16 per share.

Airlines will survive. People will eventually travel again. We are a mobile nation. On The Road by Jack Kerouac is a way of life for many people. The adventurous spirit is part of the American Dream.

I am not giving up on Warren Buffett even though I think his best years are behind him. In fact I bought a few more shares of Berkshire Hathaway in the downturn. His company owns about 100 great businesses like Geico, BNSF Railway and See's Candy. It's full of cash, and really undervalued below $200 per share. I have Berkshire Hathaway stock that I have held for over 20 years.  Buffett has been my mentor. I followed him into the railroads in 2009 and 2010. I hope that Buffett will give more cash to his top lieutenants to invest like Todd Combs and Ted Weschler. These two guys are younger, agile and more attuned to the times than Buffett.

The police killing of George Floyd in Minneapolis exposed a deep vein of racism in America, this touched so many lives, people have protested against racism here and around the world. I could not believe the stock market was climbing while there was mayhem in the streets. I hope something good comes of his death, that perhaps we can train police in ways to de-escalate violence rather than increase violence after they come upon a scene.

Presidential election years often are good years in the stock market. I still think the US stock market in the United States is the best place to be invested. I hope doctors find a cure to the Coronavirus soon. Meanwhile stay safe everyone, stop racism now and happy investing.

Editor's Note: The author owns stock in Berkshire Hathaway as well as the airline stocks mentioned in this article.

Evergy Taking Proposals For Sale of Company

Evergy plans to take proposals from potential buyers next month after pressure from activist investor Elliott Management to improve its operations or sell itself, according to a Bloomberg report.

Evergy plans to run a two-pronged strategic review as part of a settlement reached with Elliott in March, Bloomberg said. The review is focused on finding ways to improve the company’s operations on a standalone basis as well as looking at potential strategic alternatives.

As part of that process, Evergy plans to launch a full sales process in June, Bloomberg said citing confidential sources. The company and its advisers plan to reach out to several potential buyers to gauge their interest, including NextEra Energy Inc., WEC Energy Group Inc., CMS Energy Corp., Ameren Corp. and American Electric Power Co., Bloomberg reported.

The process is in its early stages and there is no guarantee any of the parties would pursue a deal or that the process will result in a sale of the company, Bloomberg wrote.

The company’s goal is to have proposals in place before the July 30 deadline set for the results of the review to be reported to the board, the people said. Evergy has said it plans to update the market in August on how it will proceed.

Bloomberg said representatives for NextEra, WEC, CMS Energy, Ameren and AEP said they don’t comment on market rumors or speculation.

I contacted Gina Penzig of Evergy about a potential sale of the company and she said "We don’t comment on speculation in the marketplace." 

In early April, Reorg M&A reported that NextEra Energy (NEE) is working with advisers to consider an offer for Evergy.

NextEra Energy, based in Houston, operates several wind farms in Kansas. Evergy purchases power from multiple wind farms that are owned by NextEra, said Gina Penzig, spokeswoman for Evergy in early April.

Evergy is already changing its strategy because of pressure from Elliott Management. Evergy has increased its five-year capital investment plan to $7.6 billion through 2024 compared to $6.1 billion in its prior plan. Evergy plans to spend $1.5 billion per year for five years in projects that modernize the electric grid, improve reliability while reducing operations and maintenance expense.

With the increased capital investment, Evergy has elected to halt the remainder of its share repurchase program.

Evergy was formed in 2018 with the combination of KCP&L and Westar Energy. The company has 1.6 million customers in Kansas and Missouri.

In 2019, Evergy earned $670 million or $2.79 per share compared with $536 million or $2.50 per share for 2018.

Evergy has been cutting staff through attrition and not replacing them when they retire or leave in order to reduce operating expenses.

One of the first things that Elliott wanted after acquiring shares of Evergy was to put the company up for sale, according to comments made by Evergy leadership. The problem with this is Evergy just went through a merger between KCP&L and Westar Energy. That merger took years of work and hundreds of hours of testimony and documents before the Kansas Corporation Commission. Initially, the KCC rejected the sale because the deal required too much debt. The two companies changed the deal to a stock for stock merger. Then the KCC approved the deal.

Sometimes a utility merger is not always a good idea. St. Joseph Light & Power merged in 2000-01 with Aquila of Kansas City, Mo., and the shareholders with St. Joseph Light & Power did not do so well after the merger because shares in Aquila fell after the merger. St. Joseph Light & Power shareholders who sold ahead of the merger did OK, but the shareholders who took the new stock did not.

Thoughtful Investor Editor Michael Hooper owns shares in Evergy.

Bicycle Sales Are Booming During Coronavirus Lockdown

My Surly Ogre

By Michael Hooper

We've all heard of the toilet paper shortage. Now bicycles are the new toilet paper.

People are looking for ways to exercise and stay healthy during the coronavirus lockdown. Bicycles are the attraction.

"We've had world record sales days," said Gary Long, owner of Cycle Works in Lawrence, Kan. "Unfortunately supplies are running out. It's tough to keep up with demand."

Gyms have been closed during the coronavirus shutdown.

People want something to do during the pandemic, and cycling is a fairly safe form of exercise, Long said in a phone interview.

Brian Buell, owner of Bonzai Cycle Werx, North Richland, Texas, said he has been selling bicycles at a record pace. For example, last weekend he sold 30 bicycles. "We did a whole month's worth of business in two and a half days. Bicycles are officially the new toilet paper," Buell said.

Buell said all of his vendors are running out. "We still have some bicycles coming our way but it's going to get harder and harder to find bicycles under $500 to $600," he said.

Long said the big box stores that sell the cheap bikes are running out.

I think this is wonderful news. Cyclists have known for years that the bicycle is one of the greatest inventions of all time. With just a little effort you can pedal across miles and miles of pavement or trail and leave no carbon footprint. The bicycle gives the cyclist an opportunity to see the world while still getting some exercise. During the coronavirus lockdown I have avoided the car and done most of my shopping and exercise with my bicycle.

The bicycle sales trend is a worldwide phenomenon. There are reports of bicycle shortages in Australia.

Some customers are buying motorized assisted bicycles. These have become very popular with the older set. I have a neighbor who is retired and he loves his motorized bicycle. It's an electric motorized bike that cost him about $600. He rides all over Topeka with his electric bike.

If you want to get some exercise, use no gasoline or fuel, ride a pure-play bicycle. My wife and I have been riding bicycles nearly every day this spring. Gage Park has a bike/pedestrian path all the way around the park. Lake Shawnee also has a wonderful bike/pedestrian path. The Shunga Trail has been extended in recent years, it hooks up to the Landon Trail in south Topeka. So there are plenty of places to ride.

Sometimes I like to ride in the country. Gravel riding is a blast on my Surly Ogre.

The Power of Socialization

Michael Hooper with Alexander Lancaster

By Michael Hooper

There is an enriching power in socialization. Some gatherings or parties inspire us for days afterwards. We come away with renewed energy, a sharper focus, a buzz of creativity, perhaps a vision for creating a change in our own life or in our community. These face-to-face gatherings used to include a handshake, a hug, a kiss and a close up look into the eyes of a loved one. There's something special about a touching affirmation of your struggle, you know when somebody understands you, you feel a sense of belonging.

We are hungry to get back to that level of socialization; social media helps but is not the same, not as intimate.

I'm thinking back to some of the parties I attended right before lockdown.

I had a party of writers and artists at my house on January 29th. It was a Wednesday night, cold in the heart of Winter. I lit a fire in the fireplace and played records for seven friends, Velvet Underground, Richard Hell & New Order, while working on writing projects together. I read several passages of a friend's new book. We toured my art studio and sat by candlelight in the backyard. Ate a bunch of food and talked and talked and talked, we could have stayed up all night. Tambour Bieker was hand dancing to Throbbing Gristle and Vincent Neff played his own version of industrial music kind of David Lynch style. Tara Rhiannon Bartley said the party was magical. I was high on this party for several days. I ended up ordering a David Lynch book and worked on my own book Diary of a Bohemian.

The last party I went to in Topeka was Saturday March 7th at the Two Wolves Studio, celebrating Alexander Lancaster's birthday. Probably a hundred people there, most of them artists, really cool setting with a ton of art on the walls and Nate Dingman playing music, and people talking about their art very passionately, heard all kinds of stories, saw an old friend Shar Evans, I did not know that she was such a great artist, I really enjoyed visiting with her about how she got into art and how it helped her in a therapeutic way, she is very particular with her lines, and colors, her paintings are very accurate, a realist in a fantasy world. November Evelyn Wilde was deeply engaged with a colorfully dressed woman, surrounded by admirers, holding court like a salon in her art studio and carrying on about the artistic process. Alexander Lancaster and I took a selfie together. Nate Dingman sang and played guitar for two hours. At the end of the night, November and I agreed it was one of the best parties in Topeka in years. I've never seen so many creative people together. Again I had a boost of energy for days, I went back to my studio and worked furiously, painting the Maui Dude, based on a picture of this street person I photographed in late February.

Then the Covid-19 crisis led to the shutdown of America around St Patrick's Day. For nearly 40 days we've been cooped up, unable to gather with other people, even our own families. The spark that I get from such gatherings has elusively disappeared.

Sure I continue to meet with friends and family by phone and online. I have attended board meetings for an organization that I am involved with. But other than that, I talk to my wife in person and that's the only person I get close to, I'm afraid to touch anybody else.

I know scientists are working on treatments and vaccines for the Coronavirus. Until there is a treatment and a vaccine, I fear going to big gatherings again. My wife and I wear our face masks when we go to the grocery store, otherwise we don't get around other people at all. We got worried when we saw the produce department was overly crowded with shoppers at Aldi. Someone might get closer than 6 feet. Got to abide by that social distancing rule.

I'm glad I had those parties with friends, I'm grateful I took the invitation to go to these important events. My wife's cousin is celebrating 20 years together with her husband and we were at their wedding. Most parties I rarely turn down. I went to Rome and New York and Athens, Greece, for concerts. Thinking about these memories brings a smile to my face. Memories is all we have and I fear such memories will be hard to come by in the future. Will we be wearing masks for the rest of our days? Will we be able to hug again? What is our future going to be like?

I suspect most people will not wear masks and will return immediately to close intimate gatherings. I hope we do not see a resurgence in the Coronavirus. The scientists cannot work fast enough to find a cure. I appreciate all the people who have been working during the shutdown. I feel for the people who have lost their jobs. I hope they can go back to work soon. Stay safe everyone.

The Human Faces of the Coronavirus Shutdown

John Tempesta, left, drummer for The Cult, and Sean Topham, a drum technician and truck driver, who lost his job due to the coronavirus shutdown. Photo Credit: Sean Topham

By Michael Hooper

Thousands of people are dying every day with coronavirus, but there are other silent victims of this disease. Millions of people have lost their jobs because of the coronavirus shutdowns across the United States and around the world. Many of the unemployed worked in the entertainment industry, travel and tourism, and the bar and restaurant business. Even the health care industry is hurting because of lost revenue as a result of postponing elective surgeries. Hospitals in Topeka are letting employees go. This article will take a look at three people who have lost jobs due to the coronavirus shutdowns.

Sean Topham, 51, of North Hollywood, Calif., and Courtney Collado, 40, of Kansas City, Mo., and Susie Hoppe of Grafton, Wis., all have lost income due to the coronavirus shutdowns.

The Drummer

Topham was working as a truck driver for Mates Rehearsal Studios, where he delivered music equipment to musicians. He also worked as a drum technician for numerous bands over the years including The Cult and Poison. He was supposed to be on tour with Tower of Power this spring but got a call on Friday, March 13, saying the Tower of Power tour was put on hold. He returned to Mates, but was laid off.

"Nobody knows when we are going back to work," Topham said in a phone interview. "All my friends in the industry are stuck at home with no work."

He and his girlfriend have been in home quarantine for over a month.

"I'm sitting here with my girlfriend," he said. "I've got a studio at home. I play drums every day but we're getting stir crazy for sure."

Topham said he had enough money for April rent but called all the places he owed money and asked that his debts be put on hold. So his cell phone bill, insurance and other bills are on hold for two months, knowing he will have to play catch-up when he starts earning money again.

Topham applied for unemployment, food stamps and assistance from Music Cares, an organization set up by the Grammys to help out financially struggling musicians. He has not yet received any unemployment, nor any assistance from food stamps or Music Cares.

"The whole system is slammed," Topham said. "I'm lucky I got the April rent paid."

When he applied for food stamps, someone called him, asked him some questions, and then said he should hear back within 30 days.

"I've got nothing right now and they say I've got to wait 30 days," Topham said.

He said he heard that the federal government will provide an extra $600 per week on top of his unemployment. If that is true, he said he should be okay.

Assistance from the government really depends on when it arrives. If it arrives in October, it will be too late. People need it now.

After quarantines went into effect, Topham said it was scary because panicky people had depleted the grocery stores of food. Now he said the grocery stores in Los Angeles have set limits so there is enough food on the shelves. His girlfriend just had her birthday and he bought her a birthday cake. He notices he spends less money on beer these days because he no longer goes out to drink since bars and restaurants are closed except for takeout. "A glass of beer here is normally $10, but now I drink and eat at home."

Topham has worked most of his life in the entertainment industry. He grew up in San Francisco but moved to LA when he was 23 years old. Back then he said Sunset Boulevard was a constant Mardi Gras every night.

He has worked as a drummer in a band called The Chimpz for 14 years. The band's music is featured in the chase scenes on Sons of Anarchy. His band has been a regular at the Rocklahoma festival in Oklahoma but he is worried the festival may be canceled this year.

He wonders when the coronavirus shutdowns will end. When will people be comfortable enough to buy concert tickets again?

"I can't wait to get back to work," he said.

The Dancer and Personal Trainer

Courtney Collado, daughter of Clark and Bobbi Trammell in Topeka, is a self-employed certified personal trainer, dance teacher, choreographer and master pilates instructor. She provides corrective movement solutions to dancers who are suffering from injuries. Nearly all of her work and income ended about a month ago due to the coronavirus outbreak.

Courtney Collado, her son Kellan and two dogs. Photo provided by Courtney Collado

Working out of a private studio in Kansas City, she helped clients reduce pain and improve physical strength.

"I need to touch people and breathe in a very close space with them," she said. But because of the coronavirus social distancing rules, it's impossible to get close to people. "My income is 100% gone," she said.

"Because most of my income is self-employed, I don't yet qualify for unemployment or relief assistance," she said. "I taught one class per week as an employee for the Kansas City Ballet which qualifies me to receive  $74/week in assistance."

Now she is confined to her apartment with her 7-year-old son from her first marriage and two dogs. She helps her son with online instruction in the mornings. She also is working on her master's in fine arts so that she can earn more money teaching dance at the college level. 

"I've never been a good sleeper but I'm lucky to get three to five hours of sleep per night," she said. "I was supposed to do my master's thesis this summer but I will have to wait until next summer for that. There's too much to do here. There's more dishes, more laundry, taking care of my son. I'm fortunate he's very focused and self-motivated but it's very challenging. Much of my life is on hold."

She is trying to build up clients who would be willing to receive instruction online. She said she is fortunate to have one client who is still paying her for instruction. However she has many clients who can no longer afford to pay her because they are out of work, but she still provides help anyway because she loves what she does. She knows what it's like to be injured as a dancer. She has been dancing all of her life and received her first dance injury when she was a little child. Now she is 40 and she sees doctors from time to time because of the multitude of injuries that she received as a ballet dancer in New York City, where she lived for 15 years.

She said the new normal will be completely different than the old normal.

"We're not going back to normal," she said. "This will change the way we work and interact with people."

She said she doesn't really see an end to the coronavirus quarantine anytime soon. Maybe this fall or maybe in a year, but certainly not in 30 days.

The world is now realizing that society has become overly dependent on people who work too much for too little. Consumers now must do without the people they took for granted like the restaurant and bar employees who served them on a regular basis.

Collado remarried and her husband is in the military. He probably got coronavirus when he was in Morocco. All of his comrades in his unit got sick too and were quarantined until they got better. He is currently a major in the Army stationed in Fort Benning, Georgia.

She has learned, "It's okay to be sad and be scared. It's okay to grieve. But make sure you maintain your connection with your community."

"The only way to show love is to withhold all (physical) affection," she said. That means no hugs, no kisses, no intimate conversations. "We cannot safely visit my parents in Topeka."

The Bartender

Susie Hoppe, of Grafton, Wis., was working as a bartender at the Jackson Pub in Jackson, Wis., when the bar was closed right before the biggest sales night of the year on St. Patrick's Day. The state had required all bars and restaurants to close except for takeout. She lost two other jobs working as a bartender. She also runs her own cleaning business, cleaning commercial and private residences. She had been working close to 80 hours per week and all that came to a halt because of the coronavirus shutdowns. Her cleaning business has one part-time employee. "I kept him on because I did not feel comfortable letting him go," she said

Susie Hoppe, Photo provided by Susie Hoppe

Hoppe had been working very hard and long hours in order to save some money to improve her family cabin in Minnesota. But now that the coronavirus has shut down her income, she is not going to spend any money on repairs for the cabin.

Hoppe has applied for unemployment, but that task was extremely difficult. "You're going to spend a long time online," she said. "It's a long process."

She said many people in the food and beverage business do not have savings. "A lot live paycheck to paycheck," she said.

Hoppe's husband Greg continues to run his accounting business but because the deadline for paying taxes was pushed back to July 15, business has slowed down.

The coronavirus shutdown has really affected her psychologically too. 

"It feels like we're in the Twilight Zone," she said. "I've watched more TV in one week than I did all of last year."

So many events have been canceled including events to raise money for charities, she said. This will have a trickle-down effect on people in need.

"It's heart-wrenching to see all of the parks closed here," she said. "Kids can't go out and play. Kids can't be kids right now."