03-23-2009, 09:31 AM
Here is info I get weekly just incase this is helpful. Rather Long
CREDITOR’S EDGE
(The Nation’s Oldest Daily Business E-Newspaper)
—The Day’s News in Capsule Form—
A Product of Bastien Financial Publications
(For more information contact us at 847-491-1900
or email <!-- e --><a href="mailto:usbj7@yahoo.com">usbj7@yahoo.com</a><!-- e -->)
Monday
March 23, 2009
(This daily e-newspaper is a copyrighted publication for the exclusive use
of the recipient only and is not to be forwarded or copied
in whole or in part for use by any other party.)
Trade Credit Insurance-
Multipurpose Business Tool
Euler Hermes trade credit insurance is a multipurpose business tool that does more than just protect you from a bad-debt loss. We provide the business intelligence your company needs to help you expand sales, minimize risk, avoid unexpected bad-debt loss and get paid for what you sell. Contact us at 877 909 3224 or visit <!-- w --><a class="postlink" href="http://www.eulerhermes.us">www.eulerhermes.us</a><!-- w --> for more information.
Commercial Collections
Recession? How will this impact your customer’s ability to pay you?
Collection industry statistics show that almost all delinquent accounts are collected if placed within 30 days of due date. At 90 days, this falls to 70%. And at 6 months only about 50% are collected. With more than 90 years of service to many of the nation’s top businesses, Euler Hermes can help your business collect its receivables. Call Debbie Miles or Greg McClintock at 800-237-9386 or visit <!-- w --><a class="postlink" href="http://www.unitedmerc.com">www.unitedmerc.com</a><!-- w -->.
Reference the USBJ to receive a 20% discounted rate on your first collection payment!
Educational Tidbits
For Today's Financial Executive
Making Sure Your Company
Has a Clear Credit Policy
To be sure your company has a clear credit policy, there are a number of steps you can take. First, you should have written credit policies and a standard document for credit agreements. Contracts, invoices and followup letters should be clearly defined and policy manuals should outline the guidelines for assessing credit risks. Methods for collections should be clear for the customer and timetables for collection set out. As a backup, you should have a creditors’ rights attorney available and your company should also have an established relationship with a good, bonded collection agency. Finally, as a last resort, there should be well defined criteria for making decisions about when to further pursue or write off a delinquent account. Taking steps to be clear will optimize the credit relationship with your customers and improve your chances of being paid in a timely fashion.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Discuss bankruptcy dismissals and the failure to provide payment advice.
ANSWER: As some bankrupt firms were filing payment advices and judges were not as concerned that the advices were filed within the necessary time period, increasingly the U.S. Bankruptcy Courts are forcing debtors, and their attorneys, to adhere to section 521(I)(2) of the U.S. Bankruptcy Code as it relates to payment advices. In one case, a debtor’s attorney, claiming he had delivered payment advices to the U.S. trustee as well as a Chapter 7 trustee, advised he was experiencing computer problems and was not able to make filings to the 341 creditors’ meeting within the allotted time period. Nevertheless, the court held that the statute was clear. Cases were automatically dismissed if payment advices or a motion to extend time had not been filed.
QUESTION: Explain the basics about creditors’ committees in bankruptcy filings.
ANSWER NEXT ISSUE
Today's Headlines:
According to the Mortgage Bankers Association, mortgages commercial/multifamily increased $23 billion–to $3.5 trillion. Commercial banks held the largest share of mortgages–at 44%.
A proposal that would allow U.S. Bankruptcy Court judges to modify mortgage terms has stalled in the Senate. Mortgages are generally excluded from modification in personal bankruptcy filings although the proposal, known as a “cramdownâ€, is part of the administration’s efforts to help financially-struggling home owners. At issue is a number of lawmakers who feel that such “cramdown†assistance penalizes individuals who have made their payments on time.
AW North Carolina Co offers buyout packages to all its 1100 employees...
Barnes & Noble Inc. reports its fourth quarter net and sales decline...
Books-A-Million Co. reports both fiscal earnings and sales decline...
Casual Male Retail Group Inc. reports a fourth quarter net loss on a sales decline...
Eddie Bauer Holdings reports a fourth quarter net loss on a sales decline...
First Data Corp. is laying off more than 100 workers...
Koenig & Vits Inc. plans to reduce its workforce by 86 jobs...
MeadWestvaco Corp. is closing two of its facilities...
New York & Company Inc. reports a fourth quarter net loss on a sales decline...
Office Depot sees the city of Berkeley, Ca. claim the company overcharged it...
Shoe Carnival Inc. reports a fourth quarter net loss on a sales decline...
Stein Mart Inc. reports a fourth quarter net loss on a decline in net sales...
BANKRUPTCY NEWS
(For more information on these (or any) bankrupt firms
call the 800-number in your U.S. Bankruptcy Court Directory
available through Bastien Financial Publications.)
Asarco LLC has seen a hearing, on a sale agreement, scheduled for 4/13 in its Chapter 11 bankruptcy. A 4/1 deadline for filing objections to the agreement was also set. For more information contact the U.S. Bankruptcy Court at 800-745-4459.
Bearingpoint Inc. has seen the U.S. Bankruptcy Court for the Southern District of New York set 4/17 as the last day to file proof of claims in its bankruptcy filings. The case numbers range from 09-10690 to 09-10713. The case is being jointly administered under case number 09-10691. For more information call Marsha Goldstein at 212-310-8007 or Alfredo Perez at 713-546-5000.
Biltrite Rubber Inc. has seen a 4/2 recognition hearing scheduled in its Chapter 15 bankruptcy. For further information contact Allen & Overy LLP at 212-610-6300.
Britt’s Furniture Gallery LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Mississippi. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-50529. For more information contact the court at 800-293-2723.
Cardinal Communications Inc.’s Chapter 11 confirmation hearing has been continued to 4/14. For more information contact the debtor’s attorney, Roger Cox, at 806-242-9651.
G-I Holdings has seen the U.S. Bankruptcy Court approve a motion that would extend the exclusivity period under which it can file a Chapter 11 reorganization plan–until 6/30/09.
Gottchalks Inc. has seen a 3/30 auction scheduled for the assets in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Greenbrier Hotel Corp., the 230-year-old Virginia resort, filed Chapter 11 after its revenue last year declined 25%. The company, owned by CSX Corp., is being sought at auction by Marriott International.
Hawaiian Telecom Communications Inc. has seen the U.S. Bankruptcy Court for the District of Ohio set 4/27 as the bar date for general claims in its Chapter 11 bankruptcy. For more information call the debtors’ restructuring hotline at 888-733-1409. The case number is 08-02005.
Heller Ehrman LLP has seen a 4/27 deadline set for filing proof of claims in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in San Francisco, Ca. at 888-457-0604.
Magna Entertainment Corp., the bankrupt firm which has seen MI Developments Inc. offer $195 million for certain of its racetracks, is auctioning off its Golden Gate Fields racetrack next week.
Morningstar Restaurant Group LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $100 million. The case number is 09-11189. For further information contact the court in Manhattan, N.Y. at 212-668-2870.
Samsun Logix Corp., the bankrupt firm which is operating in the U.S. Bankruptcy Court for the Southern District of New York under case number 09-B-11109, has seen the court schedule a hearing date of 4/14 related to its Chapter 15 petition. For more information call Martin Bunin at 212-210-9400.
Southeast Banking Corp. has seen the U.S. Bankruptcy Court for the Southern District of Florida enter an order confirming the trustee’s third amended Chapter 11 plan of reorganization. For more information call 305-579-7743. The case number is 91-14561.
Whitehall Jewelers Holdings has seen its unsecured creditors committee object to the U.S. Bankruptcy Court’s motion that would extend the debtor’s use of certain cash collateral.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
AK Steel, a West Chester, Oh. maker of flat-rolled carbon steel and other products, expects to idle more than 2,000 employees as it performs scheduled maintenance on its blast furnace in Middletown, Oh. through mid-May. Nearly 130 of the company’s employees have already been laid off as a result of the economy.
American Tower Corp., a Boston, Ma. operator of communications towers, said that a subsidiary will purchase Xcel Telecom Private Ltd. in India, a deal that will give American Tower ownership of about 1,700 towers in that country.
American Airlines Inc. of Fort Worth, Tx., which expects to have made $700 million in payments on its long term debt during the first quarter, anticipates its consolidated unit revenue to fall by as much as 11%.
AmericasMart, the Atlanta, Ga. exposition center, is reducing its staff by 10% as part of its efforts to reduce costs.
AW North Carolina Co., the North Carolina autoparts maker which less than two months ago reported that 280 of its employees would be furloughed, has offered buyout packages to all its 1100 employees. The firm, a supplier to Toyota Motor Co., is hoping that nearly half of the employees will take the buyout.
Barnes & Noble Inc., the giant New York book retailer which only two months ago announced a reduction in its store openings while also cutting its headquarter’s staff by 100 employees, reported its fourth quarter net declined 29%–to $81 million, on a 6% sales decline–to $1.6 billion. For the year, the company reported its earnings declined 44%–to $76 million, on a 3% sales decline–to $5.1 billion. The company also reported same-store sales could decline as much as 6% this year.
Blockbuster Inc., the Dallas, Tx. movie rental firm which reached agreements with several of its lenders, including JPMorgan Chase Bank, reported a fourth quarter net loss of $360 million down from earnings of $40 million for the same quarter one year earlier. Revenue fell to $1.4 billion, a decline from $1.6 billion for the same period one year earlier. Same-store sales, however, increased more than 4% while sales for the year fell to $5.3 billion. The company finished its fourth quarter with $155 million in cash and cash equivalents.
Books-A-Million Co., the Birmingham, Al. book retailer which operates 220 stores nationwide and which has managed to reduce its debt over the past year by $12.5 million, reported fiscal earnings declined 35%–to $10.8 million, on a 4% sales decline–to $513 million. The company continues to focus its efforts on controlling expenses and inventory.
Brooks Automation Inc., the Chelmsford, Ma. manufacturer of equipment and technologies for the semiconductor industry announced that its senior executive staff has agreed to a 10% pay cut through 12/31.
Caraustar Industries Inc., the Georgia firm which is one of the largest makers of fully recycled paperboard in North America, has closed a paperboard in Charlotte, N.C. as part of its efforts to reduce costs. The company, hoping to save more that $11 million annually, expects to take a pre-tax charge of $9.7 million as a result of the closing.
Casual Male Retail Group Inc., the Canton, Ma. apparel store chain, reported a fourth quarter net loss of $108 million, on a sales decline of 8%–to $123 million. For the year, the company reported a net loss of $109 million on a 4% sales decline–to $444 million. The loss included a $70 million goodwill impairment charge. Same-store sales for the year decline 4.4%.
Champion Industries Inc., a Huntington, W.V. printer of items ranging from business cards to posters, as well as a seller of office supplies and furniture, reported a first quarter net loss of $290,000, on a 10% revenue decline–to $36 million.
Champions Biotechnology Inc., the Baltimore, Md. cancer development drug firm, reported a third quarter net loss of $623,000, as compared with income $311,000 for the same period one year earlier. Revenue jumped more than 40%–to $1 million as the company ended the quarter with more than $3.5 million in cash and cash equivalents.
Charter Communications Inc., the nations fourth largest cable operator as measured by the number of subscribers and which recently announced that it would not make an interest payment in light of its plan to file for bankruptcy protection, recently adopted a $23 million bonus plan to reward its executives for staying on through the restructuring. The CEO would get $6 million while the COO would get nearly $2.4 million. The St. Louis, Mo. firm which reached an agreement with creditor’s to reduce its $21.8 billion debt–by $8 billion, intends on filing Chapter 11 by 4/1.
In addition, private-equity firm Apollo Management Co., which already controls a
sizable portion of the near-bankrupt company’s debt, is considering exchanging that for a significant equity position in the company.
Children’s Place Retail Stores Inc., a Secaucus, N.J. retailer of children’s clothing, reported earnings of $82 million for the year on a 7% sales increase–to $1.6 billion. The results come in spite of asset impairment charges of $6.5 million.
Clarcor Inc., the Franklin, Tn. diversified industrial products manufacturer, reported first quarter earnings declined to $13.7 million while revenue fell nearly 15%–to $214 million. Analysts had expected revenue of $236 million.
Claremont Resort & Spa, the renowned Berkeley, Ca. facility, is cutting its workforce. In a notice to county officials, the resort announced it would layoff 77 workers (nearly 10% of its workforce) in what one industry observer reports as “...one of the deepest and longest recessions in the history of the domestic lodging industryâ€.
DataTrak International Inc., a Mayfield Heights, Oh. software firm, reported a fiscal net loss of $16.8 million, on a 16% revenue decline–to $8.8 million. The loss includes more than $15 million in expenses.
Dayton Daily News, which is published by Cox Ohio Publishing Co., has reduced its workforce by ten employees as part of its efforts to cut costs.
Dish Network Corp. of Englewood, Co., which is increasing its sales efforts in the Denver area, expects to hire 250 workers in the region. Now the second largest satellite TV firm in the nation, the company is continuing to hire at its headquarters while investing in its future. According to Dish’s CEO, the company is able to maintain its merit pay increases and 401(k) matches as a result of it running “...a very efficient operationâ€.
Eddie Bauer Holdings, Bellevue, Wa., reported a fourth quarter net loss of $127 million, on a 6% sales decline–to $370 million. For the year, the company reported a net loss of $166 million on a 2% sales decline–to $1 billion. The losses include impairment charges of $144 million.
Edge Petroleum Corp. of Houston, Tx. reported a fourth quarter net loss of $249 million, on 17% revenue increase–to $42 million. For the year, the company reported a loss of $333 million, on a slight revenue decline–to $159 million. The losses include impairment charges for the quarter and the year of $233 million and $363 million respectively.
First Data Corp., the Greenwood, Co. payment services provider, is laying off another 105 workers at its Coral Springs operations beginning in May. Less than thirty days ago the company reported a downsizing at its global customer service operations that resulted in it notifying state officials it would lay off 159 employees.
General Nutrition Centers Inc., the privately-held Pittsburgh, Pa. health food retailer, reported fourth quarter earnings increased to $8 million compared to $7.3 million for the same period one year earlier. For the year, earnings reached $55 million compared to a $32 million loss in fiscal 2007.
General Growth Properties Inc., the Chicago, Il. company which has more than $1 billion in past due debt, has seen Citigroup Inc., along with two other lenders, file foreclosure proceedings against General’s Oakwood Center mall in New Orleans, La.
General Electric Co., which at the end of last year anticipated its GE Capital operations would generate nearly $5 billion in profit for fiscal 2009, has now said that its financial unit would be profitable during the first quarter and could now generate as much as $2.5 billion in profit this year. This comes after comments by the company’s CEO that it wouldn’t need to raise additional capital. The company is dealing with an increase in losses at its consumer, commercial and real estate operations as it anticipates taking a $1.5 billion pretax loss on its $33 billion in property holdings.
Gevity HR Inc., a Bradenton, Fl. provider of human resources and related services to small and mid-sized firms, reported a fourth quarter net loss of $1.4 million, on a 14% revenue decline–to $125 million. For the year, the company reported a net loss of $4.8 million, on a 13% revenue decline–to $520 million. The losses include expenses of $8.7 million.
Harley-Davidson Inc., the Milwaukee, Wi. manufacturer of motorcycles, reached an agreement on extending the term on a $500 million loan until March, 2010.
Hayes Retail Services LLC, the Park City, Ks. unit of Hayes Holdings Co., is expanding its operations by opening a 300,000 square foot logistics warehouse in Statesboro, Ga.–initially hoping to hire nearly two dozen workers.
ICx Technologies Inc., an Arlington, Va. developer of advance sensor technologies, reported a fourth quarter loss of $2 million, an improvement over a $6.6 million loss for the same period one year earlier. Revenue jumped to $53 million, from $42 million one year earlier. For the year, the company reported a loss of $27 million on a 26% sales increase to $172 million. The company has benefitted from an increase demand in government purchases of its surveillance and solutions products.
International Paper Co., the Memphis, Tn. firm which lost $1.3 billion last year on revenue of nearly $25 billion, has cut production at one of its facilities in Mount Vernon, Oh.–cutting the operations staff by more than 30% or 58 employees.
Jamba Juice Co., the Emeryville, Ca. retailer and smoothie maker which has more than 725 company-owned and franchised outlets, reported a fourth quarter net loss of $41 million, an improvement over the $150 million loss for the same period one year earlier. Revenue increased 3%–to $56 million. For the year, the company reported a net loss of $149 million, on an 8% revenue increase–to $343 million. Jamba, a company which had outstanding debt of just under $23 million as well as cash and cash equivalents of $29 million at the end of last year, opened 35 company-owned outlets in 2008. It should be noted that the California firm does not intend on opening any company-owned stores this year but is looking at opening nearly fifty new franchise outlets.
Jenner & Block LLP, a Chicago law firm, has laid off thirty four workers at its Washington and Chicago offices. The company has asked a number of its partners to leave over the past two years.
Katten Muchin Rosenman LLP, a Chicago law firm, has laid off 70 employees, including twenty three attorneys.
Koenig & Vits Inc., a Manitowoc, Wi. aluminum coil maker, announced plans to reduce its workforce by 86 jobs beginning in May as part of its efforts to reduce costs.
La Causa Inc., the Wisconsin social services agency which has a number of locations throughout the Milwaukee area, is closing one of its management facilities–affecting 87 employees. The move is a result of the company terminating its $11 million case management and safety services contract with the state.
MeadWestvaco Corp., a Glen Allen, Va. packaging firm which is implementing a number of cost cutting moves, is closing two of its facilities, one in Virginia and another in Puerto Rico, moving some of that production to Mebane, N.C. The move will result in 276 workers losing their jobs.
MediaNews Group Inc. has seen Standard & Poor’s lower its issue-level rating on its secured credit facilities to CCC from CCC+. MediaNews is a privately-held California firm.
Morris Communications Co., the Augusta, Ga. media firm which operates thirteen daily newspapers, announced that it will be cutting salaries beginning in April as part of its efforts to reduce costs. Only last month the company, which was talking to its lenders and bondholders in order to restructure its debtload, reached a deal with its lenders that would give it additional time to make a $9.7 million interest payment.
New York & Company Inc., the New York-based women’s apparel retailer with more than 550 stores nationwide, reported a fourth quarter net loss of $27.4 million, on a 10% sales decline–to $325 million. For the year, the company reported a net loss of $19 million, on a 5% revenue decline–to $1.1 billion. The losses included restructuring charges of $24 million.
Nike Inc., the Beaverton, Or. footwear and apparel maker which recorded a non-cash charge of $241 million in the third quarter, reported earnings declined to $244 million from $464 million for the same period one year earlier. Revenue declined slightly–to $4.4 billion.
Office Depot, the giant Boca Raton, Fl. office supply firm which report a fourth quarter net loss of $1.5 billion and which is closing 100 stores in 2009, has seen the city of Berkeley, Ca. claim that the company overcharged it by more than $260,000. The allegation comes in the wake of a number of overpricing questions the firm has faced relating to a number of different government accounts. The allegations have resulted in other agencies investigating the firm.
Optical Cable Corp., a Roanoke, Va. maker of fiber optic cables, reported a first quarter net loss of $740,000, on an 18% revenue increase–to $15 million.
OptiSolar Inc., the Sacramento, Ca. maker of photovoltaic panels which had planned to construct a $1 billion facility in San Luis Obispo, Ca., has suspended its manufacturing and assembly operations. The company is laying off most of its 200 employees. OptiSolar was unsuccessful in securing funding to keep its operations afloat.
Palm Inc., the Sunnyvale, Ca. smart phone manufacturer, reported a third quarter loss of $98 million, an increase from a loss of $57 million for the same period one year earlier. Revenue declined 70%–to $91 million as sales of its smart phones declined more than 40%–to 481,000 units. The quarterly loss and revenue were below analysts’ expectations.
Perry Ellis International Inc., the Miami, Fl. sportswear company, reported a fourth quarter net loss of nearly $22 million, on a 10% gross sales decline–to $191 million. For the year, the company reported a net loss of $13 million, on a slight sales decline–to $851 million. The losses included impairment charges for both the quarter and year of $22 million and $25 million respectively.
Point Blank Solutions, the Pompano Beach, Fl. manufacturer of ballistic protection clothing, reported a fourth quarter net loss of $6 million. This compares with earnings of $14.6 million for the same period one year earlier. Sales increased 16%--to $73.5 million. For the year, the company reported a loss of $5.4 million on a 49% sales decline–to $165 million.
Polsinelli Shughart PC, a St. Louis law firm which was created as a result of a February merger of two St. Louis law firms, has reduced its workforce by twenty-five employees, including nine attorneys. The move was a result of both the economy and the merger.
Portrait Brokers of America Inc., a Birmingham, Al. portrait brokerage firm, has merged with Portraits Inc. of New York for an undisclosed amount. The combined company will operator under the name Portraits Inc.
Progress Software Corp., a Bedford, Ma. software developer, reported its first quarter net declined 72%–to $3.7 million on a slight revenue decline–to $121 million. Analysts had expected revenue of $126 million. The company anticipates second quarter revenue to be no more than $118 million.
RadNet Inc., a Los Angeles, Ca. provider of medical diagnostic imaging services, reported a fiscal net loss of $12.7 million, on an 18% revenue increase–to $502 million.
Reading International Inc., a Commerce, Ca. owner of over 40 movie theaters worldwide, reported a fourth quarter net loss of $16.5 million, on a 66% revenue increase–to $44 million. For the year, the company reported a net loss of $18.5 million, on a 70% revenue increase–to $191 million.
Rockwell Medical Technologies Inc. of Wixom, Mi. reported a fourth quarter net loss of $3 million, on a 13% revenue increase–to $13.5 million. For the year, the company reported a net loss of nearly $8 million, on a 20% revenue increase–to $52 million.
Ross Stores, the Pleasanton, Ca. off-price retailer, reported record earnings for both the fourth quarter and year. In spite of fourth quarter same-store sales declining nearly 1%, sales increased 5%–to $1.7 billion as earnings jumped to $97 million. Capitalizing on the large amount of close-out opportunities in the market, the retailer, which expects to purchase another $300 million of its common stock in 2009, reported its fiscal sales jumped 9%–to $6.5 billion while earnings increased 22%–to $305 million. Bucking the trend of many retailers, last year’s same-store sales increased 2%.
SAS, the privately-held $2.3 billion software firm, is expanding its operations by building a $70 million facility at its headquarters in Cary, N.C. to keep up with the demand for its cloud computing services. Despite the sagging economy, the firm, which does not release earnings results, continues to grow.
Select Comfort Corp., a Minneapolis, Mn. firm which two months ago reported it would reduce its headquarter’s workforce by more than 20% and which is seeking “strategic alternativesâ€, reported a fourth quarter net loss of $57 million, on a 30% sales decline–to $131 million. The company, which plans to close 55 stores this year, reported a fiscal net loss of $70 million on sales of $609 million. In fiscal 2007 the company reported earning of nearly $28 million on sales of just under $800 million.
Shoe Carnival Inc., an Evansville, In. footwear retailer with over 275 stores nationwide, reported a fourth quarter net loss of $3 million, on a 4% sales decline–to $157 million. For the year, the company reported its net declined 58%–to $5.3 million, on a slight sales decline–to $648 million.
Simon Property Group Inc., the nation’s largest public real estate investment trust and mall owner, intends to sell more than $17 million shares of its common stock. The Indianapolis firm, which operates 300 malls, will also issue $500 million in senior notes. The company expects proceeds in the neighborhood of just over $1 billion to help repay a $1 billion balance due on its $3.5 billion unsecured credit line.
Sony Corp., the giant Japanese firm, has initiated a one-year salary freeze on its Japanese workforce as part of its efforts to reduce costs.
Starbucks Corp., the giant Seattle, Wa. coffeehouse retail chain which is expanding its new product offerings, intends on reducing its expenses by $500 million this year.
Stein Mart Inc., a Jacksonville, Fl. upscale discount fashion retailer which plans to reduce its capital expenditures by 50% this year, reported a fourth quarter net loss of $56 million on a 13% decline in net sales–to $364 million. For the year, the company reported a net loss of $71 million on a 9% sales decline–to $1.3 billion.
Stillwater Mining Co. of Billings, Mt. reported a fourth quarter net loss of $132 million, on a 12% revenue increase–to $182 million. For the year, the company reported a net loss of $113 million, on a 27% revenue increase–to $856 million. Losses for both the quarter and the year included charges for restructuring, impairment and the disposal of property of $102 million and $105 million respectively.
Ticketmaster Entertainment Inc., the big West Hollywood, Ca. ticket seller, reported a fourth quarter net loss of $1.1 billion, on a 9% revenue increase–to $384 million. For the year, the company reported a net loss of $1 billion, on a 17% revenue increase–to $1.5 billion. The losses include more than $1.1 billion in impairment charges.
Triumph Group, the Wayne, Pa. aircraft components firm, is building a new manufacturing facility in Mexico as part of its expansion efforts. The company is investing nearly $20 million in a move that could result in the firm increasing its employment by as much as 400 workers.
UBS AG, the giant Swiss bank, intends on buying back more than $1.3 billion in debt as part of its efforts to improve its capital position.
Unilever Foodsolutions will shut down a plant in Wichita, Ks. as part of a strategy to exit the business of custom-produced food. The move will result in the loss of 110 jobs.
UPS Inc., the Sandy Springs, Ga. shipping company, announced it will issue $2 billion in bond debt which will be rated AA- by Standard & Poor’s.
Vann York Auto Group of High Point, N.C. is purchasing both the Cadillac and Chevrolet dealerships from Crown Automotive of Greensboro, N.C. for an undisclosed amount.
YTB International Inc., the Wood River, Il. provider of traveling services on the Internet, has seen its independent auditors express concerns about its ability to continue as a going concern. The company, which reduced its staff by 14%, reported a loss of $4.5 million for fiscal 2008 on a 15% revenue increase–to $163 million. The loss for the company, which sold off its Lear jet and other assets during the fourth quarter, compared with earnings of $3.2 million for fiscal 2007.
Zachry, a San Antonio, Tx. engineering concern, is starting up a craft employment and educational facility in La Porte, Tx. this week.
CREDITOR’S EDGE
(The Nation’s Oldest Daily Business E-Newspaper)
—The Day’s News in Capsule Form—
A Product of Bastien Financial Publications
(For more information contact us at 847-491-1900
or email <!-- e --><a href="mailto:usbj7@yahoo.com">usbj7@yahoo.com</a><!-- e -->)
Monday
March 23, 2009
(This daily e-newspaper is a copyrighted publication for the exclusive use
of the recipient only and is not to be forwarded or copied
in whole or in part for use by any other party.)
Trade Credit Insurance-
Multipurpose Business Tool
Euler Hermes trade credit insurance is a multipurpose business tool that does more than just protect you from a bad-debt loss. We provide the business intelligence your company needs to help you expand sales, minimize risk, avoid unexpected bad-debt loss and get paid for what you sell. Contact us at 877 909 3224 or visit <!-- w --><a class="postlink" href="http://www.eulerhermes.us">www.eulerhermes.us</a><!-- w --> for more information.
Commercial Collections
Recession? How will this impact your customer’s ability to pay you?
Collection industry statistics show that almost all delinquent accounts are collected if placed within 30 days of due date. At 90 days, this falls to 70%. And at 6 months only about 50% are collected. With more than 90 years of service to many of the nation’s top businesses, Euler Hermes can help your business collect its receivables. Call Debbie Miles or Greg McClintock at 800-237-9386 or visit <!-- w --><a class="postlink" href="http://www.unitedmerc.com">www.unitedmerc.com</a><!-- w -->.
Reference the USBJ to receive a 20% discounted rate on your first collection payment!
Educational Tidbits
For Today's Financial Executive
Making Sure Your Company
Has a Clear Credit Policy
To be sure your company has a clear credit policy, there are a number of steps you can take. First, you should have written credit policies and a standard document for credit agreements. Contracts, invoices and followup letters should be clearly defined and policy manuals should outline the guidelines for assessing credit risks. Methods for collections should be clear for the customer and timetables for collection set out. As a backup, you should have a creditors’ rights attorney available and your company should also have an established relationship with a good, bonded collection agency. Finally, as a last resort, there should be well defined criteria for making decisions about when to further pursue or write off a delinquent account. Taking steps to be clear will optimize the credit relationship with your customers and improve your chances of being paid in a timely fashion.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Discuss bankruptcy dismissals and the failure to provide payment advice.
ANSWER: As some bankrupt firms were filing payment advices and judges were not as concerned that the advices were filed within the necessary time period, increasingly the U.S. Bankruptcy Courts are forcing debtors, and their attorneys, to adhere to section 521(I)(2) of the U.S. Bankruptcy Code as it relates to payment advices. In one case, a debtor’s attorney, claiming he had delivered payment advices to the U.S. trustee as well as a Chapter 7 trustee, advised he was experiencing computer problems and was not able to make filings to the 341 creditors’ meeting within the allotted time period. Nevertheless, the court held that the statute was clear. Cases were automatically dismissed if payment advices or a motion to extend time had not been filed.
QUESTION: Explain the basics about creditors’ committees in bankruptcy filings.
ANSWER NEXT ISSUE
Today's Headlines:
According to the Mortgage Bankers Association, mortgages commercial/multifamily increased $23 billion–to $3.5 trillion. Commercial banks held the largest share of mortgages–at 44%.
A proposal that would allow U.S. Bankruptcy Court judges to modify mortgage terms has stalled in the Senate. Mortgages are generally excluded from modification in personal bankruptcy filings although the proposal, known as a “cramdownâ€, is part of the administration’s efforts to help financially-struggling home owners. At issue is a number of lawmakers who feel that such “cramdown†assistance penalizes individuals who have made their payments on time.
AW North Carolina Co offers buyout packages to all its 1100 employees...
Barnes & Noble Inc. reports its fourth quarter net and sales decline...
Books-A-Million Co. reports both fiscal earnings and sales decline...
Casual Male Retail Group Inc. reports a fourth quarter net loss on a sales decline...
Eddie Bauer Holdings reports a fourth quarter net loss on a sales decline...
First Data Corp. is laying off more than 100 workers...
Koenig & Vits Inc. plans to reduce its workforce by 86 jobs...
MeadWestvaco Corp. is closing two of its facilities...
New York & Company Inc. reports a fourth quarter net loss on a sales decline...
Office Depot sees the city of Berkeley, Ca. claim the company overcharged it...
Shoe Carnival Inc. reports a fourth quarter net loss on a sales decline...
Stein Mart Inc. reports a fourth quarter net loss on a decline in net sales...
BANKRUPTCY NEWS
(For more information on these (or any) bankrupt firms
call the 800-number in your U.S. Bankruptcy Court Directory
available through Bastien Financial Publications.)
Asarco LLC has seen a hearing, on a sale agreement, scheduled for 4/13 in its Chapter 11 bankruptcy. A 4/1 deadline for filing objections to the agreement was also set. For more information contact the U.S. Bankruptcy Court at 800-745-4459.
Bearingpoint Inc. has seen the U.S. Bankruptcy Court for the Southern District of New York set 4/17 as the last day to file proof of claims in its bankruptcy filings. The case numbers range from 09-10690 to 09-10713. The case is being jointly administered under case number 09-10691. For more information call Marsha Goldstein at 212-310-8007 or Alfredo Perez at 713-546-5000.
Biltrite Rubber Inc. has seen a 4/2 recognition hearing scheduled in its Chapter 15 bankruptcy. For further information contact Allen & Overy LLP at 212-610-6300.
Britt’s Furniture Gallery LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Mississippi. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-50529. For more information contact the court at 800-293-2723.
Cardinal Communications Inc.’s Chapter 11 confirmation hearing has been continued to 4/14. For more information contact the debtor’s attorney, Roger Cox, at 806-242-9651.
G-I Holdings has seen the U.S. Bankruptcy Court approve a motion that would extend the exclusivity period under which it can file a Chapter 11 reorganization plan–until 6/30/09.
Gottchalks Inc. has seen a 3/30 auction scheduled for the assets in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Greenbrier Hotel Corp., the 230-year-old Virginia resort, filed Chapter 11 after its revenue last year declined 25%. The company, owned by CSX Corp., is being sought at auction by Marriott International.
Hawaiian Telecom Communications Inc. has seen the U.S. Bankruptcy Court for the District of Ohio set 4/27 as the bar date for general claims in its Chapter 11 bankruptcy. For more information call the debtors’ restructuring hotline at 888-733-1409. The case number is 08-02005.
Heller Ehrman LLP has seen a 4/27 deadline set for filing proof of claims in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in San Francisco, Ca. at 888-457-0604.
Magna Entertainment Corp., the bankrupt firm which has seen MI Developments Inc. offer $195 million for certain of its racetracks, is auctioning off its Golden Gate Fields racetrack next week.
Morningstar Restaurant Group LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $100 million. The case number is 09-11189. For further information contact the court in Manhattan, N.Y. at 212-668-2870.
Samsun Logix Corp., the bankrupt firm which is operating in the U.S. Bankruptcy Court for the Southern District of New York under case number 09-B-11109, has seen the court schedule a hearing date of 4/14 related to its Chapter 15 petition. For more information call Martin Bunin at 212-210-9400.
Southeast Banking Corp. has seen the U.S. Bankruptcy Court for the Southern District of Florida enter an order confirming the trustee’s third amended Chapter 11 plan of reorganization. For more information call 305-579-7743. The case number is 91-14561.
Whitehall Jewelers Holdings has seen its unsecured creditors committee object to the U.S. Bankruptcy Court’s motion that would extend the debtor’s use of certain cash collateral.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
AK Steel, a West Chester, Oh. maker of flat-rolled carbon steel and other products, expects to idle more than 2,000 employees as it performs scheduled maintenance on its blast furnace in Middletown, Oh. through mid-May. Nearly 130 of the company’s employees have already been laid off as a result of the economy.
American Tower Corp., a Boston, Ma. operator of communications towers, said that a subsidiary will purchase Xcel Telecom Private Ltd. in India, a deal that will give American Tower ownership of about 1,700 towers in that country.
American Airlines Inc. of Fort Worth, Tx., which expects to have made $700 million in payments on its long term debt during the first quarter, anticipates its consolidated unit revenue to fall by as much as 11%.
AmericasMart, the Atlanta, Ga. exposition center, is reducing its staff by 10% as part of its efforts to reduce costs.
AW North Carolina Co., the North Carolina autoparts maker which less than two months ago reported that 280 of its employees would be furloughed, has offered buyout packages to all its 1100 employees. The firm, a supplier to Toyota Motor Co., is hoping that nearly half of the employees will take the buyout.
Barnes & Noble Inc., the giant New York book retailer which only two months ago announced a reduction in its store openings while also cutting its headquarter’s staff by 100 employees, reported its fourth quarter net declined 29%–to $81 million, on a 6% sales decline–to $1.6 billion. For the year, the company reported its earnings declined 44%–to $76 million, on a 3% sales decline–to $5.1 billion. The company also reported same-store sales could decline as much as 6% this year.
Blockbuster Inc., the Dallas, Tx. movie rental firm which reached agreements with several of its lenders, including JPMorgan Chase Bank, reported a fourth quarter net loss of $360 million down from earnings of $40 million for the same quarter one year earlier. Revenue fell to $1.4 billion, a decline from $1.6 billion for the same period one year earlier. Same-store sales, however, increased more than 4% while sales for the year fell to $5.3 billion. The company finished its fourth quarter with $155 million in cash and cash equivalents.
Books-A-Million Co., the Birmingham, Al. book retailer which operates 220 stores nationwide and which has managed to reduce its debt over the past year by $12.5 million, reported fiscal earnings declined 35%–to $10.8 million, on a 4% sales decline–to $513 million. The company continues to focus its efforts on controlling expenses and inventory.
Brooks Automation Inc., the Chelmsford, Ma. manufacturer of equipment and technologies for the semiconductor industry announced that its senior executive staff has agreed to a 10% pay cut through 12/31.
Caraustar Industries Inc., the Georgia firm which is one of the largest makers of fully recycled paperboard in North America, has closed a paperboard in Charlotte, N.C. as part of its efforts to reduce costs. The company, hoping to save more that $11 million annually, expects to take a pre-tax charge of $9.7 million as a result of the closing.
Casual Male Retail Group Inc., the Canton, Ma. apparel store chain, reported a fourth quarter net loss of $108 million, on a sales decline of 8%–to $123 million. For the year, the company reported a net loss of $109 million on a 4% sales decline–to $444 million. The loss included a $70 million goodwill impairment charge. Same-store sales for the year decline 4.4%.
Champion Industries Inc., a Huntington, W.V. printer of items ranging from business cards to posters, as well as a seller of office supplies and furniture, reported a first quarter net loss of $290,000, on a 10% revenue decline–to $36 million.
Champions Biotechnology Inc., the Baltimore, Md. cancer development drug firm, reported a third quarter net loss of $623,000, as compared with income $311,000 for the same period one year earlier. Revenue jumped more than 40%–to $1 million as the company ended the quarter with more than $3.5 million in cash and cash equivalents.
Charter Communications Inc., the nations fourth largest cable operator as measured by the number of subscribers and which recently announced that it would not make an interest payment in light of its plan to file for bankruptcy protection, recently adopted a $23 million bonus plan to reward its executives for staying on through the restructuring. The CEO would get $6 million while the COO would get nearly $2.4 million. The St. Louis, Mo. firm which reached an agreement with creditor’s to reduce its $21.8 billion debt–by $8 billion, intends on filing Chapter 11 by 4/1.
In addition, private-equity firm Apollo Management Co., which already controls a
sizable portion of the near-bankrupt company’s debt, is considering exchanging that for a significant equity position in the company.
Children’s Place Retail Stores Inc., a Secaucus, N.J. retailer of children’s clothing, reported earnings of $82 million for the year on a 7% sales increase–to $1.6 billion. The results come in spite of asset impairment charges of $6.5 million.
Clarcor Inc., the Franklin, Tn. diversified industrial products manufacturer, reported first quarter earnings declined to $13.7 million while revenue fell nearly 15%–to $214 million. Analysts had expected revenue of $236 million.
Claremont Resort & Spa, the renowned Berkeley, Ca. facility, is cutting its workforce. In a notice to county officials, the resort announced it would layoff 77 workers (nearly 10% of its workforce) in what one industry observer reports as “...one of the deepest and longest recessions in the history of the domestic lodging industryâ€.
DataTrak International Inc., a Mayfield Heights, Oh. software firm, reported a fiscal net loss of $16.8 million, on a 16% revenue decline–to $8.8 million. The loss includes more than $15 million in expenses.
Dayton Daily News, which is published by Cox Ohio Publishing Co., has reduced its workforce by ten employees as part of its efforts to cut costs.
Dish Network Corp. of Englewood, Co., which is increasing its sales efforts in the Denver area, expects to hire 250 workers in the region. Now the second largest satellite TV firm in the nation, the company is continuing to hire at its headquarters while investing in its future. According to Dish’s CEO, the company is able to maintain its merit pay increases and 401(k) matches as a result of it running “...a very efficient operationâ€.
Eddie Bauer Holdings, Bellevue, Wa., reported a fourth quarter net loss of $127 million, on a 6% sales decline–to $370 million. For the year, the company reported a net loss of $166 million on a 2% sales decline–to $1 billion. The losses include impairment charges of $144 million.
Edge Petroleum Corp. of Houston, Tx. reported a fourth quarter net loss of $249 million, on 17% revenue increase–to $42 million. For the year, the company reported a loss of $333 million, on a slight revenue decline–to $159 million. The losses include impairment charges for the quarter and the year of $233 million and $363 million respectively.
First Data Corp., the Greenwood, Co. payment services provider, is laying off another 105 workers at its Coral Springs operations beginning in May. Less than thirty days ago the company reported a downsizing at its global customer service operations that resulted in it notifying state officials it would lay off 159 employees.
General Nutrition Centers Inc., the privately-held Pittsburgh, Pa. health food retailer, reported fourth quarter earnings increased to $8 million compared to $7.3 million for the same period one year earlier. For the year, earnings reached $55 million compared to a $32 million loss in fiscal 2007.
General Growth Properties Inc., the Chicago, Il. company which has more than $1 billion in past due debt, has seen Citigroup Inc., along with two other lenders, file foreclosure proceedings against General’s Oakwood Center mall in New Orleans, La.
General Electric Co., which at the end of last year anticipated its GE Capital operations would generate nearly $5 billion in profit for fiscal 2009, has now said that its financial unit would be profitable during the first quarter and could now generate as much as $2.5 billion in profit this year. This comes after comments by the company’s CEO that it wouldn’t need to raise additional capital. The company is dealing with an increase in losses at its consumer, commercial and real estate operations as it anticipates taking a $1.5 billion pretax loss on its $33 billion in property holdings.
Gevity HR Inc., a Bradenton, Fl. provider of human resources and related services to small and mid-sized firms, reported a fourth quarter net loss of $1.4 million, on a 14% revenue decline–to $125 million. For the year, the company reported a net loss of $4.8 million, on a 13% revenue decline–to $520 million. The losses include expenses of $8.7 million.
Harley-Davidson Inc., the Milwaukee, Wi. manufacturer of motorcycles, reached an agreement on extending the term on a $500 million loan until March, 2010.
Hayes Retail Services LLC, the Park City, Ks. unit of Hayes Holdings Co., is expanding its operations by opening a 300,000 square foot logistics warehouse in Statesboro, Ga.–initially hoping to hire nearly two dozen workers.
ICx Technologies Inc., an Arlington, Va. developer of advance sensor technologies, reported a fourth quarter loss of $2 million, an improvement over a $6.6 million loss for the same period one year earlier. Revenue jumped to $53 million, from $42 million one year earlier. For the year, the company reported a loss of $27 million on a 26% sales increase to $172 million. The company has benefitted from an increase demand in government purchases of its surveillance and solutions products.
International Paper Co., the Memphis, Tn. firm which lost $1.3 billion last year on revenue of nearly $25 billion, has cut production at one of its facilities in Mount Vernon, Oh.–cutting the operations staff by more than 30% or 58 employees.
Jamba Juice Co., the Emeryville, Ca. retailer and smoothie maker which has more than 725 company-owned and franchised outlets, reported a fourth quarter net loss of $41 million, an improvement over the $150 million loss for the same period one year earlier. Revenue increased 3%–to $56 million. For the year, the company reported a net loss of $149 million, on an 8% revenue increase–to $343 million. Jamba, a company which had outstanding debt of just under $23 million as well as cash and cash equivalents of $29 million at the end of last year, opened 35 company-owned outlets in 2008. It should be noted that the California firm does not intend on opening any company-owned stores this year but is looking at opening nearly fifty new franchise outlets.
Jenner & Block LLP, a Chicago law firm, has laid off thirty four workers at its Washington and Chicago offices. The company has asked a number of its partners to leave over the past two years.
Katten Muchin Rosenman LLP, a Chicago law firm, has laid off 70 employees, including twenty three attorneys.
Koenig & Vits Inc., a Manitowoc, Wi. aluminum coil maker, announced plans to reduce its workforce by 86 jobs beginning in May as part of its efforts to reduce costs.
La Causa Inc., the Wisconsin social services agency which has a number of locations throughout the Milwaukee area, is closing one of its management facilities–affecting 87 employees. The move is a result of the company terminating its $11 million case management and safety services contract with the state.
MeadWestvaco Corp., a Glen Allen, Va. packaging firm which is implementing a number of cost cutting moves, is closing two of its facilities, one in Virginia and another in Puerto Rico, moving some of that production to Mebane, N.C. The move will result in 276 workers losing their jobs.
MediaNews Group Inc. has seen Standard & Poor’s lower its issue-level rating on its secured credit facilities to CCC from CCC+. MediaNews is a privately-held California firm.
Morris Communications Co., the Augusta, Ga. media firm which operates thirteen daily newspapers, announced that it will be cutting salaries beginning in April as part of its efforts to reduce costs. Only last month the company, which was talking to its lenders and bondholders in order to restructure its debtload, reached a deal with its lenders that would give it additional time to make a $9.7 million interest payment.
New York & Company Inc., the New York-based women’s apparel retailer with more than 550 stores nationwide, reported a fourth quarter net loss of $27.4 million, on a 10% sales decline–to $325 million. For the year, the company reported a net loss of $19 million, on a 5% revenue decline–to $1.1 billion. The losses included restructuring charges of $24 million.
Nike Inc., the Beaverton, Or. footwear and apparel maker which recorded a non-cash charge of $241 million in the third quarter, reported earnings declined to $244 million from $464 million for the same period one year earlier. Revenue declined slightly–to $4.4 billion.
Office Depot, the giant Boca Raton, Fl. office supply firm which report a fourth quarter net loss of $1.5 billion and which is closing 100 stores in 2009, has seen the city of Berkeley, Ca. claim that the company overcharged it by more than $260,000. The allegation comes in the wake of a number of overpricing questions the firm has faced relating to a number of different government accounts. The allegations have resulted in other agencies investigating the firm.
Optical Cable Corp., a Roanoke, Va. maker of fiber optic cables, reported a first quarter net loss of $740,000, on an 18% revenue increase–to $15 million.
OptiSolar Inc., the Sacramento, Ca. maker of photovoltaic panels which had planned to construct a $1 billion facility in San Luis Obispo, Ca., has suspended its manufacturing and assembly operations. The company is laying off most of its 200 employees. OptiSolar was unsuccessful in securing funding to keep its operations afloat.
Palm Inc., the Sunnyvale, Ca. smart phone manufacturer, reported a third quarter loss of $98 million, an increase from a loss of $57 million for the same period one year earlier. Revenue declined 70%–to $91 million as sales of its smart phones declined more than 40%–to 481,000 units. The quarterly loss and revenue were below analysts’ expectations.
Perry Ellis International Inc., the Miami, Fl. sportswear company, reported a fourth quarter net loss of nearly $22 million, on a 10% gross sales decline–to $191 million. For the year, the company reported a net loss of $13 million, on a slight sales decline–to $851 million. The losses included impairment charges for both the quarter and year of $22 million and $25 million respectively.
Point Blank Solutions, the Pompano Beach, Fl. manufacturer of ballistic protection clothing, reported a fourth quarter net loss of $6 million. This compares with earnings of $14.6 million for the same period one year earlier. Sales increased 16%--to $73.5 million. For the year, the company reported a loss of $5.4 million on a 49% sales decline–to $165 million.
Polsinelli Shughart PC, a St. Louis law firm which was created as a result of a February merger of two St. Louis law firms, has reduced its workforce by twenty-five employees, including nine attorneys. The move was a result of both the economy and the merger.
Portrait Brokers of America Inc., a Birmingham, Al. portrait brokerage firm, has merged with Portraits Inc. of New York for an undisclosed amount. The combined company will operator under the name Portraits Inc.
Progress Software Corp., a Bedford, Ma. software developer, reported its first quarter net declined 72%–to $3.7 million on a slight revenue decline–to $121 million. Analysts had expected revenue of $126 million. The company anticipates second quarter revenue to be no more than $118 million.
RadNet Inc., a Los Angeles, Ca. provider of medical diagnostic imaging services, reported a fiscal net loss of $12.7 million, on an 18% revenue increase–to $502 million.
Reading International Inc., a Commerce, Ca. owner of over 40 movie theaters worldwide, reported a fourth quarter net loss of $16.5 million, on a 66% revenue increase–to $44 million. For the year, the company reported a net loss of $18.5 million, on a 70% revenue increase–to $191 million.
Rockwell Medical Technologies Inc. of Wixom, Mi. reported a fourth quarter net loss of $3 million, on a 13% revenue increase–to $13.5 million. For the year, the company reported a net loss of nearly $8 million, on a 20% revenue increase–to $52 million.
Ross Stores, the Pleasanton, Ca. off-price retailer, reported record earnings for both the fourth quarter and year. In spite of fourth quarter same-store sales declining nearly 1%, sales increased 5%–to $1.7 billion as earnings jumped to $97 million. Capitalizing on the large amount of close-out opportunities in the market, the retailer, which expects to purchase another $300 million of its common stock in 2009, reported its fiscal sales jumped 9%–to $6.5 billion while earnings increased 22%–to $305 million. Bucking the trend of many retailers, last year’s same-store sales increased 2%.
SAS, the privately-held $2.3 billion software firm, is expanding its operations by building a $70 million facility at its headquarters in Cary, N.C. to keep up with the demand for its cloud computing services. Despite the sagging economy, the firm, which does not release earnings results, continues to grow.
Select Comfort Corp., a Minneapolis, Mn. firm which two months ago reported it would reduce its headquarter’s workforce by more than 20% and which is seeking “strategic alternativesâ€, reported a fourth quarter net loss of $57 million, on a 30% sales decline–to $131 million. The company, which plans to close 55 stores this year, reported a fiscal net loss of $70 million on sales of $609 million. In fiscal 2007 the company reported earning of nearly $28 million on sales of just under $800 million.
Shoe Carnival Inc., an Evansville, In. footwear retailer with over 275 stores nationwide, reported a fourth quarter net loss of $3 million, on a 4% sales decline–to $157 million. For the year, the company reported its net declined 58%–to $5.3 million, on a slight sales decline–to $648 million.
Simon Property Group Inc., the nation’s largest public real estate investment trust and mall owner, intends to sell more than $17 million shares of its common stock. The Indianapolis firm, which operates 300 malls, will also issue $500 million in senior notes. The company expects proceeds in the neighborhood of just over $1 billion to help repay a $1 billion balance due on its $3.5 billion unsecured credit line.
Sony Corp., the giant Japanese firm, has initiated a one-year salary freeze on its Japanese workforce as part of its efforts to reduce costs.
Starbucks Corp., the giant Seattle, Wa. coffeehouse retail chain which is expanding its new product offerings, intends on reducing its expenses by $500 million this year.
Stein Mart Inc., a Jacksonville, Fl. upscale discount fashion retailer which plans to reduce its capital expenditures by 50% this year, reported a fourth quarter net loss of $56 million on a 13% decline in net sales–to $364 million. For the year, the company reported a net loss of $71 million on a 9% sales decline–to $1.3 billion.
Stillwater Mining Co. of Billings, Mt. reported a fourth quarter net loss of $132 million, on a 12% revenue increase–to $182 million. For the year, the company reported a net loss of $113 million, on a 27% revenue increase–to $856 million. Losses for both the quarter and the year included charges for restructuring, impairment and the disposal of property of $102 million and $105 million respectively.
Ticketmaster Entertainment Inc., the big West Hollywood, Ca. ticket seller, reported a fourth quarter net loss of $1.1 billion, on a 9% revenue increase–to $384 million. For the year, the company reported a net loss of $1 billion, on a 17% revenue increase–to $1.5 billion. The losses include more than $1.1 billion in impairment charges.
Triumph Group, the Wayne, Pa. aircraft components firm, is building a new manufacturing facility in Mexico as part of its expansion efforts. The company is investing nearly $20 million in a move that could result in the firm increasing its employment by as much as 400 workers.
UBS AG, the giant Swiss bank, intends on buying back more than $1.3 billion in debt as part of its efforts to improve its capital position.
Unilever Foodsolutions will shut down a plant in Wichita, Ks. as part of a strategy to exit the business of custom-produced food. The move will result in the loss of 110 jobs.
UPS Inc., the Sandy Springs, Ga. shipping company, announced it will issue $2 billion in bond debt which will be rated AA- by Standard & Poor’s.
Vann York Auto Group of High Point, N.C. is purchasing both the Cadillac and Chevrolet dealerships from Crown Automotive of Greensboro, N.C. for an undisclosed amount.
YTB International Inc., the Wood River, Il. provider of traveling services on the Internet, has seen its independent auditors express concerns about its ability to continue as a going concern. The company, which reduced its staff by 14%, reported a loss of $4.5 million for fiscal 2008 on a 15% revenue increase–to $163 million. The loss for the company, which sold off its Lear jet and other assets during the fourth quarter, compared with earnings of $3.2 million for fiscal 2007.
Zachry, a San Antonio, Tx. engineering concern, is starting up a craft employment and educational facility in La Porte, Tx. this week.