04-29-2009, 08:34 AM
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 -->)
Tuesday
April 28, 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.)
Educational Tidbits
For Today's Financial Executive
Quick: What’s the Relationship Between Ratings Firms
And the U.S. Constitution?
Ratings companies such as Fitch Ratings, Standard & Poor’s and Moody’s came under harsh criticism for their allegedly failing to point out the risks of those mortgage-backed securities that supposedly prompted the slide into the current recession. Observers complained that the ratings firms were in an inherent conflict of interest with the companies they’re supposed to rate and ended up giving unrealistically rosy bills of health when in fact they were about to collapse under debt. The ratings companies have often protected themselves from liabilities by asserting that their ratings are, in effect, an expression of free speech as provided by the U.S. Constitution, and courts have generally supported that line of reasoning. However some investors are pushing ahead with litigation against the ratings companies, but they will have to show that the ratings firms not only provided false assessments but also provided that information with “actual maliceâ€. Judges could rule against the ratings firms’ traditional free-speech protection if they determine that their ratings of the mortgage-backed securities amount to private commercial transactions, in which case they might be held liable.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Explain some of the problems customer deductions can present with regard to accounts receivable.
ANSWER: Customer deductions, whether valid or invalid, can be a nightmare to those who deal with accounts receivables. Often such deductions as freight, pricing and even sales tax can sit on an AR ledger for long periods of time until they are either credited or paid back by the customer. There are dozens of different kinds of deductions that customers take. In fact, numerous surveys have shown that more than 80% of the time deductions are valid and should be credited promptly. Some companies have systems in place that allow for a quick resolution of these items, yet in other firms (and it often varies by industry not necessarily firm-to-firm) deductions can sit on a company's books for as long as six months. The result? Inflated receivables that in the long run can cost your company money. If a company's credit line is, even in part, tied to its AR, then the inflation of this current asset could adversely affect the amount that company can draw against–a thought to consider when evaluating your overall AR status.
QUESTION: Explain what happens in a Chapter 13 filing, with regard to a trustee, creditors’ meetings and a reorganization plan.
ANSWER NEXT ISSUE
Today's Headlines:
Comerica Inc. cuts almost 500 jobs...
Danaher Corp. announces 2,300 job cuts...
General Motors Corp., saying it needs $11.6 billion more in government loans, warns of a bankruptcy filing if bondholders don’t exchange debt...
Honeywell International Inc.’s first quarter profit sinks on a sales decline...
Jakks Pacific Inc. reports a first quarter loss...
Kennametal Inc. reports a quarterly loss...
Marshall & Ilsley Corp. reports a loss for its first quarter...
MKS Instruments Inc. reports a widened first quarter net loss...
NOVA Chemicals Corp. reports a first quarter loss on a plunge in sales...
Spansion Inc. seeks “strategic alternatives†for its wireless operations...
SunTrust Banks Inc. reports a large loss for its first quarter...
W.R. Grace & Co. reports a first quarter loss...
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.)
Arthur Diamonds in Los Angeles, Ca. filed Chapter 7. As of February the firm had estimated liabilities of more than $1.4 million. Assets, partly in the form of more than $315,000 in accounts receivable, are considered largely uncollectible.
Atherogenics Inc. has seen a 6/2 hearing scheduled to consider confirmation of its Chapter 11 reorganization plan. For more information contact the U.S. Bankruptcy Court at 800-510-8284.
Brownsburg Golf Course Inc., the owner of the Oak Ford Golf Course in Sarasota, Fl., filed Chapter 7 with the intention of liquidating. The firm listed assets and liabilities of about $4.5 million and $6.7 million respectively.
Charter Communications Inc.’s reorganization plan is coming under fire, which could in turn throw a wrench into the St. Louis, Mo. cable firm’s hopes of quickly emerging from Chapter 11. The trustee in the case expressed dissatisfaction with a stipulation in the plan that would exempt former executives, directors and others from being held accountable in litigation hitting them with securities-laws violations and other actions. In another move, Charter said that it will issue new common shares to some of its bondholders in order to raise cash.
Chisholm Properties of Pensacola LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Florida. The firm listed assets of less than $100,000 and liabilities of between $1 million and $100 million. The case number is 09-30782. For more information contact the court at 850-942-8358.
Circuit City Stores Inc., the Richmond, Va. electronics retailer, has seen a 5/11 asset auction scheduled in its Chapter 11 bankruptcy. Objections must be filed by 5/12 and a sale hearing is scheduled for 5/13. For more information contact the debtor’s attorney, Gregg Galardi, at 302-651-3000.
DBSI Inc. has seen a 6/4 deadline set for filing proof of claims in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Foamex International Inc. has seen a 5/19 auction scheduled for certain assets in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Happy Vacations, a California tour company that specializes in Hawaiian tours, shut down its operations and filed Chapter 11.
Masonite Corp. has seen a 5/21 deadline set for voting on its Chapter 11 reorganization plan. Also, a 5/29 confirmation hearing has been scheduled. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Pilgrim’s Pride Corp. has seen a 6/1 deadline set for filing alternative dispute resolution confirmation of loss forms in its Chapter 11 bankruptcy. For more information contact the U.S. Bankruptcy Court at 800-886-9008.
Spansion Inc. of Sunnyvale, Ca., which is reorganizing under Chapter 11, will seek “strategic alternatives†for its wireless operations as it hopes to focus on its embedded-solutions technology and the licensing of intellectual property. Spansion, sitting on almost $200 million in cash to support its strategy, hopes to develop a business worth about $1 billion in revenue per year.
T. Thomas Chevrolet in Lakeland, Fl. filed Chapter 11. The filing, in the U.S. Bankruptcy Court for the Middle District of Florida, listed assets of as much as $10 million and liabilities of up to $50 million. The company does business as Michael Holley Chevrolet, T. Thomas Affordable Used Cars, Michael Holley’s Pre-Owned Wholesale Outlet and Michael Holley’s Regional Discount Chevy Store.
Ward Street Associates LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-35974. For more information contact the court in Manhattan, N.Y. at 212-668-2870.
W.R. Grace & Co., a Columbia, Md. chemicals firm, reported a first quarter net loss of $38.9 million, compared to net income of $17.7 million a year ago. Sales fell 10%–to $682 million, partly because of currency-translation effects. While reporting the loss, Grace said that it has improved its operations, partly by trimming its payroll and shrinking its working capital by $90 million. The firm, which has been in Chapter 11 for eight years, hopes to complete its reorganization plan by the end of this year.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
AT&T Inc., Dallas, Tx., is pulling the plug on its Call Vantage Internet-based phone service as it focuses on its own Voice over Internet Protocol operations.
Burlington Northern Santa Fe Corp,, the Fort Worth, Tx. railroad company, reported that net income dropped 36% in its recent quarter–to $293 million, on a 21% slide in revenue–to $3.4 billion. The results included $96 million in extra charges.
Canadian Pacific Railway Ltd., Calgary, Alberta, reported that net income sank 31% in its recent quarter–to $50.4 million, on a nearly 7% slide in revenue–to $863 million.
Chemed Corp., Cincinnati, Oh., reported its first quarter net income rose to $19.3 million, up from $15.9 million in the year-earlier period. Revenue rose to $295 million, slightly ahead of analyst’ estimates and up from $285 million a year ago. The company benefitted from Medicare-related federal stimulus funds at its Vitas Healthcare business. Chemed’s other main line of business is its Roto-Rooter service.
Columbia Sportswear Co., Portland, Or., reported its first quarter profit sank 65%–to $6.9 million, while sales fell 8.5%–to $272 million, although the sales beat analysts’ expectations.
Comerica Inc., a Dallas, Tx. financial services firm, announced that its trimmed its payroll by the equivalent of 490 full-time positions during the first quarter, following 160 layoffs in the fourth quarter. The company took $6 million in severance costs in the recent quarter, on top of $29 million in the fourth quarter. Comerica recently reported its first quarter profit plunged to $9 million, down from $109 million in the year-ago quarter.
Corning Inc., the Corning, N.Y.-based maker of fiberoptic products, reported its first quarter net income plunged 99%–to $14 million. Revenue sank 39%–to $989 million. Despite the sharp decline in earnings, results were ahead of expectations as the manufacturer benefitted from the demand for its liquid-crystal-display products.
Danaher Corp., the big Washington, D.C. manufacturer of industrial tools, will now pare its payroll by 2,300 positions, up from an earlier announcement that it would cut 1,700 jobs, as it consolidates sixteen sales and manufacturing sites. Danaher earlier said its restructuring would cost it at most $60 million but has upped that estimate to between $150 million and $170 million. The firm also said that its first quarter profit fell 14%–to $238 million, on a 13% drop in sales–to $2.6 billion.
DataSource Inc., a print-supply-chain management firm, expanded by acquiring Comet Sales of St. Louis, Mo. and MoSolutions LLC of Atlanta, Ga. Those purchases are fast on the heels of DataSource’s recent acquisition of FRI Resources.
Eastern Financial Florida Credit Union was put into conservatorship by Florida’s banking regulators, with its assets turned over to the National Credit Union Administration.
Equinix Inc., a Foster City, Ca. data-center operator, reported its first quarter net income soared fourfold–to $15.5 million, on a 26% increase in revenue–to $199 million. The results included an $11.6 million tax expense.
Evans Bancorp Inc., in a move to reduce credit exposure and focus on its core banking operations, will get out of the equipment-leasing side of its business. Also, Evans, Angola, N.Y., reported a $1.2 million loss in its first quarter, including $2 million in impairment charges related to the leasing unit.
Exaprotect Inc., a Mountain View, Ca. security technology company, is being acquired by LogLogic Inc. for an undisclosed amount.
F5 Networks Inc., a Seattle, Wa. software maker, reported its second quarter net income slipped to $19 million, down from $21.4 million a year ago. Revenue declined to $154 million, down from $159 million in the year-earlier period.
First Solar Inc., a Tempe, Az. provider of thin-film photovoltaic panels for solar arrays, and its German partner, Juwi Holding AG, won financing for development of a 53-megawatt solar plant in Germany, saying they arranged for 80% of the money needed for the project. The companies didn’t reveal the cost of the project but it’s thought that a facility of that size would cost somewhere in the neighborhood of $300 million.
Fluke Corp., an Everett, Wa. manufacturer of portable electronic test and measurement gear, expanded by acquiring Hawk IR International Ltd. in England, a maker of infrared safety products, for an undisclosed amount.
Frontier Financial Corp., Everett, Wa., reported a first quarter loss of $33.8 million, compared to net income of $15.5 million a year ago. Nonperforming loans increased to more than 16% of its total assets, up from under 11% in the fourth quarter. Frontier, which boosted loan-loss provisions in the recent quarter, also said that it will suspend its 401(k) matching program, hoping to save $1.7 million a year.
Gander Mountain Corp., the St. Paul, Mn. seller of sporting goods, more than doubled its net income in the fourth quarter from the year-earlier period–to $13 million. Sales rose 5%–to $334 million, although same-store sales slipped a bit. The results were helped by strong sales of ammunition and other hunting gear.
General Electric Co., Stamford, Ct., is in an agreement to sell its 81% interest in its Homeland Protection business to Safran SA of France, an aerospace maker, in a $580 million cash transaction. The unit, which focuses on making narcotics and explosives detection equipment, reported sales last year of $260 million, down from $416 million in 2003.
General Motors Corp. said that a restructuring will require another $11.6 billion in government loans, at the same time warning that it will file for bankruptcy protection if its attempt to reach a debt-exchange deal with its bondholders doesn’t work out. GM told the bondholders that it is making an exchange offer for $27 billion of unsecured public notes, hoping to stay out of bankruptcy. However, the carmaker said that if it does file for bankruptcy protection, its reorganization plan would call for splitting itself into two companies, one containing its good assets, including its Chevrolet, Cadillac, Buick and GMC brands, and a separate entity holdings its bad assets, which would be liquidated as GM continues trimming down its number of models. Already GM has said it will dump its Pontiac brand.
Haemonetics Corp., a Braintree, Ma. blood-management concern, expanded by purchasing privately-held Neoteric Technology Ltd. for an undisclosed amount. Neoteric is a medical-information management company. Also, Haemonetics said that it will continue to make strategic acquisitions.
Honeywell International Inc., the Morristown, N.J. manufacturing conglomerate, reported its first quarter profit sank 38%–to $399 million. Net sales fell 15%–to $7.6 billion. The firm also lowered its outlook for the full year.
FirstMerit Corp. of Akron, Oh., a banking company, spent $126 million to buy back preferred shares that it sold last year to the Treasury Department’s Capital Purchase Program.
Igate Corp., a Fremont, Ca. outsourcing concern, reported its first quarter net income sank 32%–to $5 million. Revenue fell about 19%–to $44.8 million.
InTest Corp., a Cherry Hill, N.J. manufacturer of semiconductor testing equipment, is cutting more than two dozen jobs, hoping to save $1.4 million a year. The job cuts will result in $135,000 in severance costs.
Jacobs Engineering Group Inc., a Pasadena, Ca.-based provider of technical and construction services, won a contract from Hindustan Petroleum Corp. Ltd. to provide project-management consulting services for a refinery in India. Jacobs’s share of the $650 million installation project wasn’t revealed.
Jakks Pacific Inc., a Milpitas, Ca. designer and marketer of toys, reported a first quarter loss of $10.8 million, compared to earnings of $900,000 in the year-earlier period. Sales fell 17%–to $109 million.
Kennametal Inc., a Latrobe, Pa. manufacturer of mining equipment, metal-cutting tools and other products, lost $138 million in its recent quarter, compared with $23.2 million in earnings in the year-earlier period. Not including charges for restructuring and writedowns, Kennametal eked out a profit for the period, in line with analysts’ expectations. Sales for the quarter slumped 36%–to $441 million.
Kovair Software Inc., Milpitas, Ca., opened up a sales and marketing unit in India, which will serve the local market and the Middle East.
Liberty National Life Insurance Co., a unit of Texas-based Torchmark Corp., opened up two new branch offices in St. Louis, Mo. where it will hire 100 sales and management workers.
Marshall & Ilsley Corp., the Milwaukee, Wi. financial firm, reported a first quarter net loss of $117 million, compared to net income of $146 million a year ago. The recent results, which were worse than analysts had expected, included a more than $330 million increase in provisions for certain loans. Also, the quarter’s figures reflected a $51 million tax benefit and $25 million in dividends paid out to the federal government for the $1.7 billion infusion it received from the Treasury Department last fall.
Microline Pentax Inc., a Beverly, Ma. manufacturer of minimally invasive surgical devices, expanded by acquiring Starion Instruments Corp. of Sunnyvale, Ca. for an undisclosed amount.
MKS Instruments Inc., an Andover, Ma. maker of semiconductor manufacturing gear, reported a widened first quarter net loss of $16.5 million, compared to a $6.3 million loss in the fourth quarter. The recent results included $5.6 million in charges related to layoffs. Revenue sank 60%–to $76.7 million. MKS also warned that it will incur a loss in the second quarter.
National Grid, the biggest utility in the Albany, N.Y. area, filed for $120 million in federal money to help pay for a so-called smart grid pilot program in upstate New York. That money would cover about half of the cost of the program.
Nonni’s Foods, an Illinois-based unit of Greece’s Vivaritia SA that makes biscotti, bagels and other baked products, will spend $27 million to build a commercial bakery in Yardkinville, N.C., where it will hire more than 170 workers over the next three years.
NOVA Chemicals Corp., the Pennsylvania-based chemicals maker, reported a first quarter loss of $123 million on a 57% plunge in revenue–to $818 million. Recently, NOVA’s shareholders agreed to a deal for their company to be purchased by International Petroleum Investors of Kuwait, and the transaction should be wrapped up in the second quarter.
Pharmacyclics Inc., a Sunnyvale, Ca. drug developer, arranged a partnership with Servier, a French pharmaceuticals concern, to research, develop and commercialize a small-molecule anticancer agent. The deal could be worth as much as $40 million for Pharmacyclics.
Phase Forward, a Waltham, Ma. maker of software for clinical trials and drug safety, expanded by acquiring Waban Software, a privately-held Cambridge, Ma. firm, in a cash deal valued at $14 million.
Qualcomm Inc., San Diego, Ca., agreed to pay Broadcom Corp. of Irvine, Ca. $891 million to end longstanding patent litigation between them. That ends a string of battles between the two semiconductor manufacturers, which will now proceed to exchange the rights to each other’s tech patents.
Schlumberger Ltd., the big oil-services firm, reported its first quarter net income declined 30%–to $940 million. Revenue was down 4.5%–to $6 billion.
Secure Passage LLC, Overland Park, Ks. network software company, said that its first quarter revenue soared 161%. The privately-held company didn’t reveal exact figures.
St. Jude Medical Inc., a Little Canada, Mn. manufacturer of medical devices, reported its first quarter earnings rose 14%–to $201 million. Revenue increased 12%–to $1.1 billion, in line with Wall Street expectations.
Standard Register Co., Dayton, Oh., lost $11 million in its first quarter, compared to net income of $2.5 million a year ago. The recent results included almost $20 million in pension settlements, among other expenses. Revenue fell to $175 million, down from $207 million in the prior year’s first quarter.
SunTrust Banks Inc., Atlanta, Ga., landed in the red in the first quarter, reporting a net loss of $815 million, compared to earnings of $291 million in the year-earlier period. The recent results included noncash after-tax goodwill-impairment charges of $715 million. The firm also took a $994 million provision for loan losses. Revenue for the quarter was flat vis-a-vis a year ago at $2.2 billion.
Superior Uniform Group Inc., a Seminole, Fl. maker and distributor of uniforms and other apparel, reported a first quarter net loss of $500,000, compared to net income of $800,000 in the year-earlier period. Sales sank 28%–to $23.7 million. The company, which has been trimming costs by cutting jobs and streamlining operations, added that it cut all of its outstanding debt at the end of the first quarter.
Tasty Baking Co., Philadelphia, Pa., has moved into new headquarters in the Philadelphia Navy Yard Corporate Center. Next year the baking company will move its manufacturing operations into the same location.
Thomas & Betts Corp., a Memphis, Tn. designer and maker of electronic components and other products, reported its first quarter net earnings slumped 32%–to $26 million, on a 23% drop in sales–to $460 million.
3M Co., the diversified Minnesota manufacturer, reported its first quarter net income sank 47%–to $530 million, on a 21% revenue decline–to $5 billion. The results were hurt by restructuring charges and by changes in the way 3M records certain options. The company has been moving to reduce costs, recently offering early retirement to 3,600 nonunion employees, on top of 1,200 earlier job cuts.
Tractor Supply Co., a Brentwood, Tn. retailer of farm and ranch supplies, reported a $500,000 profit in its first quarter, up from a $2 million net loss in the year-earlier quarter. Net sales were up almost 13%–to $650 million, including a 4% increase in same-store sales.
Trinity Transport Inc. sold its DLT Transportation Services Inc. unit in Kansas City, Mo. to BirdDog Solutions Inc., an Andover, Ma. delivery firm, for an undisclosed amount.
TriQuint Semiconductor Inc., a Hillsboro, Or. provider of wireless communications products, reported a first quarter loss of $15.6 million on a 7% revenue increase–to $119 million.
Union Pacific Corp., the Omaha, Ne. railroad company, reported that net income fell 18% in its recent quarter–to $362 million. Revenue declined 21%–to $3.4 billion.
Vocus Inc., a Lanham, Md. provider of public relations management software, reported a first quarter net loss of nearly $480,000, compared to a $400,000 loss a year ago. Revenue rose 14%–to $20.4 million.
Volvo AB, the Swedish-based truck manufacturer, reported a net loss for its first quarter of $510 million. Revenue fell 27%–to $6.8 billion.
Wal-Mart Stores Inc., anticipating strong growth in the second half of the year, will add 3,000 jobs at its operations in North Carolina.
WellPoint Inc., the Indianapolis, In. health insurer, completed its deal to acquire DeCare Dental in Eagan, Mn. for $100 million.
Xerox Corp., Norwalk, Ct., managed a profit in the first quarter of $42 million, a turnaround from its $235 million loss a year ago. However, pressured by declining sales of copiers, printers and related supplies, Xerox’s revenue slumped 18% in the quarter–to nearly $3.6 billion.
(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 -->)
Tuesday
April 28, 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.)
Educational Tidbits
For Today's Financial Executive
Quick: What’s the Relationship Between Ratings Firms
And the U.S. Constitution?
Ratings companies such as Fitch Ratings, Standard & Poor’s and Moody’s came under harsh criticism for their allegedly failing to point out the risks of those mortgage-backed securities that supposedly prompted the slide into the current recession. Observers complained that the ratings firms were in an inherent conflict of interest with the companies they’re supposed to rate and ended up giving unrealistically rosy bills of health when in fact they were about to collapse under debt. The ratings companies have often protected themselves from liabilities by asserting that their ratings are, in effect, an expression of free speech as provided by the U.S. Constitution, and courts have generally supported that line of reasoning. However some investors are pushing ahead with litigation against the ratings companies, but they will have to show that the ratings firms not only provided false assessments but also provided that information with “actual maliceâ€. Judges could rule against the ratings firms’ traditional free-speech protection if they determine that their ratings of the mortgage-backed securities amount to private commercial transactions, in which case they might be held liable.
The Business Professional’s
Q&A Corner
YESTERDAY’S QUESTION: Explain some of the problems customer deductions can present with regard to accounts receivable.
ANSWER: Customer deductions, whether valid or invalid, can be a nightmare to those who deal with accounts receivables. Often such deductions as freight, pricing and even sales tax can sit on an AR ledger for long periods of time until they are either credited or paid back by the customer. There are dozens of different kinds of deductions that customers take. In fact, numerous surveys have shown that more than 80% of the time deductions are valid and should be credited promptly. Some companies have systems in place that allow for a quick resolution of these items, yet in other firms (and it often varies by industry not necessarily firm-to-firm) deductions can sit on a company's books for as long as six months. The result? Inflated receivables that in the long run can cost your company money. If a company's credit line is, even in part, tied to its AR, then the inflation of this current asset could adversely affect the amount that company can draw against–a thought to consider when evaluating your overall AR status.
QUESTION: Explain what happens in a Chapter 13 filing, with regard to a trustee, creditors’ meetings and a reorganization plan.
ANSWER NEXT ISSUE
Today's Headlines:
Comerica Inc. cuts almost 500 jobs...
Danaher Corp. announces 2,300 job cuts...
General Motors Corp., saying it needs $11.6 billion more in government loans, warns of a bankruptcy filing if bondholders don’t exchange debt...
Honeywell International Inc.’s first quarter profit sinks on a sales decline...
Jakks Pacific Inc. reports a first quarter loss...
Kennametal Inc. reports a quarterly loss...
Marshall & Ilsley Corp. reports a loss for its first quarter...
MKS Instruments Inc. reports a widened first quarter net loss...
NOVA Chemicals Corp. reports a first quarter loss on a plunge in sales...
Spansion Inc. seeks “strategic alternatives†for its wireless operations...
SunTrust Banks Inc. reports a large loss for its first quarter...
W.R. Grace & Co. reports a first quarter loss...
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.)
Arthur Diamonds in Los Angeles, Ca. filed Chapter 7. As of February the firm had estimated liabilities of more than $1.4 million. Assets, partly in the form of more than $315,000 in accounts receivable, are considered largely uncollectible.
Atherogenics Inc. has seen a 6/2 hearing scheduled to consider confirmation of its Chapter 11 reorganization plan. For more information contact the U.S. Bankruptcy Court at 800-510-8284.
Brownsburg Golf Course Inc., the owner of the Oak Ford Golf Course in Sarasota, Fl., filed Chapter 7 with the intention of liquidating. The firm listed assets and liabilities of about $4.5 million and $6.7 million respectively.
Charter Communications Inc.’s reorganization plan is coming under fire, which could in turn throw a wrench into the St. Louis, Mo. cable firm’s hopes of quickly emerging from Chapter 11. The trustee in the case expressed dissatisfaction with a stipulation in the plan that would exempt former executives, directors and others from being held accountable in litigation hitting them with securities-laws violations and other actions. In another move, Charter said that it will issue new common shares to some of its bondholders in order to raise cash.
Chisholm Properties of Pensacola LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Florida. The firm listed assets of less than $100,000 and liabilities of between $1 million and $100 million. The case number is 09-30782. For more information contact the court at 850-942-8358.
Circuit City Stores Inc., the Richmond, Va. electronics retailer, has seen a 5/11 asset auction scheduled in its Chapter 11 bankruptcy. Objections must be filed by 5/12 and a sale hearing is scheduled for 5/13. For more information contact the debtor’s attorney, Gregg Galardi, at 302-651-3000.
DBSI Inc. has seen a 6/4 deadline set for filing proof of claims in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Foamex International Inc. has seen a 5/19 auction scheduled for certain assets in its Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Happy Vacations, a California tour company that specializes in Hawaiian tours, shut down its operations and filed Chapter 11.
Masonite Corp. has seen a 5/21 deadline set for voting on its Chapter 11 reorganization plan. Also, a 5/29 confirmation hearing has been scheduled. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2900.
Pilgrim’s Pride Corp. has seen a 6/1 deadline set for filing alternative dispute resolution confirmation of loss forms in its Chapter 11 bankruptcy. For more information contact the U.S. Bankruptcy Court at 800-886-9008.
Spansion Inc. of Sunnyvale, Ca., which is reorganizing under Chapter 11, will seek “strategic alternatives†for its wireless operations as it hopes to focus on its embedded-solutions technology and the licensing of intellectual property. Spansion, sitting on almost $200 million in cash to support its strategy, hopes to develop a business worth about $1 billion in revenue per year.
T. Thomas Chevrolet in Lakeland, Fl. filed Chapter 11. The filing, in the U.S. Bankruptcy Court for the Middle District of Florida, listed assets of as much as $10 million and liabilities of up to $50 million. The company does business as Michael Holley Chevrolet, T. Thomas Affordable Used Cars, Michael Holley’s Pre-Owned Wholesale Outlet and Michael Holley’s Regional Discount Chevy Store.
Ward Street Associates LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of between $1 million and $100 million each. The case number is 09-35974. For more information contact the court in Manhattan, N.Y. at 212-668-2870.
W.R. Grace & Co., a Columbia, Md. chemicals firm, reported a first quarter net loss of $38.9 million, compared to net income of $17.7 million a year ago. Sales fell 10%–to $682 million, partly because of currency-translation effects. While reporting the loss, Grace said that it has improved its operations, partly by trimming its payroll and shrinking its working capital by $90 million. The firm, which has been in Chapter 11 for eight years, hopes to complete its reorganization plan by the end of this year.
DISTRESSED / RAPIDLY-EXPANDING COMPANIES
&
OTHER COMPANY NEWS
AT&T Inc., Dallas, Tx., is pulling the plug on its Call Vantage Internet-based phone service as it focuses on its own Voice over Internet Protocol operations.
Burlington Northern Santa Fe Corp,, the Fort Worth, Tx. railroad company, reported that net income dropped 36% in its recent quarter–to $293 million, on a 21% slide in revenue–to $3.4 billion. The results included $96 million in extra charges.
Canadian Pacific Railway Ltd., Calgary, Alberta, reported that net income sank 31% in its recent quarter–to $50.4 million, on a nearly 7% slide in revenue–to $863 million.
Chemed Corp., Cincinnati, Oh., reported its first quarter net income rose to $19.3 million, up from $15.9 million in the year-earlier period. Revenue rose to $295 million, slightly ahead of analyst’ estimates and up from $285 million a year ago. The company benefitted from Medicare-related federal stimulus funds at its Vitas Healthcare business. Chemed’s other main line of business is its Roto-Rooter service.
Columbia Sportswear Co., Portland, Or., reported its first quarter profit sank 65%–to $6.9 million, while sales fell 8.5%–to $272 million, although the sales beat analysts’ expectations.
Comerica Inc., a Dallas, Tx. financial services firm, announced that its trimmed its payroll by the equivalent of 490 full-time positions during the first quarter, following 160 layoffs in the fourth quarter. The company took $6 million in severance costs in the recent quarter, on top of $29 million in the fourth quarter. Comerica recently reported its first quarter profit plunged to $9 million, down from $109 million in the year-ago quarter.
Corning Inc., the Corning, N.Y.-based maker of fiberoptic products, reported its first quarter net income plunged 99%–to $14 million. Revenue sank 39%–to $989 million. Despite the sharp decline in earnings, results were ahead of expectations as the manufacturer benefitted from the demand for its liquid-crystal-display products.
Danaher Corp., the big Washington, D.C. manufacturer of industrial tools, will now pare its payroll by 2,300 positions, up from an earlier announcement that it would cut 1,700 jobs, as it consolidates sixteen sales and manufacturing sites. Danaher earlier said its restructuring would cost it at most $60 million but has upped that estimate to between $150 million and $170 million. The firm also said that its first quarter profit fell 14%–to $238 million, on a 13% drop in sales–to $2.6 billion.
DataSource Inc., a print-supply-chain management firm, expanded by acquiring Comet Sales of St. Louis, Mo. and MoSolutions LLC of Atlanta, Ga. Those purchases are fast on the heels of DataSource’s recent acquisition of FRI Resources.
Eastern Financial Florida Credit Union was put into conservatorship by Florida’s banking regulators, with its assets turned over to the National Credit Union Administration.
Equinix Inc., a Foster City, Ca. data-center operator, reported its first quarter net income soared fourfold–to $15.5 million, on a 26% increase in revenue–to $199 million. The results included an $11.6 million tax expense.
Evans Bancorp Inc., in a move to reduce credit exposure and focus on its core banking operations, will get out of the equipment-leasing side of its business. Also, Evans, Angola, N.Y., reported a $1.2 million loss in its first quarter, including $2 million in impairment charges related to the leasing unit.
Exaprotect Inc., a Mountain View, Ca. security technology company, is being acquired by LogLogic Inc. for an undisclosed amount.
F5 Networks Inc., a Seattle, Wa. software maker, reported its second quarter net income slipped to $19 million, down from $21.4 million a year ago. Revenue declined to $154 million, down from $159 million in the year-earlier period.
First Solar Inc., a Tempe, Az. provider of thin-film photovoltaic panels for solar arrays, and its German partner, Juwi Holding AG, won financing for development of a 53-megawatt solar plant in Germany, saying they arranged for 80% of the money needed for the project. The companies didn’t reveal the cost of the project but it’s thought that a facility of that size would cost somewhere in the neighborhood of $300 million.
Fluke Corp., an Everett, Wa. manufacturer of portable electronic test and measurement gear, expanded by acquiring Hawk IR International Ltd. in England, a maker of infrared safety products, for an undisclosed amount.
Frontier Financial Corp., Everett, Wa., reported a first quarter loss of $33.8 million, compared to net income of $15.5 million a year ago. Nonperforming loans increased to more than 16% of its total assets, up from under 11% in the fourth quarter. Frontier, which boosted loan-loss provisions in the recent quarter, also said that it will suspend its 401(k) matching program, hoping to save $1.7 million a year.
Gander Mountain Corp., the St. Paul, Mn. seller of sporting goods, more than doubled its net income in the fourth quarter from the year-earlier period–to $13 million. Sales rose 5%–to $334 million, although same-store sales slipped a bit. The results were helped by strong sales of ammunition and other hunting gear.
General Electric Co., Stamford, Ct., is in an agreement to sell its 81% interest in its Homeland Protection business to Safran SA of France, an aerospace maker, in a $580 million cash transaction. The unit, which focuses on making narcotics and explosives detection equipment, reported sales last year of $260 million, down from $416 million in 2003.
General Motors Corp. said that a restructuring will require another $11.6 billion in government loans, at the same time warning that it will file for bankruptcy protection if its attempt to reach a debt-exchange deal with its bondholders doesn’t work out. GM told the bondholders that it is making an exchange offer for $27 billion of unsecured public notes, hoping to stay out of bankruptcy. However, the carmaker said that if it does file for bankruptcy protection, its reorganization plan would call for splitting itself into two companies, one containing its good assets, including its Chevrolet, Cadillac, Buick and GMC brands, and a separate entity holdings its bad assets, which would be liquidated as GM continues trimming down its number of models. Already GM has said it will dump its Pontiac brand.
Haemonetics Corp., a Braintree, Ma. blood-management concern, expanded by purchasing privately-held Neoteric Technology Ltd. for an undisclosed amount. Neoteric is a medical-information management company. Also, Haemonetics said that it will continue to make strategic acquisitions.
Honeywell International Inc., the Morristown, N.J. manufacturing conglomerate, reported its first quarter profit sank 38%–to $399 million. Net sales fell 15%–to $7.6 billion. The firm also lowered its outlook for the full year.
FirstMerit Corp. of Akron, Oh., a banking company, spent $126 million to buy back preferred shares that it sold last year to the Treasury Department’s Capital Purchase Program.
Igate Corp., a Fremont, Ca. outsourcing concern, reported its first quarter net income sank 32%–to $5 million. Revenue fell about 19%–to $44.8 million.
InTest Corp., a Cherry Hill, N.J. manufacturer of semiconductor testing equipment, is cutting more than two dozen jobs, hoping to save $1.4 million a year. The job cuts will result in $135,000 in severance costs.
Jacobs Engineering Group Inc., a Pasadena, Ca.-based provider of technical and construction services, won a contract from Hindustan Petroleum Corp. Ltd. to provide project-management consulting services for a refinery in India. Jacobs’s share of the $650 million installation project wasn’t revealed.
Jakks Pacific Inc., a Milpitas, Ca. designer and marketer of toys, reported a first quarter loss of $10.8 million, compared to earnings of $900,000 in the year-earlier period. Sales fell 17%–to $109 million.
Kennametal Inc., a Latrobe, Pa. manufacturer of mining equipment, metal-cutting tools and other products, lost $138 million in its recent quarter, compared with $23.2 million in earnings in the year-earlier period. Not including charges for restructuring and writedowns, Kennametal eked out a profit for the period, in line with analysts’ expectations. Sales for the quarter slumped 36%–to $441 million.
Kovair Software Inc., Milpitas, Ca., opened up a sales and marketing unit in India, which will serve the local market and the Middle East.
Liberty National Life Insurance Co., a unit of Texas-based Torchmark Corp., opened up two new branch offices in St. Louis, Mo. where it will hire 100 sales and management workers.
Marshall & Ilsley Corp., the Milwaukee, Wi. financial firm, reported a first quarter net loss of $117 million, compared to net income of $146 million a year ago. The recent results, which were worse than analysts had expected, included a more than $330 million increase in provisions for certain loans. Also, the quarter’s figures reflected a $51 million tax benefit and $25 million in dividends paid out to the federal government for the $1.7 billion infusion it received from the Treasury Department last fall.
Microline Pentax Inc., a Beverly, Ma. manufacturer of minimally invasive surgical devices, expanded by acquiring Starion Instruments Corp. of Sunnyvale, Ca. for an undisclosed amount.
MKS Instruments Inc., an Andover, Ma. maker of semiconductor manufacturing gear, reported a widened first quarter net loss of $16.5 million, compared to a $6.3 million loss in the fourth quarter. The recent results included $5.6 million in charges related to layoffs. Revenue sank 60%–to $76.7 million. MKS also warned that it will incur a loss in the second quarter.
National Grid, the biggest utility in the Albany, N.Y. area, filed for $120 million in federal money to help pay for a so-called smart grid pilot program in upstate New York. That money would cover about half of the cost of the program.
Nonni’s Foods, an Illinois-based unit of Greece’s Vivaritia SA that makes biscotti, bagels and other baked products, will spend $27 million to build a commercial bakery in Yardkinville, N.C., where it will hire more than 170 workers over the next three years.
NOVA Chemicals Corp., the Pennsylvania-based chemicals maker, reported a first quarter loss of $123 million on a 57% plunge in revenue–to $818 million. Recently, NOVA’s shareholders agreed to a deal for their company to be purchased by International Petroleum Investors of Kuwait, and the transaction should be wrapped up in the second quarter.
Pharmacyclics Inc., a Sunnyvale, Ca. drug developer, arranged a partnership with Servier, a French pharmaceuticals concern, to research, develop and commercialize a small-molecule anticancer agent. The deal could be worth as much as $40 million for Pharmacyclics.
Phase Forward, a Waltham, Ma. maker of software for clinical trials and drug safety, expanded by acquiring Waban Software, a privately-held Cambridge, Ma. firm, in a cash deal valued at $14 million.
Qualcomm Inc., San Diego, Ca., agreed to pay Broadcom Corp. of Irvine, Ca. $891 million to end longstanding patent litigation between them. That ends a string of battles between the two semiconductor manufacturers, which will now proceed to exchange the rights to each other’s tech patents.
Schlumberger Ltd., the big oil-services firm, reported its first quarter net income declined 30%–to $940 million. Revenue was down 4.5%–to $6 billion.
Secure Passage LLC, Overland Park, Ks. network software company, said that its first quarter revenue soared 161%. The privately-held company didn’t reveal exact figures.
St. Jude Medical Inc., a Little Canada, Mn. manufacturer of medical devices, reported its first quarter earnings rose 14%–to $201 million. Revenue increased 12%–to $1.1 billion, in line with Wall Street expectations.
Standard Register Co., Dayton, Oh., lost $11 million in its first quarter, compared to net income of $2.5 million a year ago. The recent results included almost $20 million in pension settlements, among other expenses. Revenue fell to $175 million, down from $207 million in the prior year’s first quarter.
SunTrust Banks Inc., Atlanta, Ga., landed in the red in the first quarter, reporting a net loss of $815 million, compared to earnings of $291 million in the year-earlier period. The recent results included noncash after-tax goodwill-impairment charges of $715 million. The firm also took a $994 million provision for loan losses. Revenue for the quarter was flat vis-a-vis a year ago at $2.2 billion.
Superior Uniform Group Inc., a Seminole, Fl. maker and distributor of uniforms and other apparel, reported a first quarter net loss of $500,000, compared to net income of $800,000 in the year-earlier period. Sales sank 28%–to $23.7 million. The company, which has been trimming costs by cutting jobs and streamlining operations, added that it cut all of its outstanding debt at the end of the first quarter.
Tasty Baking Co., Philadelphia, Pa., has moved into new headquarters in the Philadelphia Navy Yard Corporate Center. Next year the baking company will move its manufacturing operations into the same location.
Thomas & Betts Corp., a Memphis, Tn. designer and maker of electronic components and other products, reported its first quarter net earnings slumped 32%–to $26 million, on a 23% drop in sales–to $460 million.
3M Co., the diversified Minnesota manufacturer, reported its first quarter net income sank 47%–to $530 million, on a 21% revenue decline–to $5 billion. The results were hurt by restructuring charges and by changes in the way 3M records certain options. The company has been moving to reduce costs, recently offering early retirement to 3,600 nonunion employees, on top of 1,200 earlier job cuts.
Tractor Supply Co., a Brentwood, Tn. retailer of farm and ranch supplies, reported a $500,000 profit in its first quarter, up from a $2 million net loss in the year-earlier quarter. Net sales were up almost 13%–to $650 million, including a 4% increase in same-store sales.
Trinity Transport Inc. sold its DLT Transportation Services Inc. unit in Kansas City, Mo. to BirdDog Solutions Inc., an Andover, Ma. delivery firm, for an undisclosed amount.
TriQuint Semiconductor Inc., a Hillsboro, Or. provider of wireless communications products, reported a first quarter loss of $15.6 million on a 7% revenue increase–to $119 million.
Union Pacific Corp., the Omaha, Ne. railroad company, reported that net income fell 18% in its recent quarter–to $362 million. Revenue declined 21%–to $3.4 billion.
Vocus Inc., a Lanham, Md. provider of public relations management software, reported a first quarter net loss of nearly $480,000, compared to a $400,000 loss a year ago. Revenue rose 14%–to $20.4 million.
Volvo AB, the Swedish-based truck manufacturer, reported a net loss for its first quarter of $510 million. Revenue fell 27%–to $6.8 billion.
Wal-Mart Stores Inc., anticipating strong growth in the second half of the year, will add 3,000 jobs at its operations in North Carolina.
WellPoint Inc., the Indianapolis, In. health insurer, completed its deal to acquire DeCare Dental in Eagan, Mn. for $100 million.
Xerox Corp., Norwalk, Ct., managed a profit in the first quarter of $42 million, a turnaround from its $235 million loss a year ago. However, pressured by declining sales of copiers, printers and related supplies, Xerox’s revenue slumped 18% in the quarter–to nearly $3.6 billion.