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Corporate Report
by Sean Roth | Real Estate Editor
WCI delays earnings,
assets worse than expected
Bonita Springs-based builder WCI Communities Inc. pushed back its second quarter earnings release to give the company more time to investigate its real estate holdings and other assets. Officials for WCI expect the company to report a charge against assets of $34 million to $54 million before taxes for the second quarter of 2007.
In an Aug. 10 filing, WCI officials reported the company expected to take a net loss for the quarter of $16.9 million driven by a smaller $14 million impairment.
The company reports that it is negotiating with its lenders for an amendment to its bank covenants starting in the quarter ended June 30, to allow WCI to be in compliance with its loans.
Downing-Frye Realty ranked 81st by Realtor Magazine
Naples-based brokerage Downing-Frye Realty Inc. was ranked 81st in the nation among real estate companies based on closed sales volume according to a report published in a recent issue of Realtor Magazine. The Naples-based firm reported total sales of more than $1.68 billion during 2006 with a total of 2,619 sales transactions.
The agency currently has more than 700 agents.
Former Danka CEO
joins First Advantage as VP
Todd L. Mavis has joined First Advantage Corp., a St. Petersburg-based global risk mitigation and business solutions provider, as executive vice president of operations. Mavis will report directly to President and CEO Anand Nallathambi and will focus on providing operational oversight and promoting the strategic growth initiatives of First Advantage's business segments. Mavis most recently served as president and CEO of Danka Business Systems of St. Petersburg. His previous positions include executive vice president and general manager of Mitchell International, and senior vice president for worldwide sales and marketing of Checkmate Electronics.
Investor loans Tampa
energy company $750,000
Tampa alternative energy company Renewable Energy Resources Inc. reported that a private investor has committed a $750,000 five-year loan to fund RENW and the Springfield Energy Project. RENW has already received $100,000 of that from the investor for corporate operations. The remaining $650,000 is scheduled to become available upon the financial closing in September.
Springfield Energy Project LLC is a joint venture of RENW and Wastech Inc. to acquire the Peabody #10 mine complex near Pawnee, Ill. This acquisition covers about 600 acres permitted to reclaim coal fines and dispose of coal combustion waste. RENW is in the final stages of completing the financing of the project. Once the property is acquired and the permit transferred, SEP will recover about four million raw tons of slurry material. SEP also intends to tap into the existing methane wells on the SEP property and to explore other opportunities.
Renewable Energy Resources Inc. focuses on acquiring technologies that create energy and fuel from previously untapped sources.
Brown & Brown
bets on horse insurance
A subsidiary of Daytona Beach and Tampa-based insurance company Brown & Brown Inc. has acquired the assets of horse insurance firm Muirfeld Insurance Inc., of Lexington, Ky.
The thoroughbred-focused Muirfeld Insurance reported annualized revenues of about $1.9 million. The agency provides equine mortality insurance and related coverage for owners of all horse breeds. Mike Levy and Muirfeld's staff will continue to operate from its existing location in Lexington as a freestanding Brown & Brown operation.
The acquisition marks Brown & Brown's first move into horse mortality insurance.
Stockholders back GeoPharma
and Dynamic Health merger
Shareholders for both Largo-based GeoPharma Inc. and Dynamic Health Products Inc. have approved merger plans by the company. The merger is scheduled to close on Aug. 31. If the deal is goes through, a wholly-owned subsidiary of GeoPharma will be merged into Dynamic, which will in turn become a wholly owned subsidiary of GeoPharma. In exchange GeoPharma has committed to 0.1429 shares of its common stock for each share of Dynamic common stock. Fractional shares will be rounded up to the nearest whole share.
Officials for GeoPharma say that more than 98% of the shares that voted, voted in favor of the merger.
GeoPharma is a pharmaceutical company specializing in the manufacture and distribution of over-the-counter, nutritional, generic drug and functional food products.
Dynamic is a distributor of sports nutrition products and is engaged in developing, wholesaling, and distributing a wide variety of non-prescription drugs, dietary supplements, vitamins, health foods, nutritional products, soft goods and other related products.
Walter Industries' United Land
buying Tuscaloosa Resource
A Tampa-based Walter Industries Inc. wholly owned subsidiary, United Land Corp. has agreed to acquire Tuscaloosa Resource Inc. for $21.7 million in cash and assumed debt. Tuscaloosa Resources is a Birmingham, Ala.-based surface coal producer for the industrial and steam coal markets.
TRI's mines, which have historically produced about 800,000 tons of high BTU, primarily low sulfur coal per year, are located near United Land's barge facility and Jim Walter Resources' existing operations. The close proximity of TRI to the company's existing infrastructure is expected to provide opportunities to cut costs and increase revenue, such as blending TRI's coal production with the company's existing coal products. Tuscaloosa Resources controls about 8 million tons of coal reserves, and generated a historical three-year average EBITDA of about $7.5 million.
The transaction includes $13.3 million in cash and the assumption of about $8.4 million in net debt. The deal is currently scheduled to close in the third quarter.
In conjunction with the TRI acquisition, Charles C. Stewart has been named president of United Land. Stewart's management responsibilities now include all of United Land's coal operations, including TRI and Kodiak Mining. In addition to this role, he remains president of Sloss Industries.
At the same time, Walter Industries' board of directors approved a $25 million open market share repurchase program.
"This share repurchase program reflects the board's confidence in the long-term outlook for Walter Industries," Michael T. Tokarz, chairman of Walter Industries said in a press release. "Our strong cash flows allow the company to not only make investments and acquisitions in our businesses, but also deploy capital to buy back shares."
Seminole Electric
buying landfill gas energy
Tampa-based Seminole Electric Cooperative Inc. reached an agreement with Landfill Energy Systems for the electrical output from two new landfill gas-to-energy projects. These projects increase Seminole's renewable energy resource portfolio to more than 90 megawatts, enough to power more than 50,000 homes, making it the largest in Florida
LES, headquartered in Wixom, Mich., has developed 22 landfill energy projects around the country. The two projects: Seminole Energy LLC in Seminole County and Brevard Energy LLC in Brevard County, are the first for LES in Florida. Under the arrangement, LES will build, own and operate the facilities, which will collect methane generated in municipal landfills, and use it to generate electricity. Seminole will purchase the electricity the centers produce, beginning in October through 2018.
Seminole Electric Cooperative is the second largest non-profit generation and transmission cooperative in the U.S. The cooperative provides energy to more than 1.6 million individuals and businesses in 46 Florida counties.
XCPT reaches rep deal
with Lifecore Biomedical
Venice-based XCPT LLC has entered into a representation agreement with Lifecore Biomedical Inc. to market its products to dentists throughout the world.
XCPT's software is a highly graphic, face-to-face, patient consultation and education program that is designed to give patients a better understand of their possible treatment options.
The agreement with Lifecore marks the third dental implant company and seventh company overall which has begun to incorporate XCPT as a practice-building tool throughout its sales force.
Lifecore Biomedical develops, manufactures and markets biomaterials and medical devices for use in various surgical markets through two divisions, the dental and the hyaluronan divisions.
e-Path Communications
offering WiFi to Long Island
Suffolk and Nassau counties on Long Island have selected Tampa-based mobile-wireless Internet service provider e-Path Communications Inc., KeySpan Communications and Cisco, to build, own and operate a wireless broadband communications network throughout Long Island.
E-Path Communications, KeySpan Communications and Cisco have committed to developing a landline free access point to the Internet for the entire 750-square-mile network. The e-Path team plans to develop a wireless broadband Internet access point that also offers a collection of voice and data bundled and/or managed services including Internet phone, IP cellular and various municipal applications, such as healthcare, automated meter reading and more.
"Broadband wireless connectivity will provide a plethora of economic, social and community benefits to Long Island," Joe Tortoretti, president and CEO of e-Path Communications, said in a press release. "Increased public safety and community communications, digital inclusion programs for underserved and disadvantaged citizens and businesses, educational programs and improved government services and reduced communications expenses all are very tangible benefits of having ubiquitous broadband connectivity."
HSN partners with Elle
for week of shows
St. Petersburg's HSN is partnering with ELLE magazine to produce a week-long series of trend-driven shows combining ELLE's fashion voice with several HSN's designers. The shows will run from Aug. 18 to Aug. 24.
HSN and ELLE will be cross-marketing the series, including on-air promos, package inserts and customer emails, as well as advertising in HSN's program guide and upcoming issues of ELLE.
Tervis Tumbler lands license
with Rally for the Cure
Venice-based drinkware-manufacturer Tervis Tumbler Co. has entered into a marketing partnership with Rally for the Cure, a grassroots program promoting breast cancer awareness and prevention through early detection.
The licensing agreement gives Tervis Tumbler the rights to market and sell official Rally for the Cure tumblers.
"Our popularity in the golf industry, especially at tournament golf events, helped bring us together with Rally for the Cure," Laura Spencer, Tervis Tumbler CEO, said in a press release. "This is an ideal opportunity to promote the cause and encourage breast cancer awareness. With every sale, we are helping the cause - every time a Rally tumbler is used, we help spread the message. We feel certain that Rally tumblers will not only sell well in the golf market, but also in our retail and premium channels, as well as on our website and in our own four Tervis stores."
Rally for the Cure Tervis Tumblers will feature an embroidered emblem with the breast cancer awareness pink ribbon intertwined with a golf club.
Wabasto Marine hires
Design Marketing Group
Sarasota-based marketing communications firm, Design Marketing Group Inc. has been hired by Wabasto Marine, a division of Webasto, to provide trade show services for the 2007-2008 season. DMG will supply custom exhibit solutions and show management including complete I&D services as well as transport for the International Boat Builders' Exhibition, the Annapolis Boat Show, Ft. Lauderdale Boat Show and the Miami International Boat Show.
CAE USA developing
chopper trainer for Navy
CAE USA has been awarded a contract by the U.S. Navy valued at more than $66 million, including options, to design and manufacture three additional MH-60S helicopter operational flight trainers and two additional MH-60S weapons tactics trainers. The Navy has exercised its first option, valued at more than $15 million, to begin design and development of a helicopter flight trainer.
CAE USA is now under contract to design and build seven MH-60S OFTs and six MH-60S WTTs for the U.S. Navy. The new MH-60S OFTs will all be full-motion flight simulators also featuring CAE's unique three degrees-of-freedom helicopter vibration platform for added realism. The new MH-60S OFTs and WTTs will be delivered to either Naval Air Station (NAS) Norfolk or NAS North Island beginning in 2009.
CAE provides simulation and modeling technologies, and employs more than 5,500 people at more than 75 sites and training locations in 19 countries, including in Tampa.
Tampa company
introduces Hispanic Web site
Tampa's The Questamente Network Inc. has launched a national beta test of its new dual language Web site designed for Hispanic business professionals and entrepreneurs in the U.S. The site, questamente.com, provides free business information on starting or managing a business and offers a library of business articles, sample business plans, executive profiles and a blog. It also allows users to interact and communicate with each other through industry forums, themed chat rooms and social networking features. All content and functions are offered in Spanish as well as English.
"Our site allows Hispanic business professionals to form their own Internet community where they can learn from each other and share experiences and opinions from anywhere in the country," Questamente co-founder Kathleen Chitester said in a press release. "There are already more than 2 million Hispanic-owned business in the U.S. and that number is expected to increase to 3.2 million in the next few years."
As part of its launch, Questamente will offer a full sample business plan with financial pro formas, free to all members who register in August.
Chico's June sales up, comparables continues fall
Fort Myers-based specialty retailer Chico's FAS Inc. continued its decline in company-owned stores comparable sales in July even while sales increased.
The company reported that for the four-week period ended Aug. 4, sales increased 10.4% to $121.4 million from $110.0 million reported for the same four-week period last year. Comparable store sales for the company-owned stores decreased 6.7% for the four-week period ended Aug. 4 compared to the same four-week period last year.
Total sales for the second quarter increased 8.1% to $436 million from $403 million for the same period a year ago. But comparable store sales for the company-owned stores decreased 5.6% for the 13-week period ended compared to the same thirteen-week period last year.
However, the sales picture looks better for the past half year. For the twenty-six week total sales increased 12% to $889 million from $794 million reported for the twenty-six week period ended July 29, 2006. Comparable store sales for the company-owned stores only decreased 3.6%.
The company operates 958 women's specialty stores in 48 states under the Chico's, White House | Black Market and Soma Intimates names.
July Sales Percent Increase
(dollars in millions) Comparable Store Sales
Fiscal 2006 Fiscal 2007 Total Sales Fiscal Comparable
$121.4 $110 10.4% (6)% (6.7)%
Quarter-to Date Sales Percent Increase
(dollars in millions) Comparable Store Sales
Fiscal 2006 Fiscal 2007 Total Sales Fiscal Comparable
$436 $403 8.1 % (7.7)% (5.6)%
Year-to Date Sales Percent Increase
(dollars in millions) Comparable Store Sales
Fiscal 2006 Fiscal 2007 Total Sales Fiscal Comparable
$889 $794 12% (3.3)% (3.6)%
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