Corporate Report

By Business Observer Staff
| 6:00 p.m. January 8, 2009
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Corporate Report

Quasar Bio-tech to bring

manufacturing, more jobs

CORPORATE REPORT by Sean Roth | Real Estate Editor

Quasar Bio-tech Inc., which produces light-therapy devices, is planning to move its manufacturing to Manatee County and add up to 24 employees later this year, according to Nancy Engel, executive director of the Economic Development Council of the Manatee Chamber of Commerce.

The EDC assisted Quasar Bio-tech with setting up its headquarters, distribution, and research and development operations in the county last year.

"We anticipate triple-digit growth to continue with the introduction of new technology in the first half of 2009," said Peter Nesbitt, Quasar Bio-tech president. "To facilitate our market expansion, we plan to bring manufacturing in-house and staff up accordingly. The anti-aging market is approximately $30 billion in the United States, with Americans spending more on skincare than any other country. The demand for professional treatments and tools in the home user category could potentially make it a $100-billion market."

Last August, Quasar Bio-Tech relocated from Valley Forge, Pa., to 2,500 square feet of leased space in South Manatee County. Quasar Bio-Tech currently has six employees and uses a vendor in Texas for manufacturing. The company is seeking local suppliers for specialized items such as printed circuit-board makers.

In 2001, Quasar Bio-tech began marketing red- and infrared-light therapy devices for medical and cosmetic use. In 2007, the company introduced photo-rejuvenation devices.

The company's two best-selling consumer products are the Baby Quasar for photo rejuvenation and the Baby Blue for treating acne. The products are sold online and at retailers like Dillard's. Nesbitt plans to expand into international markets in 2010.

Brown & Brown of Indiana

buys assets of state company

Affiliated entities of Brown & Brown of Indiana Inc., a subsidiary of Tampa- and Daytona Beach-based insurance firm Brown & Brown Inc., purchased the assets of R.E. Sutton & Associates LLC, of Brownsburg, Ind.

R.E. Sutton & Associates, which reports annual revenues of $1.5 million, provides employee benefits consulting services for school districts, libraries, municipalities and other public entities throughout Indiana. R.E. Sutton & Associates' staff will operate as a separate specialty unit within Brown & Brown and retain its company name.

Brown & Brown Inc. offers insurance and reinsurance products and services, as well as risk management, third-party administration, managed health care, and Medicare set-aside services and programs.

Jim Walter Resources leases

additional coal reserves

Walter Industries Inc.'s subcompany Jim Walter Resources has leased 46 million tons of additional high-quality Blue Creek Coal reserves contiguous to its Mine No. 4 and Mine No. 7 operations near Brookwood, Ala.

"These new leases are an excellent strategic addition to our existing Blue Creek Coal reserves," Jim Walter Resources CEO George Richmond said in a press release. "Not only is this coal of a similar quality to our other metallurgical coals, the reserves are adjacent to our current mining operation, which has the potential to expand our production capacity efficiently in the future."

Tampa-based Walter Industries Inc. is a leading producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas, furnace and foundry coke and other related products.

Sunovia Energy picks Rayovac

to market new product line

Sarasota-based energy-product company Sunovia Energy Technologies Inc. reached an exclusive three-year marketing and distribution agreement with the Rayovac division of Spectrum Brands Inc. of Madison, Wis.

Under the terms, Rayovac will become the exclusive global distributor for a new line of switch and outlet plates that illuminate automatically during power outages, developed by Sunovia's EvoLucia Lighting Division. The switch and outlet plates contain light-emitting diodes to offer an inexpensive and safer source of light. The plates are not wired into walls; they are designed to replace existing plates and are powered by standard AA or AAA batteries that provide up to 48 hours of light.

"We are very pleased that Rayovac will be distributing these EvoLucia Lighting products," Bob Fugerer, president of Sunovia, said in a press release. "With Rayovac bringing them to market, Sunovia can focus its full attention on further developing our innovative solar and LED lighting technologies to fulfill our mission of helping the world achieve energy independence."

Spring Air enters Israel

with Dr. Gav agreement

Tampa's Spring Air Co. has moved into the $110 million Israeli bedding market by joining with retailer Dr. Gav (which in Hebrew means "back") to carry its Back Supporter Classic and Four Seasons line of beds in Dr. Gav's 14 retail showrooms throughout the country.

Initially, the beds will be built in Spring Air's New Brunswick, N.J., plant and shipped to Israel. However, Dr. Gav plans to open a state-of-the-art manufacturing center in Israel and will likely produce the Spring Air beds there. Plans call for Dr. Gav to represent the brand in the country and sell to other retailers as well.

Dr. Gav started its business in 1984 and its showrooms are in regional malls and retail strip centers. The company plans to add four to six more stores in 2009.

With more than 100 employees, Dr. Gav is a well-known and established name in Israel. It had been the largest Simmons dealer in the country, but dropped that line to carry Spring Air. Dr. Gav also has experience in growing market share for international brands, with its success with Lazy Boy, which now has a 35% market share in the country.

"We have found a great partner to work with in Israel," Spring Air acting chief executive officer Steve Cumbow, said in a press release. "They really understand the Back Supporter message - it's in their name, which makes for a super fit with our brand. This is a very exciting addition to our family of licensees. The bedding market in Israel is mature and dynamic, and they have one of the strongest consumer economies in the region. Having a presence in this Middle Eastern market was important to us."

Spring Air also signed an exclusive licensing agreement recently with T3 Athletic Recovery Products to produce and market the official mattress of Ironman. That line of mattresses is expected to hit retailers in early 2009.

Founded in 1926, The Spring Air Co. is one of the world's largest mattress manufacturing companies with more than 650 employees in nine locations in the United States, and three domestic and 20 international licensee facilities with 1,220 employees. Its well-known consumer brands include: Back Supporter Classic, Back Supporter Four Seasons, Nature's Rest and Chattam & Wells.

Roper lowers quarter projection,

adjusts full-year guidance

Sarasota-based Roper Industries Inc. has downgraded its financial projections for the fourth quarter of 2008. Its guidance to shareholders dipped ten cents from an expected diluted earnings per share of 83 to 86 cents to 73 to 76 cents.

Except for a two-cent per share debt extinguishment charge in the third quarter, diluted earnings per share for the year is expected to be between $3.03 and $3.06, still considerably better than the $2.68 per share it reported for 2007.

However, along with the more negative news, Roper officials expect the company will have more operating cash flow for the entire year up from $344 million in 2007 to at least $415 million.

"During the fourth quarter, we have experienced significantly lower demand in two business units within the Energy Systems and Controls Segment that provide instrumentation for refineries and sensors for process industries," Brian Jellison, Roper's chairman, president and chief executive officer, said in a press release. "Combined with unfavorable effects from foreign exchange, we expect earnings to be below our original expectations for the quarter. The balance of our businesses and segments continue to perform in line with previous expectations and are expected to generate stronger cash flow performance in the fourth quarter. Looking to 2009, despite the difficult business environment, we remain encouraged by the performance of most of our businesses."

Roper Industries provides engineered products several industries including for water, energy, radio frequency and research/medical applications.

Progress Energy, DEP agree

to close two coal power units

St. Petersburg-based Progress Energy Florida and the Florida Department of Environmental Protection reached an agreement to reduce in-air pollution emissions and to decrease Progress Energy's use of coal-fired power generation.

As part of the agreement, the company will retire the two oldest coal-fired units at the Crystal River Energy Complex in Citrus County after a new nuclear plant is built in Levy County. Retiring the two units will reduce the company's carbon-dioxide emissions by more than 5 million tons per year, which is the equivalent of removing more than 830,000 vehicles the roads.

"We are committed to providing our customers with clean, reliable and affordable electricity now and in the future," Jeff Lyash, president and chief executive officer of Progress Energy Florida, said in a press release. "As a significant player in an industry critical to addressing global climate change, we are taking action to significantly reduce our carbon emissions. This agreement will help us deliver on our promise to reduce emissions without sacrificing reliable and affordable electric service."

Under the agreement, Progress Energy Florida will retire its Crystal River Units 1 and 2 after the second unit at the Levy County site completes its first fuel cycle. Current plans call for the second unit to come online in the 2017 time frame and the first fuel cycle to be complete around 2020. A fuel cycle is the operating time between plant refueling outages, typically 18 to 24 months.

The agreement with the DEP also allows the company's $1.3 billion investment in air emission-reduction equipment to stay current despite uncertainty surrounding the federal Clean Air Interstate Rule. Progress Energy Florida will complete and operate the state-of-the-art air emission controls already under construction at its Crystal River Units 4 and 5. This equipment will reduce sulfur-dioxide and nitrogen-oxides emissions by 90% and mercury emissions by 80%.

The company's Crystal River Energy Complex, which includes four coal-fired units and one nuclear unit, is one of the largest generating facilities in the country. The complex is capable of producing 3,148 megawatts and serves the daily needs of more than half of the utility's customers. The complex features four coal-fired power plants and a nuclear unit that by itself has a generating capacity of 838 megawatts.

The first unit at the Levy County site is expected to come online in 2016 and be capable of generating 1,100 megawatts. The second unit is expected to be completed in 2017 and will also be capable of generating 1,100 megawatts.

Progress Energy Florida, a subsidiary of Progress Energy, provides electricity and related services to about 1.7 million customers in Florida.

Roskamp Institute identifies potential new Alzheimer's drugs

The Roskamp Institute in Sarasota reports that its researchers have uncovered a new link between inflammation and Alzheimer's disease and have identified a potential target for developing new treatments for the disease. The study, led by the Roskamp Institute's Pancham Bakshi, Ph.D., is detailed in the American Chemical Society's Chemical Biology Journal, an online publisher of peer-reviewed research.

Alzheimer's disease has been known to be accompanied by an inflammation, which both worsens and is caused by the underlying disease. In addition, it has been suggested that abnormal deposits of a small protein, known as amyloid, which accumulate in the brain of those afflicted by Alzheimer's disease, also trigger an inflammatory response, which harms and eventually destroys nerve cells.

Recent research at the Roskamp Institute shows that the inflammation can lead to the production of more amyloid, and researchers have found that a specific receptor on the nerve cell surface, known as CXCR2, is an interface between the inflammation and new amyloid production.

As specific inflammatory molecules contact CXCR2, a signal is generated which results in increased amyloid production. Essentially, the abnormally reproduces through the inflammatory response it triggers.

"I found that by genetically knocking out CXCR2, we can reduce the amount of amyloid in various laboratory models and, by using drugs that specifically block the CXCR2 receptor, we are able to show that a decrease in production of amyloid can be achieved," Bakshi said in a press release. "This study, which for the first time shows the early role of inflammation in AD, opens a new door for therapeutic intervention, potentially leading to the use of CXCR2 blocking agents as a way to treat both the inflammation and the amyloid production in Alzheimer's disease."

Bakshi is currently a scientist II in the Roskamp Institute and leads the Laboratory of Chemical Biology and Drug Discovery in Neurology.

The Roskamp Institute is a not-for-profit research institute dedicated to understanding the causes of, and finding cures for, neuropsychiatric and neurodegenerative disorders and addictions with an emphasis on Alzheimer's disease.

Brown & Brown subsidiary

buys Louisiana's Insurance 1

A subsidiary of Daytona Beach- and Tampa-based Brown & Brown Inc. purchased the assets of Insurance 1 Inc. of Alexandria, La. Insurance 1 generates annual revenue of $800,000 and focuses on selling health and life insurance in Louisiana.

Insurance 1's will operate as a specialty division of Brown & Brown's existing Lafayette, La. operation.

"This acquisition, along with the Alexander & Bolton acquisition, gives Brown & Brown initial annualized revenues of approximately $2 million in Alexandria and signifies Brown & Brown's solid commitment to the Alexandria community through its association with insurance professionals of the highest caliber and integrity," C. Roy Bridges, regional executive vice president of Brown & Brown, said in a press release.

Brown & Brown offers insurance and reinsurance products and services, as well as risk management, third party administration, managed health care, and Medicare set-aside services and programs.

Etc...

Lincare Holdings

joins NASDAQ Q-50 Index

The NASDAQ OMX Group Inc. has added Lincare Holdings Inc., a provider of respiratory therapy services for patients in their homes, to the NASDAQ Q-50 Index.

The Clearwater-based firm was one of 21 new stocks added to the index in its recent quarterly reassessment. The index is designed to track the performance of the 50 securities that will be in position to replace securities currently included in the NASDAQ-100 Index.

World Energy Solutions picks

firm to market its E-Clips

St. Petersburg-based electronics manufacturer World Energy Solutions Inc. has selected Hudson, Mass.-based Space Age Electronics Inc. to distribute, market and promote its "E-Clips" brand of recently developed transient voltage surge suppressors to the CCTV, fire and intruder alarm, telecommunications, and access control equipment sectors.

"These sectors have expanded rapidly in the past few years and the introduction of the new range of TVSS is designed to bring effective, long-life product to this continually growing multi-million dollar market," Ben Croxton, CEO of World Energy Solutions, said in a press release. "The distribution agreement gives our company access to a nationwide team of 70 technical representatives that will promote and sell our original and new TVSS product lines. We believe that our recent UL approval will add greatly to the appeal of our new line of products."

Bradenton Beauty and Barber

Academy picks Nuevo agency

The Bradenton Beauty and Barber Academy, with campuses in Bradenton and Sebring, has hired Nuevo Advertising Group, a Sarasota-based Hispanic marketing and advertising agency, as its agency of record for both English- and Spanish-language marketing programs.

Insurer Humana signs deal

with Intercoastal Medical Group

Sarasota's Intercoastal Medical Group and Louisville, Ky.-based Humana Inc. have reached a new contract that allows Humana's commercial members in Sarasota County to access to the medical group's more than 60 physicians.

Founded in 1993, Intercoastal Medical Group houses a group of physicians covering 18 specialties from seven locations in Sarasota and Manatee counties.

Hunt Warfield touts success of

multi-housing interest debt program

Hunter Warfield Inc., a Tampa-based debit collector, reports it has recovered more than a million dollars in additional funds owed to its clients due to a new program to collect interest on multi-housing debt.

The specially designed interest program, which Hunter Warfield describes as the first of its kind in the multi-housing industry, is a contributing force behind quicker collections because adding interest to delinquent accounts serves as an incentive for debtors to provide prompter payments.

Laws permitting interest charges have been in effect for years but vary by state and complying with the disparate state laws is difficult.

"Pay now or pay more is a powerful incentive," Stephen Sobota, chief executive officer of Hunter Warfield, said in a press release. "While other agencies are settling for just a portion of an account balance, Hunter Warfield is poised to collect the full amount. We have spent an enormous amount of resources in developing this program to increase payments and reduce collection fees for our clients. By combining our cutting-edge technology with a team of thoroughly trained professionals, Hunter Warfield is affording property owners and managers the opportunity to maximize their bottom line and the million dollars in additional revenue is just a start."

Diamondhead Casino site

granted two permit extensions

Largo-based Diamondhead Casino Corp. received two key extensions for its planned Mississippi casino. The Mississippi Commission on Marine Resources voted to grant a two-year extension of the Department of Marine resources permit through Aug. 10, 2010. Further the Hancock County Board of Supervisors approved the company's request for an extension of the Special Use District-Waterfront Gaming District Zoning for the 404-acre Diamondhead, Miss., property through Dec. 31, 2009.

NuFix and Nutech settle suit

with Minsurg, parent

Clearwater-based Minsurg Corp., along with its parent company, Orthopedic Development Corp agreed to a settlement in its patient infringement legal suit against Nutech Medical Inc., NuFix Inc., Kenneth Horton and Todd Gilbert.

Orthopedic Development claimed the design of its surgical Drill Guide that is used in Minsurg's TruFuse minimally invasive facet fusion procedures and systems was infringed up by the two companies and their principals.

The settlement calls for the dismissal of all claims, including Nutech's counterclaims. Pursuant to an injunction order, NuFix has discontinued sales of its current drill guide design and has agreed to pull its current drill guide design from the market.

Nutech and NuFix have also agreed to pay ODC an undisclosed amount. The remaining terms of the settlement are confidential.

marketers open Ericho Direct firm in Tampa

Public relations guru Eric Yaverbaum, who helped propel "Free Money" author Matthew Lesko to infomercial fame 27 years ago, has launched Ericho Direct, a direct response public relations agency, with longtime associate, magazine columnist and direct response veteran Raul Vazquez.

Yaverbaum and Vazquez's first major collaboration was on the launch of the Juiceman soon after they met nearly 20 years ago. They've also worked on the George Foreman Grill, Jack LaLanne's Power Juicer, Sonicare, Aloette Cosmetics, Home Shopping Direct, Focus Inc., Best in Beauty, Tae Bo and the Ab Roller.

"The goal of DRPR is to create public relations programs that cross the bridge to monetization and do so in a way that can be clearly measured through the cash register," Yaverbaum said in a press release. "Ericho Direct was created for businesses who want a PR firm that understands the direct response business model."

Also, Ericho Direct was recently named the agency of record for Mexico Alive, a company that educates the public about real estate opportunities in that country.

Phantom Entertainment opens online game store

Formerly Sarasota-based interactive game company Phantom Entertainment has launched its online game store, www.gamestore.phantom.net, as part of a strategic partnership with Tampa-based GameStreamer Inc.

Featuring a catalog of more than 2,600 PC games including Fallout 3 and Far Cry 2, the game store allows visitors to experience games before purchasing them. The Web site uses a specialized content licensing management system to track all games that are purchased, so once one is paid for and downloaded, the user owns the license forever and can use it again in the future without incurring additional costs.

GameStreamer reports it is working on such improvements as a streaming system, subscription support, rentals, timed trials and complete automations with its content and distribution partners.

Phantom has announced plans to reopen its downtown Sarasota office at 2033 Main St.

In addition, Phantom Entertainment has secured financing and placed an order with its contract manufacturer to mass manufacture the Phantom Lapboard, a specially designed, elevated, wireless keyboard and mouse. The units will be arriving this month and be available for purchase on the Web site.

Phantom Entertainment shipped its first small order of lapboards during the third quarter of last year and has since made improvements ― upgrading both the laser mouse and internal component hardware ― and reports it is ready for distribution and retail. The company has opened up a warehouse, logistics and distribution facility in St. Louis.

GameStreamer works with businesses to help them handle the digital distribution of video games and other media.

Beasley Broadcast, CEO buy back shares

Beasley Broadcast Group Inc., a Naples-based radio broadcaster, purchased 1.08 million shares of its common stock for a dollar per share in a private deal as part of its share repurchase plan. The shares will be held in the company's treasury for possible future use.

The company also reported that its chairman and CEO, George Beasley, also purchased 1.08 million common shares for a dollar a share.

The shares purchased by both the company itself and its CEO became available after a block trade of the company's shares was not completed by the purchaser.

In addition, the board of directors has suspended the payment of quarterly cash dividends on common stock.

"The canceled trade of approximately 9% of the company's outstanding shares presented an opportunity to act under our repurchase program at a time when we believe Beasley Broadcast Group shares are undervalued," Beasley said in a press release. "We will continue to manage the company with the goal of actively supporting initiatives to enhance shareholder value."

Beasley owns 70% of the shares of Beasley Broadcast Group.