Corporate Report

Corporate Report

CORPORATE REPORT by Sean Roth | Real Estate Editor

General Dynamics awarded $6.1 million contract

The Indian Head, Md., Division of NAVSEA awarded St. Petersburg-based General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics, a $6.1 million contract for production of Disposable Fire Sets for use by explosive ordnance disposal personnel in combat operations.

General Dynamics Ordnance and Tactical Systems will produce 9,000 disposable wireless initiators and 400 encrypted transmitters for safe, secure initiation of explosives. The system is designed to be an additional tool to support the U.S. Armed Forces in defeating improvised explosive devices (IEDs) and clearing unexploded ordnance.

The contract is funded by the Joint IED Defeat Organization and administered by the U.S. Navy EOD Technology Division, which is responsible for development and acquisition of EOD equipment.

General Dynamics Ordnance and Tactical Systems has successfully completed first-article testing, with initial fielding scheduled to begin in early 2007.

DNAPrint Genomics test shows Thatcher not all British

Sarasota-based DNAPrint Genomics Inc.'s EuroDNA got a TV boost recently when it was used as an integral part of the British television reality program, "100% English." A recent episode of the program prompted speculation that Dame Margaret Thatcher, Baroness of Kesteven and former Prime Minister of Great Britain, may have Middle Eastern DNA. Thatcher's daughter, Carol Thatcher, was tested as part of the television program. It was found that Thatcher's DNA was 24% Middle Eastern in origin, with the remaining 76% Northwestern European.

"100% British" is a reality program in Great Britain that takes eight celebrities who believe that they are truly 100% British and then confronts them with the reality of their origins. EuroDNA is administered in combination with AncestryByDNA, which specifically measures "European" sub-ancestry. EuroDNA breaks the European ancestry into four groups and reports percentages for each: Northwestern European, Southeastern European, Middle Eastern and South Asian.

DNAPrint Genomics, Inc. is a developer of genomics-based products and services in two primary markets: biomedical and forensics. DNAPrint Pharmaceuticals Inc., a wholly owned subsidiary, develops diagnostic tests and theranostic products using the company's proprietary ancestry-informed genetic marker studies combined with proprietary computational modeling technology.

PSCU signs AT&T deal to move Phoenix data center

AT&T Inc. reached an agreement with St. Petersburg-based PSCU Financial Services to move the company's Phoenix-area data center to a larger facility. PSCU Financial Services is one of the nation's largest credit union services organizations, representing more than 500 credit unions. AT&T will assist PSCU to serve more than 10 million credit and debit cardholders.

PSCU Financial Services has previously used AT&T for dedicated voice and high speed networking services and managed internet services. PSCU has contracted AT&T to physically transport all racks, servers and routers from the old data center, fully reinstall the equipment, and complete the re-cabling required at PSCU's new facility.

Etc...

• Andrew D.W. Hill has been named co-manager of Naples-based Comerica Asset Management's All Cap Strategy. He also serves as a portfolio manager at Comerica's Wealth & Institutional Management office in Naples. Prior to joining Comerica in October 2006, Hill was a senior portfolio manager for Fifth-Third Bank in Naples.

• The ADP Group, Interior Design Studio, has been awarded the redesign and renovation of The Silver Cricket. The former Sarasota restaurant/bar has been purchased by Bradley and Higgins Gayheart, and will reopen as Horse Feathers Grill and Lounge. The Gayhearts have been working closely with the ADP design team to create a sophisticated, but comfortable atmosphere to meet for drinks, light casual dining, or a full dining experience. Horse Feathers Grill and Lounge is scheduled to open in Dec. 2006.

• Living Independently Group Inc., maker of the QuietCare, a unique monitoring system, has appointed Telemetry Systems Inc., a Sarasota-based systems integrator and provider of home and business security solution, as a National Master Distributor for QuietCare. QuietCare allows caregivers to monitor the condition and safety of seniors under their care around the clock.

• Pfizer Inc. has deployed Tampa-based Pilgrim Software Inc.'s SmartAudit at its New York City headquarters. The fully automated solution will be used throughout Pfizer Corp.'s regulatory compliance function, enabling Pfizer to manage regulatory and quality audits, improve visibility into client processes, and attain long-term strategic goals and objectives. These groups, all within Pfizer's Legal Division, plan to use SmartAudit to facilitate legal audits impacting clinical studies, manufacturing operations, environment, health and safety, regulatory and quality assurance, and other key processes.

• The Fort Myers real-estate brokerage Gates D'Alessandro & Woodyard LLC is moving to larger space on the first floor of the Palm Terrace Professional Center at 7051 Cypress Terrace, in Fort Myers. The new location is directly on U.S. 41 near a Mercedes dealership.

"Due to our merger, we were looking for a strategic central location, additional parking, and larger office space..." says Tom Woodyard, a partner, Gates D'Alessandro & Woodyard.

• Linda Meadows has been promoted to director of management services of Central and South Florida for Advantis Real Estate Services Co. In her new role, Meadows will supervise the property management operations for more than 4 million square feet in the Tampa, Orlando and South Florida markets. Meadows has been with GVA Advantis since 1992, most recently served as area manager for Tampa and South Florida, where she oversaw the management of 2.8 million square feet of assets.

• Naples-based ASG, a software and professional services provider announced its ASG-Zena, a distributed workload scheduling and automation solution, has been given integration validation with Oracle's PeopleSoft Enterprise Applications via the Oracle PartnerNetwork Application Integration Initiative. ASG is a Certified Partner in Oracle PartnerNetwork.

• Raleigh, N.C.-based RBC Centura Bank has opened its fourth office in Bradenton in the Lakewood Ranch master planned community. RBC Centura will open another office this month in Suwanee, Ga. In addition to expanding in areas where RBC Centura already has a long-term presence, the bank earlier this month acquired 39 AmSouth Bank banking centers in Alabama, a new market for the bank. In August, RBC Centura also added 17 banking centers to the RBC Centura Atlanta-area network of banking centers through its acquisition of Flag Financial Corp. and Flag Bank.

• The Bradenton breakfast-and-lunch restaurant chain First Watch, has opened its third location in Cleveland. The 3,500-square-foot restaurant in the Cedar Center is designed to seat about 130 guests. The other two Cleveland locations are in Westlake and Rocky River. With 22 locations in Ohio, First Watch is the country's largest privately held, daytime-only restaurant company. The chain has other locations in Arizona, California, Kansas, Kentucky, Florida, Oklahoma, Missouri, and West Virginia. 

• The Ed Klopfer Schools of Real Estate has announced a joint venture with the Tampa-based The Landlord Academy. The school, which offers classes at 15 separate locations, from the Panhandle to Naples will offer Landlord Academy courses.

• Tommy Klauber, treasurer of the Sarasota-Manatee Originals and Chef/owner of Pattigeorge's Restaurant on Longboat Key, was voted to serve on the International Culinary Tourism Association's Board of Directors for the 2006-2008 term.

• Sarasota-based furniture wholesaler and retailer Decor Direct is selling its 2542 17th St. building in Sarasota and moving to a building nearby, at 2387 Industrial Blvd. that will triple its size.

• Canton, Mass.-based Casual Male Retail Group, retail brand operator of Casual Male XL and Rochester Big & Tall, has opened a new Casual Male XL store in Tampa at 8015 Citrus Park Drive. Casual Male XL caters to men who are 6' 2" or taller with waistlines 42" or bigger. The store is the second Casual Male XL location in Tampa.

• Naples-based Orion Bank opened a new banking center at 2225 1st St. in downtown Fort Myers.

"The downtown Fort Myers area is experiencing a tremendous revitalization thanks to a number of new residential and commercial developments," Greg Barr, Area President or Orion Bank Lee County Operations, says in press release announcing the opening.

• Former coach and college basketball analyst Dick Vitale has been selected as the Sarasota Area Sports Authority's 2006 Sports Person of the Year. Vitale, a longtime Sarasota resident was honored at the SASA Diamonds on the Diamond fundraising event Nov. 11 at Ed Smith Stadium.

• Naples-based Demand Technology Software, Inc. has released version 3.0 of Performance SeNTry, a Windows performance management tool. The Performance SeNTry software has been changed to provide additional intelligent data collection and reporting for the Windows x64 platform along with other changes.

• Ron McCaslin has been named president of Jim Walter Homes Inc. Charles Cauthen, who had previously served as president of Jim Walter Homes and interim president of Mid-State Homes, has been named chief financial officer of a new legal entity, Jim Walter Homes Holding Company, LLC, established by Tampa-based Walter Industries to include its Homebuilding and Financing group.

McCaslin previously served as president of Stratford Homes, a Wisconsin-based modular home and commercial builder. Prior to that, McCaslin was president/chief operating officer for the manufacturing division of American Homestar, a manufactured homebuilder with approximately $400 million in sales. He also held executive positions with Fleetwood Homes, as well as with companies in the commercial appliance and equipment industry.

• Tampa-based Walter Industries Inc.'s board of directors approved a two-for-one split of the company's common stock. Additional shares issued as a result of the stock dividend will be distributed after the close of trading Dec. 14, 2006, to shareholders of record on Dec. 6, 2006.

• Gold Coast Eagle Distributing the Sarasota-based Anheuser-Busch and Modelo/Corona distributorship, was presented with The Greater Sarasota Chamber of Commerce's Excellence in Customer Service Award. The Greater Sarasota Chamber of Commerce presents the award to a company or organization each month in recognition of its quality service and commitment to the community under the Chamber's Code of Ethics.

• St. Petersburg's H3Enterprises Inc. reported that the H3TV, a specialized flatscreen designed specifically for video gaming users, will be featured at this year's SpikeTV Video Game Awards on Dec. 9. The two-hour event will be televised live on SpikeTV and will be hosted by Samuel L. Jackson, with an A-List of presenters and performers. H3TV is a multi-functional computerized LCD TV offers extremely high resolution (1080p) and also offering simultaneous gaming competitions on the same screen.

Third Quarter

Gulf Coast companies report results

Gerdau Ameristeel revenue jumps, net income for nine months up

Tampa-based Gerdau Ameristeel Corp. reported net income of $96 million ($0.31 per diluted share) on net sales of $1.2 billion for the three months ended Sept. 30, 2006, compared to net income of $62.2 million, or ($0.20 per diluted share), on net sales of $999.3 million for the three months ended Sept. 30, 2005.

For the nine months, Gerdau Ameristeel reported net income of $309.3 million, ($1.01 per diluted share) on net sales of $3.4 billion a jump of 43.8% for a net income of $215.1 million ($0.70 per diluted share) on net sales of $3.0 billion for the nine months ended Sept. 30, 2005.

During the most recent three months, the company stopped operations of the melt shop at its Perth Amboy, N.J., wire rod mill. The company reported that action resulted in a charge of $41.8 million against that quarter's earnings.

Excluding joint ventures, the company shipped 1.7 million tons of finished steel in the three months, a decrease of 1% over the same three months last year. Average mill prices increased $90 per ton, or 17.9%, compared to the three months last year. Scrap raw material costs increased $42 per ton, or 26.2%, compared to in the quarter to last year. Mill manufacturing costs were $249 per ton for the three months compared to $240 per ton for the three months ended Sept. 30, 2005, primarily due to higher scrap costs.

GERDAU AMERSTEEL Consolidated Statement of Operations (In thousands, except earnings per share)

For the Three Months Ended For the Nine Months Ended

Sept. 30, Sept. 30,

2006 2005 2006 2005

Net sales $ 1,160,050 $999,286 $ 3,425,070 $ 2,962,900

Operating income 124,442 98,411 402,668 295,758

Net income 95,985 62,208 309,276 215,105

EPS - Diluted $0.31 $0.20 $1.01 $0.70

Average shares

outstanding (000's) 305,214 304,330 304,883 304,226

BALANCE SHEET ($000's except share price)

Sept. 30, Dec. 31,

2006 2005

Working capital $ 1,091,635 $ 1,115,579

Total debt 433,666 530,345

Book value 1,827,632 1,584,019

Market capitalization 2,787,030 1,717,219

SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION

For the Three Months Ended For the Nine Months Ended

Sept. 30, Sept. 30,

2006 2005 2006 2005

Production Tons Tons Tons Tons

Melt Shops 1,751,565 1,458,133 5,153,852 4,641,447

Rolling Mills 1,716,506 1,439,824 4,917,344 4,529,691

Finished Steel

Shipments Tons/% Tons/% Tons/% Tons/%

Rebar 402,310/24 425,644/25 1,173,710/23 1,144,080/24

Merchant/Special 765,120/46 816,522/49 2,438,399/48 2,330,405/48

Rod 208,885/12 159,805/10 587,064/12 550,855/11

Fabricated Steel 293,599/18 278,290/16 870,593/17 810,019/17

Total Shipments 1,669,914/100 1,680,261/100 5,069,766/100 4,835,359/100

Selling Prices $/Ton $/Ton $/Ton $/Ton

Mill external shipments 592.48 502.66 571.10 517.90

Fabricated steel shipments 762.28 681.66 749.99 699.84

Scrap Charged 202.89 160.72 197.02 175.96

Metal Spread (selling price less scrap)

Mill external shipments 389.59 341.94 374.08 341.94

Fabricated steel shipments 559.39 520.94 552.97 523.88

Mill manufacturing cost 249.19 240.49 t 244.14 236.43

Operating Income 74.52 58.57 79.43 61.17

GERDAU AMERISTEEL CORP. AND SUBSIDIARIES Consolidate Statement of Earnings

($ in thousands, except earnings per share data)

(Unaudited)

For the Three Months Ended For the Nine Months Ended

Sept. 30, Sept. 30,

2006 2005 2006 2005

Net sales $ 1,160,050 $999,286 $ 3,425,070 $ 2,962,900

Operating expenses 1,035,608 900,875 3,022,402 2,667,142

Income from operations 124,442 98,411 402,668 295,758

Earnings from joint ventures 39,641 13,064 103,018 68,147

Net income $95,985 $62,208 $309,276 $215,105

Earnings per

common share -diluted $0.31 $0.20 $1.01 $0.70

Source: Gerdau Ameristeel Corp

Reptron Electronics still in red, loses $1.4 million

Reptron Electronics Inc., a Tampa-based electronics manufacturing services company, reported third quarter 2006 net sales of $36.4 million, an 11.8% increase from the same period a year ago, and a 2.8% increase from the second quarter of 2006. The company recorded a third-quarter net loss of $1.4 million ($0.29 per diluted share) compared to a $1.2 million loss, ($0.24 per diluted share) in the same period a year ago.

For the nine months ended Sept. 30, 2006, net sales totaled $108.7 million, a 6.7% increase from the first nine months of 2005. The company recorded a net loss during the first nine months of 2006 totaling $3.7 million ($0.73 per diluted share) versus a $14.5 million net loss ($2.89 per diluted share) during the first nine months of 2005, which included a charge of $10.1 million.

"Our gross margins continue to be negatively impacted by start-up costs incurred while ramping up new customer projects," Paul J. Plante, Reptron's president and chief executive officer said in a press release announcing the results. "We are working with these customers to reduce project costs and adjust pricing while we exit the start-up phase ... Our plan to reduce operating expenses continues to show results as SG&A expenditures declined over 20% in the third quarter and over 13% year to date when compared to the same periods during 2005."

REPTRON ELECTRONICS, INC. Consolidate Statement of Operations

(In thousands, except share and per share data) (Unaudited)

Three Months Three Months Nine Months Nine Months

Ended Ended Ended Ended

Sept. 30, 2006 Sept. 30, 2005 Sept. 30, 2006 Sept. 30, 2005

Net Sales $36,434 $32,579 $108,691 $101,861

Cost of goods sold 33,263 28,457 98,144 90,324

Gross profit 3,171 4,122 10,547 11,537

Selling, general and

administrative expenses 3,646 4,615 11,399 13,152

Operating loss (475) (493) (852) (11,687)

Other expense:

Interest expense, net (971) (856) (2,829) (2,560)

Total other expense, net (971) (856) t (2,819) (2,566)

Loss from continuing operations (1,446) (1,349) (3,671) (14,636)

Net loss $(1,442) $(1,178) $(3,667) $(14,465)

Net loss per common share

basic and diluted: $(0.29) $(0.24) : $(0.73) $(2.89)

CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited)

Sept. 30, 2006 Dec. 31, 2005

CURRENT ASSETS

Cash and cash equivalents $52 $230

Restricted cash 500 740

Account receivable - trade, net 16,185 17,990

Inventories, net 25,402 21,378

Prepaid expenses and other 614 1,266

Total current assets 42,753 41,604

Property, plant & equipment -net 17,056 18,937

Goodwill, net 2,100 2,100

Other intangible assets, net 2,761 3,230

Deferred income tax 1,543 1,543

Other assets 26 83

Total assets $66,239 $67,497

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Accounts payable - trade $19,789 $15,008

Accrued expenses 4,040 5,613

Note payable to bank 13,346 13,900

Current portion of long-term obligations 428 315

Total current liabilities 37,603 34,836

Source: Reptron Electronics Inc.

Ablest Inc. net income grows 7% in quarter, down year-to-date

Ablest Inc. of Tampa reported its net income for the fiscal third quarter ended Oct. 1, 2006 increased 7.9% to $396,000 ($0.13 per diluted share) compared to $367,000 ($0.13 per diluted share) for a similar period last year. Revenues were $34.7 million compared to $34.9 million in the 2005 third quarter.

For the first 40 weeks of fiscal 2006 revenues increased 6.5% to $104.9 million from $98.5 million in the corresponding 39-week period of the prior year. But net income for the 40 weeks declined 16.7% to $1 million ($0.35 per diluted share) compared to $1.2 million ($0.41 cents per diluted share) for the 39 weeks ended Sept. 25, 2005. The company attributed the decline to additional sales and general and administrative expenses stemming from new offices and sales staff.

ABLEST INC. Condensed Statements of Income (amounts in thousands except share and per share data) (Unaudited)

Thirteen Forty Thirty Nine

Week Week Week

Periods Ended Period Ended Period Ended Period Ended

Oct. 1, Sept. 25, Oct. 1, Sept. 25,

2006 2005 2006 2005

Net service revenues $ 34,672 $ 34,873 $ 104,876 $ 98,459

Cost of services 28,491 29,107 86,642 81,974

Gross profit 6,181 5,766 18,234 16,485

General [admin] expenses 5,528 5,177 16,545 14,541

Operating income 653 589 1,689 1,944

Net income $396 $367 $1,029 $1,205

Diluted net per common share $0.13 $0.13 $0.35 $0.41

CONDENSED BALANCE SHEET (amounts in thousands except share data)

(Unaudited)

Oct. 1, 2006 Dec. 25, 2005

CURRENT ASSETS

Cash and cash equivalents $4,251 $1,931

Accounts receivable, net 16,301 18,760

Prepaid expenses and other current assets 704 469

Current deferred tax asset 1,017 1,246

Total current assets 22,273 22,406

Property and equipment, net 2,661 1,732

Deferred tax asset 867 863

Goodwill 1,283 1,283

Other assets 63 171

Total assets $ 27,147 $ 26,455

CURRENT LIABILITIES

Accounts payable $203 $841

Accrued insurance 2,417 2,536

Accrued wages 2,948 2,738

Other current liabilities 518 514

Total current liabilities 6,086 6,629

Other liabilities 265 432

Total liabilities 6,351 7,061

Source: Ablest Inc.

Teltronics sales virtually stagnate, net income tanks 85%

Sarasota-based Teltronics Inc. reported that its net income for the three months, ended Sept. 30, 2006 was $495,000 ($0.04 per diluted share) fell 85.8% compared to $3.48 million ($0.32 per fully diluted share) in 2005. Net income for the three months ended Sept. 30, 2005 included a $3.96 million gain on extinguishment of debt. Net income for the nine months declined 84.5% to $690,000 ($0.02 per fully diluted share) compared to a net income of $4.44 million ($0.36 per fully diluted share) for the same period in 2005.

The company's sales for the three months were up 13.3% to $12.22 million, compared to $10.79 million reported for the same period in 2005. Sales for the nine months increased 1.5% to $34.01 million, as compared to $33.52 million for the same period in 2005. The gross profit margin for the three months ended Sept. 30, 2006 was 41.5% as compared to 40.1% for the same period in 2005. Gross profit margin for the nine months ended Sept. 30, 2006 dipped slight to 41.6%, compared to 42.3% for the same period in 2005.

Operating expenses for the three months ended Sept. 30, 2006 were $4.13 million, compared to $4.54 million for the same period in 2005. Operating expenses for the nine months ended Sept. 30, 2006 were $12.40 million, down from $13.26 million for the same period in 2005. Interest costs for the three months were $470,000, almost double the $241,000 recorded in the same period in 2005. Interest costs for the nine months ended Sept. 30, 2006 were $1.08 million, as compared to $984,000 for the same period in 2005.

TELTRONICS, INC. AND SUBSIDIARIES Condensed, Consolidated Statement of Income In thousands, except shares and per share amounts (Unaudited)

INTEREST INCOME

Three Months Ended Nine Months Ended

Sept. 30, Sept. 30,

2006 2005 2006 2005

Product sales and installation $9,034 $7,599 $23,969 $24,011

Maintenance and service 3,183 3,186 10,036 9,510

TOTAL 12,217 10,785 34,005 33,521

Cost of goods sold 7,143 6,457 19,867 19,328

Gross profit 5,074 4,328 14,138 14,193

Operating expenses:

General and administrative 1,383 1,549 3,750 4,218

Sales and marketing 1,722 1,836 5,595 5,571

Research and development 958 1,039 2,800 3,044

Depreciation 65 120 253 431

TOTAL 4,128 4,544 12,398 13,264

Income (loss) from operations 946 (216) 1,740 929

OTHER INCOME (expense):

Interest (470) (241) (1,084) (984)

Other 22 3,958 57 4,519

TOTAL (448) 3,717 (1,027) 3,535

Net income per diluted share $0.04 $0.32 $0.02 $0.36

CONDENSED, CONSOLIDATED BALANCE SHEET

In thousands, except shares and per share amounts (Unaudited)

ASSETS

Sept. 30, Dec. 31,

2006 2005

Cash and cash equivalents $1,059 $1,150

Accounts receivable 8,491 6,568

Costs and estimated earnings in excess of

billings on uncompleted contracts 214 418

Inventories, net 5,391 5,970

Other current assets 736 953

Total current assets 15,891 15,059

Property and equipment, net 778 967

Other assets 846 954

Total assets $17,515 $16,980

LIABILITIES AND SHAREHOLDERS' DEFICIENCY

Line of credit $5,479 $5,112

Current portion of long-term debt and capital lease obligations 819 855

Accounts payable 5,527 5,630

Deferred dividends 1,400 ---

Other current liabilities 4,101 3,788

Total current liabilities 17,326 15,385

Source: Teltronics, Inc.