Corporate Report

Corporate Report

by Sean Roth | Real Estate Editor

Chico's income grows 11.9% in December

Fort Myers-based Chico's FAS Inc. reported December sales results for the five-week period ended Dec. 30, 2006, increased 11.9% to $193.2 million, from $172.6 million for the prior year's five-week period ended Dec. 31, 2005. Comparable store sales for the company-owned stores decreased 2% for the same five-week period ended Dec. 30.

For the 48 weeks ended Dec. 30, 2006, total sales increased 15.8% to $1.52 billion from $1.31 billion for the same period a year ago. Comparable store sales for the company-owned stores increased 2.5% for the same period.

"Even though December's sales results were below our internal expectations, we have thus far been able to clear the bulk of the excess inventory related to these sales shortfalls through additional markdowns and expect to enter fiscal 2007 with little carryover merchandise," Scott Edmonds, president and CEO, said in a press release announcing the results. "While it's too early to know with any certainty the impact that fiscal January's performance will have on the overall quarter, we expect to continue to see markdown rates that are somewhat higher than in the past with gross margins for the fourth quarter expected to be in the 53% to 55% range."

Edmonds said that based on current overall same-store sales trends, as well as these projected gross margins, the company expect earnings per share to be in the $0.12 to $0.15 range for the fourth quarter. He said the company is encouraged by recent improvements in both number of transactions per store and units per transaction."

Edmonds pointed to changes in the senior level merchandising and marketing teams, the lack of debt and large level of cash on hand as evidence that the specialty retailer is well positioned for the future.

The company operates 907 women's specialty stores, including stores in 47 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico operating under the Chico's, White House | Black Market, Soma by Chico's and Fitigues names.

Kraft's Carsello retires, numerous officers change jobs

Naples-based construction firm Kraft Construction Co. Inc. has finalized a significant management restructuring. F. Fred Pezeshkan was appointed chairman of Kraft, succeeding long-time chairman Robert L. Carsello, and will continue to serve as chief executive officer. Carsello has announced his retirement from Kraft Construction after more than 50 years in the construction industry. He will continue to serve as vice chairman of the board of directors.

"Kraft Construction passes a milestone as Bob Carsello, my business partner and friend for nearly three decades, retires at the end of this year," Pezeshkan said in a press release. "...Bob has helped build an indelible legacy of fundamental core values on which the foundation of our company's success is based."

Other management changes:

• John Pinholster was promoted to president and will have company-wide responsibility for the strategic and financial direction of the company, customer satisfaction and client relations.

• Thomas E. Williams, executive vice president, will be directly responsible for administration of contracts and purchasing functions and will provide counsel to the president and CEO on business issues.

• P. Thomas Abraham, senior vice president, was promoted to chief operating officer. Abraham will oversee subcontractor relationships and will be responsible for the safety, timeliness, quality and budget control for all projects.

• Travis A. Coulter, Senior vice president, was promoted to chief pre-construction officer will direct and oversee all preconstruction activities company-wide.

• M. Philip Teige will remain as senior vice president and chief financial officer. Teige also oversees risk management, information technology and insurance.

• Robert A. Koenig and W. James Clemens were promoted to senior vice presidents and area managers. The two will have the responsibility for the financial operations for the Lee and Sarasota counties, respectively.

Kraft reported 2006 gross revenues of more than $650 million.

Lawsuit charges tribe, Hard Rock rigged bid

Baltimore-based The Cordish Co. and its affiliate Power Plant Entertainment, LLC are suing the Hollywood-based Seminole Tribe of Florida and the management of Hard Rock Cafe International (USA) Inc., charging that Hard Rock officials colluded with the tribe to rig the bidding for the restaurant and hotel/casino chain.

Power Plant Entertainment was the developer of the Seminole Tribe's two Seminole Hard Rock Hotels and Casinos that opened in 2004, and contends it was pivotal in securing the license of the Hard Rock brand for the Florida facilities, which includes the Seminole Hard Rock Hotel & Casino in Tampa.

London-based Rank Group announced Dec. 7 that the tribe had purchased the International Hard Rock brand for $965 million. The plaintiffs say that Rank shares have fallen more than 12% since the announcement, mainly on criticism that the company was selling the Hard Rock chain too cheaply.

The lawsuit charges that Hard Rock USA President and CEO Hamish Dodds and others began conspiring with the tribe months before Rank announced it would seek bids for Hard Rock in exchange for the tribe agreeing to keep Hard Rock USA management in place if it was the successful bidder.

The suite says that Cordish, Power Plant and its banker, Goldman Sachs & Co., sought to bid for the Hard Rock and were refused bid documents by Rank's banker Merrill Lynch, even though they were capable of offering more for the Hard Rock than the tribe ultimately paid.

The Cordish Co. is a developer of hotel, casino and retail/entertainment projects, several of which are anchored by Hard Rock Cafes, including in Baltimore, Louisville, Houston and elsewhere in Texas.

Several on Gulf Coast reach top 100 of golf communities

Travel & Leisure Golf magazine highlighted a number of the region's golf communities in its Top 100 Golf Course Communities list. Travel & Leisure Golf was looking for communities that featured steller golf courses along with "...homes and facilities of the highest quality, an extraordinary location and a wealth of lifestyle opportunities."

Communities were required to offer property owners an opportunity for membership in an affiliated private golf club. Communities were ranked based on the quality of the golf, housing, community amenities and activities, location and other topics, such as reputation ecology, tournament play, local celebrities or medical centers.

Here are the region's eight communities that broke the top 100:

• Bonita Bay, Bonita Springs

• The Concession Golf Club & Residences, Bradenton

• The Estates At Bay Colony Golf Club, Naples

• The Founders Club, Sarasota

• Grey Oaks, Naples

• Mediterra, Naples

• Tuscany Reserve, Naples

• Twineagles, Naples

Raymond James Financial COO joins board of SIFMA

Chet Helck, president and chief operating officer of St. Petersburg-based Raymond James Financial Inc. has been elected to the board of directors of the Securities Industry and Financial Markets Association for a two-year term.

He joins 34 other executives from the financial services industry as members of the inaugural board of SIFMA.

Helck began with Raymond James in 1989 as a vice president of business development for its independent contractor subsidiary. Following a period of significant growth under his leadership, he became president and chief operating officer of in February of 2002.

A graduate of West Virginia University Institute of Technology, the Securities Industry Institute at the Wharton School of Business and Harvard Business School's Leading Professional Service Firms Program, Helck has been dubbed, one of the "25 most influential people in and around the financial planning industry," by Investment Advisor magazine.

MIVA Inc. signs with Google ending Yahoo! ad deal

Fort Myers-based MIVA Inc. announced in an SEC filing that it has signed a two-year agreement with Google to use Google's WebSearch and AdSense Services for approved websites and applications. The website and applications were slated to be implemented within 30 days. Simultaneously, MIVA reported it was ending a deal with Yahoo!'s Go To Search Services as of Jan. 27.

In other news, MIVA has launched a European consumer entertainment division, MIVA Direct. MIVA Direct operates a portfolio of MIVA-owned consumer destination websites in the United States, for example screensavers.com, as well as a range of toolbars customized to include jokes, music, recipes and horoscopes. The company is focused on using its toolbars efforts to spearhead MIVA Direct's European launch.

"MIVA Direct's European launch underscores our continuing mix-shift into MIVA-owned traffic in order to lessen our reliance on third-party sources of traffic," said Peter Corrao, chief executive officer of MIVA in a press release. "In the third quarter of 2006, MIVA Direct recorded 22% of our company's total consolidated revenue or $9.4 million, an increase of 74% versus the comparable period in 2005. MIVA Direct ended the third quarter with over 7 million active toolbar users worldwide."

MIVA Direct's European operation will initially cover the United Kingdom, Germany, France, Spain and Italy. The business will be managed initially from MIVA's New York City office.

MIVA is an online advertising network, dedicated to helping businesses grow. The company delivers qualified leads to advertisers, helps maximize revenue for partners, facilitates commerce for online merchants and provides relevant information to customers.

Price Donoghue Ridenour moves, becomes PDR CPAs

Clearwater-based Price Donoghue Ridenour has changed its name to PDR Certified Public Accountants, released a new logo and moved to new offices.

The firm recently relocated across the street to an about 8,000-square-foot office at 29750 U.S. Highway 19 N., Suite 101, Clearwater from their much smaller office at 29605 U.S. Highway 19 N., Suite 140. The firm needed much of the additional space because of the its employee growth, particularly in the audit division.

Bill Price, managing partner, says the firm's emphasis on tax savings, such as research and development tax credits, are one of the reasons for the strong growth. Another is an increase in demand from nursing facilities and senior housing.

PDR provides services to a variety of businesses industries, including the construction and real estate industry, manufacturers and distributors and the healthcare industry.

Etc...

AirTran expands flights

AirTran Airways, a subsidiary of AirTran Holdings Inc. announced that starting this March the airline will offer an additional flight between Baltimore and Fort Myers.

Airline sales conference

The Computer Airline Sales and Marketing Association is finalizing its 2007 Spring Conference speakers and workshops agenda for March 26-28 in Tampa/Clearwater Beach. The proposed theme is: "Dynamic Distribution: Transforming Your Strategy." For more information or to submit a speaking proposal, contact via e-mail either Madeleine Gray or Wendy Ward, Co-Chairwomen of the CASMA Advisory Council on Conference Content at [email protected] or [email protected].

Webb on board of Federal Trust

Charles R. Webb has been appointed to the board of directors for Sanford-based Federal Trust Corp. Currently, Webb is chairman of Ernst & Webb, LLC, a consulting firm based in Naples and Cincinnati, specializing in merger integration for the banking industry. Webb was previously an executive vice president of Keefe, Bruyette & Woods, which specializes in the banking sector.

SkyValue offers new routes

Gary, Ind.-based SkyValue has started offering non-stop jet service from Gary Chicago International airport to St. Petersburg/Tampa Bay, Mesa/Phoenix, Las Vegas, and Orlando. Additional routes are expected soon.

Iverson's celebrates 50th

Iverson's Furniture, a pre-owned furniture retailer with two stores in Sarasota, is celebrating its 50th anniversary in 2007. The company opened its first store in 1957 at 2223 Bee Ridge Road, just east of U.S. 41, a location it still occupies. The second store opened in 1981 at 3224 Clark Road, on the corner of Clark and Lockwood Ridge roads.

Hal and Cheryl Iverson founded the store shortly after they moved to Sarasota from Lakefield, Minn. The store is currently owned by Mari Iverson Morton, the daughter of the founding couple, who originally inherited a portion of the business with her brother Rick in the late 1960s.

All Cad opens

All Cad Designs, a new Sarasota outsource drafting and design firm, has launched its services in affiliation with Vincent Tipsord Architects. The new service expansion will also include design, drafting and field measuring of existing home additions and plan remodels to the Sarasota and Manatee counties.

Margerison on board of IA Gobal

John Margerison has been appointed to Tampa-based IA Global Inc.'s board of directors and the merger and acquisition committee. Margerison is an Australian and serves on the board of several companies including, Australian Secured Financial Ltd. and affiliates, DJ Capital Holdings Limited and DJ Capital Solutions Limited.

IA Global, Inc. is a public holding company focused on acquiring primarily Asian Pacific companies that operate in the telecommunication and finance markets. The company owns 100% of Global Hotline Inc., which operates call centers and is a reseller of telephone and broadband lines and medical insurance in Japan. It also owns 36% of Australian Secured Financial Ltd., which raises funds through the issuance of debentures in Australia and provides short term loans for business or investment.

Dresser & Associates chosen

Dresser & Associates has been selected as a member of the National Partner Program, a program that provides a level of distinction for exceptional Sage Software business partners. The program is designed to reward and provide special recognition to the top 10 business partners based on product sales volumes achieved across all of Sage Software's mid-market product lines.

New Abel Band committee

At the December, 2006 Sarasota-based Abel Band shareholder meeting, Anthony Abate, Benjamin Hanan and Kenneth Doerr were elected to serve on the firm's 2007 executive committee. In addition, Jan Walters Pitchford was elected as the firm's managing shareholder, a position she previously held from 2000 to 2002.

Leetzow promoted

Mark Leetzow was promoted to the position of district manager for National City Mortgage. Leetzow joined National City Mortgage a year ago as sales manager for the Sarasota branch. In his new position, he will be responsible for Sarasota and Venice branches and Americo Mortgage, a mortgage partnership with a real estate brokerage company.