Corporate Report

Corporate Report

by Sean Roth | Associate Editor

Radiation Therapy agrees to $18 million acquisition

Radiation Therapy Services Inc., a Fort Myers-based operator of radiation therapy centers, signed an agreement to acquire a radiation therapy treatment center in Salisbury, Md., for about $18.6 million, including $2.5 million in assumed debt. The acquisition is currently scheduled to close on July 2.

This freestanding facility treats about 30 patients a day with a single linear accelerator. The facility focuses on intensity-modulated radiation therapy and image-guided radiation therapy programs. Total annual revenues at the Salisbury facility are about $6.5 million. The acquisition will be financed by the Radiation Therapy Services' existing revolving credit.

"We are excited by this opportunity to expand our presence in the Delmarva Peninsula and to convert a hospital-based practice to a freestanding facility consistent with our strategy for market penetration," Dr. Daniel Dosoretz, president and CEO, said in a press release. "This facility already enjoys a successful physician practice with strong IMRT utilization, providing the opportunity for continued growth in this important market. Further, we have replaced the existing management agreement with Peninsula Regional Medical Center with this acquisition which will allow us to bill global revenue."

In other company news, Radiation Therapy Services appointed Janet Watermeier to its board of directors. Watermeier filled the vacancy created by the death of James Charles Weeks in January.

The appointment brings the total number of independent directors to five and returns the company to full compliance with NASDAQ's Marketplace Rules. Watermeier is currently the president of Watermeier Property Services LLC, a Fort Myers-based consulting and real estate resources firm.

Radiation Therapy's 80 treatment centers are clustered in 16 states.

Fleming's up, others down

Tampa-based OSI Restaurant Partners Inc. reported a month of declining comparable store sales for May, excluding its Fleming's brand.

The four-week period, ended May 26, also yielded lower average unit volumes for all of the restaurant group's franchises. The OSI Restaurant Partners Inc. restaurant system operates in 50 states and 20 countries internationally. Below is a chart for the franchise and company-owned, development joint ventures and system-wide for the four-week period ended May 26, 2007.

Company- Franchise

Domestic Comparable store sales owned JVs Systemwide

Outback Steakhouses -1.3% -2.1% -1.4%

Carrabba's Italian Grills -2.1% N/A -2.1%

Bonefish Grills -2.2% 1.9% -2.0%

Fleming's Steakhouse 1.2% N/A 1.2%

Roy's -0.9% N/A -0.9%

Domestic average unit volumes

Outback Steakhouses -1.2% -2.7% -1.4%

Carrabba's Italian Grills -3.0% N/A -3.0%

Bonefish Grills -4.2% -3.0% -3.9%

Fleming's Steakhouse -2.0% N/A -2.0%

Roy's -2.9% N/A -2.9%

Solomon appeals decision over patent infringement

Tarpon Springs-based Solomon Technologies Inc. has appealed the final determination of the U. S. International Trade Commission regarding Solomon's claim of patent infringement against Toyota Motor Corp. and certain affiliates to the Court of Appeals for the Federal Circuit in Washington, D.C. The Commission ruled April 30 that there was no violation of Section 337 of the Tariff Act of 1930, as amended.

Solomon brought suit against Toyota Motor Corp and certain affiliates on Sept. 12, 2005, claiming infringement of Solomon's technology used in the Hybrid Synergy Drives in Toyota's Prius and Highlander Hybrid vehicles.

"We were clearly surprised by the initial determination by the Administrative Law Judge and, after careful consideration, we have concluded that there were serious errors made in interpreting the pertinent patent law and precedents in this case leaving us no option but to appeal the case to a court with particular expertise in this field," Gary G. Brandt, Solomon CEO, said in a press release.

"We believe that the CAFC is the appropriate forum by which to establish the proper interpretation of our patent claims and to provide us with future options to pursue full and fair remedies at either the ITC or the Federal Court in Florida."

On Jan. 11, 2006, Solomon filed an additional complaint against Toyota with the ITC seeking to exclude importation of vehicles. The action against Toyota and its affiliates in the U. S. District Court for the Middle District of Florida, Tampa Division, has been stayed pending resolution of the ITC action.

Solomon Technologies Inc., through its motive power and power electronics divisions, develops, licenses, manufactures and sells precision electric power drive systems.

Kesselring goes public, adds $1.5 million in capital

Kesselring Corp. has gone public through a reverse merger with Offline Consulting Inc. (OFLC.OB). Simultaneous to the reverse merger, the company received a $1.5 million private investment. Proceeds will be used for acquisition financing, accounting systems integration, professional advisor services, and working capital.

Kesselring Corp. is a 31-year-old restoration, construction and construction-related products company.

"Access to public markets will accelerate opportunities for continued growth both organically through enhancement of existing companies and through future acquisitions," Ken Craig, CEO, said in a press release. "Kesselring's strategy is to coordinate a One-Stop Resource for construction and restoration projects in Florida and the state of Washington."

The officers of Kesselring are Craig; Laura Camisa, CFO; and Cliff Wildes, COO. Kesselring Corp. is the parent company of several subsidiaries, including Kesselring Restoration Corp., Kesselring Coastal Construction Corp. and 1st Aluminum Corp.

The stock is currently trading on the Over the Counter Bulletin Board under the symbol OFLC.OB, but company officials plan to change the symbol soon to more closely reflect the Kesselring name.

HSN, Hear Music to promote McCartney

St. Petersburg retailer HSN teamed with Hear Music to produce a Paul McCartney Listening Party television special to celebrate the upcoming release of Paul McCartney's latest album, Memory Almost Full. The 30-minute program featured cuts from the new CD, discussions with McCartney fans and video segments from Paul McCartney aired May 30 and 31.

The first new studio album from McCartney in nearly two years, Memory Almost Full is also the inaugural CD release from Hear Music, the record label formed between Starbucks Entertainment and Concord Music Group.

HSN was promoting/selling a deluxe limited edition set, which included Memory Almost Full, three bonus tracks and a special audio commentary from McCartney.

Retired hotelier joins eSuites Hotels

Bryan D. Langton has joined Clearwater's eSuites Hotels, a new concept hotel brand that is scheduled to launch later this year, as vice chairman. He will advise the corporate culture design and implementation, brand launch design, brand management, marketing and PR, corporate budgeting and other corporate functions.

Langton is the former chairman, president and CEO of Holiday Inns Inc., responsible for supervising all worldwide operations and launching the Holiday Inn Express brand. He negotiated the 1990 purchase of Holiday Inns Inc. by Bass PLC, and prior to his retirement from the company in 1996, initiated merger discussions between Bass and InterContinental Hotel Group.

During his tenure at Bass, he also served as chairman of Crest Hotels, chairman of Toby Restaurants and chairman and CEO of Holiday Inns International in Europe. Previously, Langton was chairman of the board of Fairfield Communities, a publicly held vacation ownership company, and was responsible for the company's sale to Cendant Corporation.

Langton serves on the board of directors of Bass PLC and is a former external director of Wachovia Bank Georgia and former director of National Service Industries.

Insurance consultant Ellis joins eAutoclaims

Tim Ellis has joined eAutoclaims, an Oldsmar-based managed collision repair service and insurance claims processing technology company, as the vice president of sales and marketing. Ellis will be leading the marketing and sales efforts with eAutoclaims direct sales channel and recent strategic partnership with Mitchell International.

NCircle Entertainment gains distribution deal

NCircle Entertainment entered into an exclusive multiyear distribution partnership with Granada International, one of Europe's top television distribution companies. The new venture names NCircle the exclusive home entertainment distributor for the award-winning animated children's series Pocoyo to the United States.

Written by Ken Scarborough and Andy Yerkes, the series is co-produced by Granada International and Zinkia Entertainment, in association with Granada Kids and Cosgrove Hall Films. Pocoyo uses 3-D CGI and XSI animated production technology to create show aimed at children under five.

Pocoyo is sold in more than 100 countries such as Canada, U.K., Germany, Italy, France, Spain, Sweden, Norway, Portugal, Japan, Australia, New Zealand, South Africa and in a number of countries in the Middle East. The series, which currently includes 104 seven-minute episodes, was the recipient of the top TV Production Award at last year's Annecy International Film Festival.

NCircle Entertainment is an Alliance Entertainment Corp. division, which is a subsidiary of Bonita Springs-based Source Interlink Cos.

Inc.

Health Management names CEO

Naples-based Health Management Associates Inc. promoted Burke W. Whitman, 51, to CEO, effective June 1, 2007. Whitman joined the company in January 2006 as president and COO. He will now serve as president and CEO. Prior to joining Health Management Associates Inc., Whitman was executive vice president and CFO for a major hospital company. He also served as a colonel in the U.S. Marine Corps Reserve and served on active duty in Iraq in 2005. The board of directors has also appointed Whitman to serve as a board member.

Joseph V. Vumbacco, 61, has served as HMA's CEO for more than six years. Vumbacco will continue as vice chairman and will assume new responsibilities, including consulting on construction projects, legal issues and governmental relations.

HMA currently operates 61 hospitals in 16 states.