Corporate Report

Corporate Report

by Sean Roth | Real Estate Editor

Walter Industries to separate businesses

Tampa-based Walter Industries Inc. announced plans to start separating its financing and homebuilding businesses from its core natural resources development businesses.

The company recently amended its 2005 Walter Credit Agreement, increasing the revolver from $225 million to $475 million. Some $220 million of available funds were used to repay and terminate the Mid-State Trust IX and Trust XIV mortgage warehouse facilities, which were due to mature in July and October.

With the warehouse facilities now repaid and terminated, the company has unencumbered mortgage assets of more than $330 million and is no longer reliant on the availability of the mortgage warehouses or asset-backed securities market.

In addition, Walter Industries announced that the credit agreement amendment allows the planned separation of its financing and homebuilding businesses.

The company continues to work with its tax, legal and investment banking advisors on structures for the separation, which is expected to occur by the end of the year.

The company also said that the Walter Mortgage Co. would no longer provide customers of Jim Walter Homes with mortgage financing. However, the backlog of homes with signed contracts and those under construction that will be completed over the next six to nine months will be financed by Walter Mortgage Co.

Jim Walter Homes is transitioning to a third-party financing model including the use of government-sponsored loan programs. Walter Mortgage Co. will continue to service its existing $1.8 billion portfolio.

Along with its financing and affordable homebuilding businesses, Walter Industries is a producer and exporter of metallurgical coal, steam coal, coal-bed methane gas, furnace and foundry coke and other related products.

+ Quantum Immunologics

testing cancer vaccine

Tampa-based Quantum Immunologics Inc. has started clinical trials to assess the safety and effectiveness of a new anti-cancer vaccine/immunotherapy to be used to treat patients with advanced breast cancer.

Patients in the study have previously failed to respond to conventional therapies such as surgery, radiation and/or chemotherapy.

QI has commissioned the study to be done by the original immunobiologists who developed the experimental immunotherapy. The clinical trial will be part of an FDA-authorized, effective, investigator-sponsored, new drug application.

This immuno-therapeutic experimental vaccine, developed by scientists at the University of South Alabama, is intended to activate the body's immune system against a cancer-specific protein to destroy the cancer cells.

The investigators will draw a white blood cell population called Dendritic Cells from each patient. Those cells will then be exposed in vitro to replicated iLRP, cultured and reintroduced into the patient via subdermal injection.

The hypothesis of the study is that iLRP-sensitized DC will then recognize iLRP as a foreign protein or antigen on cancer cells and, when reintroduced into the body, will alert another group of immune cells known as T-killer lymphocytes to the iLRP protein. Once these killer cells are activated against the iLRP protein on the cancer cells, it is further hoped that they will overwhelm and destroy the patients' breast cancer.

In a previous study recently undertaken in Austria, 11 advanced, renal cell carcinoma patients who failed conventional therapy were treated with this immunotherapy.

+ MIVA hires Perot Systems

for ad management services

MIVA Inc. in Fort Myers is taking steps to upgrade its ad management system. In an SEC filing, MIVA reports that it signed a new $2.4 million software development contract with its outsourcing partner Perot Systems Inc. MIVA agreed to pay Perot to develop a new global advertising and distribution partner application called the Transformation Project. Its goal will be to create a consolidated global system to replace MIVA Media's existing Internet advertising management and distribution partner management systems.

+ NeoGenomics settles

US Labs staff poaching case

Fort Myers-based NeoGenomics Inc. has signed a settlement agreement and release with Accupath Diagnostics Inc., which is owned by and operates as US Labs. NeoGenomics and three of its officers - Robert Gasparini, Gary Roche and Douglas White - were sued by US Labs on October 26, 2006.

US Labs alleged in a Los Angeles Superior Court that NeoGenomics had engaged in "unfair competition" by having access to the salary of four, recently hired, sales personnel prior to poaching them away from US Labs.

NeoGenomics and the three officers are responsible for paying US Labs $500,000.

+ Gateway Bank

approved to open

Shaun P. Merriman, president and CEO of Gateway Bank of Southwest Florida (currently in organization), announced that the bank has received the final regulatory approval from the Federal Reserve to open its first banking location on May 19. The bank previously received approvals from the Florida Office of Financial Regulation and the Federal Deposit Insurance Corp.

The first office of Gateway Bank of Southwest Florida will be located at 2033 Main St., Suite 200, in downtown Sarasota.

+ Land company Alico

declares new dividend

The board of directors for Alico Inc., a LaBelle-based land management company, has approved a quarterly dividend of 27.5 cents per share to be paid to shareholders of record as of July 31 with payments expected on or about August 15.

"As we work through these current uncertain market conditions, we are confident with our company's stability and strength," John Alexander, chairman and CEO, said in a press release. The new dividend will be the company's twelfth consecutive quarterly dividend.

Alico owns 135,500 acres of land in Collier, Glades, Hendry, Lee and Polk counties and is involved in various agricultural and real estate businesses.

+ TIB Financial increases

salaries of four officers

The board of directors of Naples-based TIB Financial Corp. has increased the salaries of four of its top officers.

According to an SEC filing by the company, Edward Lett, CEO and president of TIB Financial Corp., saw his base salary increase from $350,000 to $360,500 starting Jan. 1. Michael Carrigan, CEO and president of TIB Bank, received a raise from $225,000 to $265,000 for his base salary. As of March 25, he was also awarded 5,300 shares of restricted stock.

The base salary for Stephen J. Gilhooly, executive vice president and chief financial officer of TIB Financial Corp., grew from $210,000 to $220,000 effective April 1; he was also awarded 4,900 stock options for an exercise price of $8.37. Alma R. Shuckhart, senior executive vice president and chief credit officer of TIB Bank, saw her base salary increase from $210,000 to $217,000 as of April 1. Shuckhart was also awarded 5,392 stock options.

+ Brown & Brown

declares 7-cent dividend

Daytona Beach and Tampa-based insurance agency Brown & Brown Inc. has announced a new regular quarterly cash dividend of 7 cents per share. The dividend is payable on May 28, 2008, to shareholders of record on May 14, 2008.

+ CL Verify LLC

hires new CEO

Kim Anderson has joined CL Verify LLC in Largo as acting CEO to manage various aspects of expansion and strategic development. Anderson will also be responsible for executive management of the company.

 Founded in 1998, CL Verify LLC, a subsidiary of DP Bureau, offers extensive, specialized, decision-support solutions and data to the sub- and near-prime loan industry. CL Verify's data and decision-support products provide lenders an accurate, up-to-the minute view of a consumer's financial performance history. CL Verify's products and services deliver impressive returns by integrating and aggregating an unparalleled network of nontraditional consumer payment history, demand deposit account history, and consumer public record data.

+ UTEK TekScout partners

with European news service

Tampa-based technology transfer/finance company UTEK Corp.'s TekScout, an online network created to link companies and scientists, has teamed with Science|Business, a news service that focuses on European research and development investment and policy, to make information available to each other's readers.

The objective of Science|Business is connecting buyers and sellers of emerging technologies. Through the agreement, Science|Business will post TekScout's listings to help attract companies and readers to solve challenges posted on TekScout. UTEK expects the partnership will increase TekScout's exposure and traffic.

"Our partnership with Science|Business is a logical one, given the synergies that exist between our business objectives and reader bases," Clifford M. Gross, Ph.D., chief executive officer of UTEK, said in a press release.

"By partnering with Science|Business, we see a unique opportunity to attract a European audience to our own network and expand our footprint in the European market."

+ TECO Energy adds

half-cent to dividend

Tampa-based energy holding company TECO Energy's board of directors has approved a slight increase to the company's quarterly dividend. The dividend will increase to 20 cents per share, from 19.5 cents per share.

"We are pleased to continue the dividend increase trend we started last year," Sherrill Hudson, chairman and CEO, said in a press release. "This action reflects confidence in our ability to grow earnings given our outlooks for 2009 and beyond."

The increase brings TECO Energy's annual dividend rate to 80 cents per share, a 2-cent increase. The dividend is payable May 28 to shareholders of record as of May 15.

CEO alerts shareholders

to new CarBiz strategy

CarBiz's Chief Executive Officer Carl Ritter wanted to make sure shareholders didn't get the wrong idea about the Sarasota-based company; 2007 may be the last time the company is thought of as a small firm. In a recent letter to shareholders, Ritter says that the company expects that changes it started late last year will significantly alter the company's revenue picture.

"In the first quarter of this year, we expect that revenues will be close to $10 [million] which is a very significant increase over the [$758,000 in] revenues for the first quarter of 2007," Ritter writes. "We have also focused our attention on earnings and expect to produce a net operating profit this fiscal year. Each quarter should improve in dollars and as a percentage of revenues in this fiscal year. In summary, CarBiz is a very different company than it was six months ago. "

In October, the firm began making strategic changes, including the purchase of a Midwest chain of 23 used-car stores, along with a portfolio of associated consumer loan operations. That was followed in December when CarBiz bought a portfolio of used-car financing loans and opened its first used-car supercenter in Houston.

The company now operates 26 used-car dealerships and plans to broaden its product and financing options from an average vehicle-sale price of about $6,000 to up to $20,000.

Ritter says the new business plan already takes into account a worsening economy and the possible increase in gas prices to $4.50 a gallon.

CarBiz owns and operates the nation's fourth-largest chain of "buy-here, pay-here" dealerships through its CarBiz Auto Credit division. The company also provides software, training and consulting solutions to the automotive industry.

Image of the Year

Seminole-based Superior Uniform Group Inc. won three Image of the Year Awards from the National Association of Uniform Manufacturers and Distributors.

Two of the awards were for the Walgreens catalog and store uniform programs. The uniforms had a consistently professional appearance, and all of their fabrics and styles were chosen for their durability and comfort.

Superior's other NAUMD award was for its design and implementation of the Cincinnati Reds Great American Ballpark uniforms. Superior's objectives for these uniforms were to create professional attire while still being somewhat casual and comfortable in all climates, primarily through the use of moisture-management fabric.