Review & Preview
Revving Up: Better-than-expected profits propelled Internet search engine Overture Services Inc.’s stock price nearly 25 percent on Feb. 13 to $27.66. Overture earned $20.8 million in the fourth quarter of 2001 after a net loss of $361.7 million in the like year-earlier period. Calabasas game developer and publisher THQ also beat expectations for the fourth quarter, with net income of $28.5 million, compared with $21.5 million in the like period a year earlier.
Fore: Shares of National Golf Properties Inc. sunk by 17 percent to close at $8.05 last Monday (Feb. 11) after the golf course owner said it was suspending dividend payments. National Golf also announced it had reached agreements with some lenders on its default of a $300 million credit line.
Healthy Increase: Area HMOs had a robust wrap-up to 2001. Health Net Inc. reported fourth quarter net income rose to $55.9 million from $46.2 million (37 cents) in the year earlier period. The company, citing higher enrollment and reduced costs, raised its 2002 profit forecast as a result. WellPoint Health Networks Inc. reported net income of $109.9 million for the fourth quarter, up from $89.5 million in the year-ago quarter. PacifiCare Health Systems Inc. reported a $26.4 million loss for the fourth quarter, compared with net income of $12 million in the year-earlier period.
‘Lord’ is Mighty: There were no major surprises when the Academy of Motion Picture Sciences last week released its nominees for the 2002 Academy Awards save perhaps for the sheer number of nods given to J.R.R. Tolkien’s Middle-earth fantasy “Lord of the Rings.” With 13 nominations, “Lord” was just one short of the record held by “Titanic” and “All About Eve.” The windfall is likely to reenergize the Warner Bros. hit at the box office, though it hardly needs it. “Lord” already has grossed more than $270 million in North America alone.
Friendly Neighborhood: Avoiding the public squabbles with the network that surrounded their previous negotiation, the six actors in the NBC mega-hit “Friends” each signed for another year at nearly $1 million per episode, putting them in the sit-com stratosphere of Jerry Seinfeld and Kelsey Grammer.
Robust Retail: Major discounts and higher gasoline prices translated into a 1.2 percent jump in retail sales (excluding automobiles) in January to a record $223 billion, the biggest one-month increase since March 2000. Department stores and other general merchandisers did particularly well, with sales increasing 2.1 percent over December figures. Add in automobiles, however, and total consumer spending declined in January by .2 percent compared to December.
Pop Life: Dick Clark Productions Inc. agreed to a $140 million buyout by a private group including Mosaic Media Group, CDP Capital Communications and Jules Haimovitz, former chief operating officer with King World Productions Inc. Dick Clark, who owns 70 percent of his namesake company’s shares, will retain an undisclosed equity stake in the company, and will continue as chairman and chief executive.
Preview: February 18-24
Homes in Range: January’s Housing Starts and Building Permit figures are due out Tuesday (19th). Consensus estimates are that housing starts will be up slightly while building permits are expected to decline. Other economic data due out this week include the Consumer Price Index, which is expected to climb by 0.2 percent, and December’s balance of trade numbers. Early indications are that the trade deficit will hit $28.5 billion. The data is due out Thursday (21st).
Registration Deadline: Feb. 19 (Tuesday) is the last day to register to vote in the March 5 election. For Republicans, the big-interest item is the gubernatorial primary race where former Mayor Richard Riordan will try to fend off challenges from Secretary of State Bill Jones and businessman Bill Simon Jr. Voters must also say yeah or nay on a half dozen state propositions and cast their votes on a wide variety of local initiatives and municipal races.
Hollywood Hot Seat: Is Hollywood accountable for audience behavior? That’s the question being posed Friday (22nd) at Loyola Law School of Los Angeles’ 4th Annual Entertainment Law Symposium. Professor Jay Dougherty, former assistant general counsel for Turner Broadcasting, will lead the day-long symposium focusing on the correlation between violence in the media and violence on the streets.
Safety First: Boeing Co., Candle Corp., Raytheon and Cyrano Sciences will be among the companies displaying their latest counter-terrorism technologies and strategies at an expo and demonstration on Tuesday (19th) at the Torrance Marriott from 8 a.m. to 12:30 p.m. Rep. Jane Harman, K. Jack Riley of Rand Corp and Gilman Louie, president and chief executive of Q-Tel, the CIA’s venture capital fund, will be on hand. Techies are invited to check out the latest gadgetry but RSVPs are required. Call (310) 316-3636.
Earning Out: Among the companies releasing fourth quarter earnings this week are defense contractor Ducommun Inc., integrated messaging firm j2 Global Communications and shopping center owner/developer Macerich Co. Though not based in L.A., two companies with strong ties to the region will also be reporting: Pacific Gas & Electric Co., the energy provider now operating under Chapter 11 Bankruptcy, and Asia Global Crossing Ltd., the publicly-traded subsidiary of Global Crossing Ltd., also operating under Chapter 11.
Hail to the Chiefs: Monday (18th) is Presidents’ Day. Banks, post offices and other government offices will be closed, but many businesses will be open.
