Korn/Ferry Buys Lominger Limited
Korn/Ferry International, a Los Angeles-based executive recruitment firm, said it has agreed to acquire Lominger Limited, Inc., a provider of leadership development tools for individuals, teams and organizations. Under the agreement, Korn/Ferry will pay $24 million in cash for the Minneapolis-based company which will then become a wholly-owned subsidiary of Korn/Ferry. The acquisition is expected to add about 3 cents per share in earnings for the remainder of its fiscal year.
Direct TV Triples Profit
DirecTV Group Inc. reported net income was $458.7 million (36 cents per share), up 184 percent from $161.5 million (12 cents) for the same period a year earlier. Revenue for the El-Segundo-based satellite cable provider was up 10 percent to $3.52 billion. The large jump in profits was partially attributed to $253 million in capitalized equipment during the period, a result of changed accounting practices; the company lengthened the timing of when it books depreciation of set-top receivers it leases to customers. However, subscriber growth slowed for the News Corp.-controlled company to 125,000 from last year’s 225,000 as it began using tighter credit requirements for new customers. It also credited the surge in profits to more subscribers buying premium services.
Hansen’s Profits Soars, Stock Plummets
Shares of Hansen Natural Corp. continued to decline Tuesday after the fast growing Corona-based maker of natural beverages and the Monster energy drinks failed to meet Wall Street’s lofty expectations. On Monday, Hansen reported second quarter net income of $28.2 million (28 cents per share), up 85 percent from $15.2 million (16 cents), for the same time a year earlier. Sales for the Corona-based drink maker rose 82.6% to $156 million. Despite exceeding Wall Street expectations, the company’s stock plunged $10.40 to $29.85 on Monday, its biggest drop in 10 years. The stock was down 2 percent in early trading Tuesday.
“The street was expecting them to be upper-end consensus range 34 cents,” said Canaccord Adams analyst Stephen Colbert. “That being said, it was still a strong earnings release.” The company added that sales of its Monster Energy drink more than doubled and increases in sales of teas, apple juice and juice blends also lifted results, which were partially offset by lower sales of other Hansen energy drinks, Smoothies in cans, Energade and Hansen’s Natural Sodas. Hansen has beaten analyst estimates by 17% to 42% over the last calendar year.
Edison Posts Loss on Increased Revenue
Edison International reported second quarter net income of $177 million (54 cents per share), down 12 percent from $201 million (61 cents) from the same period a year earlier. Revenue for the Rosemead-based energy company rose 13% to $3 billion. Wall Street had been expecting earnings of 59 cents a share on about $3.05 billion in revenue, according to a Thomson First Call survey of analysts. Results from Edison Mission Group, the company’s stable of unregulated energy businesses, posted a $56-million loss. Most of the loss was concentrated in $88 million charge Mission took for bond refinancing.
Jacobs Engineering Lands Four More Contracts
Jacobs Engineering Group Inc. said it has landed four new contracts worth more than $230 million in total. The Pasadena-based engineering services provider received contracts with BASF for work on a chemical plant in Geismar, La., and another with the U.S. Corps of Engineers for work on the Fort Bliss Modular Force Program in Texas. The company also received a contract for work with the London Fire and Emergency Planning Authority to provide multidisciplinary services to the fire and emergency planning unit. It will provide the Dormitory Authority of the State of New York with construction management services for the Remsen Hall Expansion project at Queens College in Flushing, N.Y.
K-Swiss Declares Dividend
K-Swiss Inc said that its board of directors has declared a quarterly cash dividend of 5 cents per share for the third quarter ending September 30, 2006. The Westlake Village-based footwear maker said the dividend is payable on October 13, 2006, to shareholders of record as of September 29, 2006. Last week, K-Swiss reported a 21 percent increase in second quarter profits and a 2 percent dip in sales.
L.A. To Get “The Onion”
Humor newspaper “The Onion” will be distributed starting August 10 in the Los Angeles-area, the Madison Wis.-based publication said. The paper will have more than 1,200 retail distribution locations throughout Los Angeles including coffee shops, bars, restaurants, gyms and music stores. There will also be 100 street box locations throughout busy pedestrian areas. The Onion has a print circulation of more than 3 million readers each week.
