FRIDAY
Fitch Ratings on Friday downgraded the credit rating of El Segundo-based toy maker
Mattel Inc.
to BBB from BBB+ it said, because slipping margins and higher costs cast doubt on the company’s prospects for a turnaround. The ratings change affects about $1.93 billion of the company’s debt. The world’s largest toymaker posted an 8 percent decline in worldwide sales of its flagship Barbie product line in the first quarter, including accounting for foreign currency exchange. The company is posting stronger sales in other lines including Fisher-Price, but earnings margins are declining and Fitch said it fears deterioration of the business, Fitch said. The company is facing higher costs for materials and Fitch does not expect rising prices for the company’s products to compensate fully.
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Los Angeles-based
Southwest Water Co.
said that Peter J. Moerbeek has resigned as president and chief operating officer. “Pete has decided to pursue other opportunities after helping Southwest Water through a transition period,” said Chief Executive Mark Swatek in a statement. “He has done a great job over the last 10 years, and Southwest Water has benefited from his leadership and guidance.” The company also announced that its board of directors elected Swatek as a director and chairman of the board. Swatek succeeds Anton C. Garnier, who remains a director and was appointed executive vice chairman. Swatek was appointed chief executive officer of Southwest Water in April and took office on May 15th.
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Long Beach-based
Molina Healthcare Inc.
said that its Michigan subsidiary has closed on its acquisition of HCLB Inc., the parent company of Cape Health Plan Inc. The control of Cape Health Plan by Molina Healthcare of Michigan Inc. had previously been approved by the Office of Financial and Insurance Services of the Michigan Department of Labor and Economic Growth. The completion of the transaction adds approximately 90,000 Medicaid members Molina Healthcare of Michigan’s enrollment and adds Monroe and St. Clair counties to the counties served. Molina will now serve approximately 155,000 members in southeastern Michigan and approximately 233,000 members statewide. The acquisition is expected to contribute revenues in the range of $105 million to $108 million, or 4 to 6 cents per share, for the remainder of 2006.
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Burbank-based
Walt Disney Co.
has named Russell Hampton president of its publishing unit, replacing Deborah Dugan, who resigned this week. Hampton will oversee Disney’s book and magazine publishing operations worldwide. Hampton will be based in New York. Disney said it picked Hampton because of his role in turning its Baby Einstein Co. from a small video company into a significant brand. Before Disney, Hampton worked at JPMorgan Chase & Co.
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Los Angeles-based
Tag-It Pacific Inc.
that the Company received a letter from the American Stock Exchange LLC informing the Company that it was in noncompliance with certain AMEX continued listing requirements. Specifically, the AMEX letter cited our failure, as of December 31, 2005, to comply with sections of the Company Guide that requires the company to have shareholders’ equity of not less than $4,000,000. Tag-It, owner of Talon zippers and a full service trim management supplier, said it will submit a plan to AMEX by June 15 detailing the actions it has taken or plan to take to regain compliance with the AMEX continued listing requirements within 18 months.
THURSDAY
Camarillo-based Christian media company
Salem Communications Corp.
said will acquire American Ministry Resources LLC, the owner of “Preaching Magazine,” its companion web properties, and the National Conference on Preaching, an annual conference for pastors and clergy. Founded in 1985, “Preaching Magazine” is a bi-monthly periodical for ministers. Owner Michael Duduit, who also is editor of “Preaching Magazine.” will join the staff of the Nashville-based Salem Publishing division and will continue in his role as editor. “For the past 2,000 years, preaching has been the centerpiece of Christian worship and the most identifiable element of church life,” said Joe D. Davis, Salem’s chief operating officer, in a statement. “Therefore, it makes sense that Salem, the broadcast and Internet home to America’s leading Christian communicators, also should be the publishing home to the nation’s top preaching magazine.”
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Los Angeles-based
Reliance Steel & Aluminum Co.
said that its board of directors has declared a two-for-one stock split, in the form of a 100 percent stock dividend on its common stock and a 20 percent increase in the dividend rate. The common stock split will be effected by issuing one additional share of common stock for each share held by shareholders of record on July 5.. The additional shares will be distributed on July 19. Beginning with the 2006 third quarter dividend payment, the company’s regular quarterly cash dividend will be adjusted to 6 cents per share of common stock, representing a 20 percent increase over the current 5 cents per share, after giving effect to the two-for-one stock split. Reliance’s total common shares outstanding will increase from approximately 37.6 million to 75.2 million. The company has paid regular quarterly dividend payments for 46 consecutive years, it said. Reliance share closed up 24 cents to $84.30 on Thursday. “We are committed to increasing shareholder value and believe that this stock split and related dividend rate increase will create a more favorable environment in terms of trading volume, liquidity and marketability of our common stock that should prove attractive to investors,” said Chief Executive David Hannah in a statement.
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Calabasas-based
Aspyra Inc.
announced that it had raised $4.5 million through a private placement of its common stock with a group of accredited investors. Under the terms of the agreement, which was effective May 4, investors received 2,250,000 shares of common stock and 1,350,000 warrants, said the provider of clinical and diagnostic information systems for the healthcare industry. The per unit purchase price was $2, and the exercise price under the warrants is $3 per share. The funds will be used for completion of the integration plan associated with the company’s recent merger, marketing, and general working capital purposes. “The capital infusion will provide funding to help ensure the successful execution of our strategic integration plans associated with our recent merger with StorCOMM, Inc., and to accelerate the marketing of our new products,” said Chief Executive Steven Besbeck in a statement.
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University HealthSystem Consortium and VHA Inc. will distribute
North American Scientific Inc.’s
Prospera brachytherapy products to its member hospitals, effective on July 15, Calabasas-based North American Scientific said. The company will be one of two manufacturers to offer brachytherapy product to the hospital group. Chief Executive L. Michael Cutrer said the deal shows that there is a growing acceptance of Prospera, which is used to treat prostate cancer.
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Chatsworth-based nutritional supplement maker
Natrol Inc.
said it has signed a patent licensing agreement with Austria-based Oekopharm GmbH for the manufacture, sales, distribution and marketing of nicotinamide adenine dinucleotide hydride in North America. NADH is the coenzyme form of B vitamin niacin, which is used by the body to burn food into energy. Oekopharm’s technology stabilizes NADH, which helps to promote optimal absorption and assures a long, effective shelf life. Natrol announced it will release NADH in 10-milligram and 20-milligram tablets for sale online and in retail stores.
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Los Angeles-based water utility services provider
Southwest Water Co.
announced quarterly cash dividends of $0.0524 per share of common stock and $0.65625 per share of Series A preferred stock. The dividends are payable on July 20 to stockholders of record as of June 30.
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Los Angeles-based
Cash Technologies Inc.
said it has been notified by the American Stock Exchange that as of May 17, the company had complied with Amex continued listing standards. Amex notified the provider of healthcare and financial services data processing systems on Oct. 31 that it had fallen below the requirements set forth the Amex Company Guide for having insufficient shareholders’ equity. The company was given the opportunity to submit a plan of compliance plan to achieve the stated requirements by Feb. 28, 2006.
WEDNESDAY
Salem Publishing, a division of Camarillo-based
Salem Communications Corp.
said it has agreed to acquire Xulon Press, an on-demand digital publisher of books targeting the Christian audience. Xulon president and Chief Executive Tom Freiling will join Nashville-based Salem Publishing as general manager of Xulon Press. Print-on-demand employs digital technology whereby books are stored electronically and printed only as they are ordered. POD reduces the need for large inventory and warehousing and allows authors the opportunity to publish a work in minutes. “This acquisition is an opportunity for Salem to diversify our core radio, Internet and magazine platform, yet continue to serve our niche,” said Jim Cumbee, president of non-broadcast media for Salem Communications.
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Los Angeles-based
Cash Technologies Inc.
said that it has changed the name of its wholly owned Heuristic Technologies Inc. subsidiary to Claim Remedi Services, Inc. and launched a new website at www.Claim-Remedi.com. The new name captures the purpose of Claim Remedi’s products, to solve a widespread problem in the healthcare industry that results in the denial of some 30 percent of all medical insurance claims, the company said. That creates vast inefficiency for the industry and contributes to the high cost of healthcare. Claim Remedi’s Pro837 Claim Editor allows errors to be fixed prior to submission.
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Los Angeles-based defense contractor
Northrop Grumman Corp.
said that its board of directors has approved a 15 percent increase of the common stock quarterly dividend to 30 cents per share from 26 cents. The cash dividend will be payable June 10 to shareholders of record as of the close of business May 30. The board also declared a regular dividend of $1.75 per share on the company’s Series B convertible preferred stock, payable July 17 to shareholders of record as of the close of business July 6. “This marks our third double-digit dividend increase in as many years, demonstrating our board’s continued confidence in the performance of our business,” said Chief Executive Ronald D. Sugar.
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Burbank-based advanced media and creative services firm
The Cannery
, said it has an agreement with El Segundo-based
Mattel Inc.
to license cEDGE, its enhanced game engine technology, for the interactive DVD version of Mattel’s popular game Mad Gab. The game, Mad Gab Mania, has unique rules and puzzle types for the DVD game, which when combined with Mattel’s own Game Buzzer remote control, allows for head-to-head-competition, complete with word puzzles. “Mattel’s relationship with us brings their innovative technological advancements in game play and our DVD development expertise to the forefront in a gaming product that promises to be second to none,” said Doug Textor, chief executive of The Cannery.
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Glendale-based
IHOP Corp.
had named president and Chief Executive Julia Stewart as chairman of the board. Stewart, a board member, succeeds the restaurant chain’s former chairman, Larry Alan Kay, who will remain on the board as lead director. She is a 34-year veteran of the foodservice industry, and has been with IHOP since December, 2001.
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Los Angeles-based
Overhill Farms Inc.
said that a new $47.5 million senior secured credit facility with Guggenheim Corporate Funding LLC was funded on Wednesday. In addition to allowing the provider of custom frozen foods to foodservice, retail and airlines to retire its existing senior and senior subordinated debt of $44.3 million (as of April 2, 2005), the new facility provides working capital for the company’s current and expected future needs as well as for general corporate purposes. “The continued strengthening of our balance sheet and our strong cash flow generation enabled us to refinance our debt on very favorable terms for the company,” said Chief Executive James Rudis, noting that the company estimates savings in pre-tax interest and fees of approximately $1.2 million over the initial twelve months of the facility. The credit facility has a five-year maturity, and consists of a $7.5 million revolving credit facility and two term loans in the principal amounts of $25 million and $15 million. Initial funding under the new credit facility was made in the amount of $44.5 million. No dilution to stockholders resulted from the execution of the new loan agreement, as no equity instruments such as warrants or options were issued to the new lenders, the company said.
TUESDAY
PetroEcuador, Ecuador’s state oil company, said Tuesday that it plans to seize a field operated by Los Angeles-based
Occidental Petroleum Corp.
and may auction it to a producer from Venezuela or Brazil. In 2004, Ecuador threatened to shut Occidental’s operations after it owed the company $75 million in taxes and said that Occidental violated an oil contract. Occidental, which has operated in Ecuador since 1985, said it still wants an amicable resolution of the dispute. Shares of Occidental, which gets 7 percent of its output from Ecuador, fell as much as 4 percent before recovering to close down 2 percent to $96.97.
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Pasadena-based
Jacobs Engineering Group Inc.
announced it had won two large contacts, one of them in the United Kingdom. A Jacobs subsidiary company has received a contract from Transport for London, the organization responsible for the city’s transportation system, to provide design and program management services for a major project to enhance the capacity of Stratford Regional Station. Officials estimate the contract value at $6 million. Stratford will be the gateway station for the 2012 Olympic Games, and the station’s location positions it at the heart of a number of major transportation and development initiatives. In the second award, a Jones subsidiary company received a project management contract award from Fairview Health Services for the University of Minnesota Children’s Hospital, Fairview replacement facility in Minneapolis. The first phase is for a 270,000-square-foot facility linking to the existing University of Minnesota Medical Center, Fairview; followed by a second-phase, 170,000-square-foot vertical expansion. Officials did not disclose the contract value.
MONDAY
Los Angeles-based denim clothing maker
True Religion Apparel Inc.
said that the company has won two court default judgments against several individuals and businesses charged with importing and selling counterfeit True Religion Brand Jeans. The default judgment orders from both cases total approximately $1 million, after legal expenses. In one of case, True Religion worked with Ben Sherman Ltd. to pursue a claim against individuals and businesses charged with selling counterfeit clothing for both brands. The five hundred thousand dollar judgment in that case was awarded jointly to both plaintiffs. “As the visibility of the True Religion brand continues to grow both in the U.S. and abroad, we are working aggressively to protect our intellectual property and ensure that only authorized department stores and specialty store customers receive our authentic, high-quality, custom-fit goods,” True Religion Chief Executive Jeffrey Lubell, a former Ben Sherman executive, said in a statement.
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El Segundo-based
Computer Sciences Corp.
announced that it is one of five firms that have been awarded a Principal Resource for Information Management Enterprise-wide (PRIME 3.2) blanket purchase agreement by U.S. Agency for International Development to provide a comprehensive range of information technology support services for the humanitarian assistance. CSC estimates the value of its agreement, which has a one-year base period and four one-year options, to be approximately $800 million if all options are exercised. “We are confident that our solutions will provide cost-efficient and timely delivery of information to increase the effectiveness of employees working around the world to support America’s foreign policy,” said Jim Sheaffer, president of CSC’s Federal Sector business unit. The total ceiling value of the agreements for all five firms, which includes DynCorp International of Fort Worth, Texas; Grant
Thornton of Chicago, Ill.; HP of Palo Alto, Calif.; Siemens USA of New York,
N.Y.; STG Inc. of Reston, Va.; and True North Solutions of Herndon, Va.; is $4 billion.
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Los Angeles-based casual wear company
Tarrant Apparel Group
said that it has signed a commitment letter with Guggenheim Corporate Funding LLC for a $65 million credit facility. The letter contemplates that the credit facility will consist of an initial term loan of $30 million repay certain existing indebtedness, and fund general operating and working capital needs. A second term loan of $35 million will be available to finance acquisitions, if any, acceptable to Guggenheim. “This funding will allow us continue to grow our Private Label business, while giving us the flexibility to accelerate our growth through strategic acquisitions that we may identify from time to time,” said Chairman Gerard Guez. The facility would be secured by a lien on all of the company’s consolidated assets.
