Briefcase – December 2016

CONTRACTS

Morphis, an application modernization software company based in Portugal with offices in Boulder, completed a modernization project with Ellucian, a provider of higher-education software and services. The project included migration of more than 4,000 pages from Oracle Forms to Java.

EARNINGS

SPONSORED CONTENT

How Platte River Power Authority is accelerating its energy transition

Platte River Power Authority, the community-owned wholesale electricity provider for Northern Colorado, has a history of bold initiatives.

Bonanza Creek Energy Inc. (NYSE: BCEI), a Denver-based oil and natural-gas company with operations in Weld County, reported a loss of $34.9 million, or 71 cents per share, for its third quarter that ended Sept. 30. Bonanza Creek reported revenue of $49.3 million for the quarter, a 10 percent decrease from the second quarter of this year and a 32 percent decrease compared with its third quarter of 2015. For the third quarter, the company reported a 10 percent decrease in average daily production oil compared with the previous quarter, and a 28 percent decrease from the third quarter of 2015. The reduction in production was a result of suspended drilling and completion operations at the end of the first quarter of this year. The company lowered its lease operating expenses in the Rocky Mountain region to $6.4 million during the quarter, a $2.3 million reduction compared with the previous quarter.

Shoemaker Crocs Inc. (Nasdaq: CROX) reported a loss of $5.4 million, or 7 cents per share, for its third quarter that ended Sept. 30, less than the loss of $27.8 million, or 37 cents per share, it incurred during the same period a year ago. Niwot-based Crocs generated revenue of $245.9 million for the quarter, an 11.6 percent decline from $274.1 million generated in the same period a year ago. As of Sept. 30, Crocs had cash and cash equivalents of $150.2 million compared with $143.3 million as of Dec. 31, 2015. Inventory was $169.4 million at quarter’s end, compared with $190.8 million for the same quarter a year ago.

Brazilian meatpacker JBS SA (Bovespa: JBSS3), the parent of Greeley-based JBS USA, posted a third-quarter profit that was down 74 percent from the same period a year ago. Net income came in at $259.5 million, or 9 cents per share, down from a profit of $1 billion, or 35 cents per share, a year earlier. Revenue declined from $12.6 billion a year ago to $12.1 billion in the third quarter of this year. JBS USA Beef, which includes sales in Australia and Canada, saw revenue slide 6.8 percent to $5.4 billion due, the company said, to a decline in beef prices in the U.S. market. JBS USA Pork, driven largely to the acquisition of Cargill’s pork business late last year, saw revenue increase 72 percent to $1.4 billion. Pilgrim’s Pride Corp. (Nasdaq: PPC), JBS’ U.S. chicken unit in which the company owns a controlling interest, posted revenue of $2 billion, down 3.8 percent from a year earlier.

Surna Inc., a Boulder-based company that engineers equipment for the indoor cultivation of cannabis, reported a loss of $669,000, or 0 cents per share, for its third quarter that ended Sept. 30. The loss was less than the $1.3 million loss, or 1 cent per share, Surna reported during the same period a year ago. That’s despite the company taking a hit in revenue, which dropped to $1.2 million for the quarter, compared with $3.6 million reported for the same period a year ago.

Surna had cash on hand of $235,000 as of Sept. 30, compared with $331,000 at Dec. 31, 2015. For the first nine months of 2016, Surna’s revenue was $5.6 million, compared to $6.2 million for the same period a year ago. Net loss was $2.1 million, or 2 cents per share, compared with $3.7 million, or 3 cents per share for the first nine months of 2015.

Woodward Inc. (Nasdaq: WWD) posted a slight decrease in annual profit, even though earnings per share actually rose by 4 percent. The Fort Collins-based company released its earnings for its full 2016 fiscal year and fourth quarter ending Sept. 30, with the fourth-quarter results easily outpacing last year’s for the same period. Woodward makes components and control-system solutions geared toward energy efficiency for the aerospace and industrial markets. The company’s 2016 net income came at $180.8 million, or $2.85 per share, compared with net income of $181.5 million, or $2.75 per share the previous year. Revenue for the full year was down one percent, from $2.04 billion last year to $2.02 billion this year. For the fourth quarter, net income came in at $63.1 million, or 99 cents per share, up from $50.1 million, or 77 cents per share for the same period a year earlier. Revenue climbed from $562.6 million in the fourth quarter last year to $590.9 million this year. Woodward’s performance were boosted by its aerospace segment, which saw sales grow 6 percent for the year and 9 percent for the fourth quarter. The company’s industrial segment, meanwhile, saw fourth-quarter sales slip by $1 million to $226 million. Industrial sales were down 10 percent for the full year.

KUDOS

The Estes Park Economic Development Corp. earned an International Silver Award for Excellence in Economic Development from the International Economic Development Council in Washington, in recognition of the “Mountain Strong: Estes Valley Business Retention & Expansion” program.

Longmont United Hospital was awarded an accreditation in radiation oncology for its Hope Cancer Care Center from the American College of Radiology.

Chris Royster, a chef at the Flagstaff House restaurant in Boulder, won an episode of “Chopped,” a cooking competition television show that airs on the Food Network. Royster, a chef de cuisine, competed against three contestants, including Brother Luck in Colorado Springs.

Colorado State University won a national Innovation and Economic Prosperity University award for its impact on economic development from the Association of Public Land-Grant Universities. CSU received the honor in the “Place” category for its community-, social- and cultural-development work.

The Fort Collins Board of Realtors honored Dennis Schick of RE/MAX Alliance as 2016 Realtor of the Year during its annual Holiday/Awards event held on Nov. 17.

Woot Math, a Boulder-based education technology company, was selected as top entry in the Evaluation Research category in Digital Promise’s 2016 Research-Based Products Campaign. In addition, Woot Math received honorable mention in the Learning Science category.

Tracy Imhof, owner of Five Star Painting of Boulder, earned Top Gun recognition during the Dwyer Group International Convention held in San Antonio. The award goes to franchise owners who achieve top sales and reach operation benchmarks.

Joseph A. Espinosa, executive director of the Brighton Housing Authority, won Housing Colorado’s 2016 Eagle Award for his work and dedication to the affordable housing industry.

The Colorado Women’s Bar Association honored state Sen. Rollie Heath, D-Boulder, as its 2016 Legislator of the Year on Dec. 6 for his role on issues supporting women and children, including closing the pay gap for women.

Namaste Solar was named to Outside magazine’s Best Places to Work of 2016. Each year, OUTSIDE recognizes the top 100 companies in the United States that help their employees strike the ideal balance between work and play.

MERGERS AND ACQUISITIONS

The Scotts Miracle-Gro Co., which bought a 31 percent stake in Boulder-based AeroGrow International Inc. in 2013, increased its stake in the local firm from 45 percent to 80 percent. AeroGrow announced that Scotts had exercised warrants to purchase the additional shares for $47.8 million in cash. The exercise price was established by a formula negotiated during Scotts’ original deal to buy a minority stake in AeroGrow. AeroGrow stock is traded over the counter under the ticker symbol AERO. The company is based at 6075 Longbow Drive.

Broadband infrastructure provider Zayo Group Holdings Inc. (NYSE: ZAYO) reached a deal to acquire Vancouver, Wash.-based Electric Lightwave for $1.42 billion in cash. Electric Lightwave, formerly known as Integra Telecom, operates mostly in the western United States. The acquisition would give Boulder-based Zayo an additional 8,100 route miles of long-haul fiber optic cable and 4,000 miles of metro fiber in cities such as Portland, Ore.; Seattle; Sacramento, Calif.; San Francisco; San Jose, Calif.; Salt Lake City and Spokane, Wash.

Chicken processor Pilgrim’s Pride Corp. (Nasdaq: PPC) inked a deal to acquire Minnesota-based GNP Co. for $350 million in cash. The deal gives Greeley-based Pilgrim’s control of GNP Co.’s Just Bare Certified Organic and Natural/American Human Certified/No-Antibiotics-Ever product lines, adding to Pilgrim’s own NAE and organic production.

Rogue Wave Software Inc., a software-development firm based in Louisville, acquired Los Angeles-based Akana, formerly known as SOA Software. Financial terms of the deal were not disclosed. Akana specializes in developing, managing and securing application programming interfaces, allowing businesses to extend their reach across mobile, cloud and Internet of Things.

Shareholders of UQM Technologies Inc. (NYSE: UQM) approved the $48 million sale of a majority stake of the company to a subsidiary of Hong Kong-based Hybrid Kinetic Group Ltd. Longmont-based UQM first announced the deal in June. The sale involves the issuance of 66.5 million newly issued shares of UQM common stock to American Compass Inc. That will amount to roughly 58 percent of UQM’s common stock, or 54 percent on a fully diluted basis. UQM will remain a standalone publicly traded company, with HKG’s subsidiary American Compass Inc. getting to nominate five of nine members of the company’s board.

Future Venture Capital Co., based in Japan, acquired Fort Collins-based EnConnect Holdings LLC and will use the firm as its U.S. headquarters. EnConnect, founded in 2015, will operate as FVC Americas. Financial terms of the deal were not disclosed.

Otsuga said he is working out of his house, but he is looking for a location for the company.

Overland Park, Kan.-based Midwest Trust Co. acquired Investors Independent Trust Co., a wealth-management firm based in Boulder. Financial terms of the deal were not disclosed. Investors Independent Trust Co., a subsidiary of Independent Investment Services Corp., is a private wealth-management firm led by president and chief executive Herb McPherson. The company will continue to operate with the same name and team members at 507 Canyon Blvd.

Golden-based Centerline Solutions LLC acquired Boulder Technology LLC, a software design and development firm based in Boulder. Financial terms of the deal were not disclosed, but all of Boulder Technology’s intellectual property for internal systems and emerging SaaS products has been transferred to Centerline Solutions.

Melody Health Insurance Inc. in Denver plans to acquire Colorado Choice Health Plans, a 45-year-old nonprofit based in Alamosa that has 2,500 customers in Larimer and Weld counties. The deal is pending regulatory approval from the Colorado Division of Insurance and the Colorado Attorney General. Colorado Choice will become a wholly owned for-profit subsidiary of Melody. Terms of the deal were not disclosed, but Melody Health will provide capital for Colorado Choice to serve its membership while expanding into new markets.

Amadeus Consulting, a Boulder-based provider of custom software development services founded by Lisa Calkins and John Basso in 1994, was acquired by Walnut Creek, Calif.-based software-engineering firm Exadel. Terms of the deal were not disclosed. Amadeus will become part of Exadel, and Calkins said her company will switch over to the Exadel branding over the next six months. The Amadeus office in east Boulder, as well as the local staff and leadership, will remain, although some finance functions will be shifted to California. Calkins is staying onboard as chief strategy officer of Exadel, and will continue to run the Boulder office. She expects to hire at least 10 more employees for the Boulder office over the next 12 months.

Flatirons Solutions, which employs 70 people in Boulder, acquired Niwot-based competitor TechPubs Inc. for an undisclosed sum. Founded in 2008, TechPubs makes software to help airlines store, share, distribute and update technical documentation and helps make sure it maintains regulatory compliance. TechPubs’ local operations will be moved into Flatirons’ east Boulder office, while the two companies’ operations in Shanghai also will be combined.

MOVES

BizWest Media LLC moved its Boulder office from 1790 30th St., Suite 300, to 3004 Arapahoe Ave. Its Fort Collins office remains at 1550 E. Harmony Road, second floor.

Ras Kassa’s Ethiopian Restaurant, which was ousted from its longtime home near 30th and Pearl streets in Boulder in March 2015 to make way for the new Google campus, will continue operations under a 10-year lease agreement at 802 S. Public Road in Lafayette, a building that also houses Pearl’s Salon and Spa and Tokyo China. The restaurant will open Dec. 16. Ras Kassa’s had been operating out of a second-floor kitchen at the Rodeway Inn & Suites Boulder Broker since earlier this summer.

Scion Aviation LLC, which is rapidly outgrowing its Loveland facility, is moving its final assembly, painting and delivery operations to a 43,000-square-foot building at the Cheyenne Regional Airport in Wyoming. Scion, a contract manufacturer of parts and airframes for companies that make both unmanned and full-scale aircraft, operates out of a 23,000-square-foot building at 3693 County Road 30 in Loveland and employs 20 people. The company plans to keep its research and development and tooling operations at its current site, but also is seeking a location where it can build a 50,000-square-foot clean room — with room to grow to 400,000 square feet or more — that would be used as the main production facility for the carbon-fiber parts.

Retail Control Systems moved its Fort Collins office to 324 E. Oak St. Restorations and renovations to convert the late-Victorian style home on the property — known as the Mosman House or Andrews House and built around 1892 — to RCS’ offices were completed in October.

Olsson Associates, a full-service engineering design firm, moved its Loveland office Oct. 31 to a new, larger space at 1880 Fall River Drive, Suite 200. The new office is near the old location.

NAME CHANGES

Boulder-based industrial manufacturer Dynamic Materials Corp. (Nasdaq: BOOM) changed the company’s official name to DMC Global Inc. According to filings with the Securities and Exchange Commission, shareholders approved the name change at a Nov. 4 meeting.

OPENINGS

Restaurant design firm Trapp Associates Ltd. in Boulder plans to open a barbecue restaurant and brewery in Lafayette early next year, repurposing a closed 3,800-square-foot Burger King at 599 Crossing Drive. Uturn BBQ will be the first restaurant opened by the father-and-son team of Tim and Shem Trapp, although Trapp Associates has designed more than 350 restaurants/breweries throughout the United States, including local projects Fresh Thymes and the Walnut Brewery, and for national chains including Rock Bottom Restaurants, Gordon Biersch and Jim ’N Nicks BBQ. In September, attorney Mark Licata, president of the GoldKing Realty Group, purchased the building for $740,000 from the Lukas Family Limited Partnership. Licata is leasing the building to the Trapps.

Sunrise Strategic Partners, launched in February by Boulder Brands cofounder Steve Hughes, opened a 3,000-square-foot office in downtown Boulder as it continues to invest in a wide range of growing natural-products companies. Sunrise’s new office is at 1426 Pearl St.

Aurora-based UCHealth opened its 36,000-square-foot Boulder Health Center at 5495 Arapahoe Ave. in Boulder. The center houses UCHealth clinics that had been located at various locations throughout the city, plus a few new ones. Clinics at the center that opened Nov. 8, include family medicine, audiology, cardiology, endocrinology, obstetrics and gynecology, occupational therapy and hand therapy, ophthalmology, otolaryngology, physical therapy, podiatry and rehabilitation medicine/neurology, and dependency, addiction and rehabilitation. A new center for midwifery is slated to begin seeing patients in January.

The owner of a hot-rod custom-car shop in Windsor is adding a beer to his business mix. Eric Peratt, owner of Pinkee’s Rod Shop at 4395 Highland Meadows Parkway, plans to open a new brewery and taproom in a spare room at the same facility. The brewery will be called Mash Lab Brewing, and will include a one-barrel brewing system and 12 taps.

Yolk opened at Ninth Street and Eighth Avenue in Greeley, specializing in breakfast items.

The owners of Happy Lucky’s Teahouse and Treasures celebrated the opening of a second location in Fort Collins on Nov. 18-20. George and Kari Grossman opened their first location in 2009 at 236 Walnut St. in Old Town. The second location is at 166 Council Tree Ave. in the Front Range Village on Harmony Road.

A former Sports Authority store in Boulder got new life Oct. 27 when New York-based retailer West Elm opened an 11,000-square-foot store at the Twenty Ninth Street shopping district. West Elm sells a mix of furniture, home décor and kitchen items. The new store is slated to employ 30 people. Through the company’s LOCAL program, 10 Colorado-based makers and designers will be able to sell their products with the store’s holiday assortment.

Aficionados of craft beer, distilled spirits, wine, mead and cider now have another venue at which to sample their favorite beverages, including many from Colorado producers. The Barrel, a bar concept using shipping containers, opened on the upper-level of the Central Plaza at Twenty Ninth Street in Boulder. Loveland couple Ingrid and Lou Bush, who also own a similar setup in Estes Park, launched the project after being approached by Twenty Ninth Street officials. The Boulder version includes 64 taps, including two dedicated lines each for mead, cider and wine, including about 70 percent Colorado brands.

Jamie and Marie Fox, founders of Gunbarrel Brewing Co., signed a lease on a 20,000-square-foot facility in the Gunbarrel area of Boulder for their self-funded brewery. They plan to have Gunbarrel Brewing up and running during the first quarter of 2017 at 7088 Winchester Circle, north of Lookout Road and west of North 71st Street. It will have a 10-barrel brewhouse built by JV Northwest of Canby, Ore., and a one-barrel pilot system for experimentation, research and development. The facility will include a large taproom and a beer garden. The brewery will host food trucks, live performances and beer-centric educational events.

A Minneapolis-based data-security company has opened an office in Broomfield and is looking to fill jobs in cloud operations, product management and engineering. Code42’s office in Broomfield is at 11800 Ridge Parkway.

London-based software company TestPlant, which has had its developers based in Boulder since the company was formed in 2008, established a new Americas headquarters locally. TestPlant, which most recently had both sales and development offices in Boulder in different locations, moved over the summer into a 7,800-square-foot space at 2995 Wilderness Place. The new office will host a range of functions, including sales, human resources, presales, support, development and marketing.

PRODUCT UPDATE

Boulder-based lifestyle technology startup Silvernest is rolling out a new version of its online roommate-matching service for aging adults. New features has been added that make it easier for homeowners to navigate the system, view unlimited matches and find compatible, long-term housemates.