Briefcase – April 2015

BRIEFS

City of Greeley officials are inviting businesses to participate in the Mayor’s Workforce Initiative, an effort to help provide internships for area youth while at the same time helping train a skilled talent pipeline for local businesses. The goal is recruit area businesses to provide a minimum of 80 paid internships for this summer. Interested businesses can send representatives to upcoming planning sessions to hear more about the opportunity and register to participate. The sessions are April 7 from 8 to 10 a.m., and April 8 from 11 a.m. to 1 p.m., with lunch included for the latter. To register, contact Susan Walker at walkersusan56@gmail.com or 970-302-5933.

CLOSINGS

The OfficeMax office-supply store at 1880 30th St. in the Market Square Shopping Center in Boulder and the Office Depot store at 2251 Ken Pratt Blvd. in the Village at Burlington shopping center in Longmont will close May 16 because of the Office Depot/OfficeMax merger in November 2013 that created Office Depot Inc. (Nasdaq: ODP). The fate of other Office Depot and OfficeMax stores in the region is unclear. More closures in addition to the 400 announced could occur if Framingham, Mass.-based Staples Inc.’s (Nasdaq: SPLS) pending acquisition of Office Depot, a $6.3 billion deal announced in February, is approved by federal regulators.

EARNINGS

Heska Corp. (Nasdaq: HSKA), a Loveland-based maker of veterinary diagnostic and other specialty veterinary products, reported 2014 net income of $2.6 million, or 41 cents per share, after a loss of $1.2 million, or 21 cents per share in 2013. Revenue for the year hit $89.8 million, a 15 percent increase from the year before. The annual earnings were tempered by a fourth quarter that fell short of analyst expectations. Fourth-quarter income was $829,000, or 12 cents per share, down from $1.2 million, or 20 cents per share. That was despite fourth-quarter revenue climbing from $23.5 million in 2013 to $24.3 million in 2014. The company finished the year with $5.9 million in cash, down from $6 million a year earlier.

Boulder-based Rally Software Development Corp. (NYSE: RALY) reported a loss of $33.8 million for its fiscal year 2015 that ended Jan. 31. The software developer reported revenue of $87.5 million for the year, an increase of 18 percent compared with the prior year. The loss for the year, which equated to $1.35 per share, compared with a loss of $20.1 million, or $1.01 per share, in fiscal year 2014. For its fourth quarter, Rally reported record quarterly revenue of $24.6 million, an increase of 25 percent compared with the same period one year ago. It reported for the quarter a net loss of $9 million, or 35 cents per share, compared with a loss of $6.3 million, or 26 cents per share, for the same quarter a year ago.

Longmont-based data-storage firm Dot Hill Systems Corp. (Nasdaq: HILL) reported fourth-quarter profit of $8.5 million on revenue of $68.2 million, beating revenue estimates by nearly $2 million. For the quarter that ended Dec. 31, revenue was up from $59.7 million and profit increased from $2.2 million compared with the same period from a year ago. For the year, the company reported profit of $8.1 million, or 13 cents per share. Revenue was reported as $217.5 million, up from $206.6 million in 2013.

Brazilian meatpacker JBS S.A. (Bovespa: JBSS3), parent company of Greeley-based JBS USA, earned $650 million in 2014 despite a weak fourth quarter where earnings, at $197 million, were 43 percent lower than the same quarter a year earlier. JBS S.A.’s overall performance improved thanks to higher revenue from its chicken, beef and other divisions. For the year, JBS earned $650 million, more than double the $295 million it earned in 2013. The company reported $38 billion in revenue last year, up from $30 billion the prior year. JBS USA Beef earnings before interest, taxes, depreciation and amortization totaled $916 million in 2014 up from $376 million in 2013. JBS USA’s beef division includes a Greeley beef processing plant capable of processing 5,400 cattle daily. At Pilgrim’s Pride Corp. (Nasdaq: PPC), JBS’ U.S. chicken unit in which the company owns a controlling interest, 2014 earnings before interest, taxes, depreciation and amortization rose to $1.3 billion from $810 million. Revenue from JBS USA’s beef division grew to $21.6 billion from $18.6 billion. Pilgrim’s Pride revenue rose to $2.2 billion in 2014 from $2 billion in 2013. JBS posted $10.9 billion in revenue during the fourth quarter, compared with $8.7 billion during the same quarter the prior year. JBS USA Beef’s fourth-quarter earnings before interest, taxes, depreciation and amortization dropped to $325 million during the period from $505 million. JBS USA Beef revenue totaled $5.9 billion for the quarter, up from $5.8 billion during the fourth quarter of 2013. Pilgrim’s Pride earnings before interest, taxes, depreciation and amortization totaled $368 million, down from $435 million during the same quarter a year earlier.

Vail Resorts Inc. (NYSE: MTN) reported a 95 percent boost in earnings for its second fiscal quarter versus the same period a year ago. The Broomfield-based company, which operates several U.S. ski resorts including Vail, Breckenridge, Keystone and Beaver Creek in Colorado, reported $115.8 million, or $3.10 per share, in net income for the period ending Jan. 31. That’s compared to $59.3 million, or $1.60 per share, the year before. Quarterly revenue increased from $452.7 million last year to $530.2 million this year.

Lifestyle-media company Gaiam Inc. (Nasdaq: GAIA) reported a loss of $2.4 million in its fourth quarter and a loss of $9.9 million for the year that ended Dec. 31. The Louisville-based company said it had a loss of 10 cents per share. Earnings, adjusted to account for discontinued operations, came to 3 cents per share. The company posted revenue of $55.4 million in the period compared with $50.7 million for the same quarter a year ago. For the year, the company’s loss narrowed to $9.9 million, or 41 cents per share. Revenue was $155.5 million.

Louisville-based biopharmaceutical company GlobeImmune Inc. (Nasdaq: GBIM) reported a net loss of $16.3 million for 2014 compared with a profit of $9.5 million in 2013. GlobeImmune reported a decline in revenue from $22.5 million in 2013 to $6 million in 2014. In July, GlobeImmune went public, raising $17.3 million in gross proceeds. Research and development for proprietary programs expense for the year was $2.2 million, compared with $1.9 million for 2013. The increase primarily was due to expenses related to a tuberculosis grant. GlobeImmune had cash and equivalents of $16.8 million.

The fourth-quarter earnings report of Dynamic Materials Corp. (Nasdaq: BOOM) fell short of analyst expectations and a projected decrease in sales for 2015 of 8 percent to 12 percent.

The Boulder-based company, which has offices in China and Germany, reported a fourth-quarter net loss of $3.6 million, or 27 cents per share, for the period ending Dec. 31. Sales for the fourth quarter were $52 million, up 5 percent from the previous year. DMC officials also restated earnings for 2012, 2013 and the first three quarters of 2014 because of accounting errors. Sales and cash balances were not affected. But net income was adjusted downward by $919,000 for 2012, $1 million for 2013 and $879,000 for the first three quarters of 2014.

KUDOS

Coan, Payton & Payne, LLC managing member G. Brent Coan was recognized by Super Lawyers Magazine as a 2015 Colorado Super Lawyer and founding member Michael C. Payne was recognized as a 2015 Colorado Rising Star. Coan, Payton & Payne has offices in Fort Collins, Greeley and Denver.

Jeanette Meyer, principal of Meyer and Associates at Re/Max Alliance in Fort Collins, was awarded a Quality Service Certified Platinum award in recognition of earning 100 percent client service satisfaction in 2014, as measured by Leading Research Corp.

Angela Vander Meyden of Boulder-based Housing Helpers of Colorado LLC earned the credential of Certified Corporate Housing Professional after successfully completing an exam developed and administered by the Corporate Housing Providers Association. She joined Housing Helpers in 2012 after working in the property-management field for 13 years.

Eleven researchers at the University of Colorado Boulder – including seven engineers – received the National Science Foundation’s Faculty Early Career Development Awards, which usually amount to about $500,000 over five years. The award winners so far in 2015 are Aaron Clauset and Tom Yeh, both of the Department of Computer Science; Greg Rieker of the Department of Mechanical Engineering; Shideh Dashti and Fernando Rosario-Ortiz, both of the Department of Civil, Environmental and Architectural Engineering; Alireeza Doostan of the Department of Aerospace Engineering Sciences; and Joel Kaar of the Department of Chemical and Biological Engineering. The 2014 winners are Alaa Ahmed of the Department of Integrative Physiology; Kendi Davies of the Department of Ecology and Evolutionary Biology; Robin Dowell of the Department of Molecular, Cellular and Developmental Biology; and Jason Marden of the Department of Electrical, Computer and Energy Engineering.

Weld County commissioners recognized Jerry Kearney, volunteer board member for the county’s Area Agency on Aging, for his three years on the panel, and Tim Marquart, Disabled Veterans Outreach Program specialist, who received the Individual Distinguished Award from the Veterans Incentive Program Committee.

Boulder-based Outdoor Craftsmen again won the ELITE Landscape Award of Excellence from the Associated Landscape Contractors of Colorado, the 24th such award for the company in the 11 years since it was founded.

Jim Swaeby of the Boulder-based Colorado Group received the 2014 Dean Callan Recognition Award from the Commercial Brokers of Boulder, the association of real-estate brokers specializing in commercial and investment properties. The annual award is given to: “a member of the industry who demonstrates exceptional professional service to clients, integrity, community involvement, leadership and mentorship.” A $2,500 donation is made to a charity selected by the winner and the Callan family. Swaeby chose the Leeds Real Estate Center of the University of Colorado Boulder.

Boulder-based Ball Aerospace & Technologies Corp. a subsidiary of Broomfield-based Ball Corp. (NYSE: BLL), received a trophy from the Smithsonian Institution’s National Air and Space Museum for its role in confirming the age-old hope that planets and planetary systems are ubiquitous in the universe. Ball was the prime contractor for NASA’s Kepler Mission, designed to search for rocky, Earth-sized planets around other stars.

Colorado State University in Fort Collins received a platinum rating for sustainability from the Association for the Advancement of Sustainability in Higher Education, an independent reviewer of universities around the world for sustainable academics, research and practices through a STARS (Sustainability Tracking, Assessment and Rating) system.

MERGERS AND ACQUISITIONS

A pair of local investors paid $1.35 million for the former Best Western Lodge at Nederland, which recently had been rebranded as the Magnuson Hotel Nederland. Don Altman, of Altman Consulting and a cofounder of AGR Building Inc. in Boulder, said he and a friend purchased the 16,430-square-foot, 24-room lodge at 55 Lakeview Drive under the entity Nederland Investment Group LLC from the estate of the late Vance Boeve, whose family also had been longtime owner of the former Golden Buff Lodge in Boulder that is being redeveloped.

Premier Members Federal Credit Union and Boulder Valley Credit Union intend to merge. The organization will operate as Premier Members Credit Union, use BVCU’s state charter and continue to have its corporate office in Boulder. Staffs at both credit unions, approximately 185 full-time workers and 25 part timers, will be retained. The merger still must be approved by state and national regulators, as well as Premier Members’ membership. Carlos Pacheco, Premier’s chief executive, will co‐lead the combined organization as CEO alongside Rick Allen, current BVCU president/CEO, who will continue his role as president/CEO. The combined organization will have 17 branches in Boulder, Louisville, Longmont, Firestone, Arvada, Westminster, Greenwood Village and Estes Park.

Medical device giant Medtronic plc (NYSE: MDT) purchased Boulder-based hearing-aid manufacturer Sophono Inc. Terms of the deal were not announced. Medtronic, headquartered in Minneapolis, already has a significant presence in Boulder County, with 300 employees at its Louisville facility, plus another 1,800 at recently acquired Covidien’s Gunbarrel location.

MOVES

Boulder-based customer-service management company Vertiba Inc. moved its headquarters March 9 from 2960 Center Green Court to 1590 Broadway.

Thirsty’s Liquors in Fort Collins, which lost its least in November when the Safeway plaza at College Avenue and Mulberry Street was sold, bought a building at 1001 S. Lemay Ave. for $665,000 and plans to open there in late spring.

OPENINGS

Vernal, Utah-based Brady Trucking Inc. purchased a 5,000-square-foot building on five acres at 601 E. Collins St. in Eaton for $1.4 million, where it will operate its Eastern Colorado Division.

The owner of Kathmandu restaurant in Nederland plans to open a location in Boulder after purchasing the former Golden Lotus Chinese restaurant at 1964 28th St. for $3.5 million. Resham Gurung, under the entity Nepal Two LLC, bought the restaurant from longtime owners Steve and Victoria Chen, according to Boulder County property records.

The owners of Workspace Innovations Ltd. in Fort Collins and Workplace Elements LLC in Denver partnered to create a third company focused on sales and marketing of office furniture in Northern Colorado and Wyoming. The new company, Workspace Elements LLC, will do business as Workspace Innovations Ltd., an Elements Partner.

Game On! Sports Camps 4 Girls, based in Lake Forest, Ill., will open at Douglass Elementary School in east Boulder this summer for girls ages 4 through 14.

PRODUCT UPDATE

Clean-tech startup Boulder Power Technologies LLC launched a lithium ion-based portable generator with aims of taking a bite out of the gas-powered generator industry. The PowerTap 2000 initially is available for order on the company’s website to people in Colorado, with a full rollout nationally planned for the second quarter.

SERVICES

First National Bank, a subsidiary of First National of Nebraska, is offering its Visa credit- and debit-card customers access to Apple Pay. When a customer adds a credit or debit card to Apple Pay, the actual card numbers are not stored on the device or on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the secure element on the customer’s device. Each transaction is authorized with a one-time unique dynamic security code.

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