Wednesday’s L.A. News RoundupWednesday, August 1, 2012
MIXED QUARTER: Shares of True Religion Apparel Inc. fell more than 21 percent on Wednesday after the designer denim maker and retailer reported a mixed second quarter and lowered its full-year guidance. Net income rose 4 percent to $9.8 million (39 cents a share), which was 4 cents a share higher than analysts forecast. But 7 percent revenue growth to $105 million fell short of Wall Street expectations of $107 million. The Vernon company saw slower sales of spring and summer women’s merchandise, and now expects full-year profit of $1.80 to $1.86 a share, down from its earlier forecast of $1.88 to $1.95. That led analyst Dorothy Lakner of Claris & Co. to cut her recommendation on shares from “buy” to “above average”
PROFIT SURPRISE: Shares of ReachLocal Inc. rose nearly 7 percent on Wednesday after the provider of online marketing services for small and medium businesses reported second-quarter profit and revenue growth topping analysts’ expectations. Net income jumped 134 percent to $332,000 (1 cent a share) for the Woodland Hills company, with revenue up 21 percent to $112 million. Analysts had expected a loss of 2 cents a share on revenue of less than $110 million. Imperial Capital analyst Anil Gupta liked the company’s execution of its domestic and international growth strategy, but reduced the stock rating from “buy” to “inline,” primarily due to its current high valuation.
PROFITABLE QUARTER: Shopping mall owner Macerich Co. on Wednesday said it moved to a second-quarter profit, helped by large gains on asset sales. The Santa Monica real-estate investment trust also saw a 13 percent increase in revenue, which the company attributed to a stronger retail property market and stabilization in rent rates. The REIT during the quarter sold interests in four shopping centers for a net gain of nearly $131 million. Net income was more than $133 million ($1 a share), compared with a net loss of $19.2 million (-15 cents) in the same period a year earlier, with revenue of more than $204 million. Adjusted funds from operations were flat at 74 cents, just above the Wall Street consensus of 73 cents. Shares closed down less than 1 percent to $58.17.
HOLLYWOOD BUY: Kilroy Realty Corp. has completed acquisition of 6255 Sunset Blvd., a 22-story Class A office building one block from the corner of Sunset and Vine. The West L.A. real estate investment trust said the $79 million purchase price was a significant discount to the building’s replacement cost, and it plans extensive renovation of tenant spaces and public areas. The building is 87 percent leased.
MERGER COMPLETE: Encino’s California United Bank on Wednesday said that it has completed its acquisition of Premier Commercial Bank N.A., a subsidiary of Premier Commercial Bancorp. Premier Commercial Bank’s branch offices in Anaheim and Irvine/Newport Beach become full service offices of California United Bank, said David I. Rainer, chief executive of CU Bancorp, the new holding company for the merged banks. The stock will trade under California United’s former ticker symbol “CUNB” on the Over-the-Counter Bulletin Board. The stock deal, first announced in December, was valued at $38.2 million