The Times 10
Now this is what you call recovery. Uplifting financial news far outweighed the bad in this year's Times 10, an annual roundup of the region's largest public companies.
Nine of the 10 leading local companies enjoyed a rise in revenue, including five by a double-digit percentage. WellCare Health Plans was the sole company with falling revenue. Seven of the 10 posted rising profits. • With a change in methodology, the St. Petersburg Times included retail beverage bottler Cott Corp. on the list for the first time. Cott lists dual headquarters in Ontario and Tampa. However, its shares trade on the NYSE and its major operations and top management, including its CEO, are based in Tampa. • Call center operator Sykes Enterprises made the biggest jump, debuting on the list at No. 9, thanks to adding nearly $400 million in revenue from a major acquisition. Also new to the list was staffing firm Kforce Inc., now No. 10.
Jeff Harrington, Times staff writer
1 Tech Data Corp., $24.4 billion in annual revenues, bolstered by $600 million from new acquisitions during the year, up 10 percent
BUSINESS: One of the world's largest distributors of technology products
ADDRESS: 5350 Tech Data Drive, Clearwater 33760
CEO: Robert Dutkowsky
Financials for the year ended Jan. 31, 2011
NET INCOME: $214.2 million, up 19 percent
NET INCOME PER SHARE: $4.36, up 23 percent
RETURN ON EQUITY: 10.3 percent
TICKER SYMBOL: TECD, Nasdaq
FRIDAY CLOSE: $46.52
BIGGEST CHALLENGE: Trying to keep up with rapidly evolving technologies to access the right products. Dealing with the vagaries of foreign economies.
CEO Total Compensation: $5 million, up 9 percent from prior year. Includes salary of $957,000; bonus of $1.9 million; stock award of $2.1 million; and other compensation of $39,116.
2 Jabil Circuit Inc., $13.4 billion in annual revenues, up 14 percent
BUSINESS: An electronic product solutions company providing comprehensive electronics design, manufacturing and product management services
ADDRESS: 10560 Dr. Martin Luther King Jr. St. N, St. Petersburg 33716
CEO: Timothy L. Main
Financials for the fiscal year ended Aug. 31, 2010
NET INCOME: $169 million, up from loss of $1.2 billion
NET INCOME PER SHARE: 79 cents, up from loss of $5.63
RETURN ON EQUITY: 16.88 percent
TICKER SYMBOL: JBL, NYSE
FRIDAY CLOSE: $21.22
BIGGEST CHALLENGE: Jabil's focus for 2011 is continuing to improve global manufacturing with emphasis on employee development and manufacturing excellence. As the global economy rebounds, Jabil is targeting the business areas of clean technology and health care.
CEO Total Compensation: $9.8 million (total salary and compensation), up 117 percent from 2009. Includes base salary of $1 million; stock options worth $5. 9 million; and a $2.9 million bonus.
3 WellCare Health Plans, $5.4 billion in annual revenues, down 21 percent
BUSINESS: Medicare and Medicaid managed health plans
ADDRESS: 8725 Henderson Road, Renaissance One, Tampa 33634
CEO: Alec Cunningham
Financials for the year ended Dec. 31, 2010
NET INCOME: Loss of $53.4 million, compared with $39.9 million earned in 2009
NET INCOME PER SHARE: Loss of $1.26 per share, vs. 95 cents per share earned in 2009
RETURN ON EQUITY: -4.42 percent
TICKER SYMBOL: WCG, NYSE
FRIDAY CLOSE: $49.50
BIGGEST CHALLENGE: Evaluating rates that cash-strapped states like Florida set to pay for Medicaid patients, especially with more people becoming eligible under the new federal health care guidelines.
CEO Total Compensation: $3.3 million, up 41 percent from prior year. Includes base salary of $644,423; bonuses of $1,110,125; stock award of $974,996; options awards of $478,796 and $58,148 for "legal diligence regarding his appointment to the position of Chief Executive Officer.''
4 TECO Energy Inc., $3.5 billion in annual revenues, up 5.4 percent
BUSINESS: Electric utilities
ADDRESS: 702 N Franklin St., Tampa 33602
CEO: John B. Ramil
EMPLOYEES: 2,300 (full-time)
Financials for the year ended Dec. 31, 2010
NET INCOME: $239 million, up 12 percent
NET INCOME PER SHARE: $1.12, up 12 percent
RETURN ON EQUITY: 10.97 percent, down 4 percent
TICKER SYMBOL: TE, NYSE
FRIDAY CLOSE: $19.06
BIGGEST CHALLENGE: As the Florida and local economies emerge from the recent recession and slowly strengthen, TECO faces slower revenue growth and increased cost pressures, says John Ramil, president and chief executive officer. Ramil said the company's challenge is to meet the needs of its customers for reliable, cost-effective service and maintain a commitment to the communities in which it operates.
CEO Total Compensation: $2.8 million. Includes base salary of $639,615; stock awards worth $1.1 million; a $494,179 bonus; and $520,206 in pension and other compensation. Ramil was appointed president and chief executive officer on Aug. 4, 2010. His compensation was 11 percent lower than his predecessor's in the prior year.
5 HSN Inc., $2.997 billion in annual revenues, up 9 percent
BUSINESS: E-commerce including two TV shopping channels that get a third of their business from hsn.com and nine mail-order catalogs that get half their business from their own websites
ADDRESS: 1 HSN Drive, St. Petersburg 33729
CEO: Mindy Grossman
EMPLOYEES: 5,000 full-time, plus 800 part-time; 2,700 in St. Petersburg
Financials for the year ended Dec. 31, 1, 2010
NET INCOME: $99 million, up 36 percent
NET INCOME PER SHARE: $1.65, up 31 percent
RETURN ON EQUITY: 23 percent
TICKER SYMBOL: HSNI, Nasdaq
FRIDAY CLOSE: $34.06
BIGGEST CHALLENGE: With the long-suffering Cornerstone catalog collection now back on track, HSN can return focus to building a bigger audience of regulars for the main TV shopping channel and bulking up its new second network with the right repurposed reruns to gain some sales with fatter profit margins. That also means finding more creative ways to make programs more entertaining. For the first time in years, HSN is looking at acquisitions and talking of relaunching an offshore venture. Hanging over management's head: the possibility that Liberty Interactive, which owns a third of HSN and all of its biggest TV shopping rival, QVC, will swoop in to buy the rest and merge the two if HSN's flush stock price suddenly sinks. HSN's top brass recently renegotiated their golden parachutes.
CEO Total Compensation: $12.1 million, up 298 percent. Includes base salary of $1.164 million; bonus of $2.118 million; and stock awards of $8.672 million.
6 Raymond James Financial, $2.98 billion in annual revenues, up 15 percent
BUSINESS: Investments, banking
ADDRESS: 800 Carillon Parkway, St. Petersburg 33716
CEO: Paul C. Reilly
EMPLOYEES: More than 5,300 financial advisers and more than 4,000 support associates
Financials for the year ended Sept. 30, 2010
NET INCOME: $228.3 million, up 49 percent
NET INCOME PER SHARE: $1.83, up 46 percent
RETURN ON EQUITY: 10.32 percent
TICKER SYMBOL: RJF, NYSE
FRIDAY CLOSE: $35.21
BIGGEST CHALLENGE: Raymond James' toughest challenge may be properly taking advantage of the opportunities ahead. "Thanks to our conservative approach, we have emerged from the worst economic crisis since the Great Depression in a strong position for growth," CEO Paul Reilly said. "With many of our competitors failing or being acquired, we have an opportunity to take ownership of the market space they have left open and cement ourselves as the premier alternative to Wall Street." The key, therefore, is finding the right people to hire and right firms to acquire.
CEO Total Compensation: $3.1 million. Includes a base salary of $409,000; a $2.18 million bonus; stock awards of $43,730; option awards of $271,551; and other compensation of $156,996. Reilly became CEO on May 1, 2010, replacing Tom James, who retained the title of chairman.
7 Cott Corp., $1.8 billion in annual revenues, up 13 percent
BUSINESS: World's largest retailer-brand beverage company
ADDRESS: 5519 W Idlewild Ave., Tampa 33634
CEO: Jerry Fowden
Financials for the year ended Jan. 1, 2011
NET INCOME: $54.7 million, down 33 percent.
NET INCOME PER SHARE: 63 cents, down 42 percent.
RETURN ON EQUITY: 11.35 percent
TICKER SYMBOL: COT, NYSE
FRIDAY CLOSE: $8.60
BIGGEST CHALLENGE: The single biggest challenge has been rising commodity costs. Cott buys a large amount of fruit juice, PET plastic resin, corn-based sweeteners and aluminum — all of which are becoming more expensive. Commodity costs are on track to rise about 8 percent in 2011 and "it is clear that commodities have been and will remain a headwind for food and beverage producers for the next several quarters and into 2012," CEO Jerry Fowden told analysts in a recent conference call.
CEO Total Compensation: $5.8 million, up 294 percent. Includes base salary of $625,313; stock awards of $3.08 million; stock option awards of $1.29 million; an annual bonus of $561,703; and other compensation of $229,128. Fowden became CEO on Feb. 19, 2009.
8 Lincare Holdings Inc., $1.6 billion in annual revenues, up 8 percent
BUSINESS: With 750,000 customers dependent on its oxygen and other home respiration therapies across 48 states, Lincare controls about a quarter of a $6 billion industry; the 21-year-old company is one of the biggest players in a highly fragmented industry served by more than 2,000 smaller regional services
ADDRESS: 19387 U.S. 19 N, Clearwater 33764
CEO: John P. Byrnes, chairman and CEO
EMPLOYEES: 10,225 at more than 1,000 locations
Financials for the year ended December 31, 2010
NET INCOME: $182 million, up 34 percent
NET INCOME PER SHARE: $1.87, up 34 percent
RETURN ON EQUITY: 19 percent
TICKER SYMBOL: LNCR, Nasdaq
FRIDAY CLOSE: $29.83
BIGGEST CHALLENGE: Like most medical service businesses, the uncertainty of how Obamacare unfolds hangs over Lincare. Not only does the company play in a highly regulated field where government rules are in a state of flux, it has been coping with reduced reimbursements for medical services, gets 60 percent of its revenues from Medicare and financially strapped state Medicaid programs. On the one hand, Obamacare will cover more Americans just when retiring baby boomers are most likely to need respiration therapy. On the other hand, government and insurance companies will try to pay less and less for it.
CEO Total Compensation: $2 million, only a fraction of the $19.75 million in 2009 when Byrnes was granted unusually large stock awards for performance and to extend his stay. 2010 compensation includes base salary of $921,000; performance bonuses totaling $1.013 million; and other compensation of $37,634.
9 Sykes Enterprises Inc., $1.2 billion in annual revenues, including an added $363 million from the acquisition of a company, up 42 percent
BUSINESS: A global provider of call center or customer contact management outsourcing services to Fortune 1000 companies in the communications (notably AT&T), financial services, health care, technology and transportation and leisure industries
ADDRESS: 400 N Ashley Drive, Tampa 33602
CEO: Charles "Chuck" Sykes
Financials for the year ended December 2010
NET INCOME: Loss of $10.3 million, compared with net income of $43.2 million in 2009
NET INCOME PER SHARE: Loss of 22 cents, compared with $1.05 earned per share in 2009
RETURN ON EQUITY: 6.99 percent
TICKER SYMBOL: SYKE, Nasdaq
FRIDAY CLOSE: $21.34
BIGGEST CHALLENGE: Sykes is coming off a large loss in net income in the same year that it acquired a Pennsylvania company called ICT Group for $278 million. Because of the weak global economy, the company is also dealing with a few more "end of life" contracts from clients that either no longer have the call center volume to require Sykes or cannot come to terms with the price of Sykes' services. A big reason for the pricing issue is the weak U.S. dollar that affects foreign currency transactions.
CEO Total Compensation: $2.3 million, down 19 percent from prior year. Includes $549,999 salary; $220,000 bonus; and $1 million stock award. In March of this year, Sykes' base salary increased to $625,000.
10 Kforce Inc., $990.8 million, up 9 percent
BUSINESS: Provides professional and tech staffing to companies and the federal government
ADDRESS: 1001 E Palm Ave., Tampa 33605
CEO: David Dunkel
EMPLOYEES: 2,000 core employees, plus about 10,400 temps on assignment
Financials for the year ended Dec. 31, 2010
NET INCOME: $20.6 million, up 60 percent
NET INCOME PER SHARE: 52 cents, up 58 percent
RETURN ON EQUITY: 9.37 percent, up 67 percent
TICKER SYMBOL: KFRC, Nasdaq
FRIDAY CLOSE: $13.36
BIGGEST CHALLENGE: Finding enough skilled workers to meet growing demand to fill tech staffing positions, says Michael Blackman, chief corporate development officer. And persuading clients to pay higher rates that tech professionals demand as the economy rebounds.
CEO Total Compensation: $8.2 million (total salary and compensation), up 21 percent from 2009. Includes base salary of $750,000; stock awards worth $6.3 million; and a $150,000 bonus.
Times staff writers Mark Albright, Jeff Harrington, Steve Huettel, Ivan Penn, Mark Puente and Robert Trigaux contributed to this report.