Business and Financial News
- Chick-fil-A Opening First Stand-Alone Restaurant in Clarksville on July 20; First 100 Adults in Line to Win Free Chick-fil-A Food for a Year
Chick-fil-A President Dan Cathy to Camp Outside With the Crowd at the New Restaurant on Veterans Parkway
-- Clarksville's newest stand-alone Chick-fil-A restaurant, complete with drive-thru service, an indoor playground and a full breakfast menu, will open July 20, when $26,000 in free Chick-fil-A food will be given away to the first 100 adults in line that morning.
A one-year supply of free Chick-fil-A® Combo Meals (52 coupons) will be given away to each of the first 100 adults, age 18 and older with identification, at the new free-standing restaurant at 1320 Veterans Parkway. The line can begin forming up to 24 hours prior to the opening, with the prizes being awarded on Thursday, July 20 between 6 a.m. and 6:30 a.m. The restaurant will open for business at 6:30 a.m.
"We've given away more than $3.5 million in free Chick-fil-A food since we launched the 'First 100 Fans' promotion in 2003 to celebrate each grand opening," said Cathy, son of the chain's founder Truett Cathy, who will spend the night outside with the crowd. "It's our way of thanking our raving fans who have supported Chick-fil-A and who continue to show their devotion by camping out in all kinds of weather conditions year-round, all across the country."
With overnight campers often arriving as early as 24 hours in advance and coming from hours away, the parking lot fills with tents, lawn chairs, and TVs while the crowd enjoys entertainment, games, food and even a midnight Chick-fil-A Icedream® party. "It becomes a big overnight tailgating party," said Cathy, who has camped out at more than 50 of the openings.
Indiana native Bryan Haag has been selected to operate the new stand-alone restaurant at Veterans Parkway and will be transferring from the Greentree Mall Chick-fil-A location. A graduate of ITT Technical Institute in Indianapolis, Haag has nearly six years of Chick-fil-A experience and is joined in the business by his daughters Keri and Sydney. He's married to Laurie and together they have four daughters.
The interior warm colors and wood accents of the Clarksville Chick-fil-A create a casual dining atmosphere that customers will appreciate, along with the conveniences of a drive-thru and indoor playground. The restaurant is open Monday through Saturday from 6:30 a.m. to 10 p.m.
The opening marks the 21st Chick-fil-A location in Indiana and is one of three expected to be built this year in the state, with other locations scheduled for Indianapolis and South Bend. The chain first entered the state 27 years ago with a location in Mishawaka's University Park Mall in March 1979.
Chick-fil-A founder Truett Cathy is marking several milestones this year, including the 60th year anniversary of the opening of his first restaurant, the Dwarf Grill® in Hapeville, Ga., from which the Chick-fil-A chain was launched. Also, the third generation entered the Chick-fil-A business with Cathy's grandson becoming a restaurant Operator in St. Petersburg, Fla. in January.
Chick-fil-A is the nation's second-largest quick-service chicken restaurant chain with more than 1,250 restaurants in 37 states and Washington D.C. The company reported 2005 system-wide sales of more than $1.975 billion, resulting in a 13.1 percent increase over 2004 figures and a positive 5.87 percent same-store sales performance. The chain expects to add more than 72 locations in 2006, including 61 stand-alone restaurants. For more information, visit www.chick-fil-a.com
Playboy Announces Cost Reduction Plan
-- Playboy Enterprises, Inc. (PEI) (NYSE:PLA) (NYSE:PLAA) today said that as part of its previously announced cost reduction plan it will be reducing the company's annual programming and editorial budgets by approximately $4.5 million, while also lowering other discretionary expenses. The company also said that it is eliminating approximately 30 positions, roughly half of which are presently open. Including an approximate $0.06 per share restructuring charge, PEI said that it expects to report a loss in the range of $0.10 to $0.13 per share for the second quarter ended June 30, 2006. The company plans to report full second- quarter earnings the week of August 7, 2006.
Playboy Enterprises is a brand-driven, international multimedia entertainment company that publishes editions of Playboy magazine around the world; operates Playboy and Spice television networks and distributes programming globally via DVD and a network of websites including Playboy.com, a leading men's lifestyle and entertainment website; and licenses the Playboy trademarks internationally for a range of consumer products and services.
FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements," including statements in Management's Discussion and Analysis of Financial Condition and Results of Operations, as to expectations, beliefs, plans, objectives and future financial performance, and assumptions underlying or concerning the foregoing. We use words such as "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues" and other similar terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which could cause our actual results, performance or outcomes to differ materially from those expressed or implied in the forward-looking statements. The following are some of the important factors that could cause our actual results, performance or outcomes to differ materially from those discussed in the forward-looking statements:
1) Foreign, national, state and local government regulation, actions or initiatives, including: a) attempts to limit or otherwise regulate the sale, distribution or transmission of adult-oriented materials, including print, television, video, and online materials, b) limitations on the advertisement of tobacco, alcohol and other products which are important sources of advertising revenue for us, or c) substantive changes in postal regulations or rates which could increase our postage and distribution costs; 2) Risks associated with our foreign operations, including market acceptance and demand for our products and the products of our licensees; 3) Our ability to manage the risk associated with our exposure to foreign currency exchange rate fluctuations; 4) Changes in general economic conditions, consumer spending habits, viewing patterns, fashion trends or the retail sales environment which, in each case, could reduce demand for our programming and products and impact our advertising revenues; 5) Our ability to protect our trademarks, copyrights and other intellectual property; 6) Risks as a distributor of media content, including our becoming subject to claims for defamation, invasion of privacy, negligence, copyright, patent or trademark infringement, and other claims based on the nature and content of the materials we distribute; 7) The risk our outstanding litigation could result in settlements or judgments which are material to us; 8) Dilution from any potential issuance of common or convertible preferred stock or convertible debt in connection with financings or acquisition activities; 9) Competition for advertisers from other publications, media or online providers or any decrease in spending by advertisers, either generally or with respect to the adult male market; 10) Competition in the television, men's magazine, Internet and product licensing markets; 11) Attempts by consumers or private advocacy groups to exclude our programming or other products from distribution; 12) Our television, Internet and wireless businesses' reliance on third parties for technology and distribution, and any changes in that technology and/or unforeseen delays in its implementation which might affect our plans and assumptions; 13) Risks associated with losing access to transponders and competition for transponders and channel space; 14) Failure to maintain our agreements with multiple system operators and direct-to-home operators on favorable terms, as well as any decline in our access to, and acceptance by, direct-to-home and/or cable systems and the possible resulting deterioration in the terms, cancellation of fee arrangements or pressure on splits with operators of these systems; 15) Risks that we may not realize the expected increased sales and profits and other benefits from acquisitions; 16) Any charges or costs we incur in connection with restructuring measures we may take in the future; 17) Risks associated with the financial condition of Claxson Interactive Group, Inc., our Playboy TV-Latin America, LLC, joint venture partner; 18) Increases in paper, printing or postage costs; 19) Risks associated with revenue guarantees under our cable distribution agreements; 20) Effects of the national consolidation of the single-copy magazine distribution system; and 21) Risks associated with the viability of our primarily subscription- and e-commerce-based Internet model.
Source: Playboy Enterprises, Inc.
Timberland Bancorp, Inc. Announces a 13% Increase in Its Quarterly Dividend
Timberland Bank Hires John Norawong to Manage Mortgage Lending Operations
The Board of Directors of Timberland Bancorp, Inc. (NASDAQ: TSBK) has declared a quarterly cash dividend of $0.18 per share of common stock for shareholders of record August 9, 2006, payable August 23, 2006. The dividend of $0.18 per share represents a 13% increase over the prior quarter's dividend of $0.16 per share. This will be the 34th consecutive quarter that Timberland has paid a cash dividend.
John Norawong was hired by Timberland Bank to manage the Bank's mortgage lending operations. Mr. Norawong comes to Timberland after serving seven years with Keybank where he was most recently Senior Vice President and Department Manager. During his tenure with KeyBank, Mr. Norawong managed all aspects of Corporate Banking activities in Tacoma, Washington. Concurrent with his responsibilities in Tacoma he established and managed a new commercial banking team for KeyBank in San Francisco, California to serve the California market.
"We look forward to the contributions John will make in managing Timberland's mortgage lending operations," stated Michael Sand, Timberland's President and CEO. "John brings a disciplined approach to managing and business development and we are pleased to have him join our management team," Sand also stated.
Timberland Bancorp, Inc. is the holding company for Timberland Bank, a western Washington-based financial institution since 1915. The Bank operates branches in the state of Washington in Hoquiam, Aberdeen, Ocean Shores, Montesano, Elma, Lacey, Tumwater, Olympia, Yelm, Puyallup, Edgewood, Tacoma, Bethel Station (Spanaway), Gig Harbor, Silverdale, Poulsbo, Auburn, Winlock and Toledo. Timberland Bancorp, Inc. stock trades on the NASDAQ global market under the symbol "TSBK."
Disclaimer
This report contains certain "forward-looking statements." The Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protection of such safe harbor with forward-looking statements. These forward-looking statements may describe future plans or strategies and include the Company's expectations of future financial results. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives. These risk factors include but are not limited to the effect of interest rate changes, competition in the financial services market for both deposits and loans as well as regional and general economic conditions. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements. The Company's ability to predict results or the effect of future plans or strategies is inherently uncertain and undue reliance should not be placed on such statements
Costco Wholesale Corporation Announces Quarterly Cash Dividend and Plan to Purchase Up to an Additional $2 Billion of Costco Common Stock
Costco Wholesale Corporation (NASDAQ: COST) today announced that its Board of Directors has declared a quarterly cash dividend on Costco Wholesale common stock. The dividend of $.13 per share is payable August 25, 2006, to shareholders of record at the close of business on August 1, 2006.
The Company also announced today that its Board of Directors authorized an additional common stock repurchase program of up to $2 billion. This is in addition to the $2.5 billion amount previously authorized by the Board, of which approximately $1.69 billion has been expended since June 2005, repurchasing approximately 34 million shares.
Costco currently operates 481 warehouses, including 352 in the United States and Puerto Rico, 68 in Canada, 18 in the United Kingdom, five in Korea, four in Taiwan, five in Japan and 29 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada. The Company plans to open an additional seven new warehouses, including the relocation of one warehouse to a larger and better-located facility, prior to the end of its 53-week 2006 fiscal year, on September 3, 2006.
VOIP5000 Commences Trading on Frankfurt Exchange, Sets Date for CLIXME Launch in Germany
VOIP5000, Inc. (PINKSHEETS: VPFV) (FRANKFURT: VQC) , today announced that it has been approved to commence trading on the Frankfurt stock exchange under ticker symbol VQC.F. "Listing on the exchange enables VOIP5000 to communicate its value and growth to the international investment community and gain access to global capital markets," said CEO Fotis Georgiadis.
The Frankfurt Stock Exchange is the world's third largest trading center for securities and Germany's largest exchange. It is responsible for 90 percent of the securities trading volume in Germany. The Exchange facilitates advanced electronic trading, settlement and information systems and enables cross-border trading for international investors. For more information, please visit http://deutsche-boerse.com
In other news, the company says that it has set August 1, 2006, as the official launch date for its CLIXME "Click to Call" service into the German market. The German Internet market consists of over 21% of all European Union Internet. Presently there are over 48 million Internet users in Germany, a number slated to grow to over 86 million by 2007. The company says that Germany is just a launching pad for launches into other European countries. It has targeted the UK, France, Italy, and Greece as up and coming launches for its service. "We've seen tremendous growth of the CLIXME service here in the US, it is only natural to assume we'll see bigger growth in Germany where many of our US competitors haven't begun providing service," said Mr. Georgiadis. "The European market for Click to Call services is virtually untapped," he continued.
According to the company, it is still ironing out exclusive reseller agreements with 2 prominent Internet services companies in Germany. "By partnering with the biggest providers in Germany, we will immediately have gained access to a huge market of customers that are already doing business online," said Mr. Georgiadis.
WHAT IS CLIXME?
CLIXME is a state of the art, ''click to call'' service that allows website visitors to request a call from a website owner or one of their departments by entering their telephone number in the CLIXME box. Clixme then immediately calls the telephone number of the website owner alerting them and asking them to accept the call. When they accept the call, CLIXME calls the website visitor's telephone number and immediately connects both parties in a live telephone call. A complete profile of the service can be found at the CLIXME site: www.clixme.com
About VOIP5000, Inc.: http://www.voip5000.com
Note: All statements, other than statements of fact, included in this release, may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company cautions that such matters necessarily involve significant risks and uncertainties that could cause actual operating results to differ materially from such statements, including, without limitation: (i) competition, (ii) fluctuations in demand and supply of our target markets, including Internet based telephone operations (iii) risks associated with new business ventures. Investors are advised to seek professional advice and conduct a complete due diligence regarding this, or any other company being considered for investment purposes. Investing in securities, particularly in issues priced at less than $1 per share, involves substantial risk and may result in a partial or complete loss of investment capital. Press releases issued by the company should not be interpreted as an offer to sell or a solicitation to buy company stock.
Los Angeles Orthopaedic Hospital Sells 9.5-Acre Parcel Adjacent to Its Downtown Medical Center
Sale of Valuable Land to Enhance Hospital's Treatment and Research Mission
Los Angeles Orthopaedic Hospital (LAOH) announced today that it has sold a 9.45-acre parcel of its 12.5-acre downtown campus to G.H. Palmer Associates in an all-cash transaction. "This is a tremendous advance for Orthopaedic Hospital's mission," said James V. Luck, Jr., MD, president, CEO and medical director. "This money will allow us to continue our growth and expand our research to better treat children and adults with orthopaedic disorders and support our education of musculoskeletal professionals." He points out that by moving Orthopaedic Hospital's inpatient services to Santa Monica in a partnership with UCLA, and selling the aging hospital building on the 9.45-acre parcel, the Hospital was able to reduce operating costs by as much as $5 million per year. Downtown, they will continue to serve more patients than any orthopaedic facility in the country -- over 60,000 visits each year.
Orthopaedic Hospital will maintain its steadfast commitment to serving the downtown community, and to care for young patients with crippling disorders, regardless of their families' ability to pay for treatment. The 40,000-square foot outpatient facility that opened in 2003 on the downtown campus provides care for pediatric orthopaedic conditions, adult chronic musculoskeletal disorders, pediatric trauma, and occupational medicine. A soon-to-be-built universally accessible playground, made possible by a grant from the Everychild Foundation, will begin construction in September 2006 on the downtown campus. Adjacent to the downtown Medical Center is the Orthopaedic Hospital Medical Magnet High School that provides hands-on teaching for students interested in the physician, nursing and other health care professions.
Richard Plummer, senior director at Cushman & Wakefield, which obtained the exclusive broker listing, handled the sale. G.H. Palmer Associates is responsible for the development of several high-end apartment complexes in the downtown vicinity, and has been credited for playing an instrumental role in supporting the downtown residential and entertainment renaissance.
To make way for this land sale, in 2005 Orthopaedic Hospital moved its inpatient and surgical facilities to a location at the Santa Monica-UCLA Medical Center campus in Santa Monica, where a new inpatient Orthopaedic Hospital is under construction. The new building will feature state-of-the-art facilities and equipment, as well as one of the leading orthopaedic residency training programs in the United States.
About Orthopaedic Hospital
Orthopaedic Hospital (OH) is a recognized world leader in patient care, teaching and research in orthopaedic medicine, resulting in an improved quality of life for children and adults with crippling disorders. For nearly a century, OH has been helping children afflicted with crippling conditions lead healthy, active lives, regardless of their families' ability to pay. The Hospital has been, and continues to be, supported by the Los Angeles Orthopaedic Hospital Foundation. OH is expanding both its treatment and research facilities. In a partnership with UCLA, a new inpatient hospital and residency program for orthopaedic surgery is being established in Santa Monica (opening 2009) and the new Orthopaedic Hospital Research Center will be the largest and most sophisticated musculoskeletal research facility in the world (opening early 2007 on the UCLA campus). www.orthohospital.org.
Community Bancorp Announces Assets Over $1 Billion With Record Earnings in the Second Quarter of 2006
HIGHLIGHTS OF THE QUARTER
-- Loan growth of 71.3% year-over-year. -- Deposit growth of 57.4% year-over-year. -- Quarter net income up 86.3% year-over-year. -- Quarter diluted earnings per share up 72.4% year-over-year. -- Announced the signing of a definitive agreement to acquire Valley Bancorp, an in-market Las Vegas-based bank with $407.7 million in assets as of March 31, 2006.
Community Bancorp (NASDAQ: CBON), the bank holding company for Community Bank of Nevada, with $1.0 billion in assets, today announced financial results for the second quarter ended June 30, 2006.
Net income for the second quarter of 2006 increased 86.3% year-over-year to $3.8 million, or $0.50 per fully diluted share, compared with $2.0 million, or $0.29 per fully diluted share, for the same period in 2005, despite a reduction of $0.06 per fully diluted share for the quarter due to the implementation of FASB Statement No. 123R. We recognized $717 thousand in share-based compensation pretax expense for the first half of 2006, of which $642 thousand was recognized in the second quarter of 2006.
Our return on average equity (ROE) and return on average assets (ROA) for the second quarter of 2006 were 13.35% and 1.52%, respectively, compared to 9.99% and 1.32%, respectively, for the second quarter of 2005. For the first half of 2006, ROE and ROA were 12.96% and 1.52%, respectively, compared to 11.03% and 1.44%, respectively, for the first half of 2005.
"We are very encouraged by another strong quarter with 43.3% annualized organic loan growth for the first six months of the year. Over the past two years we have invested in the infrastructure to support our growth. Our investment is paying off as additional scale has led to improved efficiencies, resulting in increased net income and profitability," said Edward M. Jamison, President, Chief Executive Officer and Chairman of the Board.
"Our year to date progress parallels our strategic plan as we continue to expand our Las Vegas presence and build a platform that can accommodate additional volume from new high growth markets. Year to date, our assets grew $116.8 million, or 26.2% on an annualized basis. In addition to our acquisition of Bank of Commerce in August 2005, and its three branches, as well as the recent announcement of our acquisition of Valley Bank and its five branches, we continue to open de novo branches in attractive locations and plan to open a branch in Centennial Hills in northwest Las Vegas by year end. This will give us 15 branches in our primary market. We welcome the future addition of Valley employees as they will be instrumental in assisting us in our continued growth for the balance of the year and into 2007," said Mr. Jamison.
Operating Results
During the second quarter of 2006, total interest and dividend income was $19.3 million, compared with $9.7 million in the same quarter of 2005 and $36.0 million for the first half of 2006 compared to $18.4 million for the first half of 2005. The increase in total interest and dividend income was primarily attributed to a 60.2% increase in average earning assets for the second quarter 2006 compared to the same quarter in 2005 and the escalation of the yields on those assets, as well as an increase in our net interest margin to 5.35% from 5.09%.
Total interest expense for the second quarter of 2006 was $6.9 million, compared with $2.3 million for the second quarter of 2005 and $12.3 million for the first half of 2006 compared to $4.5 million for the first half of 2005. The increase in total interest expense resulted from the growth in deposits and increased deposit rates. Also, in the first half of 2006, we increased our Federal Home Loan Bank (FHLB) long term borrowings by $40 million to support our loan growth.
Net interest income for the second quarter of 2006 was $12.4 million, an increase of 68.2% over $7.4 million in the same quarter of 2005 and $23.7 million for the first half of 2006, an increase of 70.3% over $13.9 million for the first half of 2005.
The net interest margin increased to 5.37% for the first half of 2006 compared to 4.79% for the first half of 2005 and 5.35% for the second quarter of 2006 compared to 5.09% for the second quarter of 2005 based on the strong loan growth, the asset sensitivity of the balance sheet and a general rise in interest rates. Net interest margin decreased minimally from 5.39% for the first quarter of 2006, despite two interest rates increases during the second quarter of 2006.
Non-interest income was $530 thousand for the second quarter of 2006, an increase of 26.5% over $419 thousand in the second quarter of 2005 and $1.1 million for the first half of 2006 compared to $795 for the first half of 2005. The increase in non-interest income is primarily due to an increase in overdraft, wire and ATM fees attributed to the increased branch network, partially offset by a decrease in income from bank owned life insurance in the first half of 2006.
Non-interest expense was $6.6 million for the quarter ending June 30, 2006, an increase of 42.2% over $4.6 million for the second quarter ending June 30, 2005 and $12.3 million for the first half of 2006 compared to $8.1 million for the first half of 2005. The increase was primarily attributable to expenses associated with salaries and employee benefits due to the addition of new employees from the acquisition of Bank of Commerce, the opening of the Russell Office and the investment in key personnel. In addition, the expense associated with the implementation of FAS 123R and additional grants of stock options in the second quarter of 2006 impacted earnings before tax by $642 thousand for the second quarter of 2006. Also contributing to the increase were professional fees related to our compliance with Section 404 of Sarbanes-Oxley and other requirements of being a public company. The occupancy expenses associated with operating the expanded branch network also impacted our non-interest expense, which increased 114.0% to $1.6 million in the first half of 2006 from $727 thousand in the first half of 2005. In addition, we recognized $381 thousand in expense in the first half of 2006 due to the amortization of the core deposit intangible associated with our Bank of Commerce merger in August 2005.
Our efficiency ratio improved to 51.1% for the second quarter of 2006 compared to 59.6% for the second quarter of 2005 and 49.6% for the first half of 2006 compared to 54.9% for the first half of 2005 despite increased occupancy and salary costs related to our growth.
Balance Sheet Management
Our gross loans increased 71.3% (43.3% annualized organic growth) to $806.9 million compared to $471.1 million as of June 30, 2005 and increased 21.6%, or $143.5 million, in the first half of 2006 compared to $663.4 million as of December 31, 2005. Construction and land development loans represented the largest increase, with an increase of 114.9% to $442.4 million from $205.9 million as of June 30, 2005. Commercial and industrial loans grew 50.6% to $120.9 million from $80.3 million a year ago. Real estate secured loans represented 84% of total loans at June 30, 2006, compared to 82% of total loans as of June 30, 2005.
Total deposits were $793.4 million at June 30, 2006 (18.9% annualized organic growth), up from $504.1 million at June 30, 2005 and $725.1 million at December 31, 2005. The year over year increase in deposits was attributable primarily to the acquisition of Bank of Commerce and the focus on supplementing core deposits with wholesale funding.
Stockholders' equity increased by 39.9% to $114.2 million at June 30, 2006, compared to $81.6 million at June 30, 2005 and up by 7.0% from $106.7 million at December 31, 2005. The year over year increase is primarily due to the issuance of stock for the Bank of Commerce acquisition in August 2005 and the increase in net income. Book value per share was $15.46 at June 30, 2006, compared to $12.08 at June 30, 2005 and $14.47 at December 31, 2005.
"We continue to operate with a philosophy that if our market provides jobs and population growth among the highest in the nation, we as management have an obligation to assemble a team of banking professionals that also come with very high expectations. We are most pleased that through the first half of 2006, our earnings and balance sheet growth reflect the satisfaction of these high standards we have established," said Larry Scott, President of Community Bank of Nevada and Chief Operating Officer.
"The prospect of adding the attractive branch network, balance sheet and very talented employees of Valley Bank in the fourth quarter of 2006 provides us great optimism. As Southern Nevada is forecasted to retain its ranking in economic expansion over the short term, we believe that we are extremely well positioned to increase our percentage of market share," said Mr. Scott.
Asset Quality and Capital Ratios
As a result of conducting our quarterly allowance for loan losses ("ALLL") analysis, which considers asset quality, loan growth, changes in loan mix and other qualitative factors, it was determined that a $625 thousand addition to the provision for loan losses was appropriate based on the strong loan growth for the second quarter of 2006 compared to a $91 thousand addition during the second quarter of 2005 and a $982 thousand addition for first quarter of 2006. As of June 2006, our non-performing loans ("NPLs") increased to $1.7 million compared to $626 thousand as of June 2005, and from $915 thousand at December 31, 2005. The percentage of NPLs to total loans increased to 0.21% at June 30, 2006, compared to 0.13% at June 30, 2005. Additionally, we reported net recoveries of $7 thousand for the three months ended June 30, 2006 compared to net charge-offs of $179 thousand for the same period in 2005 and net recoveries of $6 thousand for the first half of 2006 compared to net charge-offs of $156 thousand for the first half of 2005.
"The board and senior management recognize that the maintenance of asset quality is fundamental to the sound operation of the bank. We monitor very closely the ability of our borrowers to deal with higher interest rates in the current economic climate, and the impact those rates will ultimately have on overall economic activity. Senior management stresses the importance of maintaining discipline in the underwriting process, and the fruits of such discipline are reflected in the sound asset quality numbers evident in the second quarter. Such numbers, combined with strong capital ratios, robust management oversight of the credit process, and a sensitivity to a fluid economic environment, support the quarter-end ALLL level of 1.21%," stated Don Bigger, Executive VP, Credit Administrator.
Our capital ratios continue to be above the well-capitalized guidelines established by bank regulatory agencies.
Announced Acquisition
On June 28, 2006, the Company announced the signing of a definitive agreement to acquire Valley Bancorp, a community bank headquartered in Las Vegas, for approximately $137 million in consideration consisting of an aggregate mix of 75% stock and 25% cash, subject to adjustment. The transaction is expected to close during the fourth quarter of 2006.
Business Strategy
Commenting on the outlook and business strategy for the company, Mr. Jamison said, "We are very encouraged by our second quarter results in growth in loans, assets, income and our net interest margin. With the current interest rate environment, the increase in our year over year net interest margin is indicative of our balance sheet sensitivity at this time. We anticipate closing on the Valley Bank transaction in the fourth quarter which should move us forward into 2007. The transaction is expected to be immediately accretive and is expected to be even more favorable as we look at the synergies and savings that may occur. We plan to continue our strategy of pursuing strong organic growth, opening new branch facilities and hiring the best available employees in the market place."
Mr. Jamison continued, "We anticipate leveraging our capital and improving the efficiency ratio, which will contribute to higher profitability. With strong capital, strong growth, excellent asset quality, talented management and growing profitability, we are excited about the future. Since our initial public offering, we have consistently stated that our plan was to broaden our branch footprint in our home market and look for special synergistic acquisitions in other high growth markets such as Arizona and the 'Inland Empire' in Southern California. The acquisition of Valley Bank will expand our branch footprint in Las Vegas, while adding to the depth of our management team."
For more information about Community Bank of Nevada, visit our website at www.communitybanknv.com.
About Community Bancorp
Community Bancorp is a bank holding company that was established in 2002. Community Bank of Nevada, the only operating subsidiary of Community Bancorp, is a state chartered bank headquartered in Las Vegas, Nevada that began operations in 1995. We operate nine full service branches in southern Nevada and two loan production offices in Phoenix and San Diego.
Forward-Looking Statements
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, the economic condition of the Las Vegas market, net interest margin, loan quality, the ability to control costs and expenses, interest rate changes and financial policies of the United States government, and general economic conditions. Additional information on these and other factors that could affect financial results are included in our Securities and Exchange Commission filings.
When used in this release, the words or phrases such as "will likely result in," "management expects that," "will continue," "is anticipated," "estimate," "projected," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Community Bancorp undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. This statement is included for the express purpose of protecting Community Bancorp and PSLRA's safe harbor provisions.
Securities Law Matters
This News Release may be deemed to be solicitation material in respect to the proposed transaction between Community Bancorp and Valley Bancorp pursuant to an Agreement to Merge and Plan of Reorganization, dated as of June 28, 2006 by and among Community Bancorp and Valley Bancorp. While this News Release relates primarily to the second quarter 2006 financial results of Community Bancorp, because of the pending acquisition of Valley Bancorp, the filing of this News Release is being made in connection with Rules 165, 425 and 14a-12 promulgated by the Securities and Exchange Commission ("SEC").
In connection with the proposed acquisition of Valley Bancorp, Community Bancorp will file with the SEC a registration statement on SEC Form S-4. The registration statement will contain a joint proxy statement/prospectus which will describe the proposed transaction and its proposed terms and conditions. Shareholders of Community Bancorp and Valley Bancorp are encouraged to read the registration material and proxy statement/prospectus before making any voting or investment decisions because these documents will contain important information about the transaction. A definitive joint proxy statement will be sent to the shareholders of Community Bancorp and Valley Bancorp seeking required shareholder approvals of Community Bancorp's acquisition of Valley Bancorp. A copy of the Agreement was filed with the SEC as an exhibit to Community Bancorp's 8-K filed June 30, 2006, a separate filing from the Form S-4. The registration statement, the Form 8-K and all other documents filed with the SEC in connection with the transaction will be available for free when filed, both on SEC's web-site (www.sec.gov) or by contacting Cathy Robinson, Executive Vice President and Chief Financial Officer, Community Bancorp, 400 South 4th Street, Las Vegas, Nevada 89101. Additionally, all forms filed with the SEC and additional shareholder information are available free of charge on Community Bancorp's web-site: www.communitybanknv.com. Community Bancorp posts these reports to its web-site as soon as reasonably practicable after filing them with the SEC. None of the information on or hyper-linked from Community Bancorp's web-site is incorporated into this News Release.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the three months ended June 30, -------------------------------------- 2006 2005 % Change ----------- ------------ ------------ (Dollars in thousands, except per share data) Interest and dividend income: Loans, including fees $ 17,530 $ 8,369 109.5% Securities: Taxable 688 646 6.5% Non-Taxable 209 208 0.5% Federal funds sold 734 410 79.0% Equity securities 60 43 39.5% Other 42 -- 100.0% ----------- ------------ ----------- Total interest and dividend income 19,263 9,676 99.1% ----------- ------------ ----------- Interest expense on: Deposits 5,543 2,051 170.3% Short term borrowings 160 4 3900.0% Long term debt 525 -- 100.0% Junior subordinated debt 638 251 154.2% ----------- ------------ ----------- 6,866 2,306 197.7% ----------- ------------ ----------- Net interest income 12,397 7,370 68.2% Provision for loan losses 625 91 586.8% ----------- ------------ ----------- Net interest income after provision for loan losses 11,772 7,279 61.7% ----------- ------------ ----------- Other income: Service charges and other income 434 289 50.2% Income from bank owned life insurance 85 126 -32.5% Rental income 35 -- 100.0% Net gain on sales of loans (24) 4 -700.0% ----------- ------------ ----------- 530 419 26.5% ----------- ------------ ----------- Other expenses: Salaries, wages and employee benefits 3,881 2,574 50.8% Occupancy, equipment & depreciation 815 367 122.1% Professional fees 277 198 39.9% Advertising and public relations 337 187 80.2% Data processing 201 164 22.6% Core deposit intangible amortization 190 -- 100.0% Stationery and supplies 124 84 47.6% Telephone and postage 89 54 64.8% Insurance 84 68 23.5% Director fees 42 34 23.5% Loan related 51 44 15.9% Software maintenance 59 21 181.0% Stock appreciation rights 24 677 -96.5% Foreclosed assets, net - 6 -100.0% Other 425 163 160.7% ----------- ------------ ----------- 6,599 4,641 42.2% ----------- ------------ ----------- Income before income taxes 5,703 3,057 86.6% Income tax expense 1,940 1,037 87.1% ----------- ------------ ----------- Net income $ 3,763 $ 2,020 86.3% =========== ============ =========== Earnings per share: Basic $ 0.51 $ 0.30 70.0% Diluted $ 0.50 $ 0.29 72.4% For the six months ended June 30, -------------------------------------- 2006 2005 % Change ----------- ------------ ------------ (Dollars in thousands, except per share data) Interest and dividend income: Loans, including fees $ 32,960 $ 15,724 109.6% Securities: Taxable 1,430 1,243 15.0% Non-Taxable 420 420 0.0% Federal funds sold 1,000 943 6.0% Equity securities 107 52 105.8% Other 42 -- 100.0% ----------- ------------ ----------- Total interest and dividend income 35,959 18,382 95.6% ----------- ------------ ----------- Interest expense on: Deposits 9,914 3,993 148.3% Short term borrowings 323 9 3488.9% Long term debt 800 -- 100.0% Junior subordinated debt 1,248 480 160.0% ----------- ------------ ----------- 12,285 4,482 174.1% ----------- ------------ ----------- Net interest income 23,674 13,900 70.3% Provision for loan losses 1,607 91 1665.9% ----------- ------------ ----------- Net interest income after provision for loan losses 22,067 13,809 59.8% ----------- ------------ ----------- Other income: Service charges and other income 883 531 66.3% Income from bank owned life insurance 126 250 -49.6% Rental income 73 -- 100.0% Net gain on sales of loans (24) 14 -271.4% ----------- ------------ ----------- 1,058 795 33.1% ----------- ------------ ----------- Other expenses: Salaries, wages and employee benefits 6,905 5,062 36.4% Occupancy, equipment & depreciation 1,556 727 114.0% Professional fees 635 478 32.8% Advertising and public relations 491 263 86.7% Data processing 456 315 44.8% Core deposit intangible amortization 381 --- 100.0% Stationery and supplies 203 157 29.3% Telephone and postage 164 104 57.7% Insurance 164 127 29.1% Director fees 145 123 17.9% Loan related 110 76 44.7% Software maintenance 93 46 102.2% Stock appreciation rights 42 349 -88.0% Foreclosed assets, net - (187) -100.0% Other 929 424 119.1% ----------- ------------ ----------- 12,274 8,064 52.2% ----------- ------------ ----------- Income before income taxes 10,851 6,540 65.9% Income tax expense 3,663 2,138 71.3% ----------- ------------ ----------- Net income $ 7,188 $ 4,402 63.3% =========== ============ =========== Earnings per share: Basic $ 0.97 $ 0.65 49.2% Diluted $ 0.96 $ 0.64 50.0% CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, 2006 2005 2005 ------------- ------------- ------------- (Dollars in thousands, except share data) Assets Cash and due from banks $ 27,195 $ 16,142 $ 22,221 Federal funds sold 44,611 58,970 64,683 ------------- ------------- ------------- Cash and cash equivalents 71,806 75,112 86,904 Securities available for sale 80,172 83,447 92,777 Securities held to maturity (fair market value approximates $1,378; $1,671 and $1,601) 1,358 1,613 1,566 Investment in Federal Home Loan Bank (FHLB), Federal Reserve Bank (FRB) and Pacific Coast Bankers Bank (PCBB) stock 5,028 2,896 2,861 Loans, net of allowance for loan losses of $9,730; $6,068 and $8,117 793,598 462,461 651,574 Premises and equipment, net 14,824 9,825 15,136 Accrued interest receivable 4,384 2,279 3,770 Deferred tax assets, net 1,266 2,557 320 Bank owned life insurance 9,824 9,444 9,698 Goodwill 18,868 --- 19,698 Core deposit intangible, net 4,697 --- 5,077 Other assets 3,688 1,497 3,327 ------------- ------------- ------------- Total assets $ 1,009,513 $ 651,131 $ 892,708 ============= ============= ============= Liabilities and Stockholders' Equity Deposits: Non-interest bearing demand $ 174,636 $ 129,231 $ 196,411 Interest bearing: Demand 379,534 241,762 337,803 Savings 5,668 5,032 6,592 Time, $100,000 or more 87,290 58,053 74,504 Other time 146,305 69,984 109,778 ------------- ------------- ------------- Total deposits 793,433 504,062 725,088 ------------- ------------- ------------- Short term borrowings 16,000 45,000 16,000 Long term borrowings 43,500 --- 3,500 Accrued stock appreciation rights 400 2,763 357 Accrued interest payable and other liabilities 5,925 2,206 4,931 Junior subordinated debt 36,083 15,464 36,083 ------------- ------------- ------------- 101,908 65,433 60,871 ------------- ------------- ------------- Stockholders' Equity: Common stock, par value: $0.001; shares authorized: 10,000,000; shares issued: June 2006: 7,421,444; June 2005: 6,789,222 and December 2005: 7,409,087 7 7 7 Additional paid-in capital 72,105 51,295 71,199 Retained earnings 43,951 31,100 36,763 Accumulated other comprehensive (loss) income (1,606) (302) (935) ------------- ------------- ------------- 114,457 82,100 107,034 Less cost of treasury stock, 34,375 shares (285) (285) (285) Less notes receivable arising from the exercise of common stock options -- (179) -- ------------- ------------- ------------- Total stockholders' equity 114,172 81,636 106,749 ------------- ------------- ------------- Total liabilities and stockholders' equity $ 1,009,513 $ 651,131 $ 892,708 ============= ============= ============= SUMMARY CONSOLIDATED FINANCIAL DATA AND OTHER DATA (Unaudited) 2nd 2nd % CHANGE Quarter Quarter 2Q:06 vs. 2006 2005 2Q:05 --------- --------- --------- (Dollars in thousands, except share and percentage data) Share Data: Earnings per share -- basic $ 0.51 $ 0.30 70.0% Earnings per share -- diluted 0.50 0.29 72.4% Book value per share Shares outstanding at period end Weighted average shares outstanding -- basic 7,385,382 6,752,678 9.4% Weighted average shares outstanding -- diluted 7,506,239 6,869,685 9.3% Selected Other Balance Sheet Data: Average assets $ 989,892 $ 610,331 62.2% Average earning assets 926,708 578,555 60.2% Average stockholders' equity 112,741 80,883 39.4% Gross loans Selected Financial Ratios: Return on average assets 1.52% 1.32% 15.2% Return on average stockholders' equity 13.35% 9.99% 33.6% Net interest margin (1) 5.35% 5.09% 5.1% Efficiency Ratio (2) 51.05% 59.58% -14.3% Capital Ratios: Average stockholders' equity to average assets 11.39% 13.25% -14.0% Leverage Ratio Tier 1 Risk-Based Capital ratio Total Risk-Based Capital ratio Selected Asset Quality Ratios: Non-performing loans (3) Non-performing assets (4) Non-performing loans to total loans Non-performing assets to total assets Allowance for loan losses to total loans Allowance for loan losses to non-performing loans Allowance for loan losses to non-performing assets Net charge-offs (recoveries) to average loans 0.00% 0.04% -100.0% % CHANGE 1st Half 1st Half 1H:06 vs. 2006 2005 1H:05 --------- --------- --------- (Dollars in thousands, except share and percentage data) Share Data: Earnings per share -- basic $ 0.97 $ 0.65 49.2% Earnings per share -- diluted 0.96 0.64 50.0% Book value per share 15.46 12.08 28.0% Shares outstanding at period end 7,387,069 6,754,847 9.4% Weighted average shares outstanding -- basic 7,384,003 6,750,973 9.4% Weighted average shares outstanding -- diluted 7,496,809 6,870,482 9.1% Selected Other Balance Sheet Data: Average assets $ 945,523 $ 611,533 54.6% Average earning assets 881,644 579,868 52.0% Average stockholders' equity 110,952 79,855 38.9% Gross loans 806,873 471,107 71.3% Selected Financial Ratios: Return on average assets 1.52% 1.44% 5.6% Return on average stockholders' equity 12.96% 11.03% 17.5% Net interest margin (1) 5.37% 4.79% 12.1% Efficiency Ratio (2) 49.63% 54.88% -9.6% Capital Ratios: Average stockholders' equity to average assets 11.73% 13.05% -10.1% Leverage Ratio 13.16% 15.88% -17.1% Tier 1 Risk-Based Capital ratio 13.95% 17.60% -20.7% Total Risk-Based Capital ratio 15.02% 18.70% -19.7% Selected Asset Quality Ratios: Non-performing loans (3) $ 1,685 $ 626 169.2% Non-performing assets (4) 1,685 626 169.2% Non-performing loans to total loans 0.21% 0.13% 61.5% Non-performing assets to total assets 0.17% 0.10% 70.0% Allowance for loan losses to total loans 1.21% 1.29% -6.2% Allowance for loan losses to non-performing loans 577.5% 969.3% -40.4% Allowance for loan losses to non-performing assets 577.5% 969.3% -40.4% Net charge-offs (recoveries) to average loans 0.00% 0.04% -100.0% (1) Net interest margin represents net interest income as a percentage of average interest-earning assets. (2) Efficiency ratio represents non-interest expenses, excluding loan loss provision, as a percentage of the aggregate of net interest income and non-interest income. (3) Non-performing loans are defined as loans that are past due 90 days or more plus loans placed in non-accrual status. (4) Non-performing assets are defined as assets that are past due 90 days or more plus assets placed in non-accrual status plus other real estate owned. CONSOLIDATED AVERAGE BALANCES (Unaudited) Three months ended June 30, 2006 --------------------------- Average Interest Average Balance Income or Yield or Expense Cost (7) -------- ---------- ------- (Dollars in thousands, except percentage data) Assets Interest-earning assets: Loans (1)(2)(3) $ 770,993 $ 17,530 9.09% Investment securities -- taxable 64,454 688 4.27% Investment securities -- non-taxable (3) 22,289 209 3.75% Federal funds sold 61,189 734 4.80% Other investments (4) 7,783 102 5.24% --------- --------- ------- Total interest-earning assets 926,708 19,263 8.31% Non-earning assets: Cash and due from banks 19,272 Unearned loan fees (3,791) Allowance for loan losses (9,232) Goodwill & intangible 23,660 Other assets 33,275 --------- Total assets $ 989,892 ========= Liabilities and Stockholders' Equity Interest-bearing Liabilities: Deposits: Interest-bearing demand $ 47,588 $ 258 2.17% Money market 314,384 2,883 3.67% Savings 6,067 11 0.73% Time certificates of deposit 227,176 2,391 4.21% --------- --------- ------- Total interest-bearing deposits 595,215 5,543 3.73% Short-term borrowings 16,000 160 4.00% Long-term debt 43,500 525 4.83% Junior subordinated debt 36,083 638 7.07% --------- --------- ------- Total interest-bearing liabilities 690,798 6,866 3.98% Non-interest-bearing liabilities: Demand deposits 178,607 Other liabilities 7,746 -------- Total liabilities 877,151 Stockholders' equity 112,741 --------- Total liabilities and stockholders' equity $ 989,892 ========= Net interest income $ 12,397 ========= Net interest spread (5) 4.33% Net interest margin (6) 5.35% ======= Three months ended June 30, 2005 --------------------------- Average Interest Average Balance Income or Yield or Expense Cost (7) --------- --------- ------- (Dollars in thousands, except percentage data) Assets Interest-earning assets: Loans (1)(2)(3) $ 430,874 $ 8,369 7.77% Investment securities -- taxable 66,686 646 3.87% Investment securities -- non-taxable (3) 22,364 208 3.72% Federal funds sold 56,162 410 2.92% Other investments (4) 2,469 43 6.97% --------- --------- ------- Total interest-earning assets 578,555 9,676 6.69% Non-earning assets: Cash and due from banks 15,810 Unearned loan fees (2,347) Allowance for loan losses (6,010) Goodwill & intangible -- Other assets 24,323 --------- Total assets $ 610,331 ========= Liabilities and Stockholders' Equity Interest-bearing Liabilities: Deposits: Interest-bearing demand $ 21,749 $ 47 0.86% Money market 225,187 1,214 2.16% Savings 5,737 7 0.49% Time certificates of deposit 119,591 783 2.62% --------- --------- ------- Total interest-bearing deposits 372,264 2,051 2.20% Short-term borrowings 495 4 3.23% Long-term debt -- -- -- Junior subordinated debt 15,464 251 6.49% --------- --------- ------- Total interest-bearing liabilities 388,223 2,306 2.38% Non-interest-bearing liabilities: Demand deposits 136,585 Other liabilities 4,640 --------- Total liabilities 529,448 Stockholders' equity 80,883 --------- Total liabilities and stockholders' equity $ 610,331 ========= Net interest income $ 7,370 ========= Net interest spread (5) 4.31% Net interest margin (6) 5.09% ======= (1) Includes average non-accrual loans of $1.3 million in second quarter 2006 and $626 thousand in second quarter 2005. (2) Net loan fees of $1.4 million and $1.1 million are included in the yield computations for the second quarter of 2006 and 2005, respectively. (3) Yields on loans and securities have not been adjusted to a tax-equivalent basis (4) Includes Federal Reserve Bank stock, Federal Home Loan Bank stock and Pacific Coast Bankers Bank stock. (5) Net interest spread represents the average yield earned on interest earning assets less the average rate paid on interest bearing liabilities. (6) Net interest margin is computed by dividing net interest income by total average earning assets. (7) Annualized. CONSOLIDATED AVERAGE BALANCES (Unaudited) Six months ended June 30, 2006 -------------------------- Average Interest Average Income Yield Balance or or Expense Cost --------- ------- ------ (Dollars in thousands, except percentage data) Assets Interest-earning assets: Loans (1)(2)(3) $ 743,810 $32,960 8.86% Investment securities -- taxable 66,919 1,430 4.27% Investment securitiesnon -- taxable (3) 22,456 420 3.74% Federal funds sold 42,734 1,000 4.68% Other investments (4) 5,725 149 5.21% --------- ------- ------ Total interest-earning assets 881,644 35,959 8.16% Non-earning assets: Cash and due from banks 19,908 Unearned loan fees (3,853) Allowance for loan losses (8,874) Goodwill & intangible 23,925 Other assets 32,773 --------- Total assets $ 945,523 ========= Liabilities and Stockholders' Equity Interest-bearing Liabilities: Deposits: Interest-bearing demand $ 45,345 $ 489 2.16% Money market 300,266 5,120 3.41% Savings 6,603 24 0.73% Time certificates of deposit 210,318 4,281 4.07% --------- ------- ------ Total interest-bearing deposits 562,532 9,914 3.52% Short-term borrowings 16,181 323 3.99% Long-term debt 33,831 800 4.73% Junior subordinated debt 36,083 1,248 6.92% --------- ------- ------ Total interest-bearing liabilities 648,627 12,285 3.79% Non-interest-bearing liabilities: Demand deposits 179,533 Other liabilities 6,411 --------- Total liabilities 834,571 Stockholders' equity 110,952 --------- Total liabilities and stockholders' equity $ 945,523 ========= Net interest income $23,674 ======= Net interest spread (5) 4.37% Net interest margin (6) 5.37% ======= Six months ended June 30, 2005 -------------------------- Average Interest Average Income Yield Balance or or Expense Cost --------- ------- ------ (Dollars in thousands, except percentage data) Assets Interest-earning assets: Loans (1)(2)(3) $ 418,144 $15,724 7.52% Investment securities -- taxable 65,338 1,243 3.80% Investment securitiesnon -- taxable (3) 22,429 420 3.75% Federal funds sold 71,598 943 2.63% Other investments (4) 2,359 52 4.41% --------- ------- ------ Total interest-earning assets 579,868 18,382 6.34% Non-earning assets: Cash and due from banks 15,644 Unearned loan fees (2,216) Allowance for loan losses (6,068) Goodwill & intangible 0 Other assets 24,305 --------- Total assets $ 611,533 ========= Liabilities and Stockholders' Equity Interest-bearing Liabilities: Deposits: Interest-bearing demand $ 21,721 $ 93 0.86% Money market 229,020 2,369 2.07% Savings 5,666 14 0.49% Time certificates of deposit 120,531 1,517 2.52% --------- ------- ------ Total interest-bearing deposits 376,938 3,993 2.12% Short-term borrowings 334 9 5.39% Long-term debt -- -- -- Junior subordinated debt 15,464 480 6.21% --------- ------- ------ Total interest-bearing liabilities 392,736 4,482 2.28% Non-interest-bearing liabilities: Demand deposits 134,606 Other liabilities 4,336 --------- Total liabilities 531,678 Stockholders' equity 79,855 --------- Total liabilities and stockholders' equity $ 611,533 ========= Net interest income $13,900 ======= Net interest spread (5) 4.06% Net interest margin (6) 4.79% ======= (1) Includes average non-accrual loans of $951 thousand in the first half of 2006 and $779 thousand in the first half of 2005. (2) Net loan fees of $2.5 million and $1.9 million are included in the yield computations for the first half of 2006 and 2005, respectively. (3) Yields on loans and securities have not been adjusted to a tax-equivalent basis (4) Includes Federal Reserve Bank stock, Federal Home Loan Bank stock and Pacific Coast Bankers Bank stock and interest bearing due from banks. (5) Net interest spread represents the average yield earned on interest earning assets less the average rate paid on interest bearing liabilities. (6) Net interest margin is computed by dividing net interest income by total average earning assets. (7) Annualized.
Alltracel forms technology and business development joint venture with Nanofibre technology innovators Elmarco
Alltracel Pharmaceuticals Plc
-- Alltracel forms technology and business development joint venture with
Nanofibre technology innovators Elmarco -
-- Dedicated to the commercialisation of Elmarco's patented Nanospider
(TM) based technology solutions -
--Focused on the global professional and consumer woundcare sectors -
Wednesday , July 19th 2006: Dublin, Ireland and Prague, Czech Republic
Alltracel Pharmaceuticals Plc., ("Alltracel", or "the Company"), (AIM:AP.L), the Medical Technology Company focused on the Woundcare, Oralcare and Cardiovascular Health markets today announces the establishment of a global mutually exclusive joint venture technology and business development partnership (JV) with current nanotechnology R&D partners Elmarco.
The agreement covers nanofibre based technologies and products in the professional and consumer woundcare markets as well as other specialist medical related markets.
The JV will be the single point of contact for business development and licence and supply agreements based on the relevant intellectual property and associated patents. The joint venture will be EU based and is expected to be operational by September 2006.
This commercial development follows last quarters (Q1) successful development of an effective nano-fibre based delivery platform for Alltracel's patented m.doc™ based woundcare technology. Subsequent commercial discussions with both current and new professional and consumer woundcare manufacturing and other partners have led to the establishment of this joint venture to efficiently commercialise this breakthrough technology.
Elmarco's CEO, Ladislav Mares, commented:
"We view this JV as a logical extension of our cooperation, following outstanding results during our mutual development. We are delighted to be able to combine our advanced Nanospider™ technology and know-how with Alltracel's extensive international knowledge of the professional and consumer woundcare markets. We look forward to end consumers experiencing the advantages of Nanospider based woundcare products early next year."
Alltracel's CEO, Tony Richardson, commented:
"Alltracel has always been committed to innovation in the markets in which we operate. We and our woundcare partners have identified the Nanospider™ - Elmarco's proprietary nanofibre production technology - as the leading manufacturing solution for the mass production of nanofibre materials for the woundcare and related markets. The formation of this JV with Elmarco is the natural conclusion of a year long successful R&D collaboration combined with an escalating customer interest in nanofibre based woundcare systems. We look forward to the JV working with our existing and new commercial partners in bringing this breakthrough technology to both the consumer and professional woundcare markets."
