Clifton Gunderson LLP, Metavante Technologies Inc., MGIC Investment Corp.; Wisconsin Nonprofits Association, the MMAC, Linens ‘n Things
McMasters will be the next CEO of Clifton Gunderson
The cover story of this week’s Small Business Times documents how Krista McMasters rose to become the first female chief executive officer of a major certified public accounting firm. McMasters will be the next CEO of Clifton Gunderson LLP, which will move its headquarters to Milwaukee.
Metavante is off to strong start as independent company
Metavante Technologies Inc. reported first quarter net income of $35.0 million, or 29 cents per share. The Brown Deer-based company, which was spun off from Marshall & Ilsley Corp. last November, reported quarterly revenue of $424.6 million. Commenting on the results, Frank Martire, president and chief executive officer of Metavente, said, "Our first quarter was a good start to 2008. The strong organic revenue growth was driven by higher transaction volumes and by our recent successes cross-selling our product portfolio and capturing new business. I am particularly pleased that the combination of operating leverage and cost productivity allowed us to make additional investments in future growth while still improving profitability. Our customers continue to confront a difficult and uncertain environment, and are deferring decisions and delaying capital spending."
Commenting on the outlook, Martire said, "While it is still early in the year, our performance in the first quarter allows increasing confidence that 2008 will be another good year for Metavante. Our updated outlook prudently balances our expectations for continued strong execution with the reality of an uncertain and difficult selling environment, which could impact our ability to sell software and professional services later in the year. We will continue to diligently monitor demand and adjust our spending and investment plans accordingly."
MGIC will hold special meeting for shareholders
Cash-strapped MGIC Investment Corp. announced plans to conduct a special meeting of its shareholders. The special meeting will be in addition to its 2008 annual meeting of shareholders, which will be held on Thursday, May 15. A date for the special meeting will likely be set in upcoming weeks and is anticipated to take place in mid-June. MGIC has been adversely affected by the subprime mortgage meltdown and the icy housing market.
Wisconsin Nonprofits Association to convene statewide summit
The Wisconsin Nonprofits Association (WNA) will host a statewide Summit in Madison in June. "Common Ground for Common Good; Setting the Agenda for Wisconsin’s Nonprofit Sector" will be held at the Sheraton Hotel, Madison on June 10, from 9 a.m. to 4:30 p.m. "We are excited to be convening our first statewide event," said JoAnn Stormer, representing the WNA. "When nonprofit leaders come together to speak with one voice, we demonstrate the critical importance of the nonprofit sector to Wisconsin’s economic, educational and civic success."
There are more than 30,000 nonprofit organizations in the state of Wisconsin. The summit will encourage participants to network and learn. Workshops for participants will share tools and techniques to strengthen their organizations and the non-profit sector in Wisconsin. Information and registration for the summit is available at: www.wisconsinnonprofits.org.
MMAC’s local economic indicators show more declines
The southeastern Wisconsin economy continued its cool down in March, according to the business activity indicators monitored by the Metropolitan Milwaukee Association of Commerce (MMAC). Only six of 19 available local business activity indicators pointed upward in March, down from February’s seven improvements. "Growth in the metro area economy has struggled to gain traction over 2008’s first quarter," said Bret Mayborne, economic research director for the MMAC. "Nonfarm employment totals continued to post modest year-over-year declines in aggregate, with job levels in a majority of major industry sectors pointing downward."
Employment levels in the metro area averaged 844,700 in March, a 0.2-percet fall from year-ago levels. March’s decline matches the 0.2-percentdecrease posted in February (vs. February 2007) and marks the fifth consecutive month of year-over-year decline. Four of 10 major local industry sectors registered March job gains (vs. one year ago), while six posted declines. The largest percentage increase was posted in the educational & health services sector (up 1.9 percent over year-ago levels). Conversely, a 4.9-percent job decline was posted in the construction & natural resources sector, the largest decrease registered.
Among other selected indicators, unemployment and housing & real estate indicators registered March weakness vs. year-ago levels. The number of unemployed in March rose at a 3.6-percent rate vs. year-ago levels after falling 0.7 percent in February. New unemployment compensation claims increased 9.6 percent in March (vs. March, 2007).
March nonfarm employment levels in the metro area averaged 844,700, a decrease of 1,300 jobs (-0.2 percent) from one year ago. March’s fall marks the fifth consecutive month of year-over-year employment decline. Local area housing and real estate indicators tracked by the MMAC remained downward-pointing. Existing home sales fell 28.1 percent vs. year-ago levels to 858, the indicator’s worst decline this year. Mortgages recorded in Milwaukee County numbered 4,141 for March, down 22.9 percent from one year ago. A couple of bright spots among the MMAC’s local economic factors included airport passenger traffic and new commercial construction.
Air passenger usage of General Mitchell International Airport reached a record monthly high in March. Passengers numbered 745,893 for the month, surpassing the previous record of 738,388. The value of signed construction contracts, as reported by F.W. Dodge for February, was $91.7 million, up 32 percent from February, 2007.
Linens ‘n Things will file for bankruptcy, close Wisconsin stores
A day after The Home Depot Inc. announced it will close 15 stores, Linens Holding Co. said it will file for Chapter 11 bankruptcy and close 120 of its Linens ‘n Things stores, including three in Wisconsin. The Wisconsin Linens ‘n things stores to be closed are the stores at the Shops of Grand Avenue in Milwaukee, the Regency Mall in Racine and Greenway Station in Middleton. Clifton, N.J.-based Linens Holding Co. blamed its bankruptcy and the store closings on the icy economy. "The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years," said Robert DiNicola, executive chairman of the company. "We are making the strategic decision to use a Chapter 11 filing to proactively address our capital structure and ensure that our stores will remain well stocked while we work through the steps to align the capital structure of the Company with the realities of today’s business environment.
Linens Holding Co. has secured $700 million in debtor-in-possession (DIP) financing from General Electric Capital Corp., which will ensure healthy merchandise flow as the company prepares for the back-to-school and holiday selling seasons. Atlanta-based Home Depot announced Thursday it will close 15 U.S. stores, including the store at 7401 W. Good Hope Road in Milwaukee. Home Depot also said it scrapping plans for 50 new stores. Home Depot said it will record a charge of approximately $400 million related to capitalized development costs and ongoing obligations associated with the decision not to go forward with the new stores.
