Profit dip eliminates bonus for 2 Molson Coors execs
Molson Coors Brewing Co. chief executive Leo Kiely and finance chief Timothy Wolf weren’t paid bonuses in 2005 as profit fell following the merger to create the world’s fifth-largest brewer.
Kiely, 59, was eligible to earn as much as 100 percent of his $950,000 base salary as a bonus had the Denver and Montreal-based brewer achieved financial targets, spokeswoman Sylvia Morin said Wednesday in a telephone interview. Molson Coors made the bonus disclosure in a filing with securities regulators.
The company reported a first-quarter loss in April. It has had two quarters with profit declines since Molson and Coors completed a $3.4 billion merger in February 2005. Molson Coors stock fell 8.9 percent in 2005 after the combination.
“This is an alignment of compensation with performance, which was below the expectations of internal corporate targets,” Morin said Wednesday.
Wolf, 52, was eligible to earn as much as 70 percent of his $525,000 salary as a bonus in 2005, according to a separate filing. The company and Morin didn’t provide details of the targets needed to achieve bonuses.
DENVER
Xcel files to lower its fines for breakdowns
Xcel Energy filed a quality of service plan with state regulators on Wednesday that caps potential fines at $12 million a year for breakdowns in electric and gas service.
The plan covers 2007 to 2010 and replaces a plan that expired in 2005 and set financial penalties at up to $16 million a year.
The fines against Xcel for breakdowns, including power outages, call-center issues and gas leaks, are returned to customers in the form of bill credits.
The Office of Consumer Counsel, the staff of the Public Utilities Commission and the city and county of Denver have endorsed the plan, which must be approved by the PUC. A hearing on the plan is set for April 4.
DENVER
Local Matters plans IPO; price not yet set
Local Matters Inc., a provider of enhanced services for online directory information websites, announced plans Wednesday for an initial public offering.
In a statement filed with the Securities and Exchange Commission, Local Matters said the number of shares or share price has yet to be determined. Cowen & Co. LLC will act as the main underwriter and CIBC World Markets, Needham & Co. LLC and JMP Securities LLC will act as co-managing underwriters.
DENVER
State coal production down from ’04 record
Colorado produced 38 million tons of coal last year, down from a record 40 million tons the year before and the first decline in years, the Colorado Geological Survey said.
Production is expected to decline by another 2 million to 3 million tons this year, officials said. The West Elk Mine shut down for two months late last year because of dangerous gas buildup. The Elk Creek mine, shut down early this year after a roof became unstable, is expected to reopen April 1. Both mines are in Gunnison County.
DENVER
Chipotle eyes little spaces for big profits
Chipotle Mexican Grill Inc., the fast-growing Denver-based restaurant chain that went public in January, will open outlets as small as 1,000 square feet to hold down operating costs.
Chipotle’s smaller restaurants outperform larger units in terms of gross sales and return on investment “since the small ones are cheaper to build,” chief operating officer Montgomery “Monty” Moran said Wednesday at a JPMorgan Chase & Co. conference in Las Vegas.
LAKEWOOD
San Diego firm buys Promote It agency
Lakewood-based health club promotions agency Promote It International has been acquired by Active Marketing Group of San Diego. Terms of the deal were not disclosed.
The combined company will have revenues of more than $11 million. Active Marketing Group plans to maintain Promote It’s eight-person office. Promote It founder and CEO Barbie Gummin will be vice president of business development.
LONDON
InBev seeks buyer for Rolling Rock beer
The world’s biggest brewer, InBev, is looking to sell its U.S. domestic brand Rolling Rock after struggling to revive the iconic brand the past decade, sources told Reuters on Wednesday.
Rolling Rock is unlikely to attract bids from the top U.S. brewers such as Molson Coors Brewing Co., but might attract attention from smaller players, such as Samuel Adams brewer Boston Beer Co. Inc.
DENVER
Ex-Janus CEO got a raise to $4.4 million
Janus Capital Group Inc. gave Steve Scheid, who stepped down as chief executive in January, a 74 percent raise to $4.4 million last year as the mutual fund management company’s stock rose for the third straight year.
Compensation for Scheid, who remains chairman, included an $800,000 salary and $2.4 million bonus, the Denver-based company said in a filing with the Securities and Exchange Commission. Gary Black, who succeeded Scheid as CEO, was paid $5.6 million, a 49 percent drop from 2004.
LOS ANGELES
Sale of Level 3 shares nets Leucadia millions
Los Angeles holding company Leucadia National Corp. said Wednesday it sold all of its shares of Broomfield-based Level 3 Communications for about $37.4 million, according to a Securities and Exchange Commission filing.
Leucadia got the shares as part of a recently completed deal to sell Tulsa, Okla.-based WilTel Communications to Level 3 for $386 million in cash and stock.
NEW YORK
“Short-sell” position a comment on Qwest
Denver-based Qwest was ranked No. 4 on the New York Stock Exchange’s “short-sell” list Wednesday, which may indicate that investors think the company’s stock price is too high.
Qwest’s stock was down to $6.52 in after-hours trading Wednesday, after hitting a high in recent days of $7.02
Investors who “short-sell” stock borrow shares they think are headed for a price drop. They repay the loan with shares purchased at a higher or lower price, pocketing the difference if they’re correct.
PLANO, Texas
Wal-Mart gets upscale goods to lure wealthy
Wal-Mart Stores Inc. is targeting upscale shoppers with a new store this week in Plano, Texas. The store has an expanded selection of high-end electronics, more fine jewelry, hundreds of types of wine ranging up to $500 a bottle, and even a sushi bar.
