Buca di Beppo Losing the Bucks and News on Other Financially Challenged U.S. Companies for March 13

The items below are taken from the Credit Manager’s Weekly Summary of Financially Challenged Companies. A full issue contains information on more than 200 companies. Please visit the insideARM bookstore for information on subscribing to the Summary.

Bon-Ton Stores Inc., a York, Pa.-based department-store operator, warned that same-store sales could slide between 1% and 2% this year amid the tough retail environment.  Bon-Ton recently reported its fourth quarter results, saying that net income declined 15%–to $75.2 million, on a 9% sales decline–to $1.1 billion. Same-store sales fell 3.6%. For the year, net income sank 75%–to $11.6 million, on flat sales of $3.4 billion.
 
Bridgford Foods Corp., Anaheim, Calif., reported a first quarter net loss of $260,000. Revenue declined 3%–to $31.3 million.

BUCA Inc., the Minneapolis-based owner of the Buca di Beppo chain of Italian restaurants, reported a fourth quarter net loss of $5.3 million, on a 10% sales decline–to $64 million. The loss, which compares with income of $943,000 for the same period one year earlier, includes charges of $4.9 million from impairments and the disposal of certain assets. For the year, the company reported a net loss of $16 million on a 3% sales decline–to $245.5 million. The loss, more than triple the loss for fiscal 2006, includes charges of $6.7 million.

Constellation Energy Group’s Constellation NewEnergy unit was fined almost $7 million for allegedly violating certain natural-gas capacity release regulations.

Gottschalks Inc., a Fresno, Calif. department-store operator, reported its fourth quarter net income tumbled 87%–to $1.1 million. Sales declined 14%–to $207 million. For the year, the retailer lost $12.4 million on a 7% sales decline–to $636 million. 

Jones Soda Inc.’s shares plummeted by more than a third after the Seattle-based maker of soft drinks warned of possible losses for 2008, in contrast to analysts’ expectations of a profit. In its fourth quarter the firm lost $10.2 million while revenue slumped 41%–to $5.9 million. In the year-earlier quarter it enjoyed a profit of almost $2.1 million. For the year, it lost $11.6 million on a 2% revenue increase–to $39.8 million.

Pilgrim’s Pride Corp., the Pittsburg, Texas, firm which is the nation’s largest chicken processor, is reducing its workforce by nearly 1,100 jobs as it closes six distribution centers.  The company, citing increasing feed costs, previously reported a first quarter loss.

PMI Group Inc., a Walnut Creek, Calif. mortgage-insurance company, will delay filing its fourth quarter and full-year results for 2007, citing ongoing delays in getting financial figures from FGIC Corp., which PMI owns 42% of. Earlier, PMI announced a preliminary net loss for the fourth quarter of $236 million at its mortgage-insurance operations in the U.S.

Sacramento Bee, a newspaper in Sacramento, Calif., offered less than 2% of its workforce of 1,400 employees voluntary buyouts, as it has been coping with declines in advertising revenue.

Southwest Airlines Co., recently hit with charges of careless maintenance, put several employees on administrative leave as it works to fix up deficiencies in internal controls. Southwest is being permitted to continue flying as it completes mandatory maintenance checks. The Texas-based carrier faces potential civil penalties of more than $10 million for the maintenance lapses. In late breaking news, the carrier has grounded 44 aircraft, 8% of its overall fleet.

Standard Motor Products Inc.’s shares tumbled 17% after the auto-parts maker reported a widened fourth quarter loss of $8.3 million, more than four times its loss in the year-earlier period. Standard Motor, Long Island City, N.Y., manufactures automotive replacement engine-management and air-conditioning products.

STS LLC, an Atlanta-based provider of technical services for utilities, is cutting forty-five jobs at its office in Orlando, Fla. STS is an independent subsidiary of Dycom Industries Inc.

Sun Times Media Group Inc., the Chicago, Ill. newspaper publisher, reported a fourth quarter net loss of $59.1 million. Revenue was down 15%–to $93.3 million. For the year, the firm had net income of $272 million on an 11% revenue decline–to $372 million.

Talbots Inc., the Hingham, Mass. women’s apparel retailer with more than 1,370 outlets, reported a fourth quarter net loss of $171 million, on an 8% sales decline–to $587.4 million.  This compares with income of $17,000 for the same period one year earlier. For the year, the company reported a net loss of nearly $189 million on a 3% sales increase–to $2.3 billion. The losses, which include charges of more than $161 million from restructuring and impairments, compare with income of $31.5 million for the same period one year earlier.