UTAH’S BUSINESS JOURNAL www.slenterprise.com July 30-Aug. 5, 2012 Volume 41, Number 52 $1.50 Apartments to rise as State officials OK new THIS part of first transit business recruitment, WEEK project in West Jordan retention incentive By Brice Wallace tives for companies adding a few The Enterprise employees, but the incentive is State officials have approved capped at $50,000. The typical a new business recruitment and state-approved incentive is the EcoScraps secures retention incentive designed to Economic Development Tax help certain counties that have Increment Financing (EDTIF), but $1.5 million missed out because of existing it requires incentivized companies See page 2. incentive programs’ rules. to add at least 50 employees and At its July meeting, the have the new jobs pay at least 25 Governor’s Office of Economic percent above the average county Development (GOED) Board wage. approved the incentive, target- So-called “shoulder” coun- Three new ing counties defined as “rural” ties have had companies falling restaurants coming but with large population centers. through the cracks in those pro- Specifically mentioned during the grams, sometimes because their to Salt Lake meeting were Juab and Box Elder growth didn’t reach the 50-job or See page 3. counties. the pay thresholds of EDTIF. The Currently, rural counties new incentive should help coun- can use the state’s Rural Fast- ties that have companies wanting More than 250 Class A apartment units will be constructed adjacent to Track Program. It defines “rural to boost employment by, say, 35 Earnings Roundup the Jordan Valley TRAX stop in West Jordan. Begins on page 5. Utah” as counties with a popu- employees, GOED officials said. By Barbara Rattle add some three bedroom models lation of less than 30,000 and Until now, for those companies, The Enterprise but we’re a little constrained by average household income of less “there was absolutely nothing that Two apartment structures what’s been approved,” he said. than $60,000. Sixteen counties could be done for them. We just • Industry Briefs • should begin rising before the “You can only do so much when are rural under that definition, didn’t have the tools, based on our Begin on page 8. end of the year at the first TOD you’re trying to do a project that although Box Elder County is guidelines,” said GOED board (transit-oriented development) in wraps around existing garages.” not. That program provides incen- see INCENTIVES page 2 West Jordan. Construction should take A joint venture between 12 to 18 months. Rothman said Memphis sub shop to enter the Utah Transit Authority and Bangerter Station LLC is in final Bangerter Station LLC, which negotiations with an architect Utah, open six locations is owned by California-based and has not yet selected a Foursquare Properties, the general contractor. Rents will be project will rest of 36 acres at determined at a later date, but the approximately 3400 West and apartments will be “more upscale, 8600 South and eventually include Class A,” Rothman said. “Not 1,396 residential units, 83,200 at the top of the market but it’s square feet of office space and not going to be low to moderate 35,400 square feet of retail and income.” restaurant space. He estimated the total project Bill Rothman, a Foursquare will take five to six years to build Properties spokesperson, said the out. Future phases will be market first phase of Jordan Valley Station driven. will consist of a pair of apartment UTA was able to joint venture buildings, with a total of 252 units, the development with a private that will wrap around two parking entity thanks to legislative action garages that UTA is close to completing. Of the approximately that allows the agency to enter into 900 parking spaces available, five such agreements, this being Lenny's Sub Shop has about 150 locations. The downtown Salt Lake about half will be reserved for the first. City unit will be its westernmost. Foursquare Properties is residents of the apartments while By Barbara Rattle deal with the company, accord- no stranger to Utah. It owns the other half will be open for use The Enterprise ing to spokesperson Jordy Patano. the Jordan Landing shopping by UTA park-and-ride customers Memphis-based Lenny’s Build-out of the first Utah loca- complex in West Jordan, while a patronizing an adjacent light-rail Sub Shop, a sandwich franchise tion is under way; it will be the TRAX station. related entity is in the process of with approximately 150 locations chain’s westernmost unit. Rothman said the apartment redeveloping the former Granite in the U.S., will soon enter the Patano said in an e-mail structures will be four stories Furniture building in the Salt Utah market with a location at 35 that Corine Warren is leaving her and the rental units will range Lake City neighborhood of Sugar E. 300 S., Salt Lake City. position as an elementary school in size from about 700 to 1,200 House into retail and office space. Franchisees Lee and Corine teacher while Lee Warren is a square feet, primarily one and two Rothman said most of the ground- Warren plan to open five addi- military veteran who served in bedrooms. level retail spaces at the Granite tional restaurants in the next six the Marine Corps and worked as “We may make changes and site have been leased. years as part of their development see LENNY'S page 2 2 The Enterprise July 30-Aug. 5, 2012 LENNY'S party platters and boxed lunches, The initial franchise fee to recruitment and retention, said the is also offered. open a Lenny’s Sub Shop fran- INCENTIVES shoulder counties are where much from page 1 The average size of a Lenny’s chise in the United States is from page 1 of the state’s economic develop- a government defense contractor is 1,600 to 2,000 square feet. The $25,000. The average total initial ment is occurring. ideal site is located in shopping investment is $253,750, which member Jerry Oldroyd. “That’s where the growth is training soldiers in tactical war- “We’ve talked with economic fare before being deployed for centers or within close proxim- includes the initial franchise fee taking place,” he told the board. ity of office and industrial parks, of $25,000. A $5,000 discount is development officers throughout “When you think about the growth Iraq. the state, and this has been a major Lenny’s, founded in 1998, large universities or government offered to veterans and minori- that’s happened in all the projects buildings or medical centers. ties. issue because there’s no way to that we’ve done, it’s pushing on serves Philly cheesesteaks and fund these types of companies. … cheeses are sliced fresh to order Locations should have a daytime George Alvord is chair- the south in Juab County, it’s population and a residential popu- man, CEO and majority owner This [new incentive] is something pushing on the north in Box Elder and placed on fresh baked bread. that I think will be really ben- There is about a half pound of lation of at least 8,000 people in a of Lenny’s Franchisor LLC, the County … and there’s every rea- one-mile radius. Immediate traf- parent company of Lenny’s Sub eficial to those rural communities son to think that’s just going to meat and cheese on the regular size that have, by and large, been shut sub, and about a full pound on the fic counts should exceed 20,000 Shops. He is the former CEO continue in the next decade. So cars per day. Lenny’s prefers an of Dobbs International, a global out by the [current] incentive pro- any tool that his board can provide large size sub. The menu includes gram,” he said. hot and cold subs; tuna, chefs and end-cap that is facing the street market leader in airline catering. to help in that process is welcome. without obstructions; locations Prior to Lenny’s Franchisor LLC, The new incentive eliminates …” grilled chicken or grilled steak sal- the 50-job threshold and has flexi- ads; kid’s meals; beverages; and that provide the option of a drive- Alvord held executive positions Oldroyd said the existing through and/or patio seating are a with the Marriott Corp. and the bility regarding pay levels, but the incentives statutes are flexible chips and cookies. Average cost key change is that it will match is $6.35. Catering, in the form of plus. Servomation Corp. enough to allow GOED to create local incentives dollar for dollar. the new incentive through guide- Compost firm closes on $1.5 million financing “It is somewhat of a little bit lines and thus not require a legis- of a higher bar for the community lative bill. EcoScraps, a Utah County- tinue developing our line of prod- Founded two years ago, as it relates to below the 50 jobs, “We still have the ability to based provider of organic, chemi- ucts, and attract new talent to our EcoScraps is now manufacturing which is a control mechanism review these [applications] on a cal- and manure-free lawn and growing team,” said EcoScraps its products in Utah, Arizona and to help ensure that we have the one-by-one basis. … We thought garden products, received $1.5 CEO and co-founder Dan Blake. California. Currently, the company community very involved in the we would just give this as much million in series A venture financ- “Americans generate more than sells its organic compost through- process,” said Spencer Eccles, flexibility as possible and plan on ing. The round’s lead investor 30 million tons of food waste each out Utah, Colorado, Arizona, New GOED’s executive director. working with the community and was Utah-based KickStart. Other year. Our company offers a sus- Mexico and California. Oldroyd said the new incen- seeing what happens,” he said. institutional investors included tainable solution to repurposing EcoScraps has received sev- tive likely will be rarely used. “It’s “Also remember this is new. California-based DBL Investors leftover fruits and vegetables.” eral awards in its short history, not going to be used, I think, a It hasn’t been tried, obviously. It’s and Utah-based Peterson EcoScraps diverts produce including the 2010 Sparkseed great deal, but there are going to not built in statute. It’s not built in Ventures. waste taken from local grocery Innovator honor, 2010 SOCAP be special situations, special com- administrative rules. It’s done by “This represents a significant stores and restaurants away from Scholar and was named as one panies that the community really guidelines approved by this board, round of financing for EcoScraps landfills, and turns it into compost of the “Top 25 Most Promising wants from an economic devel- which means if we do encounter and will be used to expand our and other lawn and garden prod- Social Ventures in America” by opment perspective,” he said. problems, additional questions, products into new markets, con- ucts. Businessweek. “They’re going to be core com- additional concerns, we have the panies or companies that they’ve ability as a board to come back to supported or companies that have change it and improve it as we go expanded, that have been in the along. I can’t see any downside community for a long time and on this. I think it will help a lot of they’re willing to put their money these shoulder communities.” [and] their effort into supporting The idea that certain coun- those companies.” ties were missing out on incentive Jeff Edwards, president and opportunities because of their def- chief executive officer of the inition as “rural” was discussed Economic Development Corp. during part of the June meet- of Utah (EDCU), which is con- ing of the legislature’s Political tracted with the state for corporate Subdivisions Interim Committee. The committee took no action, but speakers and committee mem- bers discussed the advantages and disadvantages of having a single definition for “rural” throughout state programs. Currently, there THE ENTERPRISE are many definitions throughout [USPS 891-300] state and federal statutes, admin- Published weekly by Enterprise Newspaper Group Inc. istrative rules and programs. 825 N. 300 W., Suite C309, Salt Lake City, UT 84103 Telephone: (801) 533-0556 Fax: (801) 533-0684 SUGAR HOUSE Website: www.slenterprise.com. For advertising inquiries, OFFICE SPACE e-mail [email protected]. To contact the newsroom, e-mail [email protected]. Subscriptions are $55 per year for online only, $65 2257 South 1100 East per year for print only and $75 per year for both the Salt Lake City, UT 84106 print and online versions, or $1.50 per copy. Opinions expressed by columnists are not necessarily the Sugar House $16 / RSF / Year opinion or policy of The Enterprise 500-12,000 Sq. Ft. Available Copyright 2012 Enterprise Newspaper Group Inc. All rights reserved Call 801-486-8157 or email Periodicals postage paid at Salt Lake City, UT 84199. [email protected] for POSTMASTER: Send address property information and corrections to P.O. Box 11778, features. Downtown Station Salt Lake City, UT 84147 Secure prime office space now as Sugar House looks forward to light rail and major developments in the near future. July 30-Aug. 5, 2012 The Enterprise 3 Three new Salt Lake City restaurants to open 62-room assisted living center

Cucina Restaurant Group to be constructed in Draper LLC, Salt Lake City, will launch Utah-based Alliance Con- three new restaurants in the near activities room, a library, an struction plans to break ground by future. entryway where people can sit and The firm, which operates the end of October for the Tuscan mingle, a general store and a salon. Cucina Toscana in downtown Crossing assisted living center at Dementia care will not be offered. Tuscan Crossing was designed Salt Lake, also announced the 11990 S. 700 E., Draper. Company owner Ramon by Mendenhall Architecture. A resignation of veteran restaurateur Campbell, who is also principal team of administrators has been Valter Nassi as its COO, citing broker for Alliance Group Real retained to operate the facility, reasons related to health and Estate, Draper, said the 36,000 Campbell said, noting his partner time demands. Cucina Restaurant square foot building on 2.07 acres in the development, Vermont Group’s other eatery, Cucina will have 62 rooms and should resident Al Senecal, has developed Nassi, is being rebranded. Veloce (Italian for “fast”) take about a year to build. similar facilities in the East. will have two locations — one “There’s a real need for it,” Campbell said of the facility. in downtown Salt Lake and the “I’ve been around to all the other other at the airport. The downtown facilities and most are at 85 to location will open next month at 90 percent full-time occupancy. 300 South and 300 West in space People are just getting older.” formerly occupied by Caputo’s Amenities at the center will Deli. It will be open for lunch and The interior of the downtown location of Veloce is taking shape. The include aGSBS_Enterprise_4x4.pdf large private dining area 1 8/4/11 5:14 PM dinner and aims to appeal to those eatery opens in August. for social gatherings, a spacious looking for high quality Italian the airport on Sept. 2. bistro section seats 32 and seasonal food at a quicker pace and lower Caterina is the new name of outdoor seating will accommodate price point than Cucina Toscana. Cucina Nassi. Located at 2155 S. 80 patrons. It also has a full liquor Veloce will feature not only pasta Highland Dr. in Sugar House, the license. We know your needs are a and pizza but a carpaccio bar, events center is morphing into The restaurant is named after crespelle bar, gelateria, pasticeria, a full-service French restaurant. Caterina de’Medici, a Florentine little more complicated. selected pasta el forno, a large It will continue to host special who influenced French culture and variety of antipasti and hot and events and will serve three meals food at the height of the Italian Vision plus imagination is the recipe cold panini all centered around a day with sidewalk and bistro renaissance. Caterina should be in for greatness. No single design or a 12-foot wood-fired rosticceria. dining for breakfast and lunch and full swing by early September. building fits everyone’s needs—nor The eatery will have 87 indoor full-service dinner in the evenings, Chef Elio Scanu of South do the preconceived ideas of an seats and 52 sidewalk seats and both indoor and out. The main Ogden’s Zucca Trattoria and chef architect. So we facilitate. We open will have a full liquor license. The dining room seats more than 250, Jean Louis Montecot of Jean a dialogue to help understand and second location is slated to open at an upper private room seats 30, the Louis Restaurant in Park City have accomplish your expectation in the joined Cucina Restaurant Group as most functional, sustainable and The American Academy full-time directors. aesthetic way possible. Give GSBS It is expected that the majority Architects a closer look. Together, secures $6 million financing of the current staff will remain at we’ll figure out exactly what you need, and then we’ll make it happen Cucina Toscana, 307 W. Pierpont The American Academy online learning, netbook comput- from scratch. Ave. Nassi is reportedly preparing (TAA), a Salt Lake City organiza- ers with 4G Internet access and to launch a new venture, Valter’s tion that partners with school dis- multi-tiered social, emotional and Restaurant, in space formerly 801.521.8600 tricts across the nation to recruit, educational support, TAA gives occupied by The Metropolitan www.gsbsarchitects.com enroll and educate children who school districts a program to serve restaurant at 173 W. 300 S. cannot or will not attend school, the vast population of dropout has secured $6 million in Series youth in the United States. C financing to bolster its commit- “As a nation, we’re doing ment to getting more at-risk youth a better job preventing children to graduation day. from dropping out of school in The financing was led by the first place. While that effort is New Markets Venture Partners critical, every year more than one and Anthony Meyer, a TAA co- million children still drop out of founder. Existing investors Austin school. Dropout recovery is a very Ventures and Signal Peak Ventures essential part of every commu- (formerly vSpring Capital) also nity’s fight against this epidemic,” participated in the round. Meyer said. TAA has added more than Established in 2007 TAA three dozen school district partners also manages a private, accred- over the past year and will serve ited, online high school focused nearly 3,000 students in 2012 with on credit recovery for students of its innovative NoDropouts pro- all ages in nearly every state and gram. Through a combination of eight countries. Neways appoints Robert Conlee CEO

Neways Enterprises, a ership roles, including executive Springville-based producer of committee member, president- dietary supplements and person- North Asia region, president-Nu al care products, has appointed Skin Japan and COO-Pharmanex Robert S. Conlee to serve as CEO Nutritional Division. In addition, and chairman of the board. he held an important executive Previously, Conlee served position during Nu Skin’s initial as CEO and a board member at public offering. Lehi-based Xango LLC, positions Conlee has a bachelor’s he took in 2008. Prior to Xango, degree in Japanese from Brigham Conlee was at Provo-based Nu Young University and a master’s Skin Enterprises for 15 years, degree in business administration where he served in various lead- from Temple University. 4 The Enterprise July 30-Aug. 5, 2012

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July 30-Aug. 5, 2012 The Enterprise 5 • Earnings Roundup • Overstock.com loss of $2 million, or 7 cents per continue our sales and marketing in 10 states. customers in Utah, Wyoming and Overstock.com, a Salt Lake share, for the third fiscal quarter and product development efforts.” “We continue to enjoy strong Idaho. Wexpro develops and pro- City-based online closeout retailer, ended May 31. That compares Zions improvement in credit trends and duces gas reserves for Questar reported net income of $470,000, with a loss of $817,540, or 3 cents Zions Bancorp., based in Salt expect classified loans to con- Gas. Questar Pipeline provides or 2 cents per share, for the quar- per share, for the same quarter a Lake City, reported net earnings tinue to trend lower,” Harris H. transportation and underground ter ended June 30. That compares year earlier. applicable to common sharehold- Simmons, chairman and chief storage services in Utah, Wyoming with a net loss of $7.8 million, or Revenues for the quarter ers of $55.2 million, or 30 cents executive officer, said in announc- and Colorado. 34 cents per share, for the same totaled $651,387, down from $1.7 per share, for the fiscal second ing the results. “Furthermore, In the most recent quarter, quarter last year. million in the year-earlier quarter. quarter ended June. 30. That com- we were pleased to experience a Wexpro provided $25.8 million Revenues totaled $239.5 mil- The company develops, man- pares with $29 million, or 16 cents moderate degree of loan growth of net income, followed by $16.1 lion, up from $235 million a year ufactures, markets and services per share, for the same quarter a primarily driven by business loan million for Questar Pipeline. earlier. medical systems that treat cancer year earlier, and with $25.5 mil- growth; however, our business Questar Gas had a net loss of Franklin Covey and benign diseases using heat lion, or 14 cents per share, in the customers generally remain quite $2.3 million, compared with net Franklin Covey Co., based therapy. first quarter. cautious, which is constraining income of $400,000 a year earlier. in Salt Lake City, reported net In announcing the results, The company said net earn- revenue growth. Finally, support- That seasonal loss was typical for income of $1.6 million, or 9 cents Harold Wolcott, BSD’s presi- ings in the most recent quarter ed by the continued improvement a second quarter, the company per share, for the fiscal third quar- dent, said the company had were boosted by a 43 percent in credit quality, we believe we are said. Wexpro production was up ter ended May 26. That compares increased revenues from sales reduction in preferred stock divi- on track to redeem the balance of 23 percent compared to a year ear- with $724,000, or 4 cents per of its SynchroWave product and dends, due primarily to the $700 the TARP preferred stock in the lier, lowering cost-of-service gas share, in the year-earlier quarter. equipment rental fees for its million redemption in Troubled second half of 2012.” costs to Questar Gas customers, Revenues totaled $41.3 mil- MicroThermX system. Asset Relief Program (TARP) and Questar the company said. lion, up from $40.9 million a year “However, revenues in the related warrant amortization in the Questar Corp., based in Salt “Questar’s businesses all per- earlier. current fiscal year have been less first quarter. Lake City, reported net income formed in line with our expec- “We are very pleased with the than in the prior fiscal year pri- Zions said credit qual- of $39.2 million, or 22 cents per tations for the second quarter,” results achieved in our fiscal third marily due to the sale of fewer ity improved in nearly all major share, for the second fiscal quarter Ronald W. Jibson, Questar chair- quarter, and by the significant hyperthermia systems,” Wolcott geographic areas and loan types. ended June 30. That compares man, president and chief executive momentum we are seeing in our said. “The worldwide economic Loans and leases, excluding with $40.3 million, or 22 cents per officer, said in announcing the business. … We expect to achieve downturn and the uncertainty in FDIC-supported loans, grew $36.2 share, for the same quarter a year results. “Net income dipped slight- strong growth in both revenue the U.S. medical industry result- billion to $328 million at the end earlier. ly to $39.2 million compared to and profitability during our fiscal ing from potentially significant of the quarter. Net interest income Revenues totaled $188.4 mil- the 2011 period, but for the year- fourth quarter, positioning us for governmental health care reform slipped from $442 million to $432 lion, down from $222.9 million a to-date, net income was 4 percent continued strong growth in fiscal continue to negatively impact the million during the most recent year earlier. Questar Gas revenue higher than in 2011. … In spite of 2013,” Bob Whitman, chairman sales of our hyperthermia systems, quarter. Average total deposits slipped from $164 million a year headwinds, such as lower natu- and chief executive officer, said in the market introduction of our for the second quarter of 2012 ago to $130.2 million in the most ral gas and liquids prices, higher announcing the results. MicroThermX, and our operating increased $571 million to $42.9 recent quarter. pension costs and property taxes, BSD Medical results. … We have a strong bal- billion during the quarter. Questar Corp. has three prin- we remain on track to meet our BSD Medical Corp., based ance sheet, no debt, and believe Zions operates its banking cipal subsidiaries: Questar Gas is a 2012 earnings guidance of $1.15 in South Salt Lake, reported a net we are sufficiently capitalized to business through about 500 offices utility serving more than 924,000 continued on page 7 6 The Enterprise July 30-Aug. 5, 2012

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Cruise & Travel Masters 4376 So. 700 E., SLC UT 84107 801-268-4470 ~ 800-264-0557 July 30-Aug. 5, 2012 The Enterprise 7 from page 5 said in announcing the results. “Leverage gained on higher to complement our existing brands With particular interest in “Highlights include surpassing the sales, better-than-expected gross and our customers’ needs,” he health care for women and their to $1.19 per diluted share.” two million subscriber milestone; margins, and a lower effective tax said. babies, Utah Medical develops, Nu Skin commencing the digitization and rate were the main factors that Utah Medical Products manufactures, assembles and mar- Nu Skin Enterprises Inc., indexing of the 1940 U.S. cen- contributed to our strong bottom- Utah Medical Products Inc., kets specialty medical devices. based in Provo, reported net sus data, around which we have line performance this quarter,” based in Salt Lake City, reported The most recent quarter’s income of $60.4 million, or 94 built a great package of features said Doug Hekking, chief finan- net income of $2.4 million, or 65 income “provided further evi- cents per share, for the fiscal sec- and tools; and a successful launch cial officer. cents per share, for the second dence that UTMD is achieving ond quarter. That compares with of our DNA offering, where the Nutraceutical fiscal quarter ended June 30. That its plan for growth in EPS [earn- $41.7 million, or 65 cents a year initial response has been terrific. Nutraceutical International compares with $2 million, or 54 ings per share] from synergies earlier. We believe we are positioned for Corp., based in Park City, reported cents per share, for the same quar- achieved after the acquisition of Revenue was a company- a great second half of 2012, both net income of $3.4 million, or ter in 2011. Femcare in 2011, despite current record $593.2 million, up from financially and through the contin- 34 cents per share, for the fiscal Net sales totaled $10 million, worldwide economic challenges,” $424.4 million in the year-earlier ued investment and good progress third quarter ended June 30. That down from $10.4 million a year the company said in announcing quarter. we are making across our key compares with $3.9 million, or 38 earlier. the results. Nu Skin is a direct-sales product initiatives.” cents per share, for the same quar- company that produces anti-aging USANA ter in 2011. products. It operates in 52 markets USANA Health Sciences The most recent quarter worldwide and has about 900,000 Inc., based in Salt Lake City, included a noncash intangible asset active distributors and preferred reported net income of $16.7 mil- impairment charge of $600,000, customers. lion, or $1.11 per share, for the fis- or 6 cents per share, related to the “Once again, we are pleased to cal second quarter ended June 30. consolidation of the company’s announce record quarterly results, That compares with $13.9 million, Alan James Group brand into its highlighted by the most successful or 88 cents per share, for the same Body Gold brand. regional product launch in our his- quarter a year earlier. Net sales totaled $49.6 mil- tory that boosted revenue by more You take care Net sales totaled $160.9 mil- lion, up from $47.5 million a year than 150 percent in Greater China lion, up from $148.9 million in the earlier. and 66 percent in South Asia,” prior-year quarter. Nutraceutical manufactures, of Business. Truman Hunt, president and chief The company said the earn- markets, distributes and retails executive officer, said in announc- ings-per-share figure rose because nutritional supplements and other ing the results. “The tremendous of not only higher net earnings products. launches of our latest ageLOC but also a lower number of diluted “Our fiscal 2012 third-quarter We’ll take care of products generated approximately shares outstanding due to the com- net sales growth of 4.5 percent was $165 million in product orders, pany’s share repurchases over the primarily a result of acquisitions with $140 million reported in rev- the plants. past year. made during the last year,” Bill enue during the quarter and the USANA is a direct-sales Gay, chairman and chief execu- balance to be shipped in the third Interior plant maintenance. company that develops and manu- tive officer, said in announcing the quarter. Our product innovation is Guaranteed. factures nutritional, personal care results. “Growth would have been energizing our customer base and and weight management prod- stronger if it were not for net sales sales force, as demonstrated by ucts. decreases in our international mar- strong growth in both our actives “USANA delivered solid sec- kets and a softening of domestic and executive distributors.” ond quarter results, which capped sales in June.” Hunt noted that the company a very impressive first half of Gay said the company generated a 16.5 percent operat- 12252 S. 1325 E. 801-676-0935 2012,” Dave Wentz, chief execu- believes the overall health and Draper location: ing margin during the quarter and tive officer, said in announcing natural product market remains Salt Lake location: 2735 S. 2000 E. 801-485-2542 used the strength of its balance the results. Wentz added that a solid. “Our business and growth sheet to repurchase about 2.4 mil- cactusandtropicals.com new component to the company’s strategy remains focused on iden- lion shares for $108 million. associate compensation plan and tifying and acquiring the right “We are confident that the a short-term sales promotion con- small to medium-sized businesses planned product launches during tributed to the quarter’s results. the back half of 2012, combined with the growing interest in our compelling product pipeline, will sustain healthy growth,” he said. Ancestry.com Ancestry.com Inc., based in Provo, reported net income of $20 million, or 44 cents per share, for the fiscal second quarter ended June 30. That compares with $16.6 million, or 33 cents per share, for the 2011 second quarter. Revenue totaled $119.1 mil- lion, up from $101.3 million in the year-earlier quarter. Ancestry.com is an online family history resource. It has about 2 million paying subscrib- ers, up 20 percent in the past year, and more than 10 billion records in its collection. Its users have created more than 38 million fam- ily trees containing more than 4 billion profiles. In addition to its flagship site, Ancestry.com offers several localized family history websites. “Ancestry.com delivered outstanding results in the second quarter, with all key metrics out- performing our expectations,” Tim Sullivan, chief executive officer, 8 The Enterprise July 30-Aug. 5, 2012 • Industry Briefs •

COMPUTERS/ EDUCATION/TRAINING tation. While the center’s scope system. Acting as a researcher and SOFTWARE • Christopher Hacon, a dis- includes the global mining com- facilitator, the United Way will • Adaptive Computing, a tinguished professor of mathemat- munity, it will focus primarily on use its Cambia Health Foundation Provo firm that bills itself as the ics at the University of Utah, Utah. grant to purchase rapid-time data largest provider of cloud man- has been selected as a Simons analysis software designed to agement and High-Performance Foundation Investigator in this HEALTH CARE identify gaps in access, affordabil- Computing (HPC) workload man- inaugural year of the program. The • The most recent U.S. ity and care. This information will agement software, has appointed Simons Investigator appointment News & World Report has ranked then allow United Way, in partner- Marty Smuin as vice president of is a five-year award with an antici- LDS Hospital as one of the ship with the Utah Health Policy worldwide sales. Smuin has more pated renewal for five years, con- “Best Hospitals in America,” Project and United Way 2-1-1, to than 20 years of management tingent on a formal review. Hacon and has recognized three other develop and implement programs experience in business develop- will receive $100,000 per year, Intermountain Healthcare hos- that improve the care these com- ment, sales and marketing. Most while each year the Department pitals for their high-performing munities receive. recently, he served as president of Mathematics and the university medical specialties. LDS Hospital of Aircom International Inc. Prior will receive $10,000 and $22,000, ranked 29th nationally in gynecol- HUMAN RESOURCES BUSINESS to Aircom, he worked as gen- respectively. Thus, the total could ogy and the overall top hospital • Utah’s nonfarm wage and eral manager for the Americas reach $1.32 million. Hacon stud- in Utah. Murray’s Intermountain salaried job count for June 2012, at Bytemobile Inc., which was ies algebraic geometry. Medical Center is listed with eight as generated by the U.S. Bureau of LENDING acquired by Citrix. • The University of Utah has high-performing specialties: car- Labor Statistics (BLS), expanded • Findmypast.com, a created a new Center for Mining diology/heart surgery, diabetes/ by 2.6 percent compared against IS OUR British-owned family history web- Safety and Health Excellence endocrinology, gastroenterology, the employment level for June site, launched into the grow- to help those who depend on the geriatrics, gynecology, nephrol- 2011. This is a 12-month increase BUSINESS ing U.S. genealogy market on mining industry. While the new ogy, pulmonology and urology. of 32,000 jobs, and raises total July 24. Findmypast is the flag- center is housed in the Department McKay-Dee Hospital in Ogden is wage and salary employment ship brand of Brightsolid Online of Mining Engineering within recognized for five high-perform- to 1,240,700. The seasonally- • SBA Loans • Publishing, a firm with 18 million the College of Mines and Earth ing specialties: gastroenterology, adjusted unemployment rate — registered users across its family Sciences, it will leverage collec- geriatrics, nephrology, pulmonol- generated by BLS — is Utah’s • 504 • of sites, over a billion genealogi- tive expertise across many dis- ogy and urology. Utah Valley other primary indicator of current cal records dating back to 1200 ciplines within the university. Regional Medical Center in Provo labor market conditions and Commercial and a growth rate last year of 75 The center was approved by the has four high performing special- registers 6 percent. The rate has •• percent. Findmypast.com said it Utah State Board of Regents on ties: gastroenterology, geriatrics, been sitting at 6 percent for the Mortgage enters the U.S. market in the role July 13 with a global mission to pulmonology and urology. past three months. Approximately of David facing Goliath in the work with industry, government, • Using a $35,000 grant from 81,300 Utahns are considered to shape of Utah-based ancestry.com, nongovernmental organizations the Cambia Health Foundation be actively unemployed. • LOC • the overwhelming market leader and labor representatives for the (formerly The Regence and the world’s largest genealogy improvement of mining safety and Foundation), United Way of Salt REAL ESTATE company, with a market capital- health management standards and Lake is setting out to identify • NAI WEST, Salt Lake ization of a billion dollars. performance through advocacy, and address health care needs and City, has made additions to its land education research and consul- barriers in low to middle income and investment, facilities services 2605 Washington Blvd. communities using a new data property management teams. Ross Ogden, UT 84111 (801) 409-5059 Designed, Manufactured and Installed by

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Allied Electric Sign & Awning Co. July 30-Aug. 5, 2012 The Enterprise 9 McClintock, RWA, has joined and Murray; and Richard and Rod NAI WEST as a vice president Borget, Dave’s BERNINA, Provo and land specialist. Mike Tate is a and St. George. Sustainable Building maintenance technician with NAI • Local, family-owned and WEST Facility Services. NAI operated Harmons Grocery WEST Property Management Stores is celebrating its 80th Building with Sustainable Replacing cement with fly ash is not only a employee Natalie Levie has been anniversary. From humble begin- sustainable choice because of its increased promoted to property manager. nings in 1932 as a fruit stand, the Materials McClintock comes to NAI WEST firm has grown to 16 stores that recycled content, but also creates a more aes- from the Bakersfield, Calif., office include different store footprints Concrete, asphalt and landscaping thetically pleasing concrete that has higher of Colliers International, where he and configurations to accommo- products among sustainable strength and durability. served as a land and right-of-way date specific neighborhoods from building materials Asphalt is one of the most sustainable specialist. Tate previously was the Ogden to St. George. Through By Randy Anderson construction materials because of its recycled building maintenance supervisor Aug. 12, Harmons will feature Sustainability is an important and achiev- content. Asphalt that is removed can be for Los Alamos County, N.M. in-store events on Fridays and reclaimed and recycled to create new asphalt Levie was most recently assistant Saturdays including giving away able goal when building or remodeling a property manager with NAI WEST random prizes from noon to 6 p.m., home or office space. It is vital to consider pavements. Using recycled asphalt in new Property Management team. and serving free pie and ice cream. not only the design of a building but also the pavement recycles material that would other- • Gaynell Instefjord, an Harmons is also sponsoring its choice of building materials. wise be sent to a landfill. agent in the Jordan Commons annual birthday food drive for the Whether you’re trying to achieve Choose landscaping materials that office of Coldwell Banker Utah Food Bank during that time. Leadership in Energy and Environmental will help decrease water usage. Reducing Residential Brokerage, ranked Shoppers may purchase $10 Food Design (LEED) credits or simply trying to shower time, fixing leaking faucets and using among the top 1,000 Realtors in for Families Bags pre-filled with low-flow toilets aren’t the only ways to the U.S. for home sales last year essential non-perishable proteins, build more sustainably, consider the follow- in a new report by The Wall Street fruits, vegetables and staples as ing tips when choosing your building materi- reduce water consumption. Significant water Journal and REAL Trends. The suggested by the Utah Food Bank. als: savings can be generated by installing a annual ranking listed the top 250 Food barrels will be placed at the Choose building materials that are water-wise landscape. Did you know that agents and teams in four separate front of the stores as a convenient locally produced. Buying locally cuts down most Americans use more than 50 percent of categories: individual sales vol- drop off for customers wishing to on fossil fuel consumption and resulting their monthly water to maintain their land- ume, individual transaction sides, donate. emissions required to transport materials. It scapes? Choosing natural landscaping mate- team sales volume and team trans- • Salt Lake City-based is more economical and socially responsible rials that don’t require water — such as boul- action sides. Instefjord ranked Associated Retail Operations 184th among the top 250 Realtors (Macey’s, Fresh Market, Dan’s, to build with materials manufactured from ders, decorative gravel and mulch — will for the number of transactions Lin’s and Dick’s Markets) has your local construction materials supplier. help you create a beautiful landscape while completed. During 2011, she increased its Make-A-Wish Choose building materials containing reducing water needs at the same time. was responsible for 143 transac- fund-raising goal from $75,000 recycled products. Ready-mixed concrete Build a sustainable space from the out- tion sides, according to The Wall to $100,000 with the overall goal is a versatile building material made from side in by using sustainable home building Street Journal and REAL Trends, a of granting 20 wishes by Aug. 4 sand, aggregates, cement powder and water. materials like ready-mixed concrete, asphalt national communications and real through selling star icons. Last Ready-mixed concrete may contain recycled and landscaping materials. For more infor- estate consulting company that year Fresh Market led the most compiled the figures. In addition, successful external fundraising materials that were once considered waste. mation about sustainable building materials, Instefjord was recognized as the event for Make-A-Wish Utah, One of those materials is fly ash. contact Staker Parson Companies at (801) top Coldwell Banker Residential contributing more than $47,000 in Fly ash is a byproduct from coal-fired 731-1111 or visit www.stakerparson.com. Brokerage agent for number of proceeds by selling star icons. power plants. Concrete mixes can contain up units sold in 2011 and received • IKEA, the world’s lead- to 50 percentEnterprise.pdf fly 1ash 7/16/2012 depending 10:20:34 AM on the appli- Randy Anderson is vice president of materials and the Coldwell Banker International ing home furnishings retailer, last cation and specifications of the concrete. north construction for Staker Parson Companies. President’s Premier Award. week officially plugged in the solar energy system installed at its RETAIL Draper store, the state’s largest • BERNINA of America, a private commercial solar proj- manufacturer of sewing, embroi- ect. The 180,500 square foot PV Bring in this ad for 15% o dery and quilting machines, array consists of a 1,015-kW sys- your landscape materials recently honored its top dealers tem, built with 4,228 panels. IKEA for 2011 that demonstrated exem- Draper’s program will produce purchase plary sales, service and customer approximately 1,487,080 kWh O er expires September 1, 2012 education. BERNINA multiple- of clean electricity annually, the store dealerships with the highest sales dollar volume during 2011 continued on page 13 were honored. Awardees included C Rhonda Lopez, Nuttall’s Inc., M

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www.centuryeq.com 10 The Enterprise July 30-Aug. 5, 2012 Getting ready to think? Ten ways to fire-up your business What are you thinking? By John Graham and deductively, who understand what they’re In high school, we learned Shakespeare’s asked to do and why, who evaluate accurately, rec- I’ll be spending the month of ter. I spend a lot of my time in parks indelible words, “What’s past is prologue.” But ognize problems before they occur, offer creative August in Paris with my family. I and by water. Something about the that’s where we stopped, missing the key part of solutions, see the big picture and communicate can’t describe how wonderful it will sound of wind or the sound of the the bard’s advice: “Whereof what’s past is pro- clearly. Anyone with these “skill sets” can easily be. My goal is to finish a book, take water is calming. Just an added logue; what to come, In your and my discharge.” adapt to changing requirements and move into new in the culture, enjoy my family and note: I do not listen to music while It’s a clear message: don’t depend on what’s hap- situations easily and successfully. think. I write, but if I did I would listen to pened so far; it’s all in your hands now. 6. Align marketing and sales. This is no job Investing time in your thoughts light jazz or classical. If that’s true, then don’t waste time on gim- for wimps. It’s tough but worthwhile. If too many – especially in an amazing place – 6. Don’t let your thoughts get micks that sound great but fizzle faster than fire- marketers are prima donnas, too many salespeople creates incredible results. More on away. Rather than dwell on them, works in San Diego Bay on the Fourth of July or are hopelessly narcissistic, which makes it nearly that later. write down the key words so you putting the blame on “changing business condi- impossible to get them aligned successfully. Even Jessica, my partner and mother don’t forget. Thoughts are fleeting. tions.” Unload all the “prologue” stuff and make so, marketing and sales are two sides of the same the moves that make a difference today. With that coin: marketing creates customers and sales gets of our daughter Gabrielle, came up If you wait one minute and then go guidance, here are 10 ways to fire-up a business: the orders. Not too complicated. with a great idea to give our back to it, it’s gone. 1. Get the messaging right. When someone Believe it or not, no company can thrive staff an insight into what 7. Write your biography. says, “The ultimate driving machine,” there’s today if one or both act as if the other doesn’t or we do in Paris by giving Just a short history of where no need to say more. It’s BMW. Then there’s shouldn’t exist. If marketing fails to cultivate cus- them a week off (with full you grew up, who you are “America’s Favorite Ketchup.” There’s no need to tomers continuously, it’s failing to do the job and pay), and challenge them and what you did. Two or say Heinz. so is sales, when it fails to meet the numbers. to spend (invest) their time three paragraphs. Most businesses fail to take advantage of Alignment’s a necessity, not an option. thinking or achieving a life- 8. Write down what you effective messaging by sending conflicting mes- 7. Give, not give back. Yes, there’s a differ- long goal. love about work, what sages or focusing on themselves and meaningless ence, a big one. “Giving back” lets CEOs get all I’m sending my staff a you hate about work peripheral junk rather than the customer. puffed up and ponderous, making certain everyone Jeffrey few ideas on thinking to get and what you wish were The place to start is to make sure every knows how generous, caring and wonderful they Gitomer them going, and I’m shar- different at work. From employee is trained and then held accountable for are. ing them with you. These that list (especially what delivering the same compelling customer-focused Giving’s different. It’s an act of concern and are personal insights that will help you hate about it) you will begin message, day in and day out. commitment and it’s also mostly low-key and done you achieve some original thought, to generate a few ideas. Write them 2. Tell it like it is. U.S. Army general and simply and quietly. Apple’s image isn’t harmed reaffirm some existing thought and down immediately and then let them former Secretary of State Colin Powell was asked because the company doesn’t proclaim its chari- maybe even get rid of a few unwant- sit for a day. Don’t just write the to name the book that made him want to a writer. table giving from the rooftops. ed thoughts … idea, write everything you are think- “My checkbook,” he replied, pointing out that his When giving is loud and ostentatious, it 1. Identify your NOW feel- ing about it. I refer to it as a brain 38 years in the military limited his income. He sounds more like a commercial than an act of gen- ing and state of mind. What’s dump. Having written more than needed to improve his finances, particularly after erosity. up? Happy? Sad? Afraid? Mad? It’s 1,000 articles, they often come from putting three kids through college. It may be that the best form of giving is deliv- important that your mind at least frustration, not just ideas. And when There was none of the often-heard blathering ering on our promises so that customers receive about “having a life-long dream of being a writer.” what they expect. It’s an unusual gift, to be sure, be in “neutral” before you start I first think of them, I immediately The motivation was simple: he needed money. and one that creates respect, satisfaction and loy- the thinking process, and the more write everything down that’s in my If you want to be trusted, tell it like it is. alty. the needle leans toward happy and head, not in sentence format – just 3. Make it easy for employees to work. 8. Stop kidding ourselves. A company presi- positive, the more productive and the ideas and words so I capture the There’s an abysmal amount of ancient MS Office dent picked up a consultant in his new Mercedes rewarding the thinking time will thought and can go back and fill it software in use every day, along with an array of convertible. After talking about it, he said, “It be. in later. other outdated stuff. Old, slow printers are every- really pleases me that our employees are so happy 2. Wake up and write. It 9. Write everything down at where, wasting hours of time every month. that I got it.” doesn’t matter what it is, just write the end of your day. Before you Desktop computers are manacles, tethering Self-delusion tops the list of all executive whatever comes to mind. Don’t go to bed at night clear your mind employees to their desks. Every salesperson should errors. How long did RIM and Kodak fantasize force yourself to do it, just let words so you can dream and wake up with have an iPad, as well as anyone who must get up about the viability of their respective companies? flow. As you think, capture your answers. You do this by writing and check on anything. The RIM folks couldn’t tolerate the idea that words. your thoughts, your to-dos, your It’s strange. When a business executive wants their beloved Blackberrys were history, while the 3. Mentally go back to the challenges and maybe even your something, it’s called a “wise and necessary invest- Kodak execs couldn’t conceive of a world without house you grew up in and picture hopes and fears before you go to ment.” But when an employee makes a similar film, until it was too late. It’s so easy to convince yourself in each room one at a bed. Once it’s written, you can for- request, the boss labels it an expense that’s “not in ourselves that our picture of reality is real, even time. Stories will begin to pop into get about it. This will allow you to the budget.” though all the signs point their fallacy. your head about what happened. sleep like a baby and wake up with 4. Figure out the future. Five of Fiat’s plants 9. Drop the gobblydegook. There’s a bizarre Pick the fun ones and document an uncluttered mind. in Italy produced 650,000 cars with 22,000 work- belief that just about any business communica- them. This may even prompt you to Please take advantage of your ers in 2009, while one plant in Poland turned out tion will be viewed with authority by using the call some people you love who you personal time. It will pass quickly. 600,000 vehicles with only 6,100 workers, accord- right words. They range from scalable, silo, core haven’t been in touch with recently. Try to invest as much of it as you ing to a Wall Street Journal report. competency, actionable, robust, bulk up, space, 4. Don’t write about your can FOR YOURSELF. I’ll be doing Dramatic changes are on the way if businesses footprint, game changer, view from 30,000 feet, are to survive, and no one who receives a paycheck think outside the box, low hanging fruit, strategic goals – focus on things you would the same. is exempt. It’s taken a long time to figure out that business plan, to drill down and ROI — as well as like to achieve. Write a bucket list “creative destruction” is a fact, and not a textbook a hundred more. Their appeal is that they sound so of places you must go before you term. compellingly “corporate.” die. Go online and find pictures of Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction By the way, change is on the way at Italy’s If the truth be told, instead of making those each one of them and paste them is Worthless Customer Loyalty is Fiat plants. who use them sound smart, gobblydegook sends next to the places you want to go. Priceless, The Little Red Book of 5. Hire the right people. The current accent the opposite message. The more they say, the more Make it real. Going to India may be Selling, The Little Red Book of Sales on employees “having the right skill sets” is a red they make it clear to everyone that don’t have a a place you want to visit, but putting Answers, The Little Black Book of herring. The concept, fostered by for-profit and clue as to what they’re talking about. a picture of the Taj Mahal makes it Connections, The Little Gold Book public schools and colleges, was aided and abetted The best solution is to avoid all the gobblyde- more real. After you have listed all of YES! Attitude, The Little Green by politicians and eagerly espoused by employers. gook and put it all in your own words. the places, jot down a few things Book of Getting Your Way, The Little One outfit is partnering with a top public 10. Work. It seems as if the people who really you MUST do. Maybe it’s run a Platinum Book of Cha-Ching, The university to offer one-year online “certificate pro- do the work in most businesses are at the bottom of marathon, or go to the library more Little Teal Book of Trust, The Little grams” for retiring boomers at $10,000 a shot. If the personnel charts and the closer you get to the often. Whatever it is, or they are, Book of Leadership, and Social that’s not nonsense, it’s close to it. What will those top, the concept of work tends to be more than a bit commit to it (or them) in writing. BOOM! His website, www.gitomer. who plunk down their retirement funds to pay the fuzzy. com, will lead you to more informa- Add to the lists regularly. tuition have at the end of 12 months? A job or a Change is in the air these days, so a good tion about training and seminars, or 5. Find a quiet place where certificate to hang on the wall? place to begin is by trashing the high-back leather e-mail him personally at salesman@ The major problem facing businesses is find- you can be alone to write. Starbucks gitomer.com. ing employees who know how to think inductively see FIRE-UP page 13 is not the best place. A park is bet- © 2012 All Rights Reserved July 30-Aug. 5, 2012 The Enterprise 11 Twenty tips for minimizing your Doing what really works taxes in 2012 and beyond As owners and managers, we have to simplify. make every dollar count. Our profit margins Promote cooperation and information Will the Bush-era tax cuts expire next gift/estate/GST exemption will reset to $1 are razor thin, so, to remain in business, we exchange across the entire company. year? We may not have an answer to million and portability will be lost. need focus on doing what really works. Put your best people closest to the that question for several months. After the • Consider a donation of appreciated The Evergreen Project is a study of action. November elections, you could see them stock to charity. Instead of a cash gift, you 200 well-established management practices The Secondary Practices – you must extended once again. Nothing is certain: could do this and get (1) a charitable deduc- that were employed for more 10 years by achieve excellence in two of these four: with the daunting financing challenges the tion for the full market value of donated 160 companies. The study looked at both Talent: Winners hold on to talented federal government faces, they may finally shares, and (2) a way to avoid tax on successful and unsuccessful companies, employees and develop others. expire in 2013. the unrealized gains of the security. The and contrasted performance swings. The Fill mid and high level jobs with your If your goal is tax minimization, here investors who can get the most out of this study identified eight management prac- outstanding internal talent. are 20 “to-dos” you might want to accom- are those who itemize deductions and fall tices. Four are primary essential elements Ensure management is actively plish before 2013 arrives; alone or in com- into the 15 percent tax bracket or higher. to success and four are secondary. involved in selection and development of bination, they could save you some money. A reminder: you have to have owned the The study determined that to be suc- people. Just one note beforehand: consult the tax shares for at least a year. cessful, business owners must have in place Provide top of the line education or financial professional you trust • Arrange tuition payments to the four essential practices, and at and training for development pro- before you make these moves so take advantage of the AOTC. The least two of the secondary. grams. you can see how they fit within American Opportunity Tax Credit Here’s what the Evergreen Retain talent by providing work your overall financial picture. is set to expire in 2013. So it might Project determined that really that is challenging and meaningful • Sell some stocks or funds be worth it to pay 2013 tuition dur- works: for best performers. before 2013 arrives. If you sell ing 2012, as the AOTC provides up Strategy, Execution, Culture Innovation: Be an industry lead- highly appreciated investments to $2,500 in tax credits on the first and Structure. These were identi- er in transforming innovations. that you have held for at least a $4,000 of qualifying educational fied as the four Primary Practices. Relentlessly pursue disruptive year during 2012, you can exploit expenses. Even better, 40 percent of Excellence in these areas sepa- technologies and business mod- the current 0-15 percent capital the credit (up to $1,000) is refund- rates winners, tumblers, climbers Joseph els. gains rates. In 2013, all but those in able – you will get that portion and losers. Your company needs Leverich Anticipate, rather than the 15 percent income tax bracket Mark Lund back even if you owe no taxes for to achieve excellence in all four of react to, industry changes. will face 20 percent capital gains 2012. Generally speaking, a single these key areas. Cannibalize your existing products or taxes. On top of that, a potential 3.8 filer with MAGI of $80,000 or less Talent, Leadership, Innovation and services. percent Medicare surtax could be levied on or joint filers with MAGI of $160,000 or Mergers and Partnerships. Two of these Continually create new products and certain net investment income for individu- less can claim the AOTC for the qualified four are required to separate your company services. als with MAGI (modified adjusted gross expenses of an eligible student. Phase-outs from the pack. Leadership: Make your leaders deep- income) of $200,000+ and married couples kick in at those levels; single filers with This business model is called “making ly committed to your business. with MAGI of $250,000+. Just think: you MAGI above $90,000 and joint filers with 4 + 2 work for you.” By focusing on these Leadership style and characteristics could use your tax savings for tuition, mort- MAGI above $180,000 cannot claim the principles with intensity, you can better don’t matter, but a FULLY committed gage payments or other priorities. credit for 2012. ensure your company’s success. leader is paramount to the business. • Think about taking some profits • A huge tax credit is available in 2012 The 4 Primary Practices Leaders need integrity in their words while 2012 is still here. The current 15 for adoptive parents. The federal adoption Strategy: Make your strategy clear, and actions. Trust has to be absolute. percent tax rate for qualified dividends tax credit is up in the air for 2013; it may narrowly focused and well-understood by Leaders and managers need to build could disappear in 2013. If the EGTRRA/ be renewed or made permanent, but such a employees and customers. strong connections. JGTRRA cuts aren’t extended again, these move might come at the eleventh hour. For Your strategy must have a clear value Leaders need to be future focused to dividends will be taxed as ordinary income 2012, the adoption tax credit is $12,650. It proposition for the customer. spot opportunities and new markets. next year (the maximum tax rate on them isn’t refundable (so if your total tax bill is Develop your strategy from a cus- Leaders need to communicate their will jump to 39.6 percent). less than the credit, you won’t get additional tomer perspective or outside in, not on your vision so convincingly that others adopt it. • Retired and wealthy? Consider with- money back from the IRS). It can be carried gut feel or instinct. Board or management committee drawing more from your IRA. Are you forward for up to five years – if you don’t Keep your strategy sharply focused on must have a stake in the outcome. in the top tax bracket? You might end up end up using 100 percent of the credit for a core offering. Mergers and Partnerships paying as much as 43.4 percent in income the 2012 tax year, you can use the remain- Continually fine-tune your strategy Merge for growth and synergy, not for taxes to Uncle Sam next year (projected der to offset some federal income taxes based on customer research. diversification. 39.6 percent top tax rate + possible 3.8 through 2017. Continually monitor your competitive Have a planned process for spotting percent Medicare surtax). This is assuming • Fifty percent business expensing is environment. and processing deals. the EGTRRA/JGTRRA cuts expire in 2013 scheduled to be eliminated in 2012. The Have a clear brand promise. Make small regular strategic deals, – and with the federal deficit and Social bonus depreciation limit that benefited large Execution: Develop and maintain then a mega-merger. Security’s revenue issues, they may. The top companies (50 percent for 2012) will be flawless execution. The 4+2 formula is documented in tax rate for 2012 is just 35 percent, so if a gone if the Bush-era tax cuts sunset. So next Consistently meet customers’ expec- the book What Really Works: The 4+2 sunset for the Bush-era tax cuts looks pretty year, big businesses could lose a chance to tations. Formula for Sustained Business Success. certain, it may be worthwhile to withdraw take a 50 percent write-off on new capital Empower front-line employees The danger of such a simple formula is that some IRA assets in late 2012 for 2013 equipment. to effectively communicate and react to achieving the four primary practices and needs. • Section 179 limits could really drop changing market conditions. two secondary practices sounds simple. • Consider going Roth. If tax brackets in 2013. In 2012, the maximum Section 179 Consistently eliminate all forms or Even companies that once had these prac- reset to 2001 levels and stay there for years deduction allowance is $139,000. For 2013, excess and waste, improving productivity tices implemented find it challenging to to come, then converting a traditional IRA it is slated to return to $25,000. The limit on at a rate that is twice your industry aver- continually keep them fully engrained in to a Roth IRA may be a really smart move capital purchases — $560,000 in 2012 — is age. their company culture. The key for your (future tax-free withdrawals of earnings, scheduled to fall back to $200,000 in 2013. Culture: Hold high expectations business is to identify those areas where assets passing tax-free to heirs). • You may want to roll over assets from about performance in all areas all, of the you can make improvement that yields the • Think about exploiting the current a Coverdell ESA into a 529 plan. Should time. most results. $5.12 million lifetime gift tax exemp- the Bush-era tax cuts expire, Coverdells Inspire all team members to do their Start the process of improvement by tion. A 2010 law reset the lifetime fed- will also be hit hard: the annual contribu- best – all of the time. adopting the “4+2” formula. This is not a eral gift, estate and GST tax exemptions tion limit for any one beneficiary will drop Encourage team to make independent one-time goal but a journey on paths that at $5,120,000 through the end of 2012 and to $500 from $2,000, only college-relat- decisions to improve operations. will help your company to achieve and made the exemption portable between mar- ed expenses will be considered “qualified Reward achievement while continu- excel in these challenging times. Start your ried spouses. This means (a) you currently spending” and contributions to a Coverdell ally raising the bar. company’s journey now. have the ability to gift up to $4.12 million and a 529 plan will no longer be allowed Create a challenging and fulfilling more than the old $1 million lifetime limit, in the same year (among other drawbacks). work environment. Joseph P. Leverich, CPA, is managing part- and (b) married couples can currently gift If the Bush-era cuts are extended for the Inspire people to do their best – psy- ner and president of the Leverich Group, up to $10.24 million. This gives you an middle class, Coverdell ESA benefits may chological rewards are highly valued. a Salt Lake area-based CPA and man- amazing opportunity to reduce the size of not be so impacted – but no one knows at Structure: Make your organization agement consulting firm that specializes in solutions and services to businesses. your taxable estate. On Jan. 1, 2013 (barring this point. flat, fast and flexible. E-mail comments and questions to jlever- Congressional action), the lifetime unified Reduce bureaucracy and complexity – see TAXES page 13 [email protected]. 12 The Enterprise July 30-Aug. 5, 2012 July 30-Aug. 5, 2012 The Enterprise 13 from page 9 hippest boutiques in each state • Only months after collect- ence, including drug development “Volunteer Your Voice” contest. equivalent of reducing 1,025 tons and describes why shoppers love ing a National Medal of Science and more efficient ways to pro- Through Aug. 16, the firm will of carbon dioxide (CO2), eliminat- Bastille: “Because it’s chic as from President Barack Obama, duce gasoline and home heating accept photo submissions, including ing the emissions of 201 cars or chic can get. Design snobs will University of Utah organ- oil,” the 164,000-member soci- a caption of up to 500 words, of powering 128 homes yearly (cal- swoon.” ic chemist Peter J. Stang has ety said in announcing the honor. individuals using their language culating clean energy equivalents Created in 1997 as a shoe salon, won the highest honor from the Stang has served as editor of the translation/interpretation skills in at www.epa.gov/cleanenergy/ Bastille moved to The Gateway in world’s largest scientific group: Journal of the American Chemical a charitable manner. Entries can be energy-resources/calculator.html). 2001 with full women’s and men’s the 2013 Priestley Medal from Society since 2002. He and a staff made on the company’s Facebook • ELLE.com, the website clothing lines including shoes and the American Chemical Society. of seven process more than 12,000 page at http://on.fb.me/OmlO2R. of the global fashion magazine accessories. It carries brands such The medal – basically a lifetime research manuscripts a year. Two winners will be named and Elle, recently named The Gateway Rick Owens, Doo.Ri, Band of achievement award for chemists – $2,500 in donations will be made shopping center’s Bastille as Outsiders, Alexander Wang and “recognizes Stang’s cutting-edge SERVICES to the victor’s charity of choice, Utah’s top shopping destination. 10 Crosby. research that has had far-reaching • U.S. Translation Co., along with some extra cash for the In its piece titled “50 States of implications for many areas of sci- Salt Lake City, has launched the winner. Shopping” the site designated the SCIENCE

tax-deferred and characterized as TAXES return of capital, reducing cost from page 11 basis for the individual investor. • You may want to have that support • Before 2013 arrives, you dental work or elective surgery might want to exercise some stock done in 2012. Next year, you will options. As the prospect of higher only be able to deduct the medical taxes looms, it may be a good what you expenses exceeding 10 percent time to weigh taxable hedging of your AGI. For 2012, you can strategies and make 83(b) elec- deduct medical expenses when tions on restricted securities. they surpass 7.5 percent of your • An MLP might prove to AGI. be a useful business structure. • Alert: phase-outs on item- Typically, around 80-90 percent ized deductions may return in of the distributions from a Master 2013. The phase-out on the per- Limited Partnership (MLP) are sonal exemption is also slated to come back. So it may be smart for higher-income families to fulfill FIRE-UP pledges made to 501(c)(3) non- from page 11 profits in 2012. • Pay attention to asset loca- chair and the “see how important tion. You may want to move I am” door-sized desk. Those income-producing assets into tax- with such trappings, among oth- deferred accounts or shift assets ers, view themselves as invalu- that generate capital gains into able “executives” and the hard- taxable accounts. Doing this may est workers of all, who often give you opportunities to defer believe they should be accorded those gains and practice tax loss special benefits and privileges. harvesting. All that should have gone • Lastly, beware portfolio years ago. They cause people to churn. The reality is that some view themselves as important; funds make frequent trades. they have a right to come in late, These trades result in taxable leave early, fly first-class and be gains (including short-term gains, unaccountable. which are taxed severely). Getting If you want to improve pro- out of certain funds may save you ductivity, stop hiring consultants some tax dollars. and come to work on time and stay all day. It works wonders. When it comes right down Mark Lund is a portfolio man- to it, having put all the excuses agement specialist, investor coach, speaker and author of aside, the firing up of a business The Effective Investor. To get a is up to us. free whitepaper, “8 Myths Killing Portfolio Performance,” go to www. John R. Graham of GrahamComm StonecreekWealthAdvisors.com. is a marketing and sales con- Lund offers investment manage- sultant and business writer. He ment services through Stonecreek Wealth Advisors Inc., an inde- publishes a monthly e-newslet- Biaggi’s - 10% off entire meal pur- pendent fee-only Registered ter, “No Nonsense Marketing At The Gateway, we believe that when you work hard, you Investment Advisor Firm in Utah. chase (lunch only) & Sales.” Contact him at john- Reach him at 11650 S. State St., deserve some perks. That’s why The Gateway, FM100 and The [email protected], (617) 774-9759 Suite 360, Draper UT 84020 or Enterprise have created and exclusive “Office Worker At Work or johnrgraham.com. (801) 545-0696. Franklin Covey - $15 off any $75 Perk Card” for all of you hardworking people. (Fill out your At purchase Work Perk Card application at The Gateway Concierge desk.) Flash your card and get savings and discounts at participat- ing shops and restaurants at The Gateway.

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Birthers, neo-birthers and right-wing sleaze As the Obama years unfold, the original “birther” claims. But left-wing mentor who somehow some degree, is merely a minor the president as an illegitimate observers who lived through the logic and proof have no impact on transformed Barack Obama into influence in this kid’s life. How Marxist — and in unconscious Clinton era sometimes have the such speculations, whose aim is to a communist — an old theory much credibility do you put into mimicry of the most dedicated eerie feeling that they have been profit from prejudice and extrem- that first surfaced in 2004 — but that?” communists, they behave as if the here before — particularly when ism. Obama’s actual father, too. To Kincaid replies: “I put a lot end justifies the means. directing their gaze toward Consider the source Kincaid, the influence of Davis, into it now that I’ve seen Joel Like the “Clinton Chronicles” the far right. The roiling para- — in this instance, an who died 25 years ago, explains Gilbert’s film, it’s called 'Dreams video that portrayed the then-pres- noia and hatred that marred individual named Cliff why Obama has pursued policies From My Real Father.' It’s an ident and first lady as murder- American politics when Bill Kincaid, who runs an such as universal health coverage incredible film. He’s going to show ous drug-runners (distributed by and Hillary Clinton were in old extreme-right out- (although AIM has yet to investi- excerpts, he’s going to talk about such respectable figures as the late the White House has resur- fit called Accuracy gate how the communists duped his research. He’s expanded upon Jerry Falwell), the current crop of faced in attacks on Barack in Media and, appro- Romney into that Massachusetts what we and [author] Paul Kengor right-wing propaganda embraces and Michelle Obama, who. priately, venerates the health plan). have done, and I think it deserves whatever wild fantasy might pro- like the Clintons, have been likes of Richard Nixon Kincaid recently appeared a fair hearing. Now, whether or voke fear and rage. And as with maligned repeatedly as com- and Joe McCarthy. to promote a movie and book not he was a real father or not, the what became known as “Clinton Joe Conason munist, subversive, Satanic The last big plot based on these claims on a Secure fact is Frank Marshall Davis has Derangement Syndrome,” the and, above all, illegitimate. promoted by Kincaid Freedom Radio show hosted by an influence over our president, insane accusations eventually Speaking of illegitimate, the was the “bipartisan” scheme to Fred Grandy, a former Republican and that’s the critical issue, but infected mainstream discourse, latest assault on the Obama family portray the “murder” of Clinton congressman who played Gopher if indeed if he was Obama’s real with supposedly sane politicians is a new movie purporting to show White House counsel Vince on “The Love Boat.” (I couldn’t father, and the comparison’s pho- and pundits endorsing or simply that the president’s father was not Foster as a suicide. Among the make this up, and neither did tos are striking, then we’ve got alluding to the maddest conspira- Barack Hussein Obama Sr., but conspirators fingered by Kincaid People for the American Way.) even more of a mystery behind cy theories. an African-American radical and in this alleged cover-up was the In a revealing exchange, the this guy in the Oval Office.” Should Obama win a second poet named Frank Marshall Davis. Republican independent counsel sophisticated Grandy says: “I’ve The key phrase? “Whether term, don’t be too surprised when There is no more substance to this Kenneth Starr, best known for his heard this rumor before — that or not he was a real father or they demand impeachment. claim than that the president was dogged, intemperate, $50 million Frank Marshall Davis was more not.” The malaprop-prone Kincaid actually born in Kenya and edu- effort to remove President Clinton than just a surrogate father to doesn’t really care whether his cated in an Islamist madrassa. from office. Barack Obama, he may well have filmmaker or his author can cite Joe Conason is the editor in chief of NationalMemo.com. Taken seriously, this “neo- Now Kincaid is insinuat- been this guy’s real father, and an iota of proof to support these Copyright 2012 birther” fable would tend to erode ing that Davis was not merely a Barack Hussein Obama Sr., to speculations. They want to smear Creators.com. July 30-Aug. 5, 2012 The Enterprise 15

News versus propaganda Since so many in the media 50s. But corrections never catch book by Al Gore — the media control laws have lower murder ing virtually the entire law-abid- cannot resist turning every trag- up with irresponsible news broad- heard no evil, saw no evil and rates? Only if you cherry-pick the ing citizenry. Gun crimes, includ- edy into a political talking point, casts. The James Holmes who spoke no evil. If people in the data. ing murder, rose as the public was it was perhaps inevitable that (1) belongs to the Tea Party has been media cannot decide whether they Britain is a country with disarmed. someone would try to link the deluged with phone calls. I hope are in the business of reporting stronger gun control laws than the Meanwhile, murder rates in shooting rampage at the he sues ABC News for news or manufacturing propagan- United States, and lower murder the United States declined during Batman movie in Colorado every dime they have. da, it is all the more important rates. But Mexico, Russia and the same years when murder rates to the Tea Party, and that This is not the that the public understand that Brazil are also countries with in Britain were rising, which were (2) some would try to make first time that the main- difference, and choose their news stronger gun control laws than the also years when Americans were it a reason to impose more stream media have tried sources accordingly. United States, and their murder buying millions more guns per gun control laws. to create a link between As for gun control advo- rates are much higher than ours. year. Too many people in conservatives and vio- cates, I have no hope whatever Israel and Switzerland have even The real problem, both in the media cannot seem to lence. Years ago, the that any facts whatever will make higher rates of gun ownership than discussions of mass shootings and tell the difference between Thomas Oklahoma City bomb- Sowell the slightest dent in their think- the United States, and much lower in discussions of gun control, is reporting the news and cre- ing was blamed on Rush ing — or lack of thinking. New murder rates than ours. that too many people are too com- ating propaganda. Limbaugh, despite the York’s Mayor Bloomberg and Even the British example mitted to a vision to allow mere NBC News apparently could absence of any evidence that the CNN’s Piers Morgan were on the does not stand up very well under facts to interfere with their beliefs, not resist doctoring the transcript bomber was inspired by Rush air within hours of the shooting, scrutiny. The murder rate in New and the sense of superiority that of the conversation between Limbaugh. pushing the case for gun control York has been several times that those beliefs give them. George Zimmerman and the police Similar things have hap- laws. in London for more than two cen- Any discussion of facts is after the Trayvon Martin shoot- pened repeatedly, going all the You might never know, from turies — and, for most of that futile when directed at such peo- ing. Now ABC News took the way back to the assassination of what they and other gun control time, neither place had strong gun ple. All anyone can do is warn fact that the man arrested for the President John F. Kennedy, which advocates have said, that there control laws. New York had strong others about the propaganda. shooting in Colorado was named was blamed on a hostile right-wing is a mountain of evidence that gun control laws years before James Holmes to broadcast to the atmosphere in Dallas, even though gun control laws not only fail to London did, but New York still world the fact that there is a James the assassin had a long history of control guns but are often coun- had several times the murder rate Thomas Sowell is a senior fellow Holmes who is a member of the being on the far left fringe. terproductive. However, for those of London. Tea Party in Colorado. But, where the shoe is on at the Hoover Institution, Stanford other people who still think facts It was in the later decades of The fact has since come out the other foot — as when the University, Stanford, CA 94305. matter, it is worth presenting some the 20th century that the British that these are two different men, Unabomber had a much marked- Copyright 2012 one in his 20s and the other in his up copy of an environmentalist of those facts. government clamped down with Do countries with strong gun severe gun control laws, disarm- Creators.com TRIM: 10.25”

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