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labusinessjournal.com LOS ANGELES BUSINESS JOURNAL Volume 33, Number 30 THE COMMUNITY OF BUSINESSTM July 25 - 31, 2011 • $3.00

Up SPECIAL REPORT Mayor Grabs Ax Front LARGEST AND MOST PROFITABLE PUBLIC COMPANIES For L.A. City Tax How Frederick’s of Hollywood GOVERNMENT: Villaraigosa plans to bust wants to kill gross receipts levy. out in the Middle East. By HOWARD FINE Staff Reporter PAGE 3 To the delight of local business groups, Los Ange- les Mayor Antonio Villaraigosa last week said he wants to kill the city’s high and much despised gross receipts business tax. The mayor’s change of stance – he has in the past only favored reducing the gross receipts tax and grant- ing some exemptions to it – makes it likely that a mea- sure to kill the tax will go to the council and face a good chance of adoption. “I do favor elimination of the gross receipts tax,” Villaraigosa told the Business Journal. “We have to People create a smarter, more efficient tax structure.” The mayor’s shift comes as a committee is about to

Please see GOVERNMENT page 47 Scandal May Shut Business Bureau Robert O’Brien NON-PROFIT: is helping Mitt L.A. chapter Romney and hurt by pay-for-play revelations. Afghanistan, but is happy being By ALFRED LEE Staff Reporter an L.A. lawyer. Pumped Up The beleaguered L.A. branch of the Better Business PAGE 18 Bureau is fighting possible expulsion from its parent BLOOMBERG NEWS organization after a scandal over its ratings system. Comment Despite the tepid economic recovery, solid corporate earnings have pumped The Council of Better Business Bureaus held a up the stock market to near three-year highs – and the Business Journal’s hearing last week to determine whether to expel the annual list of largest local public companies shows Los Angeles stocks have Better Business Bureau of the Southland Inc., a branch servicing Los Angeles, Orange, Riverside and been no exception. The 180 companies on the list saw their cumulative market San Bernardino counties. cap rise 27 percent in the 12 months ended June 30. No. 1 Occidental The local branch sued to stop the hearing but a Petroleum Corp., which pumps oil from the Permian Basin in Texas, above, to judge denied that request. Results of the hearing, con- the Middle East, saw its market cap rise a staggering $22 billion. In a separate ducted by an ad hoc committee July 18 and 19 in Arlington, Va., were not available at press time. list of most profitable companies, supplement maker Herbalife Ltd. enjoyed The committee was to review a report from internal the healthiest profits for the second straight year. BEGINNING ON PAGE 23 Please see NON-PROFIT page 47 Why some are going to bat for Frank McCourt. PAGE 51 No Concessions for Movie Theater? Century City,” said Marilyn Gallup, a member of the DEVELOPMENT: Luxury Beverly Hills Municipal League residents group, at a MAIL TO: cinema too tall for Beverly Hills. Planning Commission meeting. “We have our own brand and cachet. This does not include a high-rise.” By JACQUELYN RYAN Staff Reporter Boca Raton, Fla., movie theater developer iPic Theaters, which owns Gold Class Cinemas, wants Beverly Hills may be home to some of Holly- to open the largest of its signature theaters on Canon wood’s biggest stars, but surprisingly it doesn’t have Drive. It would feature waiters, food prepared by a single first-run commercial movie theater. chefs, and recliners with pillows and blankets. And it doesn’t look like it’s getting one soon. However, the proposed luxury multiplex near A proposal to build a nine-screen multiplex has Wilshire Boulevard in the city’s Golden Triangle elicited strong opposition, even though the complex shopping district would be just inches short of 80 feet would feature $29 tickets and gourmet food befitting tall, nearly double the allowable height for the area. its 90210 ZIP code. That has prompted residents and even some local The problem? The proposed theater would be a business owners to say it should be dramatically

large development in a city that’s antidevelopment. RINGO H.W. CHIU/LABJ “We are not interested in being West Hollywood or Please see DEVELOPMENT page 48 Driven Off?: Site of proposed Beverly Hills theater.

Real World Insight for Middle Market Companies

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2 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011

LOS ANGELES BUSINESS JOURNAL ®

JULY 25 - 31, 2011 VOLUME 33, NUMBER 30 At Grant Thornton, we understand the complex business issues facing your industry. Our professionals work to keep you informed of tomorrow’s issues today.

RINGO H.W. CHIU/LABJ Passion for serving clients, industry specialization and partner Page 5: Meruelo Group’s Xavier Gutierrez at TV station KWHY’s studio in Burbank. involvement have been the hallmark of Grant Thornton LLP in the U.S. for more than 80 years. Plus, you get the SPECIAL REPORT: LARGEST & MOST PROFITABLE L.A. COMPANIES benefit of Grant Thornton International member firms in BIGGEST – Occidental Petroleum paced CHART – L.A.’s most profitable public more than 100 countries. Contact Joel Anik, Managing the field of L.A.’s largest public companies, companies, ranked by three-year average Partner, at 213.596.3484 or [email protected]. Visit us at which saw their combined market cap soar return on equity...... 26 GrantThornton.com and find out how it feels to work with by 27 percent...... 23 RANKINGS – The 180 largest public PROFITS people who love what they do! – Nutritional supplement maker companies in Los Angeles County, Herbalife delivered a healthy return to ranked by market capitalization as of investors...... 25 June 30...... 27

APPAREL – Clothing maker Guess sees its ON THE COVER move into markets across the globe as a sure GOVERNMENT – Mayor Antonio thing...... 8 Villaraigosa has joined the crowd calling for TECHNOLOGY – CalAmp has revved up an end to L.A. city’s gross receipts tax. revenue with a deal for its vehicle tracking Grant Thornton refers to Grant Thornton LLP, the U.S. member ﬁrm of Grant Thornton International Ltd, an organization of independently owned and managed accounting and consulting ﬁrms. DEVELOPMENT – A nearly 80-foot height systems...... 10 may mean curtains for a proposed high-end TICKETING – Ticketmaster forms movie theater in Beverly Hills. Washington lobbying group to preserve limits NON-PROFIT – Better Business Bureau on resale of its “paperless” tickets...... 10 Fisher & Phillips Value hopes to pinkslip its scandal-plagued L.A.- Columns & features – Media Watch 12, area chapter, which is fighting to remain open. Banking & Finance 14, Law 14, Atlanta News of the Week 16 Charlotte UP FRONT Chicago PEOPLE Cleveland INTERNET – E-mail service Columbia GiveBackMail.com’s main message is charity INTERVIEW – Arent Fox attorney Robert Dallas through the donation of ad revenue...... 3 O’Brien is busy building a case for Mitt Denver APPAREL – Frederick’s of Hollywood hopes Romney to be the next U.S. president. . . .18 Fort Lauderdale for a discrete boost in sales by opening shops Houston 3 Irvine in the covered-up Middle East...... INVESTMENTS & FINANCE Kansas City INSURANCE – Matthew Carlson rolls with a Columns & features – Econowatch 37, Many law firms talk about value as if it’s a new Las Vegas niche business offering coverage to L.A.’s LABJ Stock Index 38 concept. At Fisher & Phillips LLP, our commitment Los Angeles food trucks...... 3 to value dates back to the founding of the 444 South Flower Street Columns & features – Page 3, firm nearly 70 years ago. So how do we provide Suite 1590 Regional Report 4 REAL ESTATE this value? Los Angeles, CA 90071 phone: (213) 330-4500 Columns & features – Done Deals 40, toll free: (866) 424-2168 NEWS & ANALYSIS We do only one thing: Represent employers in labor Real Estate Column 42 and employment matters. You benefit from our deep fax: (213) 330-4501 TV – Meruelo Group hopes to channel Latino and broad expertise in the area of the law we Louisville know best. New England viewers to advertisers with the pickup of COMMENTARY New Jersey station KWHY...... 5 COMMENT Our attorneys treat your legal problems as business New Orleans INTERNET – Security software maker – Disneyland cost cuts let problems, and help you avoid legal disputes. We are Orlando CyberDefender’s problems have raised flags Charles Crumpley down at the Happiest Place responsive, we are economical, and we reward Philadelphia with investors...... 5 on Earth...... 50 our associates for quality work, not just for billable Phoenix ENTERTAINMENT – Visual effects studio BASEBALL – Jess and Rachel Bressi go to hours. We are national and local, with attorneys in Portland Digital Domain Productions is rolling with a bat for media-savaged Dodgers owner Frank 25 offices around the U.S. San Diego new Indian partner as the parent company McCourt...... 51 San Francisco refocuses on an IPO...... 6 TRANSIT – Beverly Hills merchants opposed For more on the Fisher & Phillips Value Statement, go Tampa LEGAL – U.S. regulators’ new lawsuit may to a planned subway stop are on the wrong to www.laborlawyers.com/value. Washington, DC undermine a previous suit against the former track, according to Kevin Klowden...... 51 execs of failed thrift WesCorp...... 7 Columns & features – LABJ Forum 50

Los Angeles Business Journal (ISSN 0194-2603) is published weekly. © 2011, Los Angeles Business Journal. Offices are located at 5700 Wilshire Fisher & Phillips LLP Blvd., Suite 170, Los Angeles, CA 90036. Periodicals postage paid at Los Angeles, CA and additional offices (USPS #492-930). Subscription prices: 51 issues and special issue, $99.95. For new and renewal subscriptions, call 1-800-404-5225. All other inquiries (323) 549-5225. Single attorneys at law copies, $3.00. Mailed copies, $5.00. Back issues, $8.00. Address and subscription inquiries to: Circulation Department, Los Angeles Business Jour- nal, 5700 Wilshire Blvd. Suite 170, Los Angeles, CA 90036. This newspaper is designed to inform decision-making executives, investors and man- ® agers on the trends, the growth and the ideas important to commerce and industry in Los Angeles County. Information in Los Angeles Business Solutions at Work National First–Tier Rankings Journal is gathered from sources considered to be reliable, but the accuracy of this information cannot be guaranteed. Neither that information nor Employment Law – Management any opinion which may be expressed here constitutes a solicitation for the purchase or sale of any securities. Opinions expressed in letters to the editor and commentaries are those of the authors and not necessarily those of Los Angeles Business Journal. Member Audit Bureau of Circulations. www.laborlawyers.com Labor Law – Management LABJ has been adjudicated Nov. 1985 to be a newspaper of general circulation. POSTMASTER: Send address changes to Los Angeles Business Journal, PO Box 16825, North Hollywood, CA 91615. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 UP FRONT LOS ANGELES BUSINESS JOURNAL 3

It’s not just the clothes as Agent Provocateur and La Boom and that’ll look different. Perla have stores in malls, and Bust in Mannequins dressed in lin- Victoria’s Secret opened two gerie and other apparel will locations in the region last year. Middle East grace store window displays Frederick’s announced in instead of photos or other adver- March that it had signed a Frederick’s hopes its tising imagery, and a barrier licensing deal with Abu Dhabi sexy styles find a home will block views into the rest of conglomerate Safeer Estab- in conservative region. the store. Advertising and lishment to open stores in six posters in the store will feature Middle Eastern countries. When it comes to women’s more bras and fewer panties. Safeer is investing in the build- fashions in the Middle East, you “The culture is, without ques- out of the shops and providing might think Frederick’s of Hol- tion, more conservative than knowledge on local trends. lywood wouldn’t be a good fit. what we are used to here,” Frederick’s is providing its style After all, that region is known acknowledged Tom Lynch, and brand experience, and train- for chadors and headscarves. chief executive at Frederick’s of ing of store employees. Maybe so. Still, the lingerie Hollywood Group Inc. Frederick’s Middle company was scheduled to “The folks there are more East ambitions are part open a 3,500-square-foot store discreet. But they are of the company’s plan in Abu Dhabi last week, its equally as interested in to take its sexy lin- first-ever international outpost being consumers of gerie to Europe, Asia and one of at least 10 locations this stuff.” and Latin America in it expects to open in the Mid- Frederick’s, the coming years, an dle East in the next three years. which has dual international expan- But to get local shoppers headquarters sion plan that Lynch said comfortable enough to slip into in New York could eventually eclipse its bedtime wear, Frederick’s is and Holly- its domestic business. RINGO H.W. CHIU/LABJ toning down its risqué look, and wood, isn’t the “I could foresee our Expanded Menu: Risk Solutions’ Matthew Carlson in Santa Monica at an insured truck. stocking store shelves with more first lingerie intentional revenue modest items such as long satin line to sell in being equal to, or national Group Inc. became founder of Rosa’s Bella gowns, chemises that still leave the region. exceeding, our domes- Insurer’s the exclusive underwriter. Cucina, an L.A. Italian food something to the imagination Brands such tic revenue in five to Curbside “I have always had an truck, recently switched to and three-piece pajama sets. seven years,” Lynch interest in insuring various Carlson’s program. Graziano, And they’re all in bright colors Lingerie: said. “That’s how impor- Appeal things on wheels” is how who owns her truck, had because – who knew? – black is Model for tant this is to our future.” Carlson, a self-proclaimed been paying $7,000 for auto out of fashion in the region. Middle East. – Alexa Hyland Matthew Carlson has foodie, put it. coverage alone, and now made covering food Carlson came up with the pays less than $6,500 for trucks his policy. idea after sampling his initial everything, including auto You’ve Got found on Yahoo Inc.’s service, donate millions a year.” bite of mobile cuisine a few and workers’ compensation. lists seven different charities Since most users will not Hungry patrons line up all years ago from Kogi BBQ, “It’s so different from what Charity that users can choose among, want to ditch their Yahoo or day to sample their favorites one of the first L.A. gourmet I was insured for and paying including the American Red Gmail address in favor of an from L.A.’s popular food trucks. It became his first before,” she said, noting she GiveBackMail donates Cross and the Animal Wel- @givebackmail.com account, trucks, but how can a truck account and paved the way didn’t even have theft or busi- e-mail ad revenue to fare Association. users can just for- operator recoup his losses for more than 100 other food ness interruption coverage. customer’s choice. Chief Executive ward messages to when the produce goes bad or truck accounts nationwide. However, Fred Needling, Rambod Yadegar the site, which also a tire pops on the way to the The comprehensive insur- who is president of With the time people acknowledged that allows people to lunch crowd? ance includes business inter- McMurtry & Bell, a San spend on e-mail each day, the a user will only end manage multiple e- Veteran insurance broker ruption coverage in case of a Jose insurance brokerage that number of messages can add up directing a few mail accounts. Matthew Carlson has an collision, crime coverage counts truck fleet owners up quickly. At least that’s dollars a year to his GiveBackMail answer: specialized food since trucks carry a lot of among its clients, believes the what brothers Rambod and or her given chari- has attracted some truck insurance. cash, mobile equipment insur- insurance will remain a niche Sam Yadegar are betting on. ty, since most ads 1,000 users since Carlson, vice president at ance for items such as deep business because it’s hard to The pair recently launched generate just 50 Rambod Yadegar launching in May, the L.A. office of Risk Solu- fryers and spoilage coverage. verify claims. GiveBackMail.com, a West- cents to $1.50 of but Lou Kerner, an tions Co., has carved out a Usually all that costs about “Most insurance carriers wood e-mail service that is shar- revenue for every 1,000 analyst at downtown L.A.- niche for himself in the grow- $500 annually if a truck aver- that I have experienced who ing ad revenue with charities. It impressions. But he said it can based Wedbush Securities, ing market. Last year, he ages under $200,000 in gross have written a substantial works this way: Each time a make a difference. said the site will struggle to started CateringTruckInsur- sales, he said, with the big sav- amount of accounts are not new ad appears when an e-mail “The main overall concept attract users. ance.com, a marketing site ings coming from packaging it crazy about getting involved is opened or sent, 25 percent of is to have, say, 500,000 people “You really need a funda- dedicated to the product, and with workers’ compensation in this type of business,” the revenue from that ad goes to just devoted to (donating to) mental improvement in the he’s been so successful that and standard auto coverage, Needling said. “It’s just too a charity selected by the user. cancer awareness,” he said. technology to get people to … this month New York insur- assuming the truck is not leased. hard to keep track of them.” GiveBackMail, which sells “Once you’re at a large scale change their behavior,” he said. ance giant American Inter- Rosa Graziano, the – Alexis Alagem ads on its pages similar to those like that, we’ll be able to – Natalie Jarvey

Mule Train Comin’ Through

Gary Toebben had a noteworthy sighting on his about my experience, she wants to go back.” financial instruments to first Rim-to-Rim hike through the Grand Canyon. PAGE 3 finance the housing,” The 63-year-old chief executive of the Los Keep It Simple Green said. “I said, ‘If Angeles Area Chamber of Commerce joined vet- CHARLES CRUMPLEY USC Lusk School of Real Estate Director you don’t understand it, eran canyon trekkers on the trip, chamber Senior Richard Green has spent years teaching stu- don’t do it.’ It sounds Vice President David Rattray and his wife, Terri, dents about the risks and rewards of real estate, like a simple, obvious and Ron Gastelum, a former chamber chief ferent group last year, decided she didn’t want to but last month he lectured a different type of message but if you’ve executive. Last month, they took Toebben along. repeat the experience so soon. pupil: the mayor and city council members in watched this country, But his wife, who had been on the trip with a dif- The 23-mile hike starts with a 5,000-foot Sao Paolo, Brazil. it’s clearly a message descent along the South Rim and continues with The International Monetary Fund asked Green that isn’t said often a climb up the 8,000-foot North Rim. Since sum- to warn Brazilian officials about the risks of a enough.” mer temperatures at the bottom hit 110 degrees, proposal to create government-backed mortgage Green Green said he was Toebben said the hike started at 4 a.m. so they entities similar to Freddie Mac and Fannie Mae. glad to see Sao Paolo could reach the floor by 9 a.m., when the tem- So Green, 52, who has consulted on interna- for the first time. perature was still in the 80s. tional real estate for the IMF and World Bank “You’d be stunned,” he said. “It’s so vast that The most memorable part? That occurred at since the mid-1990s, flew to Sao Paolo last it makes L.A. seem small.” sunrise, when a pack mule train passed them by on month to address the municipal government. its way to Phantom Ranch at the canyon’s bottom. “The government in a very sincere way wants Staff reporters Howard Fine and Jacquelyn Ryan “It was right out of an old western,” he said. to improve the housing conditions of the people. contributed to this column. Page 3 is compiled “I half expected to see John Wayne ride by.” … One of the issues, however, is that very often by Editor Charles Crumpley. He can be reached at Gastelum, Toebben and the Rattrays As for Janice, he said, “Now that she’s heard (governments) get sold on using complicated [email protected]. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

4 LOS ANGELES BUSINESS JOURNAL UP FRONT JULY 25, 2011

News and notes from communities across REGIONAL REPORT Los Angeles County and gas equipment fabrication, solar products CENTRAL AREA and real estate.

DOWNTOWN LOS ANGELES SHERMAN OAKS

Marketing Move: Drumbeat Digital LLC, Executive Suite: Premier Business Cen- a New York web design and marketing firm, ters, an Irvine-based manager of rented com- has opened Heartbeat West in downtown mercial and office space, has opened an execu- Los Angeles. Heartbeat West is now working tive suite in Sherman Oaks. The new 8,297- out of an office on Wilshire Boulevard but square-foot rentable space is on the 12th floor of plans to move to a bigger office by the end of Valley Executive Tower at 15260 Ventura Blvd. this year.

HOLLYWOOD WESTSIDE

On the Menu: Cabo Cantina, a Mexican beach-styled cantina restaurant, has opened in CENTURY CITY Hollywood at 6669 Hollywood Blvd. It is the Movie Pickup: Verde Media Group ninth location for the West Hollywood-based Inc., a Century City media company, has Cantina chain, owned by Michael Bezerra. El Segundo: Interior of the new Sammy’s Woodfired Pizza & Grill. signed a letter of intent to acquire a catalog of films from Astrablu Media Inc., a Beverly Hills film and TV production company. The EL SEGUNDO Santa Clara semiconductor giant Intel Corp. catalog includes foreign-language Oscar win- SOUTH BAY Intel said Fulcrum’s chips will complement its ner “Babette’s Feast.” Financial terms of the Out of the Oven: Sammy’s Woodfired processors and ethernet controllers as more deal were not disclosed. Pizza & Grill, a San Diego-based restaurant data moves into cloud networks. Financial PALOS VERDES ESTATES chain, has opened its first L.A.-area restaurant terms of the deal were not disclosed. at 780 S. Sepulveda Blvd. in El Segundo. Thrift Saluted: Malaga Bank FSB, a CORRECTIONS Palos Verdes Estates-based bank owned by VAN NUYS The article in the July 18 issue headlined Malaga Financial Corp., has been named the “Hoping Bakery Pans Out” misspelled the top-performing U.S. thrift for the 12-month SAN FERNANDO VALLEY Working Offshore: A subsidiary of Van last name of Yolanda Santosa. period ended March 31 by SNL Financial LC, Nuys’ Trio-Tech International has received a Charlottesville, Va.-based financial informa- a $2.9 million contract to manufacture compo- • • • tion firm. SNL Financial ranked the 100 CALABASAS nents for offshore oil exploration in Southeast The article in the July 18 issue headlined largest publicly traded thrifts according to six Asia. PT SHI Indonesia, based in Batam, will “Building an L.A. Team for Russian performance metrics, including core return on Plugging In: Fulcrum Microsystems Inc., provide for mobile offshore production units Thrill Rides” misspelled the last name of average assets and core return on average a Calabasas maker of semiconductors used in and living quarters. Trio-Tech specializes in Gennady “Gene” Moshkovich. equity. data center networks, is being acquired by semiconductor testing and manufacturing, oil

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JULY 25, 2011 NEWS&ANALYSIS LOS ANGELES BUSINESS JOURNAL 5

Latino-flavored pizzerias that now has about 50 stores in Los Angeles and Orange counties. Alex Meruelo is the older brother of Richard Meruelo, the L.A. real estate developer who lost control of his company, Meruelo Maddux Properties, when it emerged from bankruptcy in late June. Alex Meruelo was not available for this article. The brothers keep their businesses separate.

Opportunistic investments Using La Pizza Loca as its financial base, the Meruelo Group has diversified based on what Gutierrez called an opportunistic investment strategy. The company includes Meruelo Construc- tion, assembled through the acquisition of four firms, which specializes in projects for utility companies; a real estate group that owns 25 retail and mixed-use centers and 15 apartment buildings; and a financial services group that owns an insurance company and a majority stake in Commercial Bank of California. On the consumer side, Meruelo Group owns Pacific Whey Café, a chain of upscale bakeries. and Fuji Foods, the nation’s largest manufacturer and distributor of sushi for super- markets. It also owns 32 La Pizza Loca stores, with the rest franchised operations. In February, the group bought the Grand Sierra Resort & Casino in Reno, Nev. The RINGO H.W. CHIU/LABJ facility has 1,995 hotel rooms and a 100,000- This Just In: Meruelo Group President Xavier Gutierrez at TV station KWHY’s news studio in Burbank. square-foot casino. Gutierrez said the company will use KWHY to advertise and promote its consumer businesses, such as the restaurants and casino, but the primary financial rationale for the acquisition was the opportunity to attract other advertisers. Channel Change KWHY plans to pursue nontypical advertising arrangements such as sponsorships of entire shows, product placement, and remote TV: broadcasts from Meruelo Group companies Meruelo Group adds station KWHY to diverse holdings with and others Latino businesses. In addition, Gutierrez hopes to organize local cultural goal of tapping Latino audience for advertisers. events that will provide video for the station’s shows as well as give advertisers direct access By JOEL RUSSELL Staff Reporter restaurants and the casino, plans are to attract call-in advice shows. He also wants to broad- to a Latino audience. many other Latino advertisers. cast local sports events and concerts with a Jon Currie, a Pacific Palisades TV consul- HEN NBC Universal was forced to Xavier Gutierrez, president and chief Latino connection. tant, said local programming simply can’t com- sell its local Spanish-language TV investment officer at Downey-based Meruelo “We want shows that are local, live and pete against network shows, such as the telen- W station, Alex Meruelo saw a choice Group, said the company plans to position allow the community to see themselves in the ovelas on Univision and Telemundo that cost opportunity – and jumped on it to expand his KWHY as the only independent station for programs,” he said. “We think there’s a hunger millions of dollars to produce. As a result, inde- growing empire. Latinos in Los Angeles. The goal is to empha- for this community to hear its own voice. And pendent stations normally air a mix of old TV Meruelo Group agreed to purchase KWHY size local programming and advertisers to dif- we think there’s a hunger among advertisers, shows, movies, infomercials, and remote (Channel 22) in Burbank for an undisclosed ferentiate it from competing Spanish-language both national and local, who solely want to tar- broadcasts from car dealers and other local sum at the beginning of the year and the sale stations that are connected to networks. get this market.” businesses. He expects financial pressure will closed this month. The channel joined Meru- NBC Universal had to sell KWHY as a Gutierrez said Meruelo Group has plenty of soon force KWHY to adopt such programming. elo’s large and unusually diverse portfolio, condition of its merger with Comcast Corp. experience buying advertising for its other Currie said that even in local programming, which ranges from restaurant chains to banks to While it was under NBC’s ownership, the sta- businesses in the L.A. market and that experi- networks maintain an advantage over indepen- construction firms and even a Nevada casino. tion relied on news and a library of 10,000 ence has prepared the company to manage dents because they have more resources and KWHY is the company’s first media venture. Mexican movies to fill its schedule. Gutierrez KWHY. higher audience ratings. While the station will certainly advertise the said he plans to build on that legacy by devel- The group started in the 1980s when Alex group’s consumer businesses, such as the pizza oping more news magazine, political talk and Meruelo launched La Pizza Loca, a chain of Please see TV page 48 Software Security Company in the Danger Zone?

46 percent from a month ago. CyberDefender also has to deal with stiff INTERNET: Plunging value If the stock price stays lower than $1 for 30 CyberDefender Corp. (Nasdaq: CYDE) competition in both the software and tech-sup- days, Nasdaq could start the delisting procedure. Los Angeles FRI. CLOSE, PAST 5 WKS port sectors. of CyberDefender stock 1.9 Marie Clark, CyberDefender’s director of CEO: Gary Guseinov 1.7 On the software side, companies such as may force delisting. corporate communications, said the company Employees: 379 1.5 Mountain View-based Symantec Corp. and 1.3 was in a quiet period pending an earnings Market Cap: $25.6 million McAfee Inc. in Santa Clara have the upper hand By JAMES RUFUS KOREN Staff Reporter report the first week of August. CyberDefender 1.1 because their software comes preinstalled on many P/E*: N/A July 20: $0.89 0.9 stock has been stuck in a downward trend 0.7 computers, said Kurt Scherf, vice president and From bad to worse. That’s been the trajec- since late 2010, when the company missed the EPS: -$1.38 6/17 6/24 7/1 7/8 7/15 principal analyst for Parks Associates in Dallas. tory of downtown L.A.-based CyberDefender deadline for its third quarter filing. The stock *Twelve months trailing. Source: Yahoo Finance On the tech-support side, Scherf said there’s Corp.’s stock price, which had been steadily plunged at that point, briefly recovered but just as much competition, including Best Buy losing ground since late last year but has then has slid steadily since. other problems have arisen since. Co. Inc.’s Geek Squad and a new service called plunged dramatically in the past few weeks. The blown deadline was the result of the com- In May, three customers filed a class-action Xfinity Signature Support from Comcast Corp. The computer security software company, pany switching auditors and restating earnings lawsuit against the company, alleging CyberDe- “There are so many well-known brands out which added live technical support to its reper- from several quarters. The company had been fender’s software was ineffective, that its mar- there,” Scherf said. “It leads me to wonder if toire about a year ago, was last week’s biggest deferring some expenses, and stopped doing so. keting was misleading and that the company consumers are seeing something from loser on the LABJ Stock Index, having fallen A critical blogger then attacked the compa- had not provided full rebates to dissatisfied cus- CyberDefender, comparing it to one of those to 89 cents July 20. (See page 38.) That’s ny’s previous accounting practices. CyberDe- tomers. CyberDefender and the customers are blue-chip brands and saying, ‘If I’m going to down 20 percent from the previous week, and fender officials dismissed the questions, but waiting for a settlement approval, Clark said. do this, I’m going to go with a brand I know.’” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

6 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS JULY 25, 2011 Visual Effects Company Puts Focus on Costs, IPO ENTERTAINMENT: Reliance MediaWorks, the film and entertain- less,” she said. “Having artists busy at work ument on the IPO. Indian ment division of Mumbai, India, media con- abroad … helps them to be able to compete for The Port St. Luce, Fla., company will use partner may help Digital glomerate Reliance-ADA Group, to operate more work here in the United States.” the proceeds from the offering, underwritten postproduction studios in London and Mumbai. Digital Domain Productions and Reliance by London’s Barclays Capital, to advance its Domain stay competitive. The partnership marks Digital Domain’s MediaWorks will use the studios to provide visual effects and animation projects, pay off first foray into India, where competitors, visual effects and 3-D stereo production ser- outstanding debt, and fund working capital and By NATALIE JARVEY Staff Reporter including Paris postproduction house Techni- vices for films, TV shows and commercials. general corporate expenses. color and El Segundo visual effects company Reliance will own the facilities and Digital The filing also mentions the company’s When Digital Domain Media Group Inc. Rhythm & Hues, have already set up shop. Domain will manage them. strategy for increasing its participation in pro- announced its second attempt at an initial pub- Demand for visual effects remains strong as duction of feature films, creating original ani- lic offering earlier this year, the company studios rely on big spectacle films to draw Going public mated movies and expanding 3-D services. noted it wants to provide visual effects and audiences, but the competition to provide ser- Digital Domain Media announced May 16 its A Digital Domain Productions spokesman 3-D technology to its Hollywood customers at vices has become heated. New studios using plans to raise as much as $115 million in an IPO. declined to comment, citing a quiet period sur- competitive prices. cheaper technology and foreign studios with “We believe foreign competitors and com- rounding the IPO. It wasn’t an empty promise. The company lower labor rates have put cost pressure on petitors with operations or subcontractors in This is Digital Domain Media’s second recently announced it’s expanding to India to use L.A. visual effects houses, said Randi Altman, countries such as South Korea, China and attempt at a public offering. That’s likely to the same cheap labor that many competitors do. editor of Post Magazine in New York. India may become an increasing source of hurt investor interest in the stock, said David Digital Domain Productions, the Venice “This has sort of forced the remaining larg- competition, due largely to their access to low- Menlow, president of IPOfinancial.com in visual effects arm of Digital Domain Media er (visual effects) studios to open up branches cost, high-skilled labor,” the company stated in Millburn, N.J. Group, announced July 11 a partnership with in countries where the cost of doing business is the Securities and Exchange Commission doc- “It’s always an albatross around a company’s neck if they had a filing previously that never happened,” he said.

Special Effect: Image from ‘Titanic.’ The company, founded in 1993, was purchased in 2006 by a group of investors that included director Michael Bay and former pro football star Dan Marino. The next year, the Ukqn pna]oqnu i]j]caiajp group filed to raise up to $100 million in a public offering. odkqh`gjksjk^kn`ano* But the recession and weak investor interest forced the company to drop the IPO in 2008. The company has since changed its name to Digital Domain Media. Digital Domain Productions in Venice, which has provided effects for films such as “Titanic” and the “Transformers” franchise, remains the digital production arm of its parent company. Digital Domain Media also owns Playa Vista creative studio Mothership, as well as animation company Tradition Studios and 3- D conversion company In-Three, both now in Port St. Luce. Of the company’s 814 full- and part-time employees, 507 work out the Venice and Playa Vista offices. The Digital Domain Vancouver studio has 137 employees. Investors could be excited about an entertainment company’s IPO, but wary about Digi- tal Domain Media because of its history of bleeding cash, Menlow said. For the five years reported in the SEC filing, the company was profitable only in 2009, ® When you partner with Union Bank, you’ll have convenient global treasury management services in over 30 countries. with net income of $7.96 million. It lost $42.5 You’ll also have access to a bank that brings a wide range of solutions to your domestic and international operations. million in 2010, citing expenses to grow the Our newest Global Treasury Service solution will simplify everything from opening overseas accounts to setting up a business and debt-related charges. single online payment platform. So there’s no limit to how far your business can go. Revenue in 2010 was $102 million, up 70 percent from $15.6 million in 2009 due to an With Union Bank, the world can be an easy place to do business. Call us today. increased pipeline of films using visual effects and conversions to 3-D. Commercial Banking: Commercial Treasury Services: Business Banking: The company’s digital production unit, which Scott Connella Diane Williams, CTP William Schleifer includes Digital Domain Productions, generated Executive Vice President Senior Vice President Vice President the majority of the company’s revenue last year, 213-236-4275 213-236-5085 213-236-6861 with feature films bringing in $82.7 million and commercials bringing in $19.2 million. Despite its failed first attempt and the company’s balance sheet, Menlow acknowledged Digital Domain Media’s new IPO might fare better, noting a larger private equity firm is underwriting the offering. He also said the company might look better to ©2011 Union Bank, N.A. investors now that effects films dominate the Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG), box office. one of the world’s largest financial organizations. unionbank.com “It seems as though there is less explanation required of this company now than what would have been the case four years ago,” he said. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 NEWS & ANALYSIS LOS ANGELES BUSINESS JOURNAL 7 Regulators’ Latest Lawsuit May Break Execs’ Way LEGAL: officers and directors of WesCorp, a corporate tration of risky securities. be held liable for losses resulting from deci- Analyst sees new credit union that served more than 1,000 retail “The allegations of the (recent lawsuits) are sions made in good faith and with reasonable filing possibly undercutting credit unions. The institution provid- not a shield protecting the prudence. A final ruling is expected as early ed services including check-clearing defendants from further scrutiny as this week. suit against WesCorp execs. and investing its members’ cash. of their own culpability for the The claims against the former officers According to a report from the failure of WesCorp,” wrote could still proceed to trial, for which a date By RICHARD CLOUGH Staff Reporter NCUA Inspector General’s Office, Bierman, who could not be has not been set. However, defense attorneys WesCorp’s leaders invested heavi- reached for follow-up. have asked Wu to dismiss the remaining Federal regulators last week filed their third ly in securities backed by Alt-A Still, the defense was charges due to the alleged conflict with the lawsuit against a major investment bank they and pay-option mortgages, particu- recently handed a major victo- new lawsuits. believe contributed to the failure of Western larly those issued by disgraced Cal- ry in the case. U.S. District If the charges are not thrown out, attorneys Corporate Federal Credit Union by selling it abasas lender Countrywide Finan- Court Judge George Wu, who said they would likely use the NCUA’s recent toxic mortgage-backed securities. cial Corp. is handling the case against suits in the officers’ defense at any trial, as But the aggressive action by the National In a recent court filing, Michael WesCorp’s leaders, recently Medrano suggested. Credit Union Administration may have the Bierman, an attorney at San Diego- issued a tentative ruling dis- “There certainly is a tension between the … unintended consequence of undermining its based Luce Forward Hamilton & Medrano missing charges against the lawsuits,” said Richard Drooyan, an attorney own landmark lawsuit to hold the former offi- Scripps LLP who is representing former directors – 10 of the 14 for downtown L.A.-based Munger Tolles & cers and directors of the San Dimas institution the NCUA, said that even if the credit defendants – saying that they are covered Olson LLP who is representing former responsible for its failure. union’s leaders were misled, they were still under California’s business judgment rule. WesCorp Chief Executive Robert Siravo. “It WesCorp, as it was known, was closed in responsible for building an excessive concen- The rule holds that company leaders will not could be helpful to us.” March 2009 after becoming insolvent when the risky mortgage-backed securities resulted in nearly $7 billion in losses. Late last year, the NCUA took the lead on a lawsuit against WesCorp’s former leaders, accusing them of fraud, negligence and breach of fiduciary duties for taking unnecessary risks with the investment portfolio. Regulators are seeking more than $1 billion from them personally, a staggering sum that surprised the collegial industry. But the officers and directors are now fighting back, saying the NCUA’s lawsuits against the investment bank contradict its earlier claims about who was responsible for the credit union’s failure. “(The NCUA is) trying to blame everybody and they’re doing it in a way that is fun- Relationships are built on many things... damentally inconsistent,” said Kenneth Fitzgerald, an attorney with San Diego’s Chapin Fitzgerald Sullivan & Bottini LLP who is representing former WesCorp officer Like making you feel Todd Lane. “To us, it further demonstrates that our clients weren’t grossly negligent.” The NCUA, a regulatory body that over- valued as a client. sees the nation’s credit unions, filed a lawsuit in U.S. District Court in Los Angeles last week accusing Stamford, Conn., investment bank Crowe Horwath LLP takes pride in the relationships RBS Securities Inc. of misrepresenting the riskiness of the mortgage-backed securities we have with our clients. In a recent client survey, our sold to WesCorp and other corporate credit clients said we do a better job than our competitors unions. The NCUA is seeking $629 million in dam- of making them feel valued as a client. ages from RBS, and more than $800 million in two similar lawsuits filed last month against RBS and New York-based JP Morgan Secu- To learn more about our commitment to building rities LLC. The NCUA said that it plans to lasting relationships, visit crowehorwath.com/clients, bring as many as 10 separate lawsuits against those it considers responsible for WesCorp- or contact Tom Dulek at 818.325.8605 or related losses. [email protected]. “It is our responsibility to seek damages in this manner,” said NCUA spokesman David Small, who added that the lawsuits are sufficiently different and not contradictory.

‘Chinks in the armor’ But the officers and directors defense attorneys aren’t the only ones who believe the Tom Dulek, partner NCUA may be providing ammunition for Los Angeles WesCorp’s former officers and directors, who say they should not be held responsible for the securities’ poor performance. Manny Medrano, a trial lawyer in Los Angeles and former prosecutor with the U.S. Attorney’s Office who is not involved in the case, said the NCUA was probably correct to file as many lawsuits as it has because there is a greater chance of recovering some of the losses. But, he emphasized, even if the lawsuits are not technically in conflict, the appearance of inconsistency could hurt the NCUA’s prospects with jurors, who often do not have high levels of sophistication on complex financial issues. Audit | Tax | Advisory | Risk | Performance The Unique Alternative to the Big Four® “It definitely can come back to haunt you,” Medrano said. “The defendants who are being Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. sued are going to look for any chinks in the Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and armor.” Nortb1h Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2011 Crowe Horwath LLP FW12125B1 The NCUA, however, said the lawsuits do not negate its allegations against the former 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

8 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS JULY 25, 2011 Local Clothing Company to Take Credit Overseas money plus the company’s rich balance sheet enterprise? poses some challenges, according to Howard APPAREL: Guess to use and operating cash flow bring it access to Eric Beder, director of equity research at Davidowitz, chairman at national retail con- borrowed bucks to open potential capital of $1 billion or more. The New York investment banking firm Brean sulting and investment banking firm David- money will be spent on international growth, Murray Carret & Co., said Guess can charge owitz & Associates Inc. in New York. shops across the world. according to a recent statement by Guess higher prices for its merchandise in interna- “The further out you get, the more moving Chairman Maurice Marciano. tional markets. pieces there are, the more people you are coor- By ALEXA HYLAND Staff Reporter The company, which has 1,421 stores in the “There are materially better returns in dinating with on product development and pro- United States and foreign countries, didn’t intentional markets and growth potential,” duction,” Davidowitz said. “And the more Guess Inc. recently boosted its borrowing make any of its executives available for com- Beder said. “And international consumers love moving pieces, the more risks.” power. So guess what the L.A. apparel maker ment for this article. U.S. brands and love being associated with is going to do with those big bucks? Go on a For several years, Guess has been on a mis- them. That helps drive business.” Chinese accent worldwide spending spree. sion to bring its skin-tight jeans, slinky dresses In fact, Guess’ international operations have Guess was founded in 1981 by brothers Guess is planning to spend $140 million by and fashion-forward tops to every corner of the become a significant portion of its business. Georges, Armand, Paul and Maurice Mar- the end of its 2012 fiscal year as it maps an Earth – there are Guess stores on each conti- In the past decade, the number of Guess ciano, who emigrated from France in the late expansion plan that’ll add more than 800 stores nent except Antarctica. stores in Europe, Asia and other countries has 1970s. Georges Marciano, who had a falling across the globe in the next five years. Guess is planning to open 216 stores in gone from 222 to 892. International revenue out with his brothers, is no longer involved. The company announced earlier this month Canada and the United States, 392 in Europe has followed, increasing 131 percent from The company made its name with designer that it raised its credit line from $85 million to and the Middle East, and 282 in Asia in the about $52 million for fiscal 2002 to $1.1 bil- jeans sold at high-end department stores such $200 million, with an option to borrow an next five years. lion for fiscal 2011. as Bloomingdale’s. Guess then began to broad- additional $100 million. The new available What’s driving Guess’ quest to be a global The ambitious international expansion en its reach, opening its own stores, and making women’s, men’s and children’s clothes. It also developed a lucrative licensing program, putting the Guess name on sunglasses, purses and even home bedding. But Guess’ biggest bet is now on its international operations. The company is building a corporate infrastructure in Asia to support significant opera- Business Platinum Credit Card tions there, establishing a headquarters, distribution centers and new stores. John Kernan, a research analyst at New York financial services firm Cowen & Co. LLC, estimates that Guess will invest more than $100 million in its Chinese infrastructure introductory in the next two years. In Asia, the company is first focusing on rate opening stores in South Korea and China. Guess Chief Executive Paul Marciano has called the Chinese expansion the most important strategic 0% initiative in the company’s history.

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JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 9

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10 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS JULY 25, 2011 Car Tracking System Drives Staying Subscribe today. As part of your subscription, you will also receive access to New Deal for Patent Owner still isn’t the daily electronic Los Angeles Business Journal, unlimited on-line TECHNOLOGY: Oxnard’s CalAmp Corp. (Nasdaq: CAMP) an option access to our archives, Oxnard FRI. CLOSE, PAST 5 WKS and the Book of Lists published CalAmp paid $3 million by 4.0 CEO: Michael Burdiek July 20: $3.73 at the end of the year. 3.9 Tennessee repo business. Employees: 380 3.7 Market Cap: $96.6 million 3.5 By HEEJIN PARK Staff Reporter P/E*: N/A 3.3 Call toll-free 3.1 CalAmp Corp.’s recent $3 million sale of EPS: -$0.01 6/17 6/24 7/1 7/8 7/15 1.800.404.5225 patents for systems used by repo men to find *Twelve months trailing. Source: Yahoo Finance cars may be more exciting than it looks. The Oxnard company, which specializes in growth in CalAmp’s wireless data technology wireless communication hardware and software, business, which it sells to utilities, government sold technology that helps finance companies agencies and corporate customers. The data find cars that were bought with riskier loans and technology division is one of the company’s need to be repossessed. The buyer was Procon- two business segments. The other is its satellite GPS Inc., a Knoxville, Tenn., company that division, which provides technology and equip- tracks and recovers vehicles for dealers and ment for North American broadcasters. lenders. ProconGPS is the world’s largest vehi- Thanks to higher demand in a section of its REAL ESTATE cle tracking company for subprime car loans. wireless data business called Mobile Resource “It’s nice monetization of intellectual prop- Management, which includes the car recovery PUBLIC AUCTION* erty,” said Mike Crawford, an analyst at B. technology, the company’s wireless data rev- Riley & Co. in West Los Angeles. “The com- enue increased 39 percent in the first quarter of pany could have more potential hidden value in fiscal 2012 from the prior year. the pipeline given its continued focus on devel- CalAmp’s wireless technology growth has FOR SALE oping and protecting its intellectual property.” been fueled by demand for products and ser- Plus, CalAmp retains rights to use the tech- vices from companies specializing in fleet nology itself, which connects GPS, cellular management, vehicle finance, asset tracking Approximately 107,834 Square Feet networks and information systems that monitor and stolen vehicle recovery. M-Zoned Property* loans and the cars that were financed. The technology also may find wider use. The money from the sale will boost the CalAmp is testing technology that can be used at 1810 East 25th Street, Vernon, CA company’s revenue. by auto insurers to monitor customers’ driving “Substantially all those proceeds will be habits. By using data from CalAmp equipment By: Alameda Corridor Transportation Authority reflected on the bottom line,” said Rick Vitelle, installed in cars, insurers can manage risk and chief financial officer of CalAmp. lower rates for good drivers. The sale was CalAmp’s third patent transac- “The wireless technology adoption trends Public Auction at 2:00 p.m., on tion in the past few years. The previous sales are extraordinarily favorable to CalAmp,” brought in $1.5 million and $500,000. Vitelle said Michael Burdiek, the company’s chief execu- August 18, 2011 that the company is open to selling more patents tive officer, said in a conference call when One Civic Plaza, Suite 350 while retaining rights to use the technology. earnings were announced last month. “The Carson, CA 90745 The latest patent sale comes amid significant prospects for the company are very bright.”

For information and to register to bid at the public auction, visit ACTA’s website at: Ticketmaster Looks to D.C. www.acta.org or call Charles Fornelli at (310) 816-0460 To Restrict Rival’s Resales The property is comprised of: TICKETING: StubHub Paperless tickets are only a small segment of Parcel A = approximately 68,231 Square Feet* the market; Ticketmaster has used the process for Parcel B = approximately 39,603 Square Feet* has lobbied to tear up limits high-demand concert acts, such as Miley Cyrus and Justin Bieber. Concertgoers enter the stadium on ‘paperless’ tickets. without tickets, showing only their credit cards and IDs. Buyers can only exchange paperless By JONATHAN POLAKOFF Staff Reporter tickets through Ticketmaster’s proprietary service, TicketExchange. StubHub claims that Tick- When StubHub started up in San Francis- etmaster’s goal is to eliminate competition. co a decade ago, it posed a challenge to L.A.- “Paperless ticketing was created to destroy based Ticketmaster’s domination of the sports the secondary market,” said StubHub and concert ticket market. The challenge then spokesman Glen Lehrman. turned into a brawl, and the brawl has turned Lehrman said StubHub doesn’t oppose the into a high-profile war of words – and politics. idea of paperless tickets, but wants them to be Live Nation Entertainment Inc., the Beverly transferable. Hills company that bought Ticketmaster last year, StubHub, which charges commissions on gave money to launch a Washington, D.C., interest resales, said people bought and sold $1 billion group with the goal of preserving the right to limit worth of tickets last year at its site. resales of its “paperless” tickets. The launch of the The company, owned by San Jose-based group came in response to StubHub’s lobbying eBay, has also had lobbying success. Last year, group, which is trying to convince state and federal New York passed a StubHub-supported law legislators to outlaw Ticketmaster’s restrictions. preventing ticket companies from going exclu- Earlier this year, the StubHub-funded group, sively paperless. There is also a federal law Fan Freedom Project, lobbied four state legisla- pending a vote in Congress, called the Ticket tures to ban the resale restriction. StubHub Act, that would ban resale restrictions on tickets. makes money from fees it collects on tickets Ticketmaster is testing a new sales model this that people sell in its virtual marketplace. summer, called dynamic pricing, that lowers Ticketmaster convinced legislators to block prices when sales slow and raises them for popu- the StubHub proposals in all four states. It lar events. At least one analyst said it’s likely an * ACTA will be accepting bids for the sale of the parcels, separately or combined, on an “AS IS” condi- formed the Fans First Coalition last week to attempt to cut in to StubHub’s business. tion and basis with all faults pursuant to the Terms and Conditions of the Auction and the sale of the combat future Fan Freedom initiatives. “A major aspect of their efficient pricing is Property will be subject to the terms of a Purchase and Sale Agreement and Joint Escrow Instructions, “Some in the industry have used legislation to negate the impact of the secondary market,” each of which may be obtained by contacting ACTA. ACTA makes no representations, warranties, as a weapon,” said Jacqueline Peterson, a said Douglas Arthur, an analyst at Evercore promises, covenants, agreements or guaranties of any kind or character whatsoever with respect to the spokeswoman for Ticketmaster. “If there’s an Partners in New York. “If they were smarter Property including, without limitation, the zoning and size of the Parcels. education process that needs to happen, we’re about how they priced each seat, there’d be willing to be a resource.” less need for the secondary market.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 11

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12 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS JULY 25, 2011

MEDIAWATCH

MOVIE BOX OFFICE Weekend Gross Total Gross Rank Title (millions) (millions) Distributor 1 Harry Potter $169.2 $169.2 Warner Bros. 2 Transformers 21.3 302.9 Paramount 3 Horrible Bosses 17.8 60.1 Warner Bros. 4 Zookeeper 12.3 42.4 Columbia 5 Cars 2 8.4 165.4 Disney 6 Winnie the Pooh 7.9 7.9 Disney 7 Bad Teacher 5.2 88.5 Columbia 8 Larry Crowne 2.7 31.7 Universal 9 Super 8 2.0 122.3 Paramount 10 Midnight in Paris 1.9 41.8 Sony Weekend ended July 17 Source: Bloomberg News PRIMETIME TV SHOWS Rank Program Network Rating* 1 America's Got Talent (Tues.) NBC 7.9 2 MLB All-Star Game Fox 6.9 3 America's Got Talent (Wed.) NBC 6.8 4 NCIS CBS 5.8 5 60 Minutes CBS 5.6 Week ended July 17 *Each rating point equals 1.1 million homes. Source: Bloomberg News CABLE TV SHOWS Rank Program Network Rating* 1 Women's World Cup Soccer ESPN 7.4 2 The Closer TNT 4.6 3 Pawn Stars History 4.4 4 (tie) Rizzoli & Isles TNT 4.0 4 (tie) Home Run Derby ESPN 4.0 Week ended July 17 *Each rating point equals 1.1 million homes. Source: Bloomberg News TOP SELLING ALBUMS Rank Last Week Artist Title Label 1 1 Beyonce 4 Columbia 2 2 Adele 21 XL Recordings/ Columbia 3 4 Selena Gomez When the Sun Goes Down Hollywood Records & the Scene 4 6 Jason Aldean My Kind of Party Broken Bow Records 5 9 Bad Meets Evil Hell: The Sequel (EP) Interscope Records Week ended July 22 Source: Billboard.com MOVIE RENTALS - DVD/VHS Rank Last Week Title Distributor 1 1 Season of the Witch Relativity 2 2 Adjustment Bureau Universal Staying 3 3 Unknown Warner Bros. 4 4 Sucker Punch Warner Bros. 5 5 Beastly CBS Films Week ended July 10 Source: Rentrak still isn’t DVD SALES Rank Last Week Title Distributor Suggested Retail 1 1 Sucker Punch Warner Bros. $28.98 an option 2 2 Season of the Witch Relativity $29.99 3 5 Unknown Warner Bros. $28.98 4 3 Beastly CBS Films $28.95 5 8 Adjustment Bureau Universal $29.98 Week ended July 10 Source: Rentrak MOVIELINK DOWNLOADS Rank Title Distributor Suggested Retail 1 Lincoln Lawyer Lions Gate $15.95 2 Rango Paramount $15.95 If you aren’t getting ahead, you are falling behind. 3 Arthur Warner Bros. $15.95 4 Source Code Summit $15.95 The Los Angeles Business Journal will keep you ahead of your competition – 5 Insidious FilmDistrict $12.99 It is a publication filled with insight and information that you need to read, Week ended July 20 Source: Cinemanow.com but more important,one that you will want to read. OUTTAKE OF THE WEEK Subscribe today. VIEWER As part of your subscription,you will also receive access to the daily CHEMISTRY electronic Los Angeles Business Journal, unlimited on-line access to our AMC’s dark comedy archives, and the Book of Lists published at the end of the year. “Breaking Bad” kicked off its fourth season July 17 with series-high ratings. Call toll-free 1.800.404.5225 The show, starring Bryan Cranston, left, follows a high school chemistry teacher who turns to making meth to raise money for his family. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 13

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14 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS JULY 25, 2011 Venture Capital Fails to Come Out in Second Quarter INVESTMENT: Lack of panies now looking to go public is visual effects company Digital Domain Media BANKING & IPOs could be holding back Group Inc. “There’s a lot of IPO activity going on right FINANCE money for startups. now,” Grabow said. “That’s going to drive a lot of investor confidence and it’s going to help RICHARD ENTURE capital investment in Los the bigger ecosystem.” CLOUGH Angeles was sluggish in the past quar- V ter, according to a pair of reports Scaling Back released last week, but experts say there is rea- Nara Bancorp Inc., which had planned son to be hopeful that the sector can make a to raise as much as $150 million in new capi- which already holds a stake in American- comeback. tal, said last week that it may raise substan- West Bank, has partnered with Boston-based There were 33 venture investments made in tially less. private-equity firm Thomas H. Lee Part- L.A.-area companies in the second quarter, up The Koreatown bank holding company ners LP and institutional investors to provide from 32 in the first quarter and 32 in the sec- had planned a stock offering in connection $525 million in new capital to First Ban- ond quarter of last year, according to data from with a pending merger with local competitor Corp, a bank holding company in San Juan, Dow Jones VentureSource. However, the Center Financial Corp. that is expected to Puerto Rico. It had previously been amount invested, $206 million, was off by 19 close later this year. Executives said the new announced that Oaktree would purchase percent from the previous quarter and 38 per- capital could be used for a variety of purposes $176 million of the bank’s stock for a 24.9 cent from a year ago. including padding loan loss reserves and retir- percent stake. A separate report issued by Pricewater- ing warrants under the Troubled Asset Relief FirstBank Puerto Rico, the operating sub- houseCoopers LLP and the National Venture Program. sidiary of First BanCorp, has been struggling Capital Association found 37 local investments However, in a regulatory filing last week, with heavy losses in its commercial real estate for $223 million. Nara said, “Depending on market conditions, and business loan portfolios. The bank has $15 Los Angeles ran counter to national trends. Nara and Center may decide to seek in the cap- billion in assets and 160 branches. There were 776 deals nationwide totaling $8 ital offering only the amount of capital billion, both up from the first quarter, accord- required for approval of the merger.” C-Suite News ing to the Dow Jones data. Raising capital has been tough for Korean- Western Bridge Corporate Federal Credit Still, Jeff Grabow, the western region ven- American banks lately. On June 30, Kore- Union, a temporary San Dimas institution that ture capital leader for Ernst & Young, noted atown’s Hanmi Financial Corp. canceled a replaced failed corporate credit union that the L.A. market had some bright spots, planned offering, saying the board was unsatis- WesCorp, announced that Philip Perkins will including rising interest in consumer services fied with the pricing. serve as chief executive if a permanent startups, such as online retailers and new- Well-Heeled: ShoeDazzle’s Kardashian. Joseph Gladue, an analyst with West L.A. replacement institution is approved by member media companies. investment bank B. Riley & Co., noted that credit unions. The new institution will be The quarter’s largest investment came in during the quarter, a sharp increase from the the circumstances of the offerings were differ- named United Resources Federal Credit the sector after Santa Monica’s previous quarter and previous year. ent, but “the market hasn’t been particularly Union. … Century City investment bank ShoeDazzle.com, an online shoe retailer co- Grabow said a pickup in public stock offer- favorable for banks lately.” Imperial Capital LLC has named Todd founded by celebrity Kim Kardashian, ings could drive a recovery in the venture mar- Fasanella managing director. received $40 million in May from Menlo Park ket. Initial public offerings are the most com- Bank Stake venture firm Andreessen Horowitz. mon exit strategy for venture capital investors, Oaktree Capital Management LP cer- Staff reporter Richard Clough can be reached In total, venture capital firms invested $116 and freeing up that capital will allow investors tainly has its eye on the banking industry. at [email protected] or at (323) million in L.A. consumer services companies to fund new startups, he said. Among the com- The downtown L.A. investment firm, 549-5225, ext. 251.

Century City Firm Welcomes Chinese Connection

which Butler also chairs, will help Chinese from 10 attorneys to 20 in the last two years, EXPANSION: New group clients identify hotel and real estate invest- LAW and is planning on opening a San Francisco at Jeffer Mangels to advise ments in the United States, finance the deals office by the end of the year. and more. The group also will represent ALFRED LEE “The economic conditions have created on local investment deals. stateside developers and owners looking for more (litigation) issues for our clients,” said foreign investment. name partner Tom Lombardi. T’S no secret that Chinese investment in The deals won’t just be in hotels. The team Lombardi and name partner Scott Palmer U.S. commercial real estate is taking off. is working to finalize Chinese investments in a co-founded the firm in 2002 in Glendale, but I With its creation of a Chinese investment solar farm and several restaurants, Butler said. soon moved to downtown Los Angeles for group earlier this month, Century City firm “We want to be a gateway for Chinese what they called “street credibility.” They Jeffer Mangels Butler & Mitchell LLP is investment,” he said. more seriously considering joining a larger moved to 888 W. Sixth St. in 2005. looking to get in the pilot’s seat. firm. She also wanted to be sure all six attor- When the firm’s lease ran out, they never In the last year, Joining Up neys and all of her staff would be able to considered leaving downtown. The rates have the firm’s hospitali- Those who have dealt with Lisa Quate- make the jump to a new firm with her – some stayed competitive, ty practice group man know that the pride she takes in building previous offers hadn’t guaranteed it. Further- Lombardi said, and has had a hand in and running a woman-owned boutique law more, joining the 540-attorney Polsinelli he’s found it easy to several hotel deals firm is nearly palpable. In the 22 years after would give her firm, driven by work in the recruit attorneys. involving Chinese she founded Quateman LLP, she turned financial services industry, access to “It sort of syncs buyers. The firm down plenty of offers to join up with larger resources it didn’t have and a shot at larger up with the image helped put together firms. clients. we want to convey the estimated $90 But earlier this month, her Century City “Sometimes when you’re a small woman- in terms of repre- million sale of the firm joined fast- owned firm, in certain situations you may get senting financial Sheraton Universal growing Kansas pigeonholed into smaller matters and smaller institutions, doing hotel to Shenzhen City, Mo., firm pieces of transactions,” she said. “With all the business litigation, New World Group Polsinelli Shughart experience I have I thought it’d be fun to be corporate litigation,” Butler Co. in January and PC. The old firm in a large firm and work on bigger pieces of Lombardi he said. assisted Chinese will be the core of the deals.” The new space is investors who put $20 million into the W Polsinelli’s new subleased from a much larger downtown firm, Hotel and Residences Hollywood this year. L.A. office, with Still Downtown Paul Hastings Janofsky and Walker LLP. The firm also represented Taiwan’s Formosa Quateman as the Just last month came news that Nossaman The space was originally supposed to be used International Hotels Corp. in its acquisition office’s managing LLP’s downtown L.A. office had moved a for back-office work, and Palmer Lombardi of Regent International Hotels in June of partner. mere four blocks down the street to make room paid for several hundred thousand dollars of last year. “The fit and the for expansion. Now, 20-attorney firm Palmer improvements. “It’s really spiked,” said name partner Jim Quateman timing was right this Lombardi and Donohue LLP has moved “But we still got a good deal,” Lombardi Butler, head of the hospitality practice group. time,” she said. around the corner to 515 S. Flower St. from said. “Clearly hotels are one of the preferred There were several reasons the move hap- West Sixth Street. investment areas the investors tend to be pened. With the lease in her office expiring The firm, which primarily handles securi- Staff reporter Alfred Lee can be reached at comfortable with.” early next year, Quateman began thinking ties, financial services and real estate litigation, [email protected] or at (323) 549- The new Chinese investment group, more pressingly about the firm’s future and also needed space to expand. It has grown 5225, ext. 221. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

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16 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS JULY 25, 2011

Last week’s major news from labusinessjournal.com NEWS OF THE WEEK and other sources

MIDYEAR FORECAST: chief financial officer and SALE COMPLETED: ter net income of $47.5 mil- Olberz Los Angeles County will see treasurer. He had been serving Affiliates of billionaire Len lion, 15 percent higher than a modest job growth for the as interim CFO since March. Blavatnik’s Access Indus- year ago. Net interest income rest of this year and into next tries Inc. completed acqui- rose 5 percent to $195 mil- year, but it will not be TECH ACQUISITION: sition of Warner Music lion; noninterest income fell enough to make a significant Ixia completed its acquisition Group Corp. in an all-cash 2 percent to $91.9 million. dent in the county’s jobless of VeriWave Inc., an Oregon deal valued at $3.3 billion. … Mattel Inc. reported sec- rate, according to economists maker of testing devices for Shareholders received $8.25 ond quarter net income of at the Los Angeles County Wi-Fi networks and smart per share in cash for the $80.5 million, 56 percent SUIT SETTLED: Amgen Economic Development phones. Terms of the deal higher than a year ago. Rev- Inc. won a judgment and per- Corp. The forecast predicts were not announced. The pur- enue rose 14 percent to manent injunction that has that 28,000 payroll jobs will chase enables the Calabasas $1.16 billion. … Jakks delayed the plans of an Israeli be added in 2011 for a mea- German native, Olberz came provider of Internet and wire- Pacific Inc. reported second generic drug maker to sell an ger growth rate of 0.7 per- to the United States in 1955, less network test products to quarter net income of $4.2 infection-fighting treatment cent. This follows three con- learned to ski on Oregon’s offer a broader line of ser- million, 40 percent higher that competes with two of the secutive years of job losses, Mount Hood and sank vices to network equipment than a year ago. Net sales Thousand Oaks biotech’s including 60,000 in 2010. $10,000 – his entire life sav- manufacturers, service rose 7 percent to nearly $132 biggest money-makers. A Job growth is expected to ings – into opening a ski shop providers, businesses and million. … East West Ban- U.S. District Court judge in pick up slightly in 2012, with in La Canada. That became government agencies, Ixia recorded music library and corp Inc. reported second Pennsylvania ruled that Teva 65,000 workers being added the foundation of what has said. Privately held VeriWave music publishing businesses quarter net income of $58.8 Pharmaceutical Industries to payrolls for a growth rate grown to a chain of 55 stores of Beaverton makes products of New York-based Warner, million, 95 percent higher Ltd., based in suburban Tel of 1.7 percent. in four states. that test Wi-Fi networks and considered the world’s third than a year ago. Net interest Aviv, cannot sell its Neu- mobile smart devices by mea- largest recording company. income before provision for troval product for more than OBITUARY: Norbert DEAL REACHED: Tetra suring speed, quality and Warner Music will continue loan losses rose nearly 12 two years. The court found Olberz, the founder of the Tech Inc. has agreed to pur- other performance metrics. to have operations in Bur- percent to $227 million, and that the drug infringed on Sport Chalet retail chain, chase most of the assets of bank and Santa Monica. noninterest income fell 65 Amgen patents for Neopogen died July 15 in La Canada Proteus EPCM Engineers, COMPETITOR BOUGHT: percent to $12.5 million. … and Neulasta, which boost the Flintridge. He was 86. Olberz an Australian engineering National Technical Systems 3-D EXPANSION: RealD Cathay General Bancorp growth of white blood cells to founded Sport Chalet in 1959 company that specializes in Inc. in Calabasas has Inc. reached an agreement reported second quarter net fight infections and generated and served as chief executive mining, for an undisclosed acquired Ingenium Testing, with Cinemark Holdings Inc. income of $20.2 million $3.6 billion in U.S. sales last of the La Canada Flintridge amount. Proteus is based in a product compliance and to install an additional 1,500 compared with a loss of $2.2 year, about one-quarter of company until 1999. He Perth and focuses on projects engineering company, in a 3-D-enabled screens in the million a year ago. Net inter- Amgen’s total revenue. retired as chairman in 2001. A involved in iron ore, precious deal valued at more than chain’s theaters across North est income before provision and base metals, and alu- $12.5 million. NTS said that America and Latin America. for credit losses rose 5 per- minum extraction. Tetra acquiring Ingenium in Rock- The Beverly Hills movie tech- cent to $78.3 million; nonin- labusinessjournal.com Tech, based in Pasadena, said ford, Ill., was a key step in its nology company said that the terest income rose 69 percent The best source for up to the minute local, national and the transaction is expected to plan to diversify and gives it agreement will eventually to $12.5 million. … Cheese- worldwide business news. close early next month. The a stronger presence in the result in RealD’s technology cake Factory Inc. reported FREE MORNING UPDATE deal will help the company Midwest. The deal was fund- being installed in half of Cine- net income of more than enter new markets across Asia ed from a $14 million private mark’s auditoriums. $24.7 million, 29 percent Prepared by the editors of the Los Angeles Business Journal and sent to you by e-mail every business day. Sign up now at and Africa. In a separate placement of debt and equity higher than a year ago. Rev- www.labusinessjournal.com announcement, Tetra Tech with Mill Road Capital that EARNINGS: City National enue rose 2.8 percent to less has named Steve Burdick closed last month. Corp. reported second quar- than $431 million.

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Hirings, promotions and special People on the Move accomplishments in local business

ACCOUNTING ACCOUNTING REAL ESTATE Renee Ordeneaux, CPA has Michael Ozen, CPA has joined RBZ, Congratulations to Henry Garcia, been named Partner In-Charge, LLP as a Principal and will be in- commercial real estate broker for Assurance Services, for RBZ, LLP. charge of the firm’s International Tax KW Commercial, for successfully Renee has been with RBZ for over Services Group. Michael has over representing the buyer and seller for 10 years and succeeds Tom Schulte 25 years of experience in serving 1042 Sanborn Avenue in Silverlake. in this role. She provides audit and companies and individuals needing The 24 unit apartment was sold for consulting services to nonprofit international tax planning and $2.6 million. Henry also represented organizations, middle-market compliance services. He advises the buyer and seller for 1256 companies and public companies U.S.-based and foreign clients Tamarind in Hollywood which sold Ordeneaux needing Sarbanes-Oxley support. Ozen who wish to conduct business Garcia for $1.95 million. across borders and provides solutions for complex international tax issues.

MARKETING COMMUNICATIONS GOVERNMENT Downtown Santa Monica, Inc. (DTSM) Automotive veteran Keith Ellis LAW recently joined The Phelps Group today announced that Andrew (www.thephelpsgroup.com) as Business litigator Ethan J. Brown Thomas will be leaving his position VP, Team Leader. With more than joins Spillane Weingarten LLP August as its Director of Operations to 10 years serving automotive and 1 as a partner. Brown’s complex become the Executive Director of the motorcycle clients, Ellis orchestrated commercial litigation practice new Westwood Village Improvement the launch of Toyota’s 3rd Generation includes securities class action and Association. Thomas’ contribution to Prius while at Saatchi & Saatchi derivatives suits, SEC enforcement Downtown Santa Monica and Third and has championed integrated matters, accountants’ liability, Street Promenade over the past 10 Ellis campaigns for various Toyota models internal investigations and consumer Thomas years include the creation of the — from strategy through execution. Ellis will lead the IMC class action defense. Brown was Ambassador and Enhanced Maintenance Programs. Both team for Dunn-Edwards Paints and the agency’s business Brown most recently a partner in the Los programs continue to be tremendously successful and development efforts in the automotive industry. Angeles office of Latham & Watkins. have made visible improvements to the area.

Contact Rosz Murray at 323.549.5225 [email protected] 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 17

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18 LOS ANGELES BUSINESS JOURNAL PEOPLE JULY 25, 2011

RINGO H.W. CHIU/LABJ Downtown Den: Robert O’Brien, managing partner at Arent Fox, with photographs and mementos at the law firm’s office in downtown Los Angeles.

Arent Fox’s Robert O’Brien stays busy outside the office assisting Mitt Romney’s presidential campaign and After Hours working to overhaul Afghanistan’s justice system. By ALFRED LEE Staff Reporter The first big moment was when my family stantial issue. Now Gov. Jon Huntsman is in and I went to the Salt Lake Olympics just Robert O’Brien the race, and we currently have an African- OUR years ago, Robert O’Brien’s bou- after Sept. 11. The Olympics had been in ter- American president who attended a church tique law firm, O’Brien Abeles, joined rible trouble, and there’d been a bribery scan- TITLE: Managing Partner of downtown that at least some folks thought was controver- the much larger Washington, D.C.- dal. Everybody was fired and Mitt Romney L.A. office sial. I don’t think Americans are going to vote F based Arent Fox LLP, and he came in and did an unbelievable job. I COMPANY: Arent Fox LLP for someone or against someone based on became managing partner of Arent’s down- remember at one point watching local news their religion. town L.A. outpost. Since then, despite the in the morning, and there was a big traffic BORN: Los Angeles; 1966. downturn, he’s grown the office from 10 to 56 jam, and his motorcade came through and EDUCATION: B.A., political science, UCLA; Are you Mormon? attorneys. But he’s also active outside law firm Mitt hopped out in a parka and started help- J.D., UC Berkeley. I grew up Catholic but joined the LDS Church life: he’s an adviser to Mitt Romney’s presi- ing the volunteers direct traffic. This wasn’t in college. dential campaign; a co-chairman of a State your typical big shot. CAREER TURNING POINT: First big case as Department effort to reform Afghanistan’s jus- an associate, Home Box Office vs. Film Is that a reason why you support him? tice system; and also a member of the State How did you link up with him? Finances. “We ... realized, ‘I can do this.’” No. Look, Harry Reid, who I think is a good Department’s Cultural Property Advisory I got to know his son, Tagg Romney, who was MOST INFLUENTIAL PEOPLE: Skadden man, is Mormon. And if he were the only Committee, which tracks antiquities traffick- a neighbor of mine in the Pasadena area. attorney John Donovan, an early mentor; Mormon running for president, I wouldn’t ing. O’Brien met with the Business Journal at Berkeley law professor David Caron. support him. his office to talk about his admiration for Win- What kind of guy is Mitt? PERSONAL: Lives in the Pasadena area with ston Churchill, how he turned into a country Several years ago we went over to Tagg’s to When did you convert? wife and three children. music fan and how he wants to end his career. have breakfast (and Mitt was there). I was It’s a personal thing, but I had friends who hanging out with Tagg and his wife, Jen, and ACTIVITIES: Golf, tennis, skiing, reading. were LDS. I’d gone to Catholic school, but Question: You serve as an adviser to Mitt I was looking for my son, who at the time when I was in college at UCLA I joined the Romney’s presidential campaign, as you must have been 10 years old. And he and LDS Church. did in 2007. Will he be the next president? Gov. Romney were sitting over on the couch Afghanistan, and that’s one of the things Answer: I certainly hope so. We’re certainly having a conversation about Little League that’ll stick out, to see the interest he took in What was it about the religion that leading in all the national polls on the GOP baseball for probably 15 minutes. Mitt was my young boy. appealed to you? side. Of course, we’re 16 months from the next getting the whole download on the positions Family is central to the faith, and it’s important election and that’s a lifetime in politics. my son was playing, who was on his team, Do you think his Mormonism will be an to me. It’s a Christian faith, and we believe in how good they were that year. I’ve seen Mitt issue with voters? Jesus Christ as our savior. But I think the Was there a moment when you knew in a lot of different circumstances, whether I think there was a novelty to it the last time you’d support him? meeting with leaders in government or in around, but I don’t think it’s going to be a sub- Please see page 20 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 19

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20 LOS ANGELES BUSINESS JOURNAL PEOPLE JULY 25, 2011

Continued from page 18 power and the reach of some of these criminal enterprises.

emphasis on family, service and country are How do you juggle it all? the things that shine through. Some late nights. And I am fortunate to have supportive law partners and clients, and a very How does it emphasize family? understanding family. We believe as a church that families are forev- er, that we’re all children of God, and close- What happens if, say, there’s some kind ness as a family is key to the doctrine and criti- of crisis in your firm’ s L.A. office while cal to our church. you’re in D.C.? I have a team of truly excellent partners in Does that affect your professional life? L.A. who can and have stepped up to handle There’s a real commitment at this firm to family. I any contingency we have faced. was worried that the closeness, the cooperation and the collegiality might be lost in a bigger firm. Between your interests in politics, gov- We’ve grown since January 2007 from 10 lawyers ernment and law, what are you at your to 56 lawyers in this office in the most difficult highest aspiration? economic circumstances. I think we’ve been able I actually really love being a lawyer. I’ve been to maintain that same level of collegiality. fortunate enough to be able to go into government and come back out but I’ve wanted to be Why does closeness in a law firm matter a lawyer since I was kid. I’ll die as a lawyer, at all? Kabul, Afghanistan: With U.S. District Judge David O. Carter. hopefully, at my desk practicing law. Clearly the economy has changed the law business. I think clients are looking for firms that Just to get it straight, I asked you what can staff their matters leanly and that can come your highest aspiration was and you said up with creative results to resolve their dis- to die at your desk practicing law. putes in a cost-effective manner, and that’s (Laughs). I’d like to practice law until a rela- where I think we have an advantage because of tively ripe old age. the collaboration and collegiality we’re talking about. That fosters our ability to work together You have no interest in being a politician? on small teams. I’m certainly not going to run for office. I have been fortunate enough to be asked to serve in You also mentioned service and country various capacities in government over the past are important to you and your faith. few years and would never say no. If the call I just feel it’s a real privilege to serve our came, I’d certainly respond to it. country. One of the times I’ll most remember was after I’d been sworn in (as a legal officer) Well, you speak well, and has anyone ever by Ambassador John Bolton at the United said you kind of look like a politician? Nations. The next day I was sitting in the U.S. I don’t know if that’s good or bad, but I’ll take seat on the floor of the General Assembly, and it as a compliment. one of our Foreign Service officers came over and said, “We need you to make an objection I can’t help but notice that your teeth are to a motion that’s about to be voted on.” really straight. What’s the secret there? (Laughs). Good genes and braces. Then what happened? You know, I’m a lawyer, I’m used to speaking You’ve never been encouraged to go into in public, I’ve spoken in court, I’ve tried cases South Africa: On safari at Addo Elephant National Park. politics before? my whole life, so it’s not a big deal. But when There are a lot of people that’ll say nice things it was our turn and I flipped up our little plac- to you after a speech and that sort of thing. My ard, and when General Assembly President Jan real focus now is on building the best litigation Eliasson said, “I am now calling on the United and best law firm in Los Angeles. There are States of America,” for that second I kind of some great firms in Los Angeles – Munger got choked up. It was almost overwhelming. Tolles, Quinn Emanuel, Skadden’s Los Ange- les office – and we’d certainly like to be con- You’ve also led some U.S. efforts to sidered in that same short list of go-to firms. reform the justice system in Afghanistan. Tell us about that. What do you do in your free time? War and tyranny – Churchill called them the Try to spend as much time as I can with my fam- two giant marauders that kept people from ily. We play tennis together, we ski together. I’m having the rule of law and liberty. When you not on the golf course very often, but I like to look at countries that are able to get a hold of play some golf if I have time. On Friday nights the rule of law, of having the president of the we try to have a date night as long as I’m in country as well as a peasant be treated equally town, try to go to dinner and a movie. Going to before the law, freedom tends to follow and the violin recitals and school plays, all those sorts of human condition tends to be better. So for things, they kind of fill up the rest of your day. example in Afghanistan, to see women who couldn’t leave their basements when the Tal- What radio station is your car on right iban was in power 10 years ago but are now now? sitting as judges or prosecutors and working in I spend most of my time on 105.1, which is the government and being able to send their girls Dili, East Timor: With, center, East Timor President Jose Ramos-Horta and country station, for music. to school, those are great things to see. Arent Fox Partner Pierre-Richard Prosper. Did you grow up liking country? Is Churchill a big hero of yours? I grew up listening to rock, to Journey and There are tipping points in human history iban would routinely execute women by chop- Department. What kinds of items do you Loverboy, the Rolling Stones and the Beatles. I when it comes to freedom and rule of law and ping their heads off or stoning them. They’d track? like to listen to some classical music as well. I liberty and certainly one of the biggest tipping dig a pit and they’d bury a woman accused of We heard about the looting recently of mum- started listening to country while I was in points was Winston Churchill and the British adultery up to her head and have a bunch of mies in one country. People were looting them Geneva working for the United Nations Secu- people standing alone against Nazism. He was guys take stones the size of softballs and throw and literally attempting to mail them across the rity Council from 1996 to 1998. My sister sent also quite a soldier in his younger years fight- them at her head until she was dead. Or they’d border to another country where a collector me a Garth Brooks CD. I had a CD player in ing in Afghanistan. I’m reading “The Story of take a kid who may have stolen a crust of wanted to buy these mummified remains. my car and I was listening to it, and I kind of the Malakand Field Force,” his book about the bread because he was starving and cut off his got hooked on country. wars in Afghanistan and Pakistan when it was arm or his hand. Or they’d behead someone What’s the most interesting thing you’ve part of British India, and he’s talking about the they didn’t think was suitably Islamic or had learned about the illegal trade in antiquities? It’s a funny image, of you in Geneva lis- Pashtuns and some of the same tribes in the shaved his beard. It used to be people who were just tomb rob- tening to Garth Brooks in your car. same areas we’re dealing with right now. It’s a bers, but now there’s this overlap between I remember a Canadian colleague of mine, a little bit eerie, some of the parallels between Has there been progress? international organized crime, especially the very sophisticated guy who spoke great the British experience and what we’re experi- I think there’s been a lot of progress but these drug cartels, and the trafficking of antiquities. French. He hopped into my car and I had a Lee encing now. are people whose whole culture has been You might have a truck where they’re moving Greenwood tape in, “God Bless the U.S.A.” destroyed over the past 40 years. It’s going to people for human trafficking, for the sex trade. We were driving through the old U.N. head- How bad was it when you first started be a hard row for them to hoe. And they’ve also got a load of drugs and quarters in Geneva, through this historic, very your work in Afghanistan? they’ve got some ancient pottery, and it’s all European palace area. I’m in this beat-up old You drive past the soccer stadium in Kabul, You also track and attempt to block coming up through Central America or, say, car with Lee Greenwood blasting out. He just and that’s the soccer stadium in which the Tal- antiquities trafficking for the State from the Far East. It’s a little scary to see the shook his head. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 DATA BANK LOS ANGELES BUSINESS JOURNAL 21

CONVENTIONS $125 CALENDAR (310) 601-2423 Saturday, Aug. 6 Business Ethics • California Gift Show Wednesday, July 27 Internet Marketing and Business Development Sponsor: UCLA Extension July 25 9 a.m. Network Connection Breakfast For Next Generation Businesses (800) 526-2784 Extension Lindbrook Center Sponsor: Greater San Fernando Valley Chamber of Sponsor: Los Angeles Business Executives Forum 10920 Lindbrook Drive, Westwood Commerce 6 p.m. $179 • Adultcon 7:15 a.m. Wolfgang’s Steakhouse (310) 206-5075 July 29-31 Braemar Country Club 445 N. Canon Dr., Beverly Hills (310) 859-6900 4001 Reseda Blvd., Tarzana Free Tuesday, Aug. 9 $35 (310) 281-3917 (818) 989-0300 Networking Lunch • BrideWorld Expo Sponsor: Long Beach Area Chamber of Commerce Thursday, Aug. 4 July 30-31 After Hours Mixer 11:30 a.m. (800) 600-7080 Sponsor: Alhambra Chamber of Commerce Networking Breakfast Parkers’ Lighthouse Sponsor: Santa Monica Chamber of Commerce 435 Shoreline Village Drive, Long Beach 5 p.m. Modern Living Expo Holmes Body Shop 7:30 a.m. $30 (RSVP required) • Aug. 6-7 1130 E. Main St., Alhambra La Cachette Bistro (562) 436-1251 $15 1733 Ocean Ave., Santa Monica (626) 274-9666 (626) 282-8481 $25 Wednesday, Aug. 10 (310) 393-9825 All About Business Loans • West Coast Expo Tuesday, Aug. 2 Sponsor: VEDC Aug. 12-14 Government Contracting Is Your Retirement Plan Protected? 4 p.m. (323) 905-1306 Sponsor: Federal Technology Center Sponsor: Beverly Hills Chamber of Commerce 5121 Van Nuys Blvd., Van Nuys $10 9 a.m. 8 a.m. Exxxotica Expo Long Beach Area Chamber of Commerce Sunrise Assisted Living (818) 907-9922 • Aug. 26-28 One World Trade Center, Suite 206 201 N. Crescent Drive, Beverly Hills Friday, Aug. 12 Free $10 (215) 462-8800 (866) 382-7822 (310) 248-1000 Networking Breakfast Sponsor: Beverly Hills Chamber of Commerce • Senior Clean Air Fair 8 a.m. Night Golf Classic Business to Business Breakfast Sept. 15 InterContinental Hotel Sponsor: Greater San Fernando Valley Sponsor: Alhambra Chamber of Commerce (909) 396-2221 2151 Avenue of the Stars, Century City Chamber of Commerce Noon 4 p.m. $30 Almansor Court (310) 248-1000 • Wizard World Comic Con Braemar Country Club 700 S. Almansor St., Alhambra 4001 Reseda Blvd., Tarzana Sept. 24-25 $5 $75 Saturday, Aug. 20 (646) 380-2475 (626) 282-8481 (818) 989-0300 1-Day Real Estate Boot Camp Sponsor: UCLA Extension Fall Home and Garden Show Optimizing Your Job Search • Networking at Night 9 a.m. Sept. 30 Sponsor: Challenger Networking Group Extension Lindbrook Center Sponsor: Greater San Fernando Valley Chamber of (800) 999-5400 Commerce Noon 10920 Lindbrook Drive, Westwood 5 p.m. Zen Buffet $165 Braemar Country Club 21610 Victory Blvd., Woodland Hills (310) 206-1555 • Ultimate Women’s Expo 4001 Reseda Blvd., Tarzana $11 (for lunch) Oct. 1-2 $15 (or free with Night Golf Classic) (818) 992-4270 (866) 618-3434 (818) 989-0300 To be considered for publication, Calendar listings should be submitted at least three weeks in advance Foreclosure Workshop Green Festival L.A. Wednesday Aug. 3 Sponsor: California Foreclosure Institute of the event. Listings can be submitted by e-mail to • Oct. 29-30 5:30 p.m. [email protected] or by mail to: Bankruptcy Luncheon (800) 584-7336 Sponsor: Beverly Hills Bar Association San Gabriel Library Los Angeles Business Journal Noon 500 S. Del Mar Ave. Calendar Lawry’s Free 5700 Wilshire Blvd. #170 100 N. La Cienega Blvd., Beverly Hills (310) 379-0101 Los Angeles, CA 90036 L.A. Convention Center, (213) 741-1151, ext. 5340

Debts: N/A Altadena 91001 Proam Enterprise Inc. Debts: $256,703 BANKRUPTCIES Doc# SV11-17630-AA Chapter: 7 (Closed-circuit TV equipment) Doc# LA11-37698-EC File-Date: 06/22/11 Assets: N/A 13073 E. 166th St. File-Date: 06/27/11 Joy Investment Group LLC Leslie Richards Debts: N/A Cerritos 90703 Farbood Majd (Developer/sale of condos) 818-997-9955 Doc# LA11-37487-ER Chapter: 11 310-956-4600 1410 S. Olive St. File-Date: 06/27/11 Assets: N/A L.A. 90015 Atex Corp. Marcus Mumford Debts: N/A Westwood Boulevard Properties LLC Chapter: 11 (Business type N/A) 888-315-4735 Doc# LA11-37686-SK (Real estate) Assets: $2,178,250 26314 Western Ave., Suite #200 File-Date: 06/27/11 10901 Santa Monica Blvd. Debts: $7,019,550 Lomita 90719 Lanky’s Inc. Naveen Madala L.A. 90025 Doc# LA11-36576-EC Chapter: 11 DBA: Los Feliz Car Wash 714-888-6850 Chapter: 11 File-Date: 06/20/11 Assets: N/A (Carwash) Assets: N/A 3001 Los Feliz Blvd. William H. Brownstein Debts: N/A Wise Systems Inc Debts: N/A L.A. 90039 310-458-0048 Doc# LA11-37051-PC (Business type N/A) Doc# LA11-37707-PC Chapter: 11 File-Date: 06/23/11 13073 E. 166th St., Suite #B File-Date: 06/27/11 Tarzhat 137 Investments Inc. Jiyoung Kym Assets: $2,006,000 Cerritos 90703 Debts: $4,097,163 Ovsanna Takvoryan (Investment) 213-386-0800 Chapter: 11 818-291-6272 18375 Ventura Blvd., Suite #423 Doc# LA11-37596-BB Assets: N/A File-Date: 06/27/11 Tarzana 91356 Duri USA Inc. Debts: N/A SGrove Holdings Corp. Chapter: 7 FDBA: Duri USA LLC Sherry Garrels Doc# LA11-37687-RN 714-374-0101 (Business type N/A) Assets: N/A (Import-textile) File-Date: 06/27/11 5189 Gaynor Ave. Debts: N/A 1300 S. Santee St., #209 Naveen Madala PBMS Inc. Encino 91436 Doc# SV11-17509-AA L.A. 90015 714-888-6850 DBA: Premier Building Chapter: 13 File-Date: 06/20/11 Chapter: 7 Assets: N/A Maintenance Services Inc. Barbar Artist Inc. Lynne Romano Assets: 2,000 Debts: N/A (Janitorial services) (Import/export) 626-552-0270 Debts: 602,041 Doc# SV11-17822-VK 1909 Wilshire Blvd. 159 S. La Brea Ave. Doc# LA11-37410-BR L.A. 90057 File-Date: 06/27/11 Racosio LLC File-Date: 06/24/11 L.A. 90036 Chapter: 11 Chapter: 7 Mitchell J. Stein AKA: Kapistahan Grill Young K. Chang Assets: N/A Assets: $0 877-475-2448 (Food and dining) 213-480-1050 Debts: N/A 1925 W. Temple St., Suite #103 Doc# LA11-37653-EC L.A. 90026 Computer Czech LLC File-Date: 06/27/11 Bankruptcy information is supplied by Timely Info of Los Angeles, Jack Vaughn (323) 664-4423. Chapter: 7 (Business type N/A) Alan F. Broidy Chapter 7: a “straight” liquidation bankruptcy involving an appointed trustee to sell all assets by Assets: $20,000 9050-1/2 Santa Monica Blvd. 310-286-6601 auction or other means to pay creditors and trustee fees. Debts: $220,513 West Hollywood 90069 Chapter 11: a process which allows a business to gain temporary relief from paying debt in order to Doc# LA11-36683-RN Chapter: 7 California Girlz Inc. attempt a successful reorganization. The debtor remains in control of the business during the bank- File-Date: 06/21/11 Assets: $1,106 (Business type N/A) ruptcy and the business continues to function. Rodolfo T. Bunagan Debts: $165,942 507 E. Jefferson Blvd. Chapter 13: a bankruptcy plan available to individuals whose “income is sufficiently stable and reg- 213-381-5740 Doc# LA11-37453-BR L.A. 90011 ular to enable such individual to make payments under a plan.” The debtor makes payments to a File-Date: 06/25/11 Chapter: 7 trustee who disburses the funds to creditors. City Wide Construction Inc. Thomas J. Polis Assets: N/A Involuntary bankruptcy: the debtor is forced into bankruptcy by secured creditors whose claims (Business type N/A) 949-862-0040 Debts: N/A total at least $220,000. Involuntary bankruptcy may be filed under Chapter 7 or 11. 12500 Riverside Drive, #201A Doc# LA11-37665-RN AKA: also known as FKA: formerly known as Valley Village 91607 Social Digs Media LLC File-Date: 06/27/11 DBA: doing business as FAW: formerly associated with Chapter: 7 (Social media, informational tech) Kelly R. Cha FDBA: formerly doing business as Assets: N/A 2034 Craig Ave 213-382-9490 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

22 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011

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The Midnight Mission

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FARMERSFIELD.COM 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

LOS ANGELES BUSINESS JOURNAL • JULY 25, 2011 • SPECIAL REPORT LARGEST & MOST PROFITABLE L.A. COMPANIES

Gone to Markets HE aphorism “a rising tide lifts all Business Journal’s list to also enjoy double-digit per- Investors’ gradual boats” has played true for the centage gains in valuation. return pumped up stock performance of Los Angeles Still, the recovery clearly slowed, as the previous County’s largest public companies year 28 companies saw their market caps increase by the capitalization of over the past year. double-digit percentages. The companies on the Business “We had this massive exit of investors out of the public companies Journal’s annual midyear ranking stock market, and many have yet to fully return,” said including L.A. leader, by market cap had a combined cap- Bryant Riley, chairman of West L.A. investment bank italization of $471 billion as of B. Riley & Co. “Investors are holding fewer stocks.” Occidental Petroleum. TJune 30. That’s up roughly 27 percent and in line with Even so, the larger stock market continues to recover, broader market indicators such as the S&P 500 and the and most L.A.-area companies have come along for the Dow Jones industrial average. And it beats last year’s 17 ride. More than two-thirds of 180 companies on the percent gain as the economic recovery got under way. Business Journal’s list that have been public more than a By DEBORAH CROWE Staff Reporter Occidental Petroleum Corp. remained the county’s year rose in value over the past 12 months. largest company this year as its market cap jumped by None benefited more than Westwood independent oil 35 percent to $84.6 billion, roughly double the gain of and gas giant Occidental, which has been riding a wave last year. In addition, Walt Disney Co., DirecTV Inc. of higher oil prices and a pipeline of productive oil fields and Public Storage were among 15 companies on the that span the globe.

Please see page 24

Also: Herbalife tops most Chart: Most Profitable List: Largest Public profitable list. PAGE 25 Companies PAGE 26 Companies PAGE 27 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

24 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011

SPECIAL REPORT LARGEST & MOST PROFITABLE L.A. COMPANIES

investment trusts, also benefited during the Among the biggest movers on the list was Continued from page 23 THE TOP 5 tepid recovery Herbalife Inc., which again topped the Busi- Public Storage pushed defense giant ness Journal’s separate list of most profitable 1. OCCIDENTAL PETROLEUM CORP. “Oxy has been a way to play the surge in Northrop Grumman Corp. out of the top companies. Investors impressed by the compa- oil prices with a lot less risk than some com- Market Cap: $84.6 billion +35 percent five on the list after the Glendale REIT’s valu- ny’s 80.2 percent return on equity over the past petitors,” said Pavel Molchanov, an analyst at Oil and gas exploration company continued ation jumped 37 percent to $20.4 billion. three years, have boosted its valuation by near- St. Petersburg, Fla.-based Raymond James and to benefit from steady rise in oil prices and Michael Mueller, an equity analyst for New ly 150 percent, moving the company up five Associates. “It did have to shut down opera- modest risk profile. York-headquartered JPMorgan Chase Bank, places on the largest companies list to No. 13. tions in Libya, but its other fields in the Middle said cautious investors looking for a real estate The downtown L.A. company, which East are in relatively quiet countries. It really 2. WALT DISNEY CO. play have been paying more attention to Public relies on a network of independent multilevel doesn’t do offshore drilling, so it wasn’t hurt Market Cap: $73.8 billion +20 percent Storage over the past year. The distributors, has expanded its by the Gulf oil spill last year.” company did a good job of keeping business model from sales of Entertainment giant boosted by higher TV Disney gained 20 percent appreciation in its occupancy rates high at its self- packaged weight loss and nutri- ratings and ad revenue, well-received film market cap this year to $73.8 billion, retaining storage facilities without signifi- tional supplements to daily indi- releases and rebound of theme park business. its No. 2 spot on the Business Journal’s list. cantly cutting rent rates, and has vidual servings to customers at The Burbank entertainment giant saw reces- 3. AMGEN INC. taken steps to share its strong cash storefront and in-home clubs both sion-weary consumers return to its theme flow with investors. here and abroad. Except for Market Cap: $54.3 billion +8 percent parks, head to the theaters for its family films, “Public Storage historically has China, the distributors bear the and boost ratings for its broadcast and cable New drug approvals offset concerns over paid low dividends because it want- capital costs of those clubs. TV properties. weakness in the biotech giant’s core anemia ed to invest its cash back into grow- “We believe that Herbalife Amgen Inc., which saw its valuation slide drug business. ing the business,” Mueller said. “But shares offer an opportunity to ben- 6 percent the previous year as investors pun- 4. DIRECTV INC. during the recession, other REITS Streit efit from economic recovery,” ished the Thousand Oaks biotech for revenue cut their dividends. As the economy said John Staszak, an analyst for and net income declines, more than made up Market Cap: $39.0 billion +26 percent has improved, Public Storage has raised its divi- New York’s Argus Research Co., in a recent that loss, growing 8 percent to $54.3 billion to Nation’s largest satellite TV provider sells dend by 75 percent, which makes them a lot note to investors. retain its No. 3 spot. investors on overseas expansion plans. more competitive.” Joining the Business Journal’s list are several Amgen benefitted from U.S. and European Real estate-focused companies such as companies that have gone public over the past 5. PUBLIC STORAGE regulatory approvals for its bone drug deno- Public Storage are among the largest sectors year. The highest ranked is Century City’s Air sumab, which is marketed under various Market Cap: $20.4 billion +37 percent among L.A.’s biggest companies. One-third Lease Corp. The company, which leases fleets names. Analyst Michael Yee, who covers the Well-run REIT specializing in self-storage facil- of the list’s 15 largest companies are either of jets to airlines, was founded by L.A. billion- company for Toronto-based RBC Capital Mar- ities gets investor kudos for raising dividends. REITS or service companies, including Long aire Steven Udvar-Hazy and debuts on the list at kets Corp., said Amgen might have attracted Beach health care REIT HCP Inc., which No. 24 with a market cap of $2.3 billion. more interest were it not for the continued saw its market cap jump 50 percent to $14.9 Monrovia prepaid debit company Green shadow over its cornerstone anemia drug fran- largest satellite TV provider, retained its No. billion as its net income soared 132 percent. Dot Corp., founded by Chief Executive Steve chise, drugs Aranesp and Epogen, which was 4 spot on the list with a 26 percent apprecia- It moved two places up the Business Jour- Streit, lands at No. 36 with a valuation of $1.4 hurt by safety concerns and more restrictive tion in its valuation that slightly exceeded the nal’s list to No. 7. billion. Beverly Hills 3-D film technology Medicare reimbursement policies. previous year’s 24 percent. The $39 billion Commercial real estate services giant CB company RealD Inc. ranks No. 36 with a $1.4 “Denosumab should eventually grow to stock got a boost this spring after the compa- Richard Ellis Group Inc., which saw its stock billion market cap. blockbuster status and offset more than this ny reported promising results from its foray plunge during the downturn, rebounded with Making its final list appearance is defense decline but it’s still early in the launch,” into the Latin American satellite television an 87 percent surge in share price as its net giant Northrup Grumman, which is relocating Yee said. “The stock is cheap and likely to market, where it added close to a half-million income quintupled. The West L.A. company, its corporate headquarters this summer to the go up long term.” subscribers in the first quarter alone.Real which brokers and manages properties world- Washington, D.C., area. Its $19.2 billion mar- El Segundo’s DirecTV, the nation’s estate-related stocks, especially real estate wide, rose two places on the list to No. 11. ket cap places the company at No. 6.

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JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 25

SPECIAL REPORT LARGEST & MOST PROFITABLE L.A. COMPANIES Supplement Maker Shakes Out as Most Profitable

By JAMES RUFUS KOREN Staff Reporter Like True Religion, another premium jeans maker high on the list, No. 10 Joe’s Jeans ERE’S no surprise. Inc., with a 23 percent three-year average Fueled by growing worldwide sales return on equity, saw its sales rise last year. Hand aided by a lean distribution system, But its annual ROE fell to 4.1 percent from downtown L.A. nutritional supplement maker 50.3 percent in 2009. How is that possible? Herbalife Ltd. remained the most profitable David Griffith, a senior research analyst who public company in Los Angeles County last year. follows Joe’s Jeans for Roth Capital Partners But here is a surprise. LLC in Newport Beach, said a tax windfall in Despite an improvement in corporate earn- 2009 dramatically improved the company’s ings nationally and countywide, most companies earnings and return on equity that year. at the top of the Business Journal’s annual rank- The tax benefit boosted its fourth quarter ing, based on three-year average return on equi- net income by $17.6 million. That accounted ty, didn’t have stellar performances last year. for the lion’s share of the company’s 2009 (See list page 26.) profits of $24.5 million. Of the 10 most profitable local public com- “Thirty-three out of 40 cents (of earnings per panies, only Herbalife and Guess Inc. (No. 6) share) was from the tax asset,” Griffith said. saw higher single-year returns on equity in By contrast, the company recorded only a 2010 than in 2009. Only one, apparel licensing $2.6 million profit last year despite higher sales.

company Cherokee Inc. (No. 2), saw an RINGO H.W. CHIU/LABJ Then there is Herbalife. The downtown L.A. increase in its three-year average return. Efficient Operation: Workers make lasagna at Overhill Farms’ Vernon factory. maker of health supplements posted an average The others went south. For example, third- return on equity of 80.2 percent over the past three ranked U.S. China Mining Group Inc., a City ber Alexander Auerbach said price-conscious No. 7 True Religion Apparel Co., another years, topping other companies by a wide margin. of Industry company with mining interests in consumers, price-cutting competitors, and high- Vernon business, makes pricey premium denim The company is rapidly growing overseas China, saw its return on equity fall more than er fuel and energy costs made last year tough. jeans and other apparel. Its three-year average but that expansion isn’t requiring big invest- half to 15.3 percent. And No. 5 Arden Group “Because consumers’ budgets are under return on equity was a healthy 28.2 percent, but ments. Instead of building stores, the company Inc., the Compton parent of upscale Gelson’s stress, shopping is affected,” Auerbach said. it also saw its annual ROE fall nearly one-third can expand its reach by adding to its stable of Markets, fell from 35.8 percent to 23.5 percent. “We’ve had to adjust our production to be as effi- in 2010 despite a 16.9 percent boost in sales. more than 2 million independent distributors, The lower returns show that a company’s cient as we can with smaller runs. It’s been a con- Dorothy Lakner, managing director of who have products shipped to them. performance is tied more to its circumstances tinual battle, searching for small efficiencies.” Caris & Co. in New York, who follows True The only place the company is footing the than to general business conditions. The company reported that net income for Religion, said the company had flat earnings bill for expansion is China, where the govern- Consider Vernon frozen-food maker Over- its 2010 fiscal year ended Sept. 26 fell 8.7 per- and a lower return on equity in part because ment has barred sales from homes, requiring hill Farms Inc. The No. 4 company on the list cent to $7.58 million on a similar drop in rev- it invested in new stores. It opened 24 loca- Herbalife to front capital for 70 storefront loca- had a 30.1 percent three-year average return on enue to $194 million. tions last year. tions. However, sales are growing quickly in equity, but that was pulled down by a 21.5 per- “Investing in those has caused (earnings) to what soon may become the world’s largest cent ROE last year that was almost one-third Fashion blues be flat, despite some impressive growth,” she consumer market. smaller than in 2009. Slumping sales and price-cutting rivals said, adding that having its own stores rather “It’s a pretty high-return business, period,” Overhill makes frozen meals for grocers, weren’t been the reason for the reduced prof- than being a wholesaler should ultimately said Timothy Ramey, a senior vice president restaurants and airlines. Company board mem- itability of others near the top of the list. make True Religion more profitable. with DA Davidson & Co. in Lake Oswego.

YOUR CORPORATE RESERVE TABLE TODAY! The Los Angeles Business Journal is pleased to present the 5th annual Best Places to Work Awards.

Awards Luncheon: Tuesday, August 9, 2011, 11:00a.m. – 1:30p.m. J.W. Marriott at L.A. Live, Platinum Ballroom, 900 W. Olympic, Los Angeles, CA 90015 Individual tickets: $125 each; Corporate table of 10: $1,000

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26 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011

SPECIAL REPORT LARGEST & MOST PROFITABLE L.A. COMPANIES

MOST PROFITABLE PUBLIC COMPANIES Ranked by Three-Year Average Return on Equity

3-Year Avg. 2010 3-Year Avg. 2010 Company Name ROE (%) ROE (%) Company Name ROE (%) ROE (%)

1 Herbalife Ltd. 80.2 68.6 66 Tutor Perini Corp. 3.1 8.0 2 Cherokee Inc. 55.4 51.3 67 Hot Topic Inc. 3.0 -3.3 3 U.S. China Mining Group Inc. 40.0 15.3 68 On Assignment Inc. 2.3 -4.4 4 Overhill Farms Inc. 36.6 21.5 69 California Pizza Kitchen Inc. 2.2 -0.2 5 Arden Group Inc. 30.1 23.5 70 Spark Networks Inc. 2.0 17.0 6 Guess Inc. 28.3 27.9 71 East West Bancorp Inc. 1.4 6.7 7 True Religion Apparel Inc. 28.2 19.5 72 United Online Inc. 1.1 11.4 8 Peerless Systems Corp. 25.5 12.8 73 Wilshire Bancorp Inc. 0.8 -20.5 9 J2 Global Communications Inc. 23.9 21.6 74 First California Financial Group 0.4 0.1 10 Joe's Jeans Inc. 23.0 4.1 75 ValueClick Inc. -0.5 20.6 11 Mattel Inc. 22.2 26.5 76 Cathay General Bancorp -1.1 -0.4 12 Amgen Inc. 20.6 19.9 77 Douglas Emmett Inc. -1.5 -1.5 13 Daily Journal Corp. 19.9 13.2 78 NetSol Technologies Inc. -1.9 4.3 14 Teledyne Technologies Inc. 19.1 16.6 79 Nara Bancorp Inc. -2.2 -3.8 15 Obagi Medical Products Inc. 18.6 15.8 80 Kennedy Wilson Holdings Inc. -2.9 -0.4 16 Occidental Petroleum Corp. 17.5 14.7 81 Taitron Components Inc. -3.4 -1.8 17 Simulations Plus Inc. 17.2 18.3 82 Avery Dennison Corp. -4.2 21.1 18 VCA Antech Inc. 16.4 11.8 83 Superior Industries International -4.8 13.1 19 Ever-Glory International Group 16.0 18.8 84 Trio-Tech International -5.2 -1.9 20 Bidz.com Inc. 15.5 -4.4 85 International Rectifier Corp. -5.4 6.9 21 Jacobs Engineering Group Inc. 15.3 9.0 86 Salem Communications Corp. -6.1 1.0 22 Big 5 Sporting Goods Corp. 15.0 14.6 87 Ixia -6.2 4.2 23 IPC the Hospitalist Co. Inc. 14.9 15.2 88 Qualstar Corp. -6.2 -9.7 24 Anworth Mortgage Asset Corp. 14.7 12.5 89 Broadway Financial Corp. -6.9 4.1 25 Dole Food Co. Inc. 14.2 -4.2 90 1st Century Bancshares Inc. -7.4 -4.3 26 DreamWorks Animation SKG 14.0 14.2 91 Reading International Inc. -7.4 -11.5 27 Tetra Tech Inc. 13.1 11.0 92 Thomas Properties Group Inc. -9.4 -8.1 28 Aecom Technology Corp. 11.8 12.4 93 K-Swiss Inc. -9.5 -25.4 29 Walt Disney Co. 11.7 11.1 94 Virco Manufacturing Corp. -9.6 -29.4 30 Edison International 11.5 12.3 95 MRV Communications Inc. -9.8 24.9 31 Reliance Steel & Aluminum Co. 11.4 7.2 96 Farmer Brothers Co. -10.2 -13.2 32 Cheesecake Factory Inc. 11.3 14.7 97 Center Financial Corp. -12.0 -5.3 33 Skechers USA Inc. 10.9 16.5 98 U.S. Auto Parts Network Inc. -12.1 -17.9 34 AeroVironment Inc. 10.9 10.4 99 Physicians Formula Holdings -12.8 1.1 35 Public Storage 10.8 8.1 100 ReachLocal Inc. -14.1 -18.0 36 LTC Properties Inc. 10.4 10.0 101 Jakks Pacific Inc. -15.4 12.0 37 Stamps.com Inc. 9.7 9.2 102 Manhattan Bancorp -16.9 -17.7 38 Ameron International Corp. 9.6 9.3 103 American Apparel Inc. -19.8 -74.3 39 DTS Inc. 9.4 11.1 104 Live Nation Entertainment Inc. -20.9 -22.6 40 National Technical Systems Inc. 9.0 10.5 105 InterGroup Corp. -25.0 -51.3 41 Molina Healthcare Inc. 8.7 8.7 106 Preferred Bank -27.8 -14.8 42 Semtech Corp. 8.7 15.5 107 Ryland Group Inc. -27.8 -15.7 43 Motorcar Parts of America Inc. 8.4 11.1 108 KB Home -32.1 -10.4 44 American States Water Co. 8.3 9.0 109 Guidance Software Inc. -33.6 -20.0 45 PS Business Parks Inc. 8.0 6.6 110 Santa Fe Financial Corp. -33.8 -30.1 46 99 Cents Only Stores 8.0 11.6 111 PacWest Bancorp -37.0 -12.6 47 Iris International Inc. 7.7 3.5 112 Tix Corp. -38.3 -18.7 48 Breitburn Energy Partners LP 7.3 2.9 113 CytRx Corp. -39.0 1.4 49 PC Mall Inc. 7.2 7.4 114 Staar Surgical Co. -40.7 0.2 50 Macerich Co. 7.1 1.1 115 Sport Chalet Inc. -44.0 -12.8 51 Northrop Grumman Corp. 6.9 15.6 116 THQ Inc. -45.5 -51.2 52 Farmers and Merchants Bank 6.9 8.8 117 Hanmi Financial Corp. -48.6 -54.5 53 Power-One Inc. 6.5 71.4 118 CB Richard Ellis Group Inc. -49.5 26.1 54 Mercury General Corp. 6.3 8.5 119 DineEquity Inc. -67.3 -90.0 55 Ducommun Inc. 6.2 8.1 120 Reeds Inc. -69.5 -50.1 56 Electro Rent Corp. 6.1 5.1 121 Enova Systems Inc. -72.7 -60.2 57 Alexandria Real Estate Equities 6.0 4.8 122 Lions Gate Entertainment Corp. -85.0 -59.1 58 OSI Systems Inc. 5.8 8.0 123 Capstone Turbine Corp. -104.8 -95.1 59 HCP Inc. 5.5 4.7 124 Entravision Communications -116.5 -101.6 60 Health Net Inc. 4.8 12.0 125 Response Genetics Inc. -116.8 -101.5 61 City National Corp. 4.8 6.7 126 Cereplast Inc. -127.7 -124.1 62 Unico American Corp. 4.8 3.2 127 BioSolar Inc. -148.4 -216.3 63 UTI Worldwide Inc. 4.4 8.3 128 Arrowhead Research Corp. -149.5 -83.1 64 Kilroy Realty Corp. 3.9 1.2 129 Cadiz Inc. -161.7 -261.1 65 Korn/Ferry International 3.3 11.0

Note: Return on equity is calculated as net income divided by average total common equity; companies with negative common equity in any of the last three years are excluded. Source: Bloomberg News 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 27

X NEXT WEEK L.A’S LARGEST PUBLIC COMPANIES The 25 Largest General THE LIST Ranked by market capitalization as of June 30 Contractors in L.A. County

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28 LOS ANGELES BUSINESS JOURNAL THE LIST JULY 25, 2011

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JULY 25, 2011 THE LIST LOS ANGELES BUSINESS JOURNAL 29

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30 LOS ANGELES BUSINESS JOURNAL THE LIST JULY 25, 2011

Continued from page 29

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JULY 25, 2011 THE LIST LOS ANGELES BUSINESS JOURNAL 31

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lease see page 32 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

32 LOS ANGELES BUSINESS JOURNAL THE LIST JULY 25, 2011

Continued from page 31

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JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 33 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

34 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011

ADVERTISEMENT

The Welcome Sign for Business Is Always on in Las Vegas

HE neon never dims in Las the middle of the Western region, To accommodate the city’s government projects. Vegas, at least when the surrounded by 11 states that growth and its spot as the eighth Tregion is welcoming compa- include numerous metropolitan busiest airport in the U.S., McCar- Quality Healthcare nies to do business in the city that areas. Millions of individuals are ran International Airport is expand- Las Vegas is well on its way to never sleeps. Its business-friendly within a day’s driving distance, ing to assist with the import and becoming a leading healthcare government, motivated workforce and approximately 50 million peo- export of goods. Scheduled to open provider, particularly with the and solid infrastructure ensure that ple from all parts of the world visit next year, McCarran’s new terminal opening of the Nevada Cancer Insti- relocating your business to Las Nevada every year. As the capital has 14 gates and many shopping tute and the Cleveland Clinic Lou Vegas will be one of the best deci- of the new MegaWest, Las Vegas is and dining outlets. The new addi- Ruvo Center for Brain Health. The sions you’ll ever make. a unique city that captures the tion will ease airport congestion Nevada Cancer Institute serves attention of an international and accommodate up to 53 million more than 15,000 patients and, A State with One of the Lowest Costs of crowd in one place. travelers annually. with the University of Nevada Doing Business in the Nation School of Medicine, developed There’s a seemingly unlimited Wealth of First-Rate Labor Satisfying the Knowledge-Driven Nevada’s first fellowship in oncolo- amount of time and energy that Choose computer-literate and The University of Nevada, Las gy. 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With numerous workforce and engineering program and cur- and improving ways for physicians neurs through lower tax rates and training programs, local residents go rently in the process of building the to more accurately detect disease. state incentives. Nevada consistent- above and beyond what is asked of UNLV Harry Reid Research & Tech- ly ranks among the best states to them, keeping the labor pool com- nology Park, which will foster The Arts Come to Las Vegas operate a business because its tax petitive, motivated, reliable and research growth and technology In 2012, Las Vegas will present climate is among the least onerous ever-expanding. development at UNLV while creat- the 300,000 s.f., $500M Smith Cen- in the U.S. ing a business community that will ter for the Performing Arts, a stun- Las Vegas is also Foreign Trade Prepared and Poised for Growth advance the existing research and ning architectural design that will Zone #89, which allows firms to Nevada is home to exceptional high-tech economic base in South- open its doors to some of the import foreign goods or raw materials telecommunications and technolo- ern Nevada. world’s greatest plays, ballets, for manufacturing and/or assembly gy infrastructure. 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JULY 25, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 35 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

36 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011

ADVERTISEMENT Burbank’s Excellence in Economic Development

By Mike Flad, Greg Herrmann, • No gross sales receipt tax Joy Forbes, Ruth Davidson- • Clean and safe city Guerra and Mary Hamzoian • One-stop streamlined permitting process S the media capital of the Burbank has put itself on the world buzzing with major map as a “business forward” city. Aentertainment companies Continuing to expand upon its such as Warner Bros., Disney World strengths and partnering with a net- Headquarters, and ABC, Burbank work of public/private organiza- has positioned itself as the premiere tions, the Economic Development southern California destination for Team strives to maintain excellence businesses, residents and visitors in to the business of attraction, expan- 2011 and for years to come. sion, retention, marketing, training With major initiatives and strate- and collaboration. This theme gies in place to increase economic comes alive in such city sponsored vitality and position Burbank for initiatives as Team Business, Shop the future, we have weathered Burbank, targeted marketing and through the storm and navigated media campaigns, grand openings our way to the top. Major vacancies and encouraging sustained com- that were once an eyesore are thriv- Left to right: Mary Hamzoian, Economic Development Manager; Mike Flad, City Man- mercial activity citywide. ing new destinations such as Flap- ager; Greg Herrmann, Community Development Director; Ruth Davidson-Guerra, In one of the most competitive per’s Comedy Club (former Maca- Assistant Community Development Director; Joy Forbes, Deputy City Manager markets in the country, Burbank roni Grill), Burlington Coat Factory continues to maintain on top by (former Mervyns), Nordstrom Rack August 2009 to pursue strategic and services would require substantial providing excellent levels of service (former Linens ‘N’ Things) and Ash- aggressive approaches to economic cuts, resulting in a diminished stan- and commitment that its residents, ley Furniture (former Circuit City). vitality and growth for Burbank. At dard of living for everyone. To that businesses and visitors have become With the directive to keep Burbank the same time, the Team reinforces end, the Economic Development accustomed to. at the forefront of business retention long term City Council goals for a Team was steadfast in its commit- and expansion efforts and to create robust economy. ment to job growth, encouraging a For Burbank, Mike Flad is City Manag- new opportunities by attracting new In the current nationwide down- dynamic business culture and er, Greg Herrmann is Community businesses to the area, the Economic turn, economic development is boosting the high quality of life Development Director, Joy Forbes is Development Team has focused its more essential than ever to bolster that characterizes Burbank. Deputy City Manager, Ruth Davidson- efforts on “moving forward in every City services such as police, fire, Providing the right tools and Guerra is Assistant Community Devel- direction.” Spearheaded by City Man- parks and recreation facilities, youth resources for the business commu- opment Director, and Mary Hamzoian ager Mike Flad, the Economic Devel- and senior centers, libraries and nity with: is Economic Development Manager. opment Team was launched in schools. Without support, needed • No city income tax 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 INVESTMENTS & FINANCE LOS ANGELES BUSINESS JOURNAL 37

ECONOWATCH L.A.COUNTY EVENT

%± from GENERAL INDICATORS Latest Previous previous Year %± from period period period ago year ago Employment (000’s) (May)1 ...... 4,284.8 4,322.8 -0.9% 4,261.2 +0.6% Unemployment (000’s) (May)1...... 577 575.7 +0.2% 590.5 -2.3% Film Production Days (2nd qtr.)2 ...... 11,260 11,604 -3.0% 11,134 +1.1% Bankruptcies Chapter 7 (Apr.)...... 3,609 4,043 -10.7% 3,680 -1.9% Is your CFO Chapter 11 (Apr.) ...... 57 47 +21.3% 38 +50.0%

Trade3 Exports (mils.) (May) ...... $10,355.5 $10,397.0 -0.4% $9,270.8 +11.7% Imports (mils.) (May) ...... $22,344.6 $20,031.9 +11.5% $20,273.6 +10.2% one of the best in Air cargo4 LAX (May)...... 155.3 155.1 +0.1% 168.3 -7.7% Burbank (May) ...... 7.4 7.3 +1.4% 7.7 -3.9% Container volume5 (000’s) Long Beach (June) ...... 554.3 536.7 +3.3% 520.1 +6.6% Los Angeles? Los Angeles (June) ...... 640.8 692.9 -7.5% 730.3 -12.3% Los Angeles CPI (June) ...... 232.3 233.4 -0.5% 225.9 +2.8%

%± from REAL ESTATE Latest Previous previous Year %± from The CFO of the Year Awards are presented to period period period ago year ago financial professionals in Los Angeles for their Construction lending (mils.) (May) ...... $160.5 $121.9 +31.7% $111.1 +44.5% Property acquisition lending (mils.)6 (May) ...... $1,729.1 $1,698.8 +1.8% $2,226.5 -22.3% outstanding performance as corporate financial Refinance lending (mils.) (May)7 ...... $3,139.8 $3,716.4 -15.5% $3,290.7 -4.6% stewards. The winners will be announced at an Foreclosures Number (May) ...... 2,487 2,309 +7.7% 2,942 -15.5% awards luncheon in September. Value (mils.) (May) ...... $691.7 $604.4 +14.4% $914.8 -24.4% Building contracts (mils.) Residential (May) ...... $162.6 $160.2 +1.5% 153.9 +5.7% Nonresidential (May) ...... $103.1 $218.8 -52.9% 755.4 -86.4% Nomination Deadline: Building permits (mils.) Residential (May) ...... $405.6 $235.9 +71.9% $184.2 +120.2% Friday, July 29, 2011 Nonresidential (May) ...... $274.0 $243.4 +12.6% $196.4 +39.5% Housing start permits (May) ...... 1,574 515 +205.6% 325 +384.3% Home sales (June)8 ...... 3,867 4,641 +4.2% 5,710 -15.0% Award Categories: Home prices (000’s) (June) ...... $340 $340 0.0% $350 -2.9% • Private Company Condo sales (June)8 ...... 1,564 1,785 +9.5% 2,156 -9.3% • Public Company Condo prices (000’s) (June) ...... $285 $297 -4.0% $305 -6.6% Apartments (1st qtr.) • Government/Public Sector Gross occupancy ...... 93.9% 93.8% +0.1% 93.6% +0.3% • Nonprofit Avg. sq. ft. rent ...... $1.93 $1.86 +3.8% $1.90 +1.6% Avg. monthly rent ...... $1,637 $1,609 +1.7% $1,590 +3.0%

Office vacancy rates (2nd qtr.) For more information or to nominate, please visit Downtown Los Angeles ...... 15.4% 15.0% +2.7% 15.7% -1.9% www.labusinessjournal.com/bizevents San Fernando Valley ...... 17.6% 18.5% -4.9% 19.0% -7.4% West L.A...... 15.7% 16.6% -5.4% 15.4% +1.9% or contact Marissa De La Cruz at South Bay ...... 18.9% 19.3% -2.1% 17.8% +6.2% [email protected] Countywide ...... 16.5% 16.9 -2.4% 16.6% -0.6%

Industrial vacancy rates (2nd qtr.) Downtown/Central ...... 2.2% 2.1% +4.8% 2.4% -8.3% South Bay ...... 3.0% 3.1% -3.2% 2.8% +7.1% PRESENTING SPONSORS: San Gabriel Valley ...... 3.5% 3.5% 0.0% 3.8% -7.9%

%± from TOURISM Latest Previous previous Year %± from month month month ago year ago Hotel occupancy rate (May) ...... 74.7% 73.9% +1.1% 70.7% +5.7% Room rate (May) ...... $147.3 $149.6 -1.5% $139.5 +5.6% Passengers LAX (000’s) (May) ...... 5,476.2 5,028.1 +8.9% 4,956.6 +10.5% PLATINUM SPONSORS: GOLD SPONSORS: Burbank Airport (000’s) (May) ...... 360.3 355.7 +1.3% 383.5 -6.0% Community Bank Moss Adams LLP FOOTNOTES Wedbush Bank 1. Not seasonally adjusted. 5. 20-foot equivalent unit. 2. Music, television, film and commercials quarterly. 6. Apartment and residential combined 3. Through Los Angeles Customs District. 7. Includes refinancings, second mortgages and equity mortgages 4. In thousands of tons. 8. Adjusted for selling days. For sponsorship information, call your BOLDFACE INDICATES UPDATED FIGURES account representative at 323.549.5225 Sources: California State Employment Development Department (employment figures); FilmL.A. Inc. (film permits); U.S. Bankruptcy Court, Central District of Calif., Los Angeles (bankruptcies); Census.gov (exports, imports); City of Los Angeles Airport Department (LAX passenger traffic and air cargo); Burbank-Glendale-Pasadena Airport Authority (Burbank passenger traffic and air cargo); Bureau of Labor Statistics, Los Angeles (Los Angeles consumer price index); Office of Economic Research at California State University, HomeData (home sales, home prices, condo sales, condo prices); F.W. Dodge Division, McGraw-Hill (building contracts); Construction Industry Research Board (housing start permits, building permits); M/PF Research Inc. (apartments); Grubb & Ellis (office and industrial vacancy rates); PKF Consulting (hotel occupancy rate, room rate). – Compiled by Deniz Koray 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

38 LOS ANGELES BUSINESS JOURNAL INVESTMENTS & FINANCE JULY 25, 2011

THE LABJ STOCK INDEX TRACKING LOS ANGELES AREA COMPANIES

WEEKLY TOP GAINERS WEEKLY TOP LOSERS

Scope Industries Peerless Systems Corp. CyberDefender Corp. Avery Dennison Corp. $300 $4.0 $5 $50 July 20, 2011 July 19, 2011 $3.87 $261 4 46 250 3.5 3 42 200 2 38 3.0 July 20, 2010 150 $3.56 1 34 July 20, 2010 July 20, 2010 July 20, 2011 July 20, 2011 July 20, 2010 $0.89 $34.45 $129 $2.82 $32.86 100 2.5 0 30 7/10 9/10 11/10 1/11 3/11 5/11 7/11 7/10 9/10 11/10 1/11 3/11 5/11 7/11 7/10 9/10 11/10 1/11 3/11 5/11 7/11 7/10 9/10 11/10 1/11 3/11 5/11 7/11

TOP TEN LOCAL GAINERS BY PERCENTAGE (with closing prices at least $1) TOP TEN LOCAL LOSERS BY PERCENTAGE (with opening prices at least $1) July 20 July 13 Price 1-Wk 52-Wk July 20 July 13 Price 1-Wk 52-Wk Company Close Close Change % Chg. % Chg. Company Close Close Change % Chg. % Chg. Scope Industries ...... $261.00 $211.00 $50.00 23.7% 102.3% CyberDefender Corp...... $0.89 $1.11 -$0.22 -19.8% -75.0% Peerless Systems Corp...... 3.87 3.55 0.32 9.0% 37.2% Avery Dennison Corp...... 32.86 38.33 -5.47 -14.3% -4.6% Simulations Plus Inc...... 3.23 2.99 0.24 8.0% 29.7% RadNet Inc...... 3.75 4.31 -0.56 -13.0% 87.5% MRV Communications Inc...... 1.45 1.35 0.10 7.4% 13.3% Green Dot Corp...... 29.72 33.79 -4.07 -12.0% NA Sport Chalet Inc...... 2.20 2.05 0.15 7.3% -21.1% Aerovironment Inc...... 31.34 35.29 -3.95 -11.2% 31.6% Bank of Santa Clarita ...... 8.00 7.55 0.45 6.0% 23.1% Farmer Bros Co...... 8.85 9.78 -0.93 -9.5% -40.0% ValueClick Inc...... 18.54 17.50 1.04 5.9% 66.7% RealD Inc...... 18.04 19.78 -1.74 -8.8% -2.0% Capstone Turbine Corp...... 1.58 1.50 0.08 5.3% 62.9% American Apparel Inc...... 1.05 1.13 -0.08 -7.1% -30.0% Hanmi Financial Corp...... 1.25 1.19 0.06 5.0% -4.6% DTS Inc...... 37.02 39.80 -2.78 -7.0% 5.6% Cadiz Inc...... 11.41 10.92 0.49 4.5% -2.8% NCAL Bancorp ...... 7.50 8.00 -0.50 -6.3% -31.8%

MARKET DIARY MARKET INDEXES Hopes that legislative leaders could reach a deal to raise the U.S. debt limit buoyed the markets during the week ended July 20 July 13 Point 1-Wk 52-Wk July 20. The Dow Jones industrial average, also boosted by strong earnings from Apple Inc., registered its biggest Index Close Close Change % Chg. % Chg. one-day gain of this year, but only managed a 0.6 percent increase for the week. The LABJ Index dipped slightly. Sim- Dow Jones Industrial ...... 12,571.91 12,491.61 80.30 0.6% 22.9% ulations Plus Inc., a pharmaceutical software company in Lancaster, was one of the top local gainers after reporting quarterly earnings. Shares rose 8 percent to $3.23. Avery Dennison Corp. took a hit after revising its outlook down- NASDAQ ...... 2,814.23 2,796.92 17.31 0.6% 26.6% ward. Shares of the Pasadena office supply company fell more than 14 percent to $32.86. RadNet Inc., an L.A. opera- S&P 500 ...... 1,325.84 1,317.72 8.12 0.6% 22.4% tor of diagnostic imaging centers, was hurt by an analyst downgrade. Shares dropped 13 percent to $3.75. LABJ Index ...... 126.59 126.91 -0.32 -0.3% 11.4%

MARKET SUMMARY DIVIDEND YIELD MOST ACTIVE STOCKS VOLUME WEEKLY SUMMARY Company Dividend Yield Dividend Weekly Close Walt Disney Co...... 12,652,028 Advances ...... 64 Scope Industries ...... 25.3% $66.00 $261.00 Amgen Inc...... 6,428,661 Declines ...... 102 Stamps.com Inc...... 14.8% $2.00 $13.48 Activision Blizzard Inc...... 5,488,643 Unchanged ...... 14 Anworth Mortgage Asset Corp...... 13.1% $0.95 $7.25 Mattel Inc...... 5,066,872 New Highs ...... 6 PennyMac Mortgage Investment Trust ...... 9.8% $1.61 $16.40 DirecTV ...... 5,013,934 New Lows ...... 12 BreitBurn Energy Partners LP ...... 8.1% $1.60 $19.83

LABJ INDEX

LABJ Index, 52 weeks LABJ Index v. S&P 500, 5 days LABJ Index v. S&P 500, 52 weeks 150 1.0% 30%

0.5 24 SP 500 LABJ Index 0.0 18

120 July 20, 2011 -0.5 12 126.59

-1.0 6

-1.5 0 SP 500 LABJ Index 90 -2.0 -6 J A S O N D J F M A M J J 7/14 7/15 7/18 7/19 7/20 J A S O N D J F M A M J J

Note: The LABJ Stock Index includes all companies on the opposite page and is weighted by market cap.

For more information please contact: Data provided by Bloomberg, a source considered to be reliable. However, the information in this feature may not be complete James Hillman, Managing Director (213) 553-9748 and cannot be guaranteed. The information provided in this feature does not constitute the provision of investment advice. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 INVESTMENTS & FINANCE LOS ANGELES BUSINESS JOURNAL 39

THE LABJ STOCK INDEX TRACKING LOS ANGELES AREA COMPANIES TOP GAINERS TOP LOSERS Company July 20 1-Wk YTD 52-Wk P.E. Mkt. Cap Company July 20 1-Wk YTD 52-Wk P.E. Mkt. Cap Name Ticker Close % Chg % Chg % Chg Ratio (millions) Name Ticker Close % Chg % Chg % Chg Ratio (millions)

AEROSPACE/DEFENSE RadNet Inc. RDNT $3.75 -13.0% 33.0% 87.5% NA $139.9 Aerovironment Inc. AVAV $31.34 -11.2% 16.8% 31.6% 27.0 $691.3 VCA Antech Inc. WOOF 21.02 -3.8% -9.7% -8.2% 16.2 1,816.6 AML Communications Inc. AMLJ NA NA NA NA NA NA INSURANCE Ducommun Inc. DCO 22.38 0.7% 2.8% 27.4% 14.4 235.7 Mercury General Corp. MCY 38.43 -1.8% -10.6% -9.9% 19.6 2,106.6 Flamemaster Corp. FAME 4.25 -1.2% -13.3% 9.5% 9.1 5.3 Unico American Corp. UNAM 10.29 2.3% 12.6% 16.3% 18.7 54.9 Northrop Grumman Corp. NOC 64.98 -2.3% 10.6% 27.2% 10.0 18,008.4 INTERNET Teledyne Technologies Inc. TDY 50.76 1.3% 15.4% 31.2% 15.6 1,864.3 Bidz.com Inc. BIDZ 0.95 -2.3% -21.8% -33.2% NA 18.4 APPAREL Boingo Wireless Inc. WIFI 8.94 -5.2% NA NA NA 296.0 American Apparel Inc. APP 1.05 -7.1% -36.7% -30.0% NA 86.9 CrowdGather Inc. (L) CRWG 0.52 -13.3% -66.9% -42.2% NA 29.6 Cherokee Inc. CHKE 16.78 -0.8% -10.8% -9.9% 18.2 142.7 J2 Global Communications Inc. JCOM 28.19 -2.1% -2.6% 25.3% 13.2 1,296.3 Guess? Inc. GES 39.35 -3.3% -16.8% 19.8% 13.2 3,643.5 ReachLocal Inc. RLOC 19.93 0.4% 0.1% 54.0% NA 581.8 Hot Topic Inc. HOTT 7.88 2.2% 25.3% 53.3% 131.3 352.6 Spark Networks Inc. LOV 3.44 -0.6% 15.8% 8.9% 26.5 70.8 Joe's Jeans Inc. JOEZ 0.90 3.8% -42.1% -53.6% 30.0 58.4 Stamps.com Inc. STMP 13.48 -2.9% 1.7% 52.3% 25.0 193.2 K-Swiss Inc. KSWS 11.39 0.1% -8.7% 7.0% NA 403.0 United Online Inc. UNTD 6.20 -0.6% -6.1% 6.0% 9.8 549.6 People's Liberation Inc. PPLB 0.11 0.0% 0.0% 57.1% NA 4.0 ValueClick Inc. VCLK 18.54 5.9% 15.7% 66.7% 17.5 1,458.8 Skechers U.S.A. Inc. SKX 14.25 -2.3% -28.8% -58.8% 7.6 709.5 MANUFACTURING True Religion Apparel Inc. TRLG 29.71 -0.6% 33.5% 27.6% 15.7 765.8 Avery Dennison Corp. AVY 32.86 -14.3% -22.4% -4.6% 10.9 3,511.9 AUTOMOTIVE/PLASTICS/METALS BioSolar Inc. BSRC 0.11 -14.9% 18.8% -48.2% NA 18.3 Motorcar Parts of America Inc. MPAA 14.44 -6.1% 10.7% 121.5% 13.9 179.6 Cereplast Inc. CERP 4.77 -0.2% 15.2% 51.4% NA 75.2 Reliance Steel & Aluminum Co. RS 49.45 1.6% -3.2% 35.0% 15.3 3,699.9 Dole Food Co Inc. DOLE 13.60 -0.9% 0.7% 32.6% NA 1,204.6 Superior Industries International Inc. SUP 21.82 -1.8% 2.8% 58.1% 10.9 588.4 Ever-Glory International Group Inc. EVK 2.15 0.0% 1.9% -21.5% 4.0 31.7 US Auto Parts Network Inc. PRTS 7.62 -2.9% -9.3% 19.4% 76.2 232.7 Farmer Bros Co. FARM 8.85 -9.5% -50.3% -40.0% NA 143.4 BIOMEDICAL/PHARMACEUTICAL Jakks Pacific Inc. JAKK 17.81 -2.5% -2.3% 26.1% 18.0 484.6 Amgen Inc. AMGN 54.99 -2.9% 0.2% 3.4% 11.5 51,125.9 Mattel Inc. (H) MAT 26.69 -1.3% 5.0% 26.2% 14.1 9,151.7 Arrowhead Research Corp. ARWR 0.52 -6.1% -42.3% -52.6% NA 37.1 OSI Systems Inc. (H) OSIS 43.86 -0.2% 20.6% 57.2% 26.9 835.6 CytRx Corp. CYTR 0.70 -6.7% -30.7% -7.9% NA 76.5 Overhill Farms Inc. OFI 5.42 0.7% -5.9% -1.8% 16.4 85.8 Iris International Inc. IRIS 10.22 -1.4% -0.1% 12.1% 66.4 181.9 Reed's Inc. REED 1.96 -1.5% -2.5% 3.2% NA 21.2 MannKind Corp. MNKD 3.60 -4.5% -55.3% -46.1% NA 470.5 Virco Manufacturing VIRC 2.69 -0.4% 1.9% -0.4% NA 38.2 Obagi Medical Products Inc. OMPI 10.61 -0.2% -8.1% -4.0% 15.4 196.3 MEDIA/LEISURE/ENTERTAINMENT Oxis International Inc. (L) OXIS 0.09 8.4% -36.5% -19.9% NA 17.6 Crown Media Holdings Inc. CRWN 1.85 0.0% -29.4% 5.1% 18.5 665.4 Physicians Formula Holdings Inc. FACE 3.91 0.8% 4.0% 17.8% 195.5 53.1 Daily Journal Corp. DJCO 71.00 -1.5% -1.4% -3.5% 12.4 98.0 Response Genetics Inc. RGDX 2.80 -1.8% 12.9% 2.2% NA 51.4 Demand Media Inc. (L) DMD 11.59 -5.0% NA NA NA 964.4 Staar Surgical Co. STAA 5.42 -0.2% -11.1% -3.0% NA 192.6 Derycz Scientific Inc. DYSC 3.05 3.4% 15.1% 199.0% NA 51.3 COMPUTERS/PERIPHERALS/ELECTRONICS DirecTV DTV 52.48 -0.7% 31.4% 45.3% 19.3 40,293.4 Aura Systems Inc. AUSI 0.74 5.7% -1.3% -3.9% NA 49.3 DreamWorks Animation SKG Inc. DWA 20.06 -5.2% -31.9% -33.9% 4.1 1,693.8 International Rectifier Corp. IRF 26.76 0.8% -9.9% 37.7% 14.1 1,866.8 DTS Inc. DTSI 37.02 -7.0% -24.5% 5.6% 38.6 644.2 Ixia XXIA 10.51 3.2% -37.4% 5.7% 43.8 722.1 Entravision Communications Corp. EVC 1.95 -3.0% -24.1% -14.1% 39.0 166.6 MRV Communications Inc. MRVC 1.45 7.4% -19.0% 13.3% 20.7 228.3 Image Entertainment Inc. DISK 0.16 0.0% 14.3% -20.0% NA 40.9 PC Mall Inc. MALL 7.80 -2.5% 3.0% 124.8% 11.5 96.8 Lions Gate Entertainment Corp. LGF 7.00 2.8% 7.5% 7.2% NA 959.0 Power-One Inc. (L) PWER 7.36 -2.1% -27.8% -20.3% 6.0 762.7 Live Nation Entertainment Inc. LYV 11.22 -4.1% -1.8% 23.8% NA 2,040.5 Qualstar Corp. QBAK 1.85 2.2% 9.5% 11.4% NA 22.7 NeuMedia Inc. MNDLE 0.62 -10.1% 113.8% 77.1% NA 22.4 Semtech Corp. SMTC 25.34 -2.7% 11.9% 46.5% 19.3 1,656.5 Point.360 PTSX 0.66 8.2% -25.0% -60.2% NA 7.1 Taitron Components Inc. TAIT 1.14 2.6% -27.9% 13.9% NA 6.3 Provision Holding Inc. PVHO 0.05 19.0% -16.7% -26.5% NA 2.3 Trio Tech International TRT 3.74 0.8% -10.3% -5.3% 16.3 12.4 Reading International Inc. RDI 4.29 2.6% -15.0% -1.2% NA 101.9 Vitesse Semiconductor Corp. VTSS 3.93 1.0% -6.2% -32.0% 3.9 96.0 RealD Inc. RLD 18.04 -8.8% -30.4% -2.0% NA 977.2 CONSTRUCTION/ENGINEERING Salem Communications Corp. SALM 3.25 -3.6% 2.5% 12.6% 29.5 78.8 Aecom Technology Corp. ACM 26.18 -1.2% -6.4% 9.6% 12.4 3,120.6 Sports Club Inc. (L) SCYL 0.15 -40.0% -40.0% -51.6% NA 3.2 Ameron International Corp. AMN 85.33 0.1% 11.7% 46.9% 100.4 773.9 Stratus Media Group Inc. SMDI 0.54 -1.8% -15.6% -40.0% NA 34.7 Jacobs Engineering Group Inc. JEC 41.64 0.1% -9.2% 10.7% 16.9 5,280.4 Tix Corp. TIXC 1.88 1.1% 51.6% 102.2% 11.1 58.5 KB Home (L) KBH 9.45 -1.0% -29.9% -14.7% NA 727.7 Walt Disney Co. DIS 39.36 -0.5% 4.9% 17.8% 17.2 74,396.5 Ryland Group Inc. RYL 15.92 -2.5% -6.5% -2.8% NA 706.5 MISC. SERVICES Tetra Tech Inc. TTEK 22.31 -0.8% -11.0% 19.4% 16.9 1,390.9 Air Lease Corp. AL 24.88 1.3% NA NA NA 2,493.4 Tutor Perini Corp. TPC 17.54 -2.2% -18.1% 0.0% 9.5 826.5 Cadiz Inc. CDZI 11.41 4.5% -8.3% -2.8% NA 157.8 ENERGY/UTILITIES Electro Rent Corp. ELRC 17.17 0.4% 6.3% 42.1% 20.4 411.7 American States Water Co. AWR 34.74 -1.9% 0.8% -0.2% 16.7 648.3 Enova Systems Inc. ENA 0.80 -5.9% -37.6% -12.1% NA 25.2 BNK Petroleum Inc. BNKPF 4.53 1.1% 32.1% 223.6% NA NA Korn/Ferry International KFY 21.95 -3.1% -5.0% 63.2% 16.9 1,033.5 BreitBurn Energy Partners LP BBEP 19.83 0.7% -1.5% 29.5% 42.2 1,170.8 National Technical Systems Inc. NTSC 5.93 -6.2% -26.5% -27.7% 59.3 60.8 Capstone Turbine Corp. CPST 1.58 5.3% 64.6% 62.9% NA 409.7 NetSol Technologies Inc. NTWK 1.52 -5.9% -19.0% 82.6% 8.4 83.9 Edison International EIX 38.31 -0.5% -0.8% 16.1% 11.7 12,481.8 On Assignment Inc. ASGN 9.61 -4.8% 17.9% 121.4% 68.6 355.2 Occidental Petroleum Corp. OXY 106.19 3.1% 8.2% 31.2% 16.9 86,319.2 Rentech Inc. RTK 1.03 0.0% -15.6% 7.6% NA 229.5 U.S. China Mining Group Inc. SGZH 3.05 1.7% -52.0% -38.5% 3.2 57.7 Scope Industries (H) SCPJ 261.00 23.7% 102.3% 102.3% 80.8 260.7 FINANCIAL SERVICES UTi Worldwide Inc. UTIW 17.10 -4.8% -19.3% 26.8% 24.4 1,755.3 1st Century Bancshares Inc. FCTY 3.76 4.4% -8.3% 10.6% NA 35.0 REAL ESTATE American Business Bank AMBZ 23.75 1.1% 6.6% 13.6% 11.2 103.8 Alexandria Real Estate Equities Inc. (H) ARE 83.80 4.2% 14.4% 23.4% 27.9 5,175.8 Anworth Mortgage Asset Corp. ANH 7.25 -0.8% 3.6% -0.3% 8.2 917.4 CB Richard Ellis Group Inc. CBG 23.26 -1.0% 13.6% 65.1% 30.2 7,559.2 Bank of Santa Clarita BSCA 8.00 6.0% 15.1% 23.1% 40.0 17.6 Douglas Emmett Inc. DEI 20.06 1.6% 20.8% 38.2% NA 2,495.9 Beach Business Bank BBBC 5.75 -4.2% 15.0% 12.7% NA 23.3 HCP Inc. HCP 37.65 0.3% 2.3% 8.5% 34.9 15,286.9 Broadway Financial Corp. BYFC 2.23 0.0% -8.2% -7.1% NA 3.9 Hudson Pacific Properties Inc. HPP 15.45 -1.6% 2.7% -3.5% NA 518.6 California United Bank CUNB 12.25 0.0% -0.8% 6.5% NA 60.5 Intergroup Corp. INTG 24.43 -4.0% 13.0% 60.2% 6.4 58.5 Cathay General Bancorp CATY 16.02 -2.6% -4.1% 46.2% 16.7 1,259.7 Kennedy-Wilson Holdings Inc. KW 12.21 -1.1% 22.2% 24.2% NA 549.2 Center Financial Corp. CLFC 6.43 1.1% -15.2% 23.4% 14.3 256.6 Kilroy Realty Corp. KRC 40.72 3.0% 11.7% 33.6% 271.5 2,380.4 City National Corp. CYN 53.68 -1.1% -12.5% 2.8% 18.8 2,854.6 LTC Properties Inc. LTC 27.84 -0.4% -0.9% 12.4% 25.1 844.5 Colony Financial Inc. CLNY 17.99 -0.6% -10.1% 0.4% 12.3 588.9 Macerich Co. MAC 54.67 1.5% 15.4% 40.0% 202.5 7,156.3 East West Bancorp Inc. EWBC 19.67 -1.9% 0.6% 16.6% 13.6 2,925.3 Meruelo Maddux Properties Inc. MMPIQ 0.48 0.4% 71.4% 182.4% NA 42.3 Farmers & Merchants Bank FMBL 4262.00 0.0% 7.4% 5.3% 9.7 558.0 MPG Office Trust Inc. MPG 3.69 3.7% 34.2% 32.7% NA 181.0 First California Financial Group Inc. FCAL 3.75 -3.1% 33.9% 48.2% NA 106.6 Pacific Office Properties Trust Inc. PCE 2.00 0.0% -52.0% -60.4% NA 38.7 General Finance Corp. GFN 2.87 -5.0% 45.0% 141.2% NA 63.2 Portsmouth Square Inc. PRSI 24.00 -4.0% 4.3% 9.1% 6.3 17.6 Great American Group Inc. (L) GAMR 0.22 -29.0% -55.1% -82.4% NA 6.8 PS Business Parks Inc. PSB 58.29 1.9% 4.6% 3.0% 32.9 1,440.6 Green Dot Corp. (L) GDOT 29.72 -12.0% -47.6% NA 31.0 1,244.6 Public Storage (H) PSA 121.04 2.3% 19.3% 28.1% 42.8 21,667.5 Hanmi Financial Corp. HAFC 1.25 5.0% 8.7% -4.6% NA 189.1 Santa Fe Financial Corp. SFEF 14.75 0.0% 11.7% 22.9% 163.9 18.3 Kaiser Federal Financial Group Inc. KFFG 12.44 1.3% 7.4% 0.3% 14.1 118.9 Thomas Properties Group Inc. TPGI 3.27 -5.2% -22.5% -0.6% NA 166.5 Malaga Financial Corp. MLGF 14.85 -0.3% -2.6% -7.2% 8.1 86.1 RESTAURANTS/RETAIL/GROCERY Manhattan Bancorp MNHN 3.65 -3.9% -29.1% -18.9% NA 14.6 99 Cents Only Stores NDN 20.27 0.1% 27.2% 24.1% 18.9 1,427.7 Mission Valley Bancorp MVLY 4.03 0.8% 7.5% -2.9% NA 18.2 Arden Group Inc. ARDNA 94.37 1.5% 14.4% 7.7% 16.0 289.8 Nara Bancorp Inc. NARA 8.28 1.5% -16.0% 16.3% NA 314.7 Big 5 Sporting Goods Corp. BGFV 8.50 -4.2% -44.3% -33.9% 9.3 186.9 NCAL Bancorp (L) NCAL 7.50 -6.3% -25.0% -31.8% NA 17.7 Cheesecake Factory Inc. CAKE 32.69 -2.2% 6.6% 29.3% 21.9 1,887.9 Pacific Commerce Bank PFCI 3.25 0.0% 8.3% -7.1% NA 7.9 DineEquity Inc. DIN 54.92 0.9% 11.2% 61.0% 32.9 1,017.4 PacWest Bancorp PACW 20.67 1.6% -3.3% 3.6% 40.5 733.0 PennyMac Mortgage Investment Trust (L) PMT 16.40 -1.5% -9.6% -0.1% 9.6 455.3 Grill Concepts Inc. GLLC 0.28 -6.7% -3.4% -20.0% NA 2.5 Preferred Bank PFBC 7.45 -2.0% -15.3% -19.0% NA 98.3 Jerry's Famous Deli Inc. DELI 1.50 0.0% -57.1% -52.4% 4.8 7.0 Saehan Bancorp SAEB 0.25 0.0% -35.9% -64.8% NA 47.3 Sport Chalet Inc. SPCHB 2.20 7.3% -41.2% -21.1% NA 29.4 SearchMedia Holdings Ltd. IDI 1.99 3.6% -36.0% -18.1% NA 41.5 SOFTWARE Wilshire Bancorp Inc. WIBC 3.12 -4.0% -59.1% -55.2% NA 205.4 Activision Blizzard Inc. ATVI 11.90 0.0% -4.3% 3.8% 19.5 13,615.6 HEALTH CARE Cornerstone OnDemand Inc. CSOD 18.05 -4.6% NA NA NA 858.1 Health Net Inc. HNT 30.43 -1.9% 11.5% 24.3% 12.5 2,753.7 CyberDefender Corp. (L) CYDE 0.89 -19.8% -70.9% -75.0% NA 25.0 Herbalife Ltd. HLF 57.75 -1.3% 68.9% 135.0% 22.1 6,886.0 Guidance Software Inc. GUID 8.46 3.0% 17.7% 70.9% NA 214.2 Imaging3 Inc. IMGG 0.08 -1.2% -46.1% -67.0% NA 31.4 Peerless Systems Corp. (H) PRLS 3.87 9.0% 22.9% 37.2% 20.4 13.4 IPC The Hospitalist Co Inc. IPCM 49.18 -1.3% 26.1% 100.7% 31.1 805.0 Simulations Plus Inc. SLP 3.23 8.0% 20.1% 29.7% 17.9 50.2 Molina Healthcare Inc. MOH 26.48 -4.1% 42.6% 40.1% 18.4 1,214.3 THQ Inc. (L) THQI 3.21 -5.6% -47.0% -27.4% NA 219.3

NOTES ON STOCK TABLES (H) Stock hit new 52-week high (L) Stock hit new 52-week low (S) Stock split during week 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

40 LOS ANGELES BUSINESS JOURNAL REAL ESTATE JULY 25, 2011

June’s major commercial real estate transactions in Los Angeles County, DONE DEALS JUNE 2011 including leases and sales.

OFFICE SALES

SF/ Year Sale Price Property Address Property Name Bldg. Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 100 W. Walnut St. Parsons Campus 932,000 Morgan Stanley Real Estate Kevin Shannon, Parsons Corp. $320 Pasadena (3 props) A CB Richard Ellis 315 W. Ninth St., Coast Savings Building 139,697 1926 ONNI Group of Companies David Louie, LaeRoc Partners Inc. David Louie, 16.5 Los Angeles B CB Richard Ellis CB Richard Ellis 600 N. Rosemead Blvd., 41,585 1966 Zhongkun Group Inc Jeanne Hai, RE/MAX Engemann Asset Management Duane Cody, Realty 10.3 Pasadena B Tri-City Realty Advisory Group 1030 E. Green St., Cheesewright Building 30,532 1929 7.24 Pasadena C 501 W. Garvey Ave., 24,706 2005 6.13 Monterey Park B 505 S Virgil Ave., 40,846 1963 4.67 Los Angeles B 9401 Corbin Ave., 115,200 1981 Oakfield Realty Partners LLC Alliance Commercial Partners LLC 4.50 Northridge B 1320 Abbot Kinney Blvd., 4,208 2002 Eliot Angle, Prudential Elaine Spierer Tony Yollin, 3.80 Venice C California Realty Yollin Properties 22837 Ventura Blvd., Century Building 18,086 1984 Kevin Levine, 3.28 Woodland Hills C Panorex Commercial 217 E. Alameda Ave., Alameda 2 21,640 1986 Swick Family Trust Michael Neil, Coldwell Aziz Molai Michael Neil, 3.25 Burbank B Banker Commercial Panorex Commercial North County

INDUSTRIAL SALES SF/ Year Sale Price Property Address Property Name Bldg. Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 12024 Center St. American Self Storage 143,655 Corporate Property A-American Self Storage Charles LeClaire, $86.0 (3 props) C Associates 17 - Global Inc. Management Co. Inc. Marcus & Millichap 21112 S. Figueroa St., Building W10 92,282 2002 Centric Parts Inc. Mark Watley, Watman Power Link Logistics Michael Cassidy, Sperry 11.8 Carson B Commercial and Van Ness Rich Industrial Properties Investment Real Estate 19161 E. Walnut Dr. N, 131,420 1982 J.P. Original Corp. Adam Dzierzynski, Unilever United States Inc. Erik Larson, Cushman 9.05 City of Industry C Lee & Associates & Wakefield 12930-12950 Alondra Blvd, Cerritos Industrial Park 74,236 1978 Displays By Jack Shan Lee, DAUM Bechler Corp Christopher Sheehan, 6.05 Cerritos C Commercial Real Colliers International Estate Services 2828 E .12th St., 101,398 1941 Regency Textiles of California Inc. Paul Sablock, Cenveo Inc. Paul Sablock, 5.00 Los Angeles C Jones Lang LaSalle Jones Lang LaSalle 2937 E. Maria St., 75,040 1969 Oceanaire Sportswear Steve Bohannon, Maria Reyes Properties Dennis Ingram, 4.88 Rancho Dominguez B Cushman & Wakefield Grubb & Ellis 1935 Puddingstone Drive, San Polo La Verne 41,402 2004 Jon & Melissa Becker Family Trust Silvers & Hall LLC 4.70 La Verne Business Park B 16205 Distribution Way, Panamasia 64,318 1973 Manickarajah Jayakumar Doug Matthews, Bank of America Corp. Luke McDaniel, Voit 4.33 Cerritos C Grubb & Ellis Real Estate Services

RETAIL SALES SF/ Year Sale Price Property Address Property Name Bldg. Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 1493 N. Montebello Blvd. Applebee's Restaurant 22,690 DineEquity Inc. $296 (2 props) 1421-1425 Fifth St. Multi-property sale 16,585 Mark S. Romney T.C. Macker, Coldwell Banker 10.5 Santa Monica (3 props) Commercial Westmac 21815 Hawthorne Blvd., Coco's Bakery Restaurant 10,720 1969 Fresh & Easy Neighborhood Brent Cunningham, Kinoshita Family Trust Craig Lessard, 7.00 Torrance Market Inc. Highland Partners Woodspear Properties 1085 Gayley Ave., 12,355 1945 Beck John C. & J C Trust 5.20 Los Angeles 14652-14658 Ventura Blvd., 11,458 1952 Row Zedeh Brandon Michaels, Parsa Properties Inc. Brandon Michaels, 3.90 Sherman Oaks Marcus & Millichap Marcus & Millichap 13003 Van Nuys Blvd., 13003 Van Nuys 15,164 2003 Stuart Scott, 3.45 Pacoima DAUM Commercial Real Estate Services 1821 Manhattan Beach Blvd., 10,160 1957 3.43 Manhattan Beach 28326 S. Western Ave., 8,460 1976 All Pets Veterinary Hospital Robert & Pamela Moore Dan Riley, 2.80 Rancho Palos Verdes CB Richard Ellis 5570 Melrose Ave., 2,484 1959 Garo Kazazian Allen Rosenstein 2.50 Los Angeles 12144 Magnolia Blvd., 8,372 1947 2.26 North Hollywood 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 REAL ESTATE LOS ANGELES BUSINESS JOURNAL 41

MULTI-FAMILY SALES

SF/ Year Sale Price Property Address Property Name Bldg. Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 6650 Franklin Ave., Montecito Apartments 71,450 1931 Thomas Safran & Associates Thomas Safran & Associates $11.2 Los Angeles 1430 Cherry Ave., 6,019 1923 Western Mutual Group Inc. East West Bancorp Inc. Andrew Awaida, 7.50 Long Beach RE/MAX Optima 423 W. Eighth St., 32,610 1906 Kevin Lee, Coldwell Pacific Holdings Inc. David Meir, 6.85 Los Angeles Banker George Realty Keller Williams 922 S. Barrington Ave., 28,416 1969 Roberts Cos. Timothy Joseph, Alexander Family Trust Timothy Joseph, 6.54 Brentwood Christophe Choo Christophe Choo Real Estate Real Estate 1010 Lagoon Ave. Lagoon Terrace Apartments 47,271 1985 KFG Investment Co. Doug Rodermund, RTI Properties Inc. Doug Rodermund, 6.42 Wilmington Morgan-Skenderian Morgan-Skenderian Investment RE Group Investment RE Group 110 E. Baseline Road, 39,539 1979 Daniel Rudd Raj Dewan, Elaine Klock Bruce Hanes, Hanes 5.70 San Dimas Marcus & Millichap Investment Realty 23122 Samuel St. 29,422 5.30 Torrance 813-817 Wilcox Ave., 21,858 2004 Michel Hibbert, Charles 813 Wilcox LLC David Meir, 4.42 Los Angeles Dunn Co. Inc. Keller Williams 1156 Justin Ave. Multi-property sale 18,566 Rodney Delson, NAI Capital Inc. Rodney Delson, NAI Capital Inc. 4.03 Glendale (2 props) 1132 E. San Antonio Drive, 33,980 1948 3.70 Long Beach 2448 N. Eastern Ave., 30,202 1987 Positive Investment Inc. Helene L, Alex W.L & 3.56 Los Angeles Ada O. Wong Trust 8762 Langdon Ave., 26,486 1985 3.41 North Hills

OFFICE LEASES Lease Property Address SF Property Name Tenant Tenant Broker Owner Owner Broker

333 S. Hope St., 174,944 Bank of America Plaza Bank of America Brookfield Office Properties Inc. John Barganski Los Angeles 2 N. Lake Ave., 5,614 Russ Reid Damon Feldmeth, CB Richard Ellis Pasadena 11601 Wilshire Blvd., 19,785 Wells Fargo Center Wells Fargo Bank Steve Walbridge, Studley Charlie Smith, Equity Office Management Los Angeles 12200 W. Olympic Blvd., 11,385 Hulu Hunt Barnett, LA Realty Partners Los Angeles 1055 E. Colorado Blvd., 11,109 Evolution Robotics Lee Polster, Travers Realty Patrick Church, CB Richard Ellis Pasadena 2850 Ocean Park Blvd., 10,632 EdgeCast Networks Inc. David Toomey, CresaPartners Deron White, CB Richard Ellis Santa Monica 6100 Wilshire Blvd., 8,800 New Wilshire Lippin Group Michael Arnold, Peter Best, LA Realty Partners Los Angeles Newmark Knight Frank 505 N. Brand Blvd., 4,348 Glenwood Financial Group Inc. Patrick Church, CB Richard Ellis Glendale 505 N. Brand Blvd., 4,317 Valley Emergency Physicians Brian Davies, CresaPartners Patrick Church, CB Richard Ellis Glendale 11999 San Vicente Blvd., 4,102 Brentwood Saltair American Bonus Group Inc. Jerry Hess, Cushman & Wakefield Los Angeles

INDUSTRIAL LEASES Lease Property Address SF Property Name Tenant Tenant Broker Owner Owner Broker

19161 E. Walnut Drive 131,420 J.P. Original Corp. City of Industry 1000 E. 223rd St., Building 105, 104,267 Ozburn-Hessey Logistics LLC Lance Ryan, Watson Land Co. Carson 21112 S. Figueroa St. 92,282 Building W10, Carson 2805 Columbia St. 91,906 Rapiscan Systems Jerry Gillman, Colliers International Torrance 2937 E. Maria St., 75,040 Oceanaire Sportswear Rancho Dominguez 490-500 N. Oak St., 64,000 Signature Eyewear Inc. Ronald Rader, Klabin Co. Inglewood 3416-3422 Garfield Ave. 51,253 ENL Global John Privett, CB Richard Ellis Commerce 2935-2937 N. Ontario St. 36,480 Global Entertainment Industries Burbank 2700 S. Tanager Ave. 35,404 Southern California Michael Meraz, Richard Abdulian, Grubb & Ellis City of Commerce Soap Co. Inc. Magnum Properties

Reproduced with the permission of CoStar Realty Information, Note: Sales ranked by value. Leases ranked by square footage Inc. For more information go to www.costar.com. unless information not available. SF = square footage 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

42 LOS ANGELES BUSINESS JOURNAL REAL ESTATE JULY 25, 2011 Downtown L.A. Makes Space for More Offices DEVELOPMENT: L&R, which is downtown’s largest parking Zanetos said. L&R lot and garage owner with 72 properties, Monthly asking rates begin at $2.50 per plans first new project bought the building for $18 million in 2004 but square foot. No tenant has been signed for the had not occupied it. It was acquired from 31,000-square-foot ground floor, which L&R since opening of L.A. Live. Union Bank of California, which used it for is hoping will be taken by one large user. administrative offices. “Restaurant space is definitely an option. ORK got under way this month to L&R is moving its headquarters into 10,000 We’d love to talk to all grocery stores,” Zane- transform a vacant, dilapidated con- square feet at the top of the building, where the tos said. W crete bank building near L.A. Live design is intentionally reminiscent of a parking An L&R executive was not made available into a state-of-the-art office and retail complex structure, with thick steel support beams and for comment. with glass walls. corrugated metal on the walls. L&R Group of Cos. is punching out the No tenants have inked lease deals yet. But Insurance Deal five-story building’s drab walls and replacing Rendering: 845 S. Figueroa St. building. building broker John Zanetos, of West L.A.’s In more downtown activity, L.A.’s largest them with full-length glass plates. It’s also CB Richard Ellis Group Inc., said that it insurance brokerage, Aon Insurance, will redesigning the ground floor for shops and The 845 S. Figueroa St. building will have could be attractive to a variety of businesses. likely stay put on “Insurance Row,” though it restaurants. nearly that much: 140,000 square feet on four “I can see this building attracting creative will shrink in size. The last time new office space became floors expected to come on line in the first users because of the boutique nature of the Last week, the Chicago company was in available downtown was three years ago when quarter of next year. The project is being building, but at the same time I can see it negotiations to close on a 77,000-square-foot the L.A. Live project opened with roughly designed by LeanArch, an architecture firm attracting a multifloor financial services or tra- lease renewal – but that means it would give back 150,000 square feet. near downtown. ditional business that occupies downtown,” two full floors, or about 32 percent of its space. The new 15-year lease gives the company four floors at the 62-story Aon Center, 707 Wilshire Blvd., and allows it to keep its building- top signage. Financial terms were not disclosed.

REAL ESTATE JACQUELYN RYAN

The firm is among many insurance companies in the area, including American Interna- tional Group Inc. Just a few months ago, Zurich North America announced it was moving to downtown from Glendale. Aon’s downsizing can in part be attributed to a restructuring of the company, which last year merged with human resource management consulting firm Hewitt Associates. Aon announced 1,500 layoffs, and the closing of various offices and operations over the next three years. It expects to take a $325 million charge for the restructuring. Landlord Beacon Capital Partners is represented by Lincoln Property Co. Vice Presi- dent Andy Fishburn. Aon is represented by Transwestern Executive Managing Director Jonathan Larsen.

Movie Premiere Regency Theatres has taken over the multiplex at Van Nuys’ Plant shopping center from Mann Theatres. The 10-year, 72,200-square-foot lease, valued at $17 million, gives Regency, a family- GOLD owned and -operated company in Calabasas, Best Newspaper, Large Tabloids three theaters in the San Fernando Valley and seven Los Angeles County-wide. Mann operated the 16-screen theater since it opened in 1999 but the struggling company has been shedding properties. The is the second deal Regency has cut with property owner Decron Properties Corp., an L.A. real estate investment firm with a $1.3 billion portfolio. In 2007, Regency signed on to Your Business Journal manage a multiplex in Huntington Beach. “I believe the sales will grow dramatically under Regency. I think that they will cater better to the Latino community with many more is still No.1 films with Spanish subtitles.” said Decron Chief Executive David Nagel. Regency President Lydon Golin said his company plans to show Latino-oriented and This year the Los Angeles Business Journal was named Best Large Tabloid Spanish-subtitled films in the complex, which by the Alliance of Area Business Publications for the third year in a row. is in a heavily Latino community. It also will be making cosmetic upgrades to the theaters and has already added some of its signature D- Box seats, which shake and move along with on-screen action. Golin said there were no plans to take over other Mann operations but that his company is exploring expansion opportunities.

Staff reporter Jacquelyn Ryan can be reached at [email protected] or (323) 549- 5225, ext. 228. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 43 Investment Properties For Sale COMMERCIAL INDUSTRIAL

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44 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011 BUSINESS MARKETPLACE FINANCIAL SERVICES BUSINESS SERVICES

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JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 45 BUSINESS MARKETPLACE REAL ESTATE SERVICES

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46 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011 BUSINESS MARKETPLACE AIRCRAFT CHARTER LEGAL SERVICES

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JULY 25, 2011 LOS ANGELES BUSINESS JOURNAL 47

‘Elimination of the business tax would ‘There’s a built-in incentive for the city be a strong statement of support for to push companies into the highest business growth and investment.’ tax categories possible.’ GARY TOEBBEN, Los Angeles Area Chamber of Commerce LLOYD GREIF, local investment banker Government: Mayor Backs Ax of Gross Receipts Tax “When he jumped on eliminating the busi- company has in the city. Several other cities, “There’s a built-in incentive for the city to Continued from page 1 ness tax, I looked around the room and peo- such as Calabasas and Glendale, don’t have push companies into the highest tax categories ple’s mouths dropped open,” said VICA Chief any business taxes. possible,” he said. recommend business tax reform to the City Executive Stuart Waldman. “We asked our- The gross receipts tax has been the subject Council. A key factor in the recommendations selves, ‘Did he really say what we think we Reform options of controversy in recent years because the city is a finding in a report that shows that previous heard him say? Yes, he really did.’” Killing the tax won’t be easy. Budget hawk reclassified many Internet businesses into the business tax reductions have led to increased City Council President Eric Garcetti has council members, particularly Bernard Parks, have highest bracket. Some fought the higher rates city revenue because more businesses formed said he is open to the idea of killing the gross been reluctant to support past business tax reduc- and eventually got a lower classification, but at and stayed in the city. The receipts tax. So with Vil- tions because of the immediate loss in revenues to least one company – LegalZoom.com Inc., an report projected more city laraigosa’s support, the idea the city amid continued projected deficits. Internet legal documents company – moved to revenue and job creation if LABJ POLL may take hold. But supporters of business tax reductions Glendale and expanded in Texas. the gross receipts tax were What should the City Council do “Los Angeles cannot say the draft report shows that killing the tax reduced or killed. about business tax reform? continue to be the most will bring in more revenue. City officials had Vote expected The committee, led by www.labusinessjournal.com expensive city in the region ordered the report months ago to analyze Greif said committee members will meet local investment banker when it comes to business reform options put forward earlier this year by Aug. 3, and are scheduled to send proposals to Lloyd Greif, is scheduled to taxes,” Garcetti told the the city-appointed Business Tax Advisory the City Council and Villaraigosa. make its recommendations to the City Council Business Journal last week. Committee. Business and economic development con- next week, and is expected to call for major Local business leaders greeted the prospect The draft report was prepared by Charles sultant Larry Kosmont said that the city would reductions or elimination of the tax for most enthusiastically. Swanson, a professor at USC’s Marshall achieve the biggest bang for the buck by businesses in the city. “We’re very excited,” Waldman said. School of Business. Swanson concludes that reducing the tax rates of the top four cate- The gross receipts tax brings in an estimat- “Having the mayor on board means that some- previous business tax cuts resulted in compa- gories, which range from storage companies to ed $425 million annually, about 10 percent of thing is going to get done and Los Angeles nies expanding operations in the city. That in professional services companies. Kosmont the city’s general fund budget. If that tax is will finally be in the game when it comes to turn led to increased revenues from sales, utili- compares tax rates of hundreds of cities across eliminated and more businesses start up and attracting and retaining businesses.” ty and property taxes. the nation as part of an annual Cost of Doing stay in the city as a result, the city will get Los Angeles Area Chamber of Commerce The report also concludes that reducing the Business Survey he co-authors. increased revenue from utility, property and Chief Executive Gary Toebben said that if a time rates of the highest business tax categories “These four categories are where most of the sales taxes, according to the draft report. line is established for eliminating the tax, busi- could generate tens of thousands of additional fast-growing service businesses are,” Kosmont Business leaders and elected officials agree ness investment in the city will pick up. jobs in the city and bring in up to $100 million said. “Just getting these categories more in line that the tax would be eliminated in stages, “Elimination of the business tax would be a in net new revenues over time. with other cities would go a long way towards allowing the city to avoid a sudden steep rev- strong statement of support for business Scrapping the gross receipts tax for most making Los Angeles more competitive.” enue loss. growth and investment,” Toebben said. businesses would eliminate $380 million in But Kosmont said the current gross receipts Businesses have long complained that the L.A.’s gross receipts tax has nine brackets. annual business tax revenue to the city. But it tax system is riddled with inequities and highest tax rates are five to 10 times the tax The lowest rate, $1.01 for each $1,000 in could later generate up to $640 million in rev- requires constant auditing to ensure compli- levels of other nearby cities and push compa- receipts, applies to telephone and multimedia enue from other tax sources as businesses ance. A simpler system based on employee nies to leave or expand outside the city. Seven companies. The highest, at $5.07 for each expand or locate in the city, the report says. counts that’s used in many other cities in the years ago, the city enacted a 15 percent reduc- $1,000 in receipts, applies to law firms and The draft report analyzed options that the county would benefit both employers and the tion in the business tax. Business groups said it other professional service companies. panel proposed, including deep cuts to the city of Los Angeles, he said. did not go far enough. Los Angeles has the highest business tax highest categories, across-the-board cuts, more However, any entirely new system for busi- Villaraigosa’s predecessors, Richard Riordan rates in Los Angeles County. Only Santa Mon- exemptions, and tax relief for new business ness taxes would be sure to generate winners and James Hahn, each favored reductions in the ica comes close, with its highest bracket at and job creation. and losers, likely resulting in fierce fights. business tax or exemptions for certain types of $5.03 for each $1,000 in gross receipts. Culver But the most radical reform proposal calls “It may be at the end of the day, the city companies, such as new or small businesses. City’s highest rate is $3 for each $1,000 in for simply eliminating the gross receipts tax decides to keep the business tax, but at sharply Villaraigosa signaled his shift in a speech to receipts; all other county cities with gross entirely for the vast majority of businesses in reduced levels,” Toebben said. “Whatever the the Valley Industry and Commerce Associa- receipts taxes charge less than $2 in their high- the city. Greif said the tax rates are inherently case, what we’ve seen with the announcements tion. VICA, a Sherman Oaks non-profit that est brackets. Several cities – including Long unfair because the city has kept manufacturing of the last week is a significant shifting of the promotes area business interests, has for years Beach, Burbank and Torrance – base their taxes low and has pushed companies in newer goal posts, and that’s being welcomed in the called for axing the business tax. business taxes on the number of employees the industries into higher classifications. business community.” Non-Profit: Business Bureau Battles L.A. Chapter president, Bill Mitchell, resigned after the the organization could give precise letter mittee holding last week’s expulsion hearing, Continued from page 1 scandal, but then rescinded his resignation in grades to millions of businesses. The national and, in fact, recommended the L.A. branch be February, vowing to fight a takeover attempt Council liked the idea and threatened several put on probation and not expelled. However, the auditors and forward a recommendation to the by the national office. However, he resigned local branches if they resisted the new system. recommendation does not have to be followed. council’s operating committee, which will make again in April, reportedly for health reasons. However, after the scandal broke, those Probation would include severing all ties a decision that can be appealed internally. The branch has also shown a willingness to concerns seemed justified. A lawsuit filed with Mitchell the former president. The local The fight is a result of a scandal last year take the fight into court, filing its failed request against the L.A. branch over the grading sys- branch also would have to change its gover- that began after investigative news reports in Los Angeles Superior Court seeking a pre- tem resulted in the disclosure that the branch nance structure to include more oversight, pro- exposed a pay-for-play scheme in the L.A. liminary injunction to stop last week’s hearing. had employed more than 30 sales agents who vide board members with training regarding branch, which grades local businesses on their “If the termination hearing proceeds in Vir- earned a 45 percent commission on first-year ethical responsibilities and submit to further trustworthiness. The reports found that the ginia, Southland could lose its ability to oper- memberships. That seemed to be incentive to evaluations. branch issued higher marks to those businesses ate under the Better Business Bureau mark,” pressure businesses to buy memberships if Linda Sherry, a spokeswoman for San paying membership fees. News cameras the lawsuit stated. they had low grades. Francisco consumer group Consumer Action, caught telemarketers telling businesses that The council successfully argued in court fil- Since the scandal, the L.A. branch has said it would be difficult to rebuild the local their grades would be raised from a “C” to an ings that the L.A. branch’s legal challenge was made efforts to reform the grading process. branch’s reputation despite any reforms. “A-plus” if they paid a $395 membership fee. premature as no final decision would be made. However, according to court documents sub- “The BBB is a very well-respected organiza- A group of local businesses even managed The L.A. branch and its attorneys declined mitted by the national organization in response tion nationwide, but that kind of thing is a black to get high grades for nonexistent member to comment, citing pending litigation. to the injunction request, the L.A. branch is eye and it’s hard to live down,” she said. “People companies they had created with names such still not up to standards despite making “signif- start to talk about it and not trust the ratings.” as “Hamas,” named after the Middle Eastern A new system icant progress.” Terri Hartman, a manager at Liz’s Antique terrorist organization. The letter grading system that led to so much Notably, auditors said the local branch still Hardware Store in Beverly Hills whose grade In response, the council decided to hold last trouble was only implemented fairly recently. did not consistently ensure that its accredited from the local Better Business Bureau was week’s expulsion hearing. It also announced For decades, chapters graded businesses as either businesses met Better Business Bureau stan- bumped up after paying a $395 membership reforms, including prohibiting local chapters “satisfactory” or “unsatisfactory.” dards, and still had issues handling and reporting fee, said neither expulsion nor any purported nationwide from raising the letter grades of But in 2009, the L.A. branch led a national consumer complaints about businesses. They internal reforms would change her opinion. members that joined after they had been rated. push to implement the new letter-grade sys- also said it needed to implement a way of better “It’s closing the barn door after the horse is But the L.A. branch, by far the group’s tem, which it designed and had been using reviewing consumer complaints about mislead- out,” she said. “The national office assumes largest with five offices and 100 employees, locally for years. It was successful despite ing or deceptive advertisements by businesses. the ultimate responsibility for what was going has made it clear it won’t go quietly. Its former skepticism from other local chapters over how The auditors submitted a report to the com- on. I think the whole thing is kind of a fraud.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

48 LOS ANGELES BUSINESS JOURNAL JULY 25, 2011

‘We’re committed to getting this project done ‘I believe the community has been loud and clear 110 percent ... We think this is the perfect place in their direction that we would like to retain and we need to see what logistically is feasible.’ what we have left of a village-type atmosphere.’ MARK MULCAHY, iPic MARILYN GALLUP, Beverly Hills Municipal League

RINGO H.W. CHIU Screened Out: Proposed location for iPics theater and mixed-use project at North Canon Drive in Beverly Hills, left; rendering of project, right. Development: High-End Theater to Scale Down?

latest big-budget Hollywood release, they need a lot of people into the city. If I were the prop- board and large art deco theater sign on the Continued from page 1 to head to Century City or the Beverly Center erty owner, I would want to make as much exterior of the building, both of which the mall in Los Angeles. money as I could … but there were some commission rejected outright.) scaled down and, if not, abandoned. IPic, founded in 2006, operates luxury cine- issues we had with the original design,” said However, iPic is committed to the rooftop The project site is a parking lot at 257 N. mas in eight locations, including Pasadena; Planning Commission Chairman Dan Yukel- bar. Pasadena does not have such an amenity, Canon Drive that is only steps from some of Scottsdale, Ariz.; and Austin, Texas. The son, who told the Business Journal he favors a but the company estimates attendance is boost- the city’s prime destinations, including Spago, Pasadena location, which opened in December smaller project. ed by about 40 percent at its theaters with them. Mastro’s Steakhouse and the Montage Bev- 2009, offers plush leather recliner seats, a “Some people show up for the movie and erly Hills. restaurant that serves dishes such as filet Opposition don’t make it into the theater. They hang out at At the July 14 Planning Commission meet- mignon, and a full bar with a selection of inter- A compromise may be hard to reach. the bar,” Mulcahy said. ing, Gallup and other opponents spoke out national and craft beers. The seats have small Montage owner Jay Newman appeared What’s more, iPic is leasing the property against the proposal, and the commission trays and a call button so food and drink can be before the Planning Commission to say the from local landowner Marc Bohbot, who has asked iPic to come back with a smaller project ordered during showings. hotel would support a theater at the location, demanded the project have retail. Bohbot was in September. The Beverly Hills theater would have all that but only if it was near 45 feet tall. in France last week and declined comment Mark Mulcahy, vice president of marketing but would pile on luxury. For example, a com- At its current height, northern views from through a spokesman. However, spokesman for iPic, said the company would try to do so. pany representative told planning commission- the Montage’s hotel rooms and condos would Michael Bitton reiterated that Bohbot did not “We’re committed to getting this project ers that iPic spent $9 for blankets in Pasadena be almost entirely blocked by the theater, only want to proceed without retail. done 110 percent, so we are going to regroup but is eyeing $70 blankets for Beverly Hills. yards away. (There has been speculation that Bohbot as a team and go through what our options Mulcahy said that the Friday and Saturday “We think a theater use is terrific use in this may want to develop a store for his wife, are,” he said. “We think this is the perfect night shows are regularly sold-out in Pasadena, location,” Newman said during the meeting. Michele Bohbot, who owns the fashion line place and we need to see what logistically is indicating the region could support another “(But) views matter for (our guests) and for Bisou Bisou. The line of women’s contempo- feasible.” such theater. our residents.” rary clothing is sold at JC Penney and has no “Let me tell you, there are a lot of peo- Gallup said her Beverly Hills citizens group Beverly Hills shop.) Theater plans ple driving from Beverly Hills to Pasade- is not willing to compromise by even a foot. Councilman John Mirisch said he would The only movie theater in Beverly Hills is na,” he said. “I believe the community has been loud like to see the project go forward if a compro- the aging Music Hall, a three-screen venue The Beverly Hills location would reach and clear in their direction that we would like mise can be reached. Prior proposals for a 45- owned by Laemmle Theatres on Wilshire and nearly 80 feet because it also has ground-floor to retain what we have left of a village-type foot-tall medical building, and a mixed-used Doheny Road that plays independent and art retail and a rooftop bar. Each individual theater atmosphere,” she said. office and retail building over the past decade films. There’s also the Paley Center for Media would hold up to 76 seats, about 30 to 50 more The commission suggested scrapping the never got off the ground. and the Academy of Motion Pictures Arts & than most other iPics. The size runs up against retail, eliminating or downsizing the rooftop “It’d be great to have an upscale movie the- Sciences headquarters, which both have the Beverly Hills zoning code, which only bar, and building at least part of the structure ater. A lot of people go to Century City or to screening rooms, but generally don’t show allows 45-feet of height at the location. underground as had been done in Pasadena. the Arclight in Hollywood. I think it’d be great first-run movies. If residents want to see the “It’s a destination business and it can draw (The proposal also called for an electronic bill- to have a theater in town,” Mirisch said. TV: KWHY Looks to Accent Latino Ads and Audience But Julio Rumbaut, a Miami TV consultant Meruelo Group’s Gutierrez holds open is controlled by an investment group led by Continued from page 5 to Spanish-language stations, believes Los the option to buy more stations in the future, Haim Saban, ranked No. 7 on this year’s Busi- Angeles could support an independent Latino but for now the priority is making KWHY a ness Journal list of Wealthiest Angelenos, with “News and magazine shows are the most TV station because Miami, a smaller market, success. an estimated net worth of $3.7 billion. popular local formats, but Telemundo and Uni- supports four of them. “We don’t have to compete with Univision KWHY plans to move its operations from vision already have those,” he noted. The problem is that once a local station across the whole county,” he said. “We can be the NBC studios in Burbank, and is exploring Angelica Posada, media director at Acento becomes established, the only viable way to grow a compelling option for viewers and advertis- available options in order to move as soon as Advertising in West Los Angeles, said that revenue is to create a network, and the local strat- ers that only want to be in this market.” practically possible. KWHY was always a second-tier station for ad egy disappears. In the last decade, Liberman Gutierrez said Meruelo Group brings a lot buyers. However, in the last two years, the sta- Media’s Estrella TV, Spanish Broadcasting Moving from Burbank of connections to Los Angeles and the Latino tion has fallen to third-tier status. Systems’ MegaTV and Television Azteca’s The sale to Meruelo makes KWHY the community to KWHY. “In the ratings, they are virtually in last Azteca America all started as local stations and only Latino-owned TV station in Los Angeles. “We are owners and operators, not just place among broadcast stations,” Posada said. then moved to the network model. NBC still owns KVEA (Channel 52), the flag- investors,” he said. “This market is where “Once the ratings are lost, you fall off the radar “The local strategy seems opportunistic and ship station of the Telemundo Spanish-lan- we live and have grown our businesses. We for blue-chip advertisers. We are looking for- sensible, and it makes sense in the biggest Span- guage network. The L.A. market also includes have relationships with elected officials, ward to the new management bringing back ish market in the country,” Rumbaut said. “But Univision Communications’ KMEX (Chan- advertisers, other media outlets and non- the audience and putting the station back on longer term, the efficiencies lie in broadcasting nel 34), the largest Spanish-language station in profits. We think Channel 22 will benefit the radar.” your shows to the biggest possible audience.” the nation in audience and revenue. Univision from our local presence.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 INDEX LOS ANGELES BUSINESS JOURNAL 49

‘It was right out of ‘It’s so vast that ‘I’ll die as a an old western.’ it makes L.A. lawyer, hopefully, GARY TOEBBEN, seem small.’ at my desk Los Angeles Area RICHARD GREEN, practicing law.’ Chamber of Commerce, USC Lusk School of ROBERT O’BRIEN, on hiking in the Grand Real Estate, Arent Fox LLP, Canyon, PAGE 3 on Sao Paolo, Brazil, PAGE 20 PAGE 3

PEOPLE Drooyan, Richard ...... 7 Kosmont, Larry ...... 1/47 Newman, Jay ...... 1/48 Selig, Bud ...... 51 Sherry, Linda ...... 1/47 A F L O Small, David ...... 7 Altman, Randi ...... 6 Fasanella, Todd ...... 14 Lakner, Dorothy ...... 25 O'Brien, Robert ...... 18/20 Staszak, John ...... 23/24 Arthur, Douglas ...... 12 Fitzgerald, Kenneth ...... 7 Lawler, Josh ...... 50 Olberz, Norbert ...... 16 Auerbach, Alexander ...... 25 Lehrman, Glenn ...... 12 T G Little, Paul ...... 50 P Toebben, Gary ...... 1/47, 3 B Gallup, Marilyn ...... 1/48 Lombardi, Tom ...... 14 Palmer, Scott ...... 14 Toebben, Janice ...... 3 Bay, Michael ...... 6 Garcetti, Eric ...... 1/47 Lynch, Tom ...... 3 Parks, Bernard ...... 1/47 Beder, Eric ...... 8 Gastelum, Ron ...... 3 Perkins, Philip ...... 14 U Bezerra, Michael ...... 4 Gladue, Joseph ...... 14 M Peterson, Jacqueline ...... 12 Udvar-Hazy, Steven ...... 23/24 Bierman, Michael ...... 7 Grabow, Jeff ...... 14 Marciano, Maurice ...... 8 Piazza, Mike ...... 51 Marciano, Paul ...... 8 Blavatnik, Len ...... 16 Green, Richard ...... 3 Posada, Angelica ...... 5/48 V Greif, Lloyd ...... 1/47 Marino, Dan ...... 6 Bohbot, Marc ...... 1/48 Villaraigosa, Antonio ...... 1/47 Griffith, David ...... 25 McCourt, Frank ...... 51 Q Boling, Brian ...... 10 Vitelle, Rick ...... 10 Bressi, Jess ...... 51 Gutierrez, Xavier ...... 5/48 McCourt, Jamie ...... 51 Quateman, Lisa ...... 14 Medrano, Manny ...... 7 Bressi, Rachel ...... 51 W Brown, Kevin ...... 51 H Menlow, David ...... 6 R Waldman, Stuart ...... 1/47 Burdick, Steve ...... 16 Hahn, James ...... 1/47 Meruelo, Alex ...... 5/48 Ramey, Timothy ...... 25 Wu, George ...... 7 Burdiek, Michael ...... 10 Hartman, Terri ...... 1/47 Meruelo, Richard ...... 5/48 Rattray, David ...... 3 Butler, Jim ...... 14 Mindel, Steve ...... 50 Rattray, Terri ...... 3 J Mirisch, John ...... 1/48 Reno, Debra ...... 50 Y C Jaude, Karim ...... 50 Mitchell, Bill ...... 1/47 Riley, Bryant ...... 23/24 Yadegar, Rambod ...... 3 Clark, Marie ...... 5 Molchanov, Pavel ...... 23/24 Riordan, Richard ...... 1/47 Yadegar, Sam ...... 3 Crawford, Mike ...... 10 K Mulcahy, Mark ...... 1/48 Rumbaut, Julio ...... 5/48 Yee, Michael ...... 23/24 Currie, Jon ...... 5/48 Kardashian, Kim ...... 14 Murdoch, Rupert ...... 51 Yukelson, Dan ...... 1/48 Kernan, John ...... 8 S D Kerner, Lou ...... 3 N Saban, Haim ...... 5/48 Z Davidowitz, Howard ...... 8 Klowden, Kevin ...... 51 Nagel, David ...... 42 Scherf, Kurt ...... 5 Zanetos, John ...... 42

COMPANIES, CyberDefender Corp...... 5 J National Venture Capital Association . . . . .14 Spanish Broadcasting Jakks Pacific Inc...... 16 NBCUniversal Media LLC ...... 5/48 System Inc...... 5/48 ASSOCIATIONS, ETC. D Jeffer Mangels Butler & Mitchell LLP . . .14 Northrop Grumman Corp...... 23/24 Sport Chalet Inc...... 16 DA Davidson & Co...... 25 Joe's Jeans Inc...... 25 Nossaman LLP ...... 14 StubHub Inc...... 12 A Davidowitz & Associates Inc...... 8 JP Morgan Securities LLC ...... 7 Access Industries Inc...... 16 Decron Properties Corp...... 42 O T Acento Advertising Inc...... 5/48 Digital Domain Media Group Inc. . . . .6, 14 L Oaktree Capital Management LP ...... 14 Agent Provocateur Ltd...... 3 Technicolor USA Inc...... 6 Digital Domain Productions Inc...... 6 L&R Auto Parks Inc...... 42 Occidental Petroleum Corp...... 23/24 Air Lease Corp...... 23/24 Television Azteca S.A...... 5/48 DirecTV Inc...... 23/24 La Perla ...... 3 Overhill Farms Inc...... 25 Tetra Tech Inc...... 16 American Red Cross ...... 3 Dow Jones VentureSource ...... 14 La Pizza Loca Inc...... 5/48 AmericanWest Bank ...... 14 Teva Pharmaceutical Industries Ltd. . . . .16 Drumbeat Digital LLC ...... 4 Laemmle Theatres LLC ...... 1/48 P Amgen Inc...... 16, 23/24 Thomas H. Lee Partners LP ...... 14 Dynamics Capital Group ...... 50 LegalZoom.com Inc...... 1/47 Pacific Whey Café ...... 5/48 Andreessen Horowitz ...... 14 Ticketmaster Entertainment LLC ...... 12 Liberman Broadcasting Inc...... 5/48 Palmer Lombardi & Donohue LLP . . . . .14 Animal Welfare Association ...... 3 Tradition Studios ...... 6 E Lincoln Property Co...... 42 Parks Associates ...... 5 Arden Group Inc...... 25 Transwestern ...... 42 East West Bancorp Inc...... 16 Live Nation Entertainment Inc...... 12 Pasadena Chamber of Commerce ...... 50 Arent Fox LLP ...... 18/20 Trio-Tech International Inc...... 4 eBay Inc...... 12 Liz's Antique Warehouse Ltd...... 1/47 Paul Hastings Argus Research Co...... 23/24 Ernst & Young LLP ...... 14 Los Angeles Area True Religion Apparel Inc...... 25 Astrablu Media Inc...... 4 Janofsky & Walker LLP ...... 14 Chamber of Commerce ...... 1/47, 3 Polsinelli Shughart PC ...... 14 U F Los Angeles City Council ...... 1/47 Premier Business Centers ...... 4 B Feinberg Mindel U.S. China Mining Group Inc...... 25 Los Angeles County PricewaterhouseCoopers LLP ...... 14 B. Riley & Co...... 10, 14, 23/24 Brandt & Klein LLP ...... 50 Economic Development Corp...... 16 Union Bank of California ...... 42 ProconGPS Inc...... 10 Barclays Bank PLC ...... 6 First BanCorp ...... 14 Luce Forward Univision Communications Inc...... 5/48 Proteus EPCM Engineers PTY Ltd ...... 16 Better Business Bureau Formosa International Hotels Corp. . . . .14 Hamilton & Scripps LLP ...... 7, 51 USC Lusk School of Real Estate ...... 3 PT SHI Indonesia ...... 4 of the Southland Inc...... 1/47 Frederick's of Hollywood Group Inc...... 3 Public Storage ...... 23/24 USC Marshall School of Business . . . .1/47 Brean Murray Carret & Co...... 8 Fuji Food Products Inc...... 5/48 M Business Tax Advisory Committee . . . .1/47 Fulcrum Microsystems Inc...... 4 M. Debra Reno CPA ...... 50 R V Major League Baseball ...... 51 Raymond James Valley Industry and C G Malaga Bank FSB ...... 4 Commerce Association ...... 1/47 Cabo Cantina LLC ...... 4 & Associates Inc...... 23/24 GiveBackMail.com ...... 3 Malaga Financial Corp...... 4 Verde Media Group Inc...... 4 CalAmp Corp...... 10 RBC Capital Markets Corp...... 23/24 Grand Sierra Operating Corp...... 5/48 Mann Theatres Inc...... 42 VeriWave Inc...... 16 Caris & Co...... 25 Green Dot Corp...... 23/24 Mastro's Steakhouse ...... 1/48 RBS Securities Inc...... 7 Victoria's Secret LLC ...... 3 Cathay General Bancorp ...... 16 Guess Inc...... 8, 25 Mattel Inc...... 16 RealD Inc...... 16, 23/24 CB Richard Ellis Group Inc...... 23/24, 42 Meruelo Construction Inc...... 5/48 Regency Theatres Inc...... 42 W Center Financial Corp...... 14 H Meruelo Group ...... 5/48 Regent International Hotels Pte Ltd . . . . .14 Walt Disney Co...... 23/24, 50 Chapin Fitzgerald Hanmi Financial Corp...... 14 Meruelo Maddux Properties Inc...... 5/48 Reliance MediaWorks Ltd...... 6 Sullivan & Bottini LLP ...... 7 Heartbeat West ...... 4 Milken Institute ...... 51 Reliance-ADA Group ...... 6 Warner Music Group Corp...... 16 Cheesecake Factory Inc...... 16 Herbalife Ltd...... 23/24, 25 Mill Road Capital LP ...... 16 Rhythm & Hues Studios Inc...... 6 Wedbush Securities Inc...... 3 Cherokee Inc...... 25 Montage Beverly Hills ...... 1/48 Roth Capital Partners LLC ...... 25 Western Bridge Corporate Cinemark Holdings Inc...... 16 I Mothership ...... 6 Federal Credit Union ...... 14 City National Corp...... 16 Imperial Capital LLC ...... 14 Munger Tolles & Olson LLP ...... 7 S Commerical Bank of California ...... 5/48 Ingenium Testing LLC ...... 16 Safeer Establishment ...... 3 Y Consumer Action ...... 1/47 Intel Corp...... 4 N Shenzhen New World Group Co...... 14 Yahoo Inc...... 3 Council of Better In-Three Inc...... 6 Nara Bancorp Inc...... 14 ShoeDazzle.com Inc...... 14 Business Bureaus Inc...... 1/47 iPic Theatres ...... 1/48 National Credit Union Administration . . . .7 SNL Financial LC ...... 4 Z Cowen & Co. LLC ...... 8 Ixia ...... 16 National Technical Systems Inc...... 16 Spago ...... 1/48 Zuber & Taillieu LLP ...... 50

These indexes list the people, businesses, associations, organizations, schools, etc., that are named in this week's issue. The numbers refer to the page on which the name is found. Numbers with slashes refer to pages on which lengthier articles are located that contain the name. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

50 LOS ANGELES BUSINESS JOURNAL COMMENTARY JULY 25, 2011 LOS ANGELES It’s a Small World of Cuts at Disneyland BUSINESS JOURNAL ® 5700 WILSHIRE BLVD., SUITE 170, LOS ANGELES, CA 90036 went to Disneyland one day last week, and I merely swallowable; you expect that. It’s that the no longer obsessing about the little things. (323) 549-5225 FAX 549-5255 www.labusinessjournal.com was surprised by how it’s slipped from the Dis- order-and-pickup system at the Tomorrowland Ter- Most everything I saw at the twin parks last I neyland of only a few years ago. race is bizarrely configured. You order from one per- week plus Downtown Disneyland, the adjoining PUBLISHER & CEO The park is still clean, but you see more trash on the son at a window, then pick up your order later from commercial strip, seemed to scream the three C’s MATTHEW A. TOLEDO [email protected] | ext. 207 ground than you used to. The restrooms the same person at the window about (Corporate Cost Control). There were more buying are tidy, but two of three towel dis- 10 inches next to it, which is shared by opportunities than I remember, but fewer sidewalk EDITOR pensers were empty in one men’s room another order taker. In other words, a sweepers, a shorter parade, fewer employees – CHARLES CRUMPLEY at midday. And are the Disney charac- lot of activity is funneled to one point. excuse me, cast members. A thousand little cuts. [email protected] | ext. 208 DESIGN DIRECTOR ters now on the endangered species list? When you give your order, you’re To be sure, Disney seems to be doing big things ROBERT LANDRY I don’t recall seeing any. unsure where to go. I took a half-step quite well. It is Los Angeles County’s second biggest [email protected] | ext. 243 MANAGING EDITOR Remember all those cheery, smil- to the side to the pickup window but company, and, as you can see in our Special Report in LAURENCE DARMIENTO ing faces on the “cast members”? You quickly realized I was in the way amid this issue (beginning on page 23), it enjoyed a 20 per- [email protected] | ext. 200 still see them, but mostly on the mid- the welter of customers, what with all cent increase in its market capitalization in the last DEPUTY MANAGING EDITOR STEVE SILKIN dle-age and older employees, what the ordering and picking-up going on year. That’s impressive, especially for a big company. [email protected] | ext. 229 few remain. Many of the younger all around me. So I stepped back – Still, I can’t help but wonder: Do wise cost-cut- NEWSDESK EDITOR TOM HICKS workers looked bored and stone-faced. COMMENT just out of earshot when they yelled ting moves for another company hurt a company [email protected] | ext. 223 They seem particularly disengaged my name some minutes later. And I like Disney? After all, Disney was built on provid- REPORTERS across the street in the California do mean some minutes later. ing an unparalleled customer experience with RICHARD CLOUGH CHARLES [email protected] | ext. 251 Adventure park. The girl who ushered While I waited with some other obsessive attention to every little thing. DEBORAH CROWE us into our seats at the Twilight Zone CRUMPLEY patrons, and with only a little prompt- Walt Disney was legendary for examining a [email protected] | ext. 232 HOWARD FINE Tower of Terror zoomed through her ing from me, two guys volunteered detailed plan concerning, say, a new ride, and then [email protected] | ext. 227 patter so quickly you’d think she had made a person- that it was a head-scratcher of a system. A third instructing his exhausted Imagineers to take it back ALEXA HYLAND al challenge: “Can I say three sentences in less than pointed out that counter service was perfected and make the whole thing better. Give particular [email protected] | ext. 235 NATALIE JARVEY two seconds this time, too?” The ride is supposed to years ago, so why had they employed this bad sys- attention to the little things. “Plus it up,” he’d say. [email protected] | ext. 230 Sadly, it seems, Disney corporate mangers JAMES RUFUS KOREN be thrilling, and it is, but now, several days later, I tem? And why was it taking so long? After all, [email protected] | ext. 225 mostly remember how comical it was. Probably not they have only a few things on the menu. seem to have forgotten about plussing it up and are ALFRED LEE one of the two dozen riders in the “elevator” car had “You expect more from Disney,” one guy said. more intent on minusing it down. [email protected] | ext. 221 JONATHAN POLAKOFF any earthly notion of what that girl said in those two Exactly. That’s it. You do expect more. Walt [email protected] | ext. 239 seconds before she slammed the doors closed. Disney Co. is synonymous with quality. It’s known Charles Crumpley is editor of the JOEL RUSSELL [email protected] | ext. 237 The worst experience came at lunch in Disney- for doing the little things as assiduously as the big Business Journal. He can be reached at JACQUELYN RYAN land. It’s not that we got overpriced food that was things. And now, at least to me, it seems Disney is [email protected]. [email protected] | ext. 228 REPORTING INTERN DENIZ KORAY [email protected] | ext. 263 VISITING FELLOW LABJ FORUM HEEJIN PARK [email protected] | ext. 241 CHIEF EDITORIAL PHOTOGRAPHER Would you vote RINGO H.W. CHIU Amazon.com has said it will push to have Californians [email protected] | ext. 256 Offline vote on whether Internet retailers must collect state to keep or kill RESEARCH DIRECTOR the tax? DAVID NUSBAUM sales tax. So the Business Journal asks: [email protected] | ext. 236 VICE PRESIDENT OF ADVERTISING Or Online? JOSH SCHIMMELS [email protected] | ext. 218 ASSOCIATE SALES MANAGER DARRIN SENNOTT STEVE MINDEL local retailers. Right now, it is a disadvantage to JOSH LAWLER [email protected] | ext. 220 Managing Partner have a business location in Pasadena, or California Partner ADVERTISING ACCOUNT Feinberg Mindel Brandt & Klein LLP for that matter, if Amazon can provide the same Zuber & Taillieu LLP MANAGERS JESSICA ANNAS Allowing Internet retailers product at a lower total price because they are not When e-commerce started, the infrastructure [email protected] | ext. 240 NAZ BAYAZIT to compete without paying required to pay sales tax. and vision required to tax sales over the Internet [email protected] | ext. 253 their share of sales taxes cre- did not exist. It is a mistake to continue to give e- BILL MOIR ates an unfair advantage. In DEBRA RENO tailers an advantage over retailers while depriving [email protected] | ext. 216 ROSZ MURRAY essence, it is the equivalent of Owner our state of much needed income. [email protected] | ext. 215 providing Internet companies M. Debra Reno, CPA JIM SLATER with an 8 percent to 10 percent I would vote to keep the tax. Amazon is KARIM JAUDE [email protected] | ext. 209 state subsidy. I am all for free bemoaning the fact they cannot be responsible for Chief Executive SPECIAL EVENTS/ ADVERTISING COORDINATOR enterprise, but the playing field 7,500 taxing districts countrywide. But does any- Dynamics Capital Group MARISSA DE LA CRUZ Mindel has to be level. It may be time one realize that Amazon has been hosting and I would vote to keep the tax on Amazon and all [email protected] | ext. 213 to rethink the concept of a sales tax, and eliminate maintaining Target’s website, which does collect Internet purchases. It’s not fair for the merchants PRODUCTION ARTISTS SALLY FOSTER sales taxes in favor of higher state income taxes. sales tax from all those districts? It is not an alien who pay rent and have employees to pay, while [email protected] | ext. 212 concept to Amazon. They just do not want to tool someone sells from his warehouse does not have to PATTY TSAI-CHU PAUL LITTLE up and lose their nontax pricing advantage, which pay. If we expect city, county and state services, [email protected] | ext. 242 CIRCULATION DIRECTOR Chief Executive Officer in California is already 9 percent. we have to provide them the money. MICHAEL LEVINE Pasadena Chamber of Commerce [email protected] | ext. 247 I would support taxing Internet transactions CUSTOMER SERVICE LE MILLHAUSER because that would level the playing field for our [email protected] | ext. 245 ZAINABU BRYANT [email protected] | ext. 244 NEW BUSINESS DEVELOPMENT REPRESENTATIVE Los Angeles Business Journal Poll JEFF LYON If Amazon’s referendum to overturn the new [email protected] | ext. 210 law that would force more Internet retailers to CONTROLLER NANCY SCHWARTZ collect state sales tax is on the ballot: [email protected] | ext. 202 ACCOUNTS RECEIVABLE SPECIALIST I’d vote to PATRICIA A. BENSON I’d vote to keep the tax. [email protected] | ext. 231 kill the tax. ASSISTANTS TO THE PUBLISHER BETH THERIAC [email protected] | ext. 249 PAUL KNEZEVIC 66% [email protected] | ext. 203 RECEPTIONIST ERIN SCHAUER 34% [email protected] | ext. 270

CITY BUSINESS JOURNALS Online results for week ended July 20 NETWORK 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

JULY 25, 2011 COMMENTARY LOS ANGELES BUSINESS JOURNAL 51 In the Batter Box Media score easy points by bashing Dodgers owner Frank McCourt far in excess of his transgressions.

By JESS BRESSI and RACHEL BRESSI

VER the last several weeks, the popular media has vili- fied Frank McCourt. In making him their piñata de O jour, the media have turned McCourt into L.A. public enemy No. 1. They have even personally blamed him for the tragic attack on Bryan Stow at the opening-day game. But one must question whether it is really appropriate to hate Frank McCourt when not viewed through the eyes of a fan. And remember what “fan” is short for … FANATIC! So what are they accusing McCourt of? Killing a toddler? Drowning a puppy or kitten? Impregnating his maid while mar- ried and then lying about it for a decade? Conning thousands of people out of billions of dollars? With the attention he’s been getting, McCourt must’ve done something pretty bad. But wait, he was merely making decisions for a family business in which he owned a 100 percent share (wife Jamie may disagree with the ownership percentage). And on the biggest decisions that he’s getting the most flack about, he got Major League Base- ball’s approval? Seriously? Commentators assert that McCourt has been using the Dodgers as his “personal piggy bank.” So? This is the essence of capitalism. Winston Churchill once said, “Some people regard private enterprise as a predatory tiger to be shot. Others look on it as a cow they can milk. Not enough people see it as a healthy horse, pulling a sturdy wagon.” The McCourts were just milking their own cash cow. Baseball is a business. It is not a charitable organization or a government entity. For decades, America has taken pride in the business acumen of its daughters and sons. Our business schools attract people the world over RINGO H.W. CHIU/LABJ eager to join the ranks of American businessmen and -women. Park Place: Dodger Stadium at Chavez Ravine. But when it comes to the Dodgers, our deeply American capi- talist values go out the window in favor of the knee-jerk emotional reaction to the McCourts. And lest we forget what we had before the McCourts: about solvent and all creditors will get paid in full in the bankruptcy. The reality is that the Dodgers are not the first sports team to six years of ownership by Rupert Murdoch’s Fox Sports. Under Sure, buying seven luxury homes might seem excessive. file bankruptcy nor will they be the last. And like those other Fox, the team consistently lost money. But beyond the money, Jamie McCourt’s million-dollar monthly allowance may be a teams, the Dodgers will survive. Baseball Commissioner Bud under Fox, the Dodgers never made the playoffs and replaced little much. On an emotional level, there may be many reasons Selig himself brought the Seattle Pilots to Milwaukee to popular players (Mike Piazza) with expensive and ineffective to hate the McCourts. But on a logical level, there is none. become the Brewers through a bankruptcy case. players (remember the first $100 million man, Kevin Brown?). McCourt is the rightful owner of the Dodgers and the biggest When we look at this business compared with the rest of the In their first six years of McCourt ownership, the Dodgers made transactions he engaged in were approved. MLB, McCourt ran a pretty tight ship. The Dodgers are not the postseason four out of six years including the National The bottom line is that we have bank officials who perpetrat- even among the five teams with the highest debt-to-value ratios. League Championship series twice. ed billions of dollars of fraud on investors and helped cause our In fact, under McCourt, revenues doubled. The team’s profits current housing crisis and not one is in jail or has lost assets, yet compare very favorably with the highest-profit-earning teams in Full and fair compensation people are rooting for McCourt to lose everything through the the league. While we might think some of McCourt’s transac- How can we rationally justify that McCourt may lose his MLB seizure and sale of the Dodgers. In terms of relative moral tions concerning the Dodgers were questionable, the securitiza- team and not get full and fair compensation for its value? The blameworthiness, Frank McCourt doesn’t even register. tion of future ticket revenues was approved by the league in Dodgers are one of the most valuable sports teams in the world, 2005 and several other teams have taken part in off-balance- in no small part due to the McCourts’ ownership. Even with all Jess Bressi is a litigation and bankruptcy partner in the Orange sheet financings with the blessing of the commish. The separa- of the turmoil surrounding the team in the last year or so and the County office of the Luce Forward Hamilton & Scripps LLP tion of the stadium and parking lot real estate also had MLB Great Recession, it has increased in worth by 10 percent to $800 law firm and roots for the Angels. Rachel Bressi, his daughter, approval. million, according to Forbes magazine. The Dodgers are very is a second-year law student at UCLA.

Beverly Hills Merchants Wrong to Rail Against Subway

By KEVIN KLOWDEN are accustomed to taking mass transit to shop and simply ship- ping their purchases home. OME Rodeo Drive retailers have strong reservations Rodeo Drive prides itself Yes, more people will come to Beverly Hills by rail than do about positioning a new Purple Line subway station at on its international reputation yet so by bus. But large numbers will be people who previously S Wilshire Boulevard and Beverly Drive. The com- arrived by car. plaints, as reported in the July 11 issue of the Business Jour- seems content with having And as for Beverly Drive not being a major north-south nal (“Subway to the Sea? Don’t Stop at Rodeo Drive”), range insufficient parking and, worse, street, it connects to Coldwater Canyon Drive (and the San Fer- from attracting too many people (or those from the wrong remaining a destination that nando Valley) to the north and represents a reliable route for crowd) to the station not being positioned on a major north- requires renting a car or drivers headed south toward Pico Boulevard and beyond. There south street. is no more significant north-south street in Beverly Hills’ main These concerns are shortsighted at best and absurd at hiring a taxi to visit. commercial district. worst. Beverly Hills is one of the most exclusive shopping With the local economy in mind, I’ll point out that the Pur- destinations in the world, with Rodeo Drive being its most ple Line reached Wilshire and Western Boulevard in 1996. It famous destination. However, the principal distinction would be 2022 (under current projections) when the Wilshire- between Rodeo Drive and locations such as Bond Street in These other cities understand a fundamental issue that Los Beverly station would open. That marks a 26-year gap in which London, Via Veneto in Rome, Avenue Montaigne in Paris, Angeles (and Beverly Hills) merchants apparently do not: Beverly Hills could have benefitted from increased tourism and Chuo-Dori in the Ginza district in Tokyo and Fifth Avenue in Wealthy visitors often take rail transit to shopping destinations. reduced congestion. Enough is enough. If the merchants on New York is simple: There is no fixed-rail mass transit to Rodeo Drive prides itself on its international reputation yet Rodeo are concerned about their clientele, perhaps they should Rodeo Drive, while the other streets are within three blocks seems content with having insufficient parking and, worse, talk to their peers in New York, Rome and Paris before they of a transit station. In the case of Tokyo, New York and Paris, remaining a destination that requires renting a car or hiring a rush to judgment and take the rest of us along for the ride – or the stations are located on the destination street itself. In the taxi to visit. lack thereof, as the case may be. case of Bond Street, the Tube station (on nearby Oxford It is one thing to turn away the “riff-raff.” (Many Rodeo Street) is actually named after the street itself, and the con- Drive shops already do this quite effectively based simply on Kevin Klowden is managing economist and director of the nections are promoted within the station. their prices.) It is another to discourage well-heeled visitors who California Center at the Milken Institute in Santa Monica. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

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To read the Digital Edition on either your iPad please follow the instructions below;

To Download: 1. Click on the below listed URL: www.labj.com/digital 2. Click on the edition you wish to download (the editions for each paper are represented by an icon which appears on the Web page you access with the browser). 3. Wait as the selected edition is downloaded into your browser. Download progress is marked by a blue thermometer indicator in the URL bar of the browser. 4. The downloaded edition will appear in your browser

Reading Instructions (start here if you have already downloaded the Digital Edition into your browser) 1. To read the Digital Edition you must move the Edition from your browser to a digital reader. 2. Move the downloaded edition into the iBooks digital reader (iBooks is a standard app delivered on all iPads. The app is available free on in the Apple app store should you need to download a copy of the app) by tapping in the center of the page until you see the "open in" button appear in the upper right-hand corner of the page. 3. Tap on the "open in" button. A list of apps will appear. Select iBooks. After a delay of a few moments, the digital edition will appear on a bookshelf in the iBooks app. 4. Tap on the image of the digital edition shown on the bookshelf and the edition will open in iBooks. 5. Use the tools at the top of each page of the digital edition in combination with the built in tools in iBooks to read and navigate the edition. 6. You will note a series of buttons across the top of the page of the Digital Editions. The buttons provide the following commands:

Thumbnails, User Guide, Front Page, Table of Contents

7. Enjoy reading your weekly digital edition of the Los Angeles Business Journal 8. Please give us feedback by sending me an email at: [email protected]

Note: the Digital Edition can also be read on Android, Apple, Blackberry and Windows smart phones and on Kindle and Nook digital reading devices.