Online Resources to Restate Results
Online Resources, a Chantilly company that provides online bill payment services, said it will restate its financial results going back to July 2003 because of a change in its accounting policies. Since 2003, all of the uncashed checks handled by Online Resources were counted as part of its bottom line. Now the firm will return checks that are not cashed within 180 days to the issuing bank or to the states. The firm said that would make its 2004 profit $4 million (20 cents a share) instead of the previously reported $5 million (25 cents).
Online Resources said the change will not have a material effect on future results but did reduce its 2005 guidance. The company expects to earn $8.6 million to $9.5 million in 2005, compared with the $9.4 million to $10.3 million it previously forecast. Shares of Online Resources fell 13 cents to close at $9.85.
Bremer Joins Global Secure Advisory Board
L. Paul Bremer, left, former administrator of the Coalition Provisional Authority in Iraq, has joined the advisory board of District-based Global Secure, which is planning an initial public offering. Bremer, a former U.S. ambassador, will serve as chairman of the advisory board, the company said in a statement.
Global Secure, a provider of security products and services to local and state governments, said last week it had registered to sell up to $100 million of stock, but the number of shares and price range had not been determined.
MERGERS & ACQUISITIONS
Fed Approves Capital One's Bank Purchase
The Federal Reserve Board approved Capital One Financial's $5.3 billion acquisition of Hibernia, which it said would create the 23rd-largest U.S. bank with assets of $80.1 billion. Hibernia shareholders voted to approve the merger Aug. 3.
McLean-based Capital One, the fifth-largest issuer of credit cards in the United States, is seeking to extend its business beyond cards. Its purchase of Hibernia gives it more than 300 added locations in Louisiana and Texas.
LaSalle to Buy Westin Hotel in Boston
LaSalle Hotel Properties, a real estate investment trust that focuses on luxury hotels, agreed to buy Boston's Westin Copley Place hotel for $318 million, its second acquisition in the city this year. The Bethesda company will assume a $210 million mortgage, issue $59 million in preferred stock and borrow the rest to buy the 803-room hotel. The sellers are JMB Realty, Starwood Hotels & Resorts Worldwide and Enpro International, said Hans Weger, chief financial officer of LaSalle.
The company expects to complete the Westin Copley acquisition this quarter.
Watson Wyatt & Co. of Arlington, a consulting firm specializing in benefits and compensation planning, had a profit of $12.3 million (37 cents a share) in its fiscal fourth quarter ended June 30, down from a profit of $12.7 million (39 cents) in the comparable quarter a year earlier. Revenue rose 10.3 percent, to $198.6 million. The company said the reduced profit for the recent quarter reflected a loss on a foreign currency contract related to the acquisition of its European partner, which closed July 31.
For the year, Watson Wyatt had a profit of $52.2 million ($1.58), up from $50.6 million ($1.52) the previous year. Revenue grew 5 percent, to $737.4 million.
TVI of Glenn Dale, which makes systems such as decontamination showers for first responders to disasters, reported that second-quarter profit fell 39 percent, to $1.1 million (4 cents a share) from $1.8 million (6 cents), on sluggish sales. Revenue for the period ended June 30 declined 26 percent, to $7.6 million.
Orbimage, a Dulles company that provides high-resolution satellite imagery, lost $5.4 million (32 cents a share) in the second quarter, compared with a loss of $4.4 million (70 cents). Revenue fell 13 percent, to $8.5 million.
Compiled from staff and news service reports.