Business Digest

BUSINESS DIGEST

July 30, 2004

In The Region

Magellan Health's earnings nearly double in 2Q

Shares of Magellan Health Services Inc., a mental health insurer with headquarters in Farmington, Conn., and extensive operations in Columbia, rose 15 percent yesterday after the company posted strong earnings and raised its income guidance for the year. The shares closed at $33.64, up $4.42 for the day.

Magellan reported earnings of $28.4 million, or 78 cents a diluted share, for the second quarter, which ended June 30. That was nearly double the $14.4 million, or 35 cents a share, earned in the quarter last year, when Magellan was operating under bankruptcy protection so it could reorganize and restructure its debt. Revenue was $452.1 million, up 15.8 percent from $390.3 million booked in the second quarter of 2003.

Magellan also said it now expects earnings of $80 million to $100 million for the year. It previously had projected earnings of $36 million to $56 million.

Glen Burnie Bancorp earns $27,000 less

Glen Burnie Bancorp earned $706,000 in the second quarter, which ended in June, a $27,000 decrease from the quarter last year.

The parent of the Bank of Glen Burnie said that it earned 35 cents a share for the second quarter, compared with 36 cents a share for the quarter a year ago. The company blamed a $55,000 increase in taxes for the drop in earnings.

For the first half of this year, the company earned $1.45 million, a $58,000 increase from first six months of last year. So far this year, deposits have grown by $7.5 million to $264.4 million and total assets are up by about $6 million to $308.3 million.

Radio One to buy station in N.C. for $11.5 million

Radio One Inc. said yesterday that it will acquire radio station WABZ-FM in Charlotte, N.C., for $11.5 million in cash from Susquehanna Radio Corp. It's the second station Radio One will own in that market.

The company plans to change the station's call sign and format when the acquisition is completed, probably in the fourth quarter.

Lanham-based Radio One also reported yesterday that its net broadcast revenue for the second quarter that ended June 30 increased 7 percent to $86.2 million from the quarter last year. Net income increased 11 percent to $17.5 million, or 12 cents per diluted share.

Md. awarded $2.6 million for energy grants to poor

Low-income families in Maryland will be eligible for grants to improve the energy efficiency of their homes under a $2.65 million federal award to the state, U.S. Energy Secretary Spencer Abraham announced yesterday.

The weatherization assistance grants are part of a July 1 award of $94.8 million to 20 states. The grants can be used to help save energy and reduce energy costs.

Low-income families spend an average of 14 percent of their income on energy, compared with 3.5 percent for the average American. Weatherization reduces an average home's energy costs by $218 per year. Low-income households with elderly members, people with disabilities and children will be given priority.

Inner Harbor Marina is available for lease

The Baltimore Development Corp., the quasi-public municipal development agency, is accepting proposals on behalf of the city to lease and operate the Inner Harbor Marina.

The marina, at 400 Key Highway, has 158 boat slips and 5,200 square feet of office and storage space on the ground level of the building that houses the Rusty Scupper restaurant.

Proposals are due by noon Sept. 13. The requests for proposals can be found at www.baltimoredevelopment.com. Contact Andrew Frank, BDC executive vice president and interim Inner Harbor coordinator at 410-837-9305.

HealthExtras' earnings soar 84% to $4.1 million

HealthExtras Inc., a pharmacy benefits manager with headquarters in Rockville, yesterday reported income of $4.1 million, or 11 cents a share, for the quarter that ended June 30. That's up 84 percent from $2.2 million, or 7 cents a share, in the second quarter of 2003.

Revenue was $114.2 million, up 21 percent from $94.1 million in the year-earlier period.

HealthExtras raised its earnings guidance for 2004 to $16.4 million. It had previously projected $14.8 million.

Elsewhere

Janus Capital client plans to withdraw $5 billion this year

Janus Capital Group Inc. said yesterday that one of its clients plans to pull approximately $5 billion out of its mutual funds by the end of the year, a sum that represents 3.7 percent of the group's total assets under management.

Janus also said that Lars Soderberg, an executive vice president who had gone on leave during an improper trading investigation, had resigned. According to a regulatory filing, Soderberg will receive a $1.5 million cash payout and other benefits from a separation agreement.

The announcements were the latest blows for Janus, which agreed three months ago to a $225 million-plus settlement with federal and state regulators to resolve claims it allowed improper mutual fund trading.

Janus did not identify the client withdrawing the assets, noting the client's wishes, or say why the decision was made.

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