Revenue

Environmental crime" has never had a positive ring to it. The vast oil spill from the tanker Exxon Valdez in Prince William Sound that polluted the water and killed thousands of animals in 1989 resulted in millions in criminal fines. London-based BP PLC, one of the largest international oil companies, recently agreed to admit to criminal wrongdoing and to accept probation in a settlement of environmental allegations. It also is paying $70 million in fines. The death toll this time involved people.

Maryland's political leaders, virtually all of them Democrats, spent the recently concluded General Assembly session whistling past the graveyard. They had their reasons. It was their graveyard. And they know the ghosts are real. They're determined to find the bright side because they know the voters and the corporate interests that help finance their campaigns would like to whistle along with them. The graveyard in question is Maryland's unsupportable financial situation. The cost of government has gone up, boosted by altogether worthy state initiatives.

Sinclair Broadcast Group Inc. shares dropped 7 percent yesterday after the television-station owner said weak automotive advertising and low ratings for its MyNetworkTV stations are mitigating its successes in winning retransmission fees from cable companies. It was the largest stock drop in more than a year for the Hunt Valley company, which had gained investor favor after winning a string of showdowns over its insistence that cable companies pay it for the right to carry Sinclair-owned local stations.

THE GOOD financial news for Gov. Parris N. Glendening keeps getting better. He learned last month that Maryland's vibrant economy generated a $320 million state surplus in the past fiscal year. Last week, revenue experts predicted another $600 million in excess funds for the current fiscal year -- and a surplus for the year after that of nearly $400 million.These are huge sums for a state Maryland's size. They give leaders a rare opportunity to patch up the state's infrastructure, add school and college buildings and make contributions in underfunded areas such as child care for low-income families and state parks.

Stock in US Airways Group Inc., parent to the nation's sixth-largest airline, dropped nearly 8 percent yesterday after the company announced that it will not earn a profit in the third quarter because of lost revenue from a spate of flight cancellations.The company's shares closed on the New York Stock Exchange at $25.4375, down $2.1875, and their lowest closing price in the past year. The shares closed as high as $62.25 in January.US Airways has struggled to fly a full schedule this summer as it launches a new computer system for ticket information and continues to weave the spin-off airline MetroJet into its regular operations.

Host Marriott Corp. reported yesterday that its second-quarter earnings climbed 6.6 percent compared with the corresponding period last year, the result of higher revenue from its hotel rooms, acquisitions in 1998, and cost cutting.The Bethesda hotel owner's funds from operations were 48 cents per share, compared with 45 cents per share a year ago. Host Marriott generated funds from operations of $152 million in the quarter, up 41 percent from the comparable quarter last year.But that figure is distorted because the company had 33 percent fewer shares outstanding as of June 1998.

Caliber Learning Network Inc. reported yesterday that it narrowed its second-quarter loss on sharply higher revenue and announced that it has launched an Internet-based learning service.The Baltimore-based company, which offers distance-learning services for corporations and universities, posted a loss of $6.1 million, or 50 cents a diluted share, compared with a loss of $6.6 million, or 60 cents a diluted share, for the same period last year.Shares outstanding in the quarter rose to 12.3 million from 11.1 million in the same quarter last year.

Legg Mason Inc.'s net income soared 34 percent and revenue rose 11 percent in its fiscal third quarter as assets under management ballooned to record levels, the company said yesterday.The Baltimore-based brokerage and money management firm made $22.8 million in the three months that ended Dec. 31 on revenue of $260.5 million. That compared with earnings of $17 million on revenue of $235.2 million in the year-ago period. Basic earnings per share increased 32 percent to 41 cents in the quarter, up from 31 cents a year earlier.

Environmental Elements Corp. announced first-quarter net income yesterday of $221,000, up 6.8 percent from the $207,000 reported for the first quarter of 1998. Earnings per diluted share remained unchanged at 3 cents in the three months that ended June 30.The Baltimore-based provider of air pollution control systems said it had revenue in the quarter of $11.8 million, down 40 percent from $16.5 million posted for the corresponding period a year ago.Ted Verdery, chairman and chief executive officer, said although revenue declined, "the work we are doing has a higher premium for the customer and earns a higher profit."

Sylvan Learning Systems Inc. reported yesterday record earnings of $11.4 million, or 21 cents a share, for the second quarter, slightly better than analysts' predictions.For the same quarter of last year, the Baltimore educational and testing services consultant reported a net loss of $1.5 million, or 3 cents a diluted share, which included a one-time charge of $8.9 million relating to an acquisition.Net revenue for the three months that ended June 30 increased 49 percent, to $148.5 million from $99.3 million, in the second quarter last year.

The state's budget troubles just keep getting worse. Gov. Martin O'Malley said Wednesday that he might need to close a further budget gap of up to $300 million this fiscal year with more cuts - on top of $735 million in reductions approved in recent weeks. State officials will know the extent of the writedown when a board that forecasts revenue collections releases its report Thursday. "Hopefully, we're starting to come through the other side of this, but we have yet to see the rebound in the revenues," O'Malley told reporters.

Baltimore's city-owned convention hotel opened to much fanfare and high expectations last August, with white-gloved waiters serving champagne in the blue-and-rust lobby, a jazz ensemble playing and the first guests marveling at the ballpark views. Tourism and government leaders praised the $301 million, publicly financed project as the much-needed ingredient to bolster convention business and elevate the city as a destination. But within months, the bottom fell out of the economy, weakening demand in the lodging and convention industries.

Baltimore money manager T. Rowe Price Group said Friday that its second-quarter profits fell 38 percent from the same period a year ago, but the company beat Wall Street expectations and clients poured $3.5 billion into its mutual funds and other investments. Net income for the three months ending June 30 declined to $100 million, or 38 cents per share, compared with $162.2 million, or 59 cents per share, a year ago. Price's earnings exceeded Wall Street expectations of 34 cents per share.

Legg Mason Inc. cracked the Fortune 500 list for the first time this year, joining two other Baltimore-area firms as among the nation's largest companies. The Baltimore money manager's designation on the iconic Wall Street list - it is ranked No. 500 - doesn't factor in last summer's economic meltdown and much of the company's weak performance last year. That is because Fortune used revenue for Legg's 2008 fiscal year, which ended March 31, 2008. Legg has yet to report its 2009 fiscal year-end earnings.

The last thing any politician wants to do is raise taxes the year before an election, which makes Howard County Executive Ken Ulman's struggle to come up with a balanced budget for fiscal 2010 all the more daunting. Like many state and local leaders, Ulman is hoping the federal stimulus will help, but it might not provide much for ordinary operating expenses. Meanwhile, his administration is trying to figure out what revenue projections to use and how much spending is safe. Ulman is scheduled to present his budget in mid-April, and the County Council has until June 1 to make changes.

The darkening economy is cutting into Howard County's revenue projections, producing what county officials now see as a potential $5 million shortfall that could grow larger by the end of this fiscal year June 30. County Budget Director Raymond S. Wacks has told the County Council that sharp drops in projected revenues from development-related activity and investment income have pushed his estimates of a fiscal year-end shortfall. The projection has risen from an estimate of $1.8 million calculated in October to just less than $5 million based on figures from the end of December.

As Baltimore's bean counters sweat the city's dwindling revenue streams, there is a bright spot: Money from new-fangled electronic parking meters is far higher then expected. In the four years since the black rectangular boxes that serve an entire block were installed, Baltimore parking revenues have risen 54 percent, from $4.5 million in fiscal year 2004 to $7 million this fiscal year. The increase has come without increased parking charges or the creation of new paid parking areas. "Financially, they are doing well," said Peter E. Little, head of the city's Parking Authority, calling the collection boon a "happy byproduct" of the machines.

A national economic meltdown has sucker-punched Maryland, according to state revenue numbers released yesterday portending major budget cuts in previously protected areas such as public safety, education and health care. A grim-faced Gov. Martin O'Malley issued an executive order requiring about 67,000 state workers to take up to five days of unpaid leave, and he said a projected $1.9 billion revenue gap in next year's budget could require state worker layoffs. O'Malley, a Democrat, said he and his budget officials were taken aback by the shortfalls in the state's income and sales tax revenues.

Martek income is down Columbia-based Martek Biosciences Corp. reported yesterday net income of $10.5 million, or 31 cents per diluted share, for the fourth quarter that ended Oct. 31, down from $18.3 million, or 55 cents per diluted share in the fourth quarter of 2007. The manufacturer of infant formula reported revenue of $90.4 million, up 10 percent from $82 million in the corresponding period in 2007. Excluding the impact of tax benefits, the company's net income would have been $8.9 million, or 27 cents per diluted share, compared with $7.5 million or 23 cents per diluted share in the fourth quarter of 2007.

National Public Radio announced yesterday that it is canceling two programs and eliminating 64 jobs, blaming a "sharp" decline in corporate underwriting and other revenues. The move, part of an overall 7 percent work force reduction, comes as NPR's radio and Web audience has been growing. About 26.4 million people are listening to the NPR programs every week, while its Web site, npr.org, is getting 8 million visitors a month. NPR officials had projected a "manageable" $2 million deficit for fiscal 2009, on a budget of $168 million.