Tag: SEC documents

Kindred’s Zachariah gets $220K in stock with promotion to rehab president

Jason Zachariah
Zachariah

Jason Zachariah received 20,000 Kindred shares yesterday as the hospital and nursing home giant announced his promotion to president of Kindred Rehabilitation Services, according to a Securities and Exchange Commission notice this morning.

The shares are in the form of restricted stock units that vest in equal annual installments over three years starting a year from yesterday. Based on yesterday’s $11.01 closing price, the shares are worth $220,000. Zachariah already owned 20,980. It’s common for executives to get bonuses for big promotions. By vesting the shares over several years, a company encourages the employee to stay and also ties their compensation to the company’s overall performance.

Zachariah replaced Jon Rousseau, who is leaving the company to pursue other interests, Kindred said. Rousseau joined Kindred three years ago and was president of KRS since April 2015.

In a separate filing, Rousseau told the SEC he’d given up 24,900 shares without compensation, a stake he presumably walked away from when he quit; the Form 4 document didn’t explain the transaction, however. Rousseau still had 24,433 shares remaining, the document said.*

Zachariah’s elevation and Rousseau’s departure were effective immediately, the company said. Zachariah started at the Louisville hospital and nursing home giant in 2006.

Kindred employs about 2,200 employees in Louisville; it has about 102,000 employees in total. More about Kindred’s operations.

* (At the time he joined the company, Rousseau told the SEC he’d been awarded 35,000 restricted stock units, which were to vest in equal annual installments over three years by July 30 this year — two weeks ago. Attentive readers will notice a discrepancy in all these figures for Rousseau. Without getting too far into the weeds and boring readers to death, Boulevard notes Rousseau also was awarded 14,000 RSUs when he was promoted to rehab president in spring 2015.)

Papa John’s COO Ritchie nets $625K in share trade

Steve Ritchie made the trade Aug. 12 with options he exercised that day at a so-called strike price of $26 a share, according to a just-filed Securities and Exchange Commission document. That means he netted about $625,000 after selling the 12,836 shares at prices ranging from $74.37 to $75.08.

John Ritchie
Ritchie

The options vest in three equal annual installments beginning one year from the grant date of Feb. 28, 2013. The company’s PZZA shares closed today at $75, up 35 cents.

Just last week, Ritchie told the SEC he’d sold 988 shares for about $75,000; there were no options involved in that trade.

Ritchie has been the pizza chain’s president and chief operating officer since July 2015. He started at the company as a customer service representative making $5 an hour in 1996.

As stock hits record high, Schnatter leads four top execs selling thousands of Papa John’s shares

Papa John's exec trades August 2016

Lance Tucker
Tucker

Founder and CEO John Schnatter and the three other senior officers sold the shares over the past week for prices between around $76 and $77 a share, according to new Securities and Exchange Commission documents.

The trades came just as Papa John’s hit a record high of $78.09, pushing the value of Schnatter’s 10.5 million shares above $800 million for the first time.

PZZA closed this afternoon at for $75.15, up 65 cents.

John Ritchie
Ritchie

So-called insider stock sales are an important barometer of where top executives at companies think share prices are headed. But they’re an imperfect measure. Sometimes, executives sell through what’s called SEC Rule 10b5-1 plans. They allow major holders to sell a predetermined number of shares at a predetermined time, a plan often approved in advance by the board of directors to avoid insider-trading accusations.

The Papa John’s filings don’t disclose any reason for the sales, however.

Papa John’s opening 40 more outlets in Russia; judge sets Dec. 5 trial date for Humana-Aetna case, jeopardizing $1B breakup fee to HUM; and ouch: new GE beverage maker like something out of ‘Spaceballs’

A news summary focused on 10 big employers; updated 3:14 p.m.

PAPA JOHN’S said today it will open 40 restaurants in Russia over the next eight years, with the first store scheduled to open in St. Petersburg next month. Franchiser PJ Western Retail already operates more than 80 restaurants in Russia and Belarus; it’s owned by Global Restaurant Management and private equity firm Capman Russia Fund (press release). The chain opened 357 outlets last year, and now has nearly 5,000 restaurants consisting of 752 company-owned and 4,141 franchised in all 50 states and in 39 countries and territories. Beyond the U.S., the country with the single-most locations is China, with 244, as of the end of last year (annual SEC report).

In Hawaii, a Papa John’s worker is among the latest of scores of people affected by a recent hepatitis A outbreak, according to the state Department of Health. The unidentified employee worked at a restaurant in Waipahu on the island of Oahu, and brings to a total of 168 cases confirmed through yesterday. DOH investigators suspect the source of the outbreak was likely a product widely distributed primarily on Oahu (KHON-TV).

Judge John Bates
Bates

HUMANA: The federal judge hearing the Justice Department’s case to block Aetna’s $37 billion purchase of Humana has set a trial date for Dec. 5 — later than the companies had requested — and allowed 13 days for the proceedings. The date is a compromise between the two sides. During a hearing yesterday in Washington, U.S. District Judge John Bates said he was leaning toward an early November trial, but he later accepted the Justice Department’s arguments that date wouldn’t give the agency enough time to prepare. The insurers had argued for an earlier time frame, noting that the current contractual agreement between the two is subject to a Dec. 31 deadline. If the merger isn’t approved by then, Humana would have the option of walking away and potentially collecting a $1 billion breakup fee. Bates told the parties to proceed with the “expectation” that he will issue a ruling in mid-January  (Wall Street Journal and Bloomberg).

Antitrust cases are typically kept on a strict timetable set by the judge, who in this case is very efficient, said David Balto, a lawyer representing several consumer groups that oppose the insurance mega-mergers. Even though Aetna and Humana extended the deadline to close the deal by the end of this year, the litigation is likely to force them to extend the closing again (Courier-Journal). The DOJ last month sued to block the merger, arguing that it would likely raise consumer prices and stifle competition.

Bates was appointed to the bench in December 2001 by President George W. Bush (Wikipedia).

Ford Explorer Sport
Sport’s MSRP: $45,000.

FORD says professional Generation-Xers don’t always drive SUVs, but when they do they drive a Ford Explorer Sport, according to a new vehicle customer study by MaritzCX. the The vehicle has the highest percentage of Gen-X buyers of any non-luxury SUV in the United States, MaritzCX says (press release). X-ers are the spawn of the huge baby boom generation. There are no precise dates for when the group starts or ends; demographers have used birth years bracketed by the early 1960s to early 1980s (Wikipedia). Ford employs nearly 10,000 workers at truck and auto factories in Louisville; more about the automaker’s local operations.

KFC is opening a new restaurant today at Louisville International Airport, as part of an ongoing renovation of the terminal there (Courier-Journal).

TEXAS ROADHOUSE has reportedly backed out of plans to build a restaurant in the northern Chicago suburb of Mount Pleasant (Journal Online).

AMAZON‘s stock touched a new record trading high, $773.75, before easing back to a recent $771.51, up $2.95. It’s one of the Louisville area’s biggest employers, with 6,000 workers at distribution centers in Jeffersonville and Shepherdsville. More about Amazon here.

GE: The new GE Keurig Beverage Center prototype would be built right into the wall and replace basically every appliance that makes drinks, including coffee, soda, and smoothies. Wolf Appliances debuted a semi-similar mega-coffeemaker two years ago. The cost? Well over $3,000, and it didn’t even have the built-in blender.

Spaceballs posterThere’s no plan to make more Beverage Centers just yet (and no word on how much each one would cost), but Chris Bissig, GE Appliances’ manager of concept and brand development wouldn’t rule it out (CNET and Tech Insider).

CNET’s cruel conclusion: The gadget looks like something out of “Spaceballs,” the 1987 Star Wars parody starring director Mel Brooks, John Candy and Rick Moraines, featuring a character named Pizza the Hut.

Here’s a bad photo of what it looks like:

GE Beverage Center
That’s a pullout tray of Keurig cups is in the foreground.

Walmart’s $3B Jet buy hurting Amazon? (Wall Street says nope); a Humana DOJ loss could be Louisville’s gain; and Baxter Avenue Theatres plans big upgrades

A news summary focused on 10 big employers; updated 4:28 p.m.

Amazon vs. Walmart
Amazon’s stock (blue) rose and Walmart’s stock (red) fell today on the Jet deal.

AMAZON: Walmart’s $3 billion bet on discounter Jet may reinvigorate growth in its online shopping business, which has slowed in recent quarters even as Amazon’s overall sales have rocketed above $100 billion annually (CNN). Wall Street’s not holding its breath; Amazon’s stock rose a smidge and Walmart’s fell a bit by the time trading closed at 4 p.m. ET (Google Finance).

Jet logoEarlier today, news emerged that Amazon’s office has been searched by Japan’s Fair Trade Commission over its dealings with merchants who sell goods through the retailer, a person with knowledge of the matter told Bloomberg. The antitrust agency is looking into whether Amazon sought deals with sellers that gave it more favorable conditions over other e-commerce companies in one of its biggest foreign markets. It wasn’t immediately clear when the JFTC inquiry took place (Bloomberg).

The retailer’s shipping costs are skyrocketing, underscoring why it just unveiled its first branded Prime Air cargo plane. Amazon’s shipping expenses soared 43% vs. a year ago during the first half of the year. In 2013-2015, those costs were rising 29% to 32% annually. This year, it’s already on track to spend nearly $6 billion on shipping.

Amazon logo“Bottom line,” says ZD Net, “Amazon has no choice but to become more efficient than UPS and FedEx. If Amazon can use its own air fleet to even come close to its shipping vendors, it’ll potentially save billions of dollars simply by cutting out the middleman.”

Here’s a time-lapse video showing the new Prime Air Boeing 767 being readied for its debut this weekend at the annual Seafair air show in its corporate hometown of Seattle; more news coverage about Prime Air.

Amazon and UPS are both big employers in the Louisville area; UPS has 22,000 workers at its Louisville International Airport hub, and Amazon employs 6,000 at distribution centers in Jeffersonville and Shephardsville.

KINDRED has just filed its detailed quarterly 10-Q report with the Securities and Exchange Commission. The hospital and nursing giant reported strong earnings on Thursday (SEC document).

HUMANA could lose its Justice Department battle to win approval for the insurer’s proposed $37 billion merger with Aetna, but Louisville’s economy could wind up a winner — if the history of GE Appliances’ auction is a guide (WDRB).

In other news, the Baxter Avenue Theatres is adding powered reclining chairs and a full bar to the seven-screen Highlands complex at Mid-City Mall, an approximately $500,000 upgrade that will start in October (Insider Louisville).

Amazon’s Prime Air edges closer to takeoff (watch out, UPS); Ford China sales hit July record; and U.S. added 255K jobs in July, beating forecasts

A news summary focused on 10 big employers; updated 9:06 p.m.

Prime Air plane
Amazon’s new Prime Air 767 is operated by Atlas Air.

AMAZON today is showcasing its first branded air cargo plane during Seafair’s Air Show, an annual community celebration in the retail giant’s Seattle hometown. The Boeing 767-300, operated by Amazon’s air cargo provider Atlas Air, is flying in the show for thousands of Seattle residents and employees. In May, Amazon said it would lease 20 of the planes from Atlas for its nascent air delivery service. The 767’s appearance, complete with the company’s Prime Air livery, is the latest step in Amazon’s drive to take control of every phase of its logistics as it becomes both a customer and competitor of UPS, FedEx and other shippers (press release). Amazon and UPS are both big employers in the Louisville area; UPS has 22,000 workers at its Louisville International Airport hub, and Amazon employs 6,000 at distribution centers in Jeffersonville and Shephardsville.

Walmart’s reported negotiations to buy Amazon competitor Jet.com for around $3 billion would only put a small dent in the Seattle retailer (The Street). More news about the rumored Walmart-Jet talks.

UPS filed its detailed quarterly 10-Q financial report with the Securities and Exchange Commission today (SEC document).

FORD: Despite China’s slowing economy, Ford and its joint venture partners sold 88,189 vehicles there last month — a record — up 15% compared to a year ago (press release). Also, the automaker yesterday recalled approximately 830,000 vehicles to replace side door latches that may not be operating properly; the recall includes vehicles made in Louisville. They are 2013-15 Ford C-MAX, 2013-15 Ford Escape, 2012-15 Ford Focus, 2015 Ford Mustang and Lincoln MKC, and 2014-16 Ford Transit Connect vehicles sold or ever registered in certain U.S. states (press release). In Louisville, Ford employs nearly 10,000 workers at the Louisville Assembly Plant and Kentucky Truck Factory.

Naked Chicken Chalupa
Headed for menus nationwide.

TACO BELL will roll out its new Naked Chicken Chalupa — a taco with a shell made of fried chicken — across the country next year after testing it on the West and East Coasts (Brand Eating).

Trump and KFC
Not finger-lickin’.

KFC: Late Night host Seth Meyers joined other comedians ribbing GOP White House nominee Donald Trump this week, zeroing in on Continue reading “Amazon’s Prime Air edges closer to takeoff (watch out, UPS); Ford China sales hit July record; and U.S. added 255K jobs in July, beating forecasts”