Business briefs for April 4, 2001

Wednesday, April 4, 2001 | 11:17 a.m.

LV exterminator sued over trade secrets

A Las Vegas pest control company sued a former employee and his company, alleging he used its proprietary company information to start a rival business.

In a Clark County District Court suit, Magic Wand Pest Control Inc. sued Hubert Williams and Big Foot Pest Control, alleging he used Magic Wand's "bug-proofing" methods and procedures, budgets, operations expenses, customer lists and methods of servicing customers to start his business, Big Foot.

The suit alleged the defendants competed unfairly by allegedly falsely telling Magic Wand's customers that Magic Wand was out of business and "improperly performing its work."

The defendants could not be reached for comment.

Information list, timetable set on rate request

The presiding officer hearing Sierra Pacific Resources' comprehensive energy plan rate request has issued a list of financial information the company must submit to regulators. Sierra Pacific owns Nevada Power Co. in Las Vegas.

Richard McIntire, the Public Utilities Commission member hearing the controversial $311 million rate increase request, also issued a timetable for consideration of the plan and listed intervenors in the case.

The rate increase, requested Jan. 29, took effect March 1, but the PUC ordered hearings for Sierra Pacific to justify the increase. The increase raises the average residential customer's rates by 17 percent.

McIntire's order, issued last week, requires 30 financial reports including detailed records of revenues, expenses, equity positions, investments and costs of capital associated with the company's plan, with written testimony due April 27.

Intervenors and regulators will review the documents and McIntire will conduct hearings through Aug. 23.

Consumer Advocate Tim Hay has said he would oppose the rate increase and on Friday said he was happy that McIntire is seeking the information generally required in a formal rate increase request.

Other intervenors in the case include MGM MIRAGE, Park Place Entertainment and Mandalay Resort Group; the Sahara hotel-casino and Station Casinos, represented by the Nevada Energy Buyers Network; the Union Plaza, El Cortez, Gold Spike, and the Las Vegas Club hotel-casinos; Sprint; and the Southern Nevada Water Authority.

Q sports club changes name after deal

Q The Sports Club in Las Vegas has been renamed Q The Sports Club by 24-Hour Fitness as part of a nationwide conversion of all its sports clubs after the Q club chain was acquired by Pleasanton, Calif.-based 24-Hour Fitness in November 1999.

Johnny Steel, the Q club's general manager, said the name change occurred in January but the signs outside its building at 601 South Rainbow Blvd. haven't changed.

Penn Clarke, 24-Hour Fitness's spokesman, declined comment on the terms of the deal. "The Q has a large number of well-equipped clubs, and the acquisition fits with 24-Hour Fitness's national expansion."

Clarke said members of 24-Hour Fitness can use the Q's facilities if they have a Sporting All Clubs pass. Q members, who already own such a pass when they signed on as Q members, can use 24-Hour Fitness without membership upgrades.

24-Hour Fitness, which has 435 sports clubs nationwide and is owned by Fitness Holdings Worldwide of San Francisco, has 12 clubs and more than 89,000 members in the Las Vegas area.

Richfield, Ohio-based Q The Sports Club, which was owned by Frank Leonesio, president of Q The Sports Club Inc., has 8,000 members in the Las Vegas area and some 200,000 members nationwide.

Lake Mead Hospital owner posts higher profit

SANTA BARBARA, Calif. -- Tenet Healthcare Corp., the second-largest U.S. hospital chain, said profits soared in its third quarter as it cut costs and concentrated on treating ailments that generate higher revenues.

Tenet owns Lake Mead Hospital in North Las Vegas.

The Santa Barbara-based company posted operating net income of $198 million, or 60 cents per share, compared with $152 million, or 48 cents, a year earlier. The results beat Wall Street forecasts of 58 cents per share.

Revenues for the three months ended Feb. 28 totaled $3.04 billion, up nearly 7 percent from the same period a year earlier.

Tenet is focusing on patients with medical conditions that typically generate higher revenues. The company said cardiac admissions rose more than 8 percent compared with the third quarter a year earlier, while admissions in the orthopedic and neurology areas were up nearly 6 percent.

Meanwhile, the company said admissions for the flu, which generates significantly lower revenues, were down more than 12 percent.

The company is also benefiting from higher Medicare reimbursement rates. In addition, Tenet has raised prices in recent months for insurance companies and managed care providers.

Park operators narrow losses

The company that owns Las Vegas' All-American SportPark sports theme park narrowed its losses on continuing operations in 2000, but continued to lose money on enterprises it has closed and plans to sell.

In an annual report filed with the Securities and Exchange Commission Monday, All-American SportPark Inc. reported revenues from continuing operations of $2.5 million in 2000 compared with revenues of $2.2 million in 1999. The company reported operating income of $117,339 last year compared with an operating loss in 1999 of $447,122.

But the net loss, including those from discontinued operations, was $11.1 million, $3.54 per share, in 2000 compared with a loss of $3.8 million, $1.27 per share, a year earlier. The larger loss was attributed to higher interest payments on the primary SportPark note, now in default.

Company officials said they still plan to sell the theme park this year and are uncertain whether they would retain any interest in it. However, the company plans to continue to own and operate the adjacent Callaway Golf Center, a lighted nine-hole par 3 golf course with a 113-station driving range, and a clubhouse including a pro shop, restaurant, bar and a teaching facility.

Shares plunge on reporting delay

STAMFORD, Conn. -- Shares of Xerox Corp. plunged 20 percent Tuesday after the company said it would delay filing its year-end financial report to allow outside auditors to conduct a more thorough review.

Xerox, which is facing an investigation of its finances by the Securities and Exchange Commission, said Monday that the independent auditing firm, KPMG, has not raised any issues so far.

Nevertheless, investors weren't pleased, sending shares down $1.23 to $4.77 in trading Tuesday on the New York Stock Exchange.

Xerox was supposed to file its 10-K statement -- the company's annual report -- with the SEC in March.