These 49 Largest Florida Corps generated Total Pretax Earnings in 2011 of $18.9 bil, which was up a very robust 85% over such amount two years ago in 2009.
Now I wanted to see if these fabulous earnings also applied to smaller Florida Corps, which file with the SEC.
Thus, I found 27 Florida headquartered Smaller Corps filing with the SEC, which had Pretax Income or Pretax Loss of $40 mil or more in any of the most recent three years, and which weren't included in the 49 Largest Florida Corps. Thus, these 27 Smaller Florida Corps also did not have Pretax Income or Pretax Loss of more than $100 mil in any of the most recent three years.
These 27 Smaller Florida Corps nearly doubled the outstanding 85% earnings growth in the most recent two years of the 49 Largest Florida Corps. The Total Pretax Income in 2011 of these 27 Smaller Florida Corps was an off-the-charts 156% higher than such amount two years earlier in 2009.
Yeah, the Obama Administration created a very robust US economic environment, which permitted Florida companies of all sizes to do just fantastically on the earnings front in the most recent two years.
But a second story here is the earnings results by year.
The 49 Largest Florida Corps generated Pretax Income growth of 10% in 2011 over 2010, and of a substantially higher 67% in 2010 over 2009.
The 27 Smaller Florida Corps generated Pretax Income growth of 35% in 2011 over 2010, and of a substantially higher 90% in 2010 over 2009.
So why is it that these Florida Corps did so much better in 2010 than they did in 2011? I think you need to look at the political situation.
In both years, the President was the same.....a Moderate Democrat.
However, the US House was under Republican control in 2011, but under Democratic control in 2010.
Also, the US Senate had a lower Democratic majority in 2011 than it did in 2010.
In addition, the Florida Governor was a Very Conservative Republican in 2011, but was a Moderate Republican in 2010.
And the Florida State House and Florida State Senate both had more of a Republican majority in 2011 than they did in 2010.
So clearly, there was a substantial shift from Democratic control in 2010 to Republican control in 2011.
And this reduction in earnings growth even continued in the most recent 1Q 2012. The 49 Largest Florida Corps had their Total Pretax Income increase by only 4%, going from $4,065 mil in the 1Q 2011 to $4,212 mil in the 1Q 2012.
How could this change in political control make such a huge difference in Florida company earnings?
It is pretty clear to me that in 2010, a Moderate Democratic President, coupled most importantly with a US House in Democratic hands, but also having a US Senate in Democratic hands, and further with having more State Governors and State Legislatures in Democratic hands, did wonders for corporate earnings growth in 2010. With this political structure, economic stimulus, both much needed business income tax stimulus and wise, carefully-vetted investment spending, can occur on a robust scale. And this very strong economic stimulus was in full throttle starting in the 4Q 2009, and did Corporations ever reap the benefit of this by generating exceptionally strong profits.
The worse thing that can happen after a financial meltdown, and near depression, is a US government that just waits for the free markets to correct themselves.....a laissez-faire approach, so favored by so many Republicans. Fortunately for the country, the exact opposite to that wisely happened in 2009 and 2010.
But then in 2011 and the first half of 2012, the US government was unfortunately forced into a laissez-faire economic approach, due to an uncompromising US Congress stopping nearly every economic initiative of the Obama Administration. The focus of the US Congress was almost singularly on austerity, when the improving, but still clearly struggling, US economy was shouting out for more economic stimulus, wisely designed.
Thus, things stopped to a walk on the US economic front when the US House switched to Republican control with the 2010 election, coupled with the US Senate Democratic majority rule being significantly reduced, and with many US States switching from Democratic Control to Republican Control.
Case in point is Business Income Tax Reform, which the Obama Administration strongly supports, and which nearly all Republicans say they are behind. If the President's Framework for Business Income Tax Reform, presented more than three months ago, is strengthened by the US Congress and passed, I am pretty certain that all of the US economic problems, including US real GDP growth, US unemployment, US underemployment, and the US Deficit....would all be substantially improved, and on an ongoing sustainable basis over the long run.
However, the US House Ways and Means Committee must initiate the legislation on this critically needed Business Income Tax Reform. And what have they done so far? Absolutely nothing. I'm not kidding. On the other hand, if the US House was under Democratic control, I am pretty certain that this Business Income Tax Reform would have gotten out of the US House Ways and Means Committee by now and been placed on the US House Floor.
Instead, the Republicans in the US House are focused on attempting to pass an extension of the much lower Bush income tax rates on the wealthy, which increases the US Deficit by more than a trillion dollars over the next decade, and creates almost no US jobs. This continual off-focus approach to governing by the Republicans in the US House shows that they are clearly unfit to be reelected, due to either their gross incompetence on US economic issues, or to their only be interested in governing for the top 1% of the country.
On the other hand, when the President is a Democrat and the US House is in Democratic control, economic initiatives move forward, and they clearly did very robustly in 2009 and 2010.
While substantial US job creation doesn't necessarily result from substantially higher corporate earnings, I can clearly tell you one thing.....lower corporate earnings will undoubtedly result in a significant loss of US jobs. When corporate earnings absolutely tanked in late 2008 and in 2009, corporations were very quick to dramatically cut US full-time employees. And to give a recent illustration, when Hewlett Packard recently announced down earnings, it also announced it will be cutting 27,000 jobs, or 8% of its workforce. And Ohio-based Procter & Gamble, just recently taking a $452 mil Restructuring Charge, has to mean a significant loss of US jobs. And Michigan's Dow Chemical did likewise. And I have seen so many large Restructuring Charges made by Corporations in their 1Q 2012 Earnings Statements, made in the same quarter where their earnings growth has fallen off the cliff.
In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Asset Impairments, and Gains and Losses on both Debt Retirements and Asset Dispositions.
I use Pretax Income rather than After-tax Net Income, since so much of the change in effective income tax rates just happens due to financial engineering.
I excluded Corps in the Development Stage, and ones generating losses for many years.
Let me first show each of the 49 Largest Florida Corps. Below here is the Headquarters location and the Sector of each of these companies.
| Florida Largest Corps | Florida HQs | Sector |
| AutoNation | Fort Lauderdale | Retail |
| AV Homes | Kissimmee | Homebuilding |
| BankAtlantic Bancorp | Fort Lauderdale | Financial |
| BankUnited | Miami Lakes | Financial |
| BE Aerospace | Wellington | Public Buildings |
| BFC Financial | Fort Lauderdale | Financial |
| Brown & Brown | Tampa | Financial |
| Burger King Holdings | Miami | Retail |
| Carnival | Miami | Leisure and Entertainment |
| Chicos FAS | Ft Myers | Retail |
| Citrix Systems | Fort Lauderdale | Technology |
| CSX | Jacksonville | Transportation: Railroads |
| Darden Restaurants | Orlando | Retail |
| EverBank Financial | Jacksonville | Savings Institution |
| Fidelity Natl Fincl | Jacksonville | Financial |
| Fidelity Natl Info Svcs | Jacksonville | Financial |
| Fresh Del Monte Produce | Coral Gables | Foods |
| Geo Group | Boca Raton | Facility Support Mgt |
| Harris Corp | Melbourne | Technology: US Defense |
| Health Mgt Associates | Naples | Health Care |
| Heico | Hollywood | Aircraft Engines & Parts |
| HSN | St Petersburg | Retail |
| International Speedway | Daytona Beach | Leisure and Entertainment |
| Jabil Circuit | St Petersburg | Technology |
| Landstar System | Jacksonville | Transportation: Trucking |
| Lender Processing Svcs | Jacksonville | Financial |
| Lennar | Miami | Homebuilding |
| Lincare Holdings | Clearwater | Health Care |
| Marriott Vacations Worldwide | Orlando | Real Estate Agents & Managers |
| Mastec | Coral Gables | Construction |
| Mednax | Sunrise | Health Care |
| NCL Corp, Ltd | Miami | Leisure and Entertainment |
| Office Depot | Boca Raton | Retail |
| PSS World Medical | Jacksonville | Health Care |
| Publix Super Markets | Lakeland | Retail |
| Raymond James Fincl | St Petersburg | Financial |
| Rayonier | Jacksonville | REIT: Forest Products |
| Roper Industries | Sarasota | Industrial Instruments |
| Royal Caribbean | Miami | Leisure and Entertainment |
| Ryder System | Miami | Motor Vehicle Leasing |
| SBA Communications | Boca Raton | Communication Services |
| Seacor Holdings | Ft Lauderdale | Deep Sea Foreign Transportation & Freight |
| Spirit Airlines | Miramar | Air Transportation |
| Syniverse Holdings | Tampa | Communication Services |
| Tech Data | Clearwater | Technology |
| Tupperware | Orlando | Home Products |
| Watsco | Coconut Grove | Wholesaling |
| Wellcare Health Plans | Tampa | Health Care |
| World Fuel Services | Miami | Wholesaling |
And below here is the Pretax Income (PTI) or Pretax Loss of each of these 49 Largest Florida Corporations for each of the most recent three years, along with the related percentage changes in earnings, with the most recent fiscal year ends ranging from May 2011 to January 2012. BankUnited’s below 2009 Pretax Loss is for the 15 months ended December 31, 2009, since the 12 months ended December 31, 2009 information wasn’t available.
| Move to | ||||||
| More | More | Obama | ||||
| Republican | Democratic | Bump | ||||
| PTI(L) | PTI(L) | Two Year | ||||
| % | % | % | ||||
| Change | Change | Change | ||||
| Total | Total | Total | 2011 | 2010 | 2011 | |
| PTI(L) | PTI(L) | PTI(L) | vs | vs | vs | |
| 2011 | 2010 | 2009 | 2010 | 2009 | 2009 | |
| mils $s | mils $s | mils $s | ||||
| Florida Largest Corps | ||||||
| CSX | 2,888 | 2,546 | 1,746 | 13% | 46% | 65% |
| Publix Super Markets | 2,262 | 2,039 | 1,775 | 11% | 15% | 27% |
| Carnival | 1,912 | 1,979 | 1,806 | -3% | 10% | 6% |
| Harris Corp | 881 | 840 | 741 | 5% | 13% | 19% |
| Fidelity National Information Services | 744 | 771 | 301 | -4% | 156% | 147% |
| Darden Restaurants | 648 | 544 | 513 | 19% | 6% | 26% |
| Royal Caribbean | 607 | 516 | 152 | 18% | 239% | 299% |
| Roper Industries | 605 | 448 | 340 | 35% | 32% | 78% |
| Jabil Circuit | 481 | 247 | 18 | 95% | 1272% | 2572% |
| AutoNation | 461 | 381 | 349 | 21% | 9% | 32% |
| Raymond James Financial | 451 | 356 | 236 | 27% | 51% | 91% |
| Citrix Systems | 430 | 334 | 194 | 29% | 72% | 122% |
| Wellcare Health Plans | 418 | 193 | 198 | 117% | -3% | 111% |
| Fidelity National Financial | 415 | 549 | 315 | -24% | 74% | 32% |
| Mednax | 353 | 311 | 288 | 14% | 8% | 23% |
| Health Management Associates | 337 | 287 | 228 | 17% | 26% | 48% |
| Tupperware | 331 | 300 | 265 | 10% | 13% | 25% |
| BE Aerospace | 323 | 211 | 205 | 53% | 3% | 58% |
| Tech Data | 323 | 304 | 235 | 6% | 29% | 37% |
| Rayonier | 306 | 233 | 154 | 31% | 51% | 99% |
| BankUnited | 303 | 313 | (1,034) | -3% | 130% | 129% |
| Lender Processing Services | 303 | 510 | 482 | -41% | 6% | -37% |
| Lincare Holdings | 290 | 298 | 223 | -3% | 34% | 30% |
| Ryder System | 279 | 186 | 144 | 50% | 29% | 94% |
| Brown & Brown | 271 | 266 | 255 | 2% | 4% | 6% |
| World Fuel Services | 238 | 178 | 150 | 34% | 19% | 59% |
| Chicos FAS | 224 | 179 | 110 | 25% | 63% | 104% |
| HSN | 200 | 164 | 121 | 22% | 36% | 65% |
| Watsco | 195 | 162 | 78 | 20% | 108% | 150% |
| Landstar System | 180 | 136 | 110 | 32% | 24% | 64% |
| Burger King Holdings | 168 | 284 | 285 | -41% | 0% | -41% |
| Mastec | 145 | 154 | 79 | -6% | 95% | 84% |
| Heico | 138 | 109 | 88 | 27% | 24% | 57% |
| NCL Corp, Ltd | 127 | 23 | 67 | 452% | -66% | 90% |
| Geo Group | 124 | 106 | 112 | 17% | -5% | 11% |
| Spirit Airlines | 123 | 20 | 65 | 515% | -69% | 89% |
| PSS World Medical | 119 | 110 | 84 | 8% | 31% | 42% |
| International Speedway | 114 | 75 | 48 | 52% | 56% | 138% |
| Marriott Vacations Worldwide | 110 | 112 | (2) | -2% | 5700% | 5600% |
| Fresh Del Monte Produce | 101 | 60 | 132 | 68% | -55% | -23% |
| Lennar | 98 | 95 | (760) | 3% | 113% | 113% |
| EverBank Financial | 82 | 182 | 88 | -55% | 107% | -7% |
| BFC Financial | 45 | (146) | (325) | 131% | 55% | 114% |
| Office Depot | 33 | (6) | (285) | 650% | 98% | 112% |
| Seacor Holdings | 27 | 328 | 163 | -92% | 101% | -83% |
| Syniverse Holdings | 7 | 145 | 106 | -95% | 37% | -93% |
| BankAtlantic Bancorp | (68) | (145) | (221) | 53% | 34% | 69% |
| SBA Communications | (125) | (144) | (141) | 13% | -2% | 11% |
| AV Homes | (149) | (36) | (62) | -314% | 42% | -140% |
| Total all 49 | 18,878 | 17,107 | 10,219 | 10% | 67% | 85% |
Now let me show each of the 27 Smaller Florida Corps. Below here is the Headquarters location and the SEC Standard Industrial Classification of each of these companies.
| Florida Smaller Corps | Florida HQs | SEC Standard Industrial Classification |
| Bankrate | North Palm Beach | Services: Business Services |
| Bluegreen | Boca Raton | Real Estate Agents & Managers |
| CNL Lifestyle Properties | Orlando | REITs |
| Dycom Industries | Palm Beach Gardens | Water, Sewer, Pepeline, Power Line |
| Elizabeth Arden | Miramar | Perfumes & Cosmetics |
| Flag Intermediate Holdings | Ft Lauderdale | Wholesale: Metals Service Centers |
| Interline Brands | Jacksonville | Wholesale: Hardware & Plumbing & Heating Equipment |
| Interval Leisure Group | Miami | Real Estate Agents & Managers |
| KForce | Tampa | Services: Help Supply Services |
| Metals USA Holdings | Fort Lauderdale | Wholesale: Metals Service Centers |
| Metropolitan Health Networks | Boca Raton | Services: Office & Clinics of Doctors |
| National Beverage | Ft Lauderdale | Soft Drinks |
| National Retail Properties | Orlando | REITs |
| OSI Restaurant Partners | Tampa | Retail: Eating Places |
| Perry Ellis International | Miami | Mens & Boys Furnishings & Work Clothing |
| Petmed Express | Pompano Beach | Retail: Proprietary Stores |
| Universal Insurance Holdings | Ft Lauderdale | Fire, Marine & Casualty Insurance |
| UNR Holdings | Orlando | General Building Contractors: Residential Buildings |
| Vector Group | Miami | Cigarettes |
| Web.com Group | Jacksonville | Services: Prepackaged Software |
| Winn-Dixie Stores | Jacksonville | Retail: Grocery Stores |
| St. Joe | Watersound | Land Subdivider & Developer |
| Stein Mart | Jacksonville | Retail: Family Clothing Stores |
| Steiner Leisure | Coral Gables | Services: Personal Services |
| Sun Hydraulics | Sarasota | Fabricated Metal Products |
| Sykes Enterprises | Tampa | Computer Integrated Systems Design |
| TIB Financial | Naples | State Commercial Bank |
And below here is the Pretax Income (PTI) or Pretax Loss of each of these 27 Smaller Florida Corporations for each of the most recent three years, along with the related percentage changes in earnings.
| Move to | ||||||
| More | More | Obama | ||||
| Republican | Democratic | Bump | ||||
| PTI(L) | PTI(L) | Two Year | ||||
| % | % | % | ||||
| Change | Change | Change | ||||
| Total | Total | Total | 2011 | 2010 | 2011 | |
| PTI(L) | PTI(L) | PTI(L) | vs | vs | vs | |
| 2011 | 2010 | 2009 | 2010 | 2009 | 2009 | |
| mils $s | mils $s | mils $s | ||||
| Florida Smaller Corps | ||||||
| Bankrate | 53 | (8) | (15) | 763% | 47% | 453% |
| Bluegreen | 57 | 67 | 34 | -15% | 97% | 68% |
| CNL Lifestyle Properties | (46) | (15) | (15) | -207% | 0% | -207% |
| Dycom Industries | 36 | 11 | 40 | 227% | -73% | -10% |
| Elizabeth Arden | 56 | 23 | (14) | 143% | 264% | 500% |
| Flag Intermediate Holdings | 93 | 23 | (68) | 304% | 134% | 237% |
| Interline Brands | 62 | 58 | 43 | 7% | 35% | 44% |
| Interval Leisure Group | 66 | 69 | 64 | -4% | 8% | 3% |
| KForce | 43 | 33 | 22 | 30% | 50% | 95% |
| Metals USA | 99 | 18 | (86) | 450% | 121% | 215% |
| Metropolitan Health Networks | 48 | 42 | 23 | 14% | 83% | 109% |
| National Beverage | 63 | 51 | 39 | 24% | 31% | 62% |
| National Retail Properties | 91 | 81 | 86 | 12% | -6% | 6% |
| OSI Restaurant Partners | 77 | 55 | (36) | 40% | 253% | 314% |
| Perry Ellis International | 44 | 36 | 17 | 22% | 112% | 159% |
| Petmed Express | 33 | 41 | 36 | -20% | 14% | -8% |
| Universal Insurance Holdings | 34 | 62 | 46 | -45% | 35% | -26% |
| UNR Holdings | 49 | 31 | 21 | 58% | 48% | 133% |
| Vector Group | 66 | 70 | 88 | -6% | -20% | -25% |
| Web.com Group | (63) | (17) | 0 | -271% | NM | NM |
| Winn-Dixie Stores | (28) | 37 | 59 | -176% | -37% | -147% |
| St. Joe | 3 | (28) | (42) | 111% | 33% | -107% |
| Stein Mart | 32 | 53 | 34 | -40% | 56% | -6% |
| Steiner Leisure | 58 | 52 | 43 | 12% | 21% | 35% |
| Sun Hydraulics | 58 | 32 | 2 | 81% | 1500% | 2800% |
| Sykes Enterprises | 64 | 31 | 71 | 106% | -56% | -10% |
| TIB Financial | 5 | (52) | (42) | 110% | -24% | 112% |
| Total all 27 | 1,153 | 856 | 450 | 35% | 90% | 156% |
I do think US companies, the US economy, and US job creation would all be helped immensely if the recalcitrant US Congress would start working with the Obama Administration on much needed, bold, targeted like a laser, quick-hitting, highly effective, short-term economic stimulus, which is also wisely designed to get the maximum bang for the buck. And especially for Florida's sake, a piece of this economic stimulus must be the ability for as many home owners as possible, including those underwater, to be able to quickly refinance their mortgages to the prevailing lower interest rates, and at little cost to refinance.
