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Show The Balt LakeTribune BUSINESS Mi CONSUMER CORNER, C-7 Indicators S&P 500 Ka . NYSE OM , ) NEWS . SERVICE’Ls eer caus The news hit the market like 3 Peon a black... followed, with the Dowclosing off only 25 points. To When wordof Treasury Seere- Casual eoserver the’ markets Ree fleeting reaction might indicate Ll) ss crossed the tape Wednesday that Rubin was less important 1993 morning ema reigned. than everyoneseemedto believe aa hoe plunged as much as 213 points, aeSoak a eon as ae w Me | The DowJonesindustrial average | E ne ae : ly credited with helping to prope! 125, jie Bloomibera) Utah Index | measures the | and the bond market plowed throughseveral keytechnical indicators. stock performance | Of thestate's | major publicly nes companies In the Chicago Board of Trade Treasuryfuturespits, “It was era zy.” noted Rick Santelli, vice president at Sanwa Futures, who Clinton administration — a Gold- Argues works on thetrading floor ee mptionly usted a ae ™&? ae But the craziness subsided within minutess Afterhitting a low at 8:47 a.m., Verec. Along with Federal Keserve Chairman Alan Greenspan, Rubin ahelpadi vcaink a. vestlens DERE REDO CARL 8: Ukcatless til 9:10 a.m., whenthey brokeout See SUMMERS, PageC-7 i Stock prices were mixed Wednesday as iue-chips recovered most of a sharp drop ng Treasury Secretary Robert Rubins ation, and the broader market rose on igth in technology issues Investors Put $9.5 Milli Into Draper's Intlogs me Inc. of Drapersaid Wednesday it has secured $9.5 mil- lionin its latest roundofinstitutional financing. I'he funding was secured from a number ofinvestors, including The Zeron Group, a Japan-based venture capital firm ‘The fundingwill be used for prod- uct development as well as for sales and marketing efforts, said Tod Froh- nen. Intelogis president andchief ex- bondprices ebbedandflowed un- ple computerusers to simultaneously share Internet access, printers and involves plugging PassPort Plug-In adapters into electricaloutlets, at taching computersor printers to the adapters via parallel cables andin stalling software onto a personal com: puter Zions Bancorp. on Top Zions Bancorporation of Salt Lake 9,300 by Dec. 31 Zions, which operates branch of Arizona, California Colorado, Idaho, Nevada, New Mexi ‘0 and Washington, ranked 987th on Company aimsto raise $75M by selling its preferred stock BY GUY BOULTON THE SALT LAKE TRIBUNE Franklin CoveyCo. baffled stockholders Thursday byannouncing that it plans to raise $75 million by selling preferred stock to an investment group. The move marks an abrupt changefor a company that has bought back morethan 7 million shares since 1995, including buying shares as recently as March. newsigns Further, Franklin Covey is selling preferred stock Their store at 270 S. Main St couldnot enter the contes that pays years It's beenset up to makeit almost ni are not the only downtown busines owners questioning the guidelines Niko Linardakis, owner of Con nie’s Pizza next to the Birkenstock store also was exclidedbe ange he has beenat his locationforless than two y If there’s going to be a competi tion, it should be with all the play a inaeaaeis said. That stirs South. Businesses wereallowedto enter beforethe April 5 deadline if they had annual sales of less than ).000, were located at street lev el ina high-visibility location, had at least a three-year leaseand had con: ducted business for two years in the sam location heen se jury made up of architects, graphic designers andvalliance representatives will choose 10 busi nesses to work with architects to design ne punts sigae Fru help pay for the new signs An alliance committee set up the contest criteria and determined eli businesses from 250 East to 490 years in the same location because Business Week for Teens West and from North Temple to400 thealliance wants to award enter the week, students will run afictional manufacturing company, making deci- their signs, said Bob Farrington, ex ecutivedirector of the nonprofit al liance, which serves about 3,500 gible businesses should have two SLOCHires Veteran man resources and other areas of business ta Olympics, has been hired as the Salt and develop a logo for their product The application deadline is May 19 Call 364-3631 for information Business Expo Monday There is such a thing as a free lunch. The Utah Small Business Develop. ment Centers and Utah Business Re source Network will kick off “Cele brating Utah Business Week” with a free lunch and business expo Monday at the Gallivan Center in downtown Laura Lamando, a veteran of the Atlan. Lake Organizing Committee licensingdi rector She is filling the position previously held by Rod Hamson, who resigned from SLOC after being caught up in the Olym- pic bribery scandal because he was a mem ber of the bid-committee administration SLOC expects to receive $40 million in royalties fromits licensing program. Lamando worked for Coca-Cola during the 1996 Summer Games, managing retail development of its “OlympicCity,” anin practive theme park adjacent to Atlanta's nnial Park. She joins SLOC fromthe New York City office of Medallion Asso- a marketing-services company Salt Lake City Activities run from 11 a a.m. until 2 ¢ clients include Barnes and Noble. businesses and government agencies. Gov. Mike Leavitt proclaimed May Her primary responsibility there was to develop new business, but she also direct ed the development of licensing programs for MTV and VH1, In addition, Lamando pm They will include more than 50 booths providing information about 17-21 Week rating Utah Business The transaction, however, stunned the company’s largest stockholder. “If it doesn’t work out, proachedthat criteria tion, to paraphrase Mr. Covey Franklin Covey, with its strong h flow and relatively low debt, could borrow mone: at an after-tax cost of 4 percent, Yacktman aid. Instead, it has opted toraise moneyby paying a 10percent dividend I'm not a rocketscientist, but when I went to school, 4 percent wa alot better than 10 percent,” Yacktman said Franklin Covey work for ewer uni oeases stat ca See ATLANTA, Page C-7 based in West ValleyCity, plans to use the moneyto establish a presence in electronic rom enne etna UW Nua mann CURE base, hesaid While he would like to see the contest opened up, Linardakis ac knowledged the alliance is trying to said Don Yacktman, president of Yacktman Asset Management, a mutual-fund and money-management companythat owns more than 3.3 million shares of Franklin Covey stock. “It seems to me they areina lose-lose situa- Farrington said If the committeehad set theminimum requirement at one year. people in business for only six months would have complained, he a vial sarees helping: estat Glenn Fisk agreesis important helping estab be lished businesses causethey haveinvested in the com munity. But the alliance also should this could look like the dumbest deal of the decade,” priseslikely to survive We were fair in how we ap- commerce, selling its planners and providing corporate training overtheInternet. 1 he moneyy also could beusedfor future acquisitions ‘Our energy is centered around making sure we help Main Street businesses after have adequate capital to grow,” See SIGN CONTEST, Page C-10 how weput that capital to use Rowberry said “And the measure of whether this is a good deal is See FRANKLIN COVEY, Page C-10 Self-Audits — Utah’s Friendly Way to Collect Back Taxes OfAtlanta Olympics To License Products They also will produce a radio ad cer = sions about research and develop: ment, marketing, transportation, hu Jon Rowberry, Franklin Covey’s chief executive offi- alt Lake Teib Glenn Fish and his wife, Lynette, say the DowntownAlliance's sign contestis unfair to their fledgling store, Lynette’s Birkenstock Plus. “If you can faction. rate considera- money. The preferredstock also can be converted to commonstock at $14 a share. “Wethink the deal we madeis appropriate,” said entrants demonstratethey had been at their locations for at least two The Fisks on April 30 sent aletter 10 percent dividend —a bly higher than the company’s cost of borrowing it did not meet a requirement that to thealliancestating their dissatis: ree Brazil and Russi ussia themin a contest to help several Lynnette Fisk said. eg Value of the dollar Dumbfounds Shareholders downtown businesses to improve The programruns Aug. 1-7. During bailoutsser" alts $20bilion Ina Covey’s Plan the magazine's Fortune1,000 list which appeared in the April 26issue It was thefirst time Zions has ap: peared on the list annual Utah Business Week in Logan. showdown between Clinton, Congress 80°93 Shee ee ee four winners will split $7,500 to about business at the chamber's 19th: intervenes to prop up Agreement) federal debt default during crafts Thal baht: IMF oanlexico duning pesocrisis creativity Thecontest ismeanttoencourage The Salt Lake Area Chamber of Commerce is offering 200 high school students the opportunity to learn appro reductionplan downtown businesses get money for /ortune magazine's annual list of the considers price appreciation andreinvestment of any dividends. If $1,000had been invested in Fionssiock-on'D 1988, and all dividends had been reinvested, the investment would have been worthap: thefallen her husband, Glenn, hopedforhelp. from the Downtown Alliance. But the Fisks say the alliance snubbed qualify, you obviously don't need their help nual total return to investors, which Criticized for not bolstering juggles funds to prevent After hanging on when other businessesfailed. LynnetteFisk and impossible for anyone to qualify nation’s 1,000largest companies. Companies were ranked based on their 10-year average compoundan Becomes Treasury secretary FreeTrade construction on Salt Lake City’s Main Street last year City providedthe greatest total re- turn to investors among 44 commercial banking companies includedin NAFTA (North American Economic BY PHIL SAHM THE SALT LAKE TRIBUNE Lynnette’s Birkenstock Plus shoe store managedto survive light-rail 1998 Tappedto hea National Council chs & Co. bigwig whom 1993 Rules discriminate against young businesses,they say Incorporated in January 1997, pri files without pulling cable. Installation of the PassPort Plug-In Network ewes Walt suecl sian inthe 1999" Is Not Fair ogy that transmits high-speed digital The company sells the PassPort Plug-In Network, which allows multi- hi 11026.15 Sign Contes ecutive officer signals over electrical wiring for homeand small business networking. the 1g90seconomic boom that has sent stock prices soaring and kept inflation in check He was wall Streets SKE $79billion Merchants: vately held Intelogis markets technol fices in Utah, uF budget moves into Budgetdeficit, surplus hasn't looked back.” ut disappeared tary Robert Rubin's resignation Utah’s7 Top Performers Rubin, credited with spurring the U.S. economic boom: great bounce, and the market Stock prices ) Under Rubin’s Watch Highlights of the tenure of Treasury Secretary Robert for good, Santelli said. “Wehad a ene and just as fast, it all +8 39 Intelogis MAY 43, 1999 @ DILBERT, C-40 Treasury secretary’s exit rocks market, but recovery showsfaith in successor NASDAQ aoe M BUSINESS GLANCE, C-8 Rubin Revered ‘Like a Superher Market Dow | Industrials ME UTAH BRIEFS, C-7 Page C-6 BY JUDY FAHYS share of taxes,” It has been people doing the howling lately at the Foothill Animal Clinic in Salt Lake City Clinic owner Brad Wilson has had to raise some prices all to cover taxes he has mistakenly failed to collect. Plus, he also must pony up state taxes h should have collected for the past three ears It's one of those things, a: small businessman, that ts goingto hil very hard,” said Wilson. “Unfortunately, as veterinarians, we're not businessmen The Sait Lake City vet learned about the mistake last month, when he was con tacted by the Utah Tax Commission as part of its lat elf-audit program for businesses The commission Auditing Division contacts certain businesses each year to help them comply with the law voluntari ly. ers the Chiropractors, lubricating-oil retail and animal-care pre busine sionals are wgments that have been most recently for these ‘self audits Increasing voluntary tax compliance helpsto ensure that tors in simi lar indifstrie wre remitting their said tax commission spokeswomanJanice Perry Gully THE SALT LAKE TRIBUNE fair She said self-reviews let businesses calculate their owntax liability. Through them, companies not only becomefamiliar with laws pertaining to their indus. try, but they also avoid theintrusion of state auditors who otherwise might have been dispatched to study theofficefiles. This system allowed the commission to collect an additional $92,000 in taxes from 202 chiropractors, said Gully. The commission, which hadsent 371 self-re- views to chiropractors, licensed 91 of them to collect sales taxes. Of the 520 lubricating-oil retailers who received self-reviews, 33 obtained licenses tocollect the lubricating-oil fee The commission collected about $50,000 from this mailing, About 400 veterinarians recently re ceived 17-page packets that answered frequently asked questions, illustrated taxable and exempt items and identified relevant parts of the tax code, Theve then wereaskedto review specific ar suchas sales and purchases, Wilson learned he should have been adding tax to thecost of drugs customers bought to givetheir pets at home(but not on drugs administered in the office). He alsodiscoveredhe should havepaid tax es on the mark-upvalue of special pet foods. One bit of good news was that, like doctors, lawyers and other professionals, he was not expectedto collect tax for his services. Many services long have been exempt fromsalestax Another bit of good news was that thosebusinessesthat paidtoolittle don’t face a penalty, as long as they cover what they owe for the past three years. The tax commission has only requested the underpayments andinterest Kathleen Ford, president of the Utah Veterinary Medical Association, said she has not d from many vets who shared Wilson's misunderstanding of the sales-tax rules. In most cases, the ac counting professionals for the practices have been aware of don'ts, she said es-tax do's and Ford said some callers have com plained about getting “divergent an. swers’ from the Tax Commission, so the association's board has addedthe issue to meeting agenda for today Veterinarians, just like all small. business people, they pay their taxes and they don't mindthat |
