
Seven Firms in Top Ranks for 10 Years
Surviving the past decade the wrenching early 90s
recession, the frenzied dot-com runup, the bubble burst and post-Sept. 11
downturn has been no small feat.
The maelstrom pulled under many once-powerful L.A.
companies.
But seven of the regions top 25 private companies
of a decade ago still rank at that position today. And there are no glitzy
flashes in the pan among them.
They are Parsons Corp., California Dairies Inc., PMC
Global Inc., Topa Equities Ltd., Sunkist Growers Inc., Tutor Saliba Corp. and
Wherehouse Entertainment Inc.
You have to have a pulse on whats happening in
your industry and an excellent management team in place to survive in the long
term and thrive, said Gary Korsmeier, chief executive of California Dairies.
All these companies have that or they wouldnt still be here.
Despite their record, it hasnt all been good news.
Two of the six reported substantially lower revenues in 2000 than they did a
decade earlier and all face significant challenges in their respective
industries given the current economic downturn.
And while some other, faster-rising companies at the
top of the list 10 years ago have merged, been bought out or gone public, its
also true that many of those companies have either lost their dominant positions
or, in some cases, gone bust.
Its generally true, even for public companies,
that to remain in the top 10 or 20 percent, you cant forget what your main
business is. But at the same time you cant ignore changes in the marketplace,
said Parsons Chief Executive Jim McNulty. These companies have done that.
Tutor-Saliba President Ron Tutor added that, there are a lot of companies that
flash in the pan. The question is where are they in 10 years? Are they still
generating revenues? Are they still hiring people? Real success is something you
achieve over a long period of time.
These six are testimony to long-term staying power.
Heres a look at the paths these companies have traveled over the past
decade.
Parsons Corp.
For Pasadena-based Parsons, the name of the game
over the past 10 years has been diversification. During that time the company
more than doubled its annual revenues from $1 billion in 1990 to $2.4 billion
in 2000.
Without abandoning its core engineering and
construction business, Parsons has tapped its technological expertise to move
into telecommunications, pharmaceuticals and vehicle inspections. After entering
that business in 1996, the companys diagnostic machines and data transmission
services now handle vehicle inspections for California and several other
states.
Parsons is not the same company it was (10 years
ago), not even close, said McNulty. Weve evolved and changed as the world has
changed. If you dont do that, you cant remain a top company.
California Dairies Inc.
Of the seven survivors, California Dairies has
undergone the most dramatic makeover. Changes have included a new name and a
1999 three-way merger that combined the resources of two Northern California
dairy companies under the California Dairies name and management.

We felt, strategically, we needed to have more
representation throughout California. Now we represent about 42 percent of the
milk sold in California, said Chief Executive Gary Korsmeier, adding that
California is the biggest dairy-producing state in the nation.
California Dairies operates as a cooperative owned
by 700 California dairy farmers. Much of the milk produced on its farms is made
into butter, cheese and powder.
Korsmeier said the companys growth has been spurred
by consolidation in the supermarket industry that has left just a handful of
major chains in the state.
We needed to consolidate to be in a position to
service those larger accounts, he said.
Although per-capita milk consumption is not
increasing, California Dairies has benefited from growing demand caused by the
states expanding population. California Dairies generated revenues of $1.8
billion in 2000, up from to $531.9 million in 1990
PMC Global Inc.
Its also been an active decade for Sun Valley-based
PMC Global, a highly diversified and closely held conglomerate with more than 20
distinct companies making products ranging from semiconductors for the B-1
Bomber to saccharin to childrens bubble bath.
Although it remains near the top of the Business
Journal list, with $877 million in 2000 revenue, PMC Global has seen its
fortunes fall somewhat in the past decade. Its 1990 revenues were more than $1
billion.
Philip Kamins, president of PMC, said the company
has focused on buying small and mid-size companies with profitable niches in a
number of industries, several of them defense-related.
For some of these larger defense companies,
divisions with contracts in the $100 million to $150 million range arent worth
it, Kamins said. For us, they are.
Kamins said that over the past decade PMC has sold
off several of its assets that were lagging in their respective
industries.
As Jack Welch said, Unless you are No.1 or No. 2
in your industry, its not worth it. I think those companies that (have
remained at the top of the list) are No. 1 or No. 2 in their industries, and
thats why theyve survived and done well.
Topa Equities Ltd.
Headed by one of the biggest names in Los Angeles
business, John Anderson, Topa Equities is another highly diversified company
that has prospered during the past decade in large part because of its
flexibility.
Chief Financial Officer Brenda Seuthe said
Andersons business empire, which now counts upwards of 30 companies in
businesses ranging from insurance and automobiles to agriculture and real
estate, has acquired compatible businesses while trimming underperformers to
improve liquidity.
After taking a bath on its banking holdings in the
early 1990s, the company sold Topa Thrift and Loan and Topa Savings in 1996
while upping its Silver Star Automotive Group with the purchase of several new
dealerships.
The fact that we are so closely held gives us the
mobility to act quickly. We dont need a board resolution to make a move,
Seuthe said. Mr. Anderson is very hands-on, and he doesnt have to answer to
anybody but himself.
Sunkist Growers Inc.
Like California Dairies, Sunkist Growers is a
cooperative owned by its farmers, a network of 6,500 citrus growers in
California and Arizona.
Tracing its roots back to 1893, the Sunkist brand
has become one of the most established names in the agriculture industry,
drawing thousands of growers into its fold.
In the past decade, foreign competition and untimely
freezes have eaten into Sunkists revenues. The company had revenues of $847
million in 2000, enough to place it No. 18 on the Business Journal list but down
from $1.1 billion a decade earlier.
Tutor-Saliba Corp.
Perhaps no company has benefited more from increased
spending on public works projects in California than Tutor-Saliba, which grew
its revenues to $725 million in 2000 from $447.8 million a decade earlier.
But now the company is in danger of being cut off
from public money.
In July, a jury ordered Tutor-Saliba to pay the
Metropolitan Transportation Authority nearly $30 million for business misconduct
on the Metro Red Line in Hollywood. Tutor-Saliba is appealing.
We have no doubt that it will be reversed and we
will be vindicated, Tutor said.
In the meantime, Tutor said, he is committed to
slow, steady growth that has made the company a top public works contractor in
the state.
Wherehouse Entertainment Group
None of the businesses on both the 1991 and 2001
lists of the top private companies has faced more adversity in the past decade
than Torrance-based Wherehouse Entertainment, which survived a bankruptcy four
years ago to climb back to 20th on the list this year.
Wherehouse revenues climbed to $858 million in 1999
from $452 million in 1990, but they dropped down to $766 million in 2000.
In 1998, Wherehouse purchased Viacom Corp.s 378
Blockbuster Music stores, but earlier this year in the midst of an industry
downturn, the far-flung music retailer sold off 64 of its stores southeast
United States. Wherehouse still operates 414 stores nationwide, including 70 in
Los Angeles County.



