UP IN SMOKE: BUSINESS NORTH CAROLINA's annual list of public companies loses a famed tobacco name, gains some promising biotech ventures.

AuthorMildenberg, David
PositionTOP 50 PUBLIC COMPANIES - Directory

Americans' declining passion for smoking, salty snacks and community banks is evident in BUSINESS NORTH CAROLINA's annual list of the state's largest public companies. Tobacco giant Reynolds American Inc. and snack-maker Snyder's-Lance Inc., two venerable companies with roots dating back more than a century, dropped from the rankings after selling out to larger rivals. Also departing are Capital Bank Financial Corp. and Park Sterling Corp., both Charlotte-based institutions swept up in the financial-services industry's consolidation wave. Four smaller banks that were among the state's 75 largest public companies in 2017 also handed over the keys to bigger peers.

In their place, the Triangle's robust technology and life-sciences communities are spurring new public companies with promising research to treat cancer, heart disease and other medical conditions. Newcomer Aerie Pharmaceuticals Inc. moved its headquarters to Durham from California partly to be closer to Duke University, where initial research occurred for its glaucoma product Rhopressa. Aerie's market value has more than tripled in the last two years to $2.9 billion because of expected demand for the once-a-day eye-drop, which launched in April.

Change, of course, is inevitable given the constant ebbs and tides of capital markets. Of North Carolina's 92 biggest publicly traded companies in 1995, only 19 still trade as independent listings, according to Charlotte money-manager Jim Green, who has tracked the state's stocks for more than 35 years. A few failed, though most were acquired by competitors or private-equity groups amid the shrinking competition evident in many industries. About half of the companies that remain listed are controlled by families, such as the Fines of Investors Title Co. in Chapel Hill, the Woltzes of Insteel Industries Inc. in Mount Airy and the Harrisons of Coca-Cola Bottling Co. Consolidated in Charlotte.

Stock-related information in the charts reflects a continuing bull market that shows some signs of stalling. About 72% of the companies reported increases in total return in the year ending June 30, versus 88% in the previous year. Only three companies --Cree Inc., Tanger Factory Outlet Centers Inc. and Triangle Capital Corp.--have had negative returns over the last five years. On a happier note: Eighteen of the 50 companies more than doubled in value over the last five years.

TOP 50 PUBLIC COMPANIES

BANK OF AMERICA

Profits at the giant bank are on fire, benefiting from a stronger economy and cost-cutting. But tax reform is also goosing earnings: BofA's tax bill in the most recent quarter was $1.7 billion, 43% less than the same period a year earlier. The bank is using $500 million of the savings for improved technology.

RED HAT

After more than doubling in the previous year and a half, shares of the open-source software company declined 7% on June 22 after the company warned of slower growth in the second quarter. But the company expects business to accelerate in the second half of the year, partly due to a closer partnership with Microsoft, It now employs more than 7,900 people.

OLD DOMINION FREIGHT LINE

The Thomasville-based trucking company has been an industry success story for years, reporting 12% annual compound revenue growth since 1997. Since 2008, the pace has quickened, with the company taking market share from rivals. Its shares have increased by an average annual compound rate of 24% in that period.

TOP 50 PUBLIC COMPANIES

C1 THERAPEUTICS Buoyed by promising clinical trials, shares of the cancer-drug developer have nearly tripled since the company went public last May. Two North Carolina-based investor groups own nearly a quarter of the company's shares. Industry veteran John Demaree joined CI as chief commercial officer in July.

LIVE OAK BANCSHARES

One of the nation's fastest-growing banks. Live Oak named former Goldman Sachs Group partner Huntley Garriott CEO, taking over later this year from veteran N.C. banker Scott Custer. Live Oak's online lending to small businesses is paying off: Net income grew nearly sevenfold to $100 million in 2017.

BANDWIDTH

Shares of the communications-networking company have gained about 75% since it issued 4 million shares in an initial public offering in November. Revenue is expected to increase 19% this year and 13% in 2019. Its products help Google and others offer better voice and text...

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