SILOAM SPRINGS — This week marks a major milestone in the history of a local radio station. KLRC, the popular Christian radio station that has lived at 101.1 on the dial since 1988, is getting a new home at 90.9 and a much more powerful signal.

The station started broadcasting on the new frequency Monday (Feb. 18) with 100,000 watts of power behind it, the largest signal that is allowed by the Federal Communications Commission. Since 1990, KLRC has operated with 6,000 watts. The higher power will allow the station to reach thousands of more people with most of the expanded reach in southwest Missouri and northeast Oklahoma. There will also be improved coverage in Northwest Arkansas.

Brad Melton of Bella Vista has been a long-time KLRC listener and he said Monday it was the first time he was able to hear the station on his home radio. Previously, he and his family have had to listen to the live stream via the Internet on his phone or wait until they were in the car.

“Now I can set my radio alarm in the morning and listen to KLRC first thing in the morning and hear the inspiring conversation and the music,” he said. “It’s going to make it a lot easier and more convenient when driving around Northwest Arkansas as well.”

Over the years, KLRC has added a couple of frequencies on the dial to make up for dead spots throughout the listening area. In Springdale, the station is best heard at 100.3 and in Bentonville at 99.1. With the new signal and strength, there will only be the need for one frequency: 90.9.

“I will only have to have one preset on my car now,” Melton joked.

The new frequency will require somewhat of an adjustment for both the listening audience and the announcers.

“I’m sure I will mess it up,” laughed Mark Michaels, part of the morning show Mark and Keri duo. “We have a lot of cheat sheets up in the studio to remind everyone. It’s like living in the same house forever then having to remember a new address. It will take a while to get used to.”

Michaels has been a part of KLRC for many years, first as a JBU broadcasting student and now as an employee.

“We went from a tiny 6,000 watt signal and students were just trying to get the call letters right,” he said. “And now we see this thing grow. It’s more than the little engine that could story.”

KLRC began as a station to serve the John Brown University broadcasting program to give students hands-on experience with a real radio station. The station project was spearheaded by then JBU Communications Professor Mike Flynn. When it started in the early 1980s, KLRC was only 100 watts, which meant that it reached only JBU and the immediate surrounding community. Located at 90.3 FM on the dial, the radio station was housed in the Cathedral of the Ozarks on the JBU campus.

Flynn saw that the station needed more power to better serve the community and after a five-year effort, the FCC approved a power increase to 3,000. This required that KLRC move to 101.1 FM. In 1990, the station doubled its power again to 6,000 watts, which allowed full coverage in Northwest Arkansas.

Also in 1990, KLRC started hosting its annual Share-a-Thon, a fundraiser that provides for much of the station’s operating costs. The first year, the three-day event netted $10,500 in listener pledges. The station now has an estimated $1 million operating budget and 70% of that comes from listener donations.

KLRC holds the FCC distinction of being a non-commercial station, which means it can’t run paid commercial announcements. It can, however, broadcast underwriting announcements that tells what the underwriting sponsors offer. There can be no call to action, no pricing and no comparisons to competitors, General Manager Sean Sawatzky explained.

Over the years, there have been many other physical signs of growth and expansion at KLRC including the addition of paid staff. Sawatzky became the first paid staff member in 1996 and is now the station’s general manager. There are seven paid, full-time staff members and one part-time staff member, he said.

KLRC has had several major developments in recent years. In 2008, it launched MyPositiveEdge.com, which is an Internet-only station that provides Christian alternative and rock music with the focus being on teens and young adults. This is where most JBU broadcasting students get their on-air experience now, Sawatzky said.

While students are still heavily involved, KLRC’s on-air talent does look a little different than it did in the early years. Instead of being run entirely by students, the station has DJs who work the more prominent shifts. Many, like Michaels, are former JBU students returning to work with their alma mater. By having the same radio personalities working the prominent shifts, the station is able to have a better relationship with its growing audience.

The newest expansion began in 2007. That’s when the FCC opened for broadcasters to apply for a permit to build the only remaining non-commercial frequency in the area. Seventeen stations applied and another station finally got word that it would be allowed to use the frequency. When the KLRC staff called the other station to congratulate them, they got some surprising news: the station was no longer interested. The other station agreed to sell the permit to KLRC and the rest is history.

KLRC announced last August that it would be growing its audience and launched a special fundraising campaign to raise the more than $900,000 necessary for the new tower, which is located eight miles from Siloam Springs in Oklahoma. Nearly $600,000 of that money has already been raised, Sawatzky said.

Reported merger talks between Office Depot and OfficeMax sent shares in the office space sector higher on Tuesday (Feb.18) between the No. 2 and No. 3 firms. Office Depot shares rose more than 9% to $5.01, while OfficeMax stock posted a 20% gain trading at $12.99 at the noon hour.

Larger competitor Staples also particiated in the stock rally with shares soaring about 10% to $14.16 at midday on Tuesday.

The companies said they do not comment on rumors or speculation, but industry analysts told Investor Business Daily that if the merger were to take place, Office Depot and OfficeMax could ultimately close as much as 25% of their combined store base, possibly using the merger as a "catalyst" to incur extraordinary charges.

Staples would also be a winner if a merger were to occur. While the terms of the potential deal aren't yet known analysts estimate Staples' top-line stands to benefit by 2% in North America Retail and Delivery for a "minimum potential lift" of 10 cents a share.

Staples would also stand to pick up lost sales from store closings, analysts say.

Office Depot has two locations in Northwest Arkansas -- Springdale and Rogers. OfficeMax has one location in Fayetteville while competitor Staples has one location in Rogers.

Employee-owned Harps Foods will open its 72nd grocery center Wednesday (Feb. 20) in the heart of West Fork, adjacent to the town’s school.

Springdale-based Harps said the new store adds close to 90 jobs to the local economy. A grand opening and ribbon cutting is slated for 9 a.m. Wednesday with Harps CEO Roger Collins and West Fork Mayor Francis Hime scheduled to speak at the public event.

This new 33,000 square foot store has a new “outdoor” look on the front with more timber and stone displayed, and includes a pharmacy drive-through and gas pumps.

The bakery and deli will offer all the Signature Martha Harp items like “special recipe” rolls, Honey Dipped donuts and fried chicken and chicken tenders that are hand breaded and fresh (never frozen).

And as always, Harps boasts their “no solution injected, no sodium added fresh beef, pork and poultry, along with the largest selection of fresh fruits and vegetables and a wide selection of name brand and private label groceries.

This is the first of several new Harps stores to be opened in the upcoming months, including a large supermarket in Bentonville along North Walton Boulevard. The grocery chain has plans for as many as 20 new stores in the next 3 to 4 years, the company said.

Harps Food Stores has more than 70 stores in Arkansas, Missouri and Oklahoma, with more than 3,600 employees.

Two closely watched barometers of national economic conditions present different pictures of economic activity. It’s yet another page in the ongoing story of economic uncertainty.

The American Trucking Associations’ Truck Tonnage Index (seasonally adjusted) for January was up 2.9%, following a revised 2.4% increase in December.

January’s index was the highest on record, according to the ATA. Compared with January 2012, the index was up 6.5%, the best year-over-year result since December 2011.

“The trucking industry started 2013 with a bang, reflected in the best January tonnage report in five years,” ATA Chief Economist Bob Costello said in a statement. “While I believe that the overall economy will be sluggish in the first quarter, trucking likely benefited in January from an inventory destocking that transpired late last year, thus boosting volumes more than normal early this year as businesses replenish those lean inventories.”

Also, the ATA revised the seasonally adjusted index back five years as part of its annual revision. For all of 2012, tonnage was up 2.3%, the same as reported prior to the revision. In 2011, the index was up 5.8%.

Weather-induced shipping delays – especially with Hurricane Sandy – during the fourth quarter of 2012 was likely not a factor in the January increase, said Sean McNally, a spokesman with the ATA. He said most of the reported increase was from inventory restocking.

EASIER COMPARISONS
The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 122.4 in January, which was 10.7% above the previous month (110.5).

Trucking serves as a barometer of the U.S. economy, representing 70% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 9.2 billion tons of freight in 2011. Motor carriers collected $603.9 billion, or 80.9% of total revenue earned by all transport modes.

Fort Smith-based ABF Freight System reported during their Jan. 30 earnings conference call that tonnage-per-day for the first 27 days of January was up between 5% and 6% compared to 2012. However, those comparisons are from a slow 2012.

“We were comparing back to a period when ABF’s January 2012 was down nearly 8% versus January 2011,” explained David Humphrey, Arkansas Best vice president of investor relations and corporate communications.

ANOTHER VIEW
The Cass Freight Index had a different take on January freight shipments. The index, which measures more than just goods shipped by truck, reported that shipping volumes fell 4.8% in January compared to December and were 2.5% lower than January 2012. The January decline was unusual.

“For each of the last two years, freight shipment volumes ended the year at about the same place they began. This was the first year since the recession period that January shipments were actually lower than January of the previous year,” Cass noted in the report.

January rail activity began strong, but fell later in the month to end at 2% lower than December. Cass reported that “truck shipments were sluggish in January,” but intermodal operations were up 3.5% in January compared to December 2012.

The Cass report suggests that inventory levels could be a future economic drag.

“Inventory levels – which have climbed higher than pre‐recession levels – accompanied by lagging sales, pushed up the inventory to sales ratio in the second half of 2012. In January, the inventory to sales ratio was unchanged from December at 1.28. This level indicates that the inventory buildup may be cause for some concern and is impacting future orders for goods,” noted the Cass report.

The overall sentiment from Cass is one of continued slow global economic growth.

“Resurgence in the freight industry is contingent on performance improvements in many sectors globally, and nothing seems poised for exponential growth. Continue to expect modest growth in freight volumes and higher shipping costs as the year progresses.”

Global Food Group will build a new manufacturing and packaging plant in Clinton, Ark., that is expected to create 224 jobs, according to a statement released Wednesday (Feb. 20) by the Arkansas Economic Development Commission.

The Cabot, Ark.-based company will invest $4.7 million in the new operation.

Company products include retail sandwiches, quesadillas, tortillas and burritos. Global Food Group also packages a control brand of products from chicken tenders to all types of potato products, southern vegetables, breads, rolls, and biscuits. Global Food Group will locate in an existing facility at 245 Quality Drive, which the company is renovating.

“The Clinton facility will allow us to grow our brands as well as expand in other categories and product lines,” Robbie Brown, Global Food Group’s president and CEO said in the statement. “Global Food Group is excited about being a part of the Clinton community.”

Founded in 2003 by Brown, Global Food Group has experienced double digit revenue growth annually.

Global Food Group’s customers include Associated Grocers, Super Value, Harps, and Food Giant. The company is a subsidiary of Global Performance Group, which is headquartered in Cabot, Arkansas.

“Arkansas continues to maintain a strong roster of companies in the food manufacturing sector,” Governor Mike Beebe said. “An Arkansas-based company like Global Food Group recognizes that expanding close to home in Clinton helps build that momentum toward future success.”

If fully staffed to the estimated 224 jobs, the new company could boost employment in Van Buren County by more than 3%. Employment in the county during December totaled 6,425, down from 6,575 during December 2011, but up from the 6,250 during December 2010.

The Global Food Group deal marks the third major jobs announcement rolled about by the AEDC in the past three weeks.

On Jan. 29, the state agency announced that Big River Steel plans to build a $1.1 billion steel mill operation. The mill will employ 525 workers initially with average annual wages of $75,000 – more than double the state's per capita income.

The mill will locate on a 1,000 acre site in northeast Arkansas near Osceola giving it access to the Mississippi River, a key factor in the site location. The Mississippi County site beat out several other locations in Arkansas and dozens of other potential sites in 10 other states.

On Jan. 31, officials with Inuvo and Arkansas announced the company would move its corporate headquarters from New York to Conway, Ark. The Internet marketing and technology company anticipates the “creation of 50 highly skilled jobs” in Arkansas over the next 4 years.

Patients in need of cardiovascular treatment at Mercy Hospital are now able to receive advanced treatment in one place with the opening of Mercy's $10 million Heart and Vascular Center.

According to Mercy president Ryan Gehrig, the new center was designed to benefit patients first and foremost. The facility is part of the $192 million community master plan  for the Fort Smith area that St. Louis-based Mercy announced in August 2011.

"The concept that we're unveiling is about pooling all of the services together in a central location," he said. "It's really about being patient-centric."

Gehrig said the new facility is housed within the hospital, but he said instead of just being an office, it's more like a "heart hospital within the hospital."

The new 16,000-square-foot facility has been outfitted with the latest technology in its catheterization laboratories, according to Jennifer Thomas, Mercy's vice president of insularly services.

According to Mercy spokesperson Laura Keep, the new Heart and Vascular Center includes:
 • Tour cardiac catheterization labs including three with all new equipment for sophisticated, life-saving interventions;
• A cardiac imaging suite with a nuclear medicine camera dedicated to cardiac care, two stress rooms with treadmills and two echocardiology rooms;
• Vascular lab with three exam rooms for non-invasive outpatient diagnosis;
• Preparation/recovery unit for patients pre- and post-procedure needs; and,
• Physician offices for Mercy Clinic cardiologists and cardiovascular surgeons.

Thomas said while patients may not notice an immediate difference in equipment, doctors and nurses would. Something as little as new imaging machines could make the difference in a diagnosis, Thomas said.

"We (now) have direct imaging, so we don't have the image degradation that we used to get. It's clearer, crisper. It's better quality for the physicians to see the intricacies of what they're doing," she said.

The new direct imaging equipment can display up to 250 shades of gray, while the previous equipment could only display 24 shades, Thomas explained.

She said the new imaging machines also reduce exposure to radiation for staff and patients, making procedures safer.

The new center has also led to additional hires for the hospital, according to Gehrig.

"We have five new physicians that are new to Fort Smith — two cardiovascular thoracic surgeons, the third is an interventional cardiologist and we have two more cardiologists joining us this summer," Gehrig said. "By August of this year, we'll have the area's largest, most comprehensive cardiology group."

Gehrig said residents of the Fort Smith region have been in need of additional local cardiologists for a long time.

"That's been a real issue for people in Fort Smith, they can't get in to see a cardiologist," he said. "In order to recruit and get the best, we felt it was important to improve and get the best technology to do so."

Another new addition to the facility will be an electrophysicist, according to Thomas. She said the heart rhythm specialist will visit the facility frequently.

"He will be coming down to our community at least monthly to perform clinics to our patients," Thomas said.

Gehrig said having doctors either coming to Fort Smith or basing themselves permanently in Fort Smith will be a benefit to patients, who already commute elsewhere for care.

"One statistic that we've seen is that 62% of cardiac diagnosis were being treated outside of Fort Smith," he said. "Our goal is not to just serve Fort Smith better, but the whole region better. We want to go out into the region and provide better care without leaving their community. And it takes more physician manpower to achieve that."

As for older equipment that will be no longer be in use at the new facility, Keep said the hospital will be donating it to Arkansas Tech University-Ozark to be used in the school's new associates degree program in cardiovascular technology.

"They're the only program in the state," she said, adding that Mercy was pleased to partner with ATU-Ozark as the program continues to grow.

Hendricks & Partners, one of the nation’s largest multi-family investment banking and research companies, has been acquired by Berkadia Commercial Mortgage, LLC, a
joint venture of investment giant Berkshire Hathaway and Leucadia National Corporation, a major U.S. holding company with diverse investments.

The company has an office in Fayetteville.

Aaron Hargrove, partner who heads Hendricks & Partners in the Central South region, said the new firm is now called Hendricks-Berkadia.

“The acquisition brings substantial new resources to our work negotiating the acquisition and sale of investment-grade multi-family properties,” Hargrove said.

Since joining Hendricks five years ago, Hargrove and Associate Partner Hunter Buwick have sold 10,942 units and negotiated five land transactions.

“Berkadia Commercial Mortgage unites two of the great financial powerhouses and Hendricks-Berkadia is now able to provide sound access to financing for major acquisitions,” Buwick said.

Lance Eads, vice president of economic development for the Springdale Chamber of Commerce, has good instincts.

He predicted the Dow Jones Industrial Average (DJIA) would close Dec. 28 at 12,901.17. He was off by just under 37 points, but close enough to win the final installment of the “Where’s the Dow Now?” contest.

Sponsored by Arvest Bank and managed by The City Wire, “Where’s the Dow Now?” provides the chance to prognosticate on the quarterly direction of the stock market and possibly win a little cash and support a favorite charity.

Eads won $150 for his picking prowess, and his charity of choice, the United Way of Northwest Arkansas, also collected $150.

Eads said he reviewed the past six months of DJIA activity and estimated how that might play out to end the year.

“I just estimated that range ... and where that (Dec. 28 close) might be within the range,” Eads said. “But it was really just some quick thoughts on that. Probably if I over thought it I would have completely missed the mark.”

However, Eads did shave some points from his initial prediction before submitting a final number.

“I pulled back the estimate based on uncertainty over the presidential election and what might follow that,” he explained.

Eads, who was presented his check on Feb. 14, said he would probably use his winnings to celebrate Valentine’s Day.

“Seeing that this is Valentine’s Day, I will probably do something nice for my wife and kids,” said Eads, who is the father of two children. “My wife has been wanting me to take her to the new Mary Maestri’s.”

Eads said he chose the United Way because the agency has “a far reach throughout the area.”

The United Way of Northwest Arkansas works with 67 partner programs and agencies, and has helped fund 75 programs. The United Way raised $3.8 million in 2011.

Mike Williams, vice president-resource development for the United Way of Northwest Arkansas, said the $150 would be used to help with the agency’s Education, Income and Health initiatives.

Considering Eads’ winning strategy, would Springdale Chamber President Perry Webb allow him to invest chamber funds?

“No,” Eads said quickly and with a laugh. “There is a lot of luck involved in something like that ... and I don’t think he (Webb) would risk that on luck.”

The notion of adding value to a raw commodity product is not new. But it’s core to Tyson Foods’ efforts to push profits higher in the next three years, according to CEO Donnie Smith.

Last year roughly 45% of Tyson Foods’ sales came from value-added products. That was $15 billion of the $33.3 billion the meat giant posted in total revenue, according to analysts with Fitch Rating Service.

Smith wasted no time investing in this initiative with the recent announcement of $40 million in capital expenditures to expand four production facilities. Plants in Sherman, Texas and Goodlettsville, Tenn., are in the midst of redevelopment as well as a recently finished expansion at Tyson’s Glen Allen, Va., plant. Also a Tyson subsidiary, The Bruss Company, recently openly a second plant in Jacksonville, Fla.

"Our strategy is to accelerate our growth in domestic value-added poultry and Prepared Foods, as well as international poultry, and we're executing that strategy," Smith said during the company’s Feb. 1 earnings call. "Some of the steps we're taking to grow our domestic value-added sales include expanding 3 plants."

He said the Sherman and Goodlettsville plants are part of a "case-ready meats" initiative, producing beef and pork as consumer demand has driven a need for meats that are cut, packaged, and ready to be sold in a grocer's meat case.

These plants will get new equipment and additional production lines. The Glenn Allen and Jacksonville plants produce chicken and steak, respectively.

Smith said Tyson will increase its value-added sales by 6 to 8% – that’s about $1 billion annually. And he pledged to grow international in-country sales by 12% to 16% as the firm’s poultry operations in Brazil and China ramp up this next year.

Tyson reported international in-country sales of $1.5 billion last year from its operations, according to a filing with the U.S. Securities and Exchange Commission.

At the 16% increase rate Tyson would see a $240 million improvement in its international in-country sales annually.

"In China, as we bring on more company-owned housing in 2013, allowing us to move more of our mix away from wholesale and into more desirable channels, we will reduce our losses substantially," Smith said. "We're also executing better in Brazil, and we'll benefit from the progress we're making there in moving our mix to include more value-added offerings."

The firm lost $105 million last year in these two international ventures.

Smith said the firm will grow its existing domestic businesses as the go-to supplier for its customers with product innovation and service.

Last week Tyson announced the purchase of Utah-based Don Julio Foods. This deal will give Tyson the opportunity to get its tortillas and chips into retail outlets. Tyson is now the second largest manufacturer of tortillas in the country as it is a major supplier to Yum Brands! Taco Bell and hundreds of food service customers.

Financial terms of this deal were not disclosed, but it’s another example of how Tyson is working to get its products in front of more consumers.

“We'll make headway into other channels like convenience stores.Our intention is to grow that business aggressively." Smith said.

With the efforts under way in 2013, Tyson expects topline revenue growth of 3.5% to $35 billion this year.

The push to sell more value-added products is just one way meat processors hope to combat volatile grain costs and other risks to profit margins year in and year out, according to Michael Thomsen, professor of agricultural economics at the University of Arkansas.

He said a U.S. Department of Agriculture report indicates just 14.1 cents of every food dollar spent in this country is the farm or commodity share. The other 85.9 cents is attributed to processing. marketing and preparation all the way to the fork.

“Roughly 50 years ago, that farm share of every food dollar was about 40%. But over time consumers began wanting more convenience and were willing to pay it,” Thomsen said.

The truth is meat processors of all sizes are moving away from commodity-based operations and looking for ways to fatten the bottomline, according to Jason Apple, meat science professor at the University of Arkansas.

“The poultry companies have been doing a a really good job of this for years. But beef and pork companies are also in this game more than ever before,” Apple said. “Think back 25 years when shopping for chicken meant buying a whole bird. I doubt very many consumers today even know how to cut up a chicken. They don’t have to, consumers buy the parts they want without the bones, already trimmed, marinated and pre-cooked in some cases.” Apple said.

Apple and Thomsen say adding value to a commodity product will increase the overall profit margin, but it also increases the input costs for the processor, which is then passed on to consumer.

Judi Rosetti, an analyst with Fitch, applauds Tyson’s move toward mitigating the risks associated with low margin commodity protein processing by accelerating growth in higher margin value-added products and faster growing markets like China.

This past year when grain prices reached all-time highs, Tyson resorted to buying commodity chicken on the open market to fill certain orders, instead of growing that chicken in its production operations.

Smith said the company would not over produce chicken at sky-rocket grain costs and would err on the side of caution, buying commodity chicken parts and then further processing them for its customers.

He said the company's focus on value-added, along with its buy-versus-grow strategy helped reduce its exposure to rising commodity costs.

Tyson expects to spend an additional $600 million in feed ingredient costs in fiscal 2013, which it says it will need to offset through pricing and other measures.

BB&T Capital Markets analyst Heather Jones said Tyson has tweaked its business model from just five years ago and it’s been a move for the better.

"It put meat on the argument that not only should it be able to generate relatively stable earnings given the multiple levers it has to pull, but should also be able to post meaningful secular growth on the back of its forays into international, as well as its further push into value-added," Jones said following the recent earnings call.

"In our view, the reduced likelihood of dramatic swings in earnings and a secular earnings growth should yield multiple expansion. Consequently, we still foresee meaningful potential upside to the shares over the next 12 months," Jones noted.

Tyson shares have rallied in recent months following Smith’s vow to grow sales amid the still-challenging economic climate.

Shares of Tyson Foods closed Wednesday at $23.56, down 57 cents on weakening beef margins and worries that federal meat inspectors will face furloughs if lawmakers continue with proposed spending cuts.

But Tyson shares have risen in price some 26% since January 1. For the past 52 weeks the stock price has ranged from $14.07 to a high $24.31 set Tuesday (Feb. 19.)

Analysts give Tyson Foods shares a one-year target price of $26.73, which will likely be raised in the coming days following the recent rally.

Female workers at Wal-Mart Stores Inc. in Tennessee and four other southern states will not be allowed to pursue sex- discrimination claims against the retailer through a class action, or group lawsuit, according to a federal court ruling Wednesday (Feb. 20).

“The class claims are time-barred,” U.S. District Judge Aleta Trauger noted in her 54- page decision. “Unless this court finds that Andrews is no longer good law, the court is constrained to apply the holding in Andrews to this case.” Trauger didn’t rule on the merits of the women’s claims.

The lawsuit -- Phipps v. Wal-Mart Stores Inc., 12-cv-01009, U.S. District Court, Middle District of Tennessee -- was filed in Nashville last year on the merit that women were blocked from promotions and paid less than men in comparable jobs. The plaintiffs sought to proceed on behalf of Wal-Mart’s female employees in Tennessee and parts of Alabama, Arkansas, Georgia and Mississippi.

The suit is the one of four regional gender-discrimination claims filed against Wal-Mart following a U.S. Supreme Court decision in 2011 rejecting a nationwide class action. A Texas class action suit was dismissed in October. Suits were also filed in California and Florida.

Wall Street eyes were staring at Wal-Mart Thursday morning (Feb. 21) looking for any morsel of insight into the health of the overall economy as the retailer recently leaked a memo of caution about future expectations that sent some investors packing.

At 6 a.m. Thursday, Wal-Mart Stores Inc. posted better than expected results in the last quarter of fiscal 2013, ended Jan. 31. The retail giant reported net income of $5.6 billion, or $1.67 per share, some 6.3% ahead of Wall Street expectations. Net profits improved 7.9% from the $1.57 per share earned a year ago.

Net sales in the fourth quarter totaled $74.7 billion, up 2.6% thanks to a growing market share in food, toys and entertainment sales during the holiday season.

One key metric, U.S. same-store sales, improved by 1% during the quarter, less than the 1.5% improvement a year ago.

For full fiscal 2013, the retailer boosted net earnings by 10.6%, pocketing $5.02 per share versus $4.59 in fiscal 2012. Net sales topped $466.1 billion up 5% from the prior year.

"We have high expectations for fiscal 2014, and I'm optimistic as I look ahead,” Wal-Mart CEO Mike Duke said In his prepared remarks. "Walmart is operating in markets that offer continued opportunity for growth, both in our stores and online. With our core Walmart U.S. business operating so well, our investments in e-commerce and our international markets focused on growth and improving returns, we are truly the best positioned global retailer."

But as expected, Wal-Mart’s results also came with a cautious outlook for the current quarter ending April 30.

Wal-Mart executives expect comp sales to be flat through April citing cash-strapped consumers juggling higher payroll taxes and rising fuel prices that threaten ticket sales and traffic count.

Some investors were lured back to Wal-Mart in spite of the the cautious outlook as shares rose nearly 2% in pre-market trading to $70.60. By the opening bell at 8:30 a.m. shares began trading at $70, up 69 cents from the prior day as analysts were still combing through the 40-page release and dialing in to the company’s quarterly earning call. At mid-morning shares were up $2 to $71.26 on heavy volume.

Prior to the call, Chris Horvers, analyst with J.P. Morgan, said the 18% dividend hike also announced by Wal-Mart Thursday was enough to pacify some investors. But more concerning to him is the tough comparisons he sees for Wal-Mart in the current quarter indicated by the company’s lower-end guidance.

“We expect first quarter fiscal 2014 earnings per share to range between $1.11 and $1.16," said Charles Holley, chief financial officer. "These estimates consider current economic factors that are affecting customers in many of our markets.”

Horvers says a year ago, a warm winter helped to fuel stronger consumer spending among Wal-Mart’s core customer. He said today that same customer is taking home less money from higher payroll taxes and putting more money into gas tanks – a double squeeze for Wal-Mart shoppers’ $40,000 household income.

“I believe there is risk to Wal-Mart missing its lower estimate and comps going negative given the 40 to 50 cent hike in gas prices over the past month which are clearly impacting Wal-Mart’s core customer,” Horvers said.

He said competitors Target and Costco core customers are less likely to feel the cash squeeze with households earning $60,000 and $96,000 incomes, respectively.

HOLIDAY RECAP
Wal-Mart officials said holiday sales started strong around Black Friday deals and layaway rose 10% over the previous year, though overall holiday sales did not meet expectations.

Bill Simon, CEO of Walmart US, said in his prepared remarks that seasonal assortment and price leadership resonated with the customer and the retailer served 22 million customers on Thanksgiving Day alone. He said the first three weeks of December were soft, but the retailer rebounded with double-digit positive comps the week of Christmas, and continued with strength into the first part of January.

In the last couple of weeks of the quarter, he said the stores began to see an impact from the increase in payroll taxes and the delay in the income tax refunds.

U.S. REBOUND
Simon said U.S. sales in the fourth quarter were $74.7 billion, up $1.9 billion or 2.6% versus last year, with consistent sales growth across all geographies. Gross profit increased $556 million versus last year to $20.2 billion, Simon said.

Wal-Mart continues to invest in price and says comps grew by low-single digits for grocery, heath & wellness, home and apparel. Hard line comps such as sporting goods grew by mid-single digits and entertainment sales relating to mobile phone plans achieved double-digit gains in comp sales as the company expanded offerings to include iPhone and Samsung 2.

Simon said following the shooting in Newtown, Conn., there has been a strong push for gun and ammunition sales as the renewed interest from lawmakers in limiting firearms.

Another interesting note was the financial services category and an update since the launch of Bluebird accounts this past Fall. To date Wal-Mart says it has 570,000 active Bluebird accounts and volume is growing daily.

For the full year, Wal-Mart posted U.S. sales of $274.49 billion, up 3.9% from the prior year. Comparable sales excluding fuel rose 1.8% during fiscal 2013.

INTERNATIONAL HICCUP
Wal-Mart’s international unit has previously been a growth engine for the retailer but did not hit the mark in the fourth quarter, according to Duke, who said sales in international stores grew 6.9% to $37.9 billion in the quarter.

For the full year, international sales rose 3.9% to $274.4 billion.

Doug McMillon, CEO of Wal-Mart International, said the holiday season was tough on the global stage. And a Wal-Mart decision to slow store openings in Mexico, China and Brazil negatively impacted overall sales results.

Sales in mature markets like Japan, Britain and Canada and also did not go as planned, according to McMillon.

Wal-Mart also coughed up $153 million in expenses related to the ongoing investigations into the Foreign Corrupt Practices Act during the past year. Investigations are under way in Mexico, Brazil, China and India, according to a previous note in a regulatory filing with the Securities and Exchange Commission.

SAM’S SLUMP
Sam’s Club in previous years has been a shining star in the Wal-Mart portfolio, but that has not been the case lately.

In a lackluster fourth quarter Sam’s Club grew net sales by 3.4% to $14.49 billion. WIthout fuel, sales totaled $13 billion.

Operating income slid 3.5% in the quarter but comparable sales (without fuel) rose 3.6%. This comp benefited from a 1.6% increase in traffic and a 0.7% increase in average ticket. While the comps are positive they are considerably lower than the 5.1% sales growth from the previous year period.

For fiscal 2013 Sam’s Club posted net sales of $56.42 billion, up 4.9% from 2012. Net operating income for the warehouse club totaled $1.96 billion, up 6.2%.

"Overall, we are proud of the accomplishments this year at Sam's Club, but also recognize the mounting economic concern from both small businesses and consumers," said Rosalind Brewer, Sam's Club CEO. "The business member at Sam's Club is an integral part of our comp sales. Recent traffic patterns of our business members indicate that they are more deliberate in their spending due to macro-economic factors.”

She cautioned that comps through April 30 would be flat.

BULLS SAY
“For the first time, Wal-Mart disclosed its investments in e-commerce – $450 million, equal to roughly 9 cents a share. This commitment into omnichannel retail should help drive sales growth in the future and I see as a silver lining in today’s announcement,” said Matt Nemar, analyst with Wells Fargo Securities.

“I give Wal-Mart a target price of $80. The comps are fairly weak but the company is managing through it,” noted Dana Telsey, CEO of Telsey Advisors.

“The dividend increase signals strong cash flow ... and management’s willingness to enhance shareholder value,” said Brian Yarbrough, with Edward D. Jones.

“Wal-Mart’s customers are just who we thought they were, people who need those tax refunds. As the refunds trickle in sales should be boosted in the coming months," said Stephen Guilfoyle, Street.com.

BEARS SAY
“Fiscal 4Q makes nine out of 11 quarters Wal-Mart has seen soft inventory growth outpace sales. Why is management so quiet about its online business and is the big spend on marketing paying off in traffic and profits?” asked Rob Wilson, Seeking Alpha retail analyst.

“Wal-Mart is a proxy for the broader U.S. consumer and the slow start to February is a concern,” said Joseph Feldman, Telsey Advisors

“The delay in income tax refunds has really affected Wal-Mart’s business and they have been seeing lower volumes by the increase in payroll taxes, things businesses can’t escape from as more money is going to government and less is coming from the government,” said Kim Forrest, Fort Pitt Capital Group.

Ask Jeff Amerine about entrepreneurialism and the potential of creating jobs from university research and he becomes evangelical, passionately moving from one possibility to the next.

“There are so many things that happen every day, or that I learn about every day, where I stop and say, ‘Yeah, that could be huge,’” Amerine explained during a lunch interview at Powerhouse Seafood and Grill.

Amerine is the relatively new chief – formally, the director of technology licensing – of Technology Ventures, a division of the University of Arkansas created to streamline the process of moving ideas out of the university’s research programs and into the economy.

He joined the university as a technology licensing officer in 2008 after an 18-year career as an executive and builder of technology businesses. He held senior leadership positions in seven startup ventures and three Fortune 500 companies and teaches entrepreneurship at the university’s Sam M. Walton College of Business. He graduated from the U.S. Naval Academy with a bachelor’s degree in physical science in 1984. He also holds a master’s degree in operations management from the UA, conferred in 2009.

BIG IDEAS
“It’s something happening every day that could change our world in a big way. People just see a campus here with a lot of buildings ... but potentially groundbreaking research is happening every day on this campus,” Amerine said.

What are some of the big ideas?

There is a new process that could “help tremendously” in the treatment of osteoporosis.

The Picasolar group has developed an “unprecedented way” to vastly improve the efficiency of solar panels and lower the cost. One aspect of the process uses less silver. Amerine said solar energy is not a dominant source of U.S. energy, but the Picasolar method could soon be “a quality part of an overall energy plan.”

A bigger energy impact is likely to come from Nat Gas Solutions, according to Amerine. A group of finance majors are behind the project that would essentially allow users of compressed natural gas vehicles to fill up at home. The technology – which isn’t completely developed – “significantly reduces” the fill up time, Amerine said.

“Earlier, when I said there are some huge things happening, this is one of those,” he said.

MONEY SUPPORT
Amerine said Arkansas political leaders, the business community and the university system have worked well to support efforts that attempt to commercialize research. For example, the Fund for Arkansas’ Future and the Natural State Angels have helped with provide start-up seed funding to numerous ventures.

But two primary issues that could limit the potential of Arkansas research or cause the research result in companies and jobs out of Arkansas are the lack of early-stage venture capital and the lack of engineering talent.

The two venture groups mentioned earlier have helped with funding in the $100,000 to $3 million range, but helping some of these companies get past the “seed round” with upwards of $25 million is a necessity.

“You’ve got to be able to do that (provide larger venture capital investments) to keep them in Arkansas,” Amerine explained, adding that an important part of his job is to keep the new research-generated jobs in Arkansas.

He is confident Arkansas will have a state-focused venture capital fund that can write the big checks.

“We just have to have the will and belief that we can do this. ... And it will be through force of will, but we’ve got to do this for the good of this region and the state economy,” Amerine said. “If we solve this, then I don’t see us having a ceiling” on economic development through commercializing research.

FROM SUCCESS TO SIGNIFICANCE
And just like the impact of Wal-Mart Stores, Tyson Foods and J.B. Hunt, commercialized research will create a cycle in which success feeds success. Amerine said this will especially be true of the entrepreneurs of today if they are “provided an exit so they can invest in the next big thing.” He said today’s entrepreneurs and scientists are builders rather than sustainers. The system Amerine hopes to foster will allow the builders to cash out and move on to the next project.

“That will put money in the hands of people who have proven they are motivated to do this ... and they will then make the investments in the next big idea company that will change the world and our region,” Amerine said.

Another aspect of entrepreneurial success, especially in Northwest Arkansas, is difficult for Amerine to quantify. He calls it the “special sauce,” and it helps entrepreneurs in the 18- to 35-year-old demographic go from being successful to being significant.

“The people in this area, they really want to help the other guy or the other gal be a success. ... They are really unselfish in that way. That’s the special sauce in this area that I don’t see on the East Coast or the West Coast or almost anywhere else,” Amerine said.

Benefit Bank of Fort Smith has provided two gifts totaling $300,000 to the University of Arkansas at Fort Smith, with university officials saying the gifts will have a positive impact on UAFS students and the community.

A $250,000 professorship – titled the Benefit Bank Endowed Professor of Nursing – will provide a perpetual source of support outside the scope of the University’s regular budget, while a $50,000 gift will fund the Benefit Bank Adult High-Fidelity Simulator, called a “sim-man,” which will be the second such simulator for the UAFS College of Health Sciences.

Bank officials cited a nursing faculty shortage, a shortage of nurses in Arkansas and UAFS nursing laboratory needs in making the gift to UAFS.

Rod Coleman, chair of the Benefit Bank Board of Directors, said the bank plans to be active partners with the College of Health Sciences.

“We congratulate UAFS on what they have done in the past and what they will do in the future to advance health care in the region,” Coleman said in a UAFS-released statement. “We prayerfully hope lives will be changed by our involvement.”

Coleman said UAFS officials have said they find it difficult to find qualified nursing professionals in the region who have the credentials to instruct in a university setting.

“The Benefit Bank Endowed Professor of Nursing will allow the University to recruit and retain faculty that they might not have been able to pursue,” said Coleman. “We are pleased to help UAFS and our community with this gift and with the gift to purchase a sim-man.”

UAFS administrators said having a second sim-man will be a plus for the University. Nursing students currently have a 10:1 ratio of students to in the current “sim man” lab. The new simulator will result in a 5-to-1 ratio.

The Benefit Bank gifts were announced at a recent meeting of the UAFS Foundation Board by Coleman and other Benefit Bank board members, including John Taylor, Rusty Jacobs, Keith Gibson, Dr. Carl Friddle, Leo Anhalt and Benefit Bank president Joe Edwards.

UAFS Chancellor Dr. Paul B. Beran said UAFS considers Benefit Bank’s gift to have major impact on the University.

“This gift will help the University increase the number of students accepted into the nursing program by 20 per year and provide the faculty necessary for the program,” Beran said. “The Benefit Bank endowed professorship will not only help us increase the number of nursing faculty, but it will help our recruiting efforts for hiring qualified nursing faculty members.”

Dr. Carolyn Mosley, dean of the College of Health Sciences, said the gift will be a step toward providing additional registered nurses into healthcare settings in Arkansas.

“Arkansas currently ranks below the national average of registered nurses per 100,000 population,” said Mosley. “Of the six surrounding states, only two have lower percentages of nurses than Arkansas. The nursing shortage is national and worldwide, therefore, Arkansas nursing programs must educate a greater number of nurses to address the state’s current shortages.”

Mosley said UAFS graduates have a 100% employment rate and have an “excellent reputation.”

The Pendergraft Health Sciences Center opened in 2004 and houses programs in nursing, dental hygiene, imaging sciences and surgical technology, as well as the Powell Student Health Clinic and the Counseling Clinic.

Dave Hughes is convinced that the Home Show and home parades conducted by the Greater Fort Smith Association of Home Builders are business generators for the region’s residential home market.

Hughes, executive director of the association, spoke about the impact on Thursday (Feb. 21) as he managed the move in for the 54th Annual Home Show that will open Friday. Hughes said the show will feature products and services from almost 100 exhibitors.

“We’re sold out,” Hughes said.

The event is at the Fort Smith Convention Center in downtown Fort Smith. It opens Friday (Feb. 22) 2 to 8 p.m., Saturday (Feb. 23) 10 a.m. to 7 p.m. and Sunday (feb. 24) Noon to 4 p.m.

Numerous anecdotal reports from people in the industry have Hughes convinced that the Home Show helps “fill orders” that would not happen otherwise. Ditto for the spring and fall Parade of Homes conducted by the association.

“I would hate to see the numbers if we didn’t do a home show or do a Parade of Homes,” Hughes said. “There is no question in my mind that this show gets the public out and gets them excited.”

The numbers – home sales and building permits – in the Fort Smith region have been flat, at best.

There were 1,622 homes sold in Crawford and Sebastian counties during 2012, down from 1,690 in 2011 and down from 1,700 in 2010. There were 1,119 Sebastian County homes sold in 2012. The sales totaled $153.621 million, relatively flat against $154.253 million in total sales from 2011.

And in January, agents sold just 71 homes in Sebastian and Crawford counties combined. Unit sales slid 19.3% from 2011 and 26% from same month in 2010, according to MountData.com, an independent market source.

Combined construction permit values in Fort Smith, Greenwood and Van Buren through December 2012 were $157.32 million, down compared to $201.079 million during 2011. The 2012 value is above the $149 million in 2010, but below the $164 million during 2009.

The new year is not off to a hot start. The value of building permits in Fort Smith, Greenwood and Van Buren were a combined $12.886 million in January, down 2.93% compared to $13.275 million in January 2012.

However, the 17 new residential permits issued in Fort Smith totaled $4.155 million, up from the January 2012 total of $2.029 million for 10 new home permits.

January residential permit numbers, if they become a trend, may quantify the pent-up demand Hughes says is in the market for new homes or home renovation.

“The demand is there. I know it is there. ... But changes in financing and other rules are holding it back. It’s just become too difficult for people with good credit to get a mortgage,” Hughes said.

Walmart Stores Inc. and Bentonville officials have announced plans for a new Neighborhood Market expected to open this fall.

A formal announcement will be made at a press conference Monday, Feb. 25  at 2 p.m. near the site planned for the market – Northwest Corner of I Street and Regional Airport Boulevard (Highway 12).

The 40,000-square-foot grocery store is expected to bring 65 new jobs and affordable shopping options to south Bentonville, according to the press release.

Wal-Mart said Thursday (Feb. 21) the company  plans to add 100 smaller format stores this fiscal year along with 129 supercenter units which includes: new, expansion, relocations and conversions for a total of 16 million additional square feet of retail space.

John Brown University President Dr. Charles "Chip" Pollard was elected chair of the board of directors of the Council for Christian Colleges and Universities (CCCU) at a  board meeting held in Washington, D.C. last week.

"I am thrilled to congratulate Dr. Pollard on his election to chair the CCCU board and to lead a truly great cause," said Dr. Edward Blews, CCCU president. "He brings to our board great wisdom, strong leadership skills and the discernment of a true man of God. He has been elected as one of the preeminent leaders in all of higher education, chosen by his presidential peers. I look forward to working with him as our chair." 

The Council for Christian Colleges and Universities is an international association of intentionally Christian colleges and universities. Founded in 1976 with 38 members, the council has grown to 118 members in North America and 54 affiliate institutions in 20 countries. The CCCU is headquartered in Washington, D.C.

The 14-member board of directors provides leadership to further the CCCU mission of Christ-centered higher education and to help member institutions transform lives by faithfully relating scholarship and service to biblical truth. Board chairs serve two-year terms.

"Christian higher education plays a vital role in our country in preparing students to honor God and serve others in their personal, professional and communal lives. The CCCU provides critical support and leadership to the movement of Christ-centered education for its members and affiliates," said Pollard. "I am honored to have the opportunity to serve with our board in this important work."

Belinda Williams has been named coordinator of Liberty Bank’s new Joyce Street Banking Center in Fayetteville, according to Howard Hamilton, Regional President and Chief Operating Officer.

Williams has more than 19 years of banking experience and has served as an assistant vice president, branch manager and financial services officer.

“Belinda will do a great job leading the team at our new Joyce Street Banking Center,” stated Hamilton. “Her energetic work attitude and years of experience providing exceptional service will be a great benefit for our staff and our customers,” Hamilton said. 

A native of Siloam Springs, Williams and her husband, Brian, have three children.

Liberty Bank of Arkansas, a wholly owned subsidiary of Liberty Bancshares, Inc., with assets exceeding $2.8 billion, has 46 banking centers in 24 communities throughout the state.
 

The almost 6,000 people in Northwest Arkansas working for the about 1,300 companies in the area vying for space on Wal-Mart shelves have become a valued resource pool from which churches, charities and other area community groups actively recruit dollars, volunteers and leadership.

Pick any poster or marketing material from a charity event in Northwest Arkansas and the sponsors are likely to be a who’s who of the leading consumer packaged goods brands.

The strategy to recruit the dollars and volunteers from the Wal-Mart vendor community requires patience, diplomacy and a lot of networking, according to those involved in both sides of the equation.

With respect to diplomacy, one source for this story who wished to remain anonymous said the recruitment effort has become “a little too much,” with some vendors receiving numerous e-mails daily asking for their time or money.

With charitable dollars becoming harder to acquire, the source said an emerging problem vendors face is discerning between charitable requests from local and out-of-area groups.

For the local groups who garner the favor of Wal-Mart execs, the rewards are nice.

“If Walmart supports it, most of the suppliers will follow. For these Gala’s, the corporate jets fly the big boys in,” noted the source.

‘PLANTING SEEDS’
Toni Luetjen, director of marketing and membership relations for Pinnacle Hills Country Club, worked at Wal-Mart for 10 years, and worked about seven years for a vendor. She then worked in the hotel industry for a few years. All that experience taught her one thing about the best way to connect with vendor company decision makers.

“Network, network, network,” Luetjen said with a laugh. “When I’m out networking, I’m planting seeds.”

She said the Club’s website and area Realtors help the club recruit vendor execs. The process of a person deciding to join Pinnacle requires several months. They come for a visit, maybe a tour, and then two or three months later they buy a house and decide to join.

“When school is out, that’s a big time. They move their families here and then they are ready to sign up,” Luetjen explained.

She also said the networking has to be strategic.

“That’s my biggest thing, is finding the right event. It has to be the right type of networking event. ... I don’t have tons of time to network at all of them,” she said.

In addition to recruiting Wal-Mart and the vendor employees, Luetjen said physicians are a big part of the membership push.

“Otherwise, it’s entrepreneurs who have their own business and they come here to network with the other professionals,” she explained.

NOT THIS CHURCH
Some churches in Northwest Arkansas have aggressively sought to boost their outreach through the support and attendance from retail industry leaders.

Mickey Rapier, a minister at Fellowship Bible Church of Northwest Arkansas, said the church does have a lot of supplier and Wal-Mart execs, but the church does not actively recruit them.

“We don’t have a strategy. We just reach out to those who come to church here,” Rapier said. “We just try to preach the gospel and give the people a place to come worship.”

Rapier also said the church does not look at resumes when considering nominees for church leadership roles.

“We don’t make any distinction about their job,” he said.

MAKE IT PERSONAL
Rob Farinholt, a business development associate with Casestack, said all groups, including churches, benefit from finding “creative ways to have a personal contact” with vendors and other retail-sector leaders.

Like Luetjen, Farinholt is a big believer in networking. But he takes it a step further by suggesting that churches, country clubs, charities and other groups “should consider an event-oriented approach,” and online media to get their message out.

He said sending out “blind e-mails could be annoying.” And he advises: “Don’t ask for money initially, ask for volunteers.” He said grassroots efforts to get vendor employees involved will pay off, because the “corporate team on the ground” in Northwest Arkansas “has a lot of influence” on corporate decisions about where to spend entertainment and charitable dollars.

The bottom line, according to Farinholt, is to figure out a way to create events that are casual, but attract the right crowd in which to network.

“You have to cloak it in an event. If you don’t tie a date to it (an electronic or mailed invitation) and tie an event to it, then you’re not going to get a return out of it,” Farinholt said. “The region here is a lot larger than it used to be, but It’s still a small enough community that you can really leverage that personal contact.”

Of the eight metro areas within or connected to Arkansas, only the Fort Smith area saw a GDP decrease in 2011 compared to the beginning of the recession in 2008.

The Texarkana, Ark.-Texas, metro area posted the largest percentage gain at 10.4%, with Northwest Arkansas second at at 9.9% GDP gain between 2008 and 2011.

The 2011 advance GDP figures were released Friday (Feb. 22) by the U.S. Bureau of Economic Analysis (BEA). The report shows that real GDP increased in 242 of the nation’s 366 metropolitan areas in 2011 led by growth in professional and business services, durable-goods manufacturing, and trade. Real GDP in metro areas increased 1.6% in 2011 after increasing 3.1% in 2010.

All metro areas within or connected to Arkansas had a GDP gain in 2011 compared to 2010. The Texarkana metro area topped the annual gain in 2011 with a 4% increase. The Little Rock-North Little Rock area had a 3.9% gain; the Jonesboro posted a 3.47% rise; Northwest Arkansas was up 2.8%; Hot Springs was up 2.67%; Memphis-West Memphis was up 2.25%; the Fort Smith metro area was up 2%; and the Pine Bluff area was up 1.3%.

According to the BEA, real GDP by metropolitan area is an inflation-adjusted measure of each area’s gross product that is based on national prices for the goods and services produced within the metropolitan area.

“Durable-goods manufacturing continued to spur growth in many of the nation’s metropolitan areas in 2011,” noted the BEA report. Strong contributions from this industry fueled growth in many small metropolitan areas where production of these goods constitutes a large portion of the area’s economy.”

SEGMENT GAINERS, DECLINERS
Unfortunately, durable and nondurable manufacturing sector numbers in Northwest Arkansas and the Fort Smith area were not provided by the BEA to “avoid disclosure of confidential information.” The same was true of trade sector figures for Northwest Arkansas.

Based on metro numbers provided by the BEA, the big gainers in Northwest Arkansas during 2011 were education and health services (up 0.24%), leisure and hospitality (up 0.17%), and financial activities (up 0.14%).

Decliners during 2011 in the metro area were natural resources and mining (-0.41%), transportation and utilities (-0.29%), and information (-0.06%).

In the Fort Smith area, the gainers in 2011 were business and professional services (up 0.22%), trade (up 0.16%), and information (up 0.10%). Decliners in 2011 were transportation and utilities (-0.34%), and government (-0.15%).

RECESSION COMPARISON
The following table shows how the Arkansas metro areas have fared since the beginning of the recession in 2008. The parenthetical number next to the metro area denotes the 2011 rank – out of 366 metro areas – in terms of GDP amount.

Northwest Arkansas (107)
2011: $20.003 billion – up 9.9% since 2008
2010: $19.453 billion
2009: $18.014 billion
2008: $18.198 billion

Fort Smith (182)
2011: $9.844 billion – down 0.2% since 2008
2010: $9.642 billion
2009: $9.391 billion
2008: $9.864 billion

Hot Springs (362)
2011: $2.724 billion – up 4% since 2008
2010: $2.653 billion
2009: $2.600 billion
2008: $2.619 billion

Jonesboro (305)
2011: $4.346 billion – up 9.4% since 2008
2010: $4.200 billion
2009: $3.991 billion
2008: $3.972 billion

Little Rock-North Little Rock (68)
2011: $33.126 billion – up 5.9% since 2008
2010: $31.875 billion
2009: $32.055 billion
2008: $31.269 billion

Memphis-West Memphis (45)
2011: $64.323 billion – up 2.5% since 2008
2010: $62.906 billion
2009: $61.265 billion
2008: $62.752 billion

Pine Bluff (351)
2011: $3.165 billion – up 2.9% since 2008
2010: $3.124 billion
2009: $3.049 billion
2008: $3.075 billion

Texarkana (296)
2011: $4.679 billion – up 10.4% since 2008
2010: $4.499 billion
2009: $4.272 billion
2008: $4.235 billion

Calvin Goforth, CEO and founder of Fayetteville-based VIC Technology Venture Development, announced the formation of the VIC Investor Network, a new fund designed to accelerate and expand technology venture development in Arkansas.

The VIC Investor Network will place $250,000 start-up capital into every new portfolio company that VIC forms. Start-up capital is the most difficult funding to acquire. The VIC Investor Network funding will allow VIC to jumpstart its new portfolio companies and significantly shorten the average company development time.

Mitch Horowitz, vice president & managing director of Battelle Technology Partnership Practice of Cleveland, Ohio, spoke about the importance of technology based economic development for Arkansas’ future economy, and the benefits of the state’s incentive programs for encouraging such development.

“VIC fills key challenges and gaps for technology based economic development efforts by bringing together the initial management, product development, business development, and administrative teams needed to launch successful companies based on university inventions,” Horowitz said.

Horowitz led an in-depth 2012 Battelle study entitled Arkansas' Knowledge Economy Initiatives.

With the VIC Investor Network in place, VIC will now add four new companies to its portfolio each year. This is approximately triple VIC’s previous rate of expansion. VIC estimates that more than 100 high paying jobs of the future will be created in VIC portfolio companies over the next 3 years. VIC will also add additional sites across the country as it has developed and proven a uniquely effective business model for translating university research into outstanding young technology companies.

For the past nine years, VIC has been quietly building cutting-edge, world-class technology companies in fields ranging from nanotechnology and cancer diagnostics to pharmaceuticals and semiconductors in Northwest Arkansas.

According to VIC, each year, more than $60 billion dollars of funding goes into sponsored research at universities resulting in thousands of new inventions. Most of these technologies do not get commercialized because there is a significant gap between the stage at which larger companies will license a technology, or at which most venture capital firms will invest in a technology, and the stage to which the technologies are developed within a university.

VIC’s business model was specifically developed and optimized to fill this gap. Key achievements to date include:
• Twelve portfolio companies based on large market potential disruptive technologies;
• More than $30 million in federal grant funding into portfolio since 2003;
• Multiple innovative, large market opportunity products brought to market;
• Average wage of about $90,000; and,
• Rapid value growth in portfolio companies estimated at over 40% per year average.