One in three homebuyers in Northwest Arkansas paid cash for residential properties last month and between 7% and 12% of local home sales were purchased by institutional investors, according to Irvine, Calif.-based RealtyTrac.

Economists warn that without these cash and institutional buyers the housing market turnaround would be greatly muted.

Cash transactions are up slightly from a year ago and the investor infusion has been seen across the nation for months. These two dynamics have helped hoist demand upward at the same time home inventories remain quite low.

LOW INVENTORY
Northwest Arkansas had an inventory of 3,675 homes listed for sale at the end of July, according to Paul Bynum of Mount Data. He said there were 341 new homes and 3,334 existing properties in that overall inventory, which also includes Sebastian and Crawford counties.

Bynum reports home inventories are down 49% from their peak in the fall of 2007 and stable with last year’s levels.

“We have gotten so low on inventory that we are going to see more building activity as a matter of course,” said Kathy Deck said, director for the Center for Business and Economic Research at the University of Arkansas. “This is a healthy balance between supply and demand.”

During the first half of 2013, 797 new houses in active subdivisions became occupied, up 2.6% from the 777 that became occupied in the second half of 2012, according to the most recent Skyline Report released Wednesday (Aug. 28).

“Low inventory of homes available for sale is proving to be a double-edged sword in many local housing markets that have bounced back quickly from the real estate slump,” said Daren Blomquist, vice president at RealtyTrac. “Home prices are accelerating rapidly in these markets thanks to the combination of low supply and strong demand.”

But as prices rise along with interest rates, home affordability also becomes a bigger factor. Blomquist also said when the percentage of cash deals increase, it’s an indication that demand is good, but those who need financing could be left out in the cold.

ON THE RISE
Mortgage rates have risen more than a full percentage point since early May. Interest on the 30-year fixed rate mortgage averaged 4.58% in the week ending Aug. 22, according to FreddyMac.

Interest rates were as low as 3.35% in the first week of May. Rates have spiked on investor speculation that the Federal Reserve will begin tapering its $85 billion-per-month bond-buying program as soon as September.

Local home builders agree that rising interest rates will mean many consumers can afford to purchase less home in the future as they have to stay within a certain monthly budget.

When you add that to the fact that new home prices are naturally moving higher as the cost of goods and contract labor has risen from a year ago, it’s no surprise economists predict new home sales will suffer in back half of this year.

Earlier this summer Tim McGuire, of Cornerstone Construction in Bentonville, said material costs were 4% higher than a year ago and contract laborers were in shorter supply given the uptick in new projects going up in the region.

Existing home prices continue to rise a slower rate, according to the Case Shiller Index, released earlier this week.

“National home prices rose more than 10% annually in each of the last two quarters,” says David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “However, the monthly city by city data show the pace of price increases is moderating.”

In Benton County, median home sales prices rose 4.2% in July from a year ago. For the first seven months of 2013 the median sales price of $152,000 surged 7.8% higher than the same period last year, according to Mount Data.

Washington County reported a median sales price of $154,00 in July, up 6.39% from a year ago. For the year-to-date sales in 2013, the median price rose 10% from the same time last year, according to Mount Data.

“We can’t always predict when interest rates will change or when the price of properties might change. But the current supply of available housing is at one of the lowest points we’ve seen in this market since we’ve been measuring it and builders are adding to that supply in a slow, measured way that will hopefully prevent sudden pricing changes. Mortgage lenders are not expecting interest rates to decline in any meaningful way in the near future, so securing a home loan or refinancing a loan right now might make good financial sense,” said Johneese Adams, senior vice president and mortgage loan manager for Arvest Bank in Fayetteville.

EXPECTED SOFTENING
“I think there is a risk of a softening housing market,” warned Robert Shiller, Yale economics professor and co-creator of the Case-Shiller home price indexes, on CBNC Tuesday morning (Aug. 27).

He said housing has been a “speculative market” thanks to the prevalence of real estate investors that include Wall Street institutions and house flippers. Last week he warned that rising rates will hurt home prices as the increasing cost of borrowing cuts into buyer demand.

The local real estate market has seen higher prices and more sales through the first seven months of this year, but that growth has slowed a bit since the robust first quarter results.

Pending sales are a leading indicator for transactions that will be reported in the next 60 days. Bynum reported 768 pending sales in this local market as of the end of July, which compared to 595 pending transactions a year ago.

Industry veterans like George Faucette, CEO of the local Coldwell Banker franchise, expects dampened price growth to occur in the next quarter as more foreclosures come back into the marketplace from the backlog created two years ago from federal litigation.

In Benton County roughly one in four homes sold last month, were either bank-owned foreclosures or short sales in lieu of foreclosure. Distressed sales rose from 8% a year ago, according to RealtyTrac.

In Washington County the numbers were lower as just 3% of the July home sales were deemed distressed, down from 4% a year ago.
 

Margaret Christensen has joined the University of Arkansas for Medical Sciences (UAMS) Schmieding Center for Health and Education in Springdale as project director for the $3.5 million Centers for Medicare & Medicaid Services (CMS) Health Care Innovation Challenge Award.
 
Christensen will oversee the development and implementation of the award, announced in 2012, including a 40-hour family care advocate enhanced home caregiving training module. The new module, added to the existing Schmieding Caregiver Training Program, was developed to provide home caregivers with improved communication, evidenced based and person-centered care for older adults with chronic diseases. 
 
Christensen earned her doctorate in education from Oklahoma State University and a degree in nursing from St. Francis School of Nursing in Wichita, Kan. She taught health services administration in both graduate and undergraduate programs at Ohio University and also served as director of Graduate Programs at Shawnee State University in Ohio.
 
For the past seven years, Christensen has worked at the Bella Vista Health Resource Center for the Schmieding Center for Senior Health and Education in Bella Vista. She was named coordinator of senior community health programs there in 2010.
 
“UAMS and the Schmieding Center are most fortunate that Dr. Christensen has agreed to bring her leadership skills, nursing expertise and long experience in academic nursing education to this most important project,” said Larry D. Wright, M.D., executive director of the Schmieding Center and associate professor in the Donald W. Reynolds Department of Geriatrics in the UAMS College of Medicine.
 
Developed at the UAMS Schmieding Center in Springdale, the caregiver training program offers four levels of certification for paid caregivers and two workshops for those who provide care to their family members. In 1998, the Schmieding Foundation donated $15 million to UAMS to establish and construct the center.
 
 

As visitors walk through the galleries at Crystal Bridges Museum of American Art, they pass by multiple sculptures placed on pedestals to highlight the artwork. 

Unseen, inside each of those pedestals is a gift from Rogers-based Daisy Outdoor Products. There are BBs bundled in 10-pound bags used as weights in the base of each sculpture pedestal to keep it secure.


“It’s a win-win solution,” said Joe Murfin, vice president of  public relations for Daisy. “We donate spare bulk steel BBs, and the museum has a ready supply to use as ballast as needed.”


Over time, Daisy has donated three barrels of BBs, or approximately 6,000 pounds.

 “We weigh and measure the BBs into approximately 10 pound bags, and then tape up the sides to form a useable package,” said Crystal Bridges lead preparator Chuck Flook. “We typically place 10 to 15 bags in a sculpture pedestal, depending on the size of the casework and specific stability concerns.”


The BBs are also sewn into smaller muslin tubes or bags to help steady objects on display in the People and Places exhibition, a collaborative project that highlights objects from the collections of several museums from around the region, including the Daisy Airgun Museum.


A bundle of BBs can be slipped inside a vase or other vessel on display to weight the base of the object and secure it against environmental vibrations.
 The BBs were most recently used in setting up the temporary exhibition Surveying George Washington.



“They’re inside a pedestal that displays a carved marble bust of George Washington,” said Flook. “If you wander our galleries though, you’ll see lots of pedestals and Daisy BBs are used as the weight to secure them all.”
 

Wal-Mart employs an estimated 1.3 million people in the U.S. and roughly 10,000 in the Northwest Arkansas area so it’s no surprise that the retail giant is also an all-family employer for some, especially close to its home base in Bentonville.

Scott Swenson and wife Sherry Curtis-Swenson of Rogers are long-time Wal-Mart employees logging 45 combined years of service. But the couple has also spent the last nine years managing competing stores in Bentonville and Jane, Mo.

“I went into a Walmart shopping for some (bed) comforters for my three little girls and the store associate told me that I could have gotten a 10% discount if I had worked there. That was all I needed to fill out my job application,” Curtis-Swenson said.

She was hired as a cashier about 20 years ago and like 75% of Wal-Mart’s management she started in an hourly position. Curtis-Swenson said she became hooked almost instantly and had worked up to grocery manager when she first met Scott who called on her department as market manager at the time.

“We didn’t click right away. I kind of resented this guy coming into my department and telling me to make changes,” she said.

Swenson spent his entire career in retail much of the time in grocery with Sam’s Club. Wal-Mart and Food 4 Less, prior to that.

She said the two reconnected at a function outside of work and then began dating and eventually marrying in 2000. Curtis-Swenson is now the store manager in Jane, Mo., overseeing about 450 employees in that 24-hour-daily retail operation every since it opened nine years ago.

“I worked in Bentonville for several years before they built this supercenter and I feel like I really know this store, walls and all,” Curtis-Swenson said.

Swenson oversees 600 employees at Store No. 100, directly across from the Wal-Mart home office, which has advantages and disadvantages. Not only are these stores close to the corporate hub, but there is just 10 miles between them, so they also compete for customers.

When asked about being under a microscope for corporate scrutiny, Swenson said he does get a lot of corporate traffic in his store and often that comes with advice – well intended, of course.

Close proximity also has its benefits, he said.

“We get to try new things first, from merchandise to modulars and testing certain programs,” Swenson said.

Curtis-Swenson said she gleans the benefit of the testing that goes on in her husband’s store.

“It doesn’t bother me to call down there are ask how they might be merchandising certain seasonal items like back-to-school,” she said. “We talk a great deal about our stores, it’s inevitable.”

Store managers can earn between $100,000 and $250,000 in total salary which includes salary, bonuses and profit sharing benefits, according to Glassdoor.

Wal-Mart does not break out the performance of individual stores in its reporting, but store management bonuses are performance based.

The days are long for store managers who work nearly every Saturday and a few hours on Sunday, but the two managers said they find time to get away during week and because they are both managers in different stores it’s possible for them to get the same days off.

In their downtime the couple said like to get out to the lake and ski and spend time with their children and six – soon-to-be seven – grandchildren. Being a store manager is a demanding job, but it’s just what this couple wanted.

“I can’t imagine doing anything else. I love working with people. Just recently I was able to promote a stocker into an assistant manager position and know firsthand how this would change his life,” Curtis-Swenson said.

When the $4 prescriptions were rolled out, she said many people became emotional in the store about the difference it would make in their family budget and being part of that solution was very rewarding for her. Swenson said he’s had other management positions, but running a store is his favorite job because of the diverse group of people he has an opportunity to mentor in the process.

“I know my 600 associates and can call them all by first name. I enjoy this opportunity to help them grow their own careers if they so chose,” he said.

A partial approval of contract terms that may push forward by several weeks ratification of a five-year labor agreement was likely not the report officials at Fort Smith-based Arkansas Best Corp. wanted to hear.

The contract, once ratified, will cover about 7,500 employees of ABF Freight System who are members of the union. Most of those workers are drivers. ABF is the largest subsidiary of Arkansas Best, a transportation holding company. The contract includes an immediate 7% wage reduction that is recovered by the fifth year of the contract. The company was also able to negotiate for flexibility in work schedules and work across job classifications. Most of those workers are drivers.

The five-year contract between Arkansas Best and the International Brotherhood of Teamsters was approved June 27, but some supplemental provisions were rejected. Officials with both sides negotiated the rejected provisions, and the seven “local/area supplements” were again placed on the local ballots for approval.

But Arkansas Best reported Thursday (Aug. 29) that only five of the seven supplements were approved. Neither the company nor Teamsters officials provided comment on how the remaining two supplements would be handled. Supplements not approved are from the Central Region Local Cartage and the Western States Office Employees—Part V.

“The national master portion of the ABF National Master Freight Agreement has previously been approved, but will not take effect until the status of the two remaining supplements is resolved,” noted a statement from the Teamsters.

“The five-year agreement is an important step to return ABF to its historic profitability, while preserving the best-paying jobs and benefits in the freight industry,” the company noted Thursday in a filing with the U.S. Securities and Exchange Commission.

Further delay in contract approval will prove costly for Arkansas Best. Brad Delco, a transportation industry analyst with Little Rock-based Stephens Inc., said Friday it could be another six to eight weeks – “in a best-case scenario – before a contract is ratified.

Delco outlined in a previous note to investors what the contract means financially to Arkansas Best. He initially said benefits from the new contract would result in 2013 net earnings of 60 cents per share, or near $16.25 million. However, because the benefits of the new contract are not likely to begin until later in the third quarter, Delco in early August lowered the estimate to 30 cents per share.

For the same reason, Wells Fargo lowered its 2013 per share estimate for Arkansas Best to 43 cents from 67 cents.

It’s no small shift. For example, Delco’s lowered estimate shaves more than $8 million from the Arkansas Best bottom line. The lowered estimate by Wells Fargo reflects a reduction of almost $6.5 million from 2013 net income for Arkansas Best.

The newest delay may mean the savings don’t begin until the fourth quarter – not the timeline for which company officials were expecting earlier in the year. A 2013 in positive territory will avoid two consecutive years of losses for the company. In 2012, the company posted a $7.7 million loss, a wide swing from the $6.159 million gain in 2011.

Also, ending on a positive note means the company will have to perform well in the back half of the year. For the first six months of 2013, the company has a loss of $8.517 million.

Delco, however, is optimistic that company and union officials will hammer out an agreement.

“I feel pretty confident that we’ll see something that will be ratified and Arkansas Best will be on the path to profitability,” he said, adding that “both parties are interested in getting to a point where this is behind them.”

The contract delay could put downward pressure on third-quarter financials for Arkansas Best. The consensus of analyst estimates has the company earning 40 cents per share in the third quarter. Delco said “some may argue a slight deterioration” in earnings compared to the second quarter.

Second quarter net income hit $4.878 million, down 58.8% compared to the $11.8 million earned in the second quarter of 2012. However, the second quarter 2012 net income included an $8 million tax benefit. Revenue during the quarter was $576.899 million, well ahead of the $510.543 million during the second quarter of 2012.

Shares of Arkansas Best (NASDAQ: ABFS) closed Thursday at $26.59, up 11 cents. During the past 52 weeks the share price has ranged from a $27.48 high to a $6.43 low.

Lauren Ray, a graduate of the University of the Ozarks in Clarksville, has been named the state’s 2013 “Student Conservationist of the Year” by the Arkansas Wildlife Federation.
 
Ray, 22, of Fayetteville was honored at the Governor’s Conservation Achievement Awards Banquet in Bryant on Sat., Aug. 24. She is a 2013 summa cum laude graduate of the University of the Ozarks, where she earned a bachelor’s degree in Environmental Studies with a minor in Biology.
 
Ray is the education and outreach coordinator for the Illinois River Watershed Partnership in Cave Springs.
 
“Lauren has demonstrated an unrivaled dedication to the natural environment in Arkansas, and she does a wonderful job of coordinating our educational camps, workshops and events to help teach people about the Illinois River Watershed, local wildlife, volunteerism, outdoor safety and water conservation,” said Dr. Delia Haak, executive director of the Illinois River Watershed Partnership. “We are so lucky Lauren is part of our team.”
 
Ray was named the University of the Ozarks’ “Most Exceptional Outdoor Leader” for the 2011-2012 and 2012-2013 school years. She won the 2013 “Hurie Award,” which is the highest honor a University of Ozarks student can receive.
 
From 2011 to 2013, Ray served as president of the Ozarks Outbackers, a student organization participating in conservation-related community service projects.  From 2012 to 2013, she was president of the Planet Club, a student group focused on promoting sustainability, conservation and environmental consciousness.
 
She has spent numerous months abroad, studying conservation biology in the cloud forests of Costa Rica, rainforest ecology in the Colombian Amazon and Mayan agriculture in the Yucatan Peninsula of Mexico. She recently completed a study trip focused on the history of the U.S. National Park System, emphasizing the ideals of conservation and preservation in America since the early 1900s.
 
Ray is the daughter of David and Lisa Ray, and the granddaughter of Hugh Benson, all of Springdale.
 

Leslie Edgar, associate professor in the agricultural education, communications and technology department, has been named director of the Dale Bumpers College of Agricultural, Food and Life Sciences office of international programs at the University of Arkansas.

Edgar will serve as the primary contact for Bumpers College students interested in international experiences, will create awareness of international opportunities associated with their majors, and inform students of funding opportunities on campus to help offset expenses.

She will work with the UA office of study abroad and international exchange. She will also assist Dean Mike Vayda in setting policy and direction for international experiences to enhance marketability and professional career objectives for students.

“Leslie will be fantastic in this role,” said Vayda. “We were looking for someone to lead the program who will develop career opportunities for our students, and I am confident she will connect students with opportunities that will best serve them and our corporate partners.”

Edgar replaces food science professor Andy Proctor, who served in the role since 2011.

 “I plan to work one-on-one with faculty and students to identify premier programs and target countries for growth. I am looking forward to working with both experienced and interested faculty to identify areas for program improvement, diversification, and, if possible, growth.”

In 2012, Edgar initiated an international student exchange and internship program with the Institute for Agricultural and Fisheries Research and the University of Ghent. The program has been featured as an exemplary example of a study abroad experience in the college.

Edgar earned a doctorate in agricultural leadership, education and communications from Texas A&M University in 2007. She holds a master’s and bachelor’s degree in animal science, both from Utah State University.

She has garnered 23 awards for teaching and scholarly activities. Edgar received the John W. White Outstanding Teaching Award in 2013, one of the highest teaching recognitions at the university. She also received the North American Colleges and Teachers of Agriculture Teaching Award of Merit in 2013.
 

America's Car-Mart Inc. opened its 127th dealership this week continuing its expansion in Georgia.

The dealership is located in Covington, Ga. and marks the company’s third store in the Peach State. It’s also the third store opening this fiscal year.

Car-Mart continues to grow its store base by 10% annually, filling in markets across the southeast where the buy here, pay here used-car business already has brand recognition.

Shares of America’s Car-Mart have slid 10% since the end of May, as the company’s last two quarters raised concerns over more competition from other subprime lenders, that has forced Car-Mart to tweak its own payment terms to keep its best customers.

Car-Mart shares were trading at $41.02 in the morning session on Friday (Aug. 30), down 13 cents from the prior day. Over the past 52 weeks the share price has ranged from $35.89 to $50.59.

CEO Hank Henderson said the company’s growth strategy will continue as the financial balance sheet and existing back office infrastructure are strong enough to support the expansion.

The name has changed at the 66 Federal Credit Union in Springdale. The financial institution is now Truity Credit Union, the board announced this week.

“Our new name, Truity Credit Union, stands squarely on our 74-year foundation of trust and integrity. We are proud of our rich tradition and history with Tyson Foods. The new name will convey that we serve any employer groups as well as help position the credit union for future growth and financial strength,” said CEO Kelly Diven.

Truity Credit Union has $698 million in assets and serves more than 62,00 members worldwide.

Festiva Hospitality Group said it has purchased new properties in Arkansas and Missouri as it expands its real estate portfolio throughout the Ozarks. 

The Greens in Bella Vista, Cherokee Village at Lake Thunderbird and Los Logos in Hot Springs were recently purchased by Festiva.

Other recent purchases include:
Branson Yacht Club on Tablerock Lake and Stonebridge Village in Branson, Mo.

Festiva is a vacation ownership company. These properties were built and sold as time share investments, but they are also available as non-member rentals.

Wal-Mart Stores Inc. told investors on Thursday (Aug. 29) that it could provide up to $50 million in low-interest loans or other types of payments to Bangladesh factory owners for building improvements.

The information was provided by Wal-Mart’s investor staff in a private call, a transcript is expected to be released today (Aug. 30).

Reuters reports the money is part of the more than $100 million in loans and access to capital that a group of North American companies including Wal-Mart and Gap Inc pledged in July. The Bangladesh central bank would need to approve any foreign currency loan. Details about lending rates also need to be finalized.

Bangladesh worker safety issues were raised after more than 1,100 workers perished when a garment factory collapsed in April. Prior to that 112 workers died in a factory fire in November.

Last month, Wal-Mart became part of an Alliance for Bangladesh Worker Safety, after they refused to join a separate European-led initiative known as the Accord on Fire and Building Safety in Bangladesh.

Reuters reports that Wal-Mart is speaking with the central bank of Bangladesh as it tries to figure out the best way to fund factory safety improvements, whether through loans, earlier payments for shipments or other methods.

Wal-Mart was linked to the deadly fire in November as the factory was making the retailer’s Faded Glory clothing without its consent. 

In response Wal-Mart stepped up mandatory factory inspections and introduced a no-tolerance policy for unauthorized sourcing.
Wal-Mart has begun the inspections of the roughly 280 Bangladesh factories it gets goods from and those reports are made public on its website.

According to Reuters the inspections are turning up infractions large and small and the factories are give a set time for remediation. The corporate officer told investors the cost of those updates and repairs amounted to tens of thousands of dollars so far.
 

Consumers sentiment dipped slightly in August from the prior month, but American’s were still more upbeat than a a year ago, according to the University of Michigan Sentiment Index released today (Aug. 30).

The final reading of the Thomson Reuters/ University of Michigan survey was 82.1 in August, retreating from 85.1 in July — a six-year high.

Consumers were more optimistic than economists expected, outpacing their forecast reading of 80.5.

"Most of the late August gain was due to more favorable income expectations, with consumers expecting the largest income gains in nearly five years, although the median expected increase was just 0.9%, less than the expected rate of inflation," survey director Richard Curtin noted in the release.

They survey found that sentiment varied among income levels with households below $75,000 growing more pessimistic in the face of higher interest rates and stagnant income growth.

These concerns helped to drive the consumer expectations downward.

Economists fear consumer sentiment could weaken if higher interest rates start to slow momentum in a housing revival that has been one of the brightest spots in the overall U.S. recovery.

Inflation remains low around 3% for the one-year period, while the longer term inflation outlook was 2.9%, according to Reuters.

 

Sparks Health System announced Friday (Aug. 30) the promotion of Shelly Weilenman, RN, MSN, CENP, to the position of Arkansas market chief nursing executive, effective Sept. 3, 2013.

Weilenman serves as administrator & chief nursing executive at Summit Medical Center in Van Buren. Her newly expanded position gives her oversight of nursing at both Summit Medical Center and Sparks Regional Medical Center in Fort Smith.

Weilenman brought nearly 30 years of health care experience with her when she joined the Summit staff in October of 2012.

“I’m excited to embrace this opportunity,” said Weilenman, adding, “I am passionate about both the science and the art of nursing. I look forward to working with my colleagues at Sparks in our collective mission to provide this region’s best nursing care.”
  
Weilenman earned a master’s and bachelor’s degree in nursing with honors from the University of Mississippi School of Nursing. She also received an associate degree from North Arkansas Community College in Harrison, Ark., and she was inducted into the Sigma Theta Tau international nursing honor society. A registered nurse, Weilenman is also certified in Executive Nursing Practice by the American Organization of Nurse Executives.

Weilenman also serves on the Board of Directors for the Van Buren Chamber of Commerce and on the University of Arkansas Fort Smith’s Advisory Committee on Nursing.

Summit Medical Center’s CFO, Anthony Brooks, will work as interim administrator at Summit until Weilenman’s successor is named. 

Sparks Health System includes Sparks Regional Medical Center, Sparks Clinic (an employed multi-specialty physician group), PremierCare (a physician-hospital organization), Sparks Home Health and the fully hospital-integrated Marvin Altman Fitness Center.

Summit Medical Center is a fully accredited, 103-bed acute care hospital. The medical staff includes numerous specialties such as Anesthesiology, Cardiology, Emergency Medicine, Family and Internal Medicine, Bariatric and General Surgery, Orthopedic and Plastic Surgery, Pediatrics and Wound Care. 

Arvest Bank on Sept. 4 will launch its two-month, bank-wide effort to provide at least one million meals to local, hungry families. The initiative will continue through Nov. 2, and culminates just before Thanksgiving when donations are presented to 53 recipient organizations who feed the hungry in their communities.

Arvest Bank’s 1 Million Meals initiative challenges bank associates, customers and communities to participate in fundraising efforts and nonperishable food drives to fight hunger in the more than 120 communities the bank serves. The timing of the initiative is critical as one in six American households reported food hardship, or not having adequate funds to provide enough food for their family, in 2012.1

Arvest Bank in Fort Smith will begin its part of the effort to provide one million meals to those in need with a reception from 11 a.m. to 1 p.m.  on Wednesday, Sept. 4, at the Arvest Tower located at 5000 Rogers Ave. Anyone who brings in a donation (food or money) during the reception times will get a discount coupon to Bob Evans restaurant.

Donations made at Arvest branches in Fort Smith, Van Buren, Alma, Greenwood, Poteau and Sallisaw will go to the Community Services Clearinghouse's Meals for Kids backpack program.

Donations made at Arvest branches in Russellville, Clarksville, Paris and Mena will go to Arkansas Rice Depot's Food for Kids backpack program. The backpack programs focus on providing weekend food for children in area schools. The backpack programs’ wish lists include individual serving-size juice, cereal, pudding, fruit cups as well as meat sticks or Vienna sausages, crackers and other individual serving snacks.

Local residents may help by dropping off nonperishable backpack-friendly food items or making monetary donations at any of the 24 Arvest branches in the Fort Smith/River Valley area or calling (866) 952-9523 to contribute. In addition, every Arvest branch is selling 1 Million Meals paper plates for $1 throughout the two months. Every dollar raised through 1 Million Meals provides the equivalent of five meals for local, hungry families.

In 2012, the bank-wide effort raised more than 1.38 million meals, up from the 1.2 million meals in 2011.

“Here in Fort Smith and the River Valley, every dollar donated or nonperishable food item contributed stays local and benefits support the Community Services Clearinghouse and Arkansas Rice Depot’s backpack programs. We are honored to join these organizations in providing meals to hungry families,” Craig Rivaldo, Arvest Bank president and CEO of the Fort Smith/River Valley region, said in a statement.

Arvest Bank’s 53 recipient organizations were each selected on a local basis. 

ABF Freight System has again seen a $750 million lawsuit against the International Brotherhood of Teamsters and YRC rejected by a federal court.

ABF, the largest subsidiary of Fort Smith-based Arkansas Best Corp., announced Aug. 30 through a filing with the U.S. Securities and Exchange Commission that the United States Court of Appeals for the Eighth Circuit affirmed a lower court ruling to dismiss the case.

Officers with ABF have claimed that YRC, a trucking company, and the Teamsters violated the National Master Freight Agreement when the Teamsters provided YRC wage concessions that other trucking companies under the agreement were not provided. The NMFA, implemented April 1, 2008, was designed to create equal labor costs and other benefit payments among trucking companies with drivers represented by the Teamsters.

The lawsuit, first filed in November 2010, was dismissed a second time by U.S. District Court Judge Susan Webber Wright (Eastern District of Arkansas). ABF officials are deciding whether to take a third shot at the case.

“ABF is disappointed in the court’s ruling and the fact that YRC received three rounds of concessions from the IBT that ABF did not also receive. ABF is assessing the opinion and determining whether to pursue additional options,” noted the ABF response.

Arkansas Best officials have said the Teamster wage concessions gave YRC a competitive advantage, and resulted in higher operating costs for ABF. In the past four years, the company has posted a loss.

For the first six months of 2013, the company posted a loss of $8.517 million, more than the loss of $6.321 million during the same period in 2012. In 2012, the company posted a $7.7 million loss, a wide swing from the $6.159 million gain in 2011. The 2011 income company was a big improvement from the $32.693 million loss during 2010. The 2011 financials marked the end of two consecutive years of income losses.

Company and Teamster officials are close to finalizing a new five-year labor agreement. The existing labor contract technically expired March 31, but has been extended to Sept. 30 to allow for supplemental provisions of the contract to be renegotiated or taken back to certain union offices for another vote. The core of the contract was approved by Teamsters on June 27.

Key terms of the contract include an immediate 7% wage reduction that is recovered by the fifth year of the contract. The company was also able to negotiate for flexibility in work schedules and work across job classifications. Most of the about 7,500 workers covered under the agreement are drivers, but the union membership also includes dockworkers, mechanics and office staff. Arkansas Best employs more than 10,000.

Youth Bridge received a $2,000 donation from Target to continue its art therapy program for the girls and boys at its emergency shelters. Youth Bridge depends on a variety of psychotherapy services such as art therapy to create a level of trust and accomplishment among clients. 

Art therapy uses materials such as paint, oil pastels, markers, clay or crayons as a means of self-expression. It is often a solution for a teen that has been in a difficult situation such as divorce, abuse, or violence in the home or has struggled with an addiction or eating disorders.

Creating art can help reduce stress, build social skills and solve behavioral management problems. Many students of art therapy often find that this helps give them a new sense of perspective on their situation.

In addition, the results of clinically managed art therapy programs on average show an overall reduction with anger, anxiety, addictions, depression and other mental health disorders by 30% while showing an increase in self-esteem of 50%. 

Since 1946, Target has given 5% of its profit, which today equals more than $4 million a week to local communities like Northwest Arkansas.
 

A recent survey by STORES asked consumers to identify their favorite online retailers. Consumers were simply asked which websites they shopped most often.


Rankings were based on the total number of responses to the following open-ended questions: “What website do you shop most often for apparel items?” and “What website do you shop most often for non-apparel items?” 


STORES magazine reports that 58% of the survey respondents cited Amazon.com as the “most preferred online merchant” for both apparel and non-apparel items. 

Amazon garnered three times the votes of the No. 2 choice — Walmart.com, according to the survey conducted by Prosper Insights & Analytics. 


“There are a number of things that resonate with shoppers — from the breadth of the assortment to the efficiencies built into the purchasing process, the cross-sell and up-sell merchandising tactics and the value proposition,”  Kim Ann King, chief marketing officer for SiteSpect, said in the STORES report.


The top 10 favorite retailers
1. Amazon.com
2. Walmart.com
3. eBay.com
4. Kohls.com
5. BestBuy.com
6. Target.com
7, JCPenney.com
8. Macys.com
9. Sears.com
10. OldNavy.com

“People choose online shopping sites for various reasons, but new, innovative and personalized features seem to be what brings consumers back to their favorite retailer’s website time and time again,” said Pam Goodfellow, director for Prosper Insights & Analytics.

She said many of these Top 50 have rewritten the rules when it comes to retaining and attracting online customers which will likely make them a topic of conversation for a long time. Belk.com debuted at No. 39 and Hot Topic landed the No. 43 spot, both cracked the “Top 50” for the first time.
 

Being ready for Day One is the No. 1 priority for Arkansas’ newest publicly traded company, Murphy USA.

The spin-off of the El Dorado-based oil and gas parent company, Murphy Oil Corp., Murphy USA opened for trading on Tuesday (Sept. 3) on the New York Stock Exchange under the trading symbol “MUSA” with the stock beginning at $37.30 per share. (Shares traded higher during the day, and were up more than 50 cents in early afternoon trading.)

Murphy Oil shareholders received one share of MUSA common stock for every four shares of Murphy Oil common stock held at the close of business on the record date of Aug. 21, 2013.

The company already has its management team and board of directors in place, so it was ready for business on its first day as a standalone firm.

“Being prepared for Day One is key,” Murphy USA CEO Andrew Clyde tells Talk Business Arkansas. With Murphy USA operating in many ways as an independent division within Murphy Oil, Clyde expects few, if any, glitches. Because the spin-off date was initially fluid, he said his team hit a July 1 deadline to have all of the accounting, finance, IT and human resources components in place. Contracts have been altered to segregate the two companies at the right time.

He’s been hitting the road to meet with investors, analysts and potential shareholders in the third quarter of 2013. His presentation is made easier by the fact that he’s selling an existing enterprise that has been the baby of the family business.

“Not only has the earnings been tangled up and hidden inside Murphy Oil Corp, but the story has been a little lost as well,” he said. “It just doesn’t get the attention on the earnings call and at the analysts’ meeting, and rightly so, it’s a smaller portion of the business. As a standalone business, it is the story.”

BY THE NUMBERS
The new company, which will keep its headquarters in Murphy Oil’s El Dorado corporate complex, already has a major U.S. footprint.

As of June 30, 2013, there were 1,179 retail outlets in 23 states with plans to top 1,200 by year’s end. The business also owns midstream assets, including product distribution terminals and pipeline positions.

Murphy USA accounts for roughly 47% of Murphy Oil’s current revenues, which topped $28.6 billion in 2012. Projections for 2013 indicate that Murphy USA will easily clear $19 billion in sales of fuel, merchandise and other transactions.

The new public company, with more than 7,600 employees, handles more than 1.6 million transactions daily and cleared $83.5 million in net income last year.

About 77% of the company’s retail locations are 208 square foot kiosks that handle 1.6 million transactions daily. Murphy USA is experimenting with larger 1,200 square foot formats, but its strength is in the smaller size, many of which can be found on Wal-Mart properties across the south and midwest.

That “strategic and complimentary” relationship with Wal-Mart is one of five major pillars that Clyde is counting on to come out of the gates fast with the new publicly traded company. Murphy USA has embarked on a 200-store expansion with Wal-Mart over the next three years.

“When you’re sitting in front of the world’s largest retailer, you’re drawing a lot of traffic,” Clyde says. “It’s great real estate and it’s a great consumer base because they are looking for low price and great values everyday.”

Low-cost gasoline and low-cost overhead are two more crucial components to driving shareholder value for Clyde. He notes that price-conscious shoppers – like the ones visiting Wal-Mart – are Murphy USA’s target customers.

Price is the overwhelming number one reason a customer chooses a gas station, Murphy USA’s research shows. In presentations to analysts, Clyde highlights a slide that shows price and promotion account for 81% of the decision-making driving fuel purchases. Convenience is also an important factor.

Murphy USA’s efficiency in building sites – $1.5 million to $2 million per location – and the associated labor that comes with such an efficient operation is another crucial piece to its profitability puzzle. In its smaller 208 square foot formats, payroll may only include five employees.

“We think everyday about if we are doing something to add complexity to our business because we know if we add complexity, we’re going to add costs,” Clyde said.

He also asserts that the company’s safety, security and environmental record is “sterling” and its maturity in the fuel supply chain, thanks to Murphy Oil’s history, gives the new spin-off advantages to maintain low costs that will translate into lower prices for consumers.

“I think the story for investors is pretty straightforward,” Clyde says. “We have some distinctive strength and strategies. We have a strong earnings base, we have growth ahead of us, and we have a conservative capital structure. Those things make a really compelling story.”

It’s crunch time for nine entrepreneurial teams taking part in this year’s ARK Challenge as they get ready for the high stakes program finale — Demo Day — set for Thursday (Sept. 5) at Crystal Bridges Museum of America Art in Bentonville.


This field of nine was chosen from 92 applications for the rigorous 14-week boot camp. Each team earned $20,000 in seed money in exchange for a 6% interest. They also were provided access to a mentoring network to help them get their startup business going and ready to pitch to other angel investor groups on Sept. 5.

“This year’s class is a very competitive international group chosen from 15 different states and 15 countries. They are further along with their ventures than last year’s contenders as some of them already have customers and are generating revenue,” said Jeannette Balleza Collins, program director for the ARK Challenge.


Collins said the selected companies have each put in three months of intense, hard work to get their business ventures ready for an 8-minute investment presentation in hopes of winning one of two coveted $100,000 investment prizes given by the ARK Challenge sponsors: Fund for Arkansas’ Future, Gravity Ventures, Winrock International, New Road Ventures and Arkansas Development Finance Authority.

The contest criteria includes that the companies have some application in retail, transportation and logistics, food industries or consumer technology.

One lucky winner will also be chosen as a new board member for the University of Arkansas RFID Research Center.

“That is another opportunity for one of entrepreneurs presenting in Thursday’s Demo Day,” Collins said.

The business ventures that will be pitched to a room of investors on Sept. 5 include services for consumers that will help track luggage and make flying more convenient, provide a tool to order home-cooked meals that are delivered hot to the front door and help keep the country’s highways safer by forewarning of accidents. There are also ventures to help newspapers and crafters among this group of contenders.

Collins said the this year’s teams are in their final lap preparing for the Demo Day showdown.

“We have had more inbound interest from outside investor groups who plan to attend this year’s Demo Day. Last year there were three winners chosen by the ARK Challenge judges, but three other teams also secured funding as a result of that day from outside investors. This cohort is more mature, and that should bode well for their attracting more investors,” Collins said.

THE NINE TEAMS
Langhar : a web/mobile app to access a trusted community marketplace where students, young professionals and businesses can book delicious, home cooked meals for pickup, delivery or dine-in experience at the chef’s home. Founders: Karanpreet “Karan” Singh, Pankaj Sharma, Pawan Saini and Sunil Kumar from Delhi, India

Passenger Baggage Xpress:
 Your luggage passport, PBX is the travel baggage tracking/recovery network, complete with website, mobile app and unique PBX ID system, that makes flying with luggage secure and easy. Founders: Michael Eason and Brandon Eason of Little Rock

WeGreek: A group management tool, built exclusively for fraternities and sororities, to help chapters manage all activities in a single place. Founders: Mary Dunlap, Luke Pittman, Lukas Deem and Jonathan Ulrich of Conway and Little Rock


PressBaby: 
Multimedia digital content creation and distribution engine for newspaper and magazine publishers. Founders: Jody Shackelford and Emily Reeves of Hardy and Little Rock

Visualogistic Technologies: 
Distributed, low-cost, networked forewarning Automated Detection & Alert System (ADAS) to prevent highway collisions and to promote safety awareness. Founders: Brett Schaefer, Eric Specking, Andrew Dodson and Dr. Scott Smith of Fayetteville.


Overwatch: Mobile app, hardware and branded guns and gear that combine core game features and technologies from combat video games for enhanced live-action airsoft, paintball and laser tag matches. Founders: Josh Moody, Joe Saumweber and Michael Paladino of North Little Rock and Bentonville

Info Assembly: An intelligent enterprise search and analytics platform that accelerates investment research and empowers faster reporting and business decision making.
Founders: Aditya “Adi” Goel and Karthik “Kar” Vaidyanath of Delhi, India

Gamerius: Focused on delivering a seamless experience for the entire lifecycle of a game, the only community-curated marketplace where gamers can choose, fund and purchase games. Founders: Juan Videla and Agustín Juárez of Buenos Aires, Argentina and Montevideo, Uruguay

Craftistas: A monetization platform that not only helps bloggers and content creators turn their creative content into a personal shopping experience, but also changes the way people discover and buy craft materials. Founders: Camille Malkiewicz and Ashleigh Pinkerton of Syracuse, New York, and Fayetteville.

NorthWest Arkansas Community College officials are pleased with the 8,102 students enrolled as of the 11th day of classes for this fall semester, despite a 3.8% decline from the year-ago report.

The community college said the number of new freshman and high school students enrolled concurrently is up from a year ago, and they saw a 17% jump in the number of students attending classes at the Jones Center in Springdale, the second year for that program.

NWACC’s attendance at the Washington County Center on White Road in Springdale also jumped from 775 to 908 students, an increase of 17% from a year ago. Enrollment in online classes at the college increased approximately 5%. Online classes are 22% of the total college credit hours. The unofficial student semester credit hours count for fall 2013 is 74,887, down from 77,745, down 3.7%.

“What’s happening at NWACC mirrors other community colleges throughout the country,” said Steven Hinds, executive director of public relations and marketing.

The National Student Clearinghouse Research Center released a report in May showing a 3.6% decrease in 2013 spring enrollment versus 2012 spring enrollment at two-year public colleges. Hinds said generally speaking, that can be a positive indicator for the local economy because community college enrollments typically fall or flatten when the economy improves.

“As more jobs open up, people are able to enter or return to the workplace,” he added.

New first-time freshmen numbered 1,662 in the preliminary count, up from 1,558 a year ago. These students help fill the gap left by 1,286 students graduating with degrees or earning certificates in the spring semester. NWACC had a record number of graduates this past academic year, according to Dr. Todd Kitchen, vice president for learner support services.
 
“Those record numbers are a great reflection on our students and our dedicated faculty,” Kitchen said, “and we are pleased to see our students succeed in such a measurable and meaningful way. Because 95% of our students remain in the Northwest Arkansas region, that represents a boon for the local economy and the larger community.”

The local workforce numbers have grown from a year ago to 241,040 in July, adding nearly 4,000 jobs in that annual period, according to the Bureau of Labor Statistics.

One area that continues to grow with the improving economy is college’s distance learning division, according to Dr. Kate Burkes, program director. She said the number of students taking at least one online class has risen from 39% to 42% of the total student population. 

The college also reported 759 area high school students are enrolled concurrently at NWACC this fall, up 4.54% from a year ago.
 
The enrollment figure of 8,102 is still a preliminary number. Eleventh-day enrollment numbers provided to the state Department of Higher Education do not include students who may be auditing a class or who are enrolled in “late start” classes that begin after the traditional 16-week term kicks off, college officials said.

UNIVERSITY OF ARKANSAS
Preliminary enrollment figures at the University of Arkansas show the flagship campus now has a total of 25,365 students – shooting past the goal of breaking the 25,000 level by 2021.

Since 2008, UA enrollment has increased by 32% – more than 6,000 students. The enrollment increase has resulted in the UA named the 13th fastest-growing U.S. public research university by the Chronicle of Higher Education.

UA officials also praised the quality of students enrolled. New students with a high school GPA of 3.75 or higher is at a record high of 43.5%, and 17.7% of the freshman class has an ACT score of 30 or higher – a new record for the university. Also, graduate student enrollment has grown to 3,904 students, the largest one-year increase in several years. Since 2006, graduate student enrollment has increased by 16%.