This holiday season looks particularly bright for Tyson Foods’ execs who have earned fatter bonuses thanks to stellar fiscal 2013 results in a somewhat challenging operating climate. But more importantly, CEO Donnie Smith said they are just getting started with brighter expectations in 2014 and 2015.

Ahead of the market opening on Monday (Nov. 18), Tyson reported strong fourth quarter results pocketing $261 million in net income, up 41% from the year-ago period. On a per-share basis, the meat giant earned 70 cents a share, one penny better than Wall Street expected.

Revenue soared to $8.894 billion in the recent quarter, in line with the analysts’ consensus, and 6.96% higher than a year ago.

For the full year, Tyson earned $778 million, on revenue of $34.374 billion. Net income and sales rose 33.4% and 3.9%, respectively, when compared to the prior fiscal year.

Smith said momentum began to build in the back half of fiscal 2013, which ended Sept. 30 for Tyson Foods.

“We had a great fourth quarter, and 2013 was the best year in company history in terms of record sales and earnings per share,” Smith said.

The solid news helped rally shares early on Monday. The stock price rose more than 3% on the release to $30.22, but quickly lost those gains, settling back to $29.27, up 1.75% by the noon hour.

Last year, Smith outlined expectations to grow top line revenue by 3% to 4%. Tyson also outperformed its early 2013 goal of near-flat earnings per share, instead posting a 15% rise in adjusted earnings growth from its global operations during this full year.

One other area Smith has been adamant about improving is value-add sales. During fiscal 2013, Smith said value-added sales increased by nearly 6%, against an aggressive goal of 6% to 8% annually.

Also, Tyson’s efforts to grow sales from its international business were strong with a 20% increase in fiscal 2013, better than the 12% to 16% goal set last year.

“We achieved these results while buying back $550 million in stock, paying more than $100 million in dividends, continuing to build out operations in China and growing our prepared foods business through acquisitions and by entering new product categories,” he added.

Tyson also outlined several management changes for this coming year, including the pending retirements of Jim Lochner and Donald “ Buddy” Wray. Wray is the long-time Tyson exec who was brought back to Tyson Foods in 2008 by the late Don Tyson to “provide strategic counsel” for a company that was then in tough financial times.

"Buddy has invested more than 50 years of his life in Tyson Foods," Smith said. "He has been a trusted advisor to me during a phenomenal period in our company's history," Smith said. "His wisdom and guidance helped us deliver outstanding results and his nearly six decades of experience have been a wonderful gift."

Wray will step back in early 2014. Lochner's future retirement plans are discussed below with the beef segment results.

CHICKEN GROWTH
Chicken remains a strong category for Tyson Foods, generating net operating profits of $175 million in the recent quarter, up 26.8% from the prior-year period.  For the full year chicken operations generated income of $646 million, up from $484 million in fiscal 2012.

Tyson achieved these results in spite of incremental feed expenditures of $30 million and $470 million, in the quarter and year, respectively.

Smith said lower grain costs with the recent bountiful harvest and lower market pricing won’t actually show up in production results until early second quarter of 2014.

Total chicken sales in the quarter reached $3.16 billion, up 2.4% on higher volume and 4.3% on higher prices. For the full year, chicken sales totaled $12.296 billion, helped by 1.9 increase in volume and a 6.1% hike in prices.

Smith said Tyson captured share as the No. 1 chicken brand in the U.S. during the quarter, according to Nielsen. He said the company will continue its buy-versus-grow policy through 2014, as it works to keep excess supplies out of the freezer.

“We will continue to buy breast meat in the open market that goes into valued-added products, in order to keep dark meat surpluses from occurring. We will also work toward more product innovation with dark meat products,” Smith said during the earnings call with analysts.

As part of the management realignment, Smith said Tyson will divide up the executive duties of its poultry and prepared foods division.

“Separating our poultry and prepared foods businesses will give us sharper focus in two critical, expanding areas,” Smith said. “I’m excited that Noel White, a proven leader in our fresh meats business, is moving to Arkansas to run our poultry business.  And I’m equally excited that Donnie King will devote his considerable talents to our growing value added foods business and creating an integrated sales and marketing organization to deepen our relationships with customers.”

These management changes are expected to be in place by March 2014.

BETTER BEEF
Tyson’s beef segment is performing better than the market as a whole, as chief operating officer Jim Lochner told analysts his packing margins are not in the red, but they are somewhat compressed given tighter cattle supplies.

In the recent quarter, Tyson reported operating income of $162 million, up from $117 million a year ago. Sales rose to $3.745 billion, up 4% on stronger volumes and better pricing.

For the full year, the segment had an operating income of $296 million, up 35.7% from 2012. Sales rose to $14.4 billion, helped by price increases of 6.8% but somewhat tempered by a 1.8% decline in total sales volume.

Lochner said consumers traded down to chicken and lower priced proteins this past year, while tallow and outside trim purchases were also lighter.

He told analysts that he doesn’t expect to see any major packing plant closures this coming year despite the smaller herd numbers. He said Tyson has adequate supply of fed cattle and steers relative to the plant locations it operates.

Lochner, who took over as chief operating officer in 2009, announced he will retire in September 2014, but in the next few weeks he will return to the company’s fresh meats headquarters in Dakota Dunes, S.D., where he will support the fresh meats business that has been run by Noel White. Following retirement, Lochner will serve the company in an advisory capacity through the end of 2017.
 
“My goal has always been to retire at 62, and thankfully I am able to do that,” Lochner said during the call.

He has spent 30 years in the meat packing industry with Tyson Foods and IBP Inc. prior to that. Tyson acquired IBP in 2001. Lochner is revered in the meat packing industry and is credited with much of the turnaround Tyson Foods has achieved during the last four years.

Steve Stouffer, senior vice president of beef margin management, will take over as president of Tyson Fresh Meats as While makes his move to Springdale.

LEANER PORK
Tyson Foods reported flat pork results in the recent quarter, and a 20% drop in operating income during fiscal 2013. At $296 million, operating income for fiscal 2013 was hurt by reduced exports and tighter packer margins.

The company said margins were compromised by unpredictable domestic demand, which drove up average sales prices and livestock costs.

Pork sales totaled $1.4 billion in the recent quarter, aided by a 12.6% jump in pork prices despite a 5.6% dip in volumes sold. For the full year, Tyson posted pork sales of $5.4 billion, down slightly from the $5.5 billion recorded in 2012.

PREPARED FOODS
The prepared foods segment is comprised of a diverse group of companies and operations from tortilla plants to lunch meat and soups. Tyson said it views this segment as a growth vehicle and continues to invest heavily here. Donnie King, was tagged to lead this division in its aggressive strategy going forward.

In the recent quarter, this segment posted an operating income of $16 million, down from $38 million, a year ago. In fiscal 2013, the segment’s operating income declined from $181 million to $101 million, as the company incurred additional costs related to is expanding lunchmeat business with a major plant overhaul in Houston, Texas.

LOOK AHEAD
“We expect fiscal 2014 sales to approximate $36 billion as we continue to execute our strategy of accelerating growth in domestic value-added chicken sales, prepared food sales and international chicken production,” Smith said.

The company expects to spend $700 million in fiscal 2014, and continues to generate strong cash flows which has enabled it increase the dividend and still maintain $2.1 billion in total liquidity as of Sept. 30.

On Nov. 14, the board of directors increased the quarterly dividend previously declared on Aug. 1, to 7.5 cents per share on Class A common stock and 6.75 cents per share on restricted Class B common stock.

The increased quarterly dividend is payable on Dec. 13, to shareholders of record at the close of business on Nov. 29.   

Smith told analysts he was excited about the prospects for a very strong 2014, and he encouraged consumers to chose chicken, beef and pork over turkey during the upcoming holidays.

K. Vaughn Knight, a Northwest Arkansas attorney and one-time associate with Brandon Barber, was found guilty on eight charges related to money laundering and fraud related to Barber’s messy bankruptcy.

Barber, once a high-profile developer during the heady days of seemingly non-stop Northwest Arkansas commercial development, was arrested March 20 on several federal charges related to fraud and his bankruptcy filing.

At the time, Conner Eldridge, the United States Attorney for the Western District of Arkansas, and Christopher Henry, IRS-Criminal Investigation Special Agent in Charge for the Nashville Field Office, and Randall Coleman, FBI Special Agent in Charge, said Barber and four other men were charged with federal crimes stemming from schemes to defraud involving several Northwest Arkansas real estate transactions and Barber’s bankruptcy case.

The other individuals charged following Barber's arrest were Knight, 46; New York attorney James Van Doren, 37; Jeff Whorton, 45, of Johnson, Ark.; and Brandon Rains, 31, from Springdale.

On Monday the jury handed down a guilty verdict on the conspiracy to commit bankruptcy fraud, bankruptcy fraud-concealment of assets, false statements, and five counts of money laundering. The case was heard in the federal courthouse in Fort Smith of U.S. District Court Judge P.K. Holmes.

It didn’t take the jury long to decide on the guilty verdicts against Knight. Closing arguments were heard Friday (Nov. 15), with jury deliberation beginning at 2:56 p.m. on Friday – the ninth day of the trial – and concluding just before 5 p.m. the same day. The jury convened 8:30 a.m. on Monday (Nov. 18), with the verdicts handed down shortly after the noon hour.

No sentencing date has yet been set for Knight.

Penalties for the charges include 10 years in prison and $250,000 fine for money laundering, five years in prison and a $250,000 fine for the conspiracy to commit bankruptcy fraud, and five years in prison and a $250,000 fine for bankruptcy fraud by concealment of assets or false statements.

Barber has previously plead guilty to the following activities:
• Conspiracy to Commit Bankruptcy Fraud: Beginning in April 2008 and continuing through Nov. 9, 2010, Barber reached an agreement with K. Vaughn Knight and James Van Doren to conceal and disguise income and funds belonging to Barber in order to hide those funds from creditors;

• Conspiracy to Commit Bank Fraud: From around Aug. 2008 to around Dec. 2008, barber conspired with Jeff Whorton, Brandon Rains, David Fisher and others to defraud First Federal Bank. The parties falsely and fraudulently represented the purchase prices of certain lots known as "Executive Plaza" to be higher than the actual sales prices in order to obtain higher loans from First Federal Bank; and

• Money Laundering: Barber engaged in money laundering when he conducted monetary transaction of criminally derived property through a financial institution. …Barber had agreed with Van Doren and Knight to conceal certain income and transactions from the bankruptcy court.

Barber faces up to 45 years in prison with fines possibly maxing out at $1.5 million.

UPDATED INFO: In an Monday afternoon interview with The City Wire, Eldridge said he was pleased with the verdict from a jury who sat through a two-week trial and reviewed more than 400 exhibits.

“This case is about fraud, and you know, this jury verdict recognized that there was significant fraud that occurred here,” Eldridge said, adding that “there was clearly a conspiracy between the two of them (Barber and Knight).”

Of the six indicted so far in the Barber case, four have plead guilty, Knight was found guilty and David Fisher was found not guilty in an alleged role to inflate real estate sales prices. In addition to Barber, the other conspirators to plead guilty were New York attorney James Van Doren, 37; Jeff Whorton, 45, of Johnson, Ark.; and Brandon Rains, 31, from Springdale.

Eldridge would not speculate as to if others will be charged in the transactions related to the Barber bankruptcy.

He did say the sentences could be handed down in the first quarter of 2014.

Eldridge’s office issued this statement late Monday: Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that K. Vaughn Knight, age 46 of Fayetteville, was found guilty today by a jury on all 8 counts charged. Knight was found guilty on one count of conspiracy to commit bankruptcy fraud, two counts of bankruptcy fraud, and five counts of money laundering. The Honorable P. K. Holmes presided over the two-week trial that featured over 300 exhibits and twenty-five witnesses in the United States District Court in Fort Smith.

U.S. Attorney Eldridge commented, “This case has always been about fraud.  The evidence showed that Vaughn Knight agreed with Brandon Barber to conceal a large sum of money by using his lawyer’s trust account and then did not tell the Bankruptcy Court about those funds.  This conduct prevented honest, hard-working subcontractors and other creditors from having a chance to recover at least some of the money they were owed.  His actions were also not only for afield from an attorney’s professional obligations - they were fraudulent and criminal.  We thank the jury for their service.  We will remain dedicated to prosecuting fraud - whenever the facts and law leads us.”

“IRS-Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money, and we are proud to work with our law enforcement partners by lending our expertise in these complex financial investigations," stated Christopher A. Henry, Special Agent in Charge. “Today’s verdict sends a clear message to those who would consider conducting or participating in these types of fraudulent financial transactions.”

"The jury's verdict in this case sends a strong message to those who would engage in a scheme to help others hide assets from bankruptcy court; it is simply not worth it," stated Acting FBI Special in Charge Howard S. Marshall. "I commend the perseverance of those who worked on this three-year investigation, including the United States Attorney's Office, Internal Revenue Service, and the FBI's New York Headquarters, and Fayetteville and Fort Smith offices."

According to the evidence presented at trial, beginning in January 2008 and continuing through November 9, 2010, Brandon Barber reached an agreement with his attorney K. Vaughn Knight and James Van Doren to conceal and disguise income and funds belonging to Barber in order to hide those funds from creditors and the bankruptcy court.

From April 1, 2008 to July 31, 2009, Knight received over $1.3 million in funds into his Interest on Lawyer’s Trust Account (“IOLTA” account) to be held for the benefit of Brandon Barber. At Barber’s direction, Knight transferred the funds in the IOLTA account to various persons or entities on Barber’s behalf, including paying personal expenses. In order to execute and conceal the scheme to defraud creditors, Knight filed a petition for Chapter 7 bankruptcy on behalf of Barber. None of the funds in Knight’s IOLTA account were disclosed to the bankruptcy court as income, and Knight reported that Barber’s income was only $3,426.95 in 2008. Knight also served as Barber’s attorney of record for an adversarial proceeding and in doing so, made false and fraudulent representations in relation to his bankruptcy petition. Knight failed to disclose Barber’s only profitable entity during this time period. That entity, EIA International LLC, was solely owned by Barber and earned over 2.5 million dollars in gross income in 2008. Knight knew of Barber’s income because the majority of that income was deposited directly into Knight’s IOLTA account.

Barber, Knight, and three other defendants were originally indicted earlier this year. On March 6, 2013, Barber, Knight, and Van Doren were charged in a 27-count indictment.  On January 16, 2013, Barber, Brandon Rains, and Jeff Whorton were charged in a three-count indictment. On October 20, 2013, Vaughn Knight was charged in an 8-count superseding indictment. Brandon Barber pleaded guilty to one count of conspiracy to commit bankruptcy fraud, one count of conspiracy to commit bank fraud, and one count of money laundering on July 31, 2013.  Rains, Van Doren, and Whorton previously pleaded guilty to various charges.

The defendant’s sentence will be determined by the court after a review of factors unique to this case, including role in the offense, other relevant conduct, and the characteristics of the offense. The sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. In this case, Knight faces the following maximum penalties for each count: conspiracy to commit bankruptcy fraud—five years in prison and a $250,000 fine; bankruptcy fraud—five years in prison and a $250,000 fine; money laundering—ten years in prison and a $250,000 fine.

This case was investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. United States Attorney Conner Eldridge, First Assistant United States Attorney Wendy Johnson, and Assistant United States Attorneys Glen Hines and Benjamin Wulff are prosecuting the case for the United States.

Renovation of the historic Friedman-Mincer building in downtown Fort Smith is on track, but the new owner said it is “impossible to fully appreciate” what it has taken just to get the structure to the point where architects and designers could begin work on renovation details.

Steve Clark, building owner and owner of Fort Smith-based Propak Logistics, said Monday (Nov. 18) that structural renovation work is likely to begin in January 2014. Clark said the work between June and now focused on securing the structure so core samples could be taken to determine the type of architectural and design work needed to restore the more than 100-year-old structure.

The historic and white tiled Friedman-Mincer building – also known as the OTASCO building – at the intersection of Garrison Avenue and Towson Avenue in downtown Fort Smith was built in 1911. Clark announced in May he would restore the structure and move his Propak corporate offices to the building.

The acquisition and estimated renovation costs should total around $2 million the three-story, 24,000-square-foot building, Clark said. When completed, about 40 Propak employees will work in top two floors, with retail space planned for the bottom floor. Propak now has offices in a 9,000-square-foot space in the Arvest tower in Fort Smith. The company provides logistics, transportation and supply-chain management services.

“The good news is that the building is now safe and secure,” Clark said Monday, adding that “it’s testament to the (original) workmanship that it’s still standing up.”

A pleasant discovery during the initial process was that some of the timbers “are magnificent” and will be saved and “repurposed throughout the building.”

Clark said he has received “strong interest” in the retail space, with some of that coming from a micro brewery in Northwest Arkansas. Because he wants it to be a “flagship building for the downtown,” Clark said he will be careful as to what type of tenant – or tenants – will occupy the first floor.

Regional economic conditions have been tough on businesses, but Clark said he hopes the Friedman-Mincer work and several other renovation projects on Garrison Avenue “is a call to action for the business community” to invest in the city.

“It’s not lost on me that whatever dollar we invest today, will be valuable 100 years from now. But these are difficult times, and that’s not lost on me,” Clark explained.

When asked if more jobs are needed to spur investment or more investment is needed to recruit jobs, Clark said his belief is that a quality environment will attract jobs and investment.

“I am a firm believer that if you make a space where people want to be, then the people will come. ... To me, quality attracts quality. ... To me, a great building has a potential to create mass, which in turn creates gravity which in turn attracts people to it,” Clark explained.

Figures from the Central Business Improvement District – a governmental organization the promotes development in the downtown Fort Smith area – indicate that around $8 million has been invested in the area since 2011.

Rogers-based CCF Brands, a consumer packaged goods company that distributes fresh eggs under the Great Day Farms and Farmer’s Market labels, was recognized by Progressive Grocer magazine in its 2013 Category Captains contest.

Progressive Grocer made the announcement in its November issue, naming CCF Brands a “Category Advisor Winner/Perimeter Dairy.” CCF Brands was the only winner in the category.

“This prestigious award is based on a rigorous application process, which explains how our winners have developed customized solutions involving the latest in technology to help grow profitability and win new customers in retail grocery,” B.G. Burg, midwest sales manager with Progressive Grocer, said in the statement. This is the 17th year for the contest.

CCF Brands eggs are sold in 37 states and the company has extensive category advisor experience in the egg category, according to Jodie Daniels, director of marketing for CCF Brands.

Daniels said credit for the award goes to his company’s category management & shopper insights division, led by Tonya Horn.

“We’ve known for a long time that this team is the best in industry. It’s nice to see them attracting national recognition from a leading trade publication for the grocery industry,” Daniels said.

Tyson Foods execs said Monday (Nov. 18) its Dynamic Fuels plant in Geismar, La., remains idle as it has not reached an agreement to restart production with its joint venture partner, Syntroleum Corp.

Every month the plant sits idle each partner burns though $1 million in cash to support a facility that is fully staffed and on-standby mode. Aside from the monthly cash burn, Syntroleum execs estimate the venture has lost out on roughly $20 million in potential sales since July because the partners can’t reach amicable restart terms.

“While the plant is ready for commercial operations, the Dynamic Fuels management committee has not agreed on the terms of the restart. On two occasions Syntroleum requested its partner to agree to restart the plant,” Syntroleum’s Senior V.P. Ron Stinebaugh noted in the company’s recent earning call with investors.


The City Wire asked Tyson execs for an update on the plant operations during Monday’s earnings call with the media after CEO Donnie Smith said last quarter the plant would not be restarted as long as its partner (Syntroleum) was shopping its interest with potential buyers. 
On Monday, Smith simply said the partners had not reached a restart agreement and declined to discuss the matter any further.


Stinebaugh said there are multiple interested parties involved in due diligence to acquire Tyson Foods' interest in Dynamic Fuels and there is nothing materially wrong with the plant. He said the partners have had different interpretations of the agreement terms.


Dynamic Fuels completed the installation of the new $7.3 million catalyst on June 28, and the plant was ready to restart immediately. A new solvent recycle pump is onsite ready to be installed, but no date has yet been scheduled, according to Stinebaugh. 

He said the tax credit extension to 2014 remains up in the air and won’t likely be discussed until early 2014. But he doesn’t believe the full $1 tax credit is needed to run profitably given it has the ability to use multiple types of feedstock that can turn out renewable diesel and jet fuel.


Syntroleum said in May that it will cost about $20 million in working capital to restart the plant, most of which is the investment in feedstock. 

At the end of September, Syntroleum had a cash balance of $16.5 million, with a spend rate of approximately $1.5 million per quarter, excluding funding cash calls for Dynamic Fuels. That venture has a current cash balance of $2 million and is awaiting payment from the federal government of $3.5 million, according to Stinebaugh.

If Syntroleum is not successful in selling its interest in Dynamic Fuels, Stinebaugh said the firm would work aggressively as possible with Tyson Foods to restart production.

Wal-Mart is taking no chances this year with potential threats of lost sales to competitors on Black Friday. The retail giant said it will begin matching Christmas ads today (Nov. 19) more than a week ahead of Black Friday.

The Christmas Ad Match has also been extended to Walmart.com.


Customers who purchase an item on Walmart.com, and find a lower price in a local brick and mortar competitor, can email the Walmart.com and receive the difference on a gift card. The same policy is in place for customers at Walmart stores for items purchased Nov. 1 through Dec. 24, excluding Thanksgiving Day and Black Friday.

Wal-Mart also said it will kick off a pre-Black Friday savings event in stores and online, lowering the prices on popular toys and electronics to match select Black Friday offers from Target, Toys “R” Us and Best Buy, one week early.

Throughout the cyber world, millions of people are talking online. Talking about what they had for dinner, where they went shopping and what they think about the experience.

That creates a treasure trove of information that companies can use to determine what people are saying about them. But the problem is, there’s so much information out there that it’s difficult to harness, store, process and analyze.

DataRank, a 26-month old Fayetteville-based company, helps consumer companies mine and sort through this data to better understand their online reputation. What’s more, DataRank helps the companies best prioritize the information for decision making processes.

Started by three college friends from the University of Arkansas, DataRank was originally called TTAGG and DataRank was the name of the product. About six months ago, they changed their company name to DataRank because “that name told their story much better,” said Ryan Frazier, co-founder. Their niche market is consumer product companies and retailers, including restaurants. Many of these include companies in the supplier community.

NINE DIMENSIONS
DataRank uses nine “dimensions” that they divide into two categories: content influence and user influence. The nine dimensions (or areas used to prioritize the online data) are:
• Subject-matter relevancy (are they actually talking about the brand or product or are they using similarly-sounding words or ideas?)
• Sentiment intensity (how intense is the sentiment being expressed either in favor or against?)
• Social and community interaction (likes, shares, etc. on social media channels)
• Collective-interest match (searching for similar topics that might be expressed in various ways)
• Online following (does the user have a large following that could be influenced by their comments?)
• Relevant subject-matter expertise (how much does the user seem to know about the subject matter, based on other posts they’ve made?)
• Following interaction (how often does the user’s followers interact with their content?)

• Verified demographic information (user demographic information including age, location, etc.)
• Community status (does the user have identifiable community influence such as being an administrator on a site?)

STRENGTHS, WEAKNESSES
Frazier said DataRank’s strength is its sheer ability to take large data sets and make them more manageable. A big part of what makes that possible is that each person on the team is comfortable in his or her role and is an expert in their area.

“We’ve been lucky enough to find the right team members to fit the culture,” Frazier said.

If he were to name a perceived weakness, it’s the company’s small size compared to larger, more well-known ranking companies like Nielsen. The opportunities for growth in the industry fuel the company’s potential for growth, however.

“Experts estimate that (big data) will grow 40 times over the next six years,” Frazier said. “This will make ranking and prioritizing data that much more important and that’s what DataRank does better than anyone.”

As the ability to mine data grows, so does the potential that consumers will find ways to keep their comments private.

“(A potential threat to growth) is if consumer behavior shifts and people become on the whole more private or use exploding services like Snapchat more frequently,” Frazier said. “There is a threat of the social data source going extinct.”

RAPID GROWTH
The two-year old company started with the three founders and already has eight employees. By the beginning of 2014, they expect to have 11 people working at the company, Frazier said. The roles include developers, client services and sales. All three roles are vital to the growth, which has been exponential.

“We’ve grown sales 350% this year,” Frazier said. “We’re profitable.”

Frazier said they see that the big data industry is going to only get bigger. It’s been a matter of getting technology scalable and with that now available, they are getting partnerships with agencies and marketing firms. Many of the clients are direct companies, but there is more of a need to partner with agencies with multiple partners that might need the data services.

According to Forbes.com, IBM states that 90% of the world’s data was created in the last two years alone. A recent study of 75 North American retail executives found that 46% of retailers considered the volume of information they had to deal with to be their biggest challenge. That creates an even bigger need for companies like DataRank.

Universities are responding to the rapidly growing need for big data management, including the University of Arkansas. The Walton College Graduate School of Business now offers a graduate certificate in business analytics that provides hands-on training using big data from some of the world’s biggest most notable companies including Sam’s Club, Tyson Foods Inc., Dillard’s Inc. and Acxiom Corp.

“Right now, one of the biggest things going on in our world is this big data explosion,” said Eli Jones, dean of the Walton College in a press release. “Getting the tools – the knowledge – of how to find patterns in big data, that is going to accelerate one’s career. There are people who are looking for people who can make decisions based on big data. There are huge opportunities in this area, and the Walton College is taking a leadership role in addressing that key need.”

Home sales in the Fort Smith area showed mixed results in October compared to the same month in 2012.

In Crawford County, 46 homes were sold last month resulting in sales volume of $5.145 million. That is an increase of 3.92% over October 2012 when 37 homes were sold at a volume of $4.951 million.

Sebastian County saw 103 homes sold last month at $12.517 million in volume, which was actually a drop of 9.54% from the same month last year. Even though only 92 homes were sold last year, the volume was $13.837 million.

For the first 10 months of 2013, home sales are down almost 3% in Crawford County and are up 13.6% in Sebastian County.

Jerome Flusche, principal broker with Kralicek Realty in Fort Smith, said even though job announcements have been made in the last year that will add more than 1,000 jobs to the area job market, the losses during the Great Recession have still impacted home sales.

"Used to, we had a constant turnover from less-priced homes as people moved on," he said. "Now, property is not moving as good as it should."

Flusche said in some parts of the country, home prices are returning to pre-recession levels. But he said the Fort Smith metro area is struggling to recover home prices.

His assertion is based on average sale prices for homes sold, which in October were lower in both counties. Crawford County had a decline in average price of 16.41% from $133,827 last October to $111,866 the same month this year. Sebastian County saw an even larger decline, dropping 19.2% during the same period from $150,398 to $121,525.

And while Flusche would like to believe the economy is on its way back, he said the proof of how the economy is doing can be found in the rental markets.

"From a rental property standpoint, we have some vacant commercial property," he said. "But most of our residential property is pretty well rented."

With commercial vacancies up and residential vacancies down, it shows a lack of confidence in the markets, he said. The only upside is that with less people shopping for homes and more people looking to rent, the market for rental property managers is in good shape.

"This market we're in now is amazing, especially for people wanting to build rental property. I think that's why you see so many new duplexes going up in Fort Smith."

And even though Flusche would describe the area's economy as "stagnant," he provided some level of perspective.

"I remember back in Jimmy Carter's era where I financed a house at 13%," he said. "A lot of people didn't think interest rates would ever be below 10%."

Home Sales Data (January-October)
• Crawford County
Unit Sales
2013: 422
2012: 435

Total Sales Volume
2013: $47.002 million
2012: $52.26 million

Median Sales Price
2013: $106,000
2012: $120,139

• Sebastian County
Unit Sales
2013: 1,048
2012: 922

Total Sales Volume
2013: $144.44 million
2012: $128.537 million

Median Sales Price
2013: $115,000
2012: $119,000

An estimated $3.2 million expansion of the American Tubing plant in Springdale is expected to create 50 new jobs and boost the company’s annual payroll to $1.35 million. The company now employs around 160.

The Springdale-based company manufactures copper components used in the air conditioning and refrigeration industries. Company products are also used by defense industry companies. The expansion will add aluminum components to the company’s product portfolio.

“We are extremely excited about this new product line,” American Tubing President Chuck Lewis said in a statement. “We have worked closely with our customers for the past two years to be ready for production in 2014. Since 2008 business has been somewhat flat. Growing and innovating is what we do best.  It’s good to have too much to do again.”

The company operates from a 60,000-square-foot on Ford Avenue in Springdale, and plans to add 20,000 square feet to the building. American Tubing, in operation since 1976, is a subsidiary of Birmingham, Ala.-based National Tubing Holding.

“American Tubing’s decision to expand in Springdale rather than looking elsewhere confirms the quality and dedication of the company’s existing workforce,” said Grant Tennille, executive director of the Arkansas Economic Development Commission. “We appreciate American Tubing’s continued commitment to its Arkansas manufacturing facility.”
 
In the press release, Lewis praised the help the company received from officials with the  city and Springdale Chamber of Commerce.
 
“American Tubing would very much like to thank the Mayor’s Office, the Planning Commission, and the Planning and Community Development Department for all their help to get this project underway,” Lewis said. “Having the Springdale Chamber of Commerce in your corner is also a great benefit in getting things done so you can continue to grow as a business.”

The new jobs are being filled through three staffing firms – A.S.A.P. (479) 750-2727; ONIN Staffing (479) 751-0101; and 1st Employment Staffing (479) 444-7671.

And although the Northwest Arkansas job market has been on a positive track for several years, the region’s manufacturing sector can use the added jobs from the American Tubing expansion.

The Northwest Arkansas manufacturing sector employed an estimated 27,000 in August, unchanged compared to July, and above the 26,800 during August 2012. Sector employment is down more than 21% from more than a decade ago when August 2002 manufacturing employment in the metro area stood at 34,300.

Overall, the August report marked the 13th consecutive month that the region’s jobless rate has been at or below 6%.

Sam’s Club has operated in the shadow of big brother Wal-Mart Stores for 30 years, but some analysts and a former Sam’s Club exec say that perhaps the warehouse club and its big box relative would be better served independently.

Wal-Mart Stores has recorded $465.9 billion in sales through three quarters of this year. And while Sam’s Club comprises 12% or $42.48 billion of the total sales, it only contributes 7% to the company’s bottom line profits.

Meanwhile, Wal-Mart continues to report sluggish traffic patterns and weak comparable sales overall, with forecasts into next year much the same. Other competitors like Costco have fared much better with recent comp sales of 6%.

Brian Sozzi, CEO of Belus Capital Advisors offers this prescription: “Get rid of Sam’s Club. ... It doesn’t belong in the company especially when the focus in clearly on investing online and winning internationally.”

Sozzi made these remarks in May during an interview with Jeff Mackle at Yahoo! Finance Breakout. He said under the umbrella of Wal-Mart, Sam’s Club, arguably the 8th largest retailer in the U.S., can easily get lost in the shuffle.

THE RUMOR CYCLE
Carol Spieckerman, CEO of New Market Builders in Bentonville, said rumors of a Sam’s Club spin off have sparked over the years only to die down and then spark up again.

“It is interesting that the buzz has increased recently given that Sam’s and Wal-Mart have never had a more synergistic relationship. I can see how a spin-off would be more likely, and potentially beneficial, these days if only because WalmartLabs is an empowered entity that both banners can draw from,” Spieckerman said. “Pulling from Wal-Mart’s buying power and supplier relationships is one thing, but harnessing the digital-forward strategies coming out of WalmartLabs while developing a separate identity is another. It could be more compelling in the end.”

Sozzi told Breakout that a spinoff is something the next CEO of Wal-Mart should strongly consider, because as the two remain hitched there is brand confusion and there is no way Sam’s can fulfill its potential of becoming Costco’s biggest nightmare.

REQUEST TO MOVE SAM’S HQ
Robb Voss, a retired executive and one of the original team members to found Sam’s Club, told The City Wire he begged Wal-Mart co-founder Sam Walton several times between 1983 and 1990 to move Sam’s headquarters out of Bentonville. He said around 1995 he called a meeting at Sam’s Club and told the corporate buyers that Wal-Mart was spinning off the division, just to get a feel for how the internal staff would react.

“They were shocked until I told them I was only kidding, but this was needed to help us regroup and consciously work on Sam’s Club’s own identity, not just a cousin or brother to Wal-Mart,” Voss said.

The secret to running a successful warehouse club is and always has been stellar merchandising, finding unique products that aren’t also sold at Wal-Mart, according to Voss. He said being located in Bentonville, aka Wal-Mart supplier central, comes with pressure to take certain items.

SUPPLIER ISSUES
The close supplier relationships between Wal-Mart and Sam’s Club are sometimes seen as advantageous, but Voss doesn’t believe that is universally true.

“I always felt Sam’s Club merchants should go after the one-of-kind products and higher-end merchandise that consumers want whether that is potato chips or polo shirts,” Voss said.

He said Costco has always been run by a merchant, and though they have had a few setbacks through the years, they are winning in comp sales, higher tickets and increased traffic.

“You don’t find Frito-Lay or Coca Cola in a Costco, because those products are available everywhere else,” Voss added.

Voss said he dearly love’s Sam’s Club, but he is captivated by the merchandise he can find only at Costco.

Sozzi classified Sam’s Club as akin to a low-end Wal-Mart with an annual membership fee, but it were to act alone it could aspire to be much more.

MARKET, BRAND OVERLAPS
Jason Long, CEO of Shift Marketing Group, agreed that Sam’s Club’s full potential is held back as long as it tethered to Wal-Mart. Reaching the growth and cachet of a Costco is doubtful, he said, especially with the higher income demographic that frequents club stores.

“Spinning Sam’s Club away from Wal-Mart would provide them the opportunity to better-position their brand and to focus their energies on growing their business instead of fighting for internal resources,” Long said.

Other shared resources like logistics, data processing and satellite feeds are beneficial to Sam’s Club as long as its hitched to Wal-Mart.

But at the same time, Wal-Mart continues to go after Sam’s Club market with events like the recent “Stock-up and Save” campaign, where the suppliers parked large trailers in Wal-Mart supercenter parking lots to sell bulk packages of consumer goods.

And then there is the constant threat of cannibalization, which is always an issue for multi-banner and multi-format retailers like Wal-Mart, according to Spieckerman. She said Wal-Mart is managing the dilution, but a bigger issue is price transparency, as shoppers do the math between the two retailers.

“Sam’s Club members expect more than nominal value in exchange for membership fees. I don’t see how a spin-off would solve for this concern since the two brands are closely identified,” Spieckerman said.

GOOD ENOUGH
Long said Sam’s Club is “good” and will likely remain so as long it operates under Wal-Mart. 

“But if the retailers aspire to be best-in-class and delight the consumer they should give serious consideration to separating Sam’s Club from Wal-Mart,” Long said.

He said at the very least, the retailers need to look for ways to better carve out a unique brand identity and story for Sam’s Club.

“They could look to other companies including Aldi,” which has successfully differentiated its Aldi and Trader Joe’s formats, he said.

Voss also doesn’t expect Wal-Mart to cut the ties, but said Sam’s can still follow the essential rules for warehouse clubs — be a merchandiser first, find unique products that consumers want and can’t buy anywhere else, then offer them at a value proposition.

The company that took a financial gamble on what has proven to be a successful makeover of the former Phoenix Village Mall property may soon invest at least $7 million in the acquisition and renovation of the Fianna Hills Country Club in Fort Smith.

Lance Beaty, a partner with Dr. Stephen Nelson in Fort Smith-based FSM Redevelopment Partners, has confirmed he is working with club owners David Mille and Jim Shields on buying the club and 18-hole golf course. Both sides are in the due diligence phase, with a goal to close on a deal before the end of the year.

Professional service firms working with Beaty during due diligence include Van Buren-based Burrough Brasuell Corp., Rogers-based HP Engineering Inc., and Fort Smith-based The Hill Firm Inc.

In January 2009, FSM Redevelopment Partners purchased the 35-acre former Phoenix Village Mall in west Fort Smith. When purchased, it was a poorly-maintained site that contained more than 10 acres of structures on about 35 acres.

Since that time, FSM Redevelopment Partners invested more than $10.5 million in improvements, including a successful expo center that was open for about three years before closing to make room for a regional service center operated by Health Management Associates. The service center is expected to employ at least 500. Including the HMA jobs, the Phoenix area is now home to more than 1,100 jobs. FSM Redevelopment still owns the mall site and continues to make improvements there.

Shields told The City Wire on Tuesday (Nov. 19) that he and Mille, head of Van Buren-based Mid-South Steamboiler & Engineering Co., are working with Beaty on the possible transaction. Shields, who recently turned 70 years-old, and Mille have owned the more than 40-year-old club and course since 2003. Shields said it’s time to hand the club over to a new owner with a new vision.

“It’s like raising a kid, because there comes a time when you and the kid need to separate,” Shields said.

MAJOR RENOVATIONS NEEDED
Shields said there have been several renovations made to the club in recent years, including a major overhaul of the golf course, but he said it needs much more.

“This place is due for a major renovation,” he said.

And that’s what Beaty and Nelson have in mind if the deal goes through.

Beaty would not go on the record with specific plans, but said the club will be “extensively” gutted and modernized. The investment may include a renovation of the pool area and “significant” expansion of meeting, dining and other spaces.

If the deal closes by the end of the year, Beaty estimates a design and facility plan will be complete by April 2014, with bids going out in May. New construction and renovation of existing facilities could begin in early summer, with the work completed by Fall 2015.

Shields said Beaty will “bring a new perspective” that most of the about 345 club members will like.

“People who know Lance know that he’s not coming here just to sit on his hands,” Shields said. “Yes, we will have a few naysayers, but I don’t expect many. I think in general it will be received very positively.”

CLUB STRUGGLES
Beaty will need a positive reception.

The club has struggled in recent years with membership and revenue. According to an IRS report for the club’s fiscal year ended June 30, 2011, the club posted revenue of $1.9 million, down from the $2.046 million in the previous fiscal year. The revenue in the year ended June 30, 2012, fell to $1.693 million.

Also, membership revenue in the 2012 fiscal year was $858,484, down from the $1.035 million in the 2011 fiscal year.

The trend nationwide has not been positive for the golf industry and associated clubs. The National Golf Foundation has reported that the number of people who play golf has dropped from 30 million to 26 million since 2000.

But Beaty does not believe the industry trends are a deal breaker. His model, similar to that he pursued with the Phoenix Mall property, is to “reposition” the club in a manner that expands the demographic reach and revenue sources.

“That’s the key to this, to reach a different, a younger audience and demographic. And just like we found out with the expo center, there will not be another venue in this market that will provide the range of amenities, event and social activities that we will have here,” Beaty said.

Also, Beaty noted, the supply of such facilities on geography that overlooks a large portion of Fort Smith is limited.

“This is hard and expensive property to replicate. And it has got good bones,” he said.

America’s Car-Mart has been rolling out new dealerships at a robust 10% rate this year and last, but in the recent quarter ending Oct. 31,  the buy here, pay here, used car dealer faced competition that curtailed its net profits.

The Bentonville-based company posted net profits of $5.8 million for the recent quarter, down 20.2% from the $7.268 million pocketed in the year-ago period.

On a per-share basis earnings totaled 61 cents, down from 76 cents, a year ago. Car-Mart missed Wall Street’s consensus expectations of 80 cents per share. The announcement was released about three hours after the markets closed on Tuesday, (Nov. 19).

Car-Mart also missed top line revenue expectations of $126.8 million, instead reporting $121 million, a solid increase of 10% from the same period in 2012. Same-store sales, rose 3.8% in the quarter, which was aided by a slight uptick in the average retail sales price and steady traffic patterns.

"We are pleased with our top line growth in this presently challenging competitive environment. ... We are highly focused on increasing customer success and tightening expenses while ensuring that our infrastructure remains solid to support the business," said CEO Hank Henderson.

He said many companies are competing for Car-Mart customers on the funding side, but they are not focused on earning repeat business that has always been Car-Mart’s goal.

“This is a reality that is having a negative effect on our business especially on the provision for credit loss line. We remain committed to the belief that the only way to run this business for the long-term is to do everything possible to help customers successfully complete the terms of their contracts. By focusing on customer success, we will continue to fulfill our vision of being the most respected buy-here-pay-here organization in the country," Henderson said.

Because Car-Mart provides in-house financing for its 60,000 customers, maintaining steady loan portfolio performance is important to the company’s net profit.

The company reported net charge-offs as a percent of its finance receivables of 6.9% in the quarter, up from 6.5% in the prior year. Likewise, the provision for credit losses also ticked higher to 26.3% of sales versus 24.1% in the prior year.

Car-Mart sold 10,608 automobiles, an average of 27.6 units per dealership per month in the recent quarter. While total unit sales were up 8.1% from a year ago, the monthly average sales per dealership slipped from 28.2 units.

The company opened three new dealerships in the quarter, ending the period with 129 lots, which was 12 more than they had a year ago.

“We have several new openings planned for the next few months and we continue to expect to open a total of 12 for the fiscal year," Henderson said.

Chief Financial Officer Jeff Williams said the provision of credit losses are higher than they would like, but the company’s balance sheet and cash-on-cash returns are still very attractive.

"As we have said in the past, we believe it is prudent to maintain a very conservative balance sheet, especially in the current operating environment. Our debt to equity ratio was 47% and our debt to finance receivables ratio was 26.1% at the end of the quarter,” Williams said.

Shares of America’s Car-Mart closed Tuesday (Nov. 19) at $42.75, up 56 cents. Car-Mart execs will hold a call with analysts at 10 a.m. Wednesday, (Nov. 20) to discuss the financial results of the recent quarter.

The City Wire will update this story following that call.

The Fort Smith Board of Directors approved an ordinance Tuesday (Nov. 19) authorizing the issuance of taxable industrial development bonds for Gerber Products in the amount of $150 million.

According to Deputy City Administrator Jeff Dingman, the bonds will be re-paid in full by Gerber with no liability to the city. Dingman said the bond issuance will result in jobs at the north Fort Smith manufacturer.

"This bond ordinance represents assisting Gerber invest up to $150 million in their plant expansion resulting in 90 additional jobs through increased production at their plant," he said.

Vice Mayor Kevin Settle was quick to praise Gerber's growth in the Fort Smith area.

"Thank you to Gerber for your great investment into the city," he said. "And I'm glad you're doing this."

Mayor Sandy Sanders echoed Settle's comments, pointing to the confidence shown by the investment Gerber is making in its well established Fort Smith facility.

In other business, the Board:
• Approved an ordinance certifying to the Sebastian County Tax Collector delinquent property cleanup liens;
• Approved an ordinance establishing June 30 as the annual cutoff date for consideration of appeal for delinquent property cleanup liens;
• Approved an ordinance establishing dates, time and location for regular meetings of the Board of Directors for the year 2014;
• Approved a resolution authorizing partial payment to Archer Western Construction for the construction of the Zero Street Pump Station;
• Appointed April Byrd to the Fort Smith Municipal Employees Benevolent Fund Board of Advisors; and
• Re-appointed Pam Weiler, Joseph Irwin and Joel Scott Stubblefield to the Oak Cemetery Commission.

It may not be obvious to the naked eye, but Fort Smith will be a bit more crowded through the upcoming weekend as players, coaches, support staff and fans stream into the city for the Heartland Conference regular-season volleyball tournament taking place this weekend at the University of Arkansas at Fort Smith's Stubblefield Center.

According to Dr. Dustin Smith, UAFS director of athletics, the tournament will feature UAFS and three other teams.

"(In our conference), the team who wins the regular season (games) hosts the tournament," he said.

With the UAFS Lady Lions boasting a 21-8 record going into the tournament, no other school was even in contention to host the tournament. It's the second such volleyball tournament the school has hosted. The school also hosted a Heartland Conference basketball tournament last year and a golf tournament about two years ago, according to Smith.

And while it is important for any school hosting a tournament to have home court advantage, Smith also spoke about the financial side of hosting a tournament.

"We get the benefit of not having to pay any of (the travel expenses), plus you have your home court advantage," he said. "Now if you compare it to what the Razorbacks do, we don't get (paid any money by the conference). But they do pay for the officials and lodging for the officials."

To give an idea of how much money the athletic department is saving by hosting the tournament in Fort Smith, all you have to do is look at what expenses the three schools participating in the tournament (Dallas Baptist, St. Edward's and St. Mary's) must front for their student athletes.

"You're looking at probably $35 to $40 per kid in meals. You're looking at roughly $100 per room, with seven to 10 rooms per team. And then your entertainment, depending on what they do and how many times they have to do it, you figure about $25 per kid."

For a team of 25 spending three days out of town, a college could be looking at nearly $7,900 using the figures provided by Smith.

Factoring in fans and support staff that travel with the team would put the number even higher.

According to Claude Legris, director of the Fort Smith Convention and Visitors Bureau, the tournament to be hosted this weekend will pump more than $175,000 into the local economy.

"The bottom line is we're looking at $176,072 which would have gone somewhere else, which is a good thing," he said. "If the university had not done as well as they did in the outcome, they would not have been the host. By them doing as well as they did, they brought this town $176,000 that would not have come here otherwise, which means Fort Smith being the hotbed of volleyball is a good thing."

And if the Lady Lions can add a few more wins to their already impressive 21-8 record, Smith said it is possible the school could host another tournament in the near future which could have an even larger economic impact in Fort Smith.

"The top eight teams make the regional tournament. If you rank high in the regional, you can host. So there could be eight teams and that expands that amount of money and the impact it could have in the community. So it would double that money for sure."

And while UAFS focuses on hosting the tournament this weekend, there is already talk about what the future holds for Fort Smith and sports tournaments, Legris said.

"It is our intention in 2015 to start pursuing that sports market once again because of the infrastructure we'll have in the city with the additional fields (at the River Valley Sports Complex and Ben Geren Regional Park)," he said.

But UAFS' Director of Sports Information Jonathan Gipson said his focus would be solely on this weekend and said if nothing else, the impending tournament will be a good thing for locals.

"Our conference is so geographically spread out, it's difficult for our home fans to make games," he said. "It's a reward for our fans who've been loyal to us to see them play in the conference (tournament) right in Fort Smith. And it gives us a good home field advantage."

The tournament begins Friday (Nov. 22) at 5 p.m. and runs through Saturday's final match at 1 p.m.

Tommy Coughlin IV, has been hired by Grand Savings Bank as a loan officer. Coughlin will manage business and consumer lending as part of Grand Savings Bank’s growth in Northwest Arkansas.

A graduate of John Brown University, Coughlin has a bachelor’s degree in organizational management. He has 10 years of experience in the banking industry, most recently as manager of the Bentonville and Roger locations for Regions Bank.

Tyler Steele, vice president of Grand Savings Bank, has known Coughlin for many years as both of them are Bentonville natives.

“Tommy and I go way back so I can attest to his strong character as a banker but more importantly, as a friend,” said Steele. “He will be crucial part of the team as we expand into Bentonville, Rogers and other parts of this region.”

Coughlin volunteers with the Boys & Girls Club of Benton County, Sharing and Caring of Benton County and The Miller McNeil Woodruff Foundation. He is a member of St. Bernard’s Catholic Church in Bella Vista. He and his wife are parents to their six-week-old son, Tommy V.

Grand Savings Bank is a community bank that has served Northeast Oklahoma since 1980 and is expanding into Northwest Arkansas with a new location in Bentonville.

A dominant landmark for the tens of thousands of residents and city visitors who travel along Rogers Avenue in Fort Smith is the almost 100-foot tall, nine-floor structure.

The building was constructed by Superior Federal Bank more than 30 years ago, and was acquired in Arvest’s $211 million purchase of Superior Federal Bank in late 2003.

The building has several tenants other than the bank, with a little more than 200 people work in the building, according to Craig Rivaldo, Arvest Bank President and CEO of the Fort Smith/River Valley region.

Work to renovate the outside of the structure began several weeks ago, and is expected to be finished in late December or early 2014. Other than to note that it was “major renovation,” Rivaldo declined to provide an estimate of the renovation costs.

Renovation work includes:
• Resurfacing the parking lot and making parking more customer friendly in front of the building;
• A second enter/exit lane for Rogers Avenue will be added;
• Improved exterior lighting;
• Fencing along the northwest side for improved security;
• Installation of canopies over entrances and awnings over windows;
• Cosmetic improvements will include larger “ARVEST” letters on top of the building and the addition of accent colors to the building; and
• New landscaping will be added to improve the building’s presentation toward the busy Rogers Avenue.

“The Arvest Tower building is more than 30 years old and needs an extensive update and renovation, Rivaldo said in a statement. “I have been amazed at the number of people that have asked me about the project. With all the questions I have received, it completely supports the notion that the Arvest Tower, located in the center of Fort Smith, is a highly visible icon for this city. When we are done with construction, I believe the citizens of Fort Smith will be proud of the renovations.”

Construction is staged in phases to avoid where possible interruptions during normal business hours. The building is open during the renovation work.

Based in Bentonville, Arvest Bank operates more than 260 bank branches in Arkansas, Kansas, Missouri and Oklahoma through a network of 16 locally managed banks, each with its own board and management team.

Cheryl Partain is the new billing and collections manager for the city of Fayetteville.

She has been the city’s financial analyst since 2005 and has worked in the accounting field for the past 18 years.

“I am very pleased to be selected as the city’s billing and collections manager. I look forward to continued service to the public in the billing and collections division, and I am pleased to be managing a department loaded with such talented employees,”  Partain said in the release.

She received a bachelor’s degree in accounting from the University of Arkansas in 1997. While working as the city’s financial analyst for the past eight years, Partain was cross-trained in all of the positions within the department,

A high attendance and requests from visitors to access the museum earlier has prompted Crystal Bridges Museum of American Art to expand its hours beginning Nov. 23.

On Saturdays and Sundays, the museum will be open from 10 a.m. to 6 p.m., which is one hour earlier. On weekdays, the lobby, library and coffee bar will open at 10 a.m., with the remainder of the museum opening at 11 a.m. as usual.

“We opted to expand our weekend hours due to the number of guests arriving early on Saturdays and Sundays and waiting for the galleries to open,” explained Crystal Bridges Executive Director Rod Bigelow. “Clearly there was an interest in earlier weekend hours, and we are happy to accommodate. Similarly, guests arriving early during the week can now visit the library or enjoy a cup of coffee before venturing into the galleries.”

New Museum Hours:
Monday, Thursday: 11 a.m. to 6 p.m. (Lobby, library, coffee bar open at 10 a.m.)
Tuesday: Closed
Wednesday, Friday: 11 a.m. to  9 p.m. (Lobby, library, coffee bar open at 10 a.m.)
Saturday, Sunday: 10 a.m. to 6 p.m.
Closed on Thanksgiving and Christmas.
Trails and Grounds are open from sunrise to sunset daily.
 
Holiday Programs
In November, Crystal Bridges is offering extended Drop-in Studio programming on Friday and Saturday after Thanksgiving, offering visitors of all ages an opportunity to create their own artwork between noon and 3 p.m. 

Guided tours of the museum’s permanent collection are available daily at 2:30 p.m., with an additional tour especially for families at 1 p.m. on Saturdays, and an architecture-focused tour at 4:30 p.m. on Sundays.

In addition, a Fall Forage Trail Tour is scheduled for Friday, Nov. 29 at 11:30 a.m. There is no fee for these programs.

The museum’s restaurant, Eleven, will also accommodate additional visitors with a satellite site for sandwiches and lunch offerings set up in the museum’s Great Hall from 11 a.m. to 4 p.m. from Friday, Nov. 29 through Sunday, Dec. 1. 

In December, more holiday programming is set for the week when children are out of school. From Dec. 21 through Jan. 5, the museum will offer Winter Break Wonders with daily drop-in activities for visitors, ranging from family-friendly performances by the StoneLion Puppet Theatre, Mr. Stinky Feet, and Storybook Strings, to artmaking activities, tours, and pop-up playgrounds hosted by Marie Vukin of Project Play Every Day. 

For adults, Crystal Bridges is hosting  its first-ever New Year’s Eve celebration, New 365, featuring music, dancing, food and drink, and more. Paired with a special package at 21c Museum Hotel, the evening offers a fun and festive way to ring in the new year.

The pace of home sales in Arkansas’ four largest metro areas continues an impressive rise toward the end of 2013, but the average home price is trending lower thanks to pressure from gradually rising interest rates.

During the first 10 months of 2013 the number of homes sold in the four markets totaled 17,546, up 13.4% compared to the 2012 period and at a level not seen since the robust housing market of 2007, according to The City Wire’s Arkansas Home Sales Report. The report is sponsored by Fort Smith-based Weather Barr.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within the state’s four largest metro areas — Central Arkansas, Fort Smith area, Jonesboro/Northeast Arkansas and Northwest Arkansas.

The report, which records closed sales, accounts for between 70% and 75% of total Arkansas home sales. This report counts the number of sales closed between January and October.

Home sales have improved throughout the back half of 2013. Sales in the four markets were up 12.4% in August, up 13.2% in September and up 13.4% in October.

The value of homes sold in the four markets during the first 10 months of 2013 was $2.932 billion, up 16.06% compared to the same period in 2012 and up 30.29% compared to the same period in 2011.

Average home prices during the first 10 months in the four markets was $167,148, up 2.35% compared to the same period in 2012 and up 12.39% compared to the same period in 2011. The percentage increase in the average price has declined in the back half of 2013. The average was up 3.87% in August, but the pace of growth declined in August and September to 3.08% and 2.35%, respectively.

Homes also are selling faster. The average days on market so far in 2013 is 87.62, better than the 96.89 in 2012 and 97.09 in 2011.

For the first 10 months of 2013, the number of homes sold in central Arkansas are up 10.39%, up 14.4% in the Jonesboro area, up 18.74% in Northwest Arkansas, and up 8.33% in the Fort Smith area.

Benton County continues to hold a narrow lead as the top Arkansas county for home sales during 2013. The county, with a population of around 230,000, had 3,893 home sales between January and October. Pulaski County, with a population of around 390,000, posted 3,804 home sales in the same seven month period.

OCTOBER ACTIVITY
Home sales activity was up in all four markets during October. There were 1,689 homes sold in in the four markets, up 16.24% compared to October 2012, and up 30.32% compared to October 2011.

However, the average price per home in the four markets was $158,322, down 4.53% compared to October 2012. The average price was up 4.2% compared to October 2011.

There were 772 homes sold in central Arkansas, up 10.29% compared to October 2012, and up 23.72% compared to October 2011.

October home sales totaled 567 in Northwest Arkansas, up 12.72% compared to October 2012, and up 34.36% compared to October 2011.

Jonesboro area home sales totaled 201, up 66.12% to October 2012 and up 67.5% compared to October 2011.

In the Fort Smith area, home sales totaled 149, up 15.5% compared to October 2012, and up 14.6% compared to October 2011.

The value of the sales during October were up 8.98% in central Arkansas, up 10.49% in Northwest Arkansas, up 47.33% in the Jonesboro area, and down 5.99% in the Fort Smith region.

THE REGIONAL PICTURE
Central Arkansas — Home sales
Jan.-Oct. 2013: 8,221
Jan.-Oct. 2012: 7,447
Jan.-Oct. 2011: 7,187

Fort Smith area — Home sales
Jan.-Oct. 2013: 1,470
Jan.-Oct. 2012: 1,357
Jan.-Oct. 2011: 1,429

Jonesboro area — Home sales
Jan.-Oct. 2013: 1,684
Jan.-Oct. 2012: 1,472
Jan.-Oct. 2011: 1,498

Northwest Arkansas — Home sales
Jan.-Oct. 2013: 6,171
Jan.-Oct. 2012: 5,197
Jan.-Oct. 2011: 5,021

The top five counties in terms of Jan.-Oct. 2013 home sales:
Benton — 3,893, up compared to 3,245 in 2012
Pulaski — 3,804, up compared to 3,513 in 2012
Washington — 2,278, up compared to 1,952 in 2012
Craighead — 1,345, up compared to 1,136 in 2012
Saline — 1,302, up compared to 1,160 in 2012

Link here for a PDF document of the October 2013 data.

THE INTEREST RATE IMPACT
Katherine Deck, an economist and director of the Center for Business and Economic Research at the University of Arkansas, has said that falling interest rates may have influenced falling prices. The same may be true of October sales in which the average home price dropped to $158,322 from $165,841 a year ago – a decrease of 4.53%.

The October report represents closed sales of contracts that were primarily entered into in August and September. The average rate on a 30-year, fixed interest mortgage was 3.34% at the first of 2013. By the first of August, the rate increased to 4.39% and stood at 4.32% at the end of September.

Interest rates impact the buying power of consumer purchasing a home. A one point bump in the average 30-year, fixed interest rate is an extra $100 per month payment on a $120,000 mortgage.

Bill Ladd, a Realtor with Moore & Company Realty in Russellville and the 2014 Arkansas Realtors Association president, said he is encouraged by increasing sales numbers throughout Arkansas. Through October 17,546 homes were sold by Realtors in the areas surveyed – higher than totals through the first 10 months of the previous five years and a bit behind 18,945 sales through October 2007.

Ladd said increasing sales in Arkansas through October has become the norm rather than the exception, and noted that prices have stabilized through the year. The average sales price through October was $167,148, the highest price on record since Arkansas Realtors started tracking comprehensive, statewide data in 2005.

JOBS, FORECLOSURE EFFECTS
Jerome Flusche, principal broker with Kralicek Realty in Fort Smith, said even though recent Fort Smith area job announcements have been made that will add more than 1,000 jobs to the area job market, the losses during the Great Recession have still impacted home sales.

"Used to, we had a constant turnover from less-priced homes as people moved on," he said. "Now, property is not moving as good as it should."

Flusche said in some parts of the country, home prices are returning to pre-recession levels, but he said the Fort Smith metro area is struggling to recover home prices.

The red hot Northwest Arkansas housing market continues to do well, with foreclosures being the only drag on the numbers – and that’s minimal. While the number of sales continue to improve year-over-year, the price-per-square-foot has tapered a bit as the foreclosure market has been more brisk in the last quarter, according to George Faucette, CEO of the local Coldwell Banker franchise.

“Every month this year has been better than every month last year, but our sales volume for October was flat compared to the same month last year,” Faucette said.

Since Director of Community Development Troy Galloway came to work for the city of Bentonville about 18 years ago, the idea of rehabilitating the downtown area has been a priority. 


Downtown Bentonville saw more than 600,000 visitors last year with a vibrant Farmer’s Market and First Friday events adding to the steady stream of patrons to Crystal Bridges Museum of American Art. That success is proof to many that long-term plans can come into fruition and can succeed. 


“It’s been the last three to five years when we’ve really seen the results of those efforts,” he said. “There were private investors who took a lot of risk early on.”

Galloway said that although growth has happened throughout Bentonville, the downtown region remains the “heart of Bentonville and we want that heart to be as healthy as possible.” 


The addition of the $800 million Crystal Bridges Museum, the $28 million 21c Art Hotel in downtown, new stores and new restaurants have all been both a result of and contributors to the revitalization efforts. A new Neighborhood Market and office and retail space is under construction just off the Square.

Bentonville has also invested in a trail system around the city that connects to the downtown. Since 2006 the city has built more than 20 miles of trails at a cost of roughly $1 million per mile.

MOVING SOUTHEAST
From cosmetic and infrastructure improvements to the Square and downtown business area, to now focusing on the southeast portion of downtown, Bentonville is working toward not only revitalizing the region but establishing districts throughout downtown. The Southeast Downtown Area Plan is in the study phase with details available on the city’s website.

The study area is located southeast of the Bentonville Square, with E. Central Ave. creating the northern boundary, SE J Street the eastern boundary, SE 10th St. the southern boundary and SW A St. the western boundary. The plan is to create arts and market districts as well as a well-established residential district in downtown, Galloway said.

CULTURE CREATION
Another component of revitalizing downtown is bringing people to the region so they can experience the revitalized regions. Downtown Bentonville Inc. (DBI) is the independent nonprofit downtown association that “inspires, unifies and champions the Downtown Bentonville Experience.

DBI hosts events downtown including the Farmer’s Market, monthly “First Friday” events and events that focus on the arts. David Deggs assumed the reins of the organization as executive director last month. His background is in education, especially adult and community education, Deggs said. His new role brings together the cultural, social, educational and artistic components of his experience and interests. 


“This job is about the quality of life (in downtown),” he said.


His primary project has been to develop relationships with area leaders including civic, business and within the artistic community to determine what their needs are moving forward into 2014 and beyond.

“We’re making sure the quality is there (in regards to the existing programs) and looking for new ways to build on that success,” he said.

Deggs said that downtown regions used to be the epicenter of a city but then they were abandoned when retail shops moved to malls and closer to residential areas. There is now a resurgence toward reuniting the community in the downtown region. 
He said having the Square helps these efforts because it offers a centralized meeting place to hold events and is a visual epicenter for a downtown region. A Square does not make or break a town’s ability to revitalize its downtown


“Can great communities exist that don’t have Squares? Absolutely,” he said.

PROMOTE EXPANSION
For Fayetteville, the revitalization the downtown area happened a decade ago and now the mission is expansion and promotion, said City of Fayetteville Chief of Staff Don Marr. 


“We’ve always been focused on downtown,” he said. “Our goal is to continue doing that. Downtown is the core of a community and that’s why we’ve been committed to it as long as we have.” 


Continued expansion requires the help of taxpayers and Fayetteville voters continue to support these efforts recently approving $10.9 million in bonds that will retire $1.5 million in remaining debt on the Town Center, $6.9 million to fund expansions at the Walton Arts Center and $3.5 million to help build a regional park.

WAC EXPANSION
The most recent big development was the recent approval of a bond issue that will fund expanding the Walton Arts Center and a new regional park in Fayetteville.

According to a press release from the WAC, renovations will include technical upgrades, a new and expanded main lobby that extends toward Dickson Street and opens up to the balcony lobby.

Additional amenities include more restrooms, concessions, a centralized concierge-style station and increased accessibility. 

Additional space will be added backstage and in Starr Theater increasing the capacity to 250 and allowing the black box theater to function as a programming and event space instead of a storage facility. These enhancements will modernize the facility and create a destination for more arts, special events, community gatherings and educational programming.

EARLY PLANS
In April 2004, Fayetteville created a Downtown Master Plan, which included:

• Conversion of one-way streets back to two-way streets; 
• Enhancements to the downtown square;
• Downtown College Avenue improvements; 
• Adoption of Master Street Plan cross-sections for downtown;
• Creation and adoption of four new downtown zoning districts;
• Creation and adoption of downtown architectural standards;  
• Adoption of an outdoor street vendor ordinance;
• Repair and replacement of sidewalks;
• Creation of the Dickson Street entertainment district, and
• Block Avenue improvements.

Marr said more recent advancements such as the Chancellor Hotel opening in downtown and the expansion of the Walton Arts Center facility are positive developments for the downtown area. There are also more residential and mixed-use construction projects in the downtown area, including the Sterling Frisco apartments, which plan to open a new building in January 2014.

Marr said the city is also looking into the Main Street program similar to what is in Rogers and the city continues with the Fayetteville Forward program.

Mayor Lioneld Jordan initiated Fayetteville Forward in April 2009 and established the Fayetteville Forward Economic Accountability Council (FFEAC). This program includes volunteers, neighborhoods, communication and engagement initiatives, and the volunteer-led Fayetteville Forward Action Groups.