Wal-Mart continues to expand its a la carte financial services with a new partnership with AutoInsurance.com that aims to save consumers money on auto coverage. Wal-Mart is the first retailer to delve into this type of rate comparison service now approved in six states, including Arkansas, Oklahoma and Missouri, according to Daniel Eckert, senior vice president over services at Wal-Mart Stores.

“Our business is driven by a commitment to taking products and services that are complex and pricey and making them easy and affordable,” Eckert said in a media conference call on Tuesday (April 29). 

Eckert said in a media conference call on Tuesday (April 29) that Wal-Mart has heard from many consumers about the cost of auto insurance and for many families it’s a big expense with average families spending $1,530 per year to insure their vehicles. Another 14% of drivers are uninsured, primarily because they can’t afford it, Eckert said.

In Arkansas, the average cost to insure a vehicle for a year is $665.86, according to the National Association of Insurance Commissioners. Also, 16% of Arkansas drivers going without coverage, one of the highest uninsured percentages in the nation, according to the Insurance Research Council.

“Our customers too often have to settle for auto insurance policies that aren’t the best fit and cost more than they want to spend,” Eckert said. “With AutoInsurance.com, we’re helping our customers in Arkansas save money on one of their largest household expenses.”

New Jersey-based AutoInsurance.com, is a licensed property and casualty insurance agency created after Wal-Mart presented their idea for a cleaner, more transparent method for consumers to compare their auto coverage.

The new program provides consumers the option of comparison shopping for insurance rates with a simple online portal. The consumer provides their name, address, birthdate and contact information and has the option to give the system permission to access their policy and do the rate comparison against six insurance carriers. The consumer has the option to enter their vehicle data into the system if they do want to give retrieval access.

A frequent complaint consumers have about using these type of policy comparison services is that users are often inundated with phone calls from agents trying to sell them coverage.

Josh Kazam, founder of AutoInsurance.com, said during the media call that while nine in 10 consumers do comparison shopping online, just one in five uses online comparison sites for comparing the cost of the auto insurance.

“It can take a lot of time and they are usually designed to create leads for salesmen who then are persistent in trying to sell coverage,” Kazam said. 

Once a consumer gets the quotes they can either purchase the policy online immediately, speak with a licensed agent at 800-700-7500, or save the information for a possible purchase later.

“Customers will only be contacted in the future by AutoInsurance.com or the carrier of the policy they purchase,” Kazam said. 

Wal-Mart piloted the program in Pennsylvania and recently beta tested it in Northwest Arkansas. The early results are yielding savings for many families, according to Eckert.

For now consumers can log on to www.walmart.com/autoinsurance and get the comparison or call the toll free number. The program also accepts uninsured drivers and will quote three coverage options, good, better, and best scenario, Kazam said. Wal-Mart expects to soon make the service available nationwide.

While consumers do like to find savings in regular expenditures like insurance costs, professional insurance agents can usually offer discounted premiums when multiple lines of coverage are purchased. For instance, if State Farm, Nationwide or other carriers insure a home, they will discount the typical auto coverage rates. These full service agents argue that personal rates can be tweaked and customized with various discounts that may or may not be included when shown on rate comparison sites.

Analysts said this is just another example of Wal-Mart disrupting the marketplace, helping to bring price transparency to the forefront. There is also the possibility that Wal-Mart can glean consumer data from this venture since the sign-up goes through its website portal.

Data collection is one of the ways Wal-Mart can win with this program. Direct marketing for auto services and tire sales are the tip of the iceberg. The age component also gives the retailer insight to generational data. Analysts also said the new effort is another example of Wal-Mart positioning itself in another service area outside of retail.

Van Buren-based USA Truck continues to lose money, but the losses are trending lower and officials with the trucking company maintain that their turnaround plan is delivering better results.

The company recorded a loss of $1.589 million during the first quarter of 2014, an improvement over the $2.474 million during the first quarter of 2013. Total revenue was $145.489 million, up 10.1% compared to the first quarter of 2013.

The 15 cent loss for earnings per share was better than the consensus estimate of a 20-cent per share loss, according to the earnings report released early Wednesday (April 30).

Company officials said the company improved during a quarter in which several rounds of severe winter weather made operations difficult. USA Truck President and CEO John Simone said during the earnings call that the weather-related impact on operational income is estimated to be $2.5 million. The company also recorded an expense of $400,000 related to its defense of the failed hostile takeover attempt by Phoenix-based Knight Transportation.

"The unusual frequency and severity of winter storms disrupted our Trucking operations throughout January, February and the first week of March,” Simone said in the earnings statement. “The final three weeks of March, however, were characterized by unusually strong freight volumes, which outstripped both our and the industry's supply of trucks, creating widespread dislocations in the marketplace as pent-up shipping demand from the severe winter met a worsening shortage of drivers in the industry.”

The first quarter loss follows a 2013 that saw improvements, but continued losses. USA Truck posted a net loss of $9.11 million in 2013. While an improvement compared to the net loss of $17.671 million in 2012, it marks the fifth consecutive year of losses for the trucking company.

The company has lost more than $47.9 million in the past five years. The last time the company strung together meaningful numbers was in the middle of the previous decade when 2004, 2005 and 2006 delivered net income of $7.432 million, $15.568 million and $12.441 million, respectively.

"We are continuing to execute our turnaround plan, focusing on the same high-leverage activities that drove significant improvement in our results throughout 2013.  We are pleased with our progress in many areas,” Simone said in the statement. “One obstacle facing the entire industry is the shortage of drivers brought on by more restrictive federal hours-of-service rules, increasing opportunities in other industry verticals such as housing and energy, and long-term demographic trends in which more drivers are leaving our industry each year than are entering it.”

During the USA Truck earnings call, Simone said the turnaround plan is “largely back on track” in the second quarter, but it will take several months to recruit and retain enough drivers to return to a normal seated-truck count. He said the company increased staff support for recruiting, changed marketing efforts and may have to take an expense hit with higher driver pay.

“We are evaluating pay. Nothing is off limits at this point,” Simone said during the call.

Simone stressed during the call that a big part of the company’s turnaround will be continued growth of the Strategic Capacity Solutions (SCS) segment of the company. That segment provides logistics and freight brokerage services. The company reported that SCS revenue was 31.8% of the overall revenue in the quarter, and operating income quadrupled to $5.1 million.

Brad Delco, a transportation industry analyst with Little Rock-based Stephens Inc., estimated in a Feb. 25 investor note that USA Truck would post a $1.9 million loss in the quarter. Delco estimates the company will earn $1 million in the next quarter, and end the year with net income of $2.6 million, or earnings per share of around 25 cents.  (Stephens Inc., Delco’s employer, has a market position in Arkansas Best and USA Truck, and does investment and non-investment business with the companies.)

USA Truck does not offer guidance on future earnings.

The market did not like the earnings report. USA Truck shares (NASDAQ: USAK) closed Wednesday at $16.60, down $1.26 per share, or more than 7%. During the past 52 weeks the share price ranged from a $19.57 high to a $4.95 low.

Wal-Mart is wasting no time in deploying its latest grocery format — a stand alone pick-up center where shoppers can drive up and retrieve their online orders and never leave their car. It’s a new format concept for Walmart U.S. who continues to up the ante for convenience in the highly competitive grocery sector.

The retailer reviewed plans for the first concept depot with Bentonville city officials on Tuesday (April 29.) The proposed development goes to the city planning commission on May 6.

The concept was introduced by Bill Simon, CEO of Walmart U.S., on March 4 during a speech he gave at the Raymond James investors conference in Orlando. He said Wal-Mart has tested drive-through pick-up options for online orders in 11 stores in the Denver area with a 90% approval rating. But, Simon also said the success of the drive-through test prompted the retailer to consider stand-alone depots or modulars that are used as mini fulfillment centers for online grocery orders.

Simon described the concept modular as “Sonic-like,” but he gave no timeline for this launch. The City Wire  recently learned that Wal-Mart is ready to test this new concept just as soon as city officials in Bentonville approve the plans.

BENTONVILLE DEPOT
The Bentonville location slated for the new format is near the J. Street and South Walton Boulevard intersection, behind the Chambers Bank which is located on the southeast corner of the intersection across from Zaxby’s and Firehouse Subs. The 15,000 square-foot facility will house 10,000 fresh and dry grocery products – from cereal, chips and bread to fresh produce, meat and milk, according to Deisha Barnett, corporate spokeswoman for Wal-Mart Stores Inc. 

Barnett said the concept will allow consumers to shop online for their grocery items, schedule a pickup time at their convenience then drive up like they would at a Sonic drive-in, call to the associates who then bring their grocery order to car.

“We know at Wal-Mart our customers’ needs are changing. They want and need more shopping options and we have the means to give them low prices, wide assortments along with value and convenience in a seamless shopping experience,” Barnett said.

She said the new concept will offer local consumers a completely new shopping experience and it’s one of several tests the retailer is conducting from storage lockers in metro Washington D.C., Walmart to Go pick-up and home delivery in Denver and San Jose, Calif., and the new convenience store located up the road from this new grocery fulfillment concept facility. Simon has said the concept centers are designed to provide convenience and in no way are meant to replace traditional stock-up trips that its supercenters provide. Those trips are valued annually at $585 billion and remain about 60% of the total grocery spend.

LESSONS LEARNED
Barnett said Wal-Mart hopes to takes the lessons form innovative concepts it is testing to ensure customers get the services, prices and selections they want and expect.

“We don’t think consumers should have to pay more for convenience which is why we continue to innovate and look for new ways their shopping needs can be met,” she said.

Carol Spieckeman, CEO of NewMarketBuilders, said in the past every new concept or format that retailers launched was seen as a prototype that, if successful, would roll out in current form. In fact, retailers often announced staged rollout plans simultaneously with each launch.

“Wal-Mart exemplifies how much that model has changed and is leading the charge when it comes to diverse and disparate concept launches,” she said.

ENGLISH EXPERIENCE
She said Wal-Mart’s Asda division has more than 100 drive-through pick-up locations in the U.K., with plans for more. But it also launched its first temperature-controlled locker pick-up location in the U.K. a couple of weeks ago.

“Wal-Mart’s international presence and ability to test concepts in non-U.S. markets is a huge advantage, particularly given the wider adoption of online grocery shopping in markets like the U.K.,” Spieckerman added.

Barnett also said Asda has been delivering online grocery orders for sometime in the U.K., as well as using Kiosks to order items that can be picked up at its drive-through locations. 

Retail analysts agree that online grocery is more widely used in the U.K. than in the U.S. at this time.

“In the U.S., Wal-Mart is testing and deploying a dizzying array of convenience, pick-up and delivery options in various markets and I expect the proliferation of options to accelerate,” Spieckerman said. “For the short term, I see diversification, not consolidation, as Wal-Mart’s goal and its U.S.-based competitors will have to formulate a response. They certainly can’t afford to play wait-and-see. ... No retailer other than Amazon is matching Wal-Mart’s ‘multi-testing’ mojo these days and Wal-Mart will reap the benefits of working the kinks (and costs) out before many others even get started.”

CUSTOMER THOUGHTS
The City Wire asked a few consumers their opinion of the new online grocery shopping format proposed for Bentonville later this year. Several shoppers said they would welcome the concept.

Lana Flowers of Rogers said the service could appeal to elderly shoppers and others that don’t feel like getting out. However, she likes the store experience.

“As long as I am healthy enough to walk through a store, I’d rather pick up my own items and pick them out. Otherwise, I may not find new products or different flavors or iterations of favorite brands,” Flowers explained.

Spieckerman said click-and-collect concepts have gained more traction in non-U.S. markets, but U.S. retailers have been slow to follow. It’s unfortunate given the lower associated costs, but she said Wal-Mart is poised to take full advantage. She also sees a connection between Wal-Mart’s recent move to introduce Wild Oats-branded organic foods and its click-and-collect forays.

“Brands like Wild Oats will help Wal-Mart build a bridge to more affluent shoppers who might not otherwise have Wal-Mart top-of-mind for site-to-store grocery shopping,” she said. “Wal-Mart already carries an impressive selection of online-unique ethnic, organic, vegan and other specialty offerings.”

Spieckerman said as Wal-Mart hones its site-to-store and site-to-home model, these items will find their way into more shoppers’ homes, giving Wal-Mart the opportunity to build an omni-channel relationship with new customers before competitors move off the mark.

Christmas may come early to select signage and print companies with Fort Smith-based Arkansas Best Corp. announcing Wednesday (April 30) that as of May 1 the transportation holding company will rename and rebrand to ArcBest Corporation.

The company that began in 1923 as OK Transfer and operated a few truck routes around Fort Smith morphed into a corporate holding company in 1966 under the Arkansas Best Corporation moniker. ABF Freight was the largest subsidiary of the company. In late 1972, the company went public with an initial ticker symbol of ABZ on the New York Stock Exchange. The stock is now listed as ABFS and trades on the NASDAQ exchange.

But that symbol will also change on May 1 to ARCB.

The new name and “unified logo system” was crafted to enhance the company’s identity as a holistic provider of transportation and logistics solutions for a wide variety of customers,” noted the company statement issued Wednesday afternoon.

“This marks an exciting new era for our organization,” ArcBest President and Chief Executive Officer Judy McReynolds said in the statement. “The new name, logo system and advertising campaign we are unveiling allow us to more clearly communicate our total value proposition to our customers, our employees and our shareholders through one unified identity under the ArcBest umbrella.”

With one exception, names of the operating subsidiaries under ArcBest will remain the same. Those are ABF Freight, ABF Logistics, Cleveland-based Panther Premium Logistics and Cherryville, N.C.-based FleetNet America.

The exception is with Data-Tronics, the information technology division. The new name will be ArcBest Technologies.

ABF Logistics will now include the household goods moving services businesses now known as ABF Moving. ABF Moving includes the the U-Pack brand, and services providing corporate relocation and military moves.

The company is holding an event Thursday morning (May 1) at the Fort Smith Convention Center to roll out the new name and branding. Former NASA astronaut Dr. Scott Parazynski is the featured speaker. Parazynski, who flew on five shuttle missions and participated in seven spacewalks, is a popular corporate leadership speaker.
www.parazynski.com

David Humphrey, vice president of Investor Relations for ArcBest, said the name changes were studied for several months. When asked about the costs to implement such changes, he said there will be costs but they will not be “a material number.”

And was the name change partially motivated by any concern about a growing national and global company being linked to one state? Humphrey said that was “one of numerous considerations” but the overriding factor was to “unify the whole thing and get everybody working together” and present a unified array of services to existing and potential customers.

Humphrey also said Board Chairman Robert A. Young III “is fully supportive” of the change. Young is the son of Robert A. Young Jr., who acquired the company in 1951 and is credited with growing it into being one of the largest less-than-truckload carriers in the U.S.

ArcBest is scheduled to release first quarter earnings after the markets close on Thursday. The consensus estimate among the 15 analysts who cover the company is an 8 cent per share loss during the first quarter on total revenue of $551.35 million. The company posted a 52 cent per share loss during the first quarter of 2013.

Company shares (NASDAQ: ABFS) closed Wednesday at $39.2, up $1.42. During the past 52 weeks the share price has ranged from a $39.79 high to a $9.67 low.

Superior Industries International announces Donald J. Stebbins as its president and CEO effective May 5, succeeding Steven J. Borick, who retired March 31. He will also join Superior’s board of directors, filling a vacancy as Borick steps off the board.

“We are pleased to have attracted an executive of Don Stebbins’ caliber to lead Superior in its next stage of development,” said Margaret Dano, Superior’s chairman of the board.”

Stebbins, 56, is a veteran automotive industry executive, with more than 20 years of relevant experience, including serving as chairman and CEO of Visteon Corporation, a Michigan-based manufacturer of components for original equipment automotive manufacturers worldwide.

“Superior is one of the great iconic brands in the automotive sector. I proudly look forward to leading the company and its outstanding team, as it continues to demonstrate the highest degree of professionalism, product excellence and customer service, and as together, we embark on a new era pursuing opportunities for growth and value creation,” Stebbins said.

He previously served as president and CEO of the Americas and Europe/Asia/Africa and as senior vice president and chief financial officer for Detroit-based automotive supplier Lear Corporation.Earlier in his career, he held management positions with Bankers Trust Company, Citibank and First Chicago Corporation.

Stebbins serves on the boards of directors of ITT Corporation and WABCO Holdings Inc. He earned an master’s degree in business from the University of Michigan and a bachelor’s of degree in finance from Miami University.

Rodney Shepard, a former top officer with Arvest Bank operations in the Fort Smith area, is returning to be the new president and CEO of Arvest Bank of Fort Smith. He is now the head of Arvest Bank operations in Springfield, Mo., and will begin his new role on June 1.

Shepard spent 17 years working in the Fort Smith area banking business prior to his promotion in January 2011 to Springfield.

“We are looking forward to having Rodney back in the Fort Smith community,” Arvest Bank regional executive Cliff Gibbs said in a statement. “He played a vital role during his tenure in Fort Smith prior to leading the team in Springfield. Rodney understands the Arvest culture and will hit the ground running upon his return to the community that he loves and supports.”

Shepard has been busy in Springfield. He has led the growth of Arvest in what is a relatively new market for the bank. The growth included six new branch banks for a total of 13 in the market. Staff at the bank also doubled during his tenure, according to Arvest.

Arvest Bank operates more than 260 bank branches in Arkansas, Oklahoma, Missouri and Kansas through a network of 16 locally managed banks, each with its own board and management team. These banks operate in more than 120 communities.

FAMILY TIES, ECONOMIC FACTORS
Shepard told The City Wire that the decision to return to Fort Smith was tough because his family had grown to love the Springfield area. However, he and his wife Lisa have a majority of their families living in the Fort Smith area. The family ties were a big part of the decision, he said. Shepard and his wife have two children.

“We like this area up here. This is really a great place to live. We had settled, found a good church, really got involved in the community up here, but at the end of the day, when that opportunity opened up, the family piece was part of the decision for us to come back,” Shepard explained.

Shepard also acknowledged that part of his decision involved an economic comparison of the two regions. The Springfield metro area has a larger nonfarm labor force (202,4000 as of March 2014) than the Fort Smith area (116,600 as of March 2014). Also, the Springfield metro area jobless rate has been at or below 7% for more than two years, with several months during that period of monthly jobless rates below 6%. The March rate was 6.1%. Prior to March, the Fort Smith metro area had 62 consecutive months that the jobless rate was at or above 7%. The March rate fell to 6.9%.

“It did,” Shepard said when asked if the relative weakness of the Fort Smith area was a factor in the decision. “It is true that Springfield has a healthier economy. ... But as I visited with our (Fort Smith area bank) directors, I asked them about the economy ... and they feel positive about Fort Smith’s outlook.”

Shepard said his positive economic outlook is based on the Fort Smith region having good infrastructure – rail, roads, waterway, air – in place.

Also, Arvest has a larger customer base and operations in the Fort Smith area than it now does in the Springfield market. Shepard said that was a draw for him, too.

“But this (Springfield) is a great place to live ... and at some point I believe our company will have a larger operation here and will continue to grow here. This has been a wonderful experience here, and I hate to leave, but I think that everyone understands,” Shepard said.

BACKGROUND
Shepard earned an associate’s degree from Carl Albert State College, a bachelor’s degree from Northeastern State University and a master’s degree from Webster University. He also is a graduate of the Mid South School of Banking and completed the ABA Commercial Lending School, and Graduate School of Banking program at Louisiana State University. Carl Albert State College also honored him with its Distinguished Alumni Award.

During his time in Springfield, Shepard served on the board of directors for the Missouri Bankers Association, United Way of the Ozarks, and the Public Utilities for the City of Springfield. He is a graduate of the Leadership Springfield program and a member of the Springfield Southeast Rotary Club.

Shepard was active in the Fort Smith area during his previous time there. Groups with which he worked with include the Single Parent Scholarship Fund, advisory council for Young Emerging Leaders of the Fort Smith Chamber of Commerce, a council member for the 188th Fighter Wing in Fort Smith, River Front Blues Society, Fort Smith Area United Way, and the Old Fort River Festival. He also is a graduate of Leadership Fort Smith.

Home sales in Arkansas four largest metro areas during the first quarter of 2014 are up almost 3% compared to the same period of 2013, but the average per home sales price is down more than 3% and the total value of homes sold in those markets is also down for the quarter.

The Fort Smith region was the only one of Arkansas’ four largest metro areas to post a gain in home sales and total sales amount during March.

According to The City Wire’s Arkansas Home Sales Report, there were 4,229 homes sold in the four markets for the first three months of 2014, up 2.97% compared to the 2013 quarter, and up 12.18% compared to the same quarter in 2012.

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. The report is sponsored by Fort Smith-based Weather Barr.

Average home prices in the four markets for the quarter was $153,959, down from the $159,286 during the same quarter in 2013, and just above the $153,425. The value of the homes sold in the four markets during the quarter totaled $651.091 million, down 0.47% compared to the same quarter in 2013, but up 12.57% compared to the 2012 quarter.

MARCH NUMBERS
March home sales totaled 1,625, down 3.62% in the four markets. The average price per home in the four markets was $158,996, down 2.64% compared to March 2013, but up 3.36% compared to March 2012.

There were 735 homes sold in central Arkansas, down 5.04% compared to March 2013, and up 9.7% compared to March 2012.

March home sales totaled 576 in Northwest Arkansas, down 6.8% compared to March 2013, and up 5.49% compared to March 2012.

Jonesboro area home sales totaled 153, down 0.65% compared to March 2013 and down 12.07% compared to March 2012.

In the Fort Smith area, home sales totaled 161, up an impressive 15% compared to March 2013, and up 12.59% compared to March 2012.

The value of the sales during March were down 6.23% in central Arkansas, down 5.3% in Northwest Arkansas, down 23.13% in the Jonesboro area, and up 9.02% in the Fort Smith region.

THE REGIONAL PICTURE: 2014
Central Arkansas — Home sales
Jan.-March 2014: 1,975
Jan.-March 2013: 1,926
Jan.-March 2012: 1,769

Fort Smith area — Home sales
Jan.-March 2014: 388
Jan.-March 2013: 333
Jan.-March 2012: 346

Jonesboro area — Home sales
Jan.-March 2014: 443
Jan.-March 2013: 390
Jan.-March 2012: 392

Northwest Arkansas — Home sales
Jan.-March 2014: 1,423
Jan.-March 2013: 1,458
Jan.-March 2012: 1,263

The top five counties in terms of Jan.-March 2014 home sales:
Benton — 896, down compared to 912 in 2013
Pulaski — 888, up compared to 869 in 2013
Washington — 527, down compared to 546 in 2013
Craighead — 346, up compared to 305 in 2013
Saline — 337, up compared to 305 in 2013

Link here for a PDF document of the March 2014 data.

‘LIFE IS GOOD’
Jennifer Zunino, a Realtor with Coldwell Banker Rector Phillips Morse in Maumelle, said she has noticed stricter credit requirements are preventing many first-time home buyers from entering the market. The increase in sales in her area is largely from repeat buyers.

“Second-time buyers are happening right now. ... We're not seeing many first-time buyers,” she said, adding that lower priced homes in Pulaski County aren't moving as fast as those priced in the $200,000 to $300,000 range. “People are upgrading.”

She said prices have stabilized for many to the point that those home owners who owed more money on their homes than they were worth a few years ago are discovering they have equity in their houses. Home owners with equity, then, are more likely to sell their houses and “upgrade” than those who do not.

Sheryln Blackwell of Fred Dacus Associates in Jonesboro (JonesboroRealEstate.com) said her market has clearly recovered from the downturn of a few years ago.

“Three closings today,” she said on Wednesday. “Life is good.”

She said the bulk of the buyers she works with are repeat customers who are “moving on up” by going to larger homes. However, she said her office has no shortage of first time buyers, adding there are more credit issues than there used to be and that is why developing good relationships with lenders so prospective buyers have options is essential in today's market.

“I'll find a way to get them financed,” Blackwell said.

‘DEMAND IS STILL GOOD’
The City Wire Economist Jeff Collins said there's a reason Realtors are optimistic about the current market.

“I think that what you see is a recovered and stabilized housing market,” he said, adding that the market is not undergoing a record-setting pace, but conditions have definitely improved.

“The volumes are solid,” he said. “Not spectacular, but solid. … Demand is still good.”

He noted that March numbers are down, but said that can be a function of many things including ice and snow as a result of an unusually cold winter in Arkansas. A good number of March closings are the result of contracts entered into during February and January – months that featured ice, snow and frigid temperatures.

Collins said average prices are trending downward, but that comes as no surprise. He said interest rates are going up but incomes have remained fairly unchanged. As upticks in interest rates lead to higher monthly payments, Collins said there's not much people can do but buy less expensive homes than they would have when rates were lower – that same monthly payment won't go as far now as it did even a few months ago.

Jim Long, an agent with Crye-Leike Real Estate in Bentonville, said he didn’t close any properties in March, but he did put two listings under contract and he had several closings in the prior two months.

“There is ample buyer demand. When the sun comes out consumers are eager to look and purchase. But these off-and-on winter storms have kept things a little off balance lately.” Long said. “On the whole, I’m off to a better start than last year.”

Agents agree the metrics in the local market are good for buyer and sellers right now. Interest rates are quite low around 4.19% APR.

INVESTMENT PUSH
Long said home prices are continuing to rebound, though not as fast as many sellers would like. He just put a home under contract in West Fayetteville for a couple that had looked at more than 20 properties. The one they bought was on the market just two days and it sold for almost full asking pricing, Long added.

According to Principal Broker/Owner Pat Satterfield of Pat Satterfield Real Estate in Alma, one of the biggest drivers for the Fort Smith area market is the rural development loans that were renewed as part of a recently-passed farm bill. She also said the real estate market is being helped by investors looking for a better return on their money.

"They can't get anything on their invested money," she said. "So a lot of people are investing in real estate. I'm seeing that more than anything. They'll have that money in a C.D. and spend it on real estate where they get more on their money.”

The first quarter financials for ArcBest Corporation (formerly known as Arkansas Best Corp.) were not as good as analysts expected thanks to a pension settlement charge and the estimated negative impact of severe winter weather during the quarter.

The transportation holding company reported a loss of $5.2 million during the quarter, or a per share loss of 20 cents, more than double the 8 cent per share that was the consensus estimate of the 15 analysts who watch the company. However, without a $2.9 million pension settlement charge, the loss would have been 11 cents per share.

Also, the loss was better than the $13.395 million loss the company recorded in the first quarter of 2013.

Total revenue during the quarter was $577.904 million, 10.98% better than the first quarter of 2013 and well ahead of the consensus estimate of $551.35 million.

Winter weather during the quarter shaved $10.5 million off the operating income tally, according to a company estimate. Factoring our weather and the settlement charge, the company would have been in the black during the quarter.

“The estimated operating income impact of first quarter severe weather at ABF Freight was approximately $10.5 million. ABF Freight’s pre-tax first quarter pension settlement charges equaled $2.9 million. Thus, ABF Freight’s $12.2 million reported first quarter 2014 operating loss was adversely affected by the $13.4 million total of these two items. Excluding these items, ABF Freight would have generated an operating profit in this year’s first quarter compared to a $22.5 million operating loss in the first quarter of 2013,” the company explained in the earnings report issued Thursday (May 1) after the markets closed.

Despite the weather, tonnage was up 5.4% during the quarter and the number of shipments were up 3.4%. Company officials have said the tonnage could have been up 7% during the quarter if not for the snow and ice storms in many parts of their network.

ArcBest President and CEO Judy McReynolds said all segments of the company performed well during the quarter even with the bad weather, which she said will result in more future business.

“This was a challenging quarter for our industry as severe weather across the nation disrupted operations,” McReynolds said in the statement. “Excluding that impact, our companies performed well, with ABF Freight overcoming the previous year’s loss, Panther posting strong operating profit and FleetNet experiencing record business levels on many days. Our improved success in offering customers holistic solutions and one-stop shopping for a variety of logistics challenges is helping distinguish us in the marketplace. This provides additional opportunities to enhance the relationships we have with existing customers.”

The non-asset based businesses in the ArcBest portfolio generated $4.459 million in operating income during the quarter, a big improvement over the $134,000 during the first quarter of 2013.

The tough first quarter follows a positive financial performance in 2013. Net income during 2013 for ArcBest was $15.8 million, much better than the $7.7 million loss in 2012 and the most the company has earned in a year since 2008. The per share earnings of 59 cents also blew past the consensus estimate of 47 cents per share.

SEGMENT NUMBERS Q1 2014
ABFFreight
Operating income
2014 (January-March): –$12.184 million
2013 (January-March): –$22.549 million

Premium Logistics (Panther)
Operating income
2014 (January-March): $3.364 million
2013 (January-March): –$864,000

Domestic/Global transportation management (ABF Logistics)
Operating income
2014 (January-March): $535,000
2013 (January-March): $518,000

Emergency/preventative maintenance (FleetNet)
Operating income
2014 (January-March): $1.401 million
2013 (January-March): $711,000

Household goods moving (ABF Moving)
Operating income
2014 (January-March): –$841,000
2013 (January-March): – $231,000

Company shares (NASDAQ: ARCB) closed Thursday at $40.57, a gain over the opening price of $39.55, and a new 52-week high for the stock. Prior to Thursday, the share price has ranged from a $39.79 high to a $9.67 low during the past year.

The Jones Trust announced a $1 million pledge by the George Family awarded Thursday (May 5) in Springdale. The funds will go to the Jones Center Endowment Fund, a campaign goal of $30 million.

“The George family has been an important part of Springdale’s history and the Northwest Arkansas landscape for many years, and we are so pleased with this show of great support by the family.  The Jones Trust board and staff have worked very hard to expand our regional Quality of Life programs and services, and we are delighted to receive this important endorsement from the George family.  Their very generous gift to our Endowment Campaign considerably moves us towards our goal of financial sustainability,” said Ed Clifford, CEO of the Jones Trust.

Carl George, co-president of Georges Inc., presented the check on behalf of the George family.

“Springdale has been blessed by the vision of Harvey and Bernice Jones. Our family shares their vision, and is privileged to live and work in this community.  The Jones Center is dedicated to strengthening this community, and helping nurture the individuals and families that call NWA home,” George said.

The Jones Trust board has working for months to reach the full endowment campaign goal of $30 million and expects more special gift announcements in the coming months, said Kelly Kemp, chief advancement officer for the Jones Center.She said the expanded Jones Trust Board has approved a stringent spending policy limiting the organization to a 3% to 5% draw to ensure finances remain strong and healthy for many years to come.

Archie Shaffer III, a board member of the Jones Trust, thanked the George family for the contribution to the endowment.

“I know the George and Jones families were very close going back years and years in Springdale, and this is a wonderful tribute to that friendship. We are thrilled to have the George’s recognize the significance of The Jones Center’s contribution to the richness and quality of life in Springdale and Northwest Arkansas in this most meaningful way. Bernice Jones would be thrilled to see this happen today,” Shaffer said.

Wal-Mart and the Walmart Foundation are committing $250,000 in cash and in-kind donations to support disaster relief efforts following the severe weather events impacting the Midwest and Southeast portions of the United States this week.

“It saddens us to know that so many of the communities our associates and customers call home are impacted by these tornadoes and floods,” said Kathleen McLaughlin, president of the Walmart Foundation. “Our heartfelt thoughts go out to all those affected. Wal-Mart is committed to the communities we serve and we are working on several ways to support those in need.”

Wal-Mart and the Walmart Foundation are working with the Salvation Army and American Red Cross to assess the needs of those impacted and monitor further ways to help.

In addition to monetary contributions, the company and foundation donations include critical supplies like water, food and shelter supplies to organizations providing disaster relief in the affected areas.

Gains in the number of employed and a 3.7% decline in the number of unemployed helped push the Northwest Arkansas metro jobless rate down to 5.4% in March compared to 5.6% in February and 5.7% in March 2013.

Metro employment of 222,341 was up from the 220,952 in February, and a healthy gain over the 218,826 in March 2013, according to figures released by the U.S. Bureau of Labor Statistics.

March marked the eighth consecutive month that the NWA metro jobless rate has been below 6%. The metro area is the only one in Arkansas to post a rate below 6%.

The size of the Northwest Arkansas regional workforce during March was estimated at 234,966, up from the 233,960 during February, and above the 231,940 during March 2013. June 2013 was the first month the region’s workforce topped 240,000. The average annual monthly labor size was 234,412 in 2013, 234,792 during 2012, 229,950 during 2011 and 226,593 during 2010.

All of the eight metro areas in or connected to Arkansas had a jobless rate decline in March compared to February, and had jobless rate declines compared to March 2013. During March, the lowest metro jobless rate in the state was 5.4% in Northwest Arkansas and the highest rate was 9.4% in the Pine Bluff area.

NWA METRO NUMBERS
Following are other key figures from the BLS metro report.
Unemployed persons in the region totaled 12,625 during March, down from the 13,008 during February and below the 13,114 during March 2013.

The Northwest Arkansas manufacturing sector employed an estimated 26,300 in March, up from 26,200 in February, and down from the 26,600 during March 2013. Sector employment is down 21.7% from more than a decade ago when March 2004 manufacturing employment in the metro area stood at 33,600.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 48,200 in March, up from 47,700 during February, and up from the 47,600 during March 2013. The sector reached record employment of 50,500 in December 2006.

Employment in the region’s tourism industry was 21,500 during March, up from 20,900 in February and up from 20,500 during March 2013. Employment in the sector set a record of 22,000 in June 2013.

In Education & Health Services, employment was 24,700 during March, unchanged compared to February and up from 24,000 during March 2013.

In the Government sector, employment was 32,700 during March, up from 32,500 in February and up compared to 31,800 during March 2013.

NATIONAL NUMBERS
Unemployment rates were lower in February than a year earlier in 333 of the 372 metropolitan areas, higher in 30 areas, and unchanged in nine areas, noted the broad BLS report.

The U.S. unemployment rate in March was 6.7%, down from 7.5% from a year earlier. Arkansas’ jobless rate was 6.9% in March, down from 7.1% in February and down from 7.4% in March 2013.

Oklahoma’s jobless rate during March was 4.9%, down from 5% in February, and down compared to 5.2% in March 2013. The Missouri jobless rate during March was 6.7%, up from 6.4% in February and up from the 6.6% in March 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
March 2014: 5.4%
February 2014: 5.6%
March 2013: 5.7%

Fort Smith
March 2014: 6.9%
February 2014: 7.6%
March 2013: 8.1%

Hot Springs
March 2014: 7.1%
February 2014: 7.7%
March 2013: 7.8%

Jonesboro
March 2014: 6.6%
February 2014: 7.1%
March 2013: 7.1%

Little Rock-North Little Rock-Conway
March 2014: 6.3%
February 2014: 6.7%
March 2013: 6.8%

Memphis-West Memphis
March 2014: 8.2%
February 2014: 8.4%
March 2013: 9.4%

Pine Bluff
March 2014: 9.4%
February 2014: 10.1%
March 2013: 9.8%

Texarkana
March 2014: 6.5%
February 2014: 7.3%
March 2013: 7%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2013: 5.7%
2012: 5.6%
2011: 6.2%
2010: 6.4%
2009: 6.2%
2008: 4.1%
2007: 3.8%
2006: 3.6%
2005: 3.3%
2004: 3.8%
2003: 3.7%
2002: 3.3%
2001: 3%
2000: 2.9%

The good news is that the Fort Smith metro jobless rate during March was 6.9%, the first time in 62 consecutive months the rate has been below 7%. The not-so-good news is that the rate decline is not a product of sizeable gains in the workforce or the number of employed.

In fact, the reported metro labor force has shrunk more than 8% compared to the high point hit in June 2007.

A 6.9% metro jobless rate was better than the 7.4% in February and much better than the 8.1% in March 2013. A drop in the reported number of unemployed was the primary cause for the March jobless rate decline to 6.9%.

Fort Smith metro employment of 119,565 was slightly better than the 119,155 in February, and almost flat compared to the 119,346 in March 2013, according to figures released by the U.S. Bureau of Labor Statistics.

All of the eight metro areas in or connected to Arkansas had a jobless rate decline in March compared to February, and had jobless rate declines compared to March 2013. During March, the lowest metro jobless rate in the state was 5.4% in Northwest Arkansas and the highest rate was 9.4% in the Pine Bluff area.

FORT SMITH METRO NUMBERS
The size of the Fort Smith regional workforce during March was 128,463, down from 128,695 during February, and down from the 129,880 during March 2013. The labor force reached a revised high of 140,253 in June 2007.

Unemployed persons in the region totaled an estimated 8,898 during March, down from the 9,540 during February, and well below the 10,534 during March 2013.

The Fort Smith area manufacturing sector employed an estimated 18,200 in March, unchanged compared to February, and unchanged compared to March 2013. Sector employment is down almost 36% from a decade ago when March 2004 manufacturing employment in the metro area stood at 28,400. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005, 19,200 in 2012, and to 18,300 in 2013.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 24,100 in March, up from the 24,000 in February, and above the 23,600 during March 2013. Employment in the sector reached a high of 25,700 in December 2007.

Employment in the region’s tourism industry was 9,300 during March, up from 9,000 in February and above the 9,000 in March 2013. The sector reached an employment high of 9,800 in August 2008.

In Education & Health Services, employment was 16,500 during March, up from 16,400 in February and below the 17,000 during March 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in October 2012.

In the Government sector, employment was 19,600 during March, up from 19,400 in February and up from 19,400 in March 2013.

NATIONAL NUMBERS
Unemployment rates were lower in February than a year earlier in 333 of the 372 metropolitan areas, higher in 30 areas, and unchanged in nine areas, noted the broad BLS report.

The U.S. unemployment rate in March was 6.7%, down from 7.5% from a year earlier. Arkansas’ jobless rate was 6.9% in March, down from 7.1% in February and down from 7.4% in March 2013.

Oklahoma’s jobless rate during March was 4.9%, down from 5% in February, and down compared to 5.2% in March 2013. The Missouri jobless rate during March was 6.7%, up from 6.4% in February and up from the 6.6% in March 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
March 2014: 5.4%
February 2014: 5.6%
March 2013: 5.7%

Fort Smith
March 2014: 6.9%
February 2014: 7.6%
March 2013: 8.1%

Hot Springs
March 2014: 7.1%
February 2014: 7.7%
March 2013: 7.8%

Jonesboro
March 2014: 6.6%
February 2014: 7.1%
March 2013: 7.1%

Little Rock-North Little Rock-Conway
March 2014: 6.3%
February 2014: 6.7%
March 2013: 6.8%

Memphis-West Memphis
March 2014: 8.2%
February 2014: 8.4%
March 2013: 9.4%

Pine Bluff
March 2014: 9.4%
February 2014: 10.1%
March 2013: 9.8%

Texarkana
March 2014: 6.5%
February 2014: 7.3%
March 2013: 7%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2013: 8%
2012: 7.7%
2011: 8.3%
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

The stars have been aligned for Tyson Foods this past year and the meat giant is expected to produce another record quarter when it reports earnings on Monday (May 5) with estimated net income of $223 million. This would be a nice rebound from the $935million reported in the year-ago period.

Wall Street analysts expect 63 cents per share for the three months ending March 31. If they hit that estimate it would be a 75% gain in net earnings, which would likely come on the strength of higher chicken prices and reduced grain costs.

Tyson Foods competitor Pilgrim’s Pride reported an 80% turnaround in its profits on Thursday (May 1), a good sign for Tyson investors as the two companies run similar chicken operations, analysts said.

Tyson Foods CEO Donnie Smith recently said more consumers are moving to chicken because of its value compared to escalating beef prices. That has spurred chicken production across the industry and total pounds processed are expected to be 3% more this year. But that uptick in production doesn’t bother Smith.

“When you look at the halo effect, you’ve got very high beef prices, record high pork prices and chicken is very cheap, relatively speaking. ... It doesn’t worry us at all to have an increase in supply of let’s call it 3% or so because the demand is going to be there to absorb that,” Smith said during a recent investor conference in New York.

Smith also said consumers can expect higher meat prices across the board this year, and food service customers are on shorter contracts to mitigate the risk of prices fluctuations related to grain and other input costs.

Tyson is expected to report $8.85 billion in sales revenue for the quarter, a 5.10% gain from the same period last year, according to Wall Street consensus. Analysts expect Tyson to report solid gains in its chicken segment, with losses in its red meat business. 

Steve Kay, publisher of Cattle Buyers Weekly, said beef packers had a tough quarter. He said packers are experiencing their toughest operating climate in several years. He said packer margins were negative for the entire quarter ending March 31 and they stayed in the red in April as well. 

“Live cattle prices are going to have to go lower before packers can resume profitable margins,” Kay said. “Packers and retailers are hoping consumers will step up to the plate and buy beef as the summer grilling season will kick off this weekend. I can tell you that retailers will likely feature less beef this year and consumers may not want to pay $9 to $10 per pound for a choice steak. Packers may not be able to pass along the higher live cattle costs they are experiencing.”

Kay expects beef processing margins to be below the normalized range this year and next year as the cattle supply continues to tighten. 

He said the run up in pork prices related to the PED virus has been irrational. On the consumer side, pork prices are already up 8% this year and they are expected to jump another 10% to 12% in the back half of this year, according to the National Pork Council.

Kay said it is unclear if the virus impact has peaked and he expects more pork to hit the market and prices to remain high. Smith said Tyson will try to pass along those higher costs to consumers and its food service customers.

STOCK DOWNGRADE
Investors of Tyson Foods have experienced an exceptional rise in value over the past year as share prices are up 73% from 2013.

The hefty rise prompted a rating downgrade by BMO Capital this week, from a “buy” to a “hold” position. BMO has a $43 price target for Tyson stock, and with the shares closing Thursday (May 1) at $42.41, BMO said its downgrade is a “mission accomplished” note, and not “Houston, we have a problem.”

Tyson is priced at 18 times earnings, but projected to grow at only 7% over the next five years. Tyson shares look more than fully valued, according to Motley Fool analyst.

Tyson shares (NYSE: TSN) closed Thursday (May 1) at $42.41, up 44 cents. During the past 52 weeks the share price ranged from a $44.24 high to a $23.39 low.

Wal-Mart is a logistics leader that revolutionized the supply chain years ago with its distribution center system. But now that the retail giant is experimenting with small convenience formats and tethering to its supercenters for replenishment, there may be more business opportunities for third party suppliers, according to Kantar Retail.

Dan Sanker, CEO of Santa Monica, Calif.-based CaseStack, said the new formats and tethering opportunities have caught his interest given that his firm already handles consolidation logistics for Wal-Mart, suppliers and other retailers.

Walmart U.S. CEO Bill Simon said in March that the retailer is testing tethering smaller formats to its nearby supercenters in addition to using them for online fulfillment. The retailer is tethering its Walmart to Go in Bentonville – its new convenience store concept – to the supercenter down the street. The Express store in Gentry is tethered to a supercenter in nearby Siloam Springs and the Walmart on Campus at the University of Arkansas is tethered to a supercenter in Fayetteville.

According to Wal-Mart execs, the concept of tethering fits within Wal-Mart’s sustainability plans, which leads analysts to think the concept will be expanded.

Sanker can envision roughly 10,000 square feet of space in a supercenter that is carved out for storing added inventory — a mini warehouse of sorts. He said small trucks could run routes from the supercenter to the small format and for home delivery for online or bulky items.

Tethering several smaller stores to a supercenter will mean the retailer has to figure out ways to store the extra product and then make sure the items get to their final destination, because they won’t be loaded on full semi-trucks coming from the distribution center.

Wal-Mart store associates already have a full slate just handing the normal inventory for their supercenters and tethering will add additional work that could be outsourced to third party logistics firms.

Sanker said tethering gives Wal-Mart an opportunity to share its labor costs. He said his firm already has a software program that helps track products up and down the supply chain, which will be important for suppliers given more possible destinations for their items. He said that software also allows for consolidating orders and pallet customization, which will be important at the store level for orders bound for smaller formats. 

Analysts at Kantar said Wal-Mart is leveraging its physical size to its advantage with this tethering plan. But ultimately the retailer also has to figure out how to best operate in an omni-channel environment, which means managing the different requirements of online fulfillment, at home delivery and free pickup at a nearby location.

Wal-Mart has not provided details about how it will accomplish the tethering plan with entire ecosystems which are being rolled out this year. The retailer answered one question on Wednesday (April 30) when it confirmed a mini-fulfillment center to be built in Bentonville this year for online grocery orders. This concept is grocery only and does not include home delivery, but offers scheduled pick-up times with drive-in service.

Sanker said there is no magic bullet solution for handling the logistics around omni-channel retail, but if Wal-Mart figures out how to use it massive physical scale to its advantage, other retailers will follow.

Arvest Bank ranks highest both in the South Central Region and in the Southwest Region in the J.D. Power 2014 Retail Banking Satisfaction Study. This is the sixth year Arvest has been recognized with a J.D. Power award and the 10th overall regional award during this time.

Previously, Arvest has been ranked highest in satisfaction with retail banking in the Southwest (2010, 2011, 2012, 2013, 2014), Southeast (2009) and South Central (2010, 2012, 2013, 2014) regions. The 2014 study was conducted with more than 80,000 banking consumers throughout 11 regions across the United States.

“Receiving this award consecutively over the past several years speaks volumes about the level of customer service our Arvest associates provide every day,” Mike Jacimore, aales manager of Arvest Bank, Fort Smith Region, said in a statement. “It is a great honor that our valued customers have told us once again why they trust us with their financial needs.”

In the South Central Region, Arvest received the highest score in four factors analyzed by the study—product offerings, facility, account information, and channel activities. The South Central Region is comprised of five states: Alabama, Arkansas, Louisiana, Mississippi and Tennessee. In the Southwest Region, Arvest received the highest score in five factors—fees, product offerings, facility, account information, and channel activities. The Southwest Region is comprised of six states: Arizona, Colorado, New Mexico, Nevada, Oklahoma and Utah.

Arvest Bank operates more than 260 bank branches in Arkansas, Oklahoma, Missouri and Kansas through a network of 16 locally managed banks, each with its own board and management team. These banks operate in more than 120 communities.

Five years ago, Tyson Foods and Wal-Mart helped organize the first official Arkansas Honor Flight, taking World War II veterans on a one-day trip to Washington, D.C., to visit memorials, including one built and dedicated in their honor. 
 
Saturday, May 3, will be the 11th and final Arkansas Honor Flight. Including this trip, more than 900 World War II veterans have taken part in the Arkansas program since it started in 2009. Due to the advancing age and diminishing number of World War II veterans, the flights from Arkansas will no longer be offered, the companies said.
 
More than 80 veterans will fly via charter jet from Northwest Arkansas to Washington D.C. and back free of charge. The group will include veterans as old as 98 years who will tour the memorials during the day.
 
“It’s been an honor and a privilege to help organize these trips,” said Bill McKenzie, director of aviation for Tyson Foods and a Vietnam War veteran, who has coordinated all 10 previous flights. “They call our World War II veterans the ‘greatest generation.’ There’s no greater satisfaction than getting to know these veterans, hearing their stories and seeing their faces when they see the memorials. It has given me an even greater appreciation for their service to our country. I’m also thankful for the positive feedback we’ve received from their families.”

Flight organizers encourage the public to be at the Northwest Arkansas Regional Airport terminal at approximately 7:45 p.m., Saturday evening, to be part of a special return reception for the veterans. The reception will include a color guard and patriotic music by the Rogers Heritage High School band.

“We are honored to once again support the Arkansas Honor Flight this year,” said retired Brigadier General Gary Profit, Walmart’s senior director of military programs. “These veterans bravely served our country, and they should know their service is still very much appreciated and recognized. It’s a privilege to be able to help bring them to our nation’s capital.”   

A group of “guardians,” who include family members and volunteers, will fly with the World War II veterans to provide assistance during the trip. Organizational support for the flights has also been provided by Tyson Foods’ Veterans Business Resource Group, which includes military veterans employed by the company

“Attending the return reception Saturday night is a great way to show your support and thanks to these veterans who served our country so well,” said McKenzie.

Details on the lack of financial literacy in Arkansas, positive recovery for U.S. Sen. John Boozman, death penalty difficulties and a ‘click-and-collect’ Wal-Mart site in Bentonville are part of the Northwest Arkansas Friday Wire for May 2.

NOTES & ANALYSIS
• Miserable money managers
It’s a good thing Arkansas has a Constitutional requirement to balance the state budget, because our collective understanding of finances is so small that only the Large Hadron Collider could measure it.

A recent study by WalletHub found that Arkansas ranks 50 out of the 51 places studied (50 states and the District of Columbia) in the United States. The study that looked at education efforts in financial literacy, high school dropout rates, percentages of people with college degrees, the unbanked and those who borrow from non-bank lenders.

The City Wire talked to several folks around the state to see if they might refute the horrible WalletHub finding. No such luck. Dr. William Bailey, a professor at the University of Arkansas, was not surprised to see the state rank just a step above the bottom. Dr. Ed Bashaw, dean of the College of Business at Arkansas Tech University, also was nonplussed by the study. He said it’s a generational problem. Poor folks often don’t have the time, intelligence or desire to discuss their poor financial situation with their children.

Keith Weigelt, a professor at the prestigious Wharton School at the University of Pennsylvania, said high schools around the country need to do a better job of teaching financial management. But he doesn’t see that happening.

“This is a life skill. These high schools, these schools are failing to understand this is a life skill. The sooner you can know about finances, investing and so forth the better off you will be, but with all this emphasis on standardized testing, they just don’t have time for it. Financial literacy should definitely be included in public school curricula,” Weigelt said in the WalletHub report.

It’s a sad possibility that Weigelt is correct. We’ll have the most tested students in the world, but just don’t ask them how a mortgage works or what they are really paying for that rent-to-own big screen television.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Wal-Mart sustainability push
Partnering for a greener world was the theme of Wal-Mart’s Sustainability Expo event held Tuesday (April 29) in Rogers. The retail giant assembled a cast of global suppliers, environmental advocates, supply chain experts, farmers and ranchers for the three-day event.

• Positive recovery
Less than a week after an emergency surgery to fix an aortic dissection, U.S. Sen. John Boozman, R-Ark., has returned home and has instructed his staff to work to help with tornado damage recovery in central Arkansas.

• Tornado recovery help
Two Northwest Arkansas corporate giants are among the first to mobilize their troops to help when a natural disaster damages a community. That’s exactly what happened within hours of the Sunday night (April 27) tornado damage in central Arkansas and other parts of the country.

NUMBERS ON THE WIRE
$35.795 million: Total value of building permits issued in March by Bentonville, Fayetteville, Rogers and Springdale. The total was up 22.7% compared to March 2013.

10,000: Estimated number of items – fresh and dry grocery goods – to be available in the grocery pick up depot Wal-Mart plans to build in Bentonville. The retail giant has tested the pick up center in 11 stores in the Denver area.

16%: Percentage of Arkansas drivers without auto insurance coverage, one of the highest uninsured percentages in the nation, according to the Insurance Research Council.

OUTSIDE THE WIRE
• This is what Amazon's Smartphone will look like
The phone will make use of a data plan called "Prime Data," and while the details on it are far from totally known, it's expected to piggyback on AT&T's "Sponsored Data" program. Sponsored Data allows companies to subsidize your data use, paying for the data you consume inside certain apps and services — the data used inside of certain apps effectively doesn't count against your data plan. This might mean that Amazon could offer unlimited data for music and video streaming, but this is still speculative.

• A new rule on home care workers’ wages
A new rule from the Obama administration designed to provide better pay and working conditions to 2 million home care workers is forcing many states to rethink how they look at Medicaid payments and may result in higher Medicaid costs.

WORD ON THE WIRE
“Poverty is generational and with a lack of education the cycle continues. And in terms of non-bank lending, sometimes it may be cheaper to borrow from a payday lender than bounce several checks. But, once they borrow like that it’s easy to become enslaved.”
– Dr. Ed Bashaw, dean of the College of Business at Arkansas Tech University, in explaining how Arkansas ranks so poorly in terms of financial literacy

“I think the litigation challenges that we’re facing now on lethal injection would be exponentially increased if we attempted an electric chair [execution]. Take the policy out of it – whether it’s a good idea or a bad idea or whether it’s barbaric or whatever – I don’t think you could ever get to the legal point where a federal court would let us use the electric chair.”
– Arkansas Attorney General Dustin McDaniel, about problems with Arkansas’ death penalty rules

Details on the lack of financial literacy in Arkansas, positive recovery for U.S. Sen. John Boozman, death penalty difficulties and a new name for the transportation artists formerly known as Arkansas Best Corporation are part of the May 2 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Miserable money managers
It’s a good thing Arkansas has a Constitutional requirement to balance the state budget, because our collective understanding of finances is so small that only the Large Hadron Collider could measure it.

A recent study by WalletHub found that Arkansas ranks 50 out of the 51 places studied (50 states and the District of Columbia) in the United States. The study that looked at education efforts in financial literacy, high school dropout rates, percentages of people with college degrees, the unbanked and those who borrow from non-bank lenders.

The City Wire talked to several folks around the state to see if they might refute the horrible WalletHub finding. No such luck. Dr. William Bailey, a professor at the University of Arkansas, was not surprised to see the state rank just a step above the bottom. Dr. Ed Bashaw, dean of the College of Business at Arkansas Tech University, also was nonplussed by the study. He said it’s a generational problem. Poor folks often don’t have the time, intelligence or desire to discuss their poor financial situation with their children.

Keith Weigelt, a professor at the prestigious Wharton School at the University of Pennsylvania, said high schools around the country need to do a better job of teaching financial management. But he doesn’t see that happening.

“This is a life skill. These high schools, these schools are failing to understand this is a life skill. The sooner you can know about finances, investing and so forth the better off you will be, but with all this emphasis on standardized testing, they just don’t have time for it. Financial literacy should definitely be included in public school curricula,” Weigelt said in the WalletHub report.

It’s a sad possibility that Weigelt is correct. We’ll have the most tested students in the world, but just don’t ask them how a mortgage works or what they are really paying for that rent-to-own big screen television.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Corporate name change
Christmas may come early to select signage and print companies with Fort Smith-based Arkansas Best Corp. announcing Wednesday (April 30) that as of May 1 the transportation holding company will rename and rebrand to ArcBest Corporation.

• USA Truck posts quarterly loss
Van Buren-based USA Truck continues to lose money, but the losses are trending lower and officials with the trucking company maintain that their turnaround plan is delivering better results.

• Positive recovery
Less than a week after an emergency surgery to fix an aortic dissection, U.S. Sen. John Boozman, R-Ark., has returned home and has instructed his staff to work to help with tornado damage recovery in central Arkansas.

NUMBERS ON THE WIRE
$5: That is the rate per credit hour that students at the University of Arkansas at Fort Smith will pay to fund a new fitness center on the school's campus. The current facility is too small and hosts general recreation, academic and athletic programs.

$8.50: The hourly minimum pay rate organizers are trying to get approved by Arkansas voters in the November election. Stephen Copley, one of the organizers of the Give Arkansas a Raise Coalition, said there rate would be easier to get passed than President Barack Obama's proposed $10.10 per hour.

16%: Percentage of Arkansas drivers without auto insurance coverage, one of the highest uninsured percentages in the nation, according to the Insurance Research Council.

OUTSIDE THE WIRE
• This is what Amazon's smartphone will look like
The phone will make use of a data plan called "Prime Data," and while the details on it are far from totally known, it's expected to piggyback on AT&T's "Sponsored Data" program. Sponsored Data allows companies to subsidize your data use, paying for the data you consume inside certain apps and services — the data used inside of certain apps effectively doesn't count against your data plan. This might mean that Amazon could offer unlimited data for music and video streaming, but this is still speculative.

• A new rule on home care workers’ wages
A new rule from the Obama administration designed to provide better pay and working conditions to 2 million home care workers is forcing many states to rethink how they look at Medicaid payments and may result in higher Medicaid costs.

WORD ON THE WIRE
“Poverty is generational and with a lack of education the cycle continues. And in terms of non-bank lending, sometimes it may be cheaper to borrow from a payday lender than bounce several checks. But, once they borrow like that it’s easy to become enslaved.”
– Dr. Ed Bashaw, dean of the College of Business at Arkansas Tech University, in explaining how Arkansas ranks so poorly in terms of financial literacy

“I think the litigation challenges that we’re facing now on lethal injection would be exponentially increased if we attempted an electric chair [execution]. Take the policy out of it – whether it’s a good idea or a bad idea or whether it’s barbaric or whatever – I don’t think you could ever get to the legal point where a federal court would let us use the electric chair.”
– Arkansas Attorney General Dustin McDaniel, about problems with Arkansas’ death penalty rules

"You know, mixed reactions. Business never likes taxes, but yet we've had a lot of businesses saying they've been hurt by crime. I've had several say (it is) more than hot checks, but air conditioners units ripped off their building and things like that and knowing that those individuals ether weren't prosecuted because it was a moot point or they were and were never incarcerated."
– Van Buren Chamber of Commerce Executive Director Jackie Krutsch, explaining the business reaction to a proposed increase in sales taxes that would fund and operate a new Crawford County jail

A union vote at an OK Foods processing facility in Heavener, Okla., failed by a narrow margin Thursday (May 1), with workers voting 26-29 on a question of whether to unionize the facility.

With the vote failing, officials with Fort Smith-based OK Foods hailed it as a victory.

"OK Foods, Inc. is thrilled to announce that the maintenance and refrigeration employees at our Heavener, Oklahoma processing facility have decided against the need to be represented by the United Food and Commercial Workers Union in a National Labor Relations Board (NLRB) conducted election," the company said in a press release "The company is pleased by the outcome of the vote, and does not believe its employees need to pay a union a lot of money nor risk the possibility of strikes or other union complications to have a good job at OK Foods."

But Anthony Elmo of the United Food and Commercial Workers Union Local 1000 said the vote was not conducted according to the National Labor Relations Act, accusing OK Foods leadership of tampering with the election, which was conducted by the National Labor Relations Board.

"We feel like they subverted the vote as much as possible," he said, adding that the union is "preparing charges and objections to the election."

Elmo made as of yet unsubstantiated claims that OK Foods CEO Trent Goins had threatened workers with firing if they were to ever go on strike and had also threatened to lock employees out of the building if a strike were to ever occur.

He also said the company did "little silly things" that were meant to coerce employees into thinking they did not need union representation. Among the claims made by Elmo were actions as simple as painting the break room.

Elmo also claimed that Goins had met with employees one by one up to an hour before the vote Thursday in an attempt to sway their votes, though the claim and others have not been substantiated and a call to OK Foods for comment on this story had not been returned as of publication.

"The company is not allowed to do that within 24 hours of the vote," Elmo said.

In a prepared statement, Goins said he believed no one at the facility would regret the failed vote for a union.

“I am looking forward to continue working with our employees to make OK Foods the best possible place for everyone; I also encourage all employees to come together and work as a team. We sincerely believe no employee will ever regret the decision to defeat the union and wish to thank every team member for their support.”

Elmo said the union's objection to the vote would be filed either Friday (May 2) at close of business or Monday (May 5), adding that it was unknown when a decision on a possible re-vote could be handed down by the NLRB.

"The NLRB always takes a couple of weeks, at the least. But we're going to help employees speak with them directly, relay their testimony and tell the truth about what influenced their vote."

Arkansas revenue officials said April tax collections were in line with expectations leading to year-to-date figures slightly rising 10 months into the current fiscal year.

The April revenue report provided by the Arkansas Department of Finance and Administration showed net available general revenues totaling $570.2 million, down 11.3% from a year ago. Timing issues that inflated individual income tax collections a year ago declined in 2014 causing the big drop-off.

“Results in April, the largest collection month of the year, reflect adequate forecast provision for the anticipated decline from Individual Income tax collections in the prior year,” said John Shelnutt, head of DFA’s Economic Analysis and Tax Research Division. “Income tax shift from taxpayer strategy in the prior year added to FY 2013 results as a one-time boost and presented a challenge to current fiscal year prediction. The outcome of this one-time shift is reflected in the latest April results as a $101.7 million decline in Individual Income tax revenue compared to year ago results. The 17.9 percent decline was mostly anticipated and further offset by lower-than-expected Individual Income tax refunds.”

Corporate Income tax collections were $20.7 million above forecast for the month. Sales and Use tax collections were above forecast by $2.3 million or 1.3% and also above year ago levels by 4.9%.

“Short-term factors in collections processing may have contributed some of the gain above forecast for the month,” Shelnutt said.

Year-to-date Net Available General Revenues cleared $4.16 billion, 0.5% above last year’s levels and $77.6 million or 1.9% above forecast.

Other YTD totals included:
• Individual income taxes – 1.4% below last year; 0.5% above forecast;
• Corporate income taxes – 9% above last year; 10.2% above forecast; and
• Sales and use taxes – 3.2% above last year; 0.8% below forecast.