The 2014 Business Expo, hosted by the Fort Smith Regional Chamber of Commerce, emphasized growing businesses in a global economy. "Shop Local. Sell Global." was the message chamber members heard from numerous speakers beginning at breakfast and continuing at several breakout sessions held throughout Friday (May 2) at the Fort Smith Convention Center.

According to Chamber President and CEO TIm Allen, the idea for this year's theme came from a conversation with First National Bank of Fort Smith CEO Sam Sicard.

"It started out with how do we get people to buy local (during the Christmas season)," Allen said, adding that he and Sicard were looking for a way to expand beyond encouraging area residents to shop locally.

"The next step when Sam and I were talking about it, I (said), 'Our shops are not going to survive in the non-holiday season. They have to survive in the rest of the year. They've got to sell globally.' And Sam was like, 'So what you're saying is we need to shop local, sell global.' And I said, ‘That's it.’"

Speaking to the chamber members in attendance Friday, Sicard said for commerce to strengthen in the Fort Smith region, it would require members of the business community to start thinking outside the box. He said it cannot all fall on the Chamber's leadership to recruit business, either.

"There are other ways to increase commerce that's in the control of every one of us in the community," he said. "And simply increasing commerce by increasing the dollars that are coming into this community and limiting dollars going out of this community. The way that we do that, simply, is by exporting goods and services outside this community and bringing more dollars and more jobs into this community."

And while local consumers can do that by shopping locally, business owners have to start thinking globally, according to both Sicard and Allen, who brought in Quinn Frazier, business director at UPS, who discussed the future of eCommerce.

Frazier discussed how as a child growing up in Utah, his world and that of his friends and family did not stretch further than the streets of his neighborhood and town. But as the world as grown to become so interconnected through technology, businesses like those in his hometown cannot be content to just reach locals.

He pointed to the emergence of once sleepy towns as international commercial powerhouses that have a hunger for material goods and businesses, including those in the Fort Smith region, should be prepared to serve a growing middle class in a country on the other side of the globe.

The perfect example of this, he said, was Shenzhen, China, which data shows has grown from 332,900 people in 1980 to 10.467 million in 2011. The change represents a 3,044.31% increase in population in only 31 years.

According to Frazier, the explosive growth in emerging markets are not necessarily a bad thing, but represent opportunities for business owners willing to look beyond the boundaries of their own cities, states or countries. The opportunities to serve the growing middle class in other parts of the world is there if American businesses would just seize the opportunity, though he said only 350,000 businesses in the U.S. export and of those, 59% export to only one other country.

Even though Frazier was pointing out how local businesses could expand their reach and increase revenues and profits by looking outside the United States, he told The City Wire that businesses looking to reach locals must innovate just as much as those trying to reach an international market through the internet.

He cited a statistic that said by the year 2017, more than $13 billion in sales will be conducted on smart phones, and he said as businesses look to the future, they must keep mobile in mind, as well as the age of potential customers.

"I think, from a retail perspective, we've got to figure out how to almost duplicate the web shopping experience in a brick and mortar store," he said. "People want to come in. Fifty-four percent want to touch a screen when they come into a brick and mortar store. That doesn't make sense to me, anyway, but if that's the way that the trend is going, we need to figure out how to duplicate that."

The 2014 Business Expo was scheduled to run until 3 p.m. with a variety of educational seminars ranging from "The Pulse of the Online Shopper" to "eCommerce Through Three Generations: Boomer, X and Millennial."

The expo also featured vendor booths set up where businesses could showcase their services to Chamber members.

The Dennis Smiley loan saga puts two of the state’s largest banks on opposite sides as Simmons First National added another layer to the growing legal web with a legal complaint filed in Benton County Circuit Court on Friday (May 2).  

Pine Bluff-based Simmons First, through its lawyers at Kutak Rock, filed a 44-page complaint against former Arvest banker Henry Dennis Smiley doing business as Design for the Home LLC. Centennial Bank also was named as a defendant in the case as a lender who might also lay claim to the collateral encumbered to Simmons.

Unlike the majority of previous loan default complaints filed against Smiley, the collateral used for three loans with Simmons First was not linked to the Smiley’s Arvest stock holdings. Simmons loaned Smiley $62,116 in October 2009 to be used as working capital in the Design for the Home business. The loan was secured by the inventory and receivables of that business, according to count documents.

In March 2010, Smiley received a second loan from Simmons for $38,125, which also was tagged for working capital in the design business and backed by the businesses inventory.

In each of these loans Simmons required payment in regular quarterly installments, but the second loan was extended in April 2012 when the final balance was due. In December 2012, Simmons loaned Smiley another $46,040 with a due date of June 2016. In loan number three Smiley pledged his interest in three residential lots in the Mountain View Addition in Fayetteville. The bank filed a UCC Financing Statement encumbering the tangible real estate commonly known as 525 N. Assembly Drive, Fayetteville. 

A search of the county real estate records shows this property is owned by Debra Parker-Ladd, with a mailing address of 307 Appalachian Way, McKinney, Texas. Smiley transferred the property to Parker-Ladd on Aug. 3, 2013, for a sum of $1, according to the deed on file. County records show an estimated sale price in 2013 was $229,000

Simmons made no mention of Parker-Ladd, but noted in the lawsuit that Centennial Bank may also have claim to this same tangible collateral. Simmons claims the Centennial lien would be junior, or subordinate, to Simmons’ claim. The Simmons filing asked the court for a judgment totaling $67,879 with interest accruing. The bank also asked for court costs related to the legal proceedings.

This is Simmons’ second complaint filed against Smiley in recent weeks following a $84,816 complaint lodged against HDS Holdings, AKA Dennis Smiley Jr. and Henry Dennis Smiley Sr.

Smiley Sr. has noted in recent court filings that he did not sign any documents, nor was he aware of loans made in his name.

SMILEY’S ANSWER
Smiley Jr., through his lawyers at Ball & Mourton in Fayetteville, answered the Arvest interpleading on May 2 agreeing with most of the points raised in the initial Arvest filing. Smiley noted that he has not received any payment from his stock account earned while he was employed at Arvest. 

He asked the court to allow the funds on deposit be applied to his legal costs and any other relief the court deems just and proper.

The Arvest Interpleading listed the names of 20 Arkansas banks. To date, nine banks have staked claims totaling $1.69 million. Today’s Bank and First Security Bank filed answers to the Arvest interpleading but did not furnish details about what is owed.

Tyson Foods second fiscal quarter revenue hit $9.032 billion, a more than 7.7% increase over the same quarter in 2013, with net income of $213 million up more than 124%. The improved financial results came primarily from sales and margin gains in the chicken business along with higher beef and pork prices.

The quarterly per share earnings were 60 cents, just below the consensus of analysts’ estimate of 63 cents per share. Investors began selling off Tyson Foods shares at the market opening as analysts belief the recent run-up in stock price was a little premature. In the first hour and half of trading 2.5 million shares had traded hands and the share price was off 8% to $39.24 down $3.41.

Tyson management gave an optimistic outlook for the back half of 2014 and 2015 saying it will be as good or slightly better than the past six months. But that was not enough to keep investors pacified given the stock price has surged 72% this year.

For the first six months of the year, Springdale-based Tyson Foods has posted $467 million in net income, well ahead of the $268 million in the same period of the previous year. Total sales for the six-month period was $17.793 billion, up 6.23% compared to the same period in the previous year.

The second quarter marked the first time the company posted quarterly sales of more than $9 billion.

"We had a record second quarter, which is a testament to our great team and our balanced multi-protein, multi-channel, multi-national business model," Donnie Smith, Tyson Foods' president and CEO, said in the earnings statement released early Monday (May 5). "Our second quarter is usually our most challenging. We had a lot to overcome, including a harsher than normal winter, but I'm satisfied with the results. I'm still confident in my expectations for the year that we will achieve our goal of 6-8% sales growth in value-added products while generating at least $2.78 earnings per share.”

Smith estimates a $15 million ding from cold weather impact. He said there is always a weather impact but this year the severity began earlier and lasted longer, noting that institutional sales were down because of school closures but those were mitigated by higher retail sales as moms cooked more meals at home.

Tyson said the recent tornadoes in Arkansas and other areas of the south did not hit company facilities though a few grower houses were destroyed. Tyson has had more than 200 workers help with the clean up efforts in four states and cook 63,000 meals for relief workers and storm victims. Tyson Foods is matching its employee contributions to the storm clean up efforts up to $100,000.

POULTRY PLUS
Quarterly sales in the chicken segment were $2.842 billion, up almost 4% over the second quarter in the 2013 fiscal year. Operating income in the segment during the quarter was $234 million, much better than the $143 million in the 2013 quarter.

Smith expects industry chicken production to rise between 2% and 3% on heavier weights with no meaningful uptick in birds slaughtered until the back half of 2015. The industry is somewhat restricted by older breeding flocks and processing capacity constraints.

Tyson said its domestic chicken business is strong, but Smith reminded analysts that it doesn’t have to grow the birds it processes in order to to expand because of its buy versus grow capabilities. He did say Tyson is tapped out on further processing capacity and the company plans to expand two lines in order to meet the demand it’s seeing in case-ready retail.

In the recent quarter, chicken prices reported by Tyson Foods were down 0.3%, from the prior year on the domestic side of the business. Tyson’s operating margin improved to 8.2% amid lower grain costs of $175 million in the quarter.

LEAN BEEF
Beef sales in the quarter totaled $3.825 billion, better than the $3.447 billion in the same quarter of 2013. Operating income in the segment was just $35 million, but that was a wide swing from the $26 million loss in the same quarter of 2013.

Smith said high live cattle prices kept Tyson on the sidelines through much of the second quarter, which allowed the company to better manage the margin spreads. The net operating margin for the quarter was 0.9%, well below the normalized range. Smith expects the back half of this year to mirror the first two quarters, which while positive is far from the company’s normal earnings potential in beef.

Steve Kay, publisher of Cattle Buyers Weekly, told The City Wire that high beef prices will likely keep consumer demand at bay through much of the summer grilling season.  Smith said beef prices are up about 4% at retail, but they are up 13% at the wholesale level and consumers have not yet felt the brunt of record beef prices.

PORK PED
The pork segment posted operating income of $107 million on total sales of $1.487 billion, compared to operating income of $72 million on sales on segment sales of $1.311 billion during the same period of 2013.

“We expect industry hog supplies to decrease around 4% to 5% in fiscal 2014 compared to fiscal 2013, partially offset by increased average live weights,” Smith said. 

Tyson will adjust its pork operational hours downward because of the negative impact the PED virus has had in hog supplies, according to Smith. He said pork prices are up at retail, but the cutout wholesale value has come down off of a record high which should allow for some promotional activity at the retail level by Memorial Day.

For fiscal 2014, Tyson expects its pork segment will be in its normalized margin range of 6% to 8%.

PREPARED FOODS GROWTH
Tyson’s prepared foods segment generated second quarter sales of $861 million, up 7.2% from the year-ago period. Operating income totaled $21 million, down fractionally the same period in 2013. The dip in operating income was attributed to higher raw material costs of $25 million, increased investments in the company’s lunchmeat business capacity and recent acquisitions.

Smith has said the prepared foods segment is a growth engine for the meat giant. The company continues to invest in this segment for longer term results. Much of the company’s capital expenditures this year— $650 million to $700 million — is earmarked for the prepared foods segment.

Tyson expects operational improvements and pricing to offset increased raw material costs in the coming months because Tyson uses a formula-based contract, but there is a slight lag time involved.

“As we continue to invest heavily in our growth platforms, we expect our prepared foods segment to be below its normalized range of 4.0% to 6.0% for fiscal 2014,” Smith noted in the release.

INTERNATIONAL STALLS
The only negative results were found in the company’s international segment, which saw poor market conditions in Brazil and weak demand in China along with costs incurred to prepare for future business. Tyson separated its international segment from the poultry business after recently re-aligning its top management teams.

"The International segment is another area where we think some short-term sacrifices are worth the long-term earnings potential. We've chosen to slow down our growth this year, primarily due to weak demand in China,” Smith said in the statement. “We are committed to our China operations, and we believe we now have the right pace for developing that business as we wait for demand to return. We think it will get sequentially better from here, and we like the long-term opportunity."

Smith said during the analysts call that the company had totally revamped the management in its Brazil operations from the president to field supervisor after several missed steps from the previous management team on the ground in Brazil.

“We have the right people in place there (Brazil) and expect this business to turn around in the back of this year,” Smith said.

In China, the avian influenza drag on chicken demand has lasted longer than expected, but Smith is optimistic that conditions will improve.

“Unless market conditions improve, we will incur losses for the remainder of the year; however the losses in the third and fourth quarters of fiscal 2014 should be lower than the losses sustained in the first two quarters of fiscal 2014,” Smith noted in the release.

BETTER OUTLOOK
The company expects the second half of the fiscal year to also generate good revenue, and execs are predicting $37 billion in total sales, a gain over the $34.374 billion in the previous fiscal year.

“We expect fiscal 2014 sales to approximate $37 billion as we continue to execute our strategy of accelerating growth in domestic value-added chicken sales, prepared food sales and international chicken production, as well as price increases associated with rising cattle and hog costs,” the company noted in the statement.

Flush with cash and a healthy balance sheet, Tyson continues to look for merger and acquisition opportunities through “bolt-on” and larger strategic plays, according to Dennis Leatherby, chief financial officer for Tyson Foods. He said the company will also continue to innovate new products that cater to consumer desires like the Tyson Daystarts breakfast item that has posted a record performance for a new product launch.

Tyson execs were asked to quantify how the company plans to grow earning per share by the 10% projected figure. Smith said the 10% earning per share growth year-over-year is attainable because he expects better performances out of China and Mexico, beef and pork segments to do the same or better, chicken profits and sales to grow and more synergies realized from some of the acquisitions made last year. Tyson expects fiscal 2014 earning of $2.78 per share.

Tyson shares continued to skid following Monday’s earnings call and the miss on net profits. Tyson Foods’ shares (NYSE: TSN) traded down nearly 9% at the noon hour Monday — $38.90, down $3.75. During the past 52 weeks the share price has ranged from a $44.24 high to a $23.39 low.

The management turnover continues at Target, this time from the top down as chairman and CEO Gregg Steinhafel said he is parting ways with retailer immediately. The company gave no details surrounding the resignation, but the retailer has struggled since the massive data breach was unveiled in December.

Target, based in Minneapolis, said Chief Financial Officer John Mulligan has been appointed interim president and CEO. Roxanne S. Austin, a member of Target's board, has been named as interim nonexecutive chair of the board. Both will serve in those roles until permanent replacements are named.

Steinhafel has agreed to serve in an advisory role during the transition.

"The last several months have tested Target in unprecedented ways," Steinhafel wrote in a letter to the board that was made available to the media. "From the beginning, I have been committed to ensuring Target emerges from the data breach a better company, more focused than ever on delivering for our guests."

Two months ago, the retailer announced the resignation of its chief information officer, Beth Jacob as it tried to overhaul its security operations. Target recently named Bob DeRodes, as its new chief information officer and the retailer is continuing its search for a chief information security officer and a chief compliance officer.

Arvest Bank announces Allen Huffman as community bank president in Eureka Springs. He takes over for Richard Kimberlin, who announced his retirement from Arvest in March.

Huffman has worked for Arvest Bank in Eureka Springs as an assistant vice president and commercial lender since 2010. Prior to that, he was a sales manager for Best Western Inn of the Ozarks in Eureka Springs.

“Allen is a hometown boy from Eureka Springs and an exciting choice to help lead our team,” said Arvest Bank Regional Director of Community Banks Chad Evans. “His experience and background in the local market has made him a successful commercial lender and gives him a great background for success as president.”

Huffman graduated with a bachelor’s degree in management and marketing from Arkansas Tech University in Russellville in 2007. He is also a graduate of the American Bankers Association Commercial Lending School at Southern Methodist University in Dallas.

He is the treasurer and second vice chair of the Eureka Springs Chamber of Commerce and a board member for the Mercy Health Foundation and the Eureka Springs Historical Museum. Huffman served previously as president of the Eureka Springs High School Alumni Association and on the boards of the Holiday Island Rotary Club and the Northwest Arkansas Tourism Association.

He and his wife, Paige Huffman, live in Holiday Island.

Wal-Mart Stores said it acquired Simplexity's Wireless Activation Retail Platform (WARP) on May 2, for an undisclosed amount.

This software will be integrated into Walmart Stores and Sam’s Clubs later this year, according to Randy Hargrove, corporate spokesman.

“We’ve seen more and more customers choosing where they purchase new smartphones based on where they'll get the best value for their trade-ins. Now, when they come to Walmart they’ll not only get low prices on the newest phones and exclusive offerings, but they’ll also receive a much quicker process for getting their new phone activated,” Karenann Terrell, chief information officer at Walmart, noted in a corporate blog on Monday (May 5).

She said Wal-Mart acquired Simplexiity's WARP out of bankruptcy. 

“A key part of our ability to innovate is leveraging technology, like Simplexity’s software, to create enhanced and differentiated experiences for our customers every day. The new platform and its easier-to-use interface will complement sales by enabling us to more efficiently support our customers when they purchase cell phones or other wireless electronic devices. We expect customers will experience a significant decrease in wait time in Walmart stores and Sam’s Clubs when activating their wireless device, Terrell notes.

She adds that Walmart.com will also eventually benefit from the technology, which will provide a seamless online option that will walk customers through the activation process.

Verizon Wireless says it will add around 300 jobs in Arkansas as part of an expansion of its sales, tech support and customer service operations in the state.

The full-time jobs will be in the telecom giant’s customer service, call center, tech support, and sales areas.

Salaries will be “competitive,” the company said, and do include full-time benefits and incentives. Verizon officials said they could not disclose salary ranges or the total number of current company employees in Arkansas due to competitive purposes.

College degrees are not necessary for many of the positions as part of the expansion, but Verizon said part of the benefits for workers would include up to $8,000 a year in tuition assistance.

“Verizon will be adding 300 jobs between now and the end of the year,” said Jonathan Blitz, Verizon Wireless Director of Business Sales. “We’re looking for very motivated tech-savvy individuals interested in advancing their careers.”

Gov. Mike Beebe, who was on hand for the jobs announcement, complimented Verizon Wireless for its recent efforts in helping communities ravaged during the tornado that ripped through Central Arkansas last week.

He also said that he feels positive about the job growth and stability Verizon has provided in the wake of its $28 billion buyout of Alltel Wireless in 2009. While high-paying job losses occurred with the acquisition, Verizon Wireless established a regional headquarters in Little Rock on the old Alltel campus.

“There was so much trepidation that so many good-paying jobs would disappear when Verizon bought Alltel,” Beebe said. “We’ve been very pleasantly surprised with how things have gone. Good jobs remain.”

Job additions in the telecom industry have been abundant in recent months. Recently, AT&T announced it hired 450 in Arkansas in the last year. Currently, AT&T says it has openings for nearly 80 jobs, 50 of which are new jobs.

After splurging on tablets and smartphones, beauty supplies, apparel and jewelry for mom last year, consumers this year will celebrate Mother’s Day (May 11) by keeping practicality in mind, according to the National Retail Federation.

The retail group’s Mother’s Day spending survey, conducted by Prosper Insights & Analytics, indicates Americans will spend an average of $162.94 on mom this year, down from a survey high of $168.94 last year. Total spending is expected to reach $19.9 billion.

“As one of the most universally celebrated holidays, retailers will take this opportunity to attract Mother’s Day shoppers with promotions on ladies apparel items, health and beauty products, jewelry and even restaurant options,” NRF President and CEO Matthew Shay said in a statement. “Now fully into spring, retailers are hoping consumer sentiment and spending intentions continue to grow as we round out one of the busiest retail seasons of the year and prepare for summer.”  

Most consumers will acknowledge that appreciation with a greeting card (81.3%), and two-thirds of those celebrating will buy mom her favorite flowers, spending a total of $2.3 billion, and 33.5% will look for spring sweaters and blouses, spending a total of $1.7 billion on apparel and accessory items, according to the survey.

Other key spending estimates include:
• Books and CDs — $480 million
• Housewares, gardening — $812 million
• Spa gifts — $1.5 billion
• Jewelry— $3.6 billion
• Brunch or dinner $3.8 billion.
• Consumer electronics — $1.7 billion
• Gift cards — $2.1 billion

“Americans haven’t forgotten about the state of the economy and are treating their finances and gift-giving budgets in a way that keeps practicality top of mind,” said Prosper’s Consumer Insights Director Pam Goodfellow. “But like we saw with Valentine’s Day and Easter, people this year will look for special ways to treat mom to something nice without breaking the bank, knowing it’s the thought that counts.”

For anyone expecting more drama surrounding a proposed planned zoning district for the Fianna Hills Country Club, expect to be disappointed.

In an e-mail from Fort Smith City Administrator Ray Gosack to members of the city's Board of Directors, Gosack said the proposed PZD originally scheduled to be considered at Tuesday's (May 6) meeting was not something the owners of the country club wanted to see passed during the meeting.

"I spoke this afternoon with Jim Shields, co-owner of Fianna Hills Country Club, about his interest in the PZD application on tomorrow night’s board meeting agenda," Gosack wrote. "Mr. Shields said that he and his partner have no intention to undertake a project like that proposed in the PZD application. He said that he doesn’t believe a prospective buyer would ever have interest in the proposed project. Mr. Shields asked that the board not approve the PZD application, and to leave the zoning as it currently is."

When reached Monday for comment, Fianna Hills Country Club co-owner David Mille said he would not comment on the matter.

The application for the PZD was originally sought by developer Lance Beaty of Fort Smith-based FSM Redevelopment Partners. Beaty, who had successfully redeveloped the former Phoenix Village Mall into an office complex that now employs more than 1,200 people, had proposed purchasing the country club and investing $20 million to rebuild the country club with amenities such as guest suites and a medical concierge service.


His plans to redevelop the property hit a snag when residents of the Fianna Hills neighborhood began to not only express vocal opposition to the project, but also started a petition to limit possible uses under the PZD.

Lisa Clay, who lead petition efforts to amend the wording of the proposed PZD, said she and other residents had concerns about the types of uses allowed within the PZD. Concern also arose from the Fianna Hills Property Owners Association, with President Pat Ross claiming that Beaty had told him the plans for the $20 million country club redevelopment would not work and he instead would build an office complex at the site, a claim that Beaty denied to The City Wire.

The future of the club remains uncertain as the club's owners have changed their outlook for the club multiple times. Initially, Mille said he and Shields could not keep the club open with its current business model, which they said has been losing money for several years, even saying that closing the club was not "an idle threat."

The two men then held a meeting with members of the club in April where they laid out in clear terms the current financial situation at the club.


"But there will come a point if we cannot turn a profit, where we are going to have to close it," Mille said. Shields was clearer, telling members that the club only had one to three months of life left in it.

The men said there were two interested buyers following Beaty's pulling out of the project, one that is a private group and another that is led by a group of Fianna residents. Clay and her husband have also been trying to lead a group of residents to purchase the club, though at that meeting Shields confirmed that no formal approach or offer had been made by the Clay group.

With Mille declining to comment on the latest developments, the future of the club is anybody's guess.

Rockline Industries' Springdale manufacturing facility continues its stellar safety record garnering another award from the Arkansas Department of Labor's Occupational Safety and Health Division. The Springdale plant recently achieved four million safe working hours.  
 
The award recognizes companies whose employees have accumulated four million work hours without a lost day away from work due to a work-related injury or illness. Rockline was recognized for reaching three million safe work hours in 2013. 
 
"We have a great base of caring, engaged employees who make personal and product safety their mission," said general manager Joel Slank. "We fully intend to achieve five million hours and beyond."
 
The plant converts private label folded wet wipes for major North American retailers on a 24-hour daily schedule. Arkansas state officials will be back on site May 13 to pass out its fourth consecutive safety award in less than four years.

Arvest Bank has named Kelly Carlson and Brent Gautier as assistant vice presidents for Arvest Bank in Benton County. Both are commercial bankers.

Carlson first joined Arvest Bank as a commercial loan assistant in June 2008. He was promoted to credit analyst in 2010 and to commercial banker in 2012.

A 2000 graduate of Bentonville High School, Carlson earned a bachelor’s degree in marketing from Harding University in 2004, adding a master’s degree in 2011. He is also a graduate of the American Bankers Association National and Graduate Commercial Lending School.

Carlson is involved with Northwest Arkansas Emerging Leaders and the Boys and Girls Club golf tournament committee. He previously served with the Make-A-Wish Foundation, Susan G. Komen Race for the Cure and Habitat for Humanity. He and his wife, Cortney Carlson, have a daughter, 18-month-old Julianna Mae.

Gautier joined Arvest Bank in June 2005 as a credit analyst. He was promoted to commercial banker in 2012.
 
He graduated from Van Buren High School in 1999 and earned his bachelor’s degree in accounting from the University of Central Arkansas in 2002, adding a master’s degree in 2003. Gautier is also a graduate of the American Bankers Association National Commercial Lending School at the Southwest Graduate School of Banking, Southern Methodist University in Dallas.

His wife, Amy Gautier and he have two children, 3-year-old Owen and 1-year-old Allie. Gautier is active in the Northwest Arkansas Emerging Leaders and with the United Way of Northwest Arkansas.

Clarity Pointe of Fayetteville, Northwest Arkansas’ first free-standing assisted living community helping those with Alzheimer’s disease and other forms of dementia, is one of only three communities in the region to be certified as an Alzheimer’s Special Care Unit (ASCU).

Clarity Pointe, which opened in April, received its ASCU certification from the Arkansas Office of Long Term Care. ASCUs are specialized units that offer dedicated services for individuals with Alzheimer’s disease, meaning there is a distinct and separate entity of care and programming for memory support.

In addition to a dedicated area, ASCU’s have specific requirements for physical design and access, assessment and individual support plans for residents, types of therapeutic activities, as well as staffing and staff training.

Areas of training focus include stages of Alzheimer’s; etiology, philosophy and treatment of dementia; behavior management; communication skills; activity programming; and individual-centered care, among others.

The three neighborhoods of Clarity Pointe Fayetteville support a total of 59 residents. Each has a private bedroom/bathroom suite in safe and secure surroundings on five acres at 1967 West Truckers Drive. The community is a joint venture between Des Moines, Iowa-based LCS and Chicago-based Harrison Street Real Estate Capital.

David Deggs has resigned as executive director of Downtown Bentonville Inc. (DBI), to accept a position as director of adult & community education with the Fayetteville Public School System, effective June 1. Deggs will remain at the helm of DBI through the end of May.


Downtown Bentonville Inc. is an organization with a team of eight professionals who deliver programs and initiatives designed to promote the quality of life for residents, provide unique experiences for visitors and promote economic development. 


The board of directors is engaged in the leadership of DBI and is working to identifying a new executive director as soon as possible, according to the organization’s press release.

“The DBI Board of Directors appreciates David’s time with the organization, and we wish him every future success. Our very capable and experienced DBI staff will continue to provide Downtown Bentonville with excellent programming and services,” said Brenda Anderson, president of the DBI board.

Lisa Beebe, DBI’s business operations manager, will act as the primary contact for administrative issues and will provide continuity during the transition in leadership.


Deggs has served as executive director of DBI since October 2013. DBI launched this spring the largest farmer’s market to date with more than 65 vendors, and continues to manage First Fridays in the downtown area. DBI is also a membership organization connecting corporations, small businesses and individuals who are passionate fans of Downtown Bentonville. 

The organization recently relocated its offices to The Hub on SW A Street in the emerging Bentonville Arts District.

Building permit values for the cities of Fort Smith, Greenwood and Van Buren increased 26.23% in April from the same period in 2013. Permits issued in the three cities were $23.163 million, compared to $18.35 million in April 2013.

The first four months of the year have seen even larger gains, with values increasing 41.07% compared to the same period in 2013. During that period, permits totaled $64.95 million while the same four months in 2013 only had a value of $46.041 million. The 2014 figures also represent a 68.93% increase over the first four months of 2012, when only $38.448 million in permits were issued.

FORT SMITH
The city of Fort Smith saw the largest total of permits issued across the three cities in April, with 222 permits valued at $21.759 million being issued last month, an increase of 23.24% over last year's issuance of $15.62 million in permits.

While residential permits were a large portion of Fort Smith's numbers last April — a new mid-range apartment complex under construction at Chaffee Crossing accounted for a third of the city's building permits during the April period — a variety of smaller commercial and residential projects drove a more balanced permits report.

Forty commercial permits were issued in April with a total value of $11.869 million. The totals included four new projects valued at $5.815 million.

Residential activity was on par with last year's permits, with $1.8 million in duplex construction approved and an additional $4.783 million in generic residential construction permits issued.

GREENWOOD
Building permits for Fort Smith's southern neighbor were down 56.28% in April. Only $746,320 in permits were issued last month, compared to $1.707 million for the same period last month.

Of the eight permits issued in the city last month, four of those were new residential construction valued at $706,680, while two storm shelters were installed with a total value of $6,000.

VAN BUREN
Van Buren posted another double digit decline in building permit values for last month, just as it did in April 2013.

The city issued permits valued at $667,400 last month, a 34.76% drop from the same period last month of $1.023 million. That number was itself a 53.51% drop from April 2012, when $2.201 million in permits were issued in the city.

Driving Van Buren's numbers last month were 12 permits valued at $607,400 for new residential construction.

The city also issued two sign permits with a total value of $52,000.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

A couple of analysts who follow Tyson Foods adjusted their earnings up after yesterday’s conference call (May 5) on the meat giant’s financial results for the second quarter ending March 31.

But, Tyson shares remain in sell off mode on Tuesday (May 6) closing at $38.25, down 19 cents. Shares got as low as $38, before rebounding slightly at the close. Tyson shares are down nearly 10% in the past two days after narrowly missing analysts’ net income estimates.

J.P. Morgan analyst Ken Goldman, raised his fiscal 2014 earning guidance to $3 after reevaluating Tyson’s second quarter results. He did guide downward for 2015 to $2.83, which he related to some recent upward movement in corn futures.

Kenneth Zaslow, analyst for BMO Capital Markets, also raised his 2014 guidance to $2.93, up from $2.89. Unlike Goldman, he believes 2015 will be better for Tyson Foods than 2014.

Tyson CEO Donnie Smith also said 2015 earnings will be 10% better than 2014, based on his inside knowledge and best calculations.

Smith’s optimism did not sway Brett Hundley, an equity analyst with BB&T Capital Markets. Hundley lowered his fiscal 2014 earnings to $2.90, from $2.95. He also reduced 2015 guidance to $3.16.

Hundley noted to investors that Tyson is proving its ability to navigate differing market environments. He also expects Tyson’s strong balance sheet will allow it to compete for value-enhancing acquisitions.

Tyson Foods also announced a quarterly dividend of 7.5 cents per Class A share and 6.75 cents to Class B shareholders. The dividend is payable Sept. 15 to shareholders of record at the close of business on Aug. 29.

The acquisition activity for Pine Bluff, Ark,-based Simmons First National Corp. continues with the bank on Tuesday (May 6) announcing a $243.4 million deal to acquire Community First Bancshares based in Union City, Tenn.

The Community First deal comes less than two months after Simmons announced the $66 million acquisition of Little Rock-based Delta Trust and Bank, and comes less than a year after Simmons’ $53.6 million bid to buy Little Rock-based Metropolitan National Bank out of a bankruptcy process.

In a recent interview with Talk Business, Simmons First CEO George Makris Jr. hinted that the next moves might be in Kansas or Missouri.

“We really would like to fill in our footprint in Missouri and Kansas. We have a strategy now for de novo growth. We’ve got some really good bankers in those markets,” Makris said in the interview. “We need a little more scale in those markets to be able to do some of the things that we really want to do.”

Simmons said Tuesday that the Community First deal would immediately boost earnings. The deal is expected to close in the fourth quarter, and is subject to regulatory approvals.

"We are excited to welcome the associates and customers of First State Bank and its subsidiaries to the Simmons Family. As Simmons continues to expand its community banking strategy, it is important that we seek partners that have common goals, experience, and reputations as excellent corporate citizens. First State certainly fits that criteria," Makris said in the statement. "The leadership of First State throughout its 127 years has built a franchise focused on meeting the financial service needs of its customers in the markets it serves. We believe this partnership will enhance the customer experience for both Simmons and First State customers."

Simmons noted that the deal would provide the bank with an “Entrance” to the Nashville metro area.

As of March 31, Community First had $1.9 billion in assets, held $1.1 billion in loans and had $1.6 billion in deposits, and operated 32 “Financial Centers” in the state. According to the Simmons statement, the bank is the fifth largest bank based in Tennessee according to deposits. Union City is in the northwest corner of Tennessee.

As of March 31, Simmons First National was a $4.4 billion financial holding company with operations in Arkansas, Kansas and Missouri. Pine Bluff-based Simmons First posted first quarter net income of $4.35 million compared to $5.94 million one year ago. However after settling one-time charges associated with its acquisition of Metropolitan National Bank, Simmons First’s core earnings were $7.48 million for the quarter compared to $6.08 million one year ago.

"We at First State are excited about the strategic merger of our company with Simmons. The philosophy and strategic plan of Simmons mirrors that of First State in many ways," Community First President and CEO, John Clark said in the Simmons statement. "Both institutions are over one hundred years old with roots in rural markets and have completed successful expansions into faster growing metropolitan markets. Each places a strong emphasis on asset quality, stability of earnings and excellent regulatory relationships."

Simmons shares (NASDAQ: SFNC) were trading late afternoon at $36.66, down eight cents. During the past 52 weeks, the price of the thinly traded shares has ranged from a $39.05 high to a $24.06 low.

Walmart.com welcomed 60 new employees this week from the acquisition of Adchemy, a product search company that was founded in 2004. WalmartLabs blogger Jeremy King notes that the Adchemy team adds talent in semantic search, data analytics and marketing.

“Walmart isn’t a retailer in Silicon Valley, we’re building an Internet technology company inside the world’s largest retailer. We are 2,100 strong and growing,” King noted in his May 6 blog entry.

Adchemy is WalmartLabs twelfth acquisition since Labs’ creation, and one of the largest to date in terms of people.

“This latest acquisition continues our quest to build best-in-class e-commerce capabilities in-house. We have been hiring highly-talented teams organically and are augmenting that by acquiring talent to build our own technologies that can scale with our global business,” King writes.

Among the talent joining WalmartLabs are Rohit Deep who was the vice president of engineering and Ethan Batraski who served as vice president of products, formerly the head of search innovation at Yahoo!. Data scientist Esteban Arcaute, head of research, who holds a PhD from Stanford and also worked at Yahoo!, King said.

He said WalmartLabs has hired nearly 1,000 talented associates over the past year.

“The result of this approach is a highly-talented workforce delivering high-impact products. Our internal search engine, built by the Kosmix team, took only nine months to ship and led to a 20% increase in search conversion. Inkiru technology was integrated within four months after the team joined, and today their predictive analytics platform is applied to 100% of our transactions. Here’s a snapshot of the key acquisitions @WalmartLabs has made in the last three years:

Selling downtown Bentonville as a residential hot spot is a no-brainer given the cuisine and arts that draw thousands to the town square each week. The demand for living downtown is growing, and the developers behind three new residential developments all within walking distance to the Bentonville Square hope to answer the demand.

City planners approved two new large scale residential developments on Tuesday night (May 6) at the regular planning commission meeting. The Black Apple Addition will be located at 812 Northeast A St., near Crystal Bridges Museum. The plan calls for 11 single family townhomes between 800 and 1,100 square feet. The homes will be sold as individual units, but the land lots are communal and part of a property owners association, according to Jon Stanley, city planner.

Stanley said the planned development will sit adjacent to the trails at Crystal Bridges Museum of American Art and is about five blocks to the downtown square. The developer is listed as C&L NWA Properties.

The second large scale residential project approved on Tuesday was the Lamplighter Townhome development to be located at 219 NW A St., roughly three blocks from the downtown square. This development will have four single family townhomes, about 1,000 square feet each and brick construction. The units will be connected like row homes, according to the diagram submitted to the city.

Building residential density is part of Bentonville’s long range plan to develop its Arts and Markets Districts which are extensions of the townsquare. In December city officials unveiled a large 18-acre downtown area ripe for redevelopment.

The two major streets that connect the two districts — Main Street and Southwest A Street — are in the midst of redevelopment. Troy Galloway, community and economic development director for Bentonville, told The City Wire in December that more residential options are needed to build population density downtown.

“We felt like this plan was needed given the near-over capacity levels of the immediate downtown square area and this southeastern district is somewhat ripe for redevelopment as the new Razorback Greenway runs right through this area,” Galloway said.

The two new districts will hopefully attract more business to the expanded downtown area, but keeping them there will depend on increased foot traffic, he said.

The city plan called for denser multifamily development on the perimeter of the Market District as well as the Arts District, with single family homes, shops and mixed use space along both Main Street and Southwest A.

ERC recently broke ground on its 62-unit multifamily project with mixed use space which is located at corners of Southwest A and Southwest Fourth Streets. This large scale project, known as the ”Thrive,” will sit within the Arts District. The Thrive apartments are set to open by the end of this year. Thrive will be marketed to business professionals with one and two-bedroom units ranging from $800 to $1,200 per month. The units will be upscale but small, 520-square-foot one bedrooms and 1,000-square-foot two-bedrooms. The ground floor terrace will be a common area open to artists and musicians to create a unique sense of community.

Across the street, the Hub is a redeveloped office and retail complex which has already opened for business. Downtown Bentonville Inc. has already moved its offices into the Hub. Bike Rack Brewery and Peddler’s Pub and a woodfire pizzeria have leased space in the Hub. The Razorback Greenway Trail System is adjacent to the Hub.

Galloway said there are other projects coming and considerable interest in redevelopment projects in both of the new districts following the city’s unveiling of the plan in December.

A new Walmart Neighborhood Market to be located just off the square in the redeveloped Midtown Center is expected to draw traffic draw to the area once it and the surrounding mixed-use project opens in the spring of 2015.

Beverly Winney, RN, MSN, is the new chief nursing officer at Washington Regional Medical Center. Promoted to chief nursing officer, she is a member of the hospital’s executive team and reports to executive vice president and administrator Mark Bever.

Since 2008 she has served as assistant chief nursing officer at Washington Regional, working alongside Claudia Williams, who recently retired after eight years as chief nursing officer.

Winney earned a bachelor’s degree in nursing from the University of Memphis and a master’s degree in nursing from the University of Southern Mississippi. Winney brings extensive experience to the position, having served a total of 13 years as chief nursing officer at Northwest Medical Center-Bentonville and Helena Regional Medical Center in Helena-West Helena.

Consumer sentiment is a strong factor in economic performance given that household purchases comprise about 70% of the nation’s gross domestic product. National polls like the Thomson/Reuters Michigan Sentiment Survey and the Consumer Sentiment Index are reported monthly. But, Arvest Bank seeks to drill down to a more regional and local reading of consumer sentiment with a poll of its own.

Arvest’s commissioned poll is expected to measure economic expectations and outlook of consumers in Arkansas, Missouri and Oklahoma. The bank said Wednesday (May 7) the first survey is underway among more than 1,200 consumers in the three-state area. The phone surveys are expected to be completed over the next several weeks. The bank said it commissioned the survey to better understand consumers’ views on the economic climate in Arkansas, Missouri and Oklahoma and to provide some factual guidance for business customers within the markets. 

“We at Arvest Bank are excited to learn all we can from this survey so we can better anticipate what our customers expect from their financial service provider,” said Jason Kincy, marketing director for Arvest Bank. “When looking at economic indicators, we are told that consumer spending accounts for about 70% of U.S. economic activity. If consumers feel confident enough in their local economy to begin shopping for a new car or to buy a new refrigerator, we, as a partner in their personal finances, need to anticipate and facilitate those needs.”

The Arvest Consumer Sentiment Survey will measure respondents’ opinions on their personal financial situation, future plans and general feelings about the economy. This will provide for a comparison with the national Surveys of Consumers conducted monthly by the University of Michigan for Thomson/Reuters. The results of this first telephone survey, conducted by the University of Oklahoma’s Public Opinion Learning Laboratory (POLL), will establish a baseline for future comparison of subsequent surveys that will be conducted every six months, Arvest noted in the release.

The results are expected in approximately two months. The data will be tabulated by the Center for Business and Economic Research (CBER) at the University of Arkansas at Fayetteville. Results will be further evaluated on an individual state level by CBER director Kathy Deck; David Mitchell, director of the Bureau of Economic Research at Missouri State University; and Russell Evans, director of the Steven C. Agee Economic Research & Policy Institute at Oklahoma City University.

The survey is designed to measure three primary indices mirroring the national Thomson/Reuters Michigan Surveys of Consumers. 
• Index of Consumer Sentiment
• Index of Consumer Expectations 
• Current Conditions Index 

Each survey respondent will answer questions about their financial situation, compared to a year ago. They will also be asked if they think they will be doing better or worse, financially, in the next year than they are doing now. Other questions will focus on respondents’ opinions on planned household purchases such as major appliances or new vehicles, how much consumer debt they have and how much of their income they are saving.

They survey also will ask about their chances of expanding credit card debt, or any difficulties they may foresee in obtaining credit. Lastly, the survey asked about business conditions for the coming year and any economic changes they expect over the next five years.

“We are excited to get this poll underway and to begin analyzing the results,” Deck said. “As with all first-time surveys, the results will provide a baseline number, a starting point for us to evaluate how that opinion changes in each state over time. Future reports of the Arvest Consumer Sentiment Survey will focus on how the results have changed, either for better or worse, from the baseline established during this first survey.”

The survey will have a sample size of 1,200 with 400 respondents from each state and a margin of error of 4.2% at the state level.