Organizers of the inaugural Steel Horse Rally were hoping for at least 5,000 motorcycle riders the first year. The early estimate suggests they may have doubled that number.

“We’ve looked a drone footage and worked with the police (on an estimate) ... and we’re thinking we had between 8,000 and 10,000 bikes,” said Dennis Snow, president of Steel Horse Rally Inc. “Even on the low side, it proves that this area was really ready for something like this.”

There were an estimated 1,000 motorcycles and other vehicls that participated in the “Thunder Through The Valley” parade – a key feature of the overall event held in downtown Fort Smith on May 1-2. The parade began Saturday afternoon at Fort Smith Park and traveled to in downtown Fort Smith. More than 10 minutes elapsed between the first motorcycle leaving the park and the last. Capt. Kirk Redwine of the Fort Smith Police Department estimated that up to 2,000 people were at Fort Smith Park to help kick off the parade.

“Awesome.” That’s what David Hester of Van Buren said Saturday afternoon just after he parked his motorcycle in the middle of Garrison Avenue when asked what he thought about the Steel Horse Rally. “So far it’s really been a great event for us ... and that’s good because this is just their first year.”

Hester and his wife, Brittany, were part of the more than 15,000 people – a high estimate was 20,000 – to attend the the two-day rally that included live music at Harry E. Kelley Park, many food and product vendors, and thousands of motorcycles stretched along Garrison Avenue between 6th and 10th Streets.

Event organizers and backers say the rally could grow to be one of the largest motorcycle rallies in a several state region. They have noted that the large and successful Bikes, Blues and BBQ rally in Northwest Arkansas had modest beginnings.

The event was geared toward honoring members of the military, veterans, police and firefighters and first responders. The rally also helps local charities including the Gregory Kistler Treatment Center, The Arkansas Veterans Home, The Fort Smith Museum of History and the Darby Legacy Project.

“Awesome” was a word Snow said he heard many times during the weekend. The event had a few small glitches, but nothing big, which was a relief to Snow and his wife Karen. The pair were the leadership team for the event. Some of the “hiccups” were good, Snow said. For example, more vendors showed up than anticipated.

“This was a whole lot better than I thought it would be for the first year. The perfect weather definitely helped. Mother Nature is obviously a biker,” Snow said Sunday.

Riders came from more than 15 states, including the northeastern tip of Maine, Idaho and Ohio. At least one biker was from Canada, Snow said.

Snow said the more than 200 volunteers were a big reason for the event’s first year success.

“The volunteers, oh my goodness, I can’t tell you how great they were. They were the fuel for the whole rally,” Snow said.

Snow also credited the city of Fort Smith for its support.

“The Fort Smith Police Department was absolutely incredible. They made everybody, all the bikers, all the visitors and our vendors, just everybody, feel welcome. They had such a great attitude about the whole thing. And it wasn’t just the police. Every city department was so supportive of this. There was never ever any dissension. To me it was a prime example of everyone in the city working together,” Snow said.

The police reported three arrests Friday night, but none of those were bikers.

“You never know what to expect when you get this many people in one place ... but I’d say it’s been a good crowd so far,” Redwine said Saturday afternoon,

(Michael Tilley, a co-owner of The City Wire, is on the Steel Horse Board of Directors.)

First quarter net income of $745,000 for Fort Smith-based ArcBest was well below what the market expected, but it was the company’s first first-quarter profit for the first time in seven years and a wide swing from the first quarter 2014 loss of $5.19 million.

Quarterly revenue for ArcBest, a transportation holding company with less-than-truckload carrier ABF Freight as its largest subsidiary, was $613.276 million, up 6.1% compared to the first quarter of 2014.

The net income of 3 cents per share was below the consensus estimate of 10 cents per share. Also, first quarter revenue was below the consensus estimate of $621.27 million.

A pension settlement charge of $684,000 was incurred in the first quarter, which shaved 3 cents per share from net income.

First quarter earnings did not carry the momentum from a strong fourth quarter and full year 2014. ArcBest reported in February full year net income of $46.177 million, up 192% compared to the $15.811 million in 2013, and a wide swing from the $7.7 million loss in 2012. Fourth quarter net income was $14.543 million, up 40.5% compared to the same quarter of 2013.

ArcBest CEO Judy McReynolds said in the earnings report issued early Monday (May 4) that productivity and pricing helped end the streak of first-quarter losses.

"We were very gratified to see ArcBest post a first-quarter profit for the first time in seven years," McReynolds noted in the statement. "As productivity and pricing improved, ABF Freight reversed last year's first-quarter losses while maintaining its focus on better serving customers. The emerging businesses contributed their largest revenue portion yet to ArcBest, at 29 percent of total consolidated revenue, as our efforts to provide tailored, customized solutions across the supply chain are resonating well."

ABF Freight, the company’s largest segment, posted first quarter revenue of $441.207 million, just above the $428.871 million in the 2014 quarter.

Key measurements in the segment were mixed. Billed revenue per hundredweight was $28.06, up 3.7% and the number of shipments was up 4.9%. However, tonnage shipped during the quarter was down 1.3%.

ArcBest did see first quarter improvements with respect to growing its non-asset (non-trucking) business revenue. In total, the company’s four non-trucking subsidiaries – Premium, FleetNet, ABF Logistics, and ABF Moving – generated $183.7 million in quarterly revenue, or 29% of the company’s total revenue. That was up from $158.4 million in the 2014 first quarter, which was then 27% of the company’s revenue.

The first quarter non-asset revenue was below the 34% of total revenue for all of 2014.

Premium Logistics (Panther), the company’s largest non-asset segment, posted first quarter revenue of $75.292 million, better than the $72.226 million in the first quarter of 2014. However, operating income in the segment fell to $1.195 million compared to $3.364 million in the first quarter of 2014.

“The quarter's results were impacted by unfavorable experience in casualty claims and higher than expected healthcare costs, which in total increased Panther's operating costs versus the same period last year by $1.5 million,” the company noted in the earnings report. “Finally, costs associated with investments in additional sales personnel and infrastructure for future business growth also reduced first quarter 2015 profitability.” 

SEGMENT OPERATING INCOME– First Quarter 2015
ABF Freight
Q1 2015: $43,000
Q1 2014: –$12,184 million

Premium Logistics (Panther)
Q1 2015: $1.195 million
Q1 2014: $3.364 million

FleetNet (maintenance services)
Q1 2015: $1.17 million
Q1 2014: $1.401 million

ABF Logistics
Q1 2015: $775,000
Q1 2014: $535,000

ABF Moving
Q1 2015: –$363,000
Q1 2014: –$841,000

ArcBest shares (NASDAQ: ARCB) closed Friday at $35.70. During the past 52 weeks the share price ranged from a $47.52 high to a $30.14 low.

Tyson Foods is making good on its claim that the $8.5 billion acquisition of Hillshire Brands in August 2014 would boost top and bottom lines. The Springdale-based company reported Monday (May 4) that fiscal second quarter earnings were up 45.5% and earnings in the first half of the fiscal year are up 32.5% compared to the same periods in 2014.

Second quarter net income of $310 million was better than what market watchers expected. The per share earnings of 75 cents was better than the consensus estimate of 72 cents per share.

Total revenue in the second quarter was $9.979 billion, better than that $9.032 billion in the same quarter of 2014, but slightly below the consensus estimate of $10.11 billion.

"This was another great quarter and better than we initially expected," Donnie Smith, president and CEO of Tyson Foods, said in the earnings report. "Our fiscal second quarter is seasonally challenging, but we came in above our projections due to strong performances by our Prepared Foods and Chicken segments.”

Net income for the first six months of the fiscal year reached $619 million, well ahead of the $467 million during the same period in the previous fiscal year. Revenue for the six months was $20.796 billion, up compared to the $17.793 billion in the fiscal 2014 six months.

Investors took note of Tyson’s record quarter with the share price (NYSE: TSN) rising to $41.16 in the morning session, up 1.65% on heavy volume. The share price has been somewhat stagnate over the past year as the company took on considerable debt in acquiring Hillshire Brands. Over the past 52 weeks the share price has ranged from $34.90 to $44. Wall Street has predicted a $50.25 one-year target price, but investors are still somewhat gun shy given the Avian Influenza concerns that continue to shut off exports.

CONCERNS CITED
Smith told analysts that bird flu concerns and West Coast port congestion issues each had negative impacts on the company’s bottom line in the quarter. He said the West Coast port issues cost the company around $20 million in operating income, or 3 cents a share to net earnings.

With the bird flu outbreak in turkey flocks and egg breeders, Smith said exports of chicken leg quarters have been disrupted. With each new case, Smith said the time clock restarts for another 60 day to 90 days. 

On the plus side, Smith said Tyson Foods is exporting about 50% less chicken leg quarters than it did in 2010. Over the past year Tyson said it has purchased more chicken parts in the open market, roughly 50% more loads per week in the first half of fiscal 2015 than a year ago. With this buy versus grow policy Tyson also mitigated its risks with the leg quarters, which are primarily exported. 
Smith said when Tyson buys the parts it needs, that includes up to 10% of breasts that enter the processing facilities. Buying just the needed part eliminates the leg-quarters sitting in the freezers like processors slaughtering the whole bird. He expects leg quarter pricing to be soft as long as export markets are closed.

CHICKEN, PREPARED FOODS
The chicken and prepared foods segment – where most of the Hillshire Brands business is now reported – have been the stars for Tyson Foods. For the first half of the fiscal year, operating income for poultry was $683 million compared to $487 million in the same period of the 2014 fiscal year. Prepared foods posted first half operating income of $268 million, a big increase compared to the $37 million in the same period in 2014.

Operating income in the chicken segment increased due to improved sales and lower feed costs which decreased $75 million and $185 million during the second quarter and first six months of fiscal 2015, respectively.

Revenue in the prepared food segment also provides a clear example of the Hillshire impact. The prepared foods segment hit $4.004 billion in sales during the first six months of the fiscal year, more than 126% than the $1.768 billion during the comparable fiscal 2014 period.

Operating income in the prepared food segment improved due to an increase in sales volume and average sales price from Hillshire Brands products. Also, the company reported lower raw material costs of approximately $40 million and $30 million for the second quarter and first six months of fiscal 2015, respectively.

The prepared foods segment posted a record 8.4% operating margin in the quarter behind the realized synergies which included operation realignment with Hillshire with some procurement and logistics savings as well.

Smith said the company is ahead of its goal to gain value out of the Hillshire deal.

“The acquisition of Hillshire Brands has played an important role in Tyson Foods' transformation, and we are very pleased with the progress of the integration and synergy capture, achieving $77 million in synergies in the second quarter,” Smith noted in the earnings report. “Because we are ahead of pace in reaching our stated target of more than $225 million in fiscal 2015, we are raising our synergy target to more than $250 million for this year, $400 million in 2016 and $600 million in annual synergies by the end of fiscal 2017.”

All pistons are firing in Tyson’s poultry segment behind an 11.7% operating margin, low feed costs and growing consumer demand up 3% for fresh chicken. Smith said deli and quick-serve chicken sales are also up. Quick serve was up 8% and Mexican quick-serve sales rose 11%.

BEEF, PORK CHALLENGES
As expected, Tyson Foods’ beef segment posted a $20 million operating loss during the second quarter, and has a $26 million operating loss for the first six months of the fiscal year. Operating income in the first half of fiscal 2014 was $93 million.

Smith said the beef segment was more challenging than expected in part because of the West Coast port congestion. Also weighing down profits were thin processing margins squeezed by high live cattle prices at a time when Tyson needed to fire up the expansion at its Dakota City, Neb., beef processing plant.

“We had this huge capital investment in Dakota City that we needed to run at the same time live cattle prices were the highest,” Smith said.

On a positive note, Smith said the updated facility is state-of-the-art and will pay off in the future when beef demand and supplies recover. With that, Smith believes the worst of the beef downturn in behind them noting that the back half 2015 should be positive, though not as profitable as last year.

He said the 19% that wholesale ground beef prices rose in the past month has not yet been fully passed on to consumers.

Tyson’s pork segment had an operating income of $99 million in the quarter, down from $107 million a year ago. Sales revenue declined to $1.2 billion, on softer than expect pricing which was down 15.4% from the year-ago period. Sales volume in the pork segment decreased because of the sale Heinold Hog Markets business in the first quarter of fiscal 2015. Excluding the impact of that sales, sales volume grew 3.2% and 2.4% for the second quarter and first six months of fiscal 2015, respectively, driven by better pork demand.

INTERNATIONAL SCALEDOWN
Tyson Foods international footprint continues to shrink. International sales for the quarter were $222 million, down from $328 million a year ago. Operating losses of $15 million, where halved from the $30 million loss reported a year ago.

Sales volume in the international segment declined because of the sale of the company’s Brazil operation during the first quarter of fiscal 2015, and weak demand in China. Average sales price decreased due to supply imbalances associated with weak demand in China and currency devaluation in Mexico.

Smith said Tyson expects to close the sale of its Mexico business before the next quarter ends if approved by Mexican antitrust officials.

With regard to China, Smith said Tyson is in holding pattern waiting for any signal that demand has returned. He said an older sow population in China is going to mean less pork in the coming months, which should boost demand for chicken.

LOOK AHEAD
Tyson Foods expects fiscal 2015 sales to reach $41 billion based on gains in the chicken and prepared food segments. Smith said beef and pork the segments should also recover in the back half of this year.

“The economics are better for spending than they have been in several years. We will be looking to promote more branded products that have higher margins. The restaurant sector is also showing growth with traffic up 3%,” the company noted.

Smith reiterated annual guidance of $3.30 to 3.40 adjusted earnings per share, noting that it was conservative given the synergies projected. Smith said Tyson would be reinvesting some of the savings into a few brands that have lost market share in an attempt to regain share and revive sales. 

The top priority after overall sales growth is to reduce debt. Chief Financial Officer Dennis Leatherby said with free cash, the company will continue to pay down its debt to two times EBIDTA earnings to ensure a sounder balance sheet in keeping with its “investment grade” credit rating.

Changes continue at Walmart U.S. with CEO Greg Foran shaking up the status quo as part of a larger effort to streamline the reporting bureaucracy and improve store sales.

On Friday (May 1)  Foran and his chief operating officer Judith McKenna announced major shifts in personnel which include Mike Moore, who has been over the Neighborhood Market stores for just 11 months. Moore will move from his leadership over 613 Neighborhood Markets to the new executive vice president for more than 3,400 supercenter locations across the U.S. 

Last year Moore assembled an oversight team for the growing Neighborhood Market division which had previously run under the supercenter management. Moore felt this growing format needed its own team of executives which he assembled in July of 2014. 

With Moore stepping away from the Neighborhood Market team, Julie Murphy, who was the former executive vice president over Wal-Mart’s western division, will now assume those duties over small formats.

Moore previously oversaw for almost four years all operations in Wal-Mart’s central division. Prior to that he spent a year as senior vice president over the retailer’s general merchandise division. Moore joined Wal-Mart in 2005 and spent five years as a senior vice president over the western division.

The personnel change was not the only issue discussed in the internal memo sent by Foran and McKenna to Wal-Mart U.S. employees on Friday. In keeping with Foran’s game plan to simplify processes, the retailer eliminated an executive level which formerly supervised the West and East divisions of the company. 

With Murphy leaving her duties over the West to takeover Neighborhood Markets, Joaquin Gonzales Varela who held the similar post over the Eastern division has left the company. Rather than promote leaders up to those vacancies Foran opted to eliminate that level of oversight. The entire U.S. operation will now report directly to McKenna. 

This closely resembles what Foran did with the merchandising division a few months ago. All merchandising now reports directly to him. 

Retail analyst Walter Loeb, president of Loeb Associates, said direct reporting will allow for more initiatives and flexibility in the company. 

“It is a good move for the future growth of the divisions. I believe that it is likely that more innovative ideals will be tested with the elimination of the intermediary layer created by having a management level overseeing the two geographic divisions. I also believe that the company is returning to its heritage and empowers its store management to respond to local demands,” Loeb notes in a Forbes blog. 

Following are other announced personnel moves this year.
• Pam Kohn, executive vice president of Walmart Realty, left the company. 

• J.P. Suarez, promoted to executive vice president of Walmart Realty, will report to McKenna

• John Aden, executive vice president of innovation, left the company.

• Greg Hall, senior vice president of hardlines was named senior vice president of entertainment at Walmart U.S., reporting to Andy Barron. (Hardlines include home furnishings, electronics, jewelry, and sports equipment.)

• Terry Price was hired to assume senior vice president of hardlines.

• Jane Ewing, senior vice president, will lead “Next Generation Stock-up” team.

• Jeff McAllister, senior vice president, will lead “Next Generation Supply Chain” team.

• Latriece Watkins, senior buyer for snacks and beverages, will lead “Ways of Working” team.

• Jack Sinclair, senior vice president for Walmart U.S. Grocery, left the company March. 20.

• Tony Airoso, became senior vice president of global food sourcing. He is based in California.

• Chuck Tilmon, became vice president of fresh charter initiatives, which focuses on improved performance in fresh merchandise.

• Scott Neal assumed the new role of meat czar, a position created under Foran.

• Shawn Baldwin became senior vice president of fresh foods, a job also created by Foran.

• Jack Pestello became senior vice president of private brands, a job also created by Foran.

Arkansas tax collections are up $172 million during the first 10 months of the fiscal year. That 3.3% gain over the same period in the previous fiscal year comes courtesy of slightly better than expected income tax revenue and smaller tax refunds.

Gross revenue between July 2014 and April was $5.379 billion, up 3.3% compared to the same period in the previous fiscal year. The amount is also 2.5% above the budget forecast, according to the report issued Monday (May 4) by the Arkansas Department of Finance and Administration.

Individual income tax collections for the first 10 months of the fiscal year totaled $2.71 billion, up 3.4% from last year and 1.8% above the budget forecast. Year-to-date sales and use tax collections were $1.849 billion, up 2.1% compared to last year and 1% above the budget forecast. Income taxes and the sales and use tax collections are the two primary sources of state revenue.

Year-to-date income tax refunds total $460.8 million, which is up 2% compared to last year but 3% below the forecast.

Corporate income tax revenue for the first 10 months is $404.1 million, up 10.1% compared to the same period in the previous fiscal year, and up 16.8% over the budget forecast.

STRONG APRIL COLLECTIONS
Revenue reported in the April report was $80.2 million, up 7.6% compared compared to April 2014, and up 10.1% above the forecast.

“Results in April, the largest collection month of the year, were above forecast in all major categories of gross collections. In addition, refunds in both Individual and Corporate Income tax were less than expected,” according to John Shelnutt, head of the Department of Finance and Administration’s Economic (DFA) Analysis & Tax Research division. “Individual Income tax collections contributed $41.9 million above forecast in April, as tax filings with payments grew by double-digit amounts compared to the prior year. The gain was partly offset by a decrease in Withholding tax, reflecting the shifts in payroll withholding rates identified in recent months.”

Individual income tax revenue in April was $510.1 million, up 9.3% compared to April 2014 and up 8.9% over the budget forecast. Sales and use tax revenue during the month was $190 million, up 4% and up 3% over the budget forecast.

Shelnutt said the sales and use tax gain was “part of a rebound effect from weather-related declines in the prior month.”

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2014 - April 2015: $43.1 million
July 2013 - April 2014: $41.9 million

Games of skill
July 2014 - April 2015: $38.2 million
July 2013 - April 2014: $32.5 million

Tobacco
July 2014 - April 2015: $182 million
July 2013 - April 2014: $181.7 million

Insurance
July 2014 - April 2015: $67.4 million
July 2013 - April 2014: $67.3 million

COLLECTIONS HISTORY

Tax collections during fiscal year 2014 (July 2013-June 2014) totaled $6.242 billion, up 0.5% above the previous fiscal year and up just 0.2% compared to budget estimates. The year marked the fourth consecutive year of revenue increases. The fiscal year ended with a budget surplus of $78.7 million.

Tax collections during fiscal year 2013 (January 2012-January 2013) totaled $6.214 billion, up 4.9% above the previous fiscal year and up 2.5% compared to budget estimates. One result of the gains was a budget surplus of $299.5 million.

Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the January 2010-January 2011 period. State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period.

The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.

Cole Hollowell has been named branch manager of the new Fayetteville branch of First National Bank of NWA, and Holly Wheeler has joined as a vice president and lender at the new branch.

The new Fayetteville branch, located at 2638 E Joyce Blvd., opened on Dec. 1, 2014. FNBNWA will begin construction on a Bentonville branch in 2015.

Wheeler has banking experience in the Fayetteville, Rogers and Fort Smith markets including consumer, mortgage and commercial lending in addition to private wealth management. She serves on the Junior League of NWA and is a graduate of the University of Arkansas and Leadership Fayetteville.

“I am very pleased to announce that Holly has joined our team. Having worked with her during part of her 14 year banking career, I know that she brings a passion for taking care of customers and making banking easy which seems like a perfect fit for our FNBNWA culture,” Rob Husong, regional president, said in a statement.

Hollowell’s new role will include business development for the branch in addition to daily management of the Fayetteville retail team. 

“Cole is a great addition to our Fayetteville team. He’s a Washington County native and has proven to be a solid leader with a strong sales background,” Husong said. “I know he will bring a lot of energy and focus as we continue to grow in the Washington County market.”

First quarter net income for Van Buren-based USA Truck was $1.116 million, a big improvement over the $1.589 million loss in the first quarter of 2014, and the 10th consecutive quarter in which the once-troubled trucking firm improved its financial performance.

Total revenue in the quarter reached $132.887 million, down 8.6% compared to the $145.489 million in the first quarter of 2014. Most of the revenue decline was the result of a more than $10 million reduction in fuel surcharge revenue brought about by lower diesel fuel prices.

The first quarter report follows a financial turnaround in 2014. Net income in all of 2014 was $6.033 million, a more than $15 million swing from the $9.11 million loss in 2014. The swing ended five consecutive years of losses. Prior to 2014, the company would post five consecutive years of losses that totaled almost $48 million – wiping out the $45.76 million in net income earned between 2001 and 2008.

“We extended our track record to 10 consecutive quarters of year-over-year financial improvement and turned in a profitable first quarter for the first time since 2007. This quarter’s results reflect positive contributions from both our Trucking segment and our SCS segment, once again demonstrating the benefits of USA Truck’s integrated service offerings,” Interim Chief Operating Officer Thomas Glaser said in the earnings report.

It was announced April 6 that CEO John Simone is on indefinite leave to battle a “serious medical condition.”

A big help in the quarter was the swing on expenses from lower fuel prices and ongoing equipment upgrades and route changes that created a 4.8% improvement in miles per gallon. The fuel expense for the quarter was $17.978 million, well below the $33.003 million in the 2014 quarter.

Operating income in the company’s trucking division was $600,000 in the quarter, better than the operating loss of $6.1 million in the first quarter of 2014. Revenue per active truck exceeded $3,000 for the fifth straight quarter, with an 8.15% rate increase per loaded mile. Revenue per seated tractor was $3,190, better than the $3,027 in the first quarter of 2014.

However, the top line and bottom line numbers in the segment were held back by an inability of the company to hire enough drivers to handle the demand.

“Overall freight volume for the quarter was impacted by a lower seated truck count, reflecting the ongoing industry driver shortage. To support asset utilization during the quarter, we accelerated plans to dispose of older tractors. Additionally, we expect to implement a significant increase in driver pay on June 1,” Glaser said in the report.

The company reported an average of 1,988 seated tractors – truck with drivers – in teh quarter, down from a 2,061 average during the first quarter of 2014.

Despite the challenges, the company’s trucking segment operating ratio was 99.2, compared to 107.6 in the first quarter of 2014. The ratio, a key metric in the trucking industry, shows that the company spent 99.2 cents for every dollar it earned.

Operating income in USA Truck’s growing Strategic Capacity Solutions – a logistics and brokerage business – was $2.976 million in the quarter, down from $5.077 million in the 2014 quarter. Revenue during the quarter for SCS was $38.671 million, below the $45.252 million in the 2014 quarter.

“Revenue was impacted by the softer spot market during the first quarter of 2015, compared to the uniquely strong spot market created by the harsh winter weather in the prior year,” the company noted.

USA Truck execs have said growth in the SCS segment is important to diversifying the revenue stream. The SCS revenue was 29.1% of total company revenue in the first quarter, down slightly from 29.7% in all of 2014, and better than the 24.6% in 2013.

And according to the company’s report, it is moving toward reducing its debt load by $11.3 million in the quarter.

“We also realized a $13.9 million increase in cash flow from operations, reflecting improved profitability, working capital management and enhanced operational effectiveness. We believe our sustainable profitability, combined with approximately $100 million of available borrowing capacity under our revolving line of credit at March 31, afford us significant financial flexibility as we execute on our strategy,” noted Chief Financial Officer Michael Borrows.

Shares of USA Truck (NASDAQ: USAK) closed Monday at $25.41. During the past 52 weeks the share price has ranged from a $32.14 high to a $13.90 low.

A new medical clinic to serve low income or uninsured families will open in August on West Martin Luther King Jr. Boulevard to serve residents in the southwestern Fayetteville and Washington County.

Community Clinic recently received a $585,000 grant from Endeavor Foundation to develop the clinic which will offer primary care, behavioral health and general health conditions, said Kathy Grisham, director of Community Clinic.

Community Clinic is a federally qualified Health Center with 12 locations in Northwest Arkansas. Its mission is to address the needs of their community near their home with clinics in Springdale, Rogers and Siloam Springs, dental clinics in Springdale and Rogers, and school-based health centers in Springdale, Fayetteville, Prairie Grove, Lincoln and Siloam Springs. Services at its clinics include preventive care, chronic disease management, prenatal care, women’s health, pediatric services and dental care.

The clinic will be located in the shopping center behind Aldi’s grocery store on West Martin Luther King Jr. Boulevard. It will feature 12 exam rooms, a behavioral health office, a lab and general amenities to support up to 6,200 patients annually, when fully operational, according to a news release announcing the grant.

Grisham said the new clinic would be staffed with a pediatrician, a general practice physician and a registered nurse practitioner. The projected patient load in the first year is 3,300 patients. About 1,600 people living in that area already are patients at another Community Clinic.

“It’s bittersweet,” Grisham said of the new clinic. “There’s still a huge need,” as indicated by the need for another clinic for low income or impoverished families in the region.

The fees charged for health services are assessed on a sliding scale based on the ability of the patient to pay if they are at or below 200% of the federal poverty level. Services offered to children in the school clinics are free.

Grisham said the clinic first looked at the site as a possible location for a clinic about four years ago. A study of updated census tracts indicated the need for a clinic to serve the population in the southwest.

A second catalyst occurred in recent months when the clinic received a request from a pediatric practice to take over an additional patient load of 3,000 patients on Medicaid. She did not identify the pediatric practice. A second request from the same practice was made to Community Clinic, asking their doctors to take over care of newborns. Community Clinic pediatricians have seen 200 newborns in the first three months from Washington Regional Medical Center and Willow Creek Hospital, Grisham said.

Endeavor Foundation is a grant-making organization governed by a board of business, civic and community leaders in Northwest Arkansas. Over the past 15 years, the foundation has made grants totaling more than $93 million to help find solutions to create a thriving and vibrant quality of life in Northwest Arkansas.

Anita Scism, president and CEO of Endeavor, said the foundation has supported Community Clinic for more than a decade.

“We continue to be impressed by the number of people they serve and the quality of affordable care that are able to offer to those most in need,” Scism said. “We commend Community Clinic for offering an alternative to emergency room visits an providing an ongoing continuum of care for thousands of people.”

The foundation also announced to a $411,000 planning grant to Mercy Clinic Northwest Arkansas to develop a holistic regional approach to ensuring that the physical health, mental health and basic needs of school-aged children. About 23% of children in Northwest Arkansas live below the poverty threshold and more than half of the region’s homeless population is under the age of 18.

“It is very difficult to teach a child who is hungry, sick, chronically absent from school or suffering from ongoing behavioral issues,” said Rogers School Superintendent Janie Darr. “This concept holds great promise to help us resolve  some of the biggest issues facing kids outside the classroom so that we can refocus our attention on what we do best, teaching them inside the classroom.”

From posh multifamily apartments to bargain fashions and grocery alternatives, outside investment continues to pour into Benton and Washington counties in 2015. And with good reason, according to David Erstine and Clinton Bennett of CBRE in Fayetteville.

Their latest report indicates about 50 new commercial building projects underway from Fayetteville to Bentonville and the three cities in between. That’s on top of the 26 new commercial projects completed since the last CBRE report issued in September 2014. Erstine told The City Wire at that time that Northwest Arkansas was “selling itself” to investors thanks in part to a plethora of infrastructure projects to facilitate the region’s growing population.

“Nearly 50% of Arkansas’ population growth since 2000 has settled in Benton and Washington counties,” the report stated.

PAVING THE WAY
The report also draws attention to what is nearly $750 million in highway construction and road improvements in the two-county area that was recently completed, underway or planned. State highway officials recently told The City Wire that about $700 million of that road infrastructure is along the Interstate 49 spine between Fayetteville and North Bentonville and associated feeder roads.

Erstine said job and population projections for the region indicate continued highway construction zones are inevitable. He said businesses and outside investors often prefer for increased infrastructure to be in place or at lease planned. 

“Most do not like to bet on under-developed areas,” Erstine added.

Erstine explained that North College in Fayetteville shows daily traffic counts rose by 800 cars between 2007 and 2014, according to the Arkansas Highway Transportation Department.

“During the last 12 years, there have been typical fluctuations of 10% or less depending on the year. This helps support that North College has continued to be a viable retail corridor over the years ... the area just needed the support of a major retailer, like Whole Foods, to kick-start a redevelopment movement,” Erstine said.

Conversely in the Pinnacle Hills area of western Rogers, the early developments like Village on the Creeks were ahead of the infrastructure catching up. He said in that region infrastructure has mostly stayed ahead of commercial development thanks to the foresight of city leaders and area land developers. 

After retail made its grand splash in this region in 2006 other sectors began to follow with office buildings and residential. Erstine said the burgeoning single family housing development in western Rogers is also supportive of the prediction that more retail will flow into Northwest Arkansas.

CITY INVOLVEMENT
The CBRE agents said city involvement has been huge in recent years. From the $6.3 million Fayetteville flyover to the $23 million Don Tyson interchange in Springdale, the investments have helped open up those areas for future development.

Erstine said the completion of the Fayetteville flyover was important to Whole Foods’ decision to build on North College Avenue. That $2.55 million project is expected to open this summer. Whole Foods will anchor a $10 million shopping center and has also drawn Raisin Cain Chicken, a New Orleans-based restaurant building next door.

Moving north up I-49 it’s clear investors are showing more confidence in Springdale. Wal-Mart’s investment’s are substantial with the new supercenter, fueling station and mini convenience store at Elm Springs Road. Also, a new Neighborhood Market is set to open May 6 at the Don Tyson interchange, and Sam’s Club will soon break ground near the U.S. 412 interchange.

Springdale Mayor Doug Sprouse has said the investments are already boosting the city’s sales tax revenue. Through April the city’s sales tax revenue is up 14.3% over the same period last year.

The city is also widening 56th Street to four lanes from Don Tyson, west of I-49 past the Arvest Ballpark to U.S. 412 and theHar-Ber area. This project is expected to cost about $15 million. The mayor said the work is slated for completion by the end of the year and will provide better access to the ballpark area and beyond when the second phase is completed. It will provide an alternative route to the planned Sam’s Club which is to be located along U.S. 412 or Sunset Street. Sam’s Furniture also is relocating to a new facility along 58th Street between Sunset and Elm Springs Road with visible frontage along I-49. 

Sprouse said the city will also widen the interchange at Elm Springs Road later this year to help with heavy traffic flow. Arvest Bank has planned a new branch, Whataburger has staked-out a spot and McDonald’s recently completed its new restaurant there.

ROGERS RALLY
North in Benton County there are several large projects underway. One of the most active in new building since the last CBRE report has been the Pleasant Grove Road and Pleasant Crossing area. Cavender’s moved from Springdale to a new $2.55 million building in Rogers at the Pleasant Grove road exit. The Pleasant Crossing retail trip was recently completed and about 90% leased with tenants like Moe’s Southwest Grill, Papa Murphy’s Pizza, Snap Fitness, SuperCuts, A-Loft Nail & Spa and Mattress Firm. 

Work has begun on a new Burlington Coat Factory store located across the street at 4325 S. Pleasant Crossing Blvd. The city of Rogers issued the building permit with a value of $3.6 million on April 28. Construction crews are at work on the 60,000 square foot store that will bring up to 100 new jobs to the city. 
 
One mile north along I-49 the largest commercial project in the region is visible along the skyline. Hunt Ventures’ 10-story 225,000 square foot Class A office building is under construction at the corner of Pinnacle Hills Parkway and JB Hunt Drive near the Walmart AMP in Rogers. This project comes on the heels of two other large office buildings constructed in the past few years and operated by Hunt Ventures. Last year the group finished a 60,000 square foot office building near the Walmart AMP.

Other commercial projects underway in the Pinnacle Hills area of Rogers include Promenade Point Apartments, Pei Wei and Uncle Maddio’s Pizza. 

WALMART SHOT
In Bentonville near the I-49 corridor, the Walmart Neighborhood Market and fueling station recently opened on Central Avenue and Martin Luther King Boulevard. The retailer has a grocery store planned for downtown Bentonville and one along North Walton Boulevard, close to exit 93 on I-49. This comes on top of the Pick-up Grocery facility completed near South Walton Boulevard since the last report.

Other commercial projects underway in the city near I-49 include Landers McClarty dealership on Moberly Lane, Wal-Mart supplier offices for Campbell and Jarden, and the Scott Family Amazeum, a $28 million children’s discovery museum located on J Street at the entrance to Crystal Bridges Museum of American Art. 

A $53 million road improvement and new interchange known as the 8th Street extension  is part of the $750 million in road infrastructure in the region and slated for construction next year. This project has been nine years in the works but the city of Bentonville, the state and Wal-Mart Stores Inc. are in the midst of extending 8th Street from Walton Boulevard with five lanes all the way to Interstate 49 with an interchange located north of Exit 86 and NorthWest Arkansas Community College.

Bentonville Mayor Bob McCaslin said Wal-Mart is kicking in $15 million toward the work, and another $32 million came from a federal earmark in 2005 gleaned from then U.S. Rep. John Boozman, R-Rogers. The city will cover the balance.

Bennett and Erstine said they expect commercial development to continue at present-day levels for the near future. 
 
“While historically low interest rates have certainly helped, most of what we are seeing would have occurred regardless of a moderate increase in interest rates as several projects are cash intensive. However, with the local banking community being so competitive, we’ll likely see speculative building increase,” Erstine said. 
 
CBRE recently reported multifamily vacancy rates between 1.5% and 2% in Rogers and Bentonville. With recent job growth announcements and population growth projections, Erstine and Bennett also expect to see more multifamily housing in Benton County in the next 18 to 24 months.

Fayetteville-based Skosay, a customer engagement technology startup, was awarded $100,000 from the Arkansas Science & Technology Authority (ASTA) to further develop its technology. The local tech startup enhances the customer experience by providing consumers the ability to give feedback to businesses in a private, two-way messaging platform.

“We’re very honored to receive this Technology Development Program investment amount from the ASTA,” said Justin Urso, CEO and cofounder of Skosay. “We plan to use the investment to help further develop our native applications for iOS and Android devices, as well as work on an exclusive analytics dashboard for our clients.”

The goal of ASTA’s Technology Development Program is to assist in commercializing new technology-based products and processes. Recipients must have a well-defined project plan showing progression from idea, to prototype, to production, the release notes.

“Skosay’s technology is changing the way we look at physical comment cards, 1-800 numbers, and meaningful engagement between businesses and its customers,” said Steve Stanley, Ph.D., VP of Commercialization of ASTA. “This tech startup has aspects similar to those of Silicon Valley’s, but its vision and strategy has what it takes to truly make an impact on not only Arkansas’ economy but also how businesses everywhere will engage with customers.” 

After completing the Ark Challenge, a mentorship-driven accelerator program for technology startups, last summer, Skosay has seen success with several businesses, including XNA Airport, the Northwest Arkansas Regional Airport.

“Customer service and the customer experience is one of our top priorities,” said Kelly Johnson, Airport Director of XNA Airport. “Skosay allows us to gather insightful feedback from our travelers and talk back to them, which is one of the most valuable features of this technology.”

Gary and Jan Oftedahl have owned a photography studio in downtown Rogers for more than 30 years. A dozen years ago, they moved to an apartment above their business.

“We like it because we just have to walk downstairs to go to work,” Gary Oftedahl said. “Walking up the stairs is good exercise, but you give up a few things like a garage to park the car.”

There are clear indications in this city of more than 60,000 residents that a renewed interest in redevelopment of the downtown area is growing. The city is spending nearly $450,000 for an economic development plan for downtown. And it is spending $5 million on redevelopment and expansion of green space at Lake Atalanta, on the eastern edge of downtown.

Downtown living is also catching on, including Mayor Greg Hines, who at 39, wants his two daughters to experience what Rogers was like when he was growing up there. Hines is building a new home in the area defined as downtown, running from the lake on the east to Eighth Street or 13th Street, on the west and from Olrich or New Hope Roads on the south to Arkansas 102 on the north.

“It’s not really defined,” Hines said of the downtown boundaries. “The footprint can be as big or small, initially. You don’t want the scope to be so large that a monumental project looks small.”

WORKING ON A PLAN
Gateway Planning Group of Dallas is developing the downtown plan. The plan will probably be rolled late this summer, Hines said.

“What I wanted was a real economic development plan to show a potential develop what they can do for a return on their investment.”

“The buzz has started,” Hines said, over coffee at Iron Horse Coffee Company, an early investor in downtown growth. “A number of real estate transactions have occurred or are pending. There are at least four different transactions in the contracts in the last two months. Developers are getting ahead of the curve and tied to a specific location in anticipation of what might happen.”

Discussions about one particular building are ongoing. That is the city’s interest in the former Morning News building on West Second Street. Hines said the city’s interest stems from the need for expansion of the Rogers Historical Museum, directly across the building from the Morning News building. The building was constructed in 1947 as the home for the Newt Hailey Motor Co., a Ford dealership.

The city has been in talks with representatives of Northwest Arkansas Media, which owns the building, but an agreement has not been reached.

“It could be restored to look as it did as a car dealership and we would be repurposing a structure downtown,” Hines said.

Other projects are in various stages of discussion or planning but are not ready to be discussed. Later this year, a new Walmart Neighborhood Market will open on the southwest corner of Eighth and Walnut streets.

Still there are plenty of amenities in the downtown area, said Jan Oftedahl.

“I recently counted a half dozen grocery stores within walking distance,” she said, not to mention bars and restaurants.

DOWNTOWN LIVING
The city also is conducting a zoning review of downtown residential areas to drive more downtown residential living. Some are starting to look at the downtown area as a residential area, including Hines’ parents who recently moved from a home in Pinnacle to a downtown home one block south and one block west from Hines’ new home.

Hines said he wants to be able to walk or ride his bicycle to downtown events like the Rogers Farmers Market.

“It’s important to have friends of all ages and you’re not as likely to have that in a subdivision. Downtown, there are folks of all age groups from the 70s to the millennials,” he said.

He expects a working draft of Gateway’s proposals in the next month or so, at which time the city council and others will hold work sessions with builders and others who have expressed interest, he said.

The idea of living downtown was appealing to the Oftedahls, who claim not to be too interested in yard work. Today, they can’t imagine living anywhere else, said Jan Oftedahl. Their apartment boasts 2,500 square feet and 16 8-foot tall windows. She is not sure the couple could return to a neighborhood after living downtown all these years. Like others, she is excited to hear what the Gateway study and plans will reveal.

‘ECLECTIC OPPORTUNITIES’
Another strong advocate for downtown growth and development is architect John Mack. He has worked and lived within four to five blocks of his downtown office since establishing his practice in Rogers in 1972. He too looks forward to the new plan, noting zoning issues will need to be addressed to attract more businesses and people to the area. Walkability will be an important issue as well as the connection between Lake Atalanta and downtown.

Another area Mack hopes will be addressed is the northern entryway into the downtown from U.S. 62 on the north side along Second Street.

“There are eclectic opportunities with contemporary elements with historical elements,” Mack said. “There are a lot of different opportunities. The diversity of what downtown can be is exciting to create a sense of place.”

Troy Walker is trying to tap into the eclectic opportunity. He is the operator of Trickdilly, a food truck he parks on Walnut in downtown Rogers just outside of Brick Street Brews. He hits the spot on Friday and Saturday evenings.

"Rogers has been really good to us. We do more business typically on Fridays as folks are getting off work than most Saturdays. But being here in front of the tap tasting bar we stay pretty busy from their customers," Walker said. "We park in downtown Bentonville for the lunch traffic each day, but there are far more trucks per capita. ... The city of Rogers has been so easy to work with. They gave us a six-month permit and we are about the only truck parked here downtown in the evenings."

Walker said having the local tap bars open in the evenings helps bring more nightlife to downtown Rogers, but he's looking forward to the day when there are more residential options in the brick street area.

Brick Street Brews opened in April 2014 and features locally brewed craft beers and wines. Owners Rick and Naomi McLeod, Jim and Dana Mather, Lynn Atkins and Mike Rooney, said they sought out a location in downtown Rogers for the brew tasting room and beer garden to give local residents the opportunity to enjoy many of the region's craft beers without leaving home. They see Rogers as a progressive town that have never forsaken its roots.

Arkansas real estate agents were busy in March. Home sales in Arkansas’ four largest markets rose an impressive 15.33% in March after being up 2.4% in February and down more than 2% in January. For the first quarter of the year, home sales in the four markets are up a healthy 7.83%.

First quarter home sales totaled 4,639, up from 4,302 in the same period of 2014, and up 11.09% compared to the same period in 2013. For the first quarter, home sales are up 5.33% in central Arkansas, up 7.91% in the Fort Smith metro, up 8.28% in the Jonesboro metro and up 11.22% in Northwest Arkansas.

The total value of first quarter home sales in the four markets was $768.563 million, up 16.34% compared to the same period in 2014 and up 15.76% compared to the 2013 period.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within its four largest metro areas — Central Arkansas, the 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.

Helping to boost the sales value more than 16% in the quarter is an uptick in average sales price. The average price for homes in the four markets was $165,674 in the first quarter, up 7.89% compared to the first three months of 2014, and up 4.21% compared to the same period in 2013.

The only downside to the March report was days on market. The average days on market during the first quarter was 105.89, up slightly from the 105.21 in the same period of 2014, and up from 104.91 in the same period of 2013.

There were 21,447 homes sold in Arkansas’ four largest markets in 2014, up 3.8% over 2013 and up 17.33% over 2012. The total value of home sold in the four markets during 2014 was $3.554 billion, up 3.24% over 2013 and up 18.97% compared to 2012. Gains in the number of homes sold in 2014 certainly varied by market. Sales totaled 9,904 in central Arkansas, up 2.32%. In the Fort Smith region, which has an economy not yet on stable footing, home sales were up a surprising 14.33% for the year.

MARCH NUMBERS
March home sales in the four markets totaled 1,918, up 15.33% compared to March 2014, and up 12.16% compared to March 2013. The average price per home in the four markets during March was $169,856, up 7.3% compared to March 2014, and up 4.31% compared to March 2013. The total value of sales in the four markets during March was $325.783 million, up 23.76% compared to March 2014 and up 17% compared to March 2013.

There were 882 homes sold in central Arkansas, up 16.51% compared to March 2014, and up 9.7% compared to March 2013.

March home sales totaled 667 in Northwest Arkansas, up 14.02% compared to March 2014, and up 7.75% compared to March 2013.

Jonesboro area home sales totaled 197, up 24.68% compared to March 2014 and up 34.01% compared to March 2013.

In the Fort Smith area, home sales totaled 172, up 5.52% compared to March 2014, and up 22.86% compared to March 2013.

Sales value gains were also impressive in all four markets. The total value of the sales during March were up 22..75% in central Arkansas, up 23.59% in Northwest Arkansas, up 40.22% in the Jonesboro area, and up 16.45% in the Fort Smith region.

THE REGIONAL PICTURE: January-March 2015
Central Arkansas — Home sales
Jan.-March 2015: 2,136
Jan.-March 2014: 2,028
Jan.-March 2013: 1,991

Fort Smith area — Home sales
Jan.-March 2015: 423
Jan.-March 2014: 392
Jan.-March 2013: 333

Jonesboro area — Home sales
Jan.-March 2015: 484
Jan.-March 2014: 447
Jan.-March 2013: 392

Northwest Arkansas — Home sales
Jan.-March 2015: 1,596
Jan.-March 2014: 1,435
Jan.-March 2013: 1,460

The top five counties in terms of January-March 2015 home sales:
Benton — 976, up compared to 903 in January-March 2014
Pulaski — 967, up compared to 919 in January-March 2014 
Washington — 620, up compared to 532 in January-March 2014
Craighead — 395, up compared to 346 in January-March 2014
Saline — 353, up compared to 345 in January-March 2014

Link here for a PDF document of the March 2015 data.

SIGN OF ECONOMIC RECOVERY
“What a month! Everything looks really good from the units to the prices,” said Kathy Deck, director of the Center for Economic Research at the University of Arkansas.

Deck said the improved housing market report for March is indicative of the strength of Arkansas’ ongoing economic recovery – a recovery that began in 2009 but has only recently gained noticeable momentum.

One of the signs that the economy is improving, she said, is that unemployment in the state has improved. According to the Arkansas Department of Workforce Services, the unemployment rate in Arkansas improved to 5.6% from 6.4% a year ago. In real numbers, that means 1.26 million Arkansans have jobs in March 2015 compared to 1.21 million workers a year ago.
 
Deck said one thing to watch is mortgage rates, which have stayed low for a few years because of the Federal Reserve’s policy of keeping rates low for the purpose of strengthening the economy. If the Fed determines the economy is strong enough to stand on its own, then it may raise short term interest rates and those could cause mortgage rates to increase as a result.
 
According to Mortgage-X, the average interest rate on a 30-year mortgage at the first of May was 3.5%. Of the mortgage bankers polled around the nation by that site, 32.1% believe mortgage rates will remain unchanged over the next 90 days, while 42.9% believe rates will rise slightly over the next three months.
 
Deck said one danger about the current recovery that could impact sales in the future is a sense the recovery is tenuous. Wages have not increased significantly and that worries some workers.

Sach Oliver, partner in the Bailey and Oliver Law Firm in Rogers, was named 2015 Arkansas Trial Lawyer of the Year by the Arkansas Trial Lawyers Association. The award was presented at the 52nd Annual Convention in Eureka Springs on May 1, and is presented to an attorney dedicated to protecting the rights of individuals and the civil justice system.
 
Oliver, 34, becomes the Association’s youngest ever recipient.
 
“I am honored and humbled to be selected by my peers for this award,” said Oliver. “I have a passion for helping people and providing a pathway to justice for them.”
 
Oliver was selected for this award because of a commitment to protecting the most vulnerable Arkansans. He was also lauded for his efforts at securing justice for his clients, and a strong effort to protect the 7th Amendment, the right to a civil jury trial, for all Arkansans. Oliver is also seen as a trailblazer and a leader for the association.

“Sach Oliver has been an invaluable member of the ATLA family for many years. He will work to protect your rights with the zeal of a hungry young advocate out to prove himself, but with sophistication that underscores his remarkable talent. And, the techniques Sach uses to represent his clients are always cutting-edge, and quite advanced compared to what many lawyers in this state do,” said George Wise, the outgoing ATA President.

Oliver and his firm have also helped to raise more than $1 million for charities in Northwest Arkansas. Oliver is an auctioneer and has donated his services to raise money for non-profit organizations such as the Cancer Challenge, Washington Regional Hospice, Pathfinders, Juvenile Diabetes, and the Mercy Ball for Mercy Health System.
 
“In anything Sach does, he commits fully,” said Frank Bailey, founding partner of Bailey and Oliver Law Firm. “He has great wisdom beyond his years and freely shares his life and experiences with young people in search of a personal and professional mentor.”
 
Oliver received a bachelor’s degree from Arkansas State University where he attended on a rodeo scholarship. He received his law degree from the University of Arkansas.

Bank of the Ozarks and Bank of the Carolinas Corp. announced that the two banks would merge. Little Rock-based Bank of the Ozarks will acquire the Carolina financial institution for $64.7 million in an all-stock transaction.

Bank of the Carolinas operates eight offices in North Carolina between Charlotte and Winston-Salem. At March 31, 2015, the Carolina group had approximately $363 million of total assets, $279 million of loans and $314 million of deposits.

“We are pleased to announce the acquisition of Bank of the Carolinas, expanding our presence in the northern portion of the Charlotte MSA and providing our initial offices in the Piedmont Triad region of North Carolina,” said George Gleason, Chairman and CEO of Bank of the Ozarks.

“We opened our first North Carolina office in Charlotte in 2001, and subsequently added North Carolina locations through the acquisitions of Woodlands Bank in 2010 and First National Bank of Shelby in 2013 and through de novo branches,” Gleason added. “This acquisition adds eight North Carolina offices, bringing our North Carolina office count to 24. Customers of Bank of the Carolinas will continue to enjoy friendly hometown banking in addition to benefitting from a broader range of financial services.”

Under the terms of the agreement, which has been approved by the boards of directors of both companies, each holder of outstanding shares of common stock of Bank of the Carolinas will receive shares of common stock of Bank of the Ozarks. The number of shares to be issued will be determined based on Bank of the Ozark’s 10 day average closing stock price as of the second business day prior to the closing date, subject to a minimum and maximum price of $29.28 and $48.80, respectively.

The transaction is expected to close in the third quarter of 2015, and will be Bank of the Ozarks’ 13th acquisition since March 2010.

Marti and Kelly Sudduth of Bentonville handed over a $1 million gift to the Walton Art Center’s Expanding Our Future campaign — a $23 million fundraising effort recently announced by the nonprofit.

The Walton Arts Center (WAC)expansion includes an additional 30,000 square feet of space, a new and expanded atrium lobby that connects to Dickson Street, significant renovations and expansion of Starr Theater, expanded space for back of the house technical and theatrical equipment and new administrative offices.

In recognition for their donation, a new event space will be named the Sudduth Garden Room that connects with the existing Walton Arts Center Rose Garden, the release states. 

The Dickson Street renovation is slated for completion by the fall of 2016. Heavy construction of the main lobby and Starr Theater will occur during the off-peak summer months of 2015 and 2016 to minimize the impact on regular programming and ensure the arts center has a full season.
 
“Northwest Arkansas is an amazing place to live, and we believe the Walton Arts Center is a vital part of our community,” said Marti Sudduth. “We are inspired by the spirit of giving we have observed since this became our home six years ago. (This gift) is our way of being part of something that we know will enrich so many people’s lives for many years to come. We hope that many will join us in supporting this effort and make this a reality for all to enjoy."

 
Marti and Kelly Sudduth moved to Northwest Arkansas about six years ago from Tulsa,  to be near their family. They frequently attend shows at Walton Arts Center with their children and grandchildren.
 
“Their lifelong support for education and specifically Walton Arts Center’s educational programing is inspiring and we are so grateful for the impact their transformative gift will make on our community,” said Peter B. Lane, president and CEO of Walton Arts Center.  “Their contribution to the renovation and expansion of the Walton Arts Center greatly moves us toward our goal of providing arts for everyone in Northwest Arkansas.
 

Building permit value totals in Fort Smith, Greenwood and Van Buren are up almost 30% during the first four months of 2015, boosted by several large commercial projects in Fort Smith during the period.

Permit values in the three cities during January-April were $70.088 million, up 29.3% over the $54.205 million in the same period of 2014.

The early 2015 numbers were pushed higher in March when a $22 million permit was issued in Fort Smith for construction of the Arkansas College of Osteopathic Medicine. Located on 27 acres at Chaffee Crossing, the Arkansas College of Osteopathic Medicine is expected to open in the fall of 2016. Obviously, without the osteopathic college permit, the first quarter permit value would have trailed 2014 activity.

Other large Fort Smith commercial projects permitted in the first four months of the year include:
• $3.83 million for a Walmart Neighborhood Market at 8600 U.S. 71 S.;
• $2 million for the first phase of the Greg Smith River Walk along the Arkansas River and beginning near downtown Fort Smith;
• $1.6 million for work on the River Valley Sports Complex at Chaffee Crossing; and
• $1.522 million for work at Sparks Health System
• $1.4 million for work at Mercy Fort Smith.

FORT SMITH PERMIT PICTURE
The city issued permits valued at $68.096 million in the January-April period, up 28.9% compared to the same period in 2014.

However, April permit values were weak compared to April 2014. The city issued 183 permits for a total value of $12.125 million during the month, well below the 22 permits valued at $21.748 million in April 2014.

Permit values for new home construction in the city totaled $2.065 million in April, below the $3.688 million in April 2014. But the first three months of the year were busy for new homebuilders. For the first four months of 2015, new home permit values total $12.802 million, up almost 19% compared to the $10.763 million in the same period of 2014.

New commercial construction also was off the pace in April. Permits during the month totaled $4.983 million, down from $11.869 million in April 2014.

GREENWOOD, VAN BUREN PERMITS
Building permit values in Greenwood totaled $416,982 on four permits in April, below the $746,320 on eight permits in April 2014. Permit values during the first four months of the year total $3.621 million, well ahead of the $1.767 million during the same period of 2014.

A majority of the permit values in Greenwood are for residential construction.

Van Buren permit values totaled $1.574 million in April thanks to $1.468 million permitted for residential construction – new and remodel – in the city. The April total is much higher than the $667,400 in April 2014 permit values.

But Van Buren permit values for the first four months of 2015 are down more than 96% compared to the same period of 2014. A $4 million Legacy Heights addition and $3.567 million Van Buren police station were permitted in the first quarter of 2014, which makes for the tough comparison.

For the first four months, Van Buren permit values total $5.308 million, down from the $10.429 million in the same period of 2014.

2014 BUILDING PERMIT VALUE TOTALS
Building permit value gains in Fort Smith and Van Buren helped push regional permit values up almost 6% in 2014 compared to 2013. Several taxpayer-funding projects – water park, police station and schools – helped boost the 2014 regional numbers.

For the year, Fort Smith permit values were up 6.61% and Van Buren permit values were up an impressive 85.7%. Greenwood had a 4.4% decline in permit values compared to 2013.

Fort Smith
2014: $189.445 million
2013: $177.687 million
2012: $136.248 million

Greenwood
2014: $7.918 million
2013: $8.283 million
2012: $8.609 million

Van Buren
2014: $16.813 million
2013: $9.049 million
2012: $9.983 million

Combined total for the three cities
2014: $214.176 million
2013: $195.019 million
2012: $154.840 million

A skilled workforce shortage is a major issue facing many employers in the region, state and nation. NorthWest Arkansas Community College and Northwest Technical Institute are trying to reduce education bureaucracy and provide a “one track system” for their students while also addressing workforce training capacity constraints.

NWACC President Dr. Evelyn Jorgenson and NTI President Dr. Blake Robertson signed a new partnership agreement in Bentonville on Wednesday (May 6) that outlines how up to 30 hours of credit earned in career and technical areas at NTI can be applied toward an associate’s degree at NWACC.

Robertson said educators across the state have for year talked about the workforce track or the academic track but with this reinforced agreement now creates a one-track system for those students who start out wanting employable job skills. He said they can get that workforce training at NTI, but while working some decide to seek college degrees which are sometimes needed for advancement opportunities.

Jorgenson said NWACC continues to look for opportunities to partner with other institutions accepting credits that can be applied toward traditional degrees because it is the best way to serve a diverse group of students seeking higher education. NWACC already has signed similar agreements with Ecclesia College in Springdale and the University of Arkansas. A Missouri Southern University agreement signing slated for later this week.

“The average age of our students is 26, so we are accustomed to serving a wide range of student needs which is an important function of the community college. We also work with the Northwest Arkansas Council to address workforce training needs and curricula development that our manufacturers and other large employers want,” she said.

Robertson said NTI does the same, and works with area chambers of commerce who are in touch with what local manufacturers need to ensure they a skilled workforce.

“We know if manufacturers can’t find the skilled workers they need to sustain those operations then their doors will close,” Robertson said.

A recent survey conducted by the area’s five largest chamber of commerce and the Northwest Arkansas Council found workforce issues were among the most voiced by 487 employers in the two-county area. Mike Harvey, an economist with the Council, said one eye-opening metric unveiled by the smaller employers this year as well as large manufacturers is the shortage of a qualified workforce to many entry-level positions going unfilled. Harvey said the shortage has been well-documented but this survey found that needs were more deficient at the community level than the industry at large.

“We have to do a better job with K-12 education offering more vocational training. There is some good work underway, but more is needed. K-12 is going to be the biggest solution to this problem long term,” Harvey said.

SECONDARY PARTNERSHIP
NTI and NWACC are already working with some area high schools to address the workforce shortfall issues and signed a secondary student agreement on Wednesday to partner in this area.

High school students enrolled in various workforce training programs such as criminal justice, food production service and management, medical dental assisting and certified nursing assistance programs through NTI will get the training at NWACC facilities by NWACC instructors. In exchange NTI will pay NWACC 90% of the funding received from Arkansas Department of Career Education and the tuition paid by area high school students. NTI will keep 10% of the funds.

Robertson said NTI is out of space and unable to add more secondary or post secondary students. He said this agreement with NWACC for the some of the specialized secondary school training is a big help given there also is more demand for post secondary programs in areas such as computer networking that deal with cloud-based technologies, ethical hacking and computerized numeric controller operations.

“We are in talks with Synergy Tech which is located on our campus about merging with NTI. This would give NTI the room it needs to expand its technology-based course offerings. There is more demand than we can service at this time. We have instructors sharing classrooms and must cap enrollment in many of our programs,” Robertson said.

NWACC continues to grow its local footprint but Jorgenson said expanding physically is just part of the solution because ever-changing technology permeates deep into many of the disciplines taught at the college. 

“It’s not enough just to hire the brightest and most qualified teachers because we then must reinforce with ongoing training opportunities so our professors can stay abreast of the latest technology applications being used in their respective fields,” Jorgenson said.

Fort Smith native Beth Clark, an advanced practice nurse, has joined the Cardiology Center at Sparks located inside Sparks Medical Plaza on Dodson Avenue, and Jamie Nash has joined Alma Family Medical Clinic.

Clark will work in the clinic with Drs. Nasser Adjei, Sheharyar Ali, Ayhan Zia, Robert Parris, Tom Williams, and German Kamalov. She will also provide follow-up care for patients in the hospital.  She earned her master’s degree in nursing from the University of Alabama in December. Clark has nursing experience in emergency room and cardiac catheterization lab settings, and was a paramedic for more than 25 years.

Nash, who also is an advanced practice nurse, graduated in December from the University of South Alabama with a master’s degree in nursing. Her undergraduate studies were completed at the University of Arkansas at Fort Smith where she graduated cum laude in 2012. Nash was also named Outstanding Clinician in Nursing and was on the Dean’s List.

Nash worked as a registered nurse for several years in a post-procedural observation unit and a chest pain evaluation unit before going to a labor and delivery Unit. She has experience in family, geriatric and pediatric medicine.

A federal classification upgrade of the Arkansas River from “Connector” to “Corridor” status will raise the river’s visibility in the shipping world and could help bring more federal dollars for river system maintenance and enhancements, said port operator Marty Shell.

The McClellan-Kerr Arkansas River Navigation System (MKARNS) was upgraded under the U.S. Department of Transportation’s America’s Marine Highway Program. According to a press release from the Arkansas Waterways Commission, the upgrade, which the release said was announced Monday by Transportation Secretary Anthony Foxx, places the system in the same category as other major inland waterways and could lead to future port and waterways expansion projects. The Mississippi River is also a marine highway. 

The Arkansas river system is 445 miles long and stretches from the confluence of the Mississippi River to the Port of Catoosa near Tulsa, Okla. The controlled waterway has 18 locks and dams, with 13 in Arkansas and five in Oklahoma. The river also has five ports: Pine Bluff, Little Rock, Fort Smith, Muskogee, Okla., and the Tulsa Port of Catoosa in Oklahoma. 

Marty Shell, owner of Van Buren-based Five Rivers Distribution which operates the port facilities in Van Buren and Fort Smith, said the upgrade is part of an overall effort in recent years to “move our river system forward and leave it in a better state for future generation for jobs, growth, and economic development.” Shell also said the upgrade improves the chance to get federal dollars to deepen the river system to 12 feet. The system is now dredged for a nine-foot depth, although many parts of the river are at 12 feet or more. A deeper channel allows a larger load on barges.

This is the third piece of good news for the MKARNS in recent months. Earlier this year, the U.S. Army Corps of Engineers changed the system’s designation from a moderate-use to a high-use system, the same classification given to the Mississippi and Ohio Rivers. Previously, the Corps had announced that its budget included a $3 million study of the “Three Rivers” area, which is the confluence of the Arkansas, Mississippi and White Rivers. A major flooding event in that area could shut down the system for up to a year. Half of the $3 million is funded by the federal government. State legislators agreed to fund the other half during this year’s legislative session.

The Oklahoma Department of Transportation Waterways division and the Arkansas Waterways Commission partnered to apply for the status upgrade.

"We appreciate the entire Arkansas Congressional delegation who supported this application as well as Oklahoma's entire delegation and Congresswoman Lynn Jenkins in Kansas. We also received support from public and private users of the waterway and the Metropolitan Planning agencies in both Arkansas and Oklahoma,” said Gene Higginbotham, executive director, Arkansas Waterways Commission.

It’s tempting to simply credit an improved national economy for improved finances at the trucking operations of the four publicly held companies based in Arkansas. But that temptation fails to account for labor contract changes, management shifts, auto sales, driver pay, driver shortages, federal regulations, bottlenecks at West Coast ports, energy markets and nasty winter weather. And that’s the short list.

Further complicating the analysis is that Fort Smith-based ArcBest, Lowell-based J.B. Hunt Transport Services, Tontitown-based P.A.M. Transportation and Van Buren-based USA Truck are wholly dissimilar in structure and operations.

ArcBest, through its ABF Freight subsidiary, is in the less-than-truckload sector with an emerging global logistics operation. J.B. Hunt is no longer a trucking company. It’s a logistics/freight solutions company, with its trucking division generating around 6% of total revenue. Despite attempts to diversify its customer base, around 40% of business for P.A.M. Transportation is tied to the U.S. auto industry. Of the four companies, USA Truck is the one that remains more of a common carrier trucking company, although its logistics business has grown in recent years.

Brad Delco, a trucking and transportation industry analyst with Little Rock-based Stephens Inc., said an improving U.S. economy “certainly” helped the four companies, but each company had to make changes unique to their operations to tap into improving economic trends.

ARCBEST (NASDAQ: ARCB)
Two big changes at ArcBest have been the $180 million acquisition of Ohio-based Panther Expedited Services in June 2012, and a new labor contract approved in the summer of 2013 with the International Brotherhood of Teamsters. The deal with Panther helped vault ArcBest into the higher margin logistics sector, and the labor deal is estimated to save the company up to $65 million a year.

The company has posted two consecutive years in the black. Full year net income in 2014 was $46.177 million, up 192% compared to the $15.811 million in 2013, and a wide swing from the $7.7 million loss in 2012. Total revenue during 2014 for the publicly held company (NASDAQ: ARCB) was $2.612 billion, up 13.6% compared to 2013.

As to company’s effort to generate more business from its non-trucking side, so far so good. In 2014, the company’s four non-trucking subsidiaries – Premium, FleetNet, ABF Logistics, and ABF Moving – generated $25.776 million in operating income, or about 34% of the total. Delco said the company is likely to “remain focused” on growing the non-trucking businesses.

ArcBest CEO Judy McReynolds isn’t comfortable with the changes. She’s set a 2015 revenue goal of $3 billion. Acquisitions could be part of that growth. The company has little debt, and as of Dec. 31 was sitting on almost $205 million in cash or holdings easily converted to cash.

J.B. HUNT TRANSPORT (NASDAQ:JBHT)
Trucking, the division that launched the company, began to struggle for several years after the Great Recession. In December 2013, the company decided to refocus on the segment and mades management changes toward that goal. December 2013. Shelley Simpson, chief marketing officer and president of Integrated Capacity Solutions, was placed into a “strategic leadership role” with the trucking segment.

The company’s truck segment posted fiscal 2014 revenue of $385.603 million, below the $391.086 million in 2013. However, operating income for the segment was $24.223 million, a big jump over the $3.658 million in 2013. Company officials said rising rates and “rapidly declining fuel prices” helped boost income in the segment.

Overall, J.B. Hunt Transport Services boosted its 2014 revenue to $6.165 billion, a 10.4% increase over fiscal 2013. Net income for the year was $374.792 million, up 9.46% compared to the 2013 period.

In the first quarter of 2015, operating income for the trucking segment was $8.5 million, up 248% over the first quarter of 2014. Under Simpson’s tenure, and with the help of lower fuel prices, this once laggard segment has raised rates, increased rates per loaded mile, reduced maintenance costs, lowered insurance rates and reduced claims expenses.

P.A.M. TRANSPORTATION (NASDAQ: PTSI)
Times are definitely better for this company, which reported annual net income of $13.491 million for the 2014, a steady bump up from the $5.914 million reported a year ago. And with 2012 net income of $2.179 million, the company is on a three-year run of positive earnings.

But it’s been tough to recover from the national freight recession that began in late 2006. The company posted a 2011 loss of $2.857 million, a 2010 loss of $655,000, a 2009 loss of $10.847 million, and a 2008 loss of $18.765 million.

P.A.M. CEO Daniel Cushman has moved diversify the customer base, move more freight to and from Mexico and grow brokerage services. However, the company has between 35% and 40% of its business tied to the auto sector, and is the most likely among the four to be tied to national economic trends.

Auto sales have improved in recent years. There were 16.53 million cars sold in the U.S. in 2014, much better than the recession low point of 10.43 million in 2009, and the first return above 16 million since the 16.154 million car sales in 2007.

USA TRUCK (NASDAQ: USAK)
In late 2012 the USA Truck Board of Directors reached out to Harvard graduate Robert Peiser to chair the Board and get the company back in the black. Peiser, known in corporate circles as someone able to rescue a company for future growth or acquisition, hired John Simone in early 2013. He had a reputation in the trucking and logistics sector for tidying up troubled operations.

Peiser and Simone began making wholesale changes to USA Truck’s corporate philosophy, management and strategy. Officials with the long-haul trucking and logistics company announced 2014 net income of $6.033 million, a more than $15 million swing from the $9.11 million loss in 2014, and a gain that ended five consecutive years of losses.

The company’s trucking segment is still struggling, however.  The trucking division posted a $3.532 million operating income loss in 2014 – although it was a big improvement over the $17.66 million operating income loss in 2013.

Driving the gains are the non-asset side of USA Truck’s operation. The company’s Strategic Capacity Solutions (SCS) – logistics and freight brokerage – division posted operating income of $20.775 million, more than double the $9 million in 2013.

The company announced April 6 that Simone was on indefinite leave from the company to deal with a “serious medical condition.”

2015 FORECAST
Delco is bullish on the sector for the remainder of 2015. Driving the sentiment is “meaningful supply constraints” within the transportation sector, with those constraints more a product of driver availability than access to equipment.

Delco also sees wage growth and lower fuel prices resulting in more consumer spending, which is always good news for the freight industry. Also, federal regulatory changes are likely to make it more challenging for the freight industry to respond to growing demand, which will in turn allow freight companies to charge and maintain higher rates.

John Larkin, transportation analyst with Stifel Nicolaus, has said driver shortages are the biggest concerns for trucking CEO’s going into 2015. He projects the driver shortage to widen to 240,000 by 2020. He cites increased demand and retirements of veteran drivers along with declining interest from younger generations as the primary cause for the shortage.

Like Delco, Larkin said tighter federal regulations don’t help and it’s getting increasingly “more difficult to recruit honest, safe and reliable truck drivers.” He said just 5% of applicants industrywide meet all the requirements to be a commercial driver.