Senior Print Production Manager Greg Shira has been promoted to vice president/production at CJRW.

Shira coordinates all print-related production and supervises the agency’s production team. He has been with CJRW, Arkansas’ largest advertising, marketing and public relations firm, for nearly 19 years, starting as a production manager and later being promoted to senior production manager.

“Greg’s constant dedication to the highest quality in print production and his work to keep CJRW on the leading edge of technology and new industry trends have earned him this promotion,” said Darin Gray, CJRW president.

Shira works with printers across the nation, and his clients have included the Arkansas Department of Parks and Tourism, Visit Hot Springs, several banks, the Clinton Presidential Center, the Arkansas Economic Development Commission. Shira holds a bachelor’s degree in business administration from the University of Arkansas at Little Rock.

The changing food segment is too big for Wal-Mart Stores to get wrong. Groceries and consumables comprised 56% of Walmart’s U.S. sales last year. But consumer trends and points of sale continue to change and Walmart U.S. is just one of many retailers scrambling to better connect consumers of varied demographics.

It’s no longer just about stacking products high and selling them cheap, because while price still matters that’s just part of what consumer’s expect, according to Steve Bratspies, executive vice president of food for Walmart U.S.

Bratspies spoke to a room full of suppliers Wednesday (May 20) in Bentonville at the Wal-Street Speaker Series, an event of the Bentonville-Bella Vista Chamber of Commerce. He explained some of the work going on behind the scenes at the nation’s largest grocery/retailer.

FRESH BUTTON
One of the hottest buttons in grocery today is “fresh” and Bratspies said Walmart U.S. is doubling down in this area “to get better in the fresh business.”

“People are eating more fresh food in their diets today. Sometimes it’s intentional but in others is more natural and has evolved over time. We are going to continue to see significant growth in the fresh food business for the foreseeable future,” Bratspies said.

He said Wal-Mart has expanded its global sourcing offices so it can provide fruits and vegetables year-round to its U.S. shoppers. The retailer has staffed up in San Antonio, Texas, so it can focus on how to compete with H-E-B in fresh. Bratspies said store workers are being trained and retrained on how to handle fresh products with the primary rule being if they wouldn’t buy it it’s not suitable for customers.

“We are there so we can get the fresh business right and better compete with H-E-B who does fresh extremely well. We are investing resources in this area,” he said. “We are doing it in Michigan for categories like asparagus. We have people in the fields making sure we get the best possible product to put in our stores.”

He said the local food initiative is also strong and Wal-Mart continues to work with farmers across the country to supply local product when and where it can.  

Fresh is more than just fruits and vegetables it’s also deli and bakery where Bratspies said there is an intense effort to clean up the departments. He said there also is much planning behind the scenes so that when a baker reports to work in the morning they know how much French bread to bake that day. 

Last year, Wal-Mart began to highlight fresh baked bread loafs in its store for $1. The bread is often displayed near heating trays featuring rotisserie chicken placed near the check out area. The bread has become a big seller for the retailer. That is also an idea it poached from H-E-B who offers fresh, warm bread baked daily at its stores in Texas for $1 per loaf.

He also spoke of the supply chain changes, upstreaming and field offices that help to get product to the stores more quickly so it has a longer fresh shelf life.

CENTER OF THE STORE
But getting “fresh” right is just part of the job. Bratspies said the retailer also is working to re-energize the center of the store to better serve consumer wants. He said clean and concise labels are a big deal with customers who now more than ever want to know what’s in the product and where it comes from.

“Clean and transparent labels are a must these days. You can look at products on Wal-Mart shelves and in some of them it would take a Ph.D. in food science to pronounce the ingredients. We must do better than that because we know products with clean and transparent labels are favored by consumers,” he said.

Bratspies also spoke empty shelves, saying store labor is being re-aligned to have more workers on the floor and less in the back rooms. He said product is supposed flow through the backdoor and backroom out to the floor and then out the door. But for too long store labor has moved product to the floor and then back out to store rooms when it didn’t sell, he said.

He said the product now will flow just one way and there will be no more shuffling back and forth from the backrooms because the store labor will be working to ensure the shelves are replenished.

“You saw yesterday our store traffic was good (in the quarterly earnings report), but we have got to do a better job converting that traffic into buyers. Keeping the shelves properly stocked should help,” he said.

Bratspies admitted that making the changes to improve store traffic and sales are easier said than done. He said aside from clean aisles and properly stocked shelves, the retailer also is looking at category space planning and hopes to do a better job with mass merchandising the center aisles. Product areas Wal-Mart is focusing improvements and expansion include adult beverages, organics, gluten-free and sugar-free, and premium frozen.

SERVICE AND INNOVATION
Another area of focus in the grocery stores will be a “services” desk at the front of the store that clearly identifies where shoppers may pick-up online orders, transfer money or get some other ancillary service. Bratspies said look for more services to be added in the future.

“It’s like turning around a battleship, it takes a while, but the team at Walmart U.S. is focused on improving store operations. The investment in our store worker wages is already helping with the service piece. We know that service has to improve because customers demand it,” he said.

Not changing at Wal-Mart is the retailer’s plan to be a one-stop shop and its focus on the everyday low cost model. He told suppliers they will be asked to work with the low cost model and he urged them to bring their best product innovations to the table because Wal-Mart is buying.

Picasolar Inc., a solar start-up company affiliated with the University of Arkansas, dedicated its new headquarters on Wednesday (May 20) at the Arkansas Research and Technology Park.

The 2,300-square-foot space in the Enterprise Center at the technology park allows Picasolar to shorten the time it takes to produce its patent-pending product. That product, called a hydrogen super emitter, improves solar cell efficiency and reduces the amount of silver needed in the manufacture of solar panels, making them more marketable and affordable.

The hydrogen super emitter could save the average solar panel manufacturer up to $120 million annually. The super emitter represents the single largest technology leap in solar power in 40 years, said Douglas Hutchings, Picasolar’s CEO.

“This is a big step for our company,” Hutchings said. “With 1,000 square feet of new lab space, we will accelerate our proprietary process to make solar cells more efficient. The infrastructure and equipment we have assembled will streamline our transition from research and development to commercializing products.”

The University of Arkansas has supported and partnered with Picasolar through its development as a company.

Seth Shumate invented the super emitter as a student at the UA, and Hutchings and Shumate have worked with Hameed Naseem, a professor of electrical engineering, in the Photovoltaics Research Lab at the Arkansas Research and Technology Park.

The firm’s business plan was honed in the New Venture Development graduate course in the Sam M. Walton College of Business. Competing as a graduate business plan team, Picasolar won more than $300,000 at graduate business plan competitions in 2013, the same year it started operations at the research park.

“It is exciting to see Picasolar continue to grow and be successful,” said Jim Rankin, vice provost for research and economic development at the UA. “There is a great deal of promising solar research occurring at the University of Arkansas and we look forward to seeing it transition from the lab to the market.”

In 2014, Picasolar raised $1.2 million in equity investments on top of receiving an $800,000 SunShot Initiative award through the U.S. Department of Energy. In April, Picasolar’s super emitter was recognized with a prestigious 2015 Edison Award. The Edison awards, inspired by Thomas Edison’s persistence and inventiveness, recognize innovation, creativity and ingenuity in the global economy.

Airport traffic in Northwest Arkansas and Fort Smith is back on a positive track in April after a March decline. However, traffic at the Bill & Hillary Clinton National Airport in Little Rock – Arkansas’ largest commercial airport – continues to decline and is on a trend that could result in three consecutive years of declines.

Enplanements at XNA totaled 193,641 in the January-April period, up 4.28% compared to the same period in 2014. XNA ended 2014 with 640,537 enplanements, up 10.15% over 2013, and more than the record of 598,886 enplanements in 2007. The 2014 gain also marked the third consecutive year of increased traffic at the airport.

XNA had 54,027 enplanements in April, up 4.41% compared to April 2014. April enplanements also set a record for the month.

The airport is served by five airlines that provide connections to 10 U.S. cities. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

Enplanements at the Fort Smith Regional Airport total 28.377 for the first four months of 2015, up 1.46% compared to the same period in 2014. Enplanements at Fort Smith totaled 92,869 in 2014, up 9.87% compared to 2013.

April enplanements at Fort Smith totaled 7,466, up 2.63% from April 2014. The airport offers flights to Atlanta and Dallas-Fort Worth through Delta and American Airlines.

The Bill & Hillary Clinton National Airport in Little Rock posted enplanements of 210,287 for the first quarter of 2015, down 9.12% compared to the same period in 2014. (The airport did not have April enplanement data as of May 20.) The airport was the only one of Arkansas’ largest commercial airports to not post an enplanement increase in 2014. Enplanements in 2014 totaled 1.038 million, down 4.32% compared to 2013.

March enplanements in Little Rock were 79,689, down 9.73% compared to March 2014.

NATIONAL TRENDS
Airline traffic is expected to reach new records this summer, according to Airlines for America, the trade group representing major airlines. The group said May 18 that summer 2015 air travel (June 1 - Aug. 31) is projected to rise 4.5% and reach an average of 2.4 million passengers a day – an increase of 104,000 passengers a day. Airlines are planning to boost seat availability by 4.6% to meet the demand, said the trade group.

“The continued rise in U.S. consumer sentiment and employment is leading to more people traveling more often, and air travel remains one of the best consumer bargains in America,” John Heimlich, A4A vice president and chief economist, said in this report. “With 13 of the 15 busiest air travel days of the year falling in the summer months, U.S. airlines are well-prepared to accommodate the increased travel demand by adding flights and seats, and deploying new and larger aircraft, along with a boost in staffing to enhance the customer experience.”

Heimlich also said February 2015 was the 15th consecutive month of employment gains at U.S. airlines, having added nearly 9,500 jobs over the past five years.

ENPLANEMENT HISTORY (Fort Smith Regional Airport, since 2000)
2014: 92,869
2013: 84,520
2012: 86,653
2011: 86,234
2010: 86,129
2009: 78,432
2008: 87,030
2007: 99,127
2006: 94,717
2005: 102,607
2004: 92,928
2003: 90,493
2002: 87,944
2001: 95,419
2000: 104,182

ENPLANEMENT HISTORY (Northwest Arkansas Regional Airport, since 2000)
2014: 640,537
2013: 581,487
2012: 565,045
2011: 562,747
2010: 570,625
2009: 540,918
2008: 571,845
2007: 598,886
2006: 586,320
2005: 583,940
2004: 511,714
2003: 448,228
2002: 400,063
2001: 374,122
2000: 367,157

Acxiom Corp. announced that it is getting out of the IT services business as the Little Rock technology company continues to streamline its operations to focus on its core marketing and data services business.

At the same time, Acxiom fourth quarter earnings improved year-over-year although it reported net losses of eight cents per share from continuing operations on revenue of $257 million. That compares with losses of 33 cents year share on sales of $269 million in the fourth quarter of fiscal 2014.

Company officials said Boston-based private equity firms Capital Partners (Charlesbank) of Boston and M/C Partners agreed to purchase Acxiom IT for $190 million as part of management’s three-year process to “tighten our strategic direction.”

“This transaction represents the next phase in our journey to focus Acxiom on growing its core Marketing and Data Services business, and extending its leadership in onboarding and connectivity,” Acxiom CEO Scott Howe said.

The sale of the company’s IT business is expected to close in the second quarter of fiscal 2016, company officials said, following the satisfaction of regulatory requirements and other customary closing conditions. Acxiom will report the sale as a component of discontinued operations beginning in the first quarter of fiscal 2016.

Company officials said the Little Rock data marketing giant will use proceeds from the sale to pay down debt and to fund the expansion of its share repurchase program.

Added Howe: “We are excited about the future of Acxiom IT under the new ownership group. Their deep expertise, substantial capital base and commitment to IT outsourcing will give Acxiom IT a strong platform for growth and enhance its ability to deliver innovative solutions to its customers. Charlesbank and M/C Partners are gaining a deeply talented team that I am confident will flourish under their direction.”

In a fact sheet accompanying the announcement of the deal, company officials said Charlesbank and co-investor M/C Partners were selected to purchase Acxiom IT because of their “lengthy track record of successfully working together.”

Since 1991, Charlesbank has invested approximately $3.9 billion in 72 companies, and currently has more than $3 billion in capital under management.

“Over many years, Charlesbank has maintained a consistent focus on the middle market, investing across a broad range of industries. The firm seeks companies that offer competitive advantages, strong senior management partners and excellent growth prospects,” Acxiom said.

M/C Partners was founded in 1986, and invests in emerging, high growth segments of the communications, media and information technology sectors. The firm has invested over $1.5 billion into nearly 100 companies in those sectors.

Acxiom also said various steps will take place over the next few months in preparation for the closing of the deal and the formal transfer of ownership. While the time required to receive regulatory approval can vary, company officials said they expect the transaction to close over the next 45-60 days. After the transaction is closed, the new company will be privately owned by Charlesbank and M/C Partners.

Meanwhile, Acxiom’s full-year financial results largely mirrored fourth quarter earnings. The Little Rock data marketer reported net losses of 12 cents per share, compared to 14 cents a year ago. Yearly revenues were also slightly down to $1.02 billion, compared to $1.06 billion in fiscal 2014.

Under the terms of the deal with Charlesbank, total potential cash consideration is nearly $190 million, comprised of $140 million in cash at closing and up to $50 million in contingent payments subject to certain performance metrics. In addition, Acxiom will receive a 5% profits interest in the go-forward company.

In other financial events, Acxiom’s board of directors has increased its share repurchase authorization by $50 million to $300 million and extended the duration of the share buyback program through Dec. 31, 2016. Since inception of the program in Aug. 2011, the company has repurchased 12.9 million shares, or nearly 16% of the outstanding common stock, for $202 million.

At the close of business Wednesday, Acxiom’s shares (NASDAQ: ACXM) were up 10 cents at $17.49 on the Nasdaq stock exchange. The company’s stock has traded in the range of $16.04 and $23.32 over the past year.

Out-of-state students will save $50 per credit hour on tuition at NorthWest Arkansas Community College beginning with the fall 2015 semester.

The college’s Board of Trustees recently approved a reduction in the out-of-state tuition rate from $175 per credit hour to $125 per credit hour.

“We believe this change will make college more affordable for those students who have wanted to take college classes with us, but felt the out-of-state tuition rate put their dream of a college education out of reach,” said Dr. Evelyn Jorgenson, the college’s president.

A wide range of students will benefit from the change, said Steven Hinds, executive director of public relations and marketing.

“The potential beneficiaries of this change include students who are taking classes online with us, students who qualify for Deferred Action for Childhood Arrivals status or students who live in bordering states such as Missouri and Oklahoma, but outside the narrow service area currently receiving the in-state tuition rate,” he added.

Jorgenson said the college administration believes this action is a way to make college more affordable in an era when many institutions are being forced to increase tuition rates to balance budgets. NWACC’s Board of Trustees raised some student fees, but did not increase tuition costs for the 2015-16 academic year. This marked the third straight year the community college has not increased its tuition rates. The cost per credit hour for those students living within the college’s taxing district (Bentonville and Rogers school districts) is $75 per credit hour, and the out-of-the-district, but in-state rate is $122.50 per credit hour.
 

The Walton Arts Center announced a $500,000 gift from Tyson Foods on the heels of like funding from J.B. Hunt Transport last week which is designated for the $23 million fundraising campaign by the nonprofit.

The Investing in our Future campaign seeks to add 30,000 square feet of space, including 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.

The goal is to complete the Dickson Street renovation by fall 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.
 
“Thanks to the long-time partnership with Tyson Foods, Walton Arts Center is able to provide enriching arts opportunities for children and audiences in Northwest Arkansas,” said Peter Lane, president and CEO of Walton Arts Center.

He said Tyson Foods has sponsored season programming, education programs and capital projects. This gift will continue the legacy of Tyson Foods’ support of Walton Arts Center by renaming the renovated exterior Tyson Plaza and naming the primary entry from the Dickson Street entrance as the Tyson Entrance.
 
“In the last few years our region’s population has grown by nearly 8%, versus the 3% nationwide average. Needless to say, this area is booming,” said Tyson Foods’ Executive Vice President of Corporate Affairs Sara Lilygren. “We find it so important to give back to this community, and we’re delighted to support access to cultural and recreational assets like the Walton Arts Center.”
 

With the completion and opening of the Scott Family Amazeum less than three months away, the organization has ramped up its staff.

Randy Graham has been named director of guest services, and Kelsey Howard has is the new school and community programs manager.
 
“Final preparations are being made as we approach our opening on July 15,” said Sam Dean, Amazeum executive director. “These additions to our staff round out an incredible team of individuals who each bring a specific skill set to the interactive exhibits at the Amazeum, engaging the imagination of children and their families throughout the region.”
 
As director of guest services, Graham is responsible for leading the vision, launch and sustainability of the Scott Family Amazeum’s front-line team, which includes admissions, store, café and other business centers. 
 
He comes to the Amazeum from Crystal Bridges Museum of American Art, where he served as group tour manager. In this role, he oversaw the development and management of the group tour program while collaborating with guest services, education, culinary, curatorial, and trails and grounds aspects of the museum.
 
Prior to museum work, Graham served as parks and recreation director for the City of Lamar in Missouri. His experience also includes speaking, consulting and ministry positions in Arkansas, Louisiana, Mississippi, Missouri, Tennessee and Texas.
 
As school and community programs manager, Howard oversees the development and delivery of programming for Amazeum guests, schools and community groups, and will be responsible for daily activities in the Hershey’s Lab. 

Prior to joining the Amazeum, she worked at John Brown University in Siloam Springs as an adjunct professor and reading and writing specialist. She also has several years of work and volunteer experience in numerous museums such as the Philbrook Museum of Art in Tulsa, Okla., and the Courtauld Gallery in London.

Before settling in Northwest Arkansas, Howard and her husband, Jordan, lived in South Korea, working as ESL elementary school teachers. Upon receiving the Ralph R. Kirchner scholarship through Rotary Club District 6110, Howard continued her studies in London at the Courtauld Institute of Art, where she earned her master’s degree in the history of art.

Banks taking back more homes across the country is the primary reason foreclosure filings rose 9% in April from a year ago. Irvine, Calif.,-based RealtyTrac reports 125,875 U.S. properties were in the midst of foreclosure last month, which was an 18-month high on the heels of what has been a downward trend for more than two years.

On a local level, foreclosure filings rose in Benton, Crawford and Washington counties, while Sebastian County bucked the trend. Statewide foreclosures rose 46% from a year ago, and were also fueled by bank repossessions – which boosts a bank’s “real estate owned” (REO).

“The REO increase in April was foreshadowed by a 23-month high in scheduled foreclosure auctions in October 2014,” said Daren Blomquist, vice president at RealtyTrac. “Many of those scheduled auctions are now taking place, and properties are going back to the foreclosing lender.”

He said at foreclosure starts continue to decrease, and are running consistently below pre-crisis levels. This indicates that the overall increase in foreclosure activity in April is a continuation of the clean-up phase of the last housing crisis, not the start of a new crisis, he said.

REO UPTICK
Last month there were 45,168 bank repossessions across the country which was a 27-month high led by Florida, Maryland, Nevada and New Jersey. Bank repossessions rose 50% from a year ago. 

Just 12 states ranked higher than Arkansas for increases in REO property last month. Arkansas reported 293 foreclosure completions last month, up 76.5% from April 2014.
Montana had the highest increase in foreclosure completions last month up 500%.
New Jersey ranked the second highest with a 375% increase in foreclosure completions last month.

Experts say while the uptick in REO properties breaks trend, the level is still 56% below market peak in September 2013.

REO PRICING
“While distressed sales typically have a stifling effect on the housing market, in this particular market an influx of distressed inventory could actually help stimulate sales during the spring and summer buying season as new listings become available, often in the middle to lower ranges of the market,” Blomquist added. 

“Banks are liquidating these distressed properties in a seller’s market with a low supply of inventory for sale, which should help them sell quickly and at a price that is relatively close to full market value,” he said.
 
REOs sold for 87% of estimated market value in first quarter, but RealtyTrac said in many markets these distressed properties are selling at a much higher price-to-value ratio.

Local agents said that is the case in the Northwest Arkansas and Fort Smith metro areas.

Jim Long, agent with Crye Leike Real Estate in Bentonville, said there are 182 foreclosure listings in the two metro areas. That is a small fraction of the 2,500 homes on the market as of April 15 from Bella Vista to Fort Smith.

Local foreclosure listings peaked as high as 322 in December 2013. A year ago there were 153 foreclosure listings for sale in the local MLS data base.

Kevin King, broker with Weichert King Real Estate in Fort Smith, said foreclosures are a tiny part of that local market, and are almost nonexistent. Crye-Leike agent Vicki Briolat of Bentonville said area foreclosure listings do not stay on the market long. She said more often now banks are investing in home improvements before they put them on the market. 

“This is a no-brainer for banks to replace flooring, paint and spruce up the property because they will make the money back by gleaning a higher sales price,” she said.

Briolat said the first thing a bank does when they get a property back is order an appraisal which will be used to set the listing price. Given that appraisals are comprised of area comparable sales, Briolat said if there is just one foreclosure listing the impact to other home prices in the neighborhood will be slight. But, if the majority of home sales in a neighborhood are distressed properties the impact on pricing will be much greater.

MARKET RECOVERY
She said the inventory levels are low overall relative to buyer demand which is lifting prices for everyone. 

In three of the four counties noted in this report, home prices through April have posted strong gains so far this year. Crawford County median home prices rose 15% to $107,500. Median sales price rose 14.5% in Benton County to $175,500.  At $155,300 median home prices in Washington County are up 6.5% from a April last year, while Sebastian County home prices are up 1% this year over last, according to MountData.com

“We are seeing additional improvement in housing market conditions due to a decline in the serious delinquency rate to 3.9% far below the peak of 8.6% in early 2010,” said Frank Nothaft, chief economist with CoreLogic.

He said the percentage of homeowners struggling to keep up remains well above the pre-recession average of 1.5%.

FORECLOSURE FILINGS
Benton County
2015: 59
2014: 39 

Crawford County
2015: 7
2014: 3

Sebastian County
2015: 9
2014: 14

Washington County
2015: 24
2014: 13

Dr. Evelyn Jorgenson, president of NorthWest Arkansas Community College, and Dr. Alan Marble, president of Missouri Southern University in Joplin, recently signed an agreement that will facilitate transfer students taking honors courses at the respective colleges.

The agreement allows students from NWACC to enroll in challenging courses that will count toward their degree requirements and make a seamless transition into Missouri Southern’s program, the institutions’ leaders said. The transfer agreement is effective with the fall 2015 semester.

A variety of courses are offered through NWACC’s Honors Program in English composition, literature, history, biology, astronomy, geology, philosophy, psychology and gender studies.

The retail sector reported mixed results this week and Bentonville-based Sam’s Club was among the losers – again. Sam’s Club CEO Rosalind Brewer also gave a cautious outlook as the wholesale club tries to reinvent itself to better compete with Amazon, Wal-Mart, Costco and a host of other retailers offering values.

“Our first quarter results were disappointing, as comp sales missed guidance, and we delivered softer net sales and profit than last year,” Brewer said in the recorded earnings call. “We continued to invest in our initiatives to drive growth, and while we made progress in some areas, we still have upside opportunity in others. This year is one of investment and testing, and we’re very focused on strengthening our foundation for business improvement in the longer-term. We’ve been focused on four initiatives designed to improve our foundation.”

Sam’s club delivered a 0.4% comp excluding fuel and a 3.8% comp decline including fuel, results that continue to frustrate Wall Street and Wal-Mart management.

“Sam’s Club performance has been frustrating but we hope that management’s focus on merchandise assortment, marketing, member rewards, and e-commerce investment will drive future traffic and ticket improvement,” noted Budd Bugatch, an analyst with Raymond James & Associates.

Brewer briefly outlined a strategy for recovery in the press release on Tuesday (May 19). She said a new chief membership officer was put in place this quarter to oversee data scientists and marketing professionals with a goal of improving customer engagement.

One thing that made the performance look worse was that membership increased 7.4% in the quarter but despite the added members operating income fell 10.9% to $427 million. Even without the fuel impact, operating income declined 8.6% to $436 million in the period.

Part of the added expense that lowered operating income was related to the Plus Cash Rewards program, which was rolled out nationwide in the quarter. The reward system pays members to shop, a strategy that could lower margins.

Brewer attributed the weak quarter to negative comps in electronics, technology, office supplies, and food deflation in the fresh categories. She also said baby care products had some supply chain holdups which hurt sales. On a positive note, Brewer said traffic counts and ticket sales were up in part because of strong double-digit growth in the Club Pickup comps from online orders.

NEW GAME PLAN
Brewer explained the first step in the new game plan addresses merchandise assortment.

“We are driving newness and differentiation. For example, we increased our organic offerings by 20% since the beginning of the year, and these are important to various demographic groups, including millennials,” Brewer said.

The second step of the game plan is focused on membership and decision sciences. Brewer said the new chief member officer reporting to her will own membership data and analytics. 

“This role, which was put in place at the beginning of the quarter, oversees a new team of data scientists, marketing and insights professionals. I’m pleased that the team’s recent new targeted membership efforts give us optimism for the rest of the year,” she said.

The third step addresses new programing to enhance member value.

“One example is a groundbreaking new pharmacy program called ‘Free/4/10,’ which provides Plus members with free or discounted prescriptions for five costly diseases, including Alzheimer’s, diabetes, mental health, vitamin D deficiency, and prostate health. This program contributed to a number of Plus upgrades since its rollout,” Brewer said.

Brewer said the fourth step is a long-term investment in the e-commerce business. 

“We re-launched Club Pickup in every club in the country, resulting in a 37% sales increase in the Club Pickup Program. Members love the convenience benefits of online ordering and easy pickup at the club. I am encouraged that our investments will pay off in the near future,” she said.

THE EXPERTS SAY
All retailers are wooing the millennials, and some market watchers say Sam’s Club has an opportunity to do more.

“I think Sam’s Club is in a position to offer an ‘online only’ membership to the millennials that could also provide some of the services like subscription shipments that compete with Amazon Prime,” said Sam Lazenby, founder of #OnShelf in Bentonville. 

Lazenby said Sam’s could probably do it cheaper than Amazon and this would give them a jump on Costco, which they often trail. He said perhaps a combo membership option could also work for consumers like himself who would use the pickup option. 

Annibal Sodero, supply chain expert at the University of Arkansas, said recently that Sam’s Club could be hurt by Walmart.com’s subscription-based delivery program. He said Costco is feeling some pain from Amazon’s Prime Box and Dash programs. 

The experts agree that Sam’s Club could mitigate the damage by offering its own subscription-based online program which could be an add-on to the regular membership. Lazenby said that while Costco has strengthened its brand by staying focused on consumers, Sam’s Club’s dual purpose for small businesses and consumers has not been as fruitful.

Rather than chase after every bright shiny object, Lazenby said Costco has maintained the same strategy and much of the same management team for years. They have a disciplined merchandise approach that only offers one or two varieties for many of their items. One of those is usually the Kirkland private label, which has brand equity equal to many name-brand products.

Lazenby, a supplier development consultant, said on a positive note the Sam’s Club buyers he has worked with appear to be good merchants. He said they are willing to take risks and work with the supplier to get the products at the best values.

Typical membership club margins range between 13% and 15%, which is far less than the 30% to 40% margin at  discount retailers.

“Sam’s Club members should be getting the best values on high quality products, that should be reason enough to shop there,”  Lazenby said.

Monica Kumar has been selected to serve as the new executive director at Downtown Bentonville Inc. (DBI).

Brenda Anderson, president of the DBI Board, announced the appointment Thursday (May 21) saying that, “Monica’s background in community programming and engagement, as well as her expertise in organizational administration and non-profit management, makes her a great fit for DBI."

“She also has an innate enthusiasm for our community and its people – we are very fortunate to have Monica on the DBI team,” Anderson added.

Kumar and her family moved to Bentonville in January 2014 from Silicon Valley area of California where she worked in community development and program positions. Since her move to Bentonville, she has created a community storytelling website called the Bentonville Project.

She was born in the United Kingdom where she attended law school and practiced family and human rights law. Prior to that, she practiced corporate and commercial law in the Turks & Caicos Islands. 

“I am passionate about community building and believe that Bentonville is an incredibly unique example of what can be achieved when local stakeholders work together. DBI has made a dynamic impact on the development of our downtown and I am privileged to serve in this capacity. I hope to build upon the positive success of DBI and continue to advance our community together.”

Kumar holds a bachelor's degree in law and a legal practicing diploma from the London College of Law, UK. She and her husband have a five year old son and live in downtown Bentonville.

It’s been a stellar year for used-car sales evidenced by the explosive growth of Bentonville-based America’s Car-Mart. The buy here, pay here car dealer reported net earnings for fiscal 2015, ending April 30, of $29.45 million, a gain of 39.6% from the $21.089 million the company pocketed a year ago. 

Total revenue topped $530.321 million for the year, rising 8.4% from $489.187 million in fiscal 2014. The company sold 46,760 automobiles last year, up 9.9% than in prior year. The company has grown its store count to 141 stores with more coming soon. CEO Hank Henderson said the company’s dealerships are spread across 10 states, having added seven new stores during fiscal 2015.  

“We currently have seven new location projects in process. Our next dealership opening will be in June in Rolla, Mo. We are very excited about our expansion plans as we will be adding a new state this year, Iowa. We have already secured a location in Burlington, Iowa and are currently looking at a few other prospects in the state,” Henderson said. “As always, we look forward to adding value to the markets we will serve. We are looking to pick up the pace of new lot openings in 2016 and the seven projects in process right now will certainly help. We are pleased with the top line growth and remain convinced that we are moving the company in the right direction."

EARNINGS MISS
Wall Street Investors expected solid numbers from the used car retailer as America’s Car-Mart shares (NASDAQ: CRMT) rose more than 2% in light trading on Thursday ahead of the after-the-market earnings report. Shares closed at $53.94, up $1.13. Car-Mart shares have traded from $35.40 to $57.55 over the past 52-week period.

Analysts forecast Car-Mart to earn $3.28 per share for the full year, which was three cents more than the $3.25 net income per share earned by Car-Mart. That said, analysts underestimated the top line revenue at $528 million, more than $2 million shy of the actual number.

In the fourth quarter which ended April 30, Car-mart earned 81 cents per share, a marked improvement over the 68 cents posted a year ago. Again, Car-Mart missed Wall Street predictions of 83 cents a share. Revenue exceeded expectations rising to $137.61 million, nearly $2 million more than expected and a 12.2% gain from the same period last year. Revenue benefited from a 7.5% comp sales number reported in the quarter.

Net Income totaled $7.240 million in the recent quarter, up 14.86% from the prior-year period. 

"As we expected, we saw a nice improvement at the top line for the (recent) quarter and are pleased to see the increase in sales productivity,” Henderson said. “We believe that we offer our local markets a better value by staying focused on customer success. Productivity, as reflected in the average retail units sold per month per store, increased from 26.9 to 28.1 for the quarter.”

While the company’s results speak for themselves, Henderson said competition remains tough as subprime lending options are more readily available today by larger dealerships also selling used cars. He said pressures from other dealerships is nothing new and Car-Mart will continue to focus on its niche business in smaller metro areas and capitalizing on repeat customers.

BETTER BALANCE SHEET

Car-Mart provides inhouse financing which comprised $14.342 million in the fourth quarter, a gain of 6.8%. For the full year the company’s net interest income earned totaled $57.752 million, compared to $54.683 million in the prior year. At the end of fiscal 2015, Car-Mart had more than 64,000 paying customers on its books. 

“For the quarter, we saw net charge-offs decrease to 7.8% from 8.3%. While it was nice to see the decrease, we were disappointed that losses weren't even lower as we were very optimistic heading into the fourth quarter,” said Jeff Williams, chief financial officer.

He said because of the competitive environment Car-Mart must be at the top of its game, especially as related to collections. At the end of the fourth quarter accounts more than 30-days past due rose to 5.8%, increasing sharply from 4.4% a year ago. Downpayment amounts also slid some to 9% from 9.7% a year ago.

“We are focused on the increase in our accounts over 30 days past due at the end of the quarter and the decrease in principal collected for the quarter. We are not happy with where we are in these two areas and are working hard to help our customers succeed,” Williams said.

Williams said the company remains aggressive with share repurchases fueled by increased cash flow.

“We repurchased 121,025 shares of common stock during the quarter for $6.4 million at an average cost per share of $52.81. Since Feb. 1, 2010, we have repurchased 3.7 million shares, or 31% of our company, for $120.7 million at an average cost per share of $32.96,” Williams said.

He said the company’s fiscal balance sheet remains strong following an active fiscal 2015. There were seven new dealerships opened with net capital expenditures of $4.2 million and they added more than 5,000 new active accounts with receivables growth of $38 million, repurchased $20 million in common stock, all while increasing total debt by just $5.7 million.

Car-Mart executives will hold a conference call with investors and analysts at 10 a.m. on Friday morning (May 22.)

As part of the review process under Amendment 82, the state’s superproject amendment, lawmakers have received an independent consultant’s analysis of the proposed $87 million Lockheed Martin  Joint Light Tactical Vehicle (JLTV) bond issue that will be at the center of debate in next week’s special session.

Gov. Asa Hutchinson made the official call for legislators to meet in special session beginning Tuesday, May 26 to vote on helping lure the military’s new JLTV production facility to Camden. The new military vehicle will replace the long-running Humvee vehicle.

Legislators will vote on issuing $87 million in bonds to help Lockheed Martin build 55,000 JLTV vehicles in Highland Industrial Park near Camden. Lockheed Martin is competing with Oshkosh and Humvee maker AM General for the lucrative contract that could be as much as $30 billion over the next several decades.

Under the analysis from IHS, the consulting group hired by the legislature’s Bureau of Legislative Research, one of the conclusions of the group was: “The net economic benefits would be a positive $16.3 million using a discount rate of 3.38%, or the true interest cost of the proposed bond issue. The net economic benefit would be 19% than the npv of the costs, or the annual bond debt service.”

Other takeaways from the report included:
• In our judgement, there is a minimal downside risk to Arkansas several reasons.

• The nature of the contract under which the DoD will commit to purchasing almost 55,000 JLTVs at an agreed upon price reduces market uncertainty about the level of activity at the Camden plant.

• Arkansas plans to protect taxpayers by including appropriate claw back provisions in the incentive package if LM does not meet the specified levels of production and employment.

By contrast, the consultants said there is a lot of potential upside such that the net economic benefits are more likely to exceed our estimate than be smaller because:
• It is likely that prices paid by DoD per JLTV will be higher than the base figure for the reasons discussed above.

• The number of vehicles produced by the Camden facility over the analysis period is likely to exceed the contract amount because of sales of JLTVs to other countries, and from higher domestic demand to replace aging Humvees.

• Additional activities will be performed at the Camden plant such as the reset work noted above, which in turn would increase the level of direct purchases, and possibly employment generated by the plant.

“While there is always some risk when a state makes a long-term commitment to provide up-front economic incentives that are repaid indirectly over time by the hoped for increases in statewide economic activity, IHS’ conclusion is the proposed economic incentive package makes economic sense for the State of Arkansas, and that it is a prudent, responsible use of taxpayer resources. Finally, we note that a key part of the Arkansas’s ability to maximize the potential economic benefits of the JLTV facility will be its ability to provide targeted job training programs to ensure that supply of skilled workers in Calhoun and Ouachita counties is large enough to meet the projected demand. The challenge of meeting the demand for qualified technical workers in a rural part of the state would be much greater if LM had not already been successfully operating its Camden plant for many years,” the report concludes.

The University of Arkansas Community Design Center received two new awards for a food sustainability project that promotes local urban agriculture.

The project dubbed Fayetteville 2030: Food City Scenario, won a “2015 Great Places Award” from the Environmental Design Research Association. It also received a “2015 Green Good Design Award” from the European Centre for Architecture Art Design and Urban Studies and the Chicago Museum of Architecture and Design.

The Community Design Center led an interdisciplinary team at the UA that speculated on what Fayetteville might look like if the city’s growth integrated local urban food production sustainable enough to create self-sufficiency.

Fayetteville’s population of 75,000 is expected to double over the next 20 years. The plan also factored in the high rating for child hunger in the immediate region.

Steve Luoni, director for the Center and UA professor, said the Food City Scenario sought to link urban agriculture back into the city environment, with the prospect of helping Fayetteville achieve greater food security and resiliency.

“Food has been absent in planning and urban design, but that is changing as cities worldwide are trying to build greater resilience. Food City asks what kind of infrastructure would a city have to develop if it cultivated a local food system?” Luoni said.

“The scenario led to the invention of planning tools for reclaiming a missing middle scale of urban agriculture between that of the individual garden and the industrial farm. Food can simultaneously build greater prosperity, social capital and a true sense of place,”
he added.

The Great Places Award program recognizes projects that show concern for human factors in the design of the built environments, as well as commitment to promoting the links between design research and practice. This is the center’s fourth award from the association.

This year’s Green Good Design Award recognized 65 consumer product designs and 25 pieces of architecture and urban planning projects from 24 countries.

Homebuilders and commercial contractors in Northwest Arkansas ramped up new projects in the region’s four largest cities last month. The cumulative new residential and new commercial permit values issued in April totaled $69.437 million, up 53% from the $45.356 million reported a year ago.

Residential permits were the lion’s share of the new projects in Bentonville, Fayetteville Rogers and Springdale totaling $46.443 million for 196 new home starts. The new home market permit values rose 33.9% from the $34.686 million reported a year ago. Housing starts are up 38% in April from the 142 starts reported a year ago. This surge comes on the heels of a flat first quarter.

CITY RESULTS
Bentonville reported the biggest gains in residential building last month with 64 permits valued at $18.547 million. This compared to 29 homes worth $8.471 million in April 2014. 
 
For the first four months of 2015 residential building is up 21.3% in Bentonville with 191 permits worth $57.297 million, compared to $47.221 million in the same period last year.

Bentonville and it’s neighbor Centerton were among the fast growing cities in the nation. Continued population growth in the Bentonville School District convinced educators to build a second high school which is under construction in Centerton and helping to kickstart growth in west Bentonville.

Springdale homebuilding also rebounded with April permits valued at $9.686 million for 40 new homes in the city. A year ago Springdale issued 24 permits valued at $6.199 million. The April rebound helped the city gain ground but permit values lag a year ago for the four-month period.

Road infrastructure improvements on the west side of Springdale are creating better access and spurring more residential building. So far this year the city has issued permits for 87 new homes with a combined value of $21.699 million. The building pace is slightly below the 98 homes this time last year which were valued $24.229 million. 

Builders in Rogers were also more active in April securing 46 new home permits valued at $8.352 million, compared to 40 permits worth $7.044 million in the same month last year. As more commercial development is underway in southwest Rogers, there are also more visible residential rooftops sprouting up between I-49 and U.S. 71-Business near Pleasant Grove Road. There also is infill homebuilding near the downtown region of Rogers.

For the first four months of 2015, the city of Rogers issued 155 permits compared to  119 in the same period of 2014. Permits values are up 26% to $26.992 million through April, compared to $21.414 million a year ago.

Fayetteville was the only one of the four in the report to have a slower April than last year for home builders. The city issued 46 new residential permits in April, compared to 49 a year ago. The permit values were $9.858 million, down 24% from $12.972 million in April last year. For the first four months of 2015 Fayetteville issued 125 new residential permits with a value of $26.158 million. The permit values are down 23.7% from $34.322 million in the same period last year.

For the region, residential building permit values totaled $80 million through April. This is up 13.5% from the $70.48 million reported a year ago among the four largest cities.

In Benton and Washington counties there were 349 new homes listed for sale in the local MLS, according to MountData.com. Based on the number of sales completed in the last three months there is 3.5-month supply of new homes on the market. Through April agents sold 399 new homes with a median sales price at $108 per square foot or $229,900. 

The limited number of homes listed for sale is an indication homebuilding should remain steady throughout the summer and fall.

COMMERCIAL SECTOR
Commercial building in Northwest Arkansas was active in April with the four cities issuing several new projects totaling $22.994 million, more than twice the $10.67 million reported a year ago. 

For the first four months of this year the combined cities issued new commercial permits valued at $68.819 million up 22% from $56.235 million in the year-ago period. 

New commercial permit figures for the four cities were:
• Bentonville with 2 permits valued at $3.749 million, versus $4.201 million a year ago;
• Fayetteville with 3 permits valued at $14.54 million, versus $1.481 million a year ago;
• Rogers with 4 permits valued at $4.392 million, versus $3.869 million a year ago; and
• Springdale with 1 permit valued at $329,982 versus $1.139 million a year ago.

The largest permit issued last month was a $10 million new church project for Fellowship Bible Church in Fayetteville. Also coming to Fayetteville is What-A-Burger ($1.375 million); Raisin Cane Chicken ($900,000); industrial warehouse ($2.249 million).

Panda Restaurant in Springdale received a permit valued at $329,982 last month for its location at 1087 N. 48th St.

The Arkansas Health Department also issued permits for the following:
• Khana Indian Grill, 2101 N. College, Fayetteville;
• Jimmy Johns, Zoe’s Kitchen, Pilates, Joplimo Mattress at College Marketplace, 3379 N. College, Fayetteville; and
• The Sweetery, 1149 West Walnut St. Suite A, Rogers.

In Benton County, Burlington Coat Factory Store is under construction in Rogers. That permit was valued at $3.6 million. Ozark Regional Vein ($100,000) is also under construction at 5433 Walsh Lane. Mercy Clinic’s General Surgery offices at 1001 Horsebarn Road also got a $612,000 new construction permit last month.

In Bentonville a new Neighborhood Market in the Midtown Center downtown off the square ($2.746 million) was pushed the city permit office last month. The other permit issued was for MusicWorks ($1.002 million) at 2400 S.E. J. St.

Springdale-based Tyson Foods has petitioned the Supreme Court to overturn a judgment and $5.8 million award for workers in its Storm Lake, Iowa pork processing plant. This has been a long fought battle between Tyson and its labor who claims they there were not fully paid for the time spent donning and doffing protective gear required for the job prior to 2010.

The suit (Tyson Foods Inc. v. Bouaphakeo) involves past and present workers in this facility who previously won their case in U.S. District Court with a $5.8 million award and attorneys fees. Tyson Foods appealed the judgment to the Eighth Circuit Court of Appeals that upheld the lower court’s ruling.

In its petition to the Supreme Court Tyson argued that the Eighth Circuit wrongly certified the lawsuit as a class action.

Wal-Mart’s age-old weekly circular tab insert in newspapers is being revamped into a digital catalog format that will have less focus on price and product and more on the retailer’s commitment to helping its customers “live better, everyday,” according to Steve Bratspies, executive vice president of food at Walmart U.S. 

Bratspies recently told Wal-Mart suppliers that the technology facilitating digital and physical integrations will be a big part of how Wal-Mart markets products. That starts the weekly circular, and it may not be a change the newspaper industry will appreciate.

“The normal tab we send out every weekend, we are changing how we do that. For one thing we will be doing it less frequently,” Bratspies said.

The new version, which Bratspies said has been relabeled “EDLP Catalog,” is more focused on delivering the retailer’s core promise of saving money and living better.

“It is going to be integrated in the technological world. Everything is going to be connected with digital partnerships and digital content so that you make the connection
of product to the online world and back and forth much more seamlessly than you have been able to do in the past,” he said.

Continuing, he told the suppliers: “That is what the customer is asking for, that’s what they are demanding actually. We can’t just live in a physical world or a digital world, the two have to work together. When you get at the intersection of the two, that’s where one plus one equals four. We are spending a lot of time figuring out what is the best way for us to do this.”

Wal-Mart used the Memorial Day Holiday to launch the digital revamp which is available online with live links. The mobile version is available as a tab inside the Walmart Stores app but the there live links are not active in the mobile application.

The expanded digital version of the circular has 24 pages laid out in a magazine style with a focus on lifestyle imagery and lighter exposure on produces and prices. The retailer hits the main theme on the first page of the digital magazine. The theme continues in the photos and text content within the 24-page piece.

Page two features avocados, limes and Tostitos with a recipe for guacamole front and center. Wal-Mart said incorporation for the featured recipes which were gleaned from Pinterest and are there to engage digital integration for pre-and post-shopping behaviors. There is also a link that plays a video from an avocado farmer that shows the best way to select avocados for peak ripeness as well as the best way to cut into the fruit.

The circular also places roughly half the number of products per page in previous tabs which averaged 10 to 15 items. Wal-Mart also shows packaged food in its final prepared form such as Oscar Meyer wieners which are identified on “Rollback” at $1.50 per pack. Wal-Mart includes the pre-Rollback price at $2.50 so the customer understands the savings.

Also visible in the new format is more skin with a model wearing a two-piece Catalina swimwear bikini. In this section the retailer provides tips for choosing and applying sunscreen as well help for those consumers looking for summer beauty tips.

The new format also features a “Projects” page for do-it-yourself enthusiasts. Gardeners get planting guidelines for a lush garden and tips for the best curb appeal. Other design tips, which can be accessed online, include space planning for backyards and patios.

Analysts who reviewed document said the page is another take on value-added content integration. It provides shoppers with a problem-solution approach relevant to the theme and products. They said it’s important for Wal-Mart to sell itself to consumers as a solution provider and providing content with products in a digital format is a step forward. The related online content is one way Wal-Mart can help drive customers to their brand.

Wal-Mart uses the final page of the circular to profile one of the veterans it has hired as part of is commitment made two years ago. They also highlighted patriotic items such as  flags and other decorations using the space to reinforce their mission to hire veterans.

Representatives from the University of Arkansas and NorthWest Arkansas Community College on Thursday (May 28) signed a memorandum of understanding that allows the transfer of courses in child advocacy to transfer to UA.
 
The agreement provides the opportunity for NWACC students who complete courses that adhere to the evidence-based child advocacy studies curriculum offered at Winona State University and the UA School of Social Work to transfer those credits into one of several bachelor’s degree pathways at the UA at the advanced 3000-level. 
 
NWACC students seeking to transfer the courses must meet several requirements. These requirements include earning an associate degree from NWACC and completing the 2000 level classes within the child advocacy studies curriculum at NWACC.

Students also must have been admitted to the School of Social Work or be majoring in sociology, criminal justice or psychology or be pursuing a human environmental sciences degree or be pursuing a nursing degree at the UA.
 
Dr. Ricky Tompkins, vice president of learning and chief academic officer at NWACC, said the agreement is another step in the ongoing collaboration and partnership between the two higher education institutions.

“This memorandum of understanding allows for a seamless transfer of courses for those students preparing to serve children and who seek to create an environment where all youngsters can be safe and have the opportunity to learn,” he said.

Tompkins noted prior to the signing ceremony that during the next 18 months more than 30 non-credit training sessions are being planned at the Melba Shewmaker Southern Region National Child Protection Training Center in Bentonville that serves 16 states.

Union Pacific plans to invest $98 million in 2015 to improve Arkansas’ transportation infrastructure, the company announced Thursday, with some of that to be spent on rail lines and road crossings in the Van Buren area.

The railroad giant’s multi-million dollar private investment will enhance employee, community and customer safety and increase rail operating efficiency, the company said in news release on its website.

“We constantly evaluate our customers’ needs to make targeted investments that enhance our efficiency and deliver the goods American businesses and families use daily,” said Brenda Mainwaring, Union Pacific vice president of public affairs, Southern Region. “Continuing to aggressively invest in our infrastructure is an important element in Union Pacific’s unwavering safety commitment.”

Union Pacific’s planned investment in Arkansas covers a range of initiatives, including $81 million to maintain railroad track, $8 million to enhance signal systems and $8 million to maintain or replace bridges in the state. Key projects planned this year include:
• $23 million investment in the rail line between Gould and the border with Louisiana to replace 44 miles of rail and repair the surfaces at 65 road crossings;

• $9.7 million investment in the rail line between Knoxville and Van Buren to replace 65,251 railroad ties and install 28,107 tons of rock ballast. In addition, crews will repair the surfaces at 62 road crossings; and

• $7.1 million investment in the rail line between Hope and Texarkana to replace 50,383 railroad ties and install 21,910 tons of rock ballast. In addition, crews will repair the surfaces at 40 road crossings.

This year’s planned $98 million capital expenditure in Arkansas is part of an ongoing investment strategy. From 2010 to 2014 Union Pacific invested more than $663 million strengthening Arkansas’s transportation infrastructure.

Union Pacific plans to spend $4.2 billion across its network this year, following investments totaling more than $31 billion from 2005-2014. These investments contributed to a 38% decrease in derailments over the last 10 years.

Earlier Thursday, the nation’s largest railroad operator announced plans to invest $27 million to improve transportation infrastructure in Oklahoma, and another $72 million to upgrade its railway and transportation systems in Louisiana.

The infrastructure upgrades were announced by Union Pacific even though the Omaha, Nebraska-based railroad has furloughed about 900 railroad workers because shipping demand has been weaker than expected.

Last month, Union Pacific began reducing rail crews and storing some locomotives because shipping volume had been weaker than expected this year.

In Arkansas, Union Pacific operates more than 1,325 miles of track across the state and has nearly 3,000 employees with an annual payroll exceeding $246 million 2014. As Arkansas’ largest railroad, Union Pacific serves the food processing, forest products and poultry industries. Major commodities hauled by the railroad giant include soybeans, cotton, rice, bauxite, manganese and glass. In addition, the railroad is a vital link for western coal used by local electrical generating plants.

Union Pacific’s operational hub in Arkansas is located in North Little Rock, where the railroad operates the Downing B. Jenks locomotive repair shop — the largest and most modern on the system. North Little Rock is also home to Union Pacific’s second-largest freight car classification yard.

Beyond North Little Rock, Union Pacific operates a $70 million state-of-the-art, 600-acre intermodal facility at Marion (10 miles west of Memphis) and a classification yard at Pine Bluff. Amtrak operates passenger train service over Union Pacific’s main line through Arkansas, connecting St. Louis and Texas.

According to company officials, Union Pacific invested more than $663 million in Arkansas transportation infrastructure from 2010 to 2014. Nationwide, Union Pacific has nearly 49,000 employees and is the largest railroad transportation company in North America, covering 23 states in the western two-thirds of the United States.

In the first quarter, Union Pacific reported net income of $1.2 billion, or $1.30 per diluted share, compared to $1.1 billion, or $1.19 per diluted share, in the first three months of 2014. Operating revenue for the quarter was of $5.6 billion, same as a year ago.