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ROBY'S BIZBLOG
Breaking business and political news from around Arkansas
Editor: Roby Brock |
roby@talkbusiness.net
Wednesday, July 23, 2008 - 4:24:08 PM
ADOPTION LIMITATION PETITION GIVEN 30-DAY EXTENSION
Secretary of State Charlie Daniels today notified the Family Council Action Committee that their submitted ballot initiative petitions have an insufficient number of valid signatures. However, state law will allow for more signatures to be collected to potentially qualify the measure for a November general election vote.
On July 7, the group submitted petitions with 65,952 signatures for an initiated act to provide that an individual who is cohabitating outside of a valid marriage may not adopt or be a foster parent of a child less than eighteen years old.
2,533 signatures were culled, leaving 63,419 to verify, according to Daniels' office. 57,888 were determined to belong to Arkansas registered voters. 61,794 valid signatures, or eight percent of the number of votes cast for Governor in 2006, are required for initiated acts to get on the ballot this year.
Under Arkansas law, the Family Council Action Committee has 30 days from today to collect additional signatures or submit proof that rejected signatures should be counted.
With less than 4,000 to obtain over the next 30 days, there is a strong likelihood that the measure will qualify.
Wednesday, July 23, 2008 - 3:56:53 PM
DELTIC EARNINGS SLIP, SHALE PLAY ASSETS GENERATE INCOME
Deltic Timber Corp. turned in a solid quarter though sales and net income fell slightly from the previous year's second quarter.
El Dorado-based Deltic Timber reported $2.4 million in second quarter profits on revenues of $35.5 million. One year ago, the timber and real estate firm posted a $2.5 million quarterly profit on revenues of $37.9 million.
Ray Dillon, Deltic Timber CEO, noted that the earnings decrease was primarily due to reductions in residential and commercial real estate sales activity.
"I am pleased that the company's reported financial results for the second quarter were positive despite the difficult market conditions that existed for both our real estate and mills segments," Dillon commented.
With timber sales in limbo due to the housing slowdown, Dillon said Deltic will focus on sales of commercial real estate in the group's Chenal Valley development in west Little Rock. Deltic will also continue sales of select non-strategic hardwood bottomland to recreational users.
Deltic also disclosed that during the second quarter, royalty payments from gas wells on the company's acreage in the Fayetteville Shale play increased to "approximately $100,000 per month."
Wednesday, July 23, 2008 - 3:48:07 PM
NEW GAS & OIL GROUP OFFICIALLY FORMS
We told you several weeks ago that Kelly Robbins was leaving his post with the Arkansas Forestry Association to start a new non-profit entity.
Today, official word that the formation of the Arkansas Independent Producers and Royalty Owners Association (AIPRO) has occured. The backing for the group is supported by the exploration and production companies in Arkansas' natural gas and oil industry, according to a press release.
AIPRO mission is "to provide education about the industry, focus on legislative and regulatory issues, and build relationships with people and groups associated with the industry."
Robbins' title with the organization will be executive vice president. "I am humbled by the opportunity to work with and for this industry and look forward to the challenges and rewards that lay ahead," he said.
"AIPRO is fortunate to have hired someone of Kelly's caliber and we look forward to his leadership," said Danny Ferguson, of Southwestern Energy and president of the AIPRO board of directors. AIPRO members include natural gas producers and oil companies and support companies operating in Arkansas, says the release.
Wednesday, July 23, 2008 - 11:44:12 AM
VERIZON OFFERS TO DIVEST IN 18 STATES (UPDATED)
Verizon Wireless is offering to divest airwaves in 85 markets in 18 states as a part of talks with federal regulators over a pending merger with Little Rock-based Alltel Corp.
The move is an effort to appease regulators' antitrust concerns over the proposed merger.
In comments filed with the Federal Communications Commission on Tuesday, Verizon said it is committed to divesting overlapping properties with Alltel in the entire states of North Dakota and South Dakota and in parts of 16 additional states. Arkansas properties would not be impacted by the potential divestitures.
Verizon also promised to give small, rural carriers the option of maintaining any roaming agreements they now have with Alltel after the merger. Verizon said the markets in which it is volunteering to strip holdings are "preliminary" and that it may expand the list following additional discussions with the U.S. Justice Department.
The Verizon-Alltel deal must be approved by both the Justice Department and the FCC before it can be finalized. Yesterday, Alltel CEO Scott Ford said that a year-end closing remained on track.
You can read the full five-page FCC filing at this link. UPDATE: We've just read a report from Stifel Nicolaus research analysts, which pegs the potential divestiture as impacting "roughly 15% of Alltel's 13 million customers." And there is this speculation:
"We continue to believe that the DOJ will approve the merger on a quick time frame, likely in the fourth quarter of 2008. We believe AT&T, Leap, MetroPCS, and rural carriers are likely candidates to pick up those operations."
Talk Business has previously reported that one of the main drivers influencing the Alltel buyout by Verizon centered on a new Presidential administration, which could impact the make-up of the five-member FCC board. The report notes:
"Although we do not believe the change in administration will significantly affect the outcome at DOJ, it could have a significant effect at the FCC. Unless she is reconfirmed, Republican Commissioner Deborah Taylor Tate is set to depart the FCC when the current congressional term ends, creating the possibility of a 2-2 deadlock. This could give Democratic Commissioners Michael Copps and Jonathan Adelstein, both of whom have expressed skepticism about wireless consolidation, considerable leverage to impose conditions, as the 2-2 split gave those two commissioners in the AT&T-BellSouth merger review."
Wednesday, July 23, 2008 - 11:24:21 AM
BEEBE APPOINTS DUNCAN TO G&FC
Governor Mike Beebe has named Ron Duncan of Springdale as the newest commissioner of the Arkansas Game and Fish Commission. His term will expire July 1, 2015. Duncan fills the 3rd Congressional District position replacing Sonny Varnell.
Duncan, 56, started a fishing club in 1982 at Springdale Central Junior High School, where he was a civics teacher. Based on the idea of introducing kids to fishing, the club inspired a national initiative known as the "Hooked on Fishing, Not Drugs" program. The program has produced thousands of similar clubs nationwide.
Inducted into the Arkansas Outdoor Hall of Fame in 2004, Duncan has twice been honored as the Bass Anglers Sportsman Society Man of the Year, and was the National Wildlife Federation Educator of the Year in 1999.
Wednesday, July 23, 2008 - 7:45:27 AM
AT&T Q2 PROFITS UP 31%, WHIRLPOOL NET FALLS 27%
AT&T Inc., Arkansas' largest and the nation's biggest phone company, said on Wednesday its quarterly profits rose, as growth in its wireless division more than compensated for its shrinking traditional landline business.
Second quarter profits rose to $3.8 billion, up 31% from $2.9 billion one year ago. Excluding special items including merger-related costs, AT&T's profits rose to $4.5 billion up from $4.3 billion in the second quarter of 2007. Quarterly revenues for the telecom giant increased 4.7% to $30.9 billion.
AT&T does not provide a state breakdown of its financials. AT&T also reported a net gain of over 1.3 million in wireless subscribers in the quarter. Another international business player with a large Arkansas presence is Whirlpool Corp. The household appliance maker, which has major operations in Fort Smith, posted second quarter net income of $117 million, down 27% from one year ago when profits topped $161 million. Higher raw materials and oil-related costs as well as lower U.S. demand due to a struggling housing and overall economy pinched Whirlpool's profits. Revenues for the Benton Harbor, Mich.-based company cleared $5.1 billion for the quarter, up 5 percent, although its North American unit actually saw a 4% decline in sales versus last year.
Wednesday, July 23, 2008 - 6:58:53 AM
ARKANSAS BEST EARNINGS DROP, REVENUES RISE
Like its state trucking counterparts, Arkansas Best Corp. continued to turn a quarterly profit in tough economic conditions just not as strong as last year.
Fort Smith-based Arkansas Best reported Q2 2008 net income of $16.2 million versus net income of $19.6 million in last year's comparable period. Arkansas Best's quarterly revenues topped $498.5 million, a 7.5% increase over last year second quarter revenues.
The 17% drop in profits was largely blamed on fuel costs, not slowing freight demand. Rising diesel prices were singled out as complicating factor by CEO Bob Davidson, but he also said the company has seen "steadily improved" tonnage changes since the fourth quarter of 2007.
"Essentially there has been little change in the overall freight environment during that nine-month period," said Davidson. "Though this economic decline has not been as deep as others in the past, it appears to be lasting longer."
The company's largest subsidiary, Arkansas Best Frieight, saw an increase in its operating ratio, a key measurement of profitability in the trucking industry. ABF's quarterly operating ratio increased to 94.7% versus 93.2% in the second quarter of 2007. In layman's terms, that means that for every dollar in revenue, the company spent 94.7% of it on expenses.
"We are disappointed by a 150 basis point increase in ABF's operating ratio, although this may be typical of or better than industry results," Davidson added. "On a year-to-date basis, Arkansas Best's net income and ABF's operating ratio are comparable with last year."
Wednesday, July 23, 2008 - 6:43:26 AM
J.B. HUNT DECLARES DIVIDEND
J. B. Hunt Transport Services has announced a regular quarterly dividend on its common stock of ten cents per common share payable to stockholders of record on August 1, 2008. The dividend will be paid on August 15, 2008.
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