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Alltel restructures as buyout nears completion Sunday, Nov 4, 2007 By Roby Brock Alltel unveiled its new management structure and its new board of directors as the company moves toward a Nov. 16 deadline to become a privately owned firm. The Little Rock-based wireless telecom also says it plans to participate in an upcoming wireless auction touted as crucial to competition in the wireless industry. Scott Ford will remain as CEO and Jeff Fox will assume new responsibilities as the chief operating officer once Alltel becomes private in the $26 billion deal. Kevin Beebe, who has been a company president for Alltel, will leave the firm, but remain in a consulting capacity for two years. Alltel will also form a new board of directors to guide it under its private owners, TPG Capital and Goldman Sachs. Scott Ford will remain on the board, which is additionally comprised by representatives from the two buyout firms, TPG Capital and Goldman Sachs. Alltel further disclosed that it will participate in an upcoming government auction of wireless spectrum that many view as crucial to supporting next generation wireless technologies. The 700 MHz spectrum will require companies to bid for airwaves that will carry signals that could support advanced features for wireless devices. Alltel will commit at least $750 million to purchase licenses in the late-January auction. Fayetteville Shale drives SW Energy net income Southwestern Energy saw its net income rise to $51 million in the third quarter of 2007 versus $33.5 million one year ago in large part due to its activity in Arkansas' Fayetteville Shale play. Revenues for the Houston-based natural gas company rose to $297.6 million during the quarter. "We continue to see improving results across our organization," said CEO Harold Korell. "In our Fayetteville Shale play, we are drilling better wells than we were a few months ago." Southwestern says it has focused the majority of its Fayetteville Shale drilling activity in the areas that have been identified as better performing to date. On Sept. 30, the company held approximately 902,000 net acres in the Fayetteville Shale play area. Deltic Timber posts $245,000 quarterly profit Deltic Timber saw its net income fall a dramatic 96 percent in the third quarter compared to one year ago. The El Dorado-based timber and real estate firm posted third quarter earnings of $245,000 versus quarterly profits of $6.4 million one year ago. Sales for Deltic fell more than 41 percent during the quarter to $25.5 million, primarily due to a lack of commercial sales activity. One year ago, Deltic's revenues topped $43.6 million. CEO Ray Dillon said that a "depressed environment" in the lumber and real estate markets hurt the company. Nationwide troubles in the housing and construction industry have hurt companies like Deltic. Lower commercial real estate activity in the company's lucrative Chenal Valley development also negatively impacted sales and earnings. Housing woes bite First Federal earnings The Northwest Arkansas housing market impacted First Federal Bancshares of Arkansas' bottom line in the third quarter. The Harrison-based savings and loan holding company posted net income of $301,000 during the reporting period, down from $1.7 million one year ago. The company wrote off $1.3 million in loans related to residential subdivision projects and a commercial shopping center development. In the first half of 2007, First Federal wrote off $1.4 million in loans involving two subdivision developments in Northwest Arkansas. CenturyTel sees profits rise Arkansas' second largest telecommunications provider, CenturyTel, posted profits of $113.2 million, up from $76.3 million from a year ago. Revenues for the Monroe, La., carrier rose to $708.3 million during the quarter, a 14 percent gain from a year ago when revenues topped $619 million. "Nearly 40 percent year-over-year growth in high-speed Internet customers, the acquisition of the Madison River properties, and the recognition of access revenue settlements drove solid financial results for the quarter," said CEO Glen Post. Rheem makes temporary layoffs in Fort Smith Low sales figures have caused Rheem's Fort Smith-based heating and cooling division to temporarily cease production for a total of three weeks over the Thanksgiving, Christmas and New Year holidays. No word on the exact number of workers affected, but Rheem says it is only keeping a small number of its 1,225 employees on board through the holiday down-cycle. A spokesman for the privately held company said the downturn in the housing market has impacted the company's operations. Georgia-Pacific lays off 300 in Crossett Georgia-Pacific has laid off about 300 workers at its Crossett plant due to deteriorating housing market conditions. The layoffs are immediate and will be re-evaluated in February, according to a company representative. Georgia-Pacific employs more than 2,100 at its Crossett facilities. Pocahontas lands two projects Dynarex Corp., a leading manufacturer of disposable medical products, will open a distribution center in Pocahontas investing $1.5 million and employing 40 people. Dynarex plans to have its Pocahontas distribution facility fully operational by January. Employees will consist of both warehouse employees and managers. In addition to the Dynarex announcement, ITW Paslode, a leading manufacturer and marketer of cordless and pneumatic fastening systems, announced plans to expand its existing manufacturing facility in Pocahontas. The company will add 20 new positions, bringing total employment at its Pocahontas plant to more than 140 people. Bates plant in Jonesboro 'gets the boot' Bates Footwear, which has factory operations in Jonesboro, has landed another military contract. Bates has been awarded a $2.2 million government contract with U.S. Special Operations Command to manufacture 10,000 pairs of Tora Bora combat boots. The boots are specifically engineered for soldiers operating in mountain warfare conditions. The company says its Jonesboro facility and two plants in Michigan will fulfill the order. Odom's expands Little Rock facility Odom's Tennessee Pride announced plans to expand its processing facility in Little Rock, adding 14 new positions, bringing total employment in Little Rock to more than 330 people. Odom's Tennessee Pride has been producing sausage products for more than 60 years and has production plants in Little Rock and Dickson, Tenn. The Little Rock facility has been in operation since 1979. Arkansas fuel distributor sells Consolidated Medical Management Inc. (CMMI) will purchase Troutman Oil Co. and US Fuel International, both privately owned companies headquartered in Austin, Ark. The deal is valued at $6.9 million in cash, stock and debt. Troutman Oil distributes fuel to retail outlets throughout Arkansas and owns and operates 12 branded US Fuel stations in the Midsouth. CMMI is a publicly traded wholesale fuel distributor and fuel terminal operator based in Houston, Texas. Conway firm bought by Michigan company First Mercury Financial Corp. of Southfield, Mich., will acquire all of the outstanding stock of American Management Corp. (AMC) of Conway. AMC is a privately held specialty insurance firm. It produced about $100 million in premiums in 2006, according to a company release. The majority of its production focuses on petroleum marketers. Financial terms of the transaction, which is expected to close in early 2008, were not disclosed. Current AMC company leader Stephen Strange will continue as president. AG certifies lottery proposal Attorney General Dustin McDaniel has certified the ballot language of a proposed statewide lottery initiative that would fund money for college scholarships. The certification gives the proposal's supporters permission to collect more than 78,000 signatures to place the measure on next year's general election ballot. ------- Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net. |
