Arkansas Business Daily Report

Arkansas Business Daily Reporthttp://www.arkansasbusiness.com/news.aspStories from Arkansasbusiness.com's popular daily e-newsletter and Today's Top Stories section. Includes the latest breaking business news.Copyright 2010 Arkansas Business Limited Partnership. All rights reserved.UPDATE: Storm Drops Record-setting Snow in Central Arkansashttp://www.arkansasbusiness.com/article.aspx?aid=120142.54928.132271http://www.arkansasbusiness.com/article.aspx?aid=120142.54928.132271Cold air is moving across Arkansas, bringing a further hazard to roads already clogged with snow and slush in the northern half of the state.(Weather Forecasts, School Closings & Road Conditions: Visit our news partners <a href="http://www.todaysthv.com/" target="_blank">at Today's THV</a> and <a href="http://www.kfsm.com/" target="_blank">KFSM-TV, Channel 5</a> in Fort Smith for the latest.)LITTLE ROCK  - Cold air is moving across Arkansas, bringing a further hazard to roads already clogged with snow and slush in the northern half of the state.Gov. Mike Beebe closed state offices on Tuesday, as the region is still feeling the effects of a winter storm that took the state by surprise Monday morning.Schools are closed across the region. Authorities are warning that roads that are passable in the morning may be too slick for travel later in the day after the cold air freezes the slush and snow melt.The National Weather Service says another storm system is due Thursday night and Friday, but this one is forecast to bring wintery precipitation to the southern half of Arkansas.(Copyright 2010 The Associated Press. All rights reserved. This material may not be broadcast published, rewritten, or redistributed.) <div> </div> Tue, 9 Feb 2010 08:25:00 CSTBoard Takes Over, to Split Twin Rivers School District http://www.arkansasbusiness.com/article.aspx?aid=120188.54928.132317http://www.arkansasbusiness.com/article.aspx?aid=120188.54928.132317The Arkansas Board of Education has voted to take over and split up the Twin Rivers School District in northern Arkansas.LITTLE ROCK - The Arkansas Board of Education has voted to take over and split up the Twin Rivers School District in northern Arkansas.Monday's decision by the Arkansas Board of Education marks the first time the state has taken over a school district for accreditation violations, said Julie Johnson Thompson, a spokesman for the state Department of Education. Two other school districts - Greenland and Decatur - remain under state control because of fiscal issues in October.A new Twin Rivers administrator should be in place by next week, Thompson said. It isn't yet clear how the district will be split up.The board's decision to take over the district came just minutes after Twin Rivers' Superintendent David Gilliland announced his resignation. He hoped doing so would prompt the board to allow the district to continue despite failing to meet state education standards for more than two years."Obviously, I did not supervise well enough to make sure these things were taken care of," Gilliland told the board during its regular meeting. "There are things that cannot be fixed. I think there are some that can be. I could have been a better steward."Though Gilliland took responsibility for the problems, he said the geographically isolated nature of the district, just west of Pocahontas, and having schools in two counties contributed to district troubles.Despite that, Gilliland said the district has good teachers and eager School Board members who are "trying desperately to keep that school."The district has only existed since July 2004 when the Williford and Randolph County school districts consolidated.The district has been on probation since the 2007-08 school year. State law requires schools and school districts to meet all accreditation standards within two years of being placed on probation or face penalties.A comprehensive review of the district's records in D ecember and January showed that the district's problems continued into the 2009-10 school year, Charity Smith, assistant commissioner for academic accountability, told the board Monday. She said it was not teaching the 38 core courses that high schools must teach annually.The state review also revealed that because of this, three students would not be eligible to graduate in May as expected.Education Commissioner Tom Kimbrell said during the meeting that the state would work with nearby school districts to help remedy that issue so that the students could graduate.Smith also said the district did not have a professional development plan and that a teacher working in the district was not in compliance with licensing requirements.(Copyright 2010 The Associated Press. All rights reserved. This material may not be broadcast published, rewritten, or redistributed.)Tue, 9 Feb 2010 08:19:21 CSTP.A.M. Transportation Reports $3.9 Million 4Q Losshttp://www.arkansasbusiness.com/article.aspx?aid=120187.54928.132316http://www.arkansasbusiness.com/article.aspx?aid=120187.54928.132316P.A.M. Transportation Services Inc. of Tontitown reports a fourth-quarter net loss of $3.9 million, or 42 cents per share, a narrower loss than the $11.4 million, or $1.19 per share, the trucking firm reported during the same quarter last year.P.A.M. Transportation Services Inc. of Tontitown on Tuesday reported a fourth-quarter net loss of $3.9 million, or 42 cents per share, a narrower loss than the $11.4 million, or $1.19 per share, the trucking firm reported during the same quarter last year.The publicly traded company (Nasdaq: %%PTSI%%) also reported a 3.7 percent drop in operating revenues, which fell to $80.8 million from $84 million during the same quarter last year."Despite progress made in several areas, there is no getting around the fact that we suffered a loss in the fourth quarter and for the year," Daniel H. Cushman, company president, said in a news release. Cushman said a $4.2 million write-down on a group of tractors and a $750,000 worker's compensation claim contributed to the loss. The company also saw "continued rate depression caused by industry overcapacity" and an increases in fuel costs.For all of 2009, the company's loss amounted to $11.4 million, or $1.19 per share, less than the $18.7 million, or $1.94 per share, loss the firm reported for 2008.Still Cushman said he was happy with the company's progress on several fronts. He said P.A.M. has been working to diversify, focusing on retail, manufacturing and consumer products, while nurturing relationships with automotive. The company says it's also targeting Mexico, hired a team of "experienced sales professionals with proven track records" and worked to operate more efficiently and cut costs.  Tue, 9 Feb 2010 07:58:32 CSTWindstream, Iowa Telecom Settle Shareholder Lawsuithttp://www.arkansasbusiness.com/article.aspx?aid=120161.54928.132290http://www.arkansasbusiness.com/article.aspx?aid=120161.54928.132290Windstream Corp. of Little Rock and Iowa Telecommunications Services Inc. of Newton, Iowa said Monday they have settled a lawsuit brought by Iowa Telecom shareholders over the two firms' plans to merge.Windstream Corp. of Little Rock and Iowa Telecommunications Services Inc. of Newton, Iowa said Monday they have settled a lawsuit brought by Iowa Telecom shareholders over the two firms' plans to merge.<a href="../article.aspx?aID=118552">Windstream announced in November a $1.1 billion deal deal</a> to acquire Iowa Telecom, which will allow it to expand into Iowa and Minnesota, adding about 256,000 access lines, about 95,000 high-speed Internet customers and about 26,000 digital TV customers.The deal also drew a class-action shareholder lawsuit against Iowa Telecom's CEO Alan Wells and each of the company's board of directors claiming the executives breached their "fiduciary duty" to shareholders by agreeing to be acquired by Windstream at a price the lawsuit said undervalues the company's worth.The lawsuit was filed by Iowa Telecom shareholder Joseph Haen filed the lawsuit in federal court in Des Moines.In <a href="http://www.marketwatch.com/story/iowa-telecom-announces-settlement-of-merger-litigation-2010-02-08?reflink=MW_news_stmp" target="_blank">a news release</a> on Monday, the two companies said they settled the lawsuit while denying that they violated "any law or breached any duty to shareholders of Iowa Telecom or anyone else ..."The settlement does not change terms of the acquisition. But the companies said they have agreed to make "certain revisions to the disclosure in the proxy statement to be mailed to Iowa Telecom's shareholders in connection with the approval of the merger, which revisions were proposed by counsel for the plaintiffs."The companies did not provide details on the disclosure. Mon, 8 Feb 2010 16:54:12 CSTArkansas Senate, House Split Over Campaign Fundraising http://www.arkansasbusiness.com/article.aspx?aid=120160.54928.132289http://www.arkansasbusiness.com/article.aspx?aid=120160.54928.132289Members of the Arkansas Senate will be allowed to raise funds for re-election during the fiscal session that started Monday, while House members will not be able to do the same.LITTLE ROCK - Members of the Arkansas Senate will be allowed to raise funds for re-election during the fiscal session that started Monday, while House members will not be able to do the same.Each legislative body makes its own rules for how its members have to conduct themselves during a session. The House Rules Committee voted Monday to keep in place a policy that does not allow members to raise campaign money during a session. Meanwhile, the Senate voted to allow its members to raise money.Rep. Bobby Pierce, D-Sheridan, said the House decision was a simple one."It comes down to what the rule says," Pierce said.State Sen. Jim Luker said he supported allowing fundraising because an in-session ban would put members of the upper chamber at a disadvantage."Otherwise, you are preventing any current member from any reasonable opportunity to raise money for these congressional offices," Luker said. "If you're frozen out , starting today through your date of adjournment ... you won't even be able to raise money to pay the filing fee."The weeklong filing period for state and federal offices in Arkansas begins March 1. The week promises to be a lively one, as three of the state's four U.S. House districts won't have incumbents running, and Republicans are already running hard against incumbent Democrat Sen. Blanche Lincoln.Sen. Larry Teague said he opposed allowing fundraising because of how it would appear to the public."I just don't like the perception of being up here working and voting and doing that," Teague said. "I don't like the picture it gives."House Rule Committee Chairman Robert Moore, D-Arkansas City, said there is a ban on fundraising during a session, but there was a question about whether that included the new fiscal session, the first of which began Monday.Moore had polled committee members before their brief meeting Monday afternoon, in whic h the ban was upheld on a voice vote. He said the ban has the backing of House Speaker Robbie Wills, D-Conway, who is running for the 2nd District congressional seat being vacated by Democrat Vic Snyder.Wills, who says he's already pulled in $100,000 for his campaign, earlier said he would not raise money during the session. State Sen. Joyce Elliott, D-Little Rock, is also seeking the seat and said she would raise money if the rules allowed.Two state senators who are running for the Republican nomination for a U.S. Senate seat say have said they won't raise money during the session, Gilbert Baker of Conway and Kim Hendren of Gravette.(Copyright 2010 The Associated Press. All rights reserved. This material may not be published, rewritten, broadcast or distributed.)Mon, 8 Feb 2010 16:45:39 CSTArkansas Assistant AG John Adams Announces Bid for Congresshttp://www.arkansasbusiness.com/article.aspx?aid=120159.54928.132288http://www.arkansasbusiness.com/article.aspx?aid=120159.54928.132288An assistant attorney general says he's seeking the Democratic nomination for a central Arkansas congressional seat.LITTLE ROCK (AP) - An assistant attorney general says he's seeking the Democratic nomination for a central Arkansas congressional seat.John Adams, who works in the criminal division of the attorney general's office, announced Monday that he's running for the 2nd district. Democratic Rep. Vic Snyder announced last month that was retiring at the end of his term and would not seek re-election.Adams is the fourth Democratic candidate run for the seat since Snyder announced his retirement. House Speaker Robbie Wills, state Sen. Joyce Elliott of Little Rock and former Snyder chief of staff David Boling are also running for the House seat.(Copyright 2010 The Associated Press. All rights reserved. This material may not be published, rewritten, broadcast or distributed.)  Mon, 8 Feb 2010 15:43:41 CST2 Northwest Arkansas Real Estate Firms to Merge, Create New Gianthttp://www.arkansasbusiness.com/article.aspx?aid=120158.54928.132287http://www.arkansasbusiness.com/article.aspx?aid=120158.54928.132287Coldwell Banker Faucette Real Estate of Fayetteville and Harris McHaney Realtors of Rogers are working on a merger they say will create the largest Arkansas-owned real estate firm in the state. Principals hope to have the deal inked by Feb. 22.Coldwell Banker Faucette Real Estate of Fayetteville and Harris McHaney Realtors of Rogers are working on a merger they say will create the largest Arkansas-owned real estate firm in the state. Principals hope to have the deal inked by Feb. 22. Financial terms of the deal were not disclosed, but George Faucette, president and owner of Coldwell Banker Faucette, said he and Pat Harris, owner of Harris McHaney, will be 50-50 partners in the new firm. The company will be Coldwell Banker Harris McHaney & Faucette, and will be headquartered in Fayetteville. "We're both very excited about it," Faucette said. There are synergies and economies of scale that will be realized for both firms and for the agents, he added. The two companies will likely consolidate two offices, leaving six with the new company, and Faucette said no one will be laid off immediately. Clark Long & Associates-Weichert Realtors and The Griffin Company, two other well-known northwest Arkansas real estate firms, <a href="article.aspx?aID=118851">merged in December.</a> Both Coldwell Banker and Harris McHaney were near the top of the annual list of largest real estate firms in northwest Arkansas, compiled by the Northwest Arkansas Business Journal each March. Coldwell Banker Faucette was ranked No. 2, with 2008 sales volume of $220.94 million, and Harris McHaney was ranked No. 3 with $200 million in sales volume. The firms had 120 and 200 agents, respectively, with a combined 123 million-dollar producers. Lindsey & Associates Inc. of Fayetteville was ranked No. 1 on the same list with $348.35 million and 183 agents, 34 of which were million-dollar producers. For 2009, in terms of transactions, the two companies combined had about a 16 percent market share, or about 2,100 units of business. Faucette defined units of business as the number of transactions where the companies represented either the buyer or the seller. Combined sales volume for both companies was just below $400 million in 2009, he said. There will be about 270 agents at the new firm. Mon, 8 Feb 2010 15:20:56 CSTDow Closes Below 10,000 for First Time in 3 Monthshttp://www.arkansasbusiness.com/article.aspx?aid=120157.54928.132286http://www.arkansasbusiness.com/article.aspx?aid=120157.54928.132286Concern about mounting debt in Europe has pushed the Dow Jones industrials below 10,000.NEW YORK - Concern about mounting debt in Europe has pushed the Dow Jones industrials below 10,000.The Dow closed below the psychological barrier for the first time in three months Monday as financial stocks pulled the market lower.Mounting debt problems in several weaker European economies including Greece, Portugal and Spain have raised new questions about the health of the global financial system.According to preliminary calculations, the Dow has ended down 104 at 9,908. The Standard & Poor's 500 is down 9 at 1,057. And the Nasdaq composite index is off 15 at 2,126.Two stocks fell for every one that rose on the New York Stock Exchange. Volume came to 1.1 billion shares compared with 1.6 billion shares Friday.Mon, 8 Feb 2010 15:15:13 CSTPanel Rejects Weiner-Delight School Mergerhttp://www.arkansasbusiness.com/article.aspx?aid=120155.54928.132284http://www.arkansasbusiness.com/article.aspx?aid=120155.54928.132284The Arkansas Education Board says the Weiner and Delight school districts are too far apart for a long-distance consolidation to work.LITTLE ROCK - The Arkansas Education Board says the Weiner and Delight school districts are too far apart for a long-distance consolidation to work.The panel voted unanimously Tuesday to deny a request by the districts to merge. The districts wanted to use distance learning to expand course offerings.Board Chairman Naccaman Williams of Springdale said the panel was unconvinced that the merger would provide the best education for the children.The Delight School District in southwest Arkansas is 14 miles from the Murfreesboro School District. That prompted Williams to ask what the problem was to prevent Delight from looking there first.Both Delight and Weiner are below the 350-student minimum for districts to continue operating.Mon, 8 Feb 2010 14:31:54 CSTWindstream Completes NuVox Purchasehttp://www.arkansasbusiness.com/article.aspx?aid=120154.54928.132283http://www.arkansasbusiness.com/article.aspx?aid=120154.54928.132283Windstream Corp. of Little Rock said Monday that it had completed its $647 million acquisition of NuVox Inc., a private competitive local exchange carrier based in Greenville, S.C.Windstream Corp. of Little Rock said Monday that it had completed its $647 million acquisition of NuVox Inc., a private competitive local exchange carrier based in Greenville, S.C.Windstream issued about 18.7 million shares of its common stock valued at about $187 million and paid about $280 million in cash as part of the deal, <a href="../article.aspx?aID=118110&view=all">announced last year</a>. Windstream also repaid about $180 million of NuVox's total outstanding net debt. Windstream financed the acquisition through proceeds from a debt offering in December."NuVox is a great strategic fit for Windstream. The NuVox markets are contiguous to our properties, and the transaction bolsters our strategy to focus more on the business customer," Jeff Gardner, Windstream president and CEO, said in a news release. "NuVox is a very strong company that has steadily delivered revenue growth and improved margins. These markets have the potential for good growth opportunities in the future."NuVox, a competitive local exchange carrier, offers IP-based voice and data services to about 90,000 business customers. It has about 1,700 employees, including about 700 in Greenville.Windstream said it expects to keep "a significant employment presence in Greenville" to manage sales and service for the company's combined competitive local exchange properties after the deal closes. For the 12 months ending June 30, NuVox generated $561 million in revenue and $115 million in operating income before depreciation and amortization.Windstream is an S&P 500 company that provides phone, high-speed Internet and high-definition digital TV services in 16 states. The company also offers IP-based voice and data services and advanced phone systems and equipment to businesses and government agencies.Windstream has about 3 million access lines and about $3.1 billion in annual revenue. It has about 7,100 employees. Mon, 8 Feb 2010 13:37:10 CST