Montgomery Business Journal – July 2010

JULY 2010

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Contents

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Executive Editor’s Column

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Calendar

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Investor Profile: Rheem Water Heating

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Q&A with Montgomery Regional Airport Executive Director Phil Perry

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Member Profile: Sabel Steel

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Impact of sports as economic development

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Hausted chooses Montgomery for headquarters

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Biscuits baseball is big business

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Business Buzz

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New Members

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Members on the Move

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Ribbon Cuttings & Ground Breakings

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Economic Intel

July 2010 Montgomery Business Journal

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THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER

Randall L. George EXECUTIVE EDITOR

Tina McManama MANAGING EDITOR

David Zaslawsky COPY EDITOR

Michelle Jones DESIGN

Copperwing Design PHOTOGRAPHY

Jamie Martin ADVERTISING:

Robert Edmonds 334-221-7948 mbjsales @montgomerychamber.com ON THE COVER:

Sherrie Myers, owner of the Montgomery Biscuits

Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post OfďŹ ce Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal is published monthly except for the combined issue of November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Application to Mail at Periodicals Postage Rates is Pending at Montgomery, Alabama.

POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com.

The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

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Montgomery Business Journal July 2010

July 2010 Montgomery Business Journal

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EXECUTIVE EDITOR’S COLUMN July is the Montgomery Business Journal’s one-year birthday. And if you were wondering what to give the MBJ – how about a few minutes of your time to tell us what you think about the magazine? Just send an email to mbj@montgomerybusinessjournal.com with your comments, or mail us at Montgomery Business Journal, Montgomery Area Chamber of Commerce, P.O. Box 79, Montgomery AL 36101.

What do you like? What don’t you like?

Is there something you’d like us to add, or something we need to cut?

Look through this, and past issues, and tell us how you feel about our regular features.

What about the cover stories?

And if you have ideas for future stories, we want those ideas, too.

Are there things we could add that would help you grow your business?

An economic indicator we could publish?

Are there stories out there we need to tell?

Remember, this is a local business magazine designed for Montgomery Area Chamber of Commerce Members – so we need to know what you would like to have in your magazine.

We will read every email and letter; review every comment – good and bad. Your input will be used as we plan for 2011.

From everyone at the Chamber, thank you for making the MBJ a part of your life this past year. Here’s to another year of telling the story of business and community progress and growth in Montgomery and the River Region!

Tina McManama, EXECUTIVE EDITOR VICE PRESIDENT, MARKETING AND COMMUNICATIONS MONTGOMERY AREA CHAMBER OF COMMERCE

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Montgomery Business Journal July 2010

Calendar Montgomery Area Chamber of Commerce Events

JULY

AUGUST

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60 MINUTE COFFEE Sponsored by Alabama Artificial Limb & Orthopedic Service, Inc. 8 AM @ Fire Station #3 4010 Carmichael Road, Montgomery Free event, exclusively for Chamber Members LUNCHWORKS FROM TEXT 2 TWITTER Noon @ Small Business Resource Center 600 S. Court Street, Montgomery Registration: www.montgomerychamber.com/lunchworks BACK TO SCHOOL BREAKFAST Presenting Sponsor: Information Transport Solutions 8 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Registration: www.montgomerychamber.com/breakfast BUSINESS AFTER HOURS Sponsored by Alley Bar 5 PM @ Alley Bar 166 Commerce Street, Montgomery Free event, exclusively for Chamber Members.

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SMALL BUSINESS LOAN WORKSHOP 12 PM @ The Small Business Resource Center 600 S. Court Street, Montgomery Registration: www.montgomerychamber.com/loan 60 MINUTE COFFEE Sponsored by Aronov Realty Management Inc. 8 AM @ Eastdale Mall 1000 Eastdale Mall, Montgomery Free event, exclusively for Chamber Members BUSINESS AFTER HOURS Sponsored by Dreamland Bar-B-Que 5 PM @ Dreamland Bar-B-Que 101 Tallapoosa Street, Montgomery Free event, exclusively for Chamber Members.

Convention Calendar compiled by the Montgomery Area Chamber of Commerce Convention and Visitor Bureau

JULY 12-15

American Association of State Highway & Transportation Officials

13-14

Alabama Community Healthy Marriage Initiative

22-25

American Advertising FederationMontgomery Leadership Conference

27-31

Ninth District AME Christian Education Congress Convention

AUGUST 14-17 20-22 30-SEPT2

Alabama Governor’s Conference on Tourism Buckmaster Expo Air Force Information Technology Conference

July 2010 Montgomery Business Journal

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Investor Profile

Rheem Water Heating Vice President and General Manager Peter Reynolds

GETTING INTO

HOT WATER Whether it’s a cool April night or a steamy July day, there’s one thing you can count on after a game at Riverwalk Stadium: Dozens of players and staff will be taking a shower.

by David Zaslawsky

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Montgomery Business Journal July 2010

R

and gas units. Some of the commercial storage water heaters have capacities of 175 gallons compared to typical residential units that are 40 to 50 gallons.

The company also has a customer care center in Montgomery and its division head office near the manufacturing facility.

And they have Rheem Water Heating to thank for their hot water on demand. The Montgomery-based manufacturer keeps the showers running hot at Riverwalk Stadium.

Ofcourse the players don’t care about that, and are hardly even aware of it. In fact, the company that employs 1,000-plus people and is one of the region’s largest manufacturers keeps a pretty low profile by design.

“It’s our culture not to self aggrandize; we don’t boast, preach or brag about our success,” said Peter Reynolds, vice president and general manager of Rheem Water Heating. “We have a servant leadership mentality that is focused as much on serving our employees and our customers as there is in building up our own image.”

The company has three facilities in Montgomery, including one at Gunter Industrial Park, that employs about 850 people. The Rheem facility in Montgomery is the company’s water heating division headquarters.

Rheem, which was recently named a finalist in Alabama Manufacturer of the Year’s largecompany category, has been the exclusive supplier of water heaters to Home Depot for 10-plus years.

The Montgomery manufacturing plant, which has been expanded three times and is about 675,000 square feet, has a capacity of producing up to 10,000 units a day and has produced that many at times during peak demand, Reynolds said.

The heavy-duty commercial products are made solely in Montgomery for use by hotels, health clubs, dormitories and apartment buildings. Rheem manufactures both electric

“I think the biggest impact we have is that not only are we a manufacturer, but we have our division head office here so we have a very good cross-section of what I would call manufacturing blue-collar jobs and whitecollar jobs,” Reynolds said.

“We have our research and development facilities headquartered here; we have our IT infrastructure here; and we have our call center for our entire water heater division here. We’ve been attracting and employing more skilled jobs and more technical jobs as we’ve grown our research and development requirements – adding brain power at a faster rate than muscle power.”

One of the things Reynolds says he is most proud of is that no employee has been laid off in the company’s entire 37-year history.

He said there have been times when days were taken out of production, “but we desperately don’t want to lose the expertise and experience we have in our work force.”

He does boast about topping 1 million hours without an accident. That milestone is continuing.

“We’ve also had what I would say is a very conservative corporate culture, which has imprinted itself at the division level.”

RHEEM WATER HEATING NUMBER OF EMPLOYEES

1,100

NUMBER OF FACILITIES IN MONTGOMERY

3

PRODUCTS

COMMERCIAL AND RESIDENTIAL STORAGE WATER HEATERS

Reynolds said the company’s low profile in the River Region may also stem from being a guest.

“When I first moved here I was told very, very honestly and sincerely that I will always be welcomed here in Alabama, but I will always be a guest,” said Reynolds, who is from Canada and was with Rheem in Chicago when the company moved some operations to Montgomery.

“I think as a company we felt the same thing coming here from Chicago,” Reynolds said.

“We did not want to bring a northern attitude to a southern community. We wanted to come here and become engaged in the community and be a part of it. We’ve done a lot to try and be gracious guests.”

Rheem plays an active role in the community, donating $100,000-plus a year to local charities and organizations.

“We actively support a laundry list of what we see are important issues – the most significant one is the education side of the business,” Reynolds said. “We need to have a good public education system for our employees. Partners in Education is an on-going function that we support.” •

July 2010 Montgomery Business Journal

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UNIQUE LANDLORD Q&A WITH PHIL PERRY Phil Perry is the executive director of the Montgomery Regional Airport. He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky

Perry: Being responsible for the day-to-day activities and operations of Montgomery Regional Airport on both the civilian side and the military activities that take place out here.

Perry: Our operating budget last year was $4.8 million. We operate just like a small business – actually much more like a small business than a government entity. Historically, airports have operated somewhat like a utility in that we know we are almost a monopoly. There is only one commercial service airport in Montgomery and in most cities unless you are going to really large cities. The business model that the airlines operate under has changed in the last 40 years with the deregulation of the airline business.

MBJ: Could you please elaborate about those day-to-day activities?

MBJ: When you say you operate in a similar manner as a utility, what does that mean?

Perry: In simple terms it means providing a safe, secure and convenient place for people to transition from land-based transportation to air transportation. An executive director’s position is that of being a facilities manager – it’s being a landlord of a very specialized piece of real estate.

Perry: Historically, we’ve looked to our primary tenant, which is the airlines, to supply us with the capital to keep the place running. That’s changed a little bit. We now have to think a little bit differently because the airlines have lost money over the years and continue to do so and I don’t see that changing in the near future. You are seeing some switching in how airports operate – much more like a small business than operated like a utility of a quasigovernmental entity.

Montgomery Business Journal: What are your responsibilities as executive director of the Montgomery Regional Airport?

Phil Perry is the executive director of the Montgomery Regional Airport.

MBJ: How are you a landlord?

Perry: We rent space to the airlines. We work out agreements for the use of property with the Air National Guard and the Army National Guard; with our corporate hanger tenants.

Everyone is treated as a tenant of ours. We own the property; we own the facilities; and they pay us to use it. We’re a not-for-profit and last year was clearly a not-for-profit operation.

We’re not here to make money, but we’re here to try and sustain the operations we have.

MBJ: How much money do you receive from your tenants?

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MBJ: How else does the airport receive revenue?

Perry: We have three sources of revenue: Parking is first. It is our No. 1 revenue generator and that’s true for almost every commercial service airport.

MBJ: How much money is generated from parking fees?

Perry: Over $1 million a year – probably closer to $1.5 million, I hope, this year. The airlines and the car rentals are second and third depending on the year. This year is going to be car rentals second and airlines third. The car rentals provide a percentage of gross (sales).

When you rent a car and you’ve probably seen this before, the rates at airports are sometimes higher (than other locations).

MBJ: Are there other sources of funding?

Perry: We also get money from our corporate hangers; money from the fixed-base operator.

We also get money from Subway, which is our only vendor of food on the unsecured side and then we have Montgomery Muggs on the secured side that sells coffee, Danish and that sort of thing. All these other tenants also make up a portion of our operating (budget).

MBJ: Does the airport receive city, state or federal funding?

Perry: The answer to your question this year would be yes. That is not a typical answer.

Whenever you buy a ticket to fly out of Montgomery or any other airport, 10 percent of the cost of that ticket goes into the Airport and Airway Trust Fund in Washington, where they are kind enough to keep it for me and give me a portion back if I ask real nicely and I have a project they deem worthy. It has to be an infrastructure project. Last year, we concluded overlaying our short runway, which is 4,010 feet long. This year, we finished overlaying our main runway, which is 9,010 feet long and both are 150 feet wide. To do a project like that, which is a $5 million project for one runway, would be nearly impossible to do just on our operating revenues. The FAA administers a program called the Airport Improvement Program (AIP) and under that program we submit an application to the FAA. They have come up with a wildly concocted formula to figure out how much we get back from (the tickets purchased by passengers flying out of Montgomery). We get somewhere between $1.5 million and $2 million a year in federal money coming from the Airway Trust Fund. This year, we will see some state money because we asked for some to help pay for the intermodal facility that is under construction out in front of the terminal. We’re getting some state money to help pay for the local portion of that. That was a different

grant. That was paid for by the Federal Transit Authority. It is a $5 million project, but it’s an 80-20. I had to come up with $1 million. That was a little hard for us in a time when we were seeing business travel decline and the economy start to drop off. We weren’t seeing a lot of increases in revenue. The state came up with $500,000 to help us meet our obligation and through another grant came up with $300,000. That meant the airport’s obligation was $200,000 and that’s much more doable for us.

MBJ: Would you explain what the intermodal facility is?

Perry: When we say intermodal facility – that’s just the easiest way to describe it. The project involves so many different things. It all has to do with the mix of ground transportation, both public and private; and air transportation.

You have people driving out to the airport.

You have cabs transporting people; you have limousines taking individuals; you have buses coming out; you have trucks picking up air cargo or delivering supplies to tenants in the terminal. You have this mix of people coming out here and you also have city buses coming through. The facility that is being built is really a comfort station for our cab and limo drivers, where they will be able to stage and only have one cab that has to queue up to the front of the building. There will be a video monitoring system so they will be able to see when the cab in front pulls away and the next one will queue down front. There also is a call system if there is no cab out there for some reason.

We had a problem with so many vehicles passing in front of the building and we also had no place for our cab drivers to get out of the cab and take a break from the heat or from the cold.

rental cars in one lot on the east side. You will exit out the east baggage room door and you will be under a covered walkway all the way to the edge of the rental car lot, where it’s all consolidated. We point every rental car customer in one direction. We feel like it’s a pretty good solution to the (earlier) problem.

The canopies you see under construction will cover all the handicapped (parking) spaces and it also extends out into the lot to give you a 20-foot wide canopy that will help shelter you from inclement weather when you’re walking in.

MBJ: These projects are customer-service oriented, trying to create a more pleasant visit for travelers.

Perry: It’s two things. One, we’re keying in on customer service and efficiency. It’s really both those things and I think to some degree it’s safety. The facility out front will reduce the number of vehicles in front of the building significantly. In addition to this we have added – when you came in on the right-hand side when you first turn off Highway 80 and you make a right turn – there’s a cell phone lot. It gives people the ability to not having to circling around waiting for their party to come out with their bags. You can park on the north side in a cell phone lot and ask your party to call you when they step out of the baggage room.

MBJ: How much does it cost to park in the cell phone lot and will that impact your revenue from parking?

Perry: It’s free up to one hour and hopefully you won’t have to wait that long. At first I was concerned it might take away from our parking revenue. You can park for $1 for one hour in short term.

MBJ: Are there some more retail outlets coming to the airport?

CONTINUED ON PAGE 12

MBJ: Aren’t the rental cars being moved?

Perry: We also had a situation before we started this construction. We had an area cordoned off within our public parking lot that was segregated for rental cars. It was a little confusing. We had National, Hertz and Enterprise in our public parking lot and we had Avis, Budget and Thrifty over in another lot. This created some confusion with the rental car customer, who would typically go out the wrong door. This project puts all

July 2010 Montgomery Business Journal

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THE AIRPORT IS A VITAL ASPECT OF ECONOMIC DEVELOPMENT

by David Zaslawsky Developer Jerry Kyser says there are numerous opportunities for economic development tied to the airport. The president and CEO of Jerry Kyser Builder Inc. and a member of the Montgomery Airport Board of Directors, said one of those is in the undeveloped acreage surrounding the airport.

Anything airport-related would find a good home on that land.

“There are a lot of opportunities for any kind of airline maintenance,” he said. “Air cargo could be a very big factor for the airport.

Warehousing is another opportunity and any type of manufacturing that is related to airports. There are numerous industries that are very advantageous to an airport.”

And more business around the airport could translate to more business inside the airport. It would open the doors to more retail outlets inside the terminals, as well additional flights. Some local officials would like to see a direct flight to Washington, D.C. “The fact that we are a state capital (helps us) because most companies that are going to locate anywhere in Alabama do make some trips to the Capital City,” Kyser said.

While there are several economic opportunites outside the airport – a hotel near the terminal is another idea being batted about – the airport facility itself is an important piece of the economic development pie.

Afterall, you don’t want your airport to be the reason a prospect crosses Montgomery off its list.

Robert Gould, a shareholder with Wilson Price Barranco Blankenship & Billingsley, P.C., and a member of the airport authority board of directors, said presenting the proper image is important.

“Most (recruitment) prospects by their nature are creative, innovative and progressive and by and large, demand the same from the locale they are visiting. Prospects expect a well-managed, clean and progressive airport upon arrival,” Gould said.

That includes everything from efficient bagagge handling, to restaurants, to clean common areas and restrooms to prompt car or taxi service to helpful and polite employees.

“We are trying every day to meet those demands,” Gould said. The terminal is beautiful, he said, and the the construction of the cellphone transportation center and canopies just enhance the airport’s appearance and functionality.

Still, the full potential of the Montgomery Regional Airport has not yet been realized.

Kyser said airport officials and the board are working on a comprehensive plan for the next 20 years.

“In my opinion, a city without a progressive airport is already behind in economic development,” Gould said. “I have often heard that prospects are looking for some reason to eliminate a community and the airport needs to make sure we’re not the elimination factor.”

CONTINUED FROM PAGE 11

Perry: We would love to see some additional rental outlets – some additional food choices.

Those will come. They are purely traffic driven. We will be doing our best to market that as the traffic demand comes back and it is already coming back this year. We’re glad of that and we hope the economy will continue to improve because as the economy goes so goes the airport.

MBJ: What other areas are you pursuing to increase revenue?

Perry: Air cargo is an area we’ve looked at several times. We don’t have the demand yet for air cargo, but we are keeping a good eye toward it with the number of suppliers particularly for Hyundai. We are seeing an increase in air cargo, but it’s typically small airplanes. We are seeing a frequency increase, but tonnage is still light. As that demand grows we want to grow with it. We have a rail spur that is not far off the eastern side that comes almost on my property. We would love to incorporate rail and the ability to possibly ship heavy cargo – air cargo – and transfer to rail and vice versa. You have Interstate 65, Highway 80 and Interstate 85 – the airport is well located for these different types of transportation. The Alabama River is not that far away and whatever can be done to dredge the river and make it accessible – you may end up with the perfect transportation nexus of all forms – air, land and sea could come together in some point.

MBJ: How many employees are there at the airport?

Perry: It’s 55, but we have some temporary part-time employees. We normally have about 50 full-time employees and five or six part-timers in our customer service area.

We are looking to expand that some. We want some more people in our customer service department to be customer service ambassadors and we are also looking for people to be sky cap ambassadors. They would work out front under the direction of our customer service department, which is under our marketing department, and they would work for tips. We are still putting the final touches on our plan. We used to have sky caps that worked under contract with the airlines, but when the airlines began cutting costs (the sky caps were let go).

MBJ: How many daily commercial flights are there?

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Perry: There are 18.

MBJ: Which airlines operate out of Montgomery and where are their hubs?

Perry: Delta operates flights both to Atlanta and Memphis, the former Northwest flight.

USAir flies to Charlotte and American Eagle to Dallas.

the top five and LAX also rotates in and out of the top five.

MBJ: What is the state of passenger traffic this year?

Perry: Passenger traffic was up 32 percent through April (almost 27,400 more than last year).

MBJ: If you had to pick one direct flight not being currently offered in Montgomery, which would it be and why?

MBJ: What do you attribute the increase to – the emphasis on customer service and aggressive marketing campaign?

Perry: It would be a direct flight to Washington Reagan National because that is our No. 1 destination and it would see a lot of ridership and would make a lot of people’s days a lot easier. They won’t have to change planes in either Charlotte, Memphis or Atlanta to get to Washington. I would love to have a direct flight to DCA and just about everybody wants a direct flight to Washington.

Perry: Clearly it hinges on the economy.

The economy is coming back at least in Montgomery and at least through business travel, which is the great majority of our passenger traffic. Do I think our efforts with respect to public relations/advertising/ customer service have made a difference?

Yes, I think they have. What that does is help at least get the person who has typically looked at Atlanta or Birmingham as their departure airport to give us a look and compare our prices.

MBJ: What are your top destinations?

Perry: DCA is No. 1 and BWI (Baltimore) is No. 2 because people are flying to Baltimore to get to Washington; LAX (Los Angeles) is No. 3; San Antonio is No. 4; and Dallas-Fort Worth is No. 5. Chicago rotates in and out of

MBJ: Taking that look is very important.

Perry: We want them to look because if you look at the fares – a lot of the time you’re going to find we stand up very well to Atlanta

and Birmingham. We might be the same; we might be a little cheaper than one; and we might be $50 more. But if it’s $50 more to fly out of Montgomery than Birmingham, you’re probably going to fly out of Montgomery. It’s just not worth that extra $50 to make the drive up Interstate 65.

MBJ: What role does the airport play in economic development?

Perry: The people that are specialists in economic development would tell you that the airport ranks close to the top in those things that businesses consider when looking at a market – looking at a place to locate. Whether or not you can get your customers in and out; get your employees in and out of a facility is critical. The driving reason we took on the renovation of the terminal building in 2000 through 2006 was because the business community told us that ‘we need to have a better face on Montgomery when we arrive and when we depart.’ With that we went forward with a $37 million-plus (project). The airport went out and for the first time did a bond issue. For the first time since I have been here (1991), we took on debt service. •

July 2010 Montgomery Business Journal

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Member ProďŹ le

Keith Sabel, with his son, Sean.

All in the Family Sabel Steel rolls with good, bad times

by Tom Ensey

How does a family company survive for 150 years? Keith Sabel, the ďŹ fth generation of his family to run Sabel Steel, is one of the few people who can answer that.

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Montgomery Business Journal July 2010

He kept holding the annual golf tournament for vendors.

“You need vendors,” he said. “You can’t sell it if you don’t have it.”

He said he remembered talking to his father in the 1990s, during an economic downturn.

“He asked me if I was upset because prices were low,” he said. “I said yeah, that’s it. He said, ‘Wait until you can’t sell it at all.’ ” Not long ago, he broke it down for his son, Sean, who was 23 and wavering on whether to enter the family business.

Things are a little better than they were, but Sabel isn’t in a position to get overly optimistic. Still, he believes the company will rebound, given time.

“I asked him, ‘Are you afraid because you don’t want to be the one to screw it up?’ “ Sabel said from his office in Montgomery.

“Steel is a vital part of any country’s economy,” he said. “It should be part of any economic recovery.”

“He said yeah, and I told him, that’s good.”

Recycling is growing, and businesses like his have always done that.

Sabel Steel is close to debt-free. Paying down the company debt was a priority when he bought the company back from a New York firm in 2000.

The secret is no secret, it turns out.

Be flexible, he said. Be conservative economically; take good care of your customers, suppliers and employees. Don’t make the one decision that will break you. The opportunity of a lifetime may not be the one for you.

Sabel Steel began as a company that sold leather goods: harnesses, bridles, buggy whips. It traded furs and hides for finished products, taking in mostly cow and pig hides as well as furs. It continued to do this until about 40 years ago.

After the Civil War, the company bartered farm tools for leather goods. It started taking in enough iron and steel to start trading in those commodities.

Eventually, it got out of making leather products and focused on trading metals and hides – taking in the raw materials, preparing them to the specifications of the customer, then selling them.

It helped that the company was close to the hydroelectric dams built by the Alabama Power Co., he said. That took a lot of steel.

“Sometimes, you get lucky,” he said.

After World War II, Keith’s father Jimmie and uncle Mark went pretty much exclusively into the metals business – except for an Army-Navy surplus store in the late ’40s and early ’50s, when there was a lot of that to be had.

Right now, Sabel Steel is still in hunker-down mode as the economic hurricane continues to pound away at this and other businesses.

Sabel said he saw it coming a few months early, sold off his inventory until he couldn’t sell it anymore. He cut costs.

He knew what costs not to cut: Service and entertainment for customers, and benefits for employees.

“It’s hard to go broke if you don’t owe any money,” he said. “It’s possible, but it’s hard to do.”

The company has added a branch every decade – he hoped it will continue to grow at that rate. But that’s not job 1. The biggest part of the business for him and his family is taking care of the employees, being a good corporate citizen, being respected by customers and vendors.

Sable quotes his favorite philosopher: his dad.

“He used to say there’s no greatness in being the richest guy in the cemetery,” he said. •

SABEL STEEL LOCATION

49 N. COURT ST. FOUNDED

1856

NUMBER OF EMPLOYEES

205

PRODUCTS

STEEL PRODUCTS, INCLUDING REBAR, BEAMS, SCRAP METAL; WHOLESALE PLUMBING, INDUSTRIAL AND MARINE SUPPLIES; HARDWARE, CHAINS, CABLE, PIPE.

“I asked one of the managers what the competition was doing about entertainment,” he said. “He told me, ‘They’re not taking the customers to lunch.’ I said, then take them to lunch. Now a lunch really means something.”

He said the company is self-insured and this marks the fifth year in a row its employees haven’t had a rate increase for their benefits. He still offers health, safety and production benefits.

July 2010 Montgomery Business Journal

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Positive Economic entity Multi-sports facility and Cramton Bowl upgrade could mean millions of dollars and hundreds of jobs

by David Zaslawsky

More than 700 players came to Montgomery earlier this year to compete in the Dixie Girls Volleyball tournament.

The event was held at the Renaissance Montgomery Hotel & Spa at the Convention Center and rooms throughout the city filled up. But when the tournament wanted to double its size and return next year, the Renaissance was already booked. There is no other venue in the city in which to stage a volleyball tournament of that size.

Enter the multi-purpose sports facility.

With a projected economic impact of between $25 and $86 million per year, Montgomery leaders say the facility is a matter of business and economic development – not just fun and games.

“We need to have our own facility that is not only for volleyball, but for all youth sports,” said Montgomery Mayor Todd Strange.

The business of sports and recreation is massive. The list of sports and activities that can be staged at the multi-purpose sports facility is not endless, but at nearly 30 is mighty impressive. Every person spending a night in a Montgomery hotel equals $179 for the hospitality industry, Strange said.

“For every 1 percent increase (in occupancy rate), it’s worth $1.9 million in revenue to the industry, and that’s just for the room nights. That does not include any gas, any food, any shopping or anything else.”

Ken Blankenship, executive director of the Central Alabama Sports Commission, said the facility would make Montgomery unique among cities our size.

“In business you try to separate yourself from the competition,” Blankenship said.

“That gives you an advantage, and that’s what this sports facility does for us. It makes us unique. We will have a facility that other cities our size do not have.”

At a cost of about $13 million, the multi-use facility would sit adjacent to Cramton Bowl, which would also be renovated at a cost of $10 million. The bottom floor of the 92,000-

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Montgomery Business Journal July 2010

square-foot sports facility would be level with the Cramton Bowl playing field and feature two football dressing rooms, two locker rooms and additional space for meetings or warmup areas. That floor is 20,000 square feet.

The main floor sits on top and is 72,000 square feet. This is an event facility and not designed for large crowds. Blankenship said the seating capacity will be around 4,000.

The space for events is immense.

“We can put 15 volleyball courts or six basketball courts in the facility,” Blankenship said. “It’s big enough for two indoor soccer fields or five indoor tennis courts.”

Kenny Coleman, chairman of the Central Alabama Sports Commission and vice president of Alabama Power’s Southern Division, said Montgomery has a long history of supporting sporting events, and the multi-use facility would help “re-energize that community spirit.”

“Many communities see the value and treat them like economic development projects,” Coleman said. “Just like in economic development, you need a product to promote. In the sporting world, that product is facilities.” •

A new sports facility would boost the hospitality industry’s slow winter months.

Winter is a perfect time for indoor tennis and indoor soccer tournaments and the typical youth sporting events translate into two-night stays, Blankenship said.

An economic impact study conducted

by Troy University assistant professor of economics Phillip Mixon concluded that the multi-purpose sports facility would have a total impact ranging from an ultra-conservative $25.9 million a year to a best-case optimistic estimate of $86.6 million a year.

A large cheerleading event or girls volleyball tournament could attract 80 teams over three room nights and have an impact of nearly $24.5 million.

Other estimates from the Troy University study: > Nearly 350 jobs would be created during construction of the facility. > Between 130 and 391 jobs to operate the facility would be created. > Total annual taxes generated by the facility will range from $600,000-plus to $2.5 million.

Kenny Coleman

PAY BACK The multi-use sports facility and renovations to Cramton Bowl would be funded through a $60 million bond that would also pay for renovations to City Hall. Strange is asking the City Council to approve a $15 million line of credit, for a total expenditure of $75 million.

The estimated annual debt obligation for the sports-related aspects of the overall bond issue is $1.4 million. The conservative estimated annual tax impact of nearly $1.6 million would pay for that.

“In simple payback terms, with a very conservative estimate of the number of sporting events the facility will host, the investment that the community would make into this facility will be paid back in two years or less,” said Kenny Coleman, chairman of the Central Alabama Sports Commission and vice president of Alabama Power’s Southern Division.

Staying Home Hausted Patient Handling Systems creates Montgomery headquarters

by David Zaslawsky

Hausted Patient Handling Systems CEO Jerry Silvertooth was confessing his love of Texas football in a sea of University of Alabama football fans during the news conference announcing his company’s creation of 45 new jobs. His company had just announced the purchase of the patient handling side of STERIS Corp.

A die-hard Texan living in the Midwest, Silvertooth would surely relocate his company to a more convenient locale, right? Not necessarily.

Aside from the difficulty in moving a manufacturing operation, Silvertooth mentioned several reasons why Hausted would continue to call Montgomery home.

“When you look at the labor markets and the availability of skilled labor, it plays very heavily in a selection,” he said. The participation of Alabama Industrial Development Training program in helping prepare employees was a factor in the company’s decision to stay in Montgomery, Silvertooth said.

Hausted is a 60-year-old company that manufactures and sells what Silvertooth calls “sophisticated, hydraulic, electric and motorized, multi-positioning” medical devices, such as stretchers, chairs, recovery room beds and mobile tables for outpatient surgery. The company is market leader in ophthalmology surgery tables, he said.

About three-fourths of the jobs will be in manufacturing. While forming the management team, Silvertooth will work closely with STERIS on the transition of Hausted to a 50,000-square-foot facility that can be expanded another 30,000 square feet.

The Montgomery operation will serve as the company’s world-wide corporate headquarters, Silvertooth said.

Recruiting corporate headquarters is a key component in Montgomery’s economic development. Montgomery County Commission Chairman Elton Dean said corporate headquarters “provide solid jobs and grow the corporate base of our community, which is so critical to enriching the quality of life for our citizens.”

Photo cutline

The city and the county split a $150,000 incentive package to woo Hausted, and the company also received two months free rent from Industrial Partners.

Both Hausted and STERIS will be housed at Gunter Industrial Park.

Montgomery Mayor Todd Strange said he hoped the Hausted announcement was the first in a string of such announcements. “We have been working really hard with the Chamber, which takes the lead on this,” Strange said.

Silvertooth said he anticipates a heavy uptick in business since the health care reform bill passed. The company has seen high growth in products sold overseas to Latin America, Europe, Australia and Canada.

The company has the capacity to manufacture 3,000 to 3,500 units a year (about 10 to 15 units a day), Silvertooth said.

“Business and industrial prospect activity has been on the rise in Montgomery over the past six months, even in a challenging economy,” said Montgomery Area Chamber of Commerce President Randy George.

“That tells us that company officials and site selection consultants have Montgomery on their radar because of the exciting things taking place in our community.

Now we are working hard to make sure those prospects turn into projects.” •

STERIS CORP. CONCENTRATES ON CORE BUSINESS Montgomery-based STEROS Corp. recently sold its patient handling business to Hausted Patient Handling Systems. That means the company now has more resources to devote to its other product lines, and more capital with which to do so.

“Our business is growing in the surgical fields,” said Mac McBride, director of operations for STERIS, located at Gunter Industrial Park in Montgomery.

The additional resources will be devoted to producing surgical tables, surgical lights, warming and storage cabinets, equipment management systems, surgical scrub sinks and accessories. The company is planning to release several new product lines over the next 12 months, McBride said.

-David Zaslawsky

July 2010 Montgomery Business Journal

17

A

HOME RUN

FOR ECONOMIC DEVELOPMENT

Minor league baseball has helped transform downtown Montgomery from a deserted region after dark to the now hustle and bustle of a thriving area.

by David Zaslawsky

18

Montgomery Business Journal July 2010

Yes, minor league baseball can and does have that enormous impact on a downtown. Just ask Sherrie Myers, who along with her husband Tom Dickson, are owners of the Montgomery Biscuits AA baseball team that plays its home games downtown at Riverwalk Stadium.

general manager. Besides Dreamland, the downtown area near the Biscuits has added SaZa’s Serious Italian Food, Wintzell’s Oyster House, Alley Bar, Alley Station, meeting spaces and loft apartments.

“You can’t just build a stadium and they will come,” Myers said. “You can build it and economic development will follow.

That’s what happened,” she said.

Eveleth said the Biscuits draw some patrons to The Exchange and some in The House restaurant at the Renaissance. “We are a safe, fun and exciting area where people of all ages can come for entertainment and leisure activity,” he said.

Before the Biscuits made their debut in 2004, the main attraction after dark downtown was the Montgomery Brewing Co., known locally as the Brew Pub. Downtown could boast of the Embassy Suites Hotel, but there was nothing like the Renaissance Montgomery Hotel & Spa at the Convention City; no convention center; no Montgomery Performing Arts Centre. The Alley project did not exist.

Myers said she remembered downtown traffic signals flashing at 6 p.m.

“My impression was that downtown Montgomery was not exactly a place people were hanging out after 5 o’clock. It was a self-fulfilling prophecy that nobody wanted to spend time downtown except for the businesses that had been there for a long time. It was also hard for people to get new businesses to want to come in to downtown.”

The Biscuits’ impact on downtown Montgomery was so dramatic that Dreamland Bar-B-Que owner Bob Parker opened his business in The Alley across from Riverwalk Stadium on the day of the team’s home opener last year.

Parker said that without the Biscuits, he probably could not have opened the type of facility that he did. That’s how important the Biscuits are to Dreamland.

He said the Biscuits provide Dreamland “with a guaranteed population.” The team has attracted a range of fans from a high of almost 325,000 spectators for the inaugural season to a low of about 265,000 during last year’s recession.

“The Biscuits have been a savior of downtown,” said Lloyd Faulkner, director of finance for the City of Montgomery. “They are the catalyst of what’s going on down there.

I guess the mayor took a chance when he built the stadium because there were a lot of naysayers. We decided to do it and put it in the right place. That field fit perfectly

Top Right: Bob Parker; Top Lert: Lloyd Faulkner; Right: Tom Dickson and Sherrie Myers.

in that spot. This is the perfect venue.”

Myers said it took some convincing for thenMontgomery Mayor Bobby Bright to build the stadium first. She said he wanted the new convention center up and running first.

“You have to start with us, not the others, because we’re this big icon thing people can relate to,” Myers said. “You have these big lights that go on and it also helps if there are people who are afraid to come to downtown urban areas, which is often the case. They are afraid of crime; afraid of what stories they may have heard, which happens everywhere. People who aren’t doing good things don’t want to be near those big lights.”

Brew Pub General Manager Chris Ellis said the Biscuits have been “awesome” for his business.

During the team’s first season, Brew Pub sales surged at least 30 percent, Ellis said.

Dreamland’s sales increase 30 percent during weekday games, and 40-50 percent on the weekends. That increase goes straight to the bottom line because Parker doesn’t increase staff during Biscuit games.

“The Biscuits have been the tipping point for downtown,” Faulkner said. “We invested a lot of money, but it’s really paying off from a dried up dust bowl with homeless people hanging around to a vibrant area and we have two or three more restaurants coming.”

The Biscuits add another piece of the puzzle in helping make the downtown entertainment district grow, said Mike Eveleth, Renaissance

Biscuits General Manager Greg Rauch has seen it all before. Myers and Dickson brought minor league baseball to Lansing, Mich., in 1996. Rauch said the difference between the pre-stadium downtown Lansing and the present is like “night and day.”

Now, there are restaurants everywhere.

“It’s a vibrant downtown and we’re getting the same thing here,” Rauch said.

The key was to get people comfortable with coming downtown.

“Now when you come downtown on a Friday or Saturday night and there is not even a game, the restaurants are doing well. You have a beautiful hotel that opened a few years ago. The activity is there and now we just have become our own destination as a group.”

He expects that growth downtown to continue, with more restaurants and more bars coming in. But it was the Biscuits that started the momentum, he said.

Myers, who has been in the minor league baseball business for about 15 years, said, “It is more than ROI (return on investment) and it may sound esoteric and maybe self-serving, but you end up realizing even if you didn’t know it going in – and I surely didn’t know it going in – you’re changing the face of a community.

“I cannot tell you how many times people have stopped me on concourse or suite level and they’ll say, ‘Thank you so much for bringing this team to town.’ ” •

July 2010 Montgomery Business Journal

19

CITY REAPS BENEFITS FROM BISCUITS’ SUCCESS

by David Zaslawsky

in principal and $10,000 in interest).

The Montgomery Biscuits baseball team has been very, very good to the City of Montgomery.

The city received in excess of $700,000 a year from the Biscuits during the club’s first four years at Riverwalk Stadium. In the original pro forma, the city expected to receive about $575,000 in lease payments for the first year; $500,000 for the second, third and fourth years.

The Class AA affiliate of the major league Tampa Bay Rays has paid the city $4 million in rent since its debut season in 2004. The City of Montgomery owns Riverwalk Stadium, where the Biscuits play their home games.

The city leases the stadium to the Biscuits.

That lease agreement has the city sharing receipts from ticket sales, food and beverage sales, merchandise sales, advertising revenue, sponsorship revenue as well annual and nightly suites.

The city spent $26 million to build Riverwalk Stadium, financed by a bond issue of Series A and Series B, according to Lloyd Faulkner, director of finance for the City of Montgomery. Series A was $18 million and the debt service was paid by a portion of the city’s lodging tax. The city owes less than $5 million on the Series B, which is paid by the leasing agreement with the Biscuits. The Series B balance was refinanced at a fixed rate of 3.0 percent, Faulkner said, with a monthly payment of about $50,000 ($40,000

During those first four years, the City of Montgomery received almost $800,000 more than the projections from the pro forma.

In 2008, the city was paid nearly $625,000 while the pro forma estimate was about $475,000. Last year during the recession, the city received about $400,000, when the team’s attendance declined to less than 270,000 – only the second time in six years that the attendance was less than 300,000. The $400,000 the city received was about $75,000 less than the pro forma.

The city’s bonding rating was recently upgraded to AA+ stable, which is slightly less than the top AAA rating. The refinancing was completed before the bond upgrade.

“We are doing very well,” Faulkner said.

“We’re a good risk for bond buyers.”

BISCUITS BASEBALL ATTENDANCE Openings

Average

2004

Regular Season

322,946

67

4,820

2005

Regular Season

303,054

67

4,523

2006

Regular Season

313,795

68

4,615

Southern League All-Star Game

7,454

1

7,454

Post Season

11,118

3

3,706

2006 Total

332,367

72

4,616

Regular Season

311,872

68

4,586

7,028

4

1,757

2007

Post Season 2007 Total

318,900

72

4,429

2008

Regular Season

292,181

65

4,495

2009

Regular Season

266,818

66

4,043

7,489

1

7,489

274,307

67

4,094

Totals 2005 to 2009 - Regular Season Only

1,810,666

401

4,515

Totals 2005 to 2009 - All

1,843,755

410

4,497

MAX Capital City Classic 2009 Total

Source: Montgomery Biscuits/Marla Terranova

20

Attendance

Montgomery Business Journal July 2010

BISCUITS’ BRAND IS ALL ABOUT FAMILY AFFORDABLE FUN

by David Zaslawsky Montgomery Biscuits co-owner Sherrie Myers likes to tell this story about her husband and Biscuits co-owner Tom Dickson.

“I remember Tom saying when we first got into this business, ‘Yes, this is baseball, but it doesn’t matter. It could be detergent or it could be toothpaste. We’re going to create a brand and we’re going to market that brand just like you would toothpaste or detergent or whatever the positioning is for that particular brand.”

Myers and Dickson, who have been involved in various capacities for nine new minor league baseball stadiums, said it all comes down to family affordable fun. You will hear that phrase repeatedly when talking to Myers, who operates Chicago-based Professional Sports Marketing with Dickson.

“We try to never lose sight of that statement (family affordable fun) and that mission,” “Myers said. “If that means we need to do research to make sure people still think you’re that – that’s what we do.

We are staying true to the course and it’s all about family affordable fun.”

The City of Montgomery Finance Director Lloyd Faulkner recalled a similar statement from Dickson. “He said, ‘Frankly, it’s not about baseball. It’s about families and people coming out and having a good time.”

After each home game at Riverwalk Stadium the Biscuits take a survey and ask the spectators what was the score of the game. About half of the respondents don’t know the answer.

“They say, ‘No, but I had a great time,’ ” Myers said. “There is so much else going on. They can go eat several times from all these different places and with all these different sampling options of food.

“If they have kids, they can go play in Big Mo’s Dugout; they call troll the park if they are a teenager. They can watch the inbetween innings entertainment. They can go in the Biscuit Basket and shop. My gosh, that has to be six innings right there.”

Faulkner said that Biscuits’ baseball is a venue for entertainment. “Half of them don’t

have a clue about the score of the game, but they just had a good time with the kids and ate some hot dogs. It’s a good place to go.”

The team has promotional days, including Dollar Dog Tuesdays; Military Wednesdays with discounted food prices for members of the military; and Thirsty Thursdays, which features drink specials.

Biscuits General Manager Greg Rauch said, “I think we have the right niche of what the market is looking for. When we came into this market, we wanted to find something that people wanted; what they needed; from family entertainment; from client entertainment; sales entertainment; employee recognition; all of those factors are something we are able to provide.

“From a family entertainment point of view – we very excited that we can continue to provide that service. It’s a safe environment for their children; it’s wholesome family entertainment from Big Mo (mascot) to our fireworks to the performance of the team on the field. We don’t necessarily hang our hat on the team’s success. We obviously want the team to do well, but we can’t control that. We are really about promoting family entertainment and client and employee recognition for corporations and groups.”

A new system was installed that enables customers to use credit cards throughout the stadium. Rauch said they may add new portable food carts. Last year a half-pound hamburger cart was so successful it was used again this year.

Montgomery Biscuits General Manager Greg Rauch

There are only three leagues of AA baseball in the country and a limited number of cities with minor-league affiliated teams. The Biscuits’ parent club is the Tampa Bay Rays.

He said the team’s retail sales “have been really strong this year. People love the brand.”

Businesses are once again spending on entertaining clients and having group outings for employees.

“We have a wonderful venue,” Rauch said.

“We have a strong brand and customer service. We really do believe in customer service. We have fan surveys that go out after every game and we get comments back from fans and we respond to them.

“The fans rank us in many different categories. We are always between an 8 and a 9.5. Our goal is make sure those eights creep up to nines, and if we can get a 10 – we’ll take it.” •

July 2010 Montgomery Business Journal

21

Member News

BUSINESSBUZZ MARCH OF DIMES NAMES JUDGE CHARLES PRICE CITIZEN OF THE YEAR MONTGOMERY — Civic and community leader Judge Charles Price of the 15th judicial circuit has been named the 2010 March Dimes River Region Citizen of the Year. Price will be honored in Montgomery at its Oct. 7 annual March of Dimes River Region Citizen of the Year Testimonial Dinner.

Citizen of the Year honors an outstanding citizen of Alabama whose distinguished leadership and devoted service to the community have contributed greatly to the quality of life for Alabama and its people.

The recipient is a person who, in the victory of achieving success and acclaim, has given back generously to others.

“As a leader in our community, Judge Price has shown a long-standing commitment to improving the life, health and safety of Alabama’s citizens.

He is a well known judge who has received numerous honors and awards for his tireless work. With nearly 40 years in public service, the March of Dimes is pleased to honor Judge Price with one of its highest honors – the River Region Citizen of the Year,” said Carol Gunter, March of Dimes River Region Board Chairwoman.

TWO GOODWYN MILLS AND CAWOOD PROJECTS HONORED MONTGOMERY – Two projects from Montgomery-

22

based Goodwyn, Mills and Cawood have been selected for publication in Penton Media’s American School & University 2010 Educational Interiors Showcase.

The projects are the Burrow Center for the Fine & Performing Arts and the Butler County Magnet School in Georgiana.

Both projects will be featured in the August edition of the magazine and also at www.SchoolDesigns.com.

The Burrow center is a 51,000square-foot performing and fine arts center located on the Wallace State Community College Campus in Hanceville.

The two-story building houses choral, performance band, jazz band, and show choir programs.

The new K-12 Magnet school features two media centers and two gymnasiums, two interior courtyards and a cafeteria for elementary students and high school students.

a new publication for their career success and civic contributions, said Chancellor John G. Veres. The honorees are profiled in “40 at 40,” a magazine-style publication that commemorates Auburn Montgomery’s 40th anniversary.

“As Auburn Montgomery has celebrated its 40th anniversary this year, one thing has become clear,” Veres said.

“Auburn Montgomery has had a tremendous impact on the community and on the men and women who have matriculated here. Nowhere is that more evident than in the biographies featured in this publication.”

The “40 at 40” honorees include business leaders, scientists, doctors, educators, attorneys and social crusaders.

They were nominated for inclusion by the deans and faculties of AUM’s five academic schools and represent the accomplishment and commitment that the publication sought to highlight.

playroom/waiting room and exam room for children. >$10,000 to Montgomery County Water Festival to fund the free environmental educational fieldtrip for 3,000 fourth graders from all public and private schools. >$9,650 to the Girl Scouts of Central Alabama to fund a girl’s resource room. >$9,650 to Lee High School Library to help fund books for the library as well as an incentives program. >$8,000 to the Cancer Wellness Center to fund medicines and other patient necessities.

Also at the meeting, the League announced its recognition awards for its members and proposed funded projects for 2010-2011.

JUNIOR LEAGUE RECOGNIZES MEMBERS IN ANNUAL MEETING

John Veres

AUBURN MONTGOMERY HONORS “40 AT 40” ALUMNI FOR CAREER SUCCESS MONTGOMERY — Forty Auburn University at Montgomery alumni are being honored in

Montgomery Business Journal July 2010

MONTGOMERY — The Junior League of Montgomery announced recipients of the proceeds from its 20092010 fundraising projects, totaling $93,2000, at its annual meeting held May 18. Some of those recipients and projects include: >$25,000 to the Family Justice Center to fund a

Joe Garrison

METLIFE AGENT EARNS RECOGNITION MONTGOMERY — Joe Garrison has recently earned MetLife’s Leaders level of recognition, an honor bestowed to a select set of MetLife top producers, specifically those who exemplify the highest

BUSINESS BUZZ standards of personal integrity, professionalism and client service across the company.

Garrison is a graduate of the University of Mississippi. He is a member of Frazer Memorial Methodist Church, Chamber of Commerce Ambassador, Past President of the University of Mississippi Alumni Association, Kappa Sigma Fraternity, and has worked in the Financial Services Industry for six years.

Don Henderson

RIVER REGION HOSPITALS TO ELIMINATE TOBACCO USE ON CAMPUSES MONTGOMERY— Since the 1980’s, public concern over the health consequences of smoking has led businesses, large and small, to restrict the use of tobacco products in their buildings and on their premises.

The nation’s 6,000 hospitals have been among those organizations implementing more restrictive smoking policies. In January, Baptist Health, Jackson Hospital and HealthSouth Rehabilitation Hospital jointly implemented a tobacco-free campus policy to include all sidewalks, grounds and facilities.

“The hazards of smoking and tobacco use are well-known,” said Don Henderson, Jackson Hospital president and CEO. “Our healthcare facilities are joining together to take a more aggressive stance against the leading preventable cause of death in the U.S.”

Motivated by a commitment to their healthcare mission, a recent study from The Joint Commission projected that a majority of U.S. hospitals now have a smoke-free campus.

In Alabama, more than 40 hospitals have already eliminated smoking or tobacco use on their grounds by patients, visitors and employees.

BEASLEY ALLEN NAMES FIFTH WINNER OF ‘WII GIVE BACK’ CAMPAIGN MONTGOMERY – Beasley Allen Law Firm has selected the CARE House in Bay Minette as the recipient of the fifth gaming system it will give away in its yearlong “Wii Give Back!” campaign.

The CARE House provides services to children who have been the victims of sexual and severe physical abuse.

CARE House is Baldwin County’s resource and referral source on child abuse. Team members include the Baldwin County District Attorney’s Office, Baldwin County Law Enforcement, Baldwin County Human Resources and medical personnel.

Suspected sexual abuse is investigated at CARE House.

Past recipients of Wii systems in 2009 and 2010 include the James M. Barrie Center, Jimmie Hale Mission, Harriet’s House, Camp ASCCA, Brantwood Children’s Home and Common Ground Montgomery.

INTEGRATED COMPUTER SOLUTIONS, INC. AWARDED STATE OF MISSISSIPPI NETWORK SECURITY SERVICES CONTRACT MONTGOMERY — Integrated Computer Solutions, Inc. (ICS) announced today that it is one of a select number of companies to be awarded a contract by the State of Mississippi for the acquisition of information technology

(IT) security consulting services. Granted through the State of Mississippi’s Department of Information Technology Services, this contract allows Mississippi state, county, and municipal agencies to secure IT security services for LAN, WAN, and other network based systems.

depth review of the business and site inspection. The certification process is designed to confirm the business is at least 51 percent owned, operated and controlled by a woman or women.

This is the second contract that the State has awarded to ICS this year. The first, presented in March, allows state organizations to acquire network security and risk assessment services from a select number of companies, including ICS. “We are pleased to broaden our relationship with the State of Mississippi. With this award, Mississippi government agencies and schools can now access ICS’ best-in-class cyber security consulting as they proactively protect the citizens of Mississippi and improve the State’s IT security posture “ said Chip Schuneman, COO of ICS, Inc.

“We’ve had many of our corporate customers and government agencies request that we become certified as a Woman-owned business to help meet their minority-owned supplier goals,” said LogoBranders president Terry Southern.

By including women-owned businesses among their vendors, corporations and government agencies demonstrate their commitment to fostering diversity and the continued development of their supplier/ vendor diversity programs.

Sam Martin

MARTIN NAMED PRESIDENT, PUBLISHER AT MONTGOMERY ADVERTISER Terry Southern

LOGOBRANDERS, INC. RECEIVES NATIONAL WOMEN’S BUSINESS ENTERPRISE CERTIFICATION MONTGOMERY — LogoBranders, Inc., a business specializing in promotional products and corporate apparel, received national certification as a Women’s Business Enterprise by the WBE Council South, a regional certifying partner of the Women’s Business Enterprise National Council (WBENC).

Certification is a meticulous process that includes an in-

McLEAN, Va. – Gannatt Co, Inc. announced that Samuel Martin has been named president and publisher of the Montgomery Advertiser. Most recently he was senior vice president/chief advertising officer for the Boston Globe.

At the Globe, Martin was responsible for the integrated sales of the Boston Globe, Boston.com, The Worcester Telegram & Gazette, Globe Direct and Metro Boston.

Prior to joining the Boston (CONTINUED ON PAGE 24)

July 2010 Montgomery Business Journal

23

BUSINESS BUZZ (CONTINUED FROM PAGE 23) Globe, Martin was the senior vice president of sales at New Jersey Media Group. Martin previously worked for Gannett as senior vice president of marketing at The Cincinnati Enquirer from 1999-2002 and director of advertising at The News Journal in Wilmington, Del., from 1993-1999.

“We are very pleased to welcome Sam back to Gannett,” said U.S. Community Publishing President Bob Dickey. “He is bringing diverse experience and valued leadership to our Montgomery market and will build on the solid foundation (former publisher) Cheryl Lindus helped establish in this important market.”

Terry Bagwell

METLIFE’S TERRRY BAGWELL HONORED FOR SUPPORT OF NATIONAL GUARD BIRMINGHAM – Terry Bagwell has been honored with the Employer Support of the Guard and Reserve’s (ESGR) Patriot Award. The Patriot Award recognizes employers who support the National Guard and Reserve force. Employers qualify for recognition when they practice leadership and personnel policies that support employee participation in the Guard and Reserve.

Bagwell, a Montgomery resident and Managing Director of MetLife Financial Group of the South, an office of MetLife, received the award from Greg Clark, who serves in the National Guard and is a financial advisor with the firm.

24

“I am privileged to accept this award and hold deep respect and appreciation for Greg’s service through the National Guard,” Bagwell said. “I am happy to do my part and support his work.”

The firm asked 975 drivers of the all-new 2011 Sonata rated their cars in 48 separate categories ranging from the basics of comfort and convenience, to performance and environmental friendliness.

Terry Bagwell joined MetLife in 2002 and has worked in the financial services industry for almost 20 years. He is a graduate of The University of North Alabama (UNA) with a bachelor’s degree in accounting and sits on the President’s Cabinet at UNA.

“With a score 775 out of 1,000, the Sonata exceeded everyone’s expectations.,” said George Peterson, president of AutoPacific. “The Sonata’s unique styling was rated almost perfect and was a key driver to its overall superior performance in this research.” No other vehicle has ever before achieved a score of 775, Peterson said.

TWO KAUFMAN GILPIN ATTORNEYS NAMED TO EXCLUSIVE LISTS MONTGOMERY – Kaufman Gilpin McKenzie Thomas Weiss, PC announced that two of its attorneys were selected for the Alabama Super Lawyers and Rising Stars lists. Only 5 percent of the lawyers in the state of Alabama are selected by Super Lawyers and no more than 2.5 percent of the lawyers in the state of Alabama are selected by Rising Stars. Rising Stars are those attorneys who are 40 years old or younger, or who have been practicing for 10 years or less.

Gregg B. Everett was selected for inclusion in Alabama Super Lawyers 2010 in practice areas of healthcare. John A. Howard Jr. was selected for inclusion in Alabama Rising Stars 2010.

Howard’s practices primarily in the firm’s commercial real estate practice group.

HYUNDAI SONATA WINS PRESIDENT’S AWARD TUSTIN, Calif. — AutoPacific announced its President’s Award for the 2011 Hyundai Sonata. This first-ever honor is the result of a special analysis of the 2011 Sonata.

AutoPacific is a market research and consultancy firm for the automotive industry.

Montgomery Business Journal July 2010

Taylor Blackwell

WALKER360 SCORES WITH AHSAA MONTGOMERY — Montgomery’s Walker360 has formed a three-year strategic alliance with the Alabama High School Athletic Association (AHSAA).

Founded in 1921, the AHSAA regulates, coordinates and promotes the interscholastic athletic programs among its member schools, which include public, private and parochial institutions. Currently, there are 401 senior high and 287 junior high and middle school members with more than 75,000 students participating in the program.

“We will be providing creative direction and design, as well as printing and fulfillment for all the materials they produce each year to support athletic programs throughout the state,” said Taylor Blackwell, president

of Walker360. “We’ve been asked to provide a new look for the AHSAA that reflects their proud heritage as a leading proponent of schools, coaches, officials, and young athletes.”

Earth Fare Groundbreaking

EARTH FARE BREAKS GROUND AT EASTCHASE SHOPPING CENTER IN MONTGOMERY MONTGOMERY – Jim Wilson & Associates, LLC announced it has signed a lease with Earth Fare, a healthy supermarket, for a new store location in Montgomery’s EastChase Shopping Center. A groundbreaking was held June 8.

Earth Fare, based in Asheville, N.C., will soon begin construction of the 26,000 square foot store, which will be the 20th store in the chain.

The store is scheduled to open in Winter 2011. Earth Fare is a natural foods grocer, which continues to lead the healthy grocery movement, according to the press release.

“The opportunity to add a new type of supermarket to the Montgomery market is one we could not pass up, and we feel it will be a tremendous addition to EastChase,” said Will Wilson, president of Jim Wilson & Associates.

To submit your business news for publication, email a press release to editor@montgomerychamber.com.

Montgomery Area Chamber of Commerce Members only.

New Members AccountingCertified Public S G COOK & COMPANY, LLC 334-328-0050

Advertising DIGITAL MARKETING & MEDIA, LLC 334-239-2218

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Automobile Dealers & Services MONTGOMERY MITSUBISHI/SATURN 334-260-2064

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Cellular/Wireless Phone Services IN 2 WIRELESS 334-239-2230

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Fishing Charters RIVER REGION GUIDE SERVICE, INC 334-290-7460

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Printing Equipment INTOPRINT TECHNOLOGIES 334-244-7043

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RemodelingResidential/ Commercial DIVERSIFIED CONTRACTING, LLC 334-296-5831

Restaurants FIVE GUYS BURGERS AND FRIES 334-239-7220

Tours MONTGOMERY TOURS 334-296-6287

Health Information Management/ Medical Records Services PHR SOLUTIONS LLC 334-868-0800

Information Technology Firms HARRIS IT SERVICES 334-239-8004

July 2010 Montgomery Business Journal

25

MEMBERS ON THE MOVE ABC32 AND CW ANNOUNCE ADDITIONS TO NEWS TEAM MONTGOMERY – ABC32 and CW announced that Morgan Hightower Morgan Hightower and Lisa Blackwell have joined the news teams. Hightower will report for both the ABC32 News at 10 p.m., which expands to 35 minutes in June, Lisa Blackwell and the CW News at 9 p.m. on Montgomery’s CW. Morgan is a graduate of the University of Florida with a bachelor of science degree in telecommunications. She interned at WCJB TV20 in Gainesville, Fla., and worked at the school’s TV station, WUFT as a reporter, producer, and anchor.

Blackwell will be a reporter and producer for the new ABC32 News at 10 p.m., and the CW News at 9 p.m. on Montgomery’s CW. Prior to joining WNCF, Blackwell was a reporter/producer for WTVY in Dothan. She is the 2008 recipient of the Associated Press award for Best Specialized Reporter for her series, “Cutting Edge Medicine,” and the 2008 Associated Press award for Best Photography. Lisa also received the 2009 Douglas L. Cannon Medical Journalism award for her coverage on stereotactic radio surgery.

Blackwell has a bachelor’s degree in human ecology from Ohio State University, a master of project management from George Washington University, and broadcasting certification.

PARTNERS REALTY NAMES CFO, HIRES NEW AGENT MONTGOMERY – Partners Realty announced the addition of Graham Graham Cook Cook as chief financial officer and shareholder of Partners Real Estate LLC. Cook will oversee the daily functions of our Residential and Multi Family Management division.

A native Montgomery, Graham has an impressive track record of professional success in real estate investments and management. Prior to joining Partners, He served as CFO for a third party property management company, overseeing $100 million in assets. Cook received his bachelor degree from Berry College’s Campbell School of Business in 2000.

Charley Moody was named sales agent.

Having been in the business for more than 12 years, Moody specializes in residential sales. Born and raised in Montgomery, he prides himself on a comprehensive knowledge of all markets in Montgomery.

Partners Realty is full-service Real Estate Company. Its agents and staff provide Residential & Commercial Sales and Management Services in Alabama and Tennessee.

ERA WEEKS & BROWNING REALTY, INC. ANNOUNCES NEW SALES ASSOCIATE MONTGOMERY – ERA Weeks and Murlee Harris Browning Realty has announced the addition of Murlee Harris to its team of real estate sales professionals serving consumers in the Tri-County area.

“We’re delighted to have Murlee join our winning team,” said Sherry Weeks. “She brings tremendous experience and proven leadership that will certainly benefit our company and our customers.”

26

Montgomery Business Journal July 2010

WHITNEY BANK NAMES BREEDING BRANCH MANAGER MONTGOMERY – Montgomery native Mike Breeding was named branch Mike Breeding manager of the Whitney Bank, Taylor Road branch in Montgomery, said region bank president Gene C. Crane. In his new position, Breeding will be responsible for all banking operations and sales efforts at the branch.

“Mike brings nine years of award-winning financial and banking experience within the Montgomery Region,” Crane said.

Breeding is an active volunteer with the River Region United Way, as well as an associate committee member for the Greater Montgomery Homebuilders Association.

WAKA, CBS-8 NAMES WEEKEND NEWS ANCHOR MONTGOMERY -CBS-8 Vice President and General Manager Jim Caruthers Jenna Deery announced the promotion of Jenna Deery to weekend news anchor for the CBS-8 News Team. oined the CBS 8 News Team in April 2008 as a general assignment reporter.

During the last two years as a reporter, Deery has investigated and reported numerous stories involving government waste, as well as breaking daily stories affecting the lives of CBS-8 viewers.

“We are excited that Jenna will anchor our weekend newscasts. She will bring more credibility and a sincere enthusiasm for covering the news on Saturday and Sunday,” Caruthers said.

RIBBON CUTTINGS & GROUND BREAKINGS

HERE WE GROW AGAIN

ACCENTURE

EASTER SEALS-THE ROTARY WORK CENTER

ELEGANCE KITCHEN & BATH RENOVATION LLC

VALUE PLACE

NATIONSTAR MORTGAGE

THE TIPPING POINT

BERNEY OFFICE SOLUTIONS

EAST BUFFET

LIFESOUTH COMMUNITY BLOOD CENTERS

CHARLOTTE’S JEWELRY

PQ ENTERPRISES, LLC

8161 Vaughn Road, 396-1991 Charlotte Evans-Owner Jewelers/Jewelry

60 Commerce Street, Suite 1200, -263-0005 Mary Beth Boyette-Owner/President Patents

UNLIMITED WIRELESS

PERCY BROWN’S INSTITUTE OF TAE KWON DO

COUNTRY INN & SUITES

4001 Carmichael Road, Suite305, 239-4178 James K. Trowhill-Senior Executive Information Technology Firms

5031 Woods Crossing Drive, 396-3505 George Sanders-General Manager Hotels/Motels-Extended Stay

10690 John Knight Close, 271-4750 Bill Ferrell-President Office Equipment/Supplies

2829 East South Blvd, -430-4243 Percy Brown-Owner Fitness center/gym

2125 East South Boulevard, 288-0240 Debbie Lynn-Executive Director Business/Vocational Schools

6987 Halcyon Park Drive, 523-9100 Donna Young-Manager Mortgage/Finance

2875 East South Boulevard, 281-2810 Steve Wang-Owner Restaurants-Chinese

10095 Chantilly Parkway, 277-4142 Mike Patel-Owner Hotels/Motels

3038 South Hull Street, 262-7123 Eugene Pinkston-Owner Remodeling-Residential/Commercial

5015 Hampstead High Street, 260-9110 Sam Wooten-Proprietor Restaurants-Coffee Shop/Bar

Carmichael Road, 334-260-0803 Judy Russell-District Director Blood Centers

2301 Eastern Boulevard, 649-2491 John Cosby-Owner Cellular/Wireless Phone Services

RIVER REGION CARDIOLOGY ASSOCIATES, PC 114 Mitylene Park Lane387-0948 M. Luqman Ahmed-President Physicians-Cardiovascular

July 2010 Montgomery Business Journal

27

ECONOMIC INTEL Unemployment Data Civilian Labor Force Area

MAY p 2010

APR r 2010

MAY r 2009

MAY p 2010

APR r 2010

MAY r 2009

165,157

164,902

167,645

9.6%

9.8%

8.9%

Autauga County

23,505

23,453

24,056

8.1%

8.3%

8.4%

Prattville City

15,277

15,215

15,611

6.7%

6.7%

6.9%

Elmore County

34,744

34,723

35,299

8.7%

9.1%

8.4%

Lowndes County

4,774

4,770

4,953

16.5%

16.8%

17.9%

Montgomery County

102,133

101,956

103,337

9.8%

10.0%

9.1%

Montgomery City

92,179

92,033

93,459

9.5%

9.8%

9.0%

Birmingham-Hoover MA

504,959

502,360

517,177

9.6%

9.8%

8.9%

Birmingham City

94,649

93,923

96,344

12.1%

12.1%

10.9%

204,379

203,418

204,289

7.7%

7.9%

7.3%

90,592

89,999

90,550

7.6%

7.6%

7.2%

180,888

180,517

182,958

11.0%

11.4%

9.8%

84,294

84,177

85,248

11.2%

11.7%

10.0%

2,095,289

2,085,869

2,126,429

10.0%

10.3%

9.5%

153,866,000

153,911,000

154,336,000

9.3%

9.5%

9.1%

Montgomery MA

Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States MA=Metropolitan Area. pPreliminary

28

Unemployment Rate

rRevised

Montgomery Business Journal July 2010

Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2009 benchmark.

Montgomery Metro Market Home Sales APR 2010

MAR 2010

Month/Month

APR 2009

Year/Year

Statewide

342

314

8.92%

248

37.90%

3,834

Median Selling Price

$130,000

$129,900

0.08%

$127,000

2.36%

$118,074

Average Selling Price

$143,181

$156,281

-8.38%

$134,125

6.75%

$139,347

103

97

6.19%

91

13.19%

141

3,195

3,272

-2.35%

3,088

3.47%

41,007

Total Home Sales

Average Days on Market Total Homes Listed

Source: Alabama Center for Real Estate (ACRE), The University of Alabama

2010 Montgomery Building Starts Building Permits

Building Valuations

Current Month

Last Month

Last Year

Current Month

Last Month

Last Year

New Construction

23

35

23

$3,526,600

$4,751,000

$3,369,000

Additions and Alterations

68

85

69

$2,249,606

$1,149,600

$1,317,000

Others

29

49

49

$289,600

$133,000

$11,583,400

Total

120

169

141

$6,065,806

$6,033,600

$16,269,400

Source: City of Montgomery Building Department

Sales Tax Collections

MAY 2010

MAY 2009

YTD 2010

YTD 2009

$3,199,937

$3,128,465

2.28%

$16,384,654

$16,312,324

0.44%

$7,002,398

$7,016,519

-0.20%

$37,015,571

$35,999,475

2.82%

Pike Road

$174,118

$157,191

10.77%

$805,100

$431,564

86.55%

Autauga County

$514,287

$597,042

-13.86%

$2,982,993

$3,012,773

-0.99%

$1,138,036

$1,069,779

6.38%

$6,093,177

$5,888,774

3.47%

Elmore County

$720,735

$694,234

3.82%

$3,711,670

$3,543,348

4.75%

Wetumpka

$453,195

$459,774

-1.43%

$2,244,506

$2,329,100

-3.63%

Millbrook

$423,309

$427,365

-0.95%

$2,308,992

$2,112,956

9.28%

Montgomery County City of Montgomery

Prattville

Year over Year

Year over Year

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook

National Retail Sales (Monthly and Quarterly) April Wal-Mart Target Sam’s Club Costco Dollar General

2010

Kohl’s Gap

Rite Aid Walgreens

2009

+5.9%

2010

-3.5%

+1.3%

2009

+0.3%

-6.1%

2010

-0.7%

2009

+0.3%

2010

+3%

2009

-2%

2010

AutoZone

April

May

2010

-0.1%

-1.7%

2009

+1.8%

+0.6%

2010

-0.2%

-0.2%

2009

+5.7%

+1.0%

2010

+7.1%

2009 +5%

McDonald’s

-1% +6.7%

2009 JCPenney

May -1.4%

Burger King

+13.3%

2010

-3.3%

-1.8%

2009

-6.6%

-8.2%

2010

-7.7%

+3.5%

2009

-6.2%

-0.4%

2010

+3%

-2%

2009

-10%

-11%

Wendy’s Arby’s

+7.4%

2010

+1.5%

+3.4%

2009

+6.1%

+2.8%

2010

-6.1%

2009

+1.6%

2010

+0.8%

2009

+1.0%

2010

-11.5%

2009

-8.7%

U.S. same store sales compiled from 10-Q and 10-K forms (excluding fuel sales) Source: RetailerDaily.com

July 2010 Montgomery Business Journal

29

Montgomery Regional Airport MAY 2010

MAY 2009

Year over Year

YTD 2010

YTD 2009

Year over Year

Air Carrier Operations

1,187

910

30.4%

5,040

4,450

13.3%

Total Operations

6,398

5,633

13.6%

29,568

28,419

4.0%

Enplanements

17,414

14,023

24.2%

74,202

56,778

30.7%

Deplanements

17,913

14,029

27.7%

74,622

57,392

30.0%

Total Passengers

35,327

28,052

25.9%

148,824

114,170

30.4%

Source: Montgomery Regional Airport (MGM) Dannelly Field

Hyundai Sales

Airline Fares

VEHICLE

MAY 2010

MAY 2009

YTD 2010

YTD 2009\

Accent

4,185

5,877

22,463

24,789

Sonata

21,195

11,059

71,478

48,531

Elantra

9,781

6,932

43,319

33,411

Tiburon

0

1,640

0

7,903

Santa Fe

6,157

6,486

36,790

26,325

218

346

1,153

1,638

4,395

1,346

16,307

Entourage

0

129

Veracruz

634

Genesis Total

Azera Tucson

Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations.

Montgomery

Birmingham

Atlanta

Baltimore (BWI)

$334

$254

$224

Boston (BOS)

$378

$293

$310

Charlotte, NC (CLT)

$243

$243

$190

Chicago (ORD)

$438

$284

$274

6,452

Cincinnati (CVG)

$294

$252

$280

0

3,300

Dallas/Ft Worth (QDF)

$288

$268

$294

1,043

2,745

6,294

Denver (DEN)

$430

$328

$344

2,480

2,079

10,322

8,100

Detroit (DTW)

$392

$367

$264

49,045

36,937

204,577

166,743

Houston (QHO)

$418

$338

$284

Indianapolis (IND)

$354

$226

$240

Las Vegas (LAS)

$433

$372

$364

Los Angeles (LAX)

$408

$308

$394

Memphis (MEM)

$545

$406

$198

Miami (MIA)

$298

$252

$196

Nashville (BNA)

$258

$158

$398

New Orleans (MSY)

$278

$178

$175

New York (JFK)

$414

$332

$318

Orlando (MCO)

$336

$256

$240

Philadelphia (PHL)

$376

$298

$274

Pittsburgh (PIT)

$362

$240

$244

St Louis (STL)

$292

$228

$244

Seattle (SEA)

$485

$419

$414

$1,907

$1,716

$1,837

Tampa (TPA)

$336

$256

$240

Washington DC (DCA)

$384

$236

$264

Source: Hyundai Motor America

Destination

Seoul, Korea (SEL)

Date of travel: July 12-18. Date of pricing: June 13.. Source: travelocity.com

30

Montgomery Business Journal July 2010

Quarterly Reports QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

$1.7B

$20.9M

$0.38

N/A

$1.7B

$16.6M

Profit rose 26%

hhgregg

$417.3M

$10M

$0.25

$0.26

$364.9M

$13.9M

Profit dropped nearly 28%

O’Charley’s

$271.5M

(-$4.3M)

(-$0.21)

N/A

N/A

$6.9M

Revenue declined 7%

$1.2B

$55.9M

$0.68

$0.67

$1.1B

$36.2M

Sales up 8%

Dress Barn

$665.5M

$48M

$0.59

$0.59

$375.7M

$23.1M

Revenue jumped 77%

Rue 21

$137.8M

$5.8M

$0.23

$0.19

$108M

$3M

Fred’s

$471.6M

$8.2M

$0.21

$0.20

$458.4M

$8.6M

Zale Corp. (Zale’s Jewelers)

$359.8M

(-$12.1M)

(-$0.38)

(-$0.95)

$379.1M

(-$19.5M)

Cracker Barrel

$578.2M

$14.4M

$0.61

$0.58

$567.6M

$12M

Average check rose 2.2%

Hibbett Sports

$184.5M

$17.3M

$0.59

$0.48

$157.7M

$10.9M

Profit surged almost 60%

Pacific Sunwear

$190.3M

(-$31M)

(-$0.47)

(-$0.35)

$223M

(-$9M)

Same-store sales fell 15%

Books-A-Million

$117M

$2M

$0.13

N/A

$118.2M

$2.1M

Announced quarterly dividend of 5 cents per share

Gap (Old Navy, Banana Republic)

$3.3B

$302M

$0.45

$0.43

$3.1B

$215M

Profit climbed 40%

Foot Locker

$1.3B

$54M

$0.34

$0.28

$1.2B

$31M

Profit jumped 74% on cost cutting, closing poorly performing stores

Red Robin

$275.5M

$5M

$0.32

$0.28

$270.8M

$3.8M

Revenue up 1.7%

Aeropostale’s

$463.6M

$45.4M

$0.48

$0.46

$408M

$31.7M

Same-store sales up 8%

Children’s Place

$422.1M

$27.9M

$1.00

$0.90

$401.9M

$23.5M

Online sales increased 22%

$1.9B

$112.5M

$0.34

N/A

$1.7B

$2.6M

One-time tax gain fueled profit gain

$1.4B

$55.6M

$0.46

$0.43

$1.3B

$46.3M

Sales increased 5.1%

NAME Winn-Dixie

Big Lots

Limited Brands (Victoria’s Secret, Bath and Body Works)

PetSmart Target

NOTABLE

Profit nearly doubled Revenue up 3% Inventory fell 9.2% on store closures

$15.6B

$671M

$0.90

$0.86

$14.8B

$522M

Abercrombie & Fitch

$687.8M

(-$11.8M)

(-$0.13)

(-$0.12)

$601.7M

(-$59.2M)

Revenue increased 14%

Chico’s FAS

$481.6M

$35.4M

$0.20

$0.20

$410.6M

$14.5M

Profit more than doubled

$99.9B

$3.2B

$0.88

N/A

$94.2B

$3B

TJX Cos. (T.J. Maxx)

$5B

$331.4M

$0.80

$0.78

$4.4B

$209.2M

Profit soared 58 percent

Dick’s Sporting Goods

$1B

$26.2M

$0.22

$0.14

$959.7M

$10.2M

Sales at stores open at least one year rose 8.2%

Home Depot

$16.9B

$725M

$0.43

$0.40

$16.2B

$514M

Profit jumped 41%

Lowe’s

$12.4B

$489M

$0.34

$0.31

$11.8B

$476M

Sales up 4.7%

Dillard’s

$1.4B

$48.8M

$0.68

$0.51

$1.5B

$7.7M

Cut costs, reduced inventory

J.C. Penney

$3.9B

$60M

$0.25

$0.25

$3.9B

$25M

Profit jumped 140%

$4B

$199M

$0.64

$0.62

$3.6B

$137M

Profit rose 45%

Wendy’s/Arby’s

$837M

(-$3.4M)

(-$0.01)

$0.01

$864M

(-$11M)

Arby’s same-store sales fell 11.5%

GameStop

$2.1B

$75.2M

$0.48

$0.47

$2B

$70.4M

Revenue increased 5%

Hot Topic

$162.6M

(-$1.8M)

(-$0.04)

(-$0.04)

$175.1M

$1.2M

Revenue at stores open at least one year declined 8.7%

Ross Stores

$1.9B

$142.3M

$1.16

$1.16

$1.7B

$91.4M

Profit jumped 55%

Stein Mart

$301M

$14.3M

$0.32

$0.23

$319.6M

$16.1M

Revenue dropped 5.8%

$717.6M

$19.5M

$0.18

$0.12

$611.6M

(-$18.7M)

Dollar Tree

$1.3B

$63.6M

$0.73

$0.84

$1.2B

$60.4M

Revenue rose 13%

Sears Holding Corp. (Kmart)

$10B

$16M

$0.14

$0.14

$10B

$26M

Profit declined 38%

Coldwater Creek

$243.1M

$2.3M

$0.03

(-$0.01)

$228.4M

(-$7.6M)

Shoe Carnival

$189.5M

$9.2M

$0.72

$0.71

$167.3M

$4.1M

Wal-Mart

Kohl’s

Williams-Sonoma

Profit rose 29%

International businesses up 21.4%

Revenue up 17%

Revenue increased 6% Profit more than doubled

July 2010 Montgomery Business Journal

31

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