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February 7, 2014 • Vol. 36, No. 6 • $1 • 28 pages

BANKING AND FINANCE

TARP recedes into history… Cover story page 4

» SportSnax roars out of gate, lands SEC clients {P 12} Around town {P 2} » Sekul puts passion, wood into boat building and restoration Ag news {P 24} » U.S. catfish producers get long-awaited win with inspections of alien fish

Renasant Bank closely examined the Treasury Department’s late 2008 offer of a loan to help it through a banking slump of historic proportions. Thanks, but no thanks, came the answer from the regional bank based in Tupelo. Renasant executives did not like the hardball terms then-Treasury Secretary Henry Paulson had included in the offer for participation in the Troubled Asset Relief Program, or TARP. Paulson, after all, came to Treasury as a Wall Street banker accustomed to the art of the deal and wasn’t going to refrain from exerting leverage. He insisted the common shares Treasury would buy would be at the falling share prices of the day and would have to be bought back at higher market rates when stability returned. Throw in the annual dividend requirement of 5 percent, and the deal

FOR RENASANT, REJECTING TARP CASH PROVIDED CERTAINTY AND FLEXIBILITY MBJ Focus {P 13}

» MBA programs » Manufacturing training Lists {P 20} » MBA programs

» Treasury set tough terms on stock purchases and left open questions about future conditions of the TARP loan By TED CARTER I STAFF WRITER ted.carter@msbusiness.com Just as any potential borrower looks over a loan offer and decides whether to take it,

See RENASANT, Page 4

http://msbusiness.com/events/50-women-nomination-form/

2 I Mississippi Business Journal I February 7 2014 CREATIVE ECONOMY

Sekul puts passion into boat building, restoration Photo courtesy of Shane Sekul

A fascination with art, including pottery and woodworking, has allowed Sekul to establish a thriving business on the Coast.

By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com

OCEAN SPRINGS — Shane Sekul’s passions for working with clay and wood have led him to making pottery and furniture and boat building and restoration. As a kid growing up in Biloxi, he said, “I didn’t play with GI Joes or toys, I always made things. Wood has always been a passion of mine.” At 18 he started building boats, fitting for someone from a family of Biloxi fishermen. When he went to Ole Miss, he discovered his artistic side, first in poetry and writing and then in working with clay. He studied at an art school in Baltimore. Sekul said in his “pre-Katrina heyday” he was throwing 500 pounds of clay a week. “I was only doing only pottery every single day for many years, digging three locations and blending the clay.” When he and his artist wife, Sherie, a jewelry designer, moved home to Ocean Springs, he concentrated again on wood working. He first built a canoe and a Dory riverboat, a small, shallow-draft boat. “I learned from a lot of mistakes but that’s the best way to learn. You can read about something all day long but until you try it you don’t see what works.” He was working on a 21-foot center console boat at his pottery studio when Katrina hit. “After Katrina there was such a demand for cabinetry and furniture I was overwhelmed with work.” Like creating pieces of pottery, Sekul finds turning boards from harvested wood into boats is rewarding. “There’s something about it,” he said of boatbuilding. “When you think about it, a wooden boat is like a floating sculpture. Everything is curved and beveled.” Sekul has built four boats and just finished a 12-foot stand-up paddle board. One of the boats is a 26-foot replica of a dugout canoe that he and a friend built for the city’s annual 1699 founding reenactment.

Sekul’s passion for restoring boats led to him to form the Mississippi Maritime Heritage Foundation in 2009 when someone donated a 65-foot shrimp boat, the Toni Diane, for restoration. The foundation’s mission is “to support the preservation and interpretation of the maritime heritage of the Gulf Coast and Mississippi River through maritime-based educational programs and opportunities for the coastal community.” There are 50 members. Sekul is still working on the Toni Diane and also a donated 40-foot schooler built in 1992 “It’s a replica of the schooners used to transport mail to the Florida Keys. It will be used for teaching sailing and for charters.” A third restoration project is a Sharpie Schooner named Redwing. “It’s looking better than it ever has,” he said. The boat has won numerous awards at wooden boat shows. Restoring a boat is time consuming and completely different from building one from scratch, he said. “You have to remove the old pieces and put them back in. It’s like building it backwards. You can build three boats before restoring one.” Sekul does interior and exterior woodworking projects on boats including railings, cabinets and walls and he repairs planks. Word of mouth recommendations bring more jobs. “I’ve been doing it for so long,” he said, “and I’m related to half the Coast.” A recent project was rigging out a sailboat that the owner bought without the boom or mast, just sails. “I thought, ‘this is awesome,’ to hand shape out a 26-foot mast like a giant toothpick,” he said. These days, he said, “I’m concentrating more on boat building, new construction instead of restoration.” Sekul is building three 14-foot Biloxi style skiffs he hopes to sell for $2,000 to $3,000, depending on whether the buyer wants a work boat or a showboat. Smaller boats, he said, are more affordable and are easier to maintain and transport.

Photo courtesy of Shane Sekul

Sekul’s work is varied and includes a rigging project on this sailboat.

Another current project is a pair of Torah stands he is building for a synagogue in Gulfport. “I never do anything I’m not interested in,” he said, “especially as far as my passion goes for wood, boats and clay. I’m lucky to have passion for something and a way to make money doing something I love to do.”

February 7, 2014

Mississippi Business Journal

INSIDE MONEY

The three E’s of tax policy are important for all of us

veryone remembers the so-called three “R’s” of childhood education — reading, writing and arithmetic. A basic and fundamental mastery of each of these was expected of all elementary students. And, in fact, a lack of proficiency in any of these could result in severe and negative repercussions, such as flunking a grade. The Internal Revenue Service, and by associated necessity the entire federal government, has their own variation on this theme which can be defined as the three “E’s” of tax policy. These three are: Extenders, Enforcement and Equality. Failure of Congress, the President, IRS bureaucrats and others in government to honestly address these will continue to have severe and negative repercussions — for the country as a whole. Let’s start with extenders. These are tax provisions that are typically enacted for a relatively short period of time, then re-enacted (i.e., extended) time-andagain. Putting aside the good policy arguments for fundamental tax reform, these extenders form a large base of the current tax code, and taxpayers rely on them. Now, the problem occurs when these provisions are allowed to expire with no firm plan for their future — as happened at the end of 2013. At present, tax credits for research and development activities and hiring disadvantaged workers, among many other credits, are at least temporarily out of the tax code. Other items such as bonus depreciation and generous expensing rules for asset purchases are also under suspension. These are just a few examples, but they highlight a major flaw in our tax policy. Businesses have a much harder time planning for the future when they don’t know how to compute their tax liability or how much it will be. For many, taxes are their largest single expense overall. If they can’t adequately plan, it is more difficult to commit to expansion, or hiring new workers. Now, all the provisions mentioned above — and more — may end up being re-extended retroactively to the start of 2014. However, nobody seems to know if or when this will occur. Even if extended, the likely extension period will only be until the end of 2014, or 2015 at the latest. Again, not helpful from a longer-term planning perspective. Enforcement is another hot-button issue. Recent statistics indicate that the likelihood of an individual’s federal tax return being audited by the IRS is less than one in 100. The current rate is .96 percent. This is a multi-year low, and the trend line is lower still due to budget cuts, retirements, focus on new responsibilities like the health care law, etc. Further, if you call the IRS for help, there is nearly a 4-in-10 chance you won’t get through and wait times can be excessive. Many times, if you do get through, you will merely be referred to IRS resources, such as the IRS website. Our tax system has always been built on an essential foundation of voluntary compliance. People file their returns and pay their taxes. A potential IRS exam is a great motivator. However, if the system is basically unknowable, as highlighted by the extenders, and somewhat unenforceable, as highlighted by IRS’ own statistics, what does this mean for the future of voluntary compliance? Finally, there is currently a great deal of discussion

around the topic of income equality or inequality in the United States and worldwide. This is truly a weighty issue with passionate views on all sides. But, given the progressive rate structure in our tax code, it is hard to argue that the well-to-do aren’t doing their part in paying taxes. In the most recent IRS statistics, the top one percent of taxpayers paid about

35 percent of all federal income taxes, while the top 10 percent paid 68 percent. The bottom 50 percent of taxpayers paid around three percent of the total. Issues related to the three “E’s” are very likely to dominate much of the tax policy discussion for the foreseeable future. Let’s hope the politicians and bureaucrats make some genuine progress on all fronts.

Flunking a grade should never be an option for the USA.

John D. Scott

» John Scott, CPA, is a tax partner at HORNE LLP and has more than 25 years of public accounting

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4 I Mississippi Business Journal I February 7 2014 BANKING and FINANCE

TARP recedes into banking history… » All but two Mississippi banks have repaid the rescue money By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

All but two Mississippi banks — both identified as small community lending institutions — have repaid the emergency capital received through the Treasury Department's Troubled Asset Relief Program, or TARP. By shedding their TARP debt, Mississippi's banks avoid a hardball provision of the loan program that requires institutions yet to fully repay the taxpayer-provided funds to pay 9 percent in annual dividends, up from 5 percent today. It’s a hefty increase, designed to encourage banks to pay back the money. But most of the banks still in debt to the Treasury Department still rely on that government capital to support their lending. And they don’t have many good options for raising new cash to replace it. While neither the Treasury Department nor Mississippi Banking Commissioner Jerry Wilson would identify Mississippi’s two tardy TARP recipients, Wilson said he does not foresee the two banks having difficulty repaying the money. “I don't think the Treasurer will take a loss on either of those,” Wilson said in an interview last week. Most Mississippi banks turned down the TARP money based on beliefs their capital reserves could outlast the approaching period of dried up capital sources. Ultimately, only 15 of the state's more than 80 banks accepted TARP help, according to the Treasury Department. A dozen more Mississippi banks participated in the Community Development Capital Initiative, or CDCI, a segment of TARP designed to help ease hardships the financial crisis placed on communities underserved by traditional banks. Through CDCI, Treasury provided $570 million in capital to banks, thrifts, and credit unions that qualified as CDFIs in February 2010, including approximately $250 million to Mississippi institutions. Community Bancshares of Mississippi, holding company for Brandon-based Community Bank and Community Bank entities elsewhere in the state, converted its TARP allocation of around $70 million of Community Development Capital Initiative funds, marking the largest allocation received among Mississippi’s banks. Banks that converted their TARP money into the CDCI program avoided the 5 percent interest rate of the conventional TARP money. They instead received the funds at 2 percent, though they must repay at 8 per-

TARP’S INSPECTOR GENERAL REPORTS AGGRESSIVE ANTI-FRAUD ENFORCEMENT By TED CARTER I STAFF WRITER ted.carter@msbusiness.com Federal authorities may not have collared the bankers who brought the U.S. banking system to its knees in 2008-2009. But they say they have stepped up prosecution of fraud that occurred in the use of nearly $500 billion in taxpayer money distributed through the Troubled Asset Relief Program, or TARP, to rescue the banking system. A 2014 president budget request from the Special Inspector General for TARP, or SIGTARP, says the IG wants to spend $56.4 million rooting out fraudulent uses of the TARP money. The money will also go toward the IG’s assessments of the effectiveness of the Treasury Department’s efforts to repair and reform the nation’s financial system and support the recovery of the housing market. The IG says it has had particular success with a SIGTRAP Hotline which has provided more than 31,700 contacts, 77 percent of which were referred for further investigation in 2012. “These contacts run the gamut from expressions of concern over the economy to serious allegations of fraud involving TARP,” the 2014 IG report said. The IG said 95 percent of its referrals to federal prosecutors have been accepted for further review. In January of 2013, the IG reported prosecutors had brought criminal charges against 119 individuals, including 82 senior officers (CEOs, owners, founders or senior executives). Prosecutors have gained criminal convictions of 83 defendants for TARP-related offenses that can include accounting fraud, mortgage modification fraud, fraudulent advance-fee schemes, false statements and obstruction of justice. Of the convicted, 35 have been sentenced to prison and others are awaiting sentencing. The IG says it has brought civil cases against 58 individuals, including 44 senior officers, and 47 entities. Orders of restitution, forfeiture and civil judgments total $4.15 billion, according to the IG.

cent any funds not used to assist underserved localities by 2018. Wilson headed Macon's Bank First as the banking crisis of late 2008 spread across the country. As a hedge against depleted capital, BankFirst ultimately accepted around $16 million in emergency

capital and later converted that debt into lower-cost capital from the Small Business Lending Fund, a federal program born of the banking crisis and meant to raise capital at smaller banks, which tend to lend

RENASANT

Continued from Page 1

lost even more of its appeal, said Renasant CFO Kevin Chapman, who served as the bank’s chief accounting and strategy officer when the invitation arrived to join the TARP. Beyond those terms, came language that gave Treasury the option of adding new conditions later on, Chapman said. “It was too openedended for our taste.” Another disincentive was the speed at which Treasury expected banks to decide on the offer, he said. “It was being Chapman forced down on us very quickly. We didn’t have much time to react. The document we got said the ‘terms of this agreement can change at any time.’” At that point, Renasant began thinking like a potential borrower or lender. “We would never enter into a deal with a customer that said the terms can change at any time.” The publicly-held Renasant, at the time a multi-state regional institution with assets of around $4 billion, further worried that taking TARP would limit its ability to pay shareholder dividends, according to Chapman. The capper came with the turn of public sentiment after the 2008 election. TARP had gone from first being seen as a firewall to later being a Wall Street bonanza paid for by taxpayers. This perception led to even more federal handcuffing of decision making in the banking sector, Chapman said. “Within three months it became corporate welfare so that banks that took this will ‘do this and will not do X, Y and Z.’” Ultimately, the need for capital was not sufficient to accept the trade-offs involved, the CFO added. “We felt we had our arms around where our actual capital position was.”

Smoke on the Horizon Something else happened on the way to the banking crisis that would heavily inﬂuence Renasant’s decision to reject TARP. Renasant executives peeled back the layers of circumstances that led to a default of a Birmingham real estate developer’s loan in fall 2007, when the real estate market still enjoyed a good measure of wheeling-anddealing. “The ﬁrst hint that something was wrong came out of our Birmingham group,” Chapman said. “They had a developer who See

See

TARP, Page 5

BANK, Page 24

February 7, 2014

TARP

Continued from Page 4

more heavily to small businesses. But many other of Mississippi's community banks â&#x20AC;&#x201D; and even larger ones such as BancorpSouth, Renasant and Hancock â&#x20AC;&#x201D; chose to go it alone, despite the higher capital requirements regulators sought at the time. â&#x20AC;&#x153;If you were just a small community bank, you were comfortable with your loan portfolio,â&#x20AC;? Wilson said. â&#x20AC;&#x153;They would have had no reason to go into the TARP program.â&#x20AC;? But TARP made sense if you had bad loans and needed to clean up a balance sheet and worried charge offs would put you below capital requirements, he added. History will ultimately grade the wisdom of the bank rescue settled on in the closing weeks of the George W. Bush presidency. Its main goals were: *Protect home values, college funds, retirement accounts, and life savings; *Preserve homeownership and promote jobs and economic growth; *Maximize overall returns to the taxpayers of the United States. Collectively, the Treasury Department says, TARP and the governmentâ&#x20AC;&#x2122;s other emergency measures prevented the collapse of the U.S. financial system and restored confidence in the system. That led, Treasury says, to restarting economic growth, and restoring access to capital and credit. In Mississippi, only a couple of banks went under in the years following the crisis. Neither took TARP money, Wilson said. Today, all of the stateâ&#x20AC;&#x2122;s banks are in the black, according to the FDIC. Wilson gives TARP a degree of credit for the current healthy of the stateâ&#x20AC;&#x2122;s banking sector. â&#x20AC;&#x153;I would give it a â&#x20AC;&#x2DC;B.â&#x20AC;&#x2122; I wouldnâ&#x20AC;&#x2122;t give it an â&#x20AC;&#x2DC;A.â&#x20AC;&#x2122; I think it did serve a useful purpose.â&#x20AC;? Looking back at the direction he took on TARP as CEO of BankFirst, Wilson said: â&#x20AC;&#x153;I think it was the right decisionâ&#x20AC;? to take TARP, A possible outcome that is not universally appealing to bankers or average Americans is that TARP cemented the governmentâ&#x20AC;&#x2122;s doctrine of â&#x20AC;&#x153;Too Big to Fail.â&#x20AC;?

Back in the money Often perceived as a mega charity effort, the injection of $475 billion that began with the outset of the banking collapse in late 2008 and early 2009 has actually netted the government $26.48 billion, according to the Treasury Department. Two other high-profile parts of the asset recovery program â&#x20AC;&#x201D; the rescues of American International Group and General Motors â&#x20AC;&#x201D; struggled at times but later

Mississippi Business Journal

â&#x20AC;&#x153;If you were just a small community bank, you were comfortable with your loan portfolio.â&#x20AC;? Jerry Wilson Mississippi Bank Commissioner

righted themselves. The government's overall support for AIG â&#x20AC;&#x201D; a multi-national insurance corporation â&#x20AC;&#x201D; peaked at approximately $182 billion. That amount included $70 billion that Treasury committed through TARP, and $112 billion committed by the Federal Reserve Bank of New York. As of Dec. 31, 2012, the $182 billion committed to stabilize the company had been fully recovered â&#x20AC;&#x201D; plus an additional positive return of $22.7 billion, the Treasury Department says. Treasury continued to hold warrants to purchase approximately 2.7 million shares of AIG common stock. On March 1, 2013, AIG purchased the remaining warrants, ending Treasury's investment in AIG. Treasury provided about $50 billion of TARP funds to GM in 2008 and 2009. By the end of 2012, Treasury had sold more than two-thirds (612 million) of the 912 million shares of GM common stock it originally held. On Dec, 21, 2012, GM bought 200 additional shares of common stock held by TARP at $27.50 per share, 10 percent above the three-day average of the previous closing prices, Treasury said, The stock purchase brought TARP $5.5 billion, Treasury added. The sale set the stage for Treasury to â&#x20AC;&#x153;to fully exit its remaining GM investment within 12-15 months, subject to market conditions,â&#x20AC;? the agency said. Treasury, meanwhile, exited its $12.4 billion investment in Chrysler in July 2011, six years ahead of schedule, having recovered $11.1billion. Treasury says, however, it is unlikely to fully recover the difference of $1.3 billion owed by the â&#x20AC;&#x153;Old Chrysler,â&#x20AC;? the entity that constituted the pre-2009 bankruptcy Chrysler..

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A member of the Mississippi Press Association www.mspress.org

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Website: www.msbusiness.com February 7, 2014 Volume 36, Number 6

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MBJPERSPECTIVE February 7, 2014 • www.msbusiness.com • Page 7

OTHER VIEWS

Legislators make duplicitous move with religion bill

n a bold, populist move, Mississippi senators recently voted to add “In God We Trust” to the official state seal. We’re joking about the move being “bold;” however, since the great majority of Mississippians identify themselves with a religion — most Christianity. Only a handful, 7 out of 100, said they had no religious faith. Adding the slogan to the state seal seems perfectly OK to us. In fact, until the story of Senate Bill 2681 broke, we sort of assumed the slogan was already there. Who reads the fine print of seals much anyway? Almost certainly the anti-Christian com-

munity will come out and cry foul, claiming the separation of church and state isn’t being followed and that their rights are being violated somehow by the new slogan. Most of that is hogwash, however. The interesting thing is that the same bill, titled the “Mississippi Religious Freedom Restoration Act,” does have one noticeable act of government unnecessarily at work. Part of the bill includes language that prohibits the government from being a “burden” in the way of a person’s right to practice religion. Unless Mississippi’s good senators plan a

» LETTER TO THE EDITOR

— The Natchez Democrat

» PERCOLATING

Whole Foods is a goood buy Ahead of the pending opening of Whole Foods Market in Jackson, Ted Carter wrote in a column that John Mackey, founder and cochief executive officer of Whole Foods, has put his “ego ahead of shareholders” due to Mackey’s statements in opposition to the Affordable Care Act. Mr. Carter’s piece had many statements about Mr. Mackey and Whole Foods which I found less than accurate. (Full Disclosure: My daughter works for Whole Foods.) John Mackey did an op-ed in The Wall Street Journal in 2009 in which he was critical of the Affordable Care Act put forth by the Democrats and President Obama. Then last January, Mr. Mackey appeared on National Public Radio and referred to President Obama’s health care plan as “fascism.” The next day, Mackey appeared on MSNBC’s “Morning Joe” and said “that was a bad choice of words on my part.” A year later, Mr. Carter is staying with the “fascism” comment (Are we piling on, Mr. Carter?) and says Mr. Mackey is “hammering dents” in the “Whole Foods brand.” Let’s look at the Whole Foods numbers because since Mr. Mackey’s original editorial in 2009, I am unable to find any “dents” in the brand. The calendar quarter after Mr. Mackey’s editorial in 2009, Whole Foods had total revenues of $1.8 billion and in the most recent quarter, $3 billion of revenues, or sales growth of around 12 percent annually. Stockholders have also been happy with the company as the common shares have moved during this period from a split-adjusted $14 to a recent $51. Early last year, Whole Foods split their stock and Mr. Carter thinks this “won the hearts and minds of investors.” Oh, come on now. In the long run, stock splits are a non-event to stockholder returns. In the 1983 annual report for his

second secession soon, we’re fairly certain that Mississippi is still a proud member of the United States. As members of the United States all Mississippi citizens should enjoy complete religious freedom by way of the First Amendment to the U.S. Constitution — which trumps anything the good senators seek to pass in Jackson. While the bill may make us all feel good, the reality is, it’s a bill seeking out a problem where one doesn’t exist.

company, Berkshire Hathaway, Warren Buffett likened stock splits to one desiring ten $10 bills instead of one $100 bill. Whole Foods management should know that investors respond to financial performance and evidence of value creation, not cosmetic non-economic events like stock splits, that have zero impact on value. “Today, the entire healthy foods sector appears headed for sick bay, though Whole Foods less so. . .” I’m not so sure. Our healthy food friends in Ridgeland, Fresh Market, said in its most recent quarterly report that “sales are up 13% year over year,” while Kroger announced that its quarterly sales were up 3.2 percent over the same period last year. In their last quarterly report, Whole Foods said quarterly sales were up 13.7 percent for a comparable 12 week period the previous year. I would not want to be short the healthy foods segment of the food business over the next five years. And at the end of your editorial, you suggest that Mr. Mackey should “shut up.” John Mackey is an extraordinary businessman, and as is often the case with strong-willed individuals, outspoken. Many bright, rational and good Americans have disagreed on how our country should address its health care problems, and to be sure, we have a problem. Health care costs in our country consume 17 percent of our gross domestic product while most other developed countries put the number at less than 11 percent of GDP. Accordingly, I welcome John Mackey’s observations in the national conversation on this important topic. And no, it’s not gonna dent the Whole Foods brand. Tim C. Medley Ridgeland

Mississippi sinking on national scorecard

s we hear reports from Jackson about how the state economy and tax collections have improved, it’s useful to glance every so often at other views. A report produced by the Corporation for Enterprise Development gives us such a glance. “Treading Water in the Deep End – CFED’s Assets and Opportunity Scorecard,” published in January, provides a state-by-state (and District of Columbia) scorecard that shows how well residents are faring. It looks at five categories: Financial Assets and Income, Businesses and Jobs, Housing and Homeownership, Health Care, and Education. Mississippi ranks dead last overall, down two slots from last year. Accompanying us in the bottom five are, in order from the bottom, Nevada, Georgia, Alabama and South Carolina. The top five, in order from the top, are Bill Crawford Vermont, North Dakota, New Hampshire, Wyoming and Alaska. In each of the five categories listed above, Mississippi ranked 50th, 51st, 26th, 32nd and 51st, respectively. The report cited these worrisome trends nationally: “Despite an improving national economy, liquid asset poverty rates have barely budged. The percentage of households in the U.S. who lack the savings needed to weather a financial storm like a job loss or medical emergency is holding tight at 44 percent, suggesting that almost half of Americans are on the brink of financial calamity. The Scorecard also found that problems like growing student loan debt and high rates of consumers with subprime credit — especially among households of color — are to blame for Americans’ lingering inability to get ahead and build a more secure financial future for themselves and their families.” State leaders may think the ship of state is riding a crest, but a hole in the bottom will sink it. Bill Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.

PERSPECTIVE

8 I Mississippi Business Journal I February 7, 2014

» HOW TO WRITE

» RICKY NOBILE

Letters to the editor are one of the most widely read features of the Mississippi Business Journal, and they give everyone a chance to voice their opinions about current affairs. We’re interested in what you think and we welcome Letters to the Editor for publication. Here are the guidelines: >> Letters should not exceed 300 words in length as a general rule. >> All letters must bear the writer’s address and telephone number. Street addresses and telephone numbers will not be published, but may be used for verification purposes. Letters may not appear without the author’s name. >> Form letters, thank you letters and letters to third parties generally are not acceptable. >> Letters must be typed or e-mailed. >> Letters must conform to good taste, not be libelous and not involve personal attacks on other persons. >> All letters are subject to editing, and become the property of the Mississippi Business Journal. >> Letters can be sent to The Editor, The Mississippi Business Journal, 200 North Congress, Suite 400, Jackson, MS 39201, delivered to the newspaper during regular business hours or e-mailed to editor@msbusiness.com. They may also be faxed to Ross Reily at (601)-364-1007.

» CORRECTIONS The Mississippi Business Journal takes seriously its responsibility to provide accurate information, and will correct or clarify articles produced by the editorial department if we have made an error or published misleading information. The correction will be placed in the perspective section. If you see inaccuracies in Mississippi Business Journal news stories, please report the mistake via e-mail at editor@msbusiness.com.

»FROM THE GROUND UP

So you want to be a residential real estate investor

esidential real estate rents are on the rise, interest rates are low and the stock market is scary. So is now the time to buy that residential investment property? Nationwide, landlords raised rents by an average of 0.8 percent to $1,083 a month in the most recent quarter, according to a report by Reis Inc., a real-estate research firm. Rents climbed 3.2 percent for all of 2013. Also, many financial institutions and other investors bought properties at the bottom of the economic recession and are now ready to unload. Urban areas in particular are beginning to see rental and real estate prices that are back to prerecession levels. This is the time that some individual investors see putting some of their money in one or more rental properties. They understand that the return on investment can often be better than the stock market or certificates of deposit at the local bank. Some of those would-be investors watch one or more of the myriad of cable television shows that make it seem that buying, rehabbing and selling real property is a relatively easy and exciting proposition. If that bug is nibbling at you, then you should be aware of some of the techniques to finding and managing just the right property. Assuming that you have either the cash and/or cash and credit to buy a rental property or two, there is a process that you should be aware of and adhere to. It is based on interviews with residential real estate investors, review of current readings on the subject and the personal experience of the writer. One of the first things you need to do is decide whether you are cut out to be a landlord/property manager. It is not always for the faint of heart. Sooner or later, there will be calls in the middle of the night, late payments, tenant complaints and a host of other issues that you have never thought of. On the other hand, if you like dealing with peo-

ple, attention to detail, working with physical things and keeping good records, then being a property manager may be just the thing for you. If not, but you still want to invest in residential real estate you can do so by hiring out the property management function. It will decrease your return on investment, but it may well be worth it Phil Hardwick because you will not have to be involved with the aforementioned issues. The next task is to find the property. Doing so means finding the right neighborhood. You want a neighborhood where property values and rents will rise in the future. One thing that can drive rental rates is the presence of institutions such as hospitals, colleges or major employers. People who work in such institutions often have a need for rental housing because they are going to be in the area only temporarily. This creates demand as well as turnover in the affected neighborhood. This can be a good thing because it affords the opportunity to adjust the rent to current market conditions. It also means more work for the hands-on investor because the property will need to be cleaned or refurbished after each tenant vacates the premises. Neighborhoods have a life cycle. The stages of the cycle are growth, stability, decline and renewal. During the growth stage property values are rising, there is a high rate of home ownership and properties are well-maintained. It would be unusual to discover a suitable rental investment property in the growth stage of a residential neighborhood. The second stage is one of stability. Prices have leveled out and homeowner rates still remain high. The decline stage begins as homeowners attempt to sell their properties, but are unable to immediately do so. Those homeowners are

probably moving up to better and newer neighborhoods. Market conditions have caused values in the neighborhood to begin declining and deferred maintenance is becoming evident. One of the things to look for is the condition of roofs. That is because replacing roofs is relatively expensive, and owners tend to spend money on items that will make the property more appealing to renters. Thus, one of the first things you want to do is to find the right neighborhood and learn as much as possible about it, especially real estate sales prices of properties that sold and rental rates of properties that are on the market. And it is not just current rental rates, but those for at least the past 18 months. Finding that information will involve talking to real estate agents, scouring old newspaper advertisements and doing as much research as possible online. A trip to the local recorder’s office to see how much turnover has occurred in ownership may even be in order. Learning about the neighborhood should give you enough information to make a determination as to which stage of the life cycle the neighborhood is currently in. Once you find the right neighborhood, it is time to narrow the search down to the ideal property or properties. That takes patience and the ability to act quickly because there are other investors who are doing the same thing in one form or another. In general, if your goal is increase in property value in the future then you should buy the worst house in the best neighborhood from a distressed seller. And you should never pay market value. In part two of this column we will look at how to find the best house in which to invest in your chosen neighborhood. Phil Hardwick is coordinator of capacity development at the John C. Stennis Institute of Government. Pease contact Hardwick at phil@philhardwick.com.

February 7, 2014

Mississippi Business Journal

DeSoto 4.5

Tunica 12.3

MISSISSIPPI’S DEC. UNEMPLOYMENT FIGURES

Tate 6.5

Nov ’13 1,280,900 97,500 8.3 7.6 1,183,400

Dec ’12 1,346,100 122,800 8.9 9.1 1,223,300

’12 Avg. 1,333,100 122,100 XXX 9.2 1,211,000

Coahoma 11.6

Yalobusha 8.1

STATE OF MISSISSIPPI Unemployment Insurance Data •• Initial UI Claims Continued Claims Beneﬁts Paid Weeks Paid First Payments Final Payments Average Weekly Beneﬁt

Dec ‘13 154,408,000 9,984,000 6.7 6.5 144,423,000

Nov ’13 155,046,000 10,271,000 7.0 6.6 144,775,000

Dec ’12 154,904,000 11,844,000 7.9 7.6 143,060,000

Dec 2013 13,029 101,402 $14,294,194 75,972 4,829 2,047 $188.15

’12 Avg. 154,975,000 12,506,000 XXX 8.1 142,469,000

Nov 2013 10,428 77,815 $10,785,328 57,654 3,421 1,831 $187.07

Leflore 10.9

Carroll 7.7

Montgomery 9.6

Humphreys 12.5

Holmes 14.4

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Lowndes 8.3

Oktibbeha 7.4

Winston 10.2

Leake 8.3

Neshoba 5.8

Scott 5.2

Newton 6.5

Noxubee 13.2

Kemper 10.0

Madison 5.2 Warren 8.4 Rankin 4.5

Hinds 6.6

Claiborne 11.7

Adams 6.4

Wilkinson 9.6

Copiah 7.4

Franklin 8.3

Lincoln 7.2

Amite 8.7

Pike 8.4

4.5 - 5.2 5.3 - 8.2 8.3 - 12.5 12.6 - 15.6

Jasper 7.8

Smith 6.9

Simpson 6.2

Covington Jones 6.1 5.4

Walthall 8.8

Marion 8.7

Lamar 5.2

Pearl River 7.1

Hancock 7.2

Lauderdale 7.5

Clarke 8.1

Wayne 9.4

Lawrence Jeff Davis 8.0 8.9

Unemployment Rates ates

— Mississippi Department of Employment Security

IS WORTH REPEATING!

Yazoo 9.5

Issaquena 10.4

Monroe 10.2

Clay 15.6

Choctaw 8.4

Attala 9.1

Jefferson 13.3

** Average for most recent twelve months, including current month •• Unemployment Insurance amounts presented in this section only represent regular UI beneﬁts, federal program amounts are not included. Labor force amounts are produced in cooperation with the Bureau of Labor Statistics. Note: Unless indicated state and county data presented are not seasonally adjusted.

GOOD NEWS

Tishomingo 7.8

Itawamba 7.0

Chickasaw 9.9

Webster 10.5

Washington 12.4

Moving Avg.** 155,389,000 11,460,000 XXX 7.4 143,929,000

Dec 2012 13,235 114,484 $15,753,280 83,622 5,252 2,188 $188.39

Calhoun 8.5

Grenada 7.5

Sunflower 12.6

Lee 7.0

Pontotoc 6.4

Quitman 11.7

Bolivar 9.2

Moving Avg.** 1,300,200 114,200 XXX 8.8 1,186,000

Lafayette 5.4

Sharkey 10.9

UNITED STATES Labor Force Data Civilian Labor Force Unemployed Unemployment Rate (Adjusted) Unemployment Rate (Unadjusted) Employed

Alcorn 6.5

Tippah 8.5

Union 5.4

Tallahatchie 10.3

Dec ‘13 1,267,700 92,100 8.0 7.3 1,175,600

Benton 9.5

Prentiss 8.0

Panola 9.5

Labor force and employment security data STATE OF MISSISSIPPI Labor Force Data Civilian Labor Force Unemployed Unemployment Rate (Adjusted) Unemployment Rate (Unadjusted) Employed

Marshall 7.9

Forrest 6.4

Perry 8.4

Stone 6.6

Harrison 6.9

Greene 9.4

George 8.2

Jackson 7.9

Source: Labor Market Data Publication December 2013 Design: Labor Market Information Department, MDES

10 I Mississippi Business Journal I February 7, 2014 ENERGY

TVA loses $67M in first quarter of 2014 KNOXVILLE, Tenn. — The Tennessee Valley Authority reports that operating expenses declined and its bottom line results improved in the first quarter of fiscal year 2014 compared with the same quarter a year ago. TVA reported a $67 million net loss on operating revenues of $2.38 billion in the first quarter of 2014, an improvement over a $245 million loss on revenues of $2.58 billion for the same period last year. TVA’s first-quarter filing to the U.S. Securities and Exchange Commission covered the three months ended Dec. 31, 2013, a period between summer and winter when lower demand for electricity typically results in a net loss. Compared with last year, operating and maintenance expenses were down $112 million, or 12 percent, in the first quarter of 2014. This was driven by a $91 million decrease in expenses from planned outages, projects and scheduled maintenance, and a reduction in contract labor through cost-saving initiatives. A $10 million increase in coal-fired operation outages partially offset the O&M savings. Total operating expenses were 14 percent lower than the same period last year, driven primarily by a 32 percent decrease in fuel expenses. TVA’s nuclear and hydroelectric generation increased 29 percent and 30 percent, respectively, compared to the first quarter of last year, helping to drive the lower fuel costs. A 2 percent increase in purchased power expense also partially offset higher gas prices.

FROM THE PUBLISHER

Who gave up the money? Health care and our shifting economic priorities

Alan Turner

uring the past few weeks, a number of very large, high-profile companies have announced that they are dropping existing health benefits for part-time employees. In the past year, other large companies have announced that they are suspending health benefits for spouses. With the pre-eminence of health care in the United States these days (and few would argue with the fact that health care is arguably the biggest and most consistent news item in today’s media world), one would assume that these companies are undertaking such moves from real or perceived necessity.That’s especially true since most middle income workers today regard health care benefits as one of the most important parts of their compensation package. Taking such benefits away, one would think, would be a serious de-motivating factor for workers. But when one looks at the numbers, and the escalation in health care costs, it’s hard to argue with any company’s decision to reduce or eliminate benefits. In fact, it would be hard to imagine that this trend will not escalate during the next 2-3 years. Consider the following facts as reported by the federal government: In 1960, a little more than 50 years ago, total health care spending in the United States represented about 4.4 percent of the country’s GDP.

That means that the remaining 95.6 percent went to entities other than health care providers. Fast forward to 2012. Total health care spending in the United States represented over 17 percent of the nation’s GDP. This means that only about 83 percent of the GDP went to entities other than health care providers. This would seem to indicate that industries and businesses other than health care must have given up a very great deal of money relative to the GDP. The trend seems obvious: when any single sector of the economy grows faster than the GDP grows year after year, other sectors must be declining relative to the GDP. One could argue that offshoring has been a result of this shift, as companies sought and found ways to reduce their labor and manufacturing costs. Yes, many high paying jobs have undoubtedly been created in health care. But we’ve also seen a corresponding decline in what we would think of as the “blue collar middle class,” and millions of families have slipped down the economic slope as a result. Consider also the growth in health care spending in the United States versus other developed nations, based on OECD numbers. In the U.S., health care spending in 2012 was 17 percent of our GDP, the highest among all developed nations in the world. In the United Kingdom, the number is 9.6 percent. In Japan

(reportedly with the world’s longest life expectancy), it’s 9.5 percent. In France, it’s 11.6 percent. In Australia, it’s 9.1 percent. In Canada, it’s 11.4 percent. And like Japan, most of these nations have longer life expectancies than the United States. This is not in any way disparaging to the American health system, as there are many, many health professionals who work in a dedicated and tireless fashion to deliver quality health care to millions of those in need. Instead, it’s simply a question of sustainability. If the current trends continue, health care spending in the U.S. will reach and top 20 percent of our GDP within the next several years. That means that other sectors of our economy will have to give up many more billions of dollars annually in order to fund the increase in health care spending. Wouldn’t that suggest much less investment in new facilities, new jobs, and new development (outside of health care)? All of us want access to quality health care. Obviously, none of us would choose to be sick, or die, due to lack of vital health care services. The question is: can we afford it if the ongoing trend continues? If not, where do we go from here?

AUTOMOTIVE

here in the U.S., continue to spur growth in Nissan’s sales and market share.” Nationally, Nissan total U.S. sales for January 2014 were 90,470 units, an increase of 11.8 percent compared to the 80,919 sold in January last year. Rogue crossover sales also set a January record, with 13,831 deliveries in the month, an increase of 54.5 percent. January marked just the second fullmonth of sales for the 2014 Rogue, which is being built at Nissan’s Smyrna, Tenn., assembly plant. Sales of the all-electric Nissan LEAF set a January record and increased 92.6 percent to 1,252. Nissan Juke sales set a January record at 3,442, up 45.8 percent.

replace any other form of identification. “The Mississippi Voter ID card does not contain your birthdate or other personal information,” says Hosemann. “Along with security features, only your name, address, county and photograph appear on the card.” Acceptable forms of photo ID include: a driver’s license; photo ID card issued by a branch, department or entity of the State of Mississippi; U.S. passport; government employee ID card; firearms license; student photo ID issued by an accredited Mississippi university, college or community/junior college; U.S. military ID; tribal photo ID; any other photo ID issued by any branch, department, agency or entity of the U.S. government or any state government; and, Mississippi Voter ID card.

MBJ Publisher Alan Turner, can be reached at alan.turner@msbusiness.com

FURNITURE

Organizers high on spring furniture trade show TUPELO — The Spring Tupelo Furniture Market opened Thursday with organizer saying that preregistration numbers were up nearly 30 percent and available space is 99 percent filled. The biannual furniture industry trade show ends on Sunday. Market president Kevin Seddon tells the Northeast Mississippi Daily Journal if the weather cooperates and if the early numbers hold up, the spring market could be good for both buyers and sellers.

OUTDOORS

Burning and birds — workshop offers answers Mississippi State University is offering land management workshops in Panola and Pike counties. The workshops are designed for landowners, foresters, loggers and wildlife biologists. The MSU Extension Service, Forest and Wildlife Research Center, and the Mississippi Department of Wildlife, Fisheries and Parks will host the Game Bird Workshop in Batesville on Feb. 21 and in McComb on Feb. 28. The $30 registration fee includes lunch, snacks and publications.

Sales of Mississippi-made Nissan vehicles jump U.S. sales for Nissan jumped 11.8 percent from January 2013 to January 2014, a trend that was very much reflected in sales of vehicles produced at the Nissan plant in Canton. Mississippibuilt product highlights included: » Sales of the Nissan Frontier pickup rose 87.9 percent to 4,931 units from 2,624 in January 2013. » Nissan Altima sales totaled 22,515 units in January, an increase of 4.9 percent over the 21,464 sold in January 2013. » Sales of Nissan Xterra rose 52.3 percent in January to 1,518 units after the sale of 997 vehicles last year. » Nissan Sentra sales rose from 8,979 to 9,127 units, an increase of 1.6 percent. “In spite of challenges posed by mother nature, Nissan continued on a roll in January, marking 10 monthly sales records in the last 11 months,” Fred Diaz, Nissan’s senior vice president for U.S. Sales & Marketing, Parts & Service, said in a news release. “Core models such as our all-new Rogue, now built

GOVERNMENT

SoS fielding questions about voter ID cards JACKSON — Some circuit clerks around the state have contacted the Secretary of State’s Office regarding the number of individuals attempting to obtain a Mississippi Voter ID card when they already have an acceptable form of voter ID. “Only Mississippi voters who lack an acceptable form of voter ID are eligible for a Mississippi voter ID card,” says Secretary of State Delbert Hosemann. “The state will not pay for a Mississippi Voter ID card if you already have another form of acceptable photo identification.” A Mississippi Voter ID card is designed to be used for voting purposes only. It is not meant to

AGRICULTURE

Soybean board offering irrigation meetings CANTON — Several upcoming meetings hosted by the Mississippi Soybean Promotion Board (MSPB) will address increasing irrigation efficiency for the state’s farmers. The three meetings will feature Mississippi State University Extension Service irrigation specialist Jason Krutz, Ph.D., and other agricultural specialists, who will discuss how greater irrigation efficiency can positively impact farmers’ profit potential. Go to www.mssoy.org, or call (662) 363-2911 for more info.

February 7, 2014

Winter woes » January shapes up to be one of most frigid on record Robert Latham admits that when the current Severe Weather Preparedness Week was being planned, he and his staff at the Mississippi Emergency Management Agency (MEMA) were concerned that the public would largely ignore it. But that is no longer an issue after last month when the state was rocked by numerous arctic blasts and two winter storms in less than a week in Central and South Mississippi. “If there is one thing we learned from January is that we need to rethink what is ‘normal weather,’” said Latham, executive director of MEMA. “We have to be prepared.” Emergency management officials have indeed been busy so far this year, and much of their efforts have been focused on weather-related events. It was not the coldest January on record in Mississippi, but it easily made the top 10 and was the most frigid seen this century. And though the cold and ice and snow dominated headlines last month, it was also one of the driest Januarys in Mississippi history, leaving areas parched and at a high risk for wildfires going forward. According to the National Weather Service, last month was frigid compared to the historical average. For example, Jackson’s historical mean low temperature for January is 35 degrees, but recorded temperatures as low as 15 degrees last month. The Capital City’s mean temperature last month was 40.2 degrees, the ninth-coldest January in state history. Tupelo’s average low temperature for January is 35 degrees, but the Northeast Mississippi city saw the thermostat fall repeatedly into the teens and single digits with the lowest temperature hitting 6 degrees. On January 7, the Tennessee Valley Authority, which serves parts of North Mississippi, recorded the second-highest winter peak demand in the utility’s history with the average low across its service footprint bottoming out at 4 degrees. The farther one went south, the more extreme the cold compared to historical data. Hattiesburg recorded a mean temperature last January of 41.8 degrees, the fourth-coldest in Hub City history. The average low for January is 37 degrees, but residents saw an extreme low of 15 de-

Mississippi Business Journal

OUTDOORS

EMERGENCY MANAGEMENT

By WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

grees last month. But the most significant impact was caused by two winter storms that dumped ice and snow over much of Central and South Mississippi. On Jan. 23, Southwest Mississippi, including Natchez, saw snow as arctic air filtered into the state. The highest snowfall totals of 1-3 inches occurred in Adams County, but there were reports of light snow from Vicksburg to Jackson to Hattiesburg. Snow persisted

”If there’s one thing we learned from January is that we need to rethink what is ‘normal weather.’” into the early afternoon hours of Jan. 24. That was a relatively minor event compared to the winter storm that rocked South and Central Mississippi Jan. 28. Areas along and north of a line from around Natchez to just south of Meridian began to observe precipitation that initially fell as sleet but gradually transitioned to snow. The Jackson metro, particularly areas in southeastern Rankin County, saw 2-4 inches of snowfall, with maximum of 4 inches in the Puckett area. Snow accumulation extended into north central Mississippi up to the Highway 82 corridor near Indianola eastward towards Macon but only a light dusting occurred in these regions. South of the mixed precipitation line, significant icing and sleet occurred in the region with upwards of 13 inches of sleet and snow. The most significant icing occurred into far southern Marion, Lamar and Forrest counties. Significant icing on the roadways lingered as temperatures remained below freezing until Jan. 30 and led to multiple accidents and issues with travel as well as five fatalities. In addition to freezing water systems, the cold weather and winter precipitation wrecked havoc on commerce statewide. In Natchez, businesses were paralyzed when the Mississippi River bridge became impassable. On the Coast, Boomtown Casino closed and Ingalls Shipbuilding in Pascagoula had to scrap a shift when employees couldn’t get to work. The storms forced a major logistical realignment at MEMA.

“MEMA has most of its winter weather assets in North Mississippi,” Latham said. “We had to shift those assets south due to the winter storms. South Mississippi simply does not have the resources for a major winter storm, much less two in less than a week.” Agriculture largely escaped the winter woes as crops are generally out of the field. Catfish farmers, though, were heavily impacted. Ben Pentecost, a catfish producer in Doddsville and president of the Catfish Farmers of America, said his crews struggled in late January to harvest during one of the state’s cold blasts only to have their nets freeze solid in 19-degree weather. “We were fortunate that we didn’t have snow on top of the ice,” Pentecost said. “Snow would have choked sunlight to the ponds, which affects oxygen levels. We were lucky — our mortality rates should be low.” Pentecost added that the ice did impact his ponds’ automated oxygen level-checking system, causing buoys to turn upside down, and his crews were laboring late last week to cull fish from his iced-over ponds for required flavor testing. Still, he said Mississippi producers came out fine compared to their neighbors. “In Alabama, producers culled their fish in anticipation of (the last arctic blast), only to have their trucks get trapped on icy roads,” Pentecost said. “The fish were in the net for three days — that’s a long time.” Despite the ice and snow, the state was exceptionally dry in January. As example, Vicksburg’s annual average precipitation for January is 6.28 inches. The Central Mississippi city only saw 1.89 inches of moisture last month. Biloxi averages 5.07 inches of precipitation in January, but only recorded 2.32 inches last month. This has heightened wildfire concerns. Though much of the state received welcome rain this week, several counties had already enacted burn bans, and a South Mississippi firefighter was killed last week while fighting a wildfire near Liberty in Amite County. “Last week we were worried about ice and snow, and now we’re concerned about wildfires, which we normally don’t see in Mississippi,” Latham said. “There appears to be a new norm in our weather, and we have to adjust.” In addition to winter-related issues, in January MEMA also dealt with a biodiesel plant fire near New Albany and a train derailment near New Augusta, both of which caused massive evacuations of homes. Latham stopped short of calling last month the busiest January in MEMA history, but said it was “unusually active.” MEMA public information officer Brett Carr summed it up succinctly: “It has been crazy.”

Special to the Mississippi Business Journal

They might be called golf carts, but most customers today are interested in them for hunting or tailgating.

GOLF CART POPULARITY DRIVING BUSINESS By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com David Dreher is used to selling golf carts. These days he sells an average of one cart a day, about 300 to 400 a year. What’s different lately is the buyer. “It’s rare we sell to a golfer,” Dreher said. “Everybody wants carts for tailgating, cruising around the neighborhood or hunting.” He figures for every 15 cart buyers, “one guy is a golfer.” Sales are so good that Dreher was just named 2013 Dealer of the Year by Madjax, a leading maker of custom golf cart accessories. He is a past Diamondhead Business of the Year winner chosen by the Hancock County Chamber of Commerce. Dreher has been selling golf carts for eight years and three years ago he opened Gulf Coast Golf Carts on the outskirts of Diamondhead, a golfing community with two courses and accompanying golf cart paths. It’s common to see non-golfing residents running errands in their customized carts. Dreher himself lives in Diamondhead and said he loves to “hope on my cart and cruise around.” The cart’s popularity has spread throughout Hancock County, where they are a favored mode of transportation during festivals and Second Saturday Art Walks. This year, the new Mystic Krewe of the Seahorse will take to the streets of Bay St. Louis not on floats but in decorated golf carts. Cart fans come to Dreher from a wide area. “The average customer drives about two hours to buy from us,” he said. They come from Baton Rouge, Hattiesburg, New Orleans and all along the Gulf Coast to Mobile. “It’s a good hub location to reach a pretty good market for us,” he said. See

GOLF CARTS, Page 12

12 I Mississippi Business Journal I February 7 2014 SPORTS

‘Virtual concessions’ » SportSnax roars out of gate, lands SEC clients BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

OCEAN SPRINGS — Though just out of college, business partners Eric Hill and Daniel Payne are seasoned entrepreneurs, having formed several successful businesses, two while still in high school. However, their current endeavor — SportSnax, a service offering smartphone-ordered, seat-delivered concessions during sporting events — is their most significant to date. Just last week, SportSnax landed the University of Alabama, its second Southeastern Conference client. And, the company was on the cusp of a third contract at press time. Hill says one of the keys to SportSnax's success is the working relationship he has with Payne. Hill, who serves as SportSnax’s COO, is the technical/engineering guy while CEO/CFO Payne's strength is business strategy, accounting and finance, which Hill says "makes my eyes glaze over." When the concept of SportSnax came to Payne, the first person he called was Hill. "I knew if I did this thing, I'd have to have Eric," Payne says. The pair grew up a state apart. Payne called Ocean Springs home, and quickly showed an uncommon business acumen. Rather than just mowing grass, Payne built a successful landscaping/yard-cutting enterprise while still in high school. He would subsequently take that nose for business to Mississippi State University as an accounting major. Hill grew up in Sterlington, La., and also formed a startup while still in high school. HillTech, a web development and management company, supported customers in more than a dozen states when he sold it after five years. Hill found Payne's name through a young entrepreneurs program. Seeing Payne was at Mississippi State, where Hill was headed to study industrial and systems engineering, he contacted Payne and proposed a meeting. The partnership clicked immediately. Their first joint venture was in publishing while still at MSU. The pair successfully launched High Cotton News, a weekly newspaper in Starkville that reached 50,000-plus readers, and then they added more publications, including the biannual Starkville Menu Guide. In 2010, Payne had earned his bachelor's degree in ac-

GOLF CARTS

Continued from Page 11

Dreher started selling carts right out of Southern Miss, and when he moved to Diamondhead he bought his own basic cart for $800. He ordered some parts online that arrived damaged and after a particularly bad customer service experience he decided he could do a better job. “I started selling parts and taking orders out of my house,” he said. Business grew quickly and he had to move to a small shop next door to his wife’s pet shop. Business continued growing and he eventually bought land for a building. (The landowner asked him to throw in a golf cart as part of the asking price.) Today he has ﬁve employees

countancy and was working in his field (he would subsequently earn an online MBA from Delta State University to meet continuing accounting education requirements) while Hill worked towards his graduation (class of 2012). It was during this period that the concept of SportSnax was developed. Payne was attending an MSU sporting event when his girlfriend, who wanted something from the concession stand. Payne didn't want to leave his seat and miss the action.

"It created a conundrum," Payne quips. Payne credits his girlfriend (now fiancée) with sparking the idea for "virtual concessions" — a service that would offer smartphone users the ability to order concessions and have them delivered to their seat at sporting events. Payne remembers, "She said, 'You know, if I was at home I could order a pizza online — I can even do banking, but I can't even order something to drink here.' For the rest of the game, all I could think about was revenue models." Payne contacted Hill, who assured him the idea was not only great but also doable. They got a boost from their alma mater when Hill landed a grant through MSU's Thad Cochran Endowment for Entrepreneurship. The funding helped meet legal costs and gave the young company they dubbed SportSnax, a unit of the duo's parent company Blue Ocean Communications, LLC, some early operating capital. SportSnax worked hard to come up with a system that is easy to use. There are no apps or downloads for the service that is compatible with iOS, Android, Blackberry OS and Windows Phone. Customers go to the team’s customized SportSnax page and order. The order is automatically routed to the nearest concession stand, and customers can either pay with their card or cash upon delivery. In early 2013, SportSnax officially formed, and the company quickly landed MSU. SportSnax launched its service — dubbed DawgSnax in Starkville — in the spring of that year at Dudy Noble Field baseball games. Working in conjunction with MSU's foodservice provider Aramark, the SportSnax service proved successful, with average delivery time less than five minutes after ordering.

Special to the Mississippi Business Journal

With a few taps on the screen, customers can use their smartphones to have concessions delivered to their seats.

With that success, MSU contracted SportSnax for the service at men's basketball games in Humphrey Coliseum. DawgSnax successfully debuted there Jan. 11 during the Bulldogs' game with cross-state rival Ole Miss. Now, SportSnax will be offering its service at University of Alabama home games in Coleman Coliseum. The company landed the Crimson Tide last week after several weeks of negations. Still in beta testing, an official launch date in Tuscaloosa had not been set at press time. And, SportSnax is working a third contract. Still in negotiations, the partners could not offer details at press time but it would be similar to deals struck with Mississippi State and Alabama. “SportSnax is all about the fan experience, and we have to make sure it works perfectly when we rollout the service,” Hill says. Both Hill and Payne see wide horizons for SportSnax. Payne is convinced the service is scalable and can handle large football stadiums as well as arenas. “I think it can work,” Payne says. “We just have to convince (prospective clients) that they won’t get 100,000 orders at one time. But I know it will work.” For more information on SportSnax, visit its website at www.sportsnax.com.

... part of the golf cart’s popularity is the fact that people don’t like to stay inside when there are so many festivals to attend and beautiful roads to take through neighborhoods and along waterways. and sells around 300 to 400 golf carts a year. His typical buyer, if there is such a thing, is in his 30s or 40s and is looking for a good deal on a cart for recreational use. They comparison shop just like car buyers, he said. A base model cart can be customized to a heart’s content. “It’s endless, really,” he said. “Custom seats, glow

lights, audio packages, any color.” One woman started out with a $2,000 cart and ended up with an $8,000 customized job. The most expensive accessories are audio packages, big rims and tires. The average price for a base unit is around $2,400 or $4,000 for a street legal cart that requires a license plate.

“Those average around $7,000 brand new,” he said. Carts that have a VIN — vehicle identiﬁcation number — and a serial number are considered street legal. Dreher believes part of the golf cart’s popularity is the fact that people don’t like to stay inside when there are so many festivals to attend and beautiful roads to take through neighborhoods and along waterways. Another reason is the cost. “With the bad economy and people losing their jobs, a golf cart is still an affordable luxury item,” he said. “You’re going to think twice about buying a camper or a pontoon boat but you can afford a nice cart. It’s why we still stay busy. It’s something affordable to go hunting, golﬁng, driving around the neighborhood. You still want to have fun.”

February 7, 2014 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

AN MBJ FOCUS:

EDUCATION & WORKFORCE TRAINING

MBA By LYNN LOFTON I CONTRIBUTOR mbj@msbusiness.com

Colleges and universities in Mississippi offer master’s of business administration programs to help residents advance in business careers and achieve personal goals. The programs at Millsaps College, the University of Mississippi, Mississippi State University and the University of Southern Mississippi are among the schools offering a range of MBA degree options. Individual counseling, employer networking events, job opportunities, presentations, and resource materials are available for students. “The Millsaps traditional MBA program is a comprehensive and advanced management degree that is suitable for individuals of all academic backgrounds,” says Melissa Meacham, director of graduate admissions for Millsaps College. “A substantial advantage of the program lies in the composition of the student body — experienced men and women from the active business world and younger students with a fresh insight join together for a meaningful educational experience. A typical class includes students with a broad range of ages and backgrounds including engineering, health care and government as well as business.” The Executive MBA program offers mid-career executives an opportunity to earn an MBA without having to put their careers on hold. By offering classes on alternating weekends for 16 months, Millsaps College and the Else School of Management make graduate business education available to professionals who have experience to build upon. “The Millsaps MBA and Executive MBA are accredited by AACSB International. AACSB Accreditation is the hallmark of excellence in business education, and has been earned by less than five percent of the world’s business programs. Millsaps is the only private school in Mississippi that has this accreditation,” Meacham said. With Millsap’s location in the state’s largest city, professionals make up the majority of their MBA programs with the Else School of Management offering a Traditional MBA and an Executive MBA. The Traditional MBA is designed to serve fulltime and part-time students. “The Execu-

» State schools offer variety of programs, including for mid-career executives tive MBA is structured for mid-to high level executives and managers who are interested in getting their careers on a faster track,” Meacham said. “The EMBA classes meet every other weekend for sixteen months.” At Ole Miss, Ashley Jones, director of MBA/MHA administration says the MBA program is highly recognized and well respected by employers. “Those interested have options that include a year on campus and an entirely online professional MBA,” she said. “Currently, our campus program has approximately 60 students and our online program continues to grow with 95 students.” In addition to the 11 academic courses within the campus MBA curriculum, she says Ole Miss challenges students through the transformative for-credit Speaker’s Edge Competition. Students entering that program are encouraged to begin in the summer term to be more in sync with the corporate hiring cycle upon graduation. Students have up to six years to complete the 36-hour online program. The professional MBA charges one flat tuition rate regardless of state or country residency. The Mississippi State University MBA is not labeled an executive MBA; however the program is available and useful to executives, according to Rebecca G. Long, Ph.D., director of graduate studies. “Our

Distance MBA enrolls practicing managers from across the world. The majority of our Distance students are people working toward promotion in their current jobs or with plans to change careers,” she said. All MBA students at the Starkville-based school work closely with an adviser to assist with setting up plans of study and making decisions on elective choices. All MBA courses are also available online. “The curricula for both versions — online and on campus — of the MBA program are identical and both are taught by the same highly qualified faculty,” Long said. At Southern Mississippi the MBA program is a 33-hour program with eight required courses across the business disciplines. The program is offered on the Hattiesburg and Gulf Coast campuses. Beth LaFleur, Ph.D., and associate dean of the college of business directs the program. “Students select three elective courses in a variety of business disciplines,” she said. “Class formats are flexible, designed to meet the needs of working professionals. Our program is fully accredited by AACSB, the gold standard of quality for business education in the world, and our part-time MBA program is ranked in the top 200 Best part-time MBA Programs in 2014 by US News and World Report.”

A full-time student can complete the program in one year, and a working professional student can finish in about two years. “The MBA is the most demanded graduate degree in the world. It continues to add value for any organization, since MBA graduates are trained in all the business disciplines at the managerial, analytical and strategic decisionmaking levels,” LaFleur said. “Most of our Southern Miss MBA students are working professionals who complete the degree on a part-time basis. “In fact, almost 80 percent of our students fit into this category. Working professionals appreciate the curriculum, the in-class experience with other working professionals and our graduate faculty members – and especially value the networks formed while a student.” The Southern Miss MBA is not an online MBA program. The courses are offered on a hybrid basis - half of the work in the classroom environment and outside work on cases, group projects, etc. “In the future, some of our MBA courses may be offered as fully online classes but that is not the case now,” LaFleur said.

14 I Mississippi Business Journal I February 7, 2014

EDUCATION & WORKFORCE TRAINING

EAST MISSISSIPPI COMMUNITY COLLEGE

Training for advanced manufacturing jobs By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com

The Center for Manufacturing Technology Excellence at East Mississippi Community College in Mayhew is the first of its kind in the state, providing advanced training for workers in the school’s district. It opened in 1997 in a partnership among state and local governments along with area business and industry. The original bricks and mortar investment was $6 million and today, Dr. Raj Shaunak, vice president of workforce and community services at EMCC, said “the value is not bricks and mortar, the value is services provided.” The innovative workforce development center has 21 full-time employees with diversified business and industry experience who train 5,600 to 6,000 people annually. Said Shaunak: “Our mission in workforce development is to enhance economic

opportunity for individuals in our district so that they can enjoy their American dream. We work in conjunction with local economic developers, business and industry. The focus is the individuals and upgrading their skill sets so they can be gainfully employed.” Shaunak measures EMCC’s success by gainful employment. “Historically, 85 percent of people who complete our training get a job or get a better job,” he said. The goals are to help individuals get a job, retain a job or get higher wages. EMCC serves Oktibbeha, Clay, Lowndes, Noxubee, Kemper and Lauderdale counties, where unemployment rates run high. “Fortunately, over the last few years many new advanced manufacturing businesses have located in our area and are ramping up operations as the economy turns the corner. There is a projected need for 1,000 skilled workers over the next two years. American Eurocopter, Severstal,

MILLSAPS COLLEGE MBA… TWO PROGRAMS THAT OFFER BALANCE AND FLEXIBILITY TO THE WORKING PROFESSIONALS. For more information about the MBA or Executive MBA program at Millsaps College, visit millsaps.edu/mba.

Courtesy of East Mississippi Community College

The Center for Manufacturing Technology Excellence’s advanced manufacturing training includes composites, avionics and sheet-metal fabrication for the aerospace sector, machining and precision assembly for the automotive industry, and industrial maintenance skills for all industries..

Stark Aerospace, Aurora Flight Sciences and PACCAR are all seeking skilled employees for high paying jobs.” Shaunak said. In May 2013, he said, the region recruited Yokohama Tire Manufacturing Mississippi to economically distressed Clay County. The company is investing $300 million in building the advanced tire manufacturing facility and will hire 500 highly skilled workers in Phase I. “YTMM announced plans for a total of 2,000 highly skilled jobs in its projected four phases. EMCC is working closely with the company representatives to develop and deliver customized training to meet their workforce needs,” Shaunak said. EMCC held an outreach program Dec. 21 to provide information about hiring at the new tire plant and 1,200 people showed up to learn about applying for 500 jobs. The new plant in West Point is expected to begin its first round of hiring in April. “For their 500 jobs we will be training 4,000 or 5000 individuals, so Yokohama will have a pool of people to choose from,” he said. EMCC’s challenge, he said, is to give job seekers the training that employers require in the modern manufacturing environment. “We build programs based on industry needs, including developing career pathways, with flexible entry points into training, for individuals to move from entry level positions to advanced technician jobs,” said Shaunak. The Basic Manufacturing Skills Certifi-

cate is based on national standards and is considered a model for entry level jobs. The center’s advanced manufacturing training includes composites, avionics and sheet-metal fabrication for the aerospace sector, machining and precision assembly for the automotive industry, and industrial maintenance skills for all industries. He said training may take as little as eight or nine weeks and up to six months depending on individual needs. “We don’t have a school year. We are open 12 months a year from 7 a.m. to 9 p.m. and many Saturdays,” Shaunak said. He said the EMCC’s strong suit is “our highly qualified staff, being responsive to industry needs and being flexible in our offerings in training and always being aware whatever we do is provide industry skills that are in demand for high wage jobs.” He said that over the last 10 years there has been almost $4.5 billion invested in the community and approximately 3,500 advanced manufacturing jobs created. He envisions at least that much growth in jobs and investment over the next four or five years. “Given the tremendous growth in the region of advance manufacturers, not least of which is Yokohama Tire, given all this, both our physical capacity and our staffing is at maximum utilization,” Shaunak said. “We are proactively seeking partnerships to expand our capabilities of providing the skilled workforce for existing and emerging businesses in the region.”

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16 I Mississippi Business Journal I February 7, 2014

EDUCATION & WORKFORCE TRAINING

Southern Miss offers nationally ranked MBA program For the MBJ In a year that featured increased enrollment and changes leading to higher degree completion, the Master’s of Business Administration (MBA) program at the University of Southern Mississippi’s College of Business can now tout being rated among the nation’s Top 200 part-time business programs in rankings for 2014 by U.S. News & World Report. Part-time business programs play a vital role for working people who can't go to school full time because of family or financial reasons. Southern Miss currently has approximately 50 students enrolled in the MBA program with most (78 percent) pursuing their degrees on a part-time basis. “This national recognition affirms the quality of the Southern Miss MBA and the hard work of our graduate faculty and MBA students,” said Dr. Beth LaFleur, associate dean of the College of Business and MBA director. “Furthermore, it confirms the continued tradition of excellence that I experienced when earning my Southern Miss MBA.” U.S.News &World Report’s part-time MBA ranking is based on five factors: Average peer assessment score (50 percent of the school’s overall score); the average GMAT score and average GRE quantitative and verbal scores of part-time MBA students entering in fall 2012 (15 percent), which took into account the admissions test scores of the entire entering class; their average undergraduate GPA (5 percent); work experience (15 percent); and the percentage of the business school’s fall 2012 MBA enrollment that is part time (15 percent). The statistical data were collected in fall 2012 and early 2013. In addition to the program’s ranking, administrators recently focused on eliminating barriers to lead more students to degree completion. The most beneficial change involves scaling back the prerequisites for enrollment in the MBA program – especially for students who do not have an undergraduate degree in a business field. The new prerequisites for the program include a three-hour course (undergraduate or graduate) in each of three fields: Statistics, accounting and finance. “Our goal is to eliminate barriers to the MBA program. This extends our reach in the Gulf South region the University serves and provides more access to individuals interested in the MBA degree program,” said LaFleur. “As the College of Business eliminates barriers to enrollment, the program will grow in size and diversity.” Additional prerequisite changes include the following: Applicants have a choice of two admission tests and can now take either the GMAT or the GRE exam. Applicants can apply for a waiver of out-of-state tuition fees, if they live in the immediate region (areas of Louisiana, Alabama and Florida). The MBA program is available on both campus locations of the University – Hattiesburg and Gulf Park in Long Beach, Miss. LaFleur points out that some are completing the degree on a part-time basis while they work full-time. Others are completing the degree as full-time students over the course of a year. These students are located in the Hattiesburg area and also across the Gulf South region. Additionally, students come from many different fields and undergraduate backgrounds. In addition to the traditional business fields – accounting, finance, management, marketing – many students come from other disciplines such as science, technology, engineering and medicine. “The College of Business is an educational leader in the Gulf South region for providing innovative approaches that address business needs,” said Dr. Faye Gilbert, dean of the College of Business at Southern Miss. “The new initiatives assist us and our constituents in acquiring business outcomes that will make a difference in individual skills and in the development of our region.”

Rendering of the new business school at Southern Miss — Scianna Hall — being built in Hattiesburg

rollment in the MBA program at Southern Miss,” said associate dean and MBA Program director Dr. Beth LaFleur. The first class of students began in the spring 2014 semester. These who would benefit from fundamen- students hail from various discitals in accounting, finance, manage- plines, and many from non-business disciplines that include the sciences, ment and marketing.” The certificate program is de- healthcare and engineering. Other students in the program are using

USM College of Business begins new graduate certificate program For the MBJ In an effort to better equip students for professional success, the University of Southern Mississippi’s College of Business is offering a new graduate certificate program in the foundations of business. The certificate program is available to students from all academic disciplines seeking business education on the graduate level. Four online courses are required to complete the certificate requirements: » BA 600 Management Foundations » BA 611 Accounting Foundations » BA 650 Marketing Foundations » BA 670 Finance Foundations Dr. Faye Gilbert, dean of the Southern Miss College of Business, noted that colleagues in the health sciences — nursing in particular — sparked the idea for a graduate certificate program. “They asked us to consider a certificate in business foundations to provide options for medical professionals to acquire the business basics needed to manage the organization,” said Gilbert. “As we looked further, we found professionals in many fields who do not necessarily need the entire MBA (Master’s of Business Administration) curriculum but

» The certificate program is designed specifically for students who have earned an undergraduate degree and want business education on the graduate level; have earned a graduate degree but need to understand the basics of business; are enrolled in a graduate program in a non-business field and want to enhance their degree with business courses ... signed specifically for students who have earned an undergraduate degree and want business education on the graduate level; have earned a graduate degree but need to understand the basics of business; are enrolled in a graduate program in a non-business field and want to enhance their degree with business courses and are interested in the MBA program and need to meet prerequisite requirements. “The certificate program can serve as a stand-alone graduate product for individuals with degrees in a non-business field who need graduate education in business. It can also be a stepping stone to en-

the foundations courses to fill electives needed in other master’s degree programs on campus. Although students have a variety of motivators for enrolling in the course, students who complete the program will receive the foundational knowledge of business which, in turn, will help their careers. Those wishing to apply for the graduate certificate program must submit proof of an undergraduate degree from an accredited institution of higher learning with an earned grade point average of 2.75 or higher.

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18 I Mississippi Business Journal I February 7 2014

EDUCATION & WORKFORCE TRAINING

MISSISSIPPI STATE UNIVERSITY

Rather to discuss world leadership STARKVILLE â&#x20AC;&#x201D; Dan Rather, one of the major names in U.S. television news history, will speak Feb. 18 at Mississippi State. The CBS Evening News anchor from 1981-2005 will be the special guest of the universityâ&#x20AC;&#x2122;s Student Association for a 7 p.m. program in the Colvard Student Unionâ&#x20AC;&#x2122;s Foster Ballroom. His presentation is another in the SAâ&#x20AC;&#x2122;s Global Lecture Series. â&#x20AC;&#x153;Leadership Principles from the Worldâ&#x20AC;&#x2122;s Most Powerful Leadersâ&#x20AC;? will be the title of his remarks. After speaking for 45 minutes, the Texas native will take questions from the audience. While Ratherâ&#x20AC;&#x2122;s address is free to all, an admission ticket â&#x20AC;&#x201D; secured in advance â&#x20AC;&#x201D; is required to attend. The one-per-person

ated Press. He then worked for several homestate television stations and the Houston Chronicle, among other organizations. He joined CBS in the early 1960s and, during a career spanning more than 60 years, covRather ered the Vietnam, Iraq and Afghanistan wars, as well as the Kennedy assassination, Watergate scandal and 9/11 terrorists attacks. For more, visit www.danrather.com. For more details about the ticket distribution and Ratherâ&#x20AC;&#x2122;s presentation, email bnt65@msstate.edu or aec322@msstate.edu.

tickets may be picked up in Suite 314 of the union. At the programâ&#x20AC;&#x2122;s conclusion, he will sign copies of â&#x20AC;&#x153;Rather Outspoken: My Life with the News,â&#x20AC;? his 2012 memoir. Also an award-winning correspondent for CBSâ&#x20AC;&#x2122; long-running 60 Minutes news magazine, Rather now is managing editor and anchor of Dan Rather Reports, a news magazine on cable channel AXS TV. After graduating from Houston public schools, Rather enrolled at Sam Houston State University in Huntsville, where he would become editor of the school newspaper and, in 1953, receive a journalism degree. His professional career began as a Huntsville-based reporter for the Associ-

Listening sessions scheduled as board looks for new ASU president LORMAN â&#x20AC;&#x201D; Members of the Board Search Committee appointed by College Board president Aubrey Patterson to lead the search for the next president of Alcorn State University will hear from constituency groups in Campus Listening Sessions Feb. 19. The discussions will center on the qualities and qualifications stakeholders believe the next institu-

tional executive officer should possess. The Campus Listening Sessions will be held in the Clinton Bristow Jr. Dining Hall on the Alcorn State University campus in Lorman. While all sessions are open to the public, each session focuses on the needs of a specific constituency group. Chaired by trustee C.D. Smith, the Board Search

Committee includes trustees Ed Blakeslee, Bob Owens and Robin Robinson. Former Alcorn State University president M. Christopher Brown II resigned last December amid an investigation into university purchasing practices. In a resignation letter, he said he wanted to resign because â&#x20AC;&#x153;the emergent management focus on internal operations confirms that now is an ideal time to transition.â&#x20AC;? â&#x20AC;&#x201D; from staff and MBJ wire services

DSU celebrates its largest ever gift to the university Delta State University celebrated its largest private donation in the institutionâ&#x20AC;&#x2122;s history with a gift presentation at the Robert E. Smith School of Nursing earlier this week. The gift was presented on behalf of the Robert E. Smith Estate, to students, faculty, staff, alumni, patrons, media and friends who were invited to attend. Remarks were given by president William N. LaForge, executive director of the Foundation Keith Fulcher, dean of the School of Nursing Dr. Lizabeth Carlson, provost and vice president for academic affairs Dr. Charles McAdams, president emeritus Dr. Kent Wyatt, president of the Foundation board Anne Wynn Weissinger, Robert E. Smith scholarship recipient Ruth Ann Lopez Luciano and others. Smithâ&#x20AC;&#x2122;s cumulative support, through gifts during his lifetime as well as through his estate, bestows him the distinction of being the largest individual donor in the history of Delta State. The celebration was to honor Smithâ&#x20AC;&#x2122;s goal of transforming healthcare in the Mississippi Delta. For more information on attending the presentation, giving to Delta State or the School of Nursing, please visit www.deltastate.edu or call 662-846-4704.

â&#x20AC;&#x201D; from staff and MBJ wire services

COMMERCIAL PROPERTY FOR SALE

Lee Middle School was built in 1953. This 105,000 sq.ft. property is conveniently located less than a mile from the Highway 82 bypass on Military Road in Columbus, Mississippi. This is a two story multi building complex that sits on a 14.4 acre lot and includes a 50 ft. x 75 ft. facility previously used as a bus shop. Price: Highest Bidder Listing Type: For Sale Property Type: Commercial Lot Size: 14.4 AC Year Built: 1953 Additional classrooms added in 1996 with elevator.

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Property Address: 1815 Military Road Columbus, MS 39701

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SALES TAX December 2013 sales tax receipts/year to date, July 1 MISSISSIPPI STATE TAX COMMISSION Here are cities’ earnings through sales tax collections. Sales tax has a three-month cycle. Month 1 — Tax is collected by the retailer. Month 2 — Tax is reported/paid to the Tax Commission by the retailer. Month 3 — Sales tax diversion is paid by the Tax Commission to the cities. This report is based on the month the tax is collected at the Tax Commission (Month 2). December December Year to date YTD CITY 2013 2012 2013 2012 ABBEVILLE $3,313.09 $4,613.81 $20,810.52 $28,338.57 ABERDEEN 66,404.60 59,450.79 388,837.22 402,389.79 ACKERMAN 23,893.99 22,302.34 137,014.47 138,830.25 ALCORN STATE U 802.61 953.68 4,014.63 4,875.13 ALGOMA 1,866.83 1,785.01 12,951.42 11,716.68 ALLIGATOR 725.87 591.95 4,441.03 4,164.25 AMORY 156,709.28 152,639.27 908,434.30 910,584.66 ANGUILLA 2,207.13 2,848.68 15,182.74 18,704.97 ARCOLA 1,417.09 1,464.42 9,107.72 9,659.74 ARTESIA 733.57 814.68 5,494.62 5,548.98 ASHLAND 13,043.21 11,595.52 78,929.46 70,870.37 BALDWYN 42,878.08 43,139.11 262,739.55 271,802.83 BASSFIELD 9,971.75 13,351.48 68,298.96 75,169.64 BATESVILLE 327,878.76 323,609.94 1,967,063.95 1,906,963.11 BAY SPRINGS 52,989.06 46,627.77 311,479.02 302,472.75 BAY ST LOUIS 108,663.37 93,113.16 644,804.01 574,736.87 BEAUMONT 5,769.12 5,862.64 35,704.66 36,693.94 BEAUREGARD 216.02 249.07 1,368.28 1,329.25 BELMONT 24,242.67 21,590.49 146,562.36 136,383.00 BELZONI 40,160.73 40,271.16 252,561.26 262,648.45 BENOIT 6,197.69 7,752.96 38,302.71 39,166.16 BENTONIA 21,779.70 20,909.00 181,140.24 96,291.96 BEULAH 284.93 325.13 2,331.99 2,302.35 BIG CREEK 368.61 332.39 2,024.00 2,270.52 BILOXI 859,273.22 764,075.69 5,636,033.81 5,357,348.34 BLUE MOUNTAIN 8,451.22 8,479.32 57,265.54 54,927.53 BLUE SPRINGS 3,132.99 2,565.62 18,760.47 15,719.35 BOLTON 8,210.89 9,089.02 69,936.24 63,452.85 BOONEVILLE 153,380.28 147,040.05 889,682.64 865,388.49 BOYLE 10,398.21 10,500.32 106,633.69 93,265.30 BRANDON 386,837.89 397,977.20 2,465,687.26 2,542,035.28 BRAXTON 1,347.93 1,382.68 7,796.15 6,783.86 BROOKHAVEN 440,324.66 428,398.57 2,730,559.29 2,535,833.93 BROOKSVILLE 11,230.66 8,950.40 58,069.77 52,326.88 BRUCE 42,947.29 39,609.97 248,599.60 239,783.77 BUDE 12,208.44 10,658.12 74,356.59 61,016.01 BURNSVILLE 13,564.22 12,092.34 72,432.97 71,170.79 BYHALIA 59,823.59 50,536.46 372,484.10 350,918.23 BYRAM 164,976.58 137,589.07 976,027.69 917,493.96 CALEDONIA 12,819.05 11,069.63 72,837.10 67,479.63 CALHOUN CITY 25,984.56 23,915.52 149,752.10 143,583.66 CANTON 190,066.30 190,976.68 1,227,747.25 1,221,998.23 CARROLLTON 5,967.67 5,837.17 35,965.12 34,700.59 CARTHAGE 130,276.83 129,427.41 776,910.92 769,333.86 CARY 1,125.20 3,085.73 9,575.60 CENTREVILLE 19,585.54 19,773.76 112,102.87 107,862.65 CHARLESTON 28,314.53 28,538.53 167,523.28 172,706.18 CHUNKY 560.83 515.19 4,926.60 3,293.12 CLARKSDALE 233,767.86 219,387.56 1,325,584.14 1,380,488.95 CLEVELAND 272,696.29 283,536.78 1,652,298.89 1,685,520.84 CLINTON 370,608.62 332,444.96 2,156,733.81 2,188,130.89 COAHOMA 508.81 439.38 3,194.79 2,472.77 COAHOMA COLLEGE 18.23 1,816.93 1,283.90 COFFEEVILLE 9,765.23 9,636.96 56,897.83 63,659.50 COLDWATER 17,511.80 17,807.95 102,597.58 101,932.76 COLLINS 114,377.83 102,840.46 668,657.05 652,940.85 COLUMBIA 286,420.17 273,890.43 1,689,737.08 1,617,843.53 COLUMBUS 722,096.26 694,431.48 4,211,037.84 4,190,273.72 COMO 16,487.13 18,481.79 87,696.75 89,526.56 CORINTH 486,100.86 455,341.20 2,782,265.87 2,662,456.63 COURTLAND 1,172.16 1,174.85 7,130.73 8,227.03 CRAWFORD 1,283.96 748.15 9,420.22 7,651.38 CRENSHAW 4,393.72 4,278.10 26,702.15 29,450.22 CROSBY 847.84 902.46 11,676.19 4,407.98 CROWDER 1,603.34 1,935.50 9,296.79 10,772.46 CRUGER 509.13 471.64 3,141.32 3,563.80 CRYSTAL SPRINGS 62,452.11 51,533.98 369,819.92 311,497.01 D'IBERVILLE 511,020.66 490,789.67 2,944,006.30 2,860,108.06 D'LO 2,874.91 2,808.14 19,180.80 18,475.95 DECATUR 12,863.82 10,259.95 76,559.38 70,493.31 DEKALB 20,671.32 20,172.31 122,224.38 117,860.04 DERMA 4,671.36 5,119.96 32,971.75 29,970.00 DIAMONDHEAD 37,361.63 36,596.63 222,141.86 235,304.05 DODDSVILLE 574.92 926.30 3,313.43 3,618.74 DREW 9,524.80 8,786.24 58,554.47 59,134.68 DUCK HILL 4,449.43 3,592.48 25,449.40 22,662.92 DUMAS 1,097.08 775.40 6,505.10 5,913.21 DUNCAN 285.60 785.46 5,014.26 5,689.10 DURANT 25,840.41 22,130.41 147,099.78 144,592.57 EAST MS COLLEGE 39.56 42.92 1,798.37 1,668.71 ECRU 11,331.41 10,946.54 73,078.29 64,391.71 EDEN 65.80 52.73 390.08 300.66 EDWARDS 6,748.70 5,815.99 46,206.27 35,186.02 ELLISVILLE 90,809.48 86,106.77 512,500.29 517,313.70 ENTERPRISE 5,184.91 5,272.54 30,598.08 30,201.12 ETHEL 1,066.62 1,149.23 6,455.59 6,736.81 EUPORA 35,075.16 34,530.55 210,411.56 210,846.59 FALCON 116.49 24.42 681.47 323.79 FARMINGTON 3,306.73 5,795.37 24,215.70 26,912.29 FAULKNER 3,715.66 3,214.28 42,571.81 19,794.79 FAYETTE 17,521.63 17,131.51 104,669.12 97,187.36 FLORA 24,800.91 42,477.90 153,260.78 172,802.79 FLORENCE 61,231.83 54,272.75 387,494.78 353,128.15 FLOWOOD 963,509.39 860,132.08 5,267,523.80 4,952,770.76 FOREST 181,635.51 169,584.86 1,090,312.85 1,021,901.06 FRENCH CAMP 1,043.00 450.29 6,046.87 5,984.25 FRIARS POINT 2,278.75 2,255.96 13,941.08 14,652.09

February 7, 2014 FULTON GATTMAN GAUTIER GEORGETOWN GLEN GLENDORA GLOSTER GOLDEN GOODMAN GREENVILLE GREENWOOD GRENADA GULFPORT GUNNISON GUNTOWN HATLEY HATTIESBURG HAZLEHURST HEIDELBERG HERNANDO HICKORY HICKORY FLAT HINDS COMMUNITY HOLLANDALE HOLLY SPRINGS HORN LAKE HOULKA HOUSTON INDIANOLA INVERNESS ISOLA ITTA BENA IUKA JACKSON JONESTOWN JUMPERTOWN KILMICHAEL KOSCIUSKO KOSSUTH LAKE LAMBERT LAUREL LEAKESVILLE LEARNED LELAND LENA LEXINGTON LIBERTY LONG BEACH LOUIN LOUISE LOUISVILLE LUCEDALE LULA LUMBERTON LYON MABEN MACON MADISON MAGEE MAGNOLIA MANTACHIE MANTEE MARIETTA MARION MARKS MATHISTON MAYERSVILLE MCCOMB MCCOOL MCLAIN MEADVILLE MENDENHALL MERIDIAN MERIGOLD METCALFE MISS. GULF COAST CC MISS. STATE UNIV. MISS. VALLEY STATE MIZE MONTICELLO MONTROSE MOORHEAD MORGAN CITY MORTON MOSS POINT MOUND BAYOU MT OLIVE MYRTLE NATCHEZ NETTLETON NEW ALBANY NEW AUGUSTA NEW HEBRON NEWTON NO. CARROLLTON NOXAPATER OAKLAND OCEAN SPRINGS OKOLONA OLIVE BRANCH OSYKA OXFORD PACE PACHUTA PADEN

122,201.49 122.37 170,736.33 3,295.24 1,570.84 393.63 12,242.45 5,575.99 4,283.39 509,976.42 361,973.69 342,276.37 1,608,029.76 777.81 15,011.95 374.60 1,839,068.17 113,725.76 30,346.15 244,951.23 4,601.74 5,382.43 525.07 14,977.24 100,970.96 303,987.62 7,113.79 84,495.59 155,744.99 4,873.58 3,047.47 12,146.31 65,517.10 2,583,787.92 3,902.47 594.46 4,170.96 177,046.40 3,291.71 5,941.31 1,472.41 807,088.03 27,217.47 166.83 38,834.89 1,584.23 35,813.09 19,267.18 114,078.93 2,346.13 1,251.89 150,185.16 171,702.97 3,169.92 14,857.89 4,852.06 6,361.14 50,242.93 522,007.92 177,238.17 29,282.29 15,279.22 2,724.41 5,292.82 17,273.65 19,353.07 16,200.11 793.24 464,546.14 1,302.50 5,741.67 11,927.47 51,795.25 1,245,500.33 7,033.41 1,126.76 202.88 26,511.58 2,861.47 12,314.21 38,382.46 516.83 7,870.44 612.10 41,616.94 138,852.98 3,255.36 8,460.90 4,219.95 493,140.74 23,030.65 236,496.13 14,540.17 7,375.46 84,606.72 2,856.75 8,349.62 6,614.73 391,845.44 27,158.45 658,163.70 4,613.88 650,208.52 475.38 1,600.31 136.38

120,513.50 120.25 176,099.40 3,568.41 1,687.77 331.30 11,086.51 5,059.53 3,484.20 519,298.50 353,561.08 333,845.81 1,587,988.73 477.99 15,073.45 517.37 1,751,578.00 102,850.67 35,044.80 241,219.95 3,945.52 5,923.56 697.27 13,503.52 100,782.78 303,234.83 8,133.20 84,195.86 150,115.54 4,919.54 2,001.52 11,290.05 62,492.03 2,569,253.13 3,607.19 607.16 5,993.92 171,951.47 3,684.30 6,399.41 3,173.03 737,873.72 22,777.17 383.25 41,171.82 1,766.78 34,713.20 16,680.79 106,037.55 2,273.45 1,254.95 144,996.74 163,386.60 3,345.15 13,795.55 6,409.75 5,921.64 50,467.57 492,892.63 162,213.11 36,012.64 15,335.23 2,387.95 4,725.82 15,147.68 18,085.86 15,044.76 557.78 428,953.07 598.15 5,916.52 10,256.96 45,587.45 1,178,414.66 6,961.41 1,119.24 418.47 28,632.70 939.80 11,376.64 37,837.47 167.95 7,046.56 612.14 39,292.66 125,087.29 4,250.70 7,759.60 3,797.86 441,026.28 23,110.64 229,316.02 13,794.75 7,384.12 85,980.27 3,387.19 9,159.57 5,594.16 322,383.16 22,459.17 594,308.40 5,216.31 592,923.64 526.34 1,787.07 163.73

717,282.68 761.78 1,096,695.16 21,168.24 11,869.67 2,587.03 72,505.85 26,727.85 22,993.83 3,011,722.96 2,147,757.63 2,021,344.77 9,713,013.80 4,754.74 93,273.09 2,593.03 10,592,506.76 619,595.32 185,839.20 1,457,935.91 24,301.73 31,835.89 4,771.90 85,744.00 602,547.64 1,925,535.28 48,316.41 483,403.30 958,573.75 29,900.89 15,144.26 70,487.38 394,113.21 15,851,608.67 23,293.77 3,789.20 33,288.12 987,896.95 21,403.95 39,959.09 21,290.67 4,824,018.44 161,071.67 2,479.99 273,527.74 10,169.64 232,665.73 114,872.79 679,581.75 14,558.41 5,897.34 894,569.98 983,535.37 20,037.27 86,764.69 29,484.13 35,813.66 292,786.11 3,086,788.90 989,022.65 195,939.11 99,409.02 14,808.19 28,484.19 105,357.45 118,369.25 92,245.58 3,835.54 2,684,341.36 14,894.17 35,494.19 62,490.87 337,711.36 7,412,172.85 41,651.10 6,799.08 3,084.31 143,524.59 7,029.89 92,258.00 228,249.59 3,270.36 50,552.23 3,717.14 245,634.12 869,859.01 22,510.15 46,736.51 26,838.38 2,720,508.65 152,247.34 1,412,810.73 89,774.49 45,888.12 505,477.55 19,519.02 51,293.81 34,563.50 2,263,596.22 149,103.62 3,933,974.86 30,638.08 3,712,008.31 3,258.74 10,817.75 1,452.68

701,799.16 717.74 1,099,111.65 21,231.18 9,996.10 2,062.85 66,657.34 26,436.13 21,388.77 3,051,695.03 2,123,259.48 1,957,173.64 9,450,092.09 4,307.33 90,321.61 3,596.26 10,137,257.94 619,932.21 207,956.67 1,389,013.90 23,596.62 35,497.52 4,695.49 85,190.68 587,873.50 1,884,841.80 48,468.61 500,720.31 907,613.62 31,804.54 11,191.12 70,955.76 402,837.61 15,357,530.15 22,465.52 5,234.06 34,796.27 980,564.77 22,189.78 40,791.79 19,246.93 4,443,336.75 137,871.95 2,752.48 271,634.70 9,428.76 220,391.44 112,488.88 661,709.56 13,890.93 6,196.55 853,615.69 939,143.70 19,692.48 86,996.95 32,915.15 37,933.20 299,375.75 2,839,430.19 968,182.44 206,075.48 99,010.26 16,195.40 28,252.22 95,906.38 117,974.12 92,254.43 3,235.38 2,563,272.39 3,050.57 34,718.89 60,695.55 292,176.82 7,019,312.81 41,610.15 6,625.36 2,972.23 158,380.48 5,134.13 62,872.00 227,049.62 3,016.42 56,341.95 3,636.36 228,986.99 792,308.42 29,310.16 49,001.76 22,048.87 2,605,400.30 140,371.43 1,378,561.12 93,152.55 43,195.58 502,058.04 17,719.67 54,932.74 34,790.88 2,186,266.57 144,181.61 3,666,378.64 33,841.73 3,438,382.22 3,385.86 10,920.82 928.72

PASCAGOULA PASS CHRISTIAN PAULDING PEARL PELAHATCHIE PETAL PHILADELPHIA PICAYUNE PICKENS PITTSBORO PLANTERSVILLE POLKVILLE PONTOTOC POPE POPLARVILLE PORT GIBSON POTTS CAMP PRENTISS PUCKETT PURVIS QUITMAN RALEIGH RAYMOND RENOVA RICHLAND RICHTON RIDGELAND RIENZI RIPLEY ROLLING FORK ROSEDALE ROXIE RULEVILLE SALLIS SALTILLO SANDERSVILLE SARDIS SATARTIA SCHLATER SCOOBA SEBASTAPOL SEMINARY SENATOBIA SHANNON SHAW SHELBY SHERMAN SHUBUTA SHUQUALAK SIDON SILVER CITY SILVER CREEK SLATE SPRINGS SLEDGE SMITHVILLE SNOWLAKESHORES SOSO SOUTHAVEN SOUTHWEST MS CC STARKVILLE STATE LINE STONEWALL STURGIS SUMMIT SUMNER SUMRALL SUNFLOWER SYLVARENA TAYLOR TAYLORSVILLE TCHULA TERRY THAXTON THE UNIV. OF MS TISHOMINGO TOCCOPOLA TREMONT TUNICA TUPELO TUTWILER TYLERTOWN UNION UTICA VAIDEN VARDAMAN VERONA VICKSBURG WALLS WALNUT WALNUT GROVE WALTHALL WATER VALLEY WAVELAND WAYNESBORO WEBB WEIR WESSON WEST WEST POINT WIGGINS WINONA WINSTONVILLE WOODLAND WOODVILLE YAZOO CITY TOTAL

447,038.11 100,603.39 155.00 851,117.00 29,997.19 197,222.54 342,754.77 336,555.75 7,891.56 357.80 3,349.47 106.99 195,533.54 2,150.30 55,149.70 19,074.86 6,633.85 35,136.06 6,932.54 64,522.37 48,556.01 15,615.39 15,476.11 1,887.29 396,990.42 27,972.49 1,027,396.51 3,866.00 108,873.37 32,795.29 8,985.55 1,395.15 18,678.02 2,040.24 50,872.34 53,145.25 23,815.80 412.93 1,016.18 6,481.97 14,678.35 12,600.50 178,192.24 11,719.60 6,415.41 9,358.68 10,111.14 3,707.34 1,945.45 834.01 355.02 2,611.96 406.72 2,059.51 5,626.79 396.74 12,681.10 1,097,910.91 43.17 498,011.57 11,016.09 6,644.65 1,905.51 28,600.51 2,263.69 37,412.79 2,009.69 484.19 1,701.32 25,200.77 6,661.90 20,844.24 3,193.29 35,298.25 8,164.51 581.28 1,521.32 45,029.82 1,558,987.70 3,755.47 55,192.34 29,962.01 11,748.90 9,433.00 11,469.46 18,365.97 650,397.16 4,502.27 18,472.45 8,181.67 1,689.46 37,615.29 178,774.96 183,496.09 6,647.95 2,431.56 12,769.21 1,508.41 198,017.75 147,232.51 89,339.14 220.50 6,984.17 28,688.32 131,806.69 $34,080,840.98

Mississippi Business Journal 438,959.85 89,937.85 125.31 680,747.71 25,690.95 180,953.47 318,761.83 335,225.83 7,816.37 437.34 3,455.87 314.43 180,851.61 3,935.98 49,153.24 19,591.65 7,680.97 33,919.32 8,045.05 66,276.07 42,629.59 15,776.09 16,273.88 2,268.84 389,632.61 27,601.91 946,625.98 2,610.23 100,996.01 29,485.69 11,273.20 1,417.62 17,768.82 2,168.39 56,367.31 44,973.22 23,815.24 366.67 774.16 6,040.48 15,376.45 10,494.09 151,311.23 12,849.58 6,182.85 8,604.82 11,227.19 3,511.58 1,801.54 786.50 352.98 2,776.48 340.06 1,247.74 5,169.21 128.76 20,170.16 1,022,607.72 39.41 478,587.16 7,951.28 6,170.72 2,347.07 25,859.23 2,794.46 35,500.42 2,348.63 261.96 1,454.65 23,142.36 6,817.36 21,523.15 2,879.78 24,272.00 7,346.64 577.79 1,381.07 36,380.04 1,512,318.81 3,822.63 52,235.00 30,271.29 11,681.69 9,020.88 10,889.40 19,700.22 618,710.45 2,745.07 15,633.76 6,526.99 1,708.40 36,973.98 176,651.95 169,474.02 7,236.26 2,468.77 13,398.75 1,411.75 180,083.48 135,684.42 86,525.16 171.31 5,392.56 16,542.02 148,176.46 $32,314,897.19

2,717,791.02 573,359.67 888.33 4,462,577.98 189,986.44 1,132,907.06 1,999,241.30 2,079,822.82 45,354.62 2,538.87 22,917.13 2,384.61 1,132,633.23 14,128.93 332,637.10 117,419.51 44,960.73 215,079.97 52,732.48 367,318.36 278,151.24 102,308.11 98,391.37 15,501.23 2,497,740.69 157,072.21 6,136,351.48 23,386.28 598,646.41 220,878.97 54,613.10 9,049.78 117,341.97 12,306.27 324,205.10 390,145.27 146,703.84 2,236.79 6,446.05 37,126.60 92,749.36 70,985.32 1,003,739.61 73,029.53 39,432.08 54,755.35 68,734.04 23,247.50 12,109.69 5,143.62 2,260.51 17,789.33 1,490.04 10,620.24 34,120.91 2,440.49 73,215.59 6,158,308.96 497.28 2,950,148.38 62,124.83 40,757.62 15,825.57 201,566.03 25,984.47 223,680.21 12,858.50 1,764.81 12,177.64 150,949.18 44,034.96 142,163.17 21,526.80 146,569.51 51,182.34 3,343.85 10,973.69 274,321.80 8,776,068.92 24,038.85 324,081.41 174,657.70 74,081.97 55,339.52 63,899.36 113,344.89 3,789,457.56 28,978.79 100,841.12 39,682.98 11,269.90 236,878.14 1,069,583.71 1,042,972.62 52,284.60 13,097.13 83,200.03 10,244.65 1,105,973.12 872,646.59 505,256.88 1,305.40 37,064.43 171,085.83 837,641.21 $201,484,525.20

2,601,351.65 543,875.72 660.79 4,072,433.86 160,259.73 1,049,896.01 1,869,889.45 2,002,030.56 47,535.03 2,780.38 21,674.96 2,620.51 1,066,456.75 23,038.87 308,043.83 116,516.60 53,350.25 206,111.32 52,631.61 345,808.02 253,709.45 96,939.47 99,099.91 16,778.37 2,309,912.41 154,356.66 5,729,394.77 15,109.29 605,021.45 207,174.57 60,718.09 8,230.97 113,252.48 13,248.27 356,975.09 360,549.34 145,617.42 2,472.55 5,729.35 41,093.66 90,292.04 65,597.03 902,091.52 89,043.96 37,552.48 56,593.71 68,323.60 20,695.51 11,079.30 4,681.49 2,261.35 17,593.61 1,664.98 9,103.64 33,372.66 759.65 85,087.97 5,969,938.50 1,349.04 2,805,958.45 51,163.42 38,557.60 26,584.06 184,656.73 26,525.73 207,139.56 13,641.54 1,955.47 11,294.61 147,099.88 42,609.12 141,187.38 17,856.38 119,890.15 49,378.36 3,393.17 10,468.46 243,674.62 8,669,441.16 22,947.98 318,585.37 173,369.45 71,744.80 61,896.66 64,986.23 118,084.73 3,669,397.71 20,856.55 99,510.08 38,253.37 11,457.99 237,749.03 1,052,995.24 1,022,734.14 48,923.63 14,223.66 86,717.97 9,324.35 1,047,611.96 828,895.73 521,451.56 1,920.35 32,594.15 146,345.91 885,773.47 $193,915,192.96

NEWSMAKERS

22 I Mississippi Business Journal I February 7, 2014

Lemus earns award

Ferguson added at firm

Rocky Lemus, a Mississippi State University forage expert, received an award for outstanding contributions to the field from the American Forage and Grassland Council during its recent national meeting. Lemus was recognized with the merit award for superior contributions to forage and grassland agriculture. He has a joint appointment with the MSU Extension Service and the Mississippi Agricultural and Forestry Experiment Station. Lemus received his master’s degree in agronomy from Iowa State University and a doctorate in crop and soil environmental sciences from Virginia Polytechnic Institute and State University. Before coming to MSU in 2007, he was an assistant professor in the Agricultural Sciences Department at Texas A&MCommerce, where he was responsible for teaching, Extension and research.

John Ferguson, P.E., has joined McNeil Rhoads as vice president of engineering, bringing with him 15 years experience in energy engineering and design-build contracting experience. Prior to joining McNeil Rhoads, Ferguson served as a senior project developer for Siemens Corporation and was responsible for the design and development of over $200 million in energy performance contracting projects. Ferguson Ferguson is a native of Mississippi and attended Mississippi State University where he obtained a B.S. in mechanical engineering. In addition to his educational background, he has achieved professional accreditation of Professional Engineer, Certified Energy Manager, Certified Lighting Audit Professional CLAP and Green Globes Professional (GGP). In his role as vice president of engineering, Ferguson will be responsible for the technical development and operational staffing of all projects undertaken by the organization as well as advising the executive team on the organizations success in key performance indicators.

Montana chosen for VP Ruth Montana has joined Keesler Federal Credit Union as assistant vice president of human resources. Montana has 20 years of experience in all aspects of human resources including employee relations, labor relations, recruitment, compensation and benefits and training. She is a member of the National Society for Human Resource Management and Gulf Coast Human ReMontana source Association.

Chaney makes list Mississippi Commissioner of Insurance Mike Chaney has been named one of the top insurance professionals of 2013 by Insurance Business America magazine. Chaney has the distinction of being the only state insurance commissioner on a list that is comprised of company presidents, CEOs and experts, a governor, state and national legislators and industry informaChaney tion executives. For the fourth consecutive year, Chaney has been named chairman of the National Association of Insurance Commissioners’ (NAIC’s) Property and Casualty Insurance (C) Committee by the leadership of the national group. In addition to the chairmanship of the committee, Chaney will also serve the NAIC as a member of the Health Insurance and Managed Care (B) Committee, the Financial Condition Committee (E), the NAIC/State Government Liaison Committee, the Senior Issues Task force and the Antifraud Task Force.

Schools hire Pannell The Natchez-Adams School District has hired Orlando Pannell as a full-time community and dropout prevention/recovery liaison. Panell has worked as a consultant with the district since 2012, charged with leading a dropout recovery program. Pannell attended Mississippi State University and earned an associate's degree of Biblical studies from Cornerstone Bible Seminary. From July 2008 to September 2012, he worked as the director of community development and entrepreneurship for the Community Development Foundation in Tupelo. Pannell then worked as president and CEO of Equations Consulting Group, a firm he started, in Tupelo.

Firm adds attorneys Copeland, Cook, Taylor, & Bush recently welcomed two attorneys to the firm’s Ridgeland office. Ian Austin is a native of Winchester, Va., but now calls Madison his home. He received his law degree magna cum laude from the Mississippi College School of Law and his B.A. summa cum laude from University of North Carolina-Asheville. Austin practices in the areas of business and taxation, construction law, natural resources and commercial litigation and transactions. Landon Kidd is originally from Pontotoc. He received his J.D. as well as his B.A. from the University of Mississippi. Kidd practices in the areas of insurance, litigation and transportation.

TEC appoints Stewart

Magazine recognizes Best

TEC has appointed Rhonda Stewart as account executive in the Sales Department at TEC of Jackson Inc. located in Monroe, La. In this role, Stewart will be responsible for maintaining consultative relationships with clients through the sales of TEC products. She brings with her over 15 years of valuable experience working in the sales industry. Stewart currently resides in Monroe with her children, Ashley, Audrey and Molly.

Holcomb, Dunbar, Watts, Best, Masters & Golmon, P.A. attorney Brad Best is the winner of the 2014 Corporate INTL magazine Global Award Civil Trial Attorney of the Year in Mississippi. Best is the managing partner of the firm in Oxford where his practice focuses on civil litigation, insurance coverage and defense and commercial litigation.

Egger

Janous

Lampley

Nix

Smith

BKD welcomes interns BKD, LLP’s Jackson office has added Justin P. Egger, Lindsey B. Janous, Matthew U. Lampley, Dexter A. Nix and Anna K. Smith as interns. Egger is a 2013 graduate of Mississippi State University where he received bachelor’s degrees in both accountancy and marketing. He is currently attending graduate school at Millsaps College and will complete his masters of accountancy in December 2014. Janous is currently attending Mississippi State University where she will receive a bachelor’s de-

gree in accounting in May 2014. Lampley is a 2013 graduate of Jackson State University where he earned a BBA in accounting. He is currently attending graduate school at Jackson State and will complete his MBA in May 2014. Nix is currently attending Jackson State University where he will receive a BBA in accounting in May 2014. Smith is currently attending Mississippi State University where she will receive a bachelor’s degree in accounting in May 2014.

Moore gets interim post

Christensen leading chamber

Greenwood Police Lt. Ray Moore is acting police chief in the Mississippi Delta city. Greenwood has been without a permanent chief since the retirement of Henry Purnell in September. Johnny Langdon Sr. has been serving as acting chief but he retired Jan. 29. The 57-year-old Moore has been with the department for 17 years.

Melia Christensen is the new executive director of the Leland Chamber of Commerce following the retirement of Bob Neill. Christensen, an Illinois native who moved to the Delta last year, holds a bachelor of arts degree from the University of Wisconsin and has worked in the fields of marketing and development for 10-plus years. Most recently, she served as executive director of the St. Petersburg (Fla.) Cham- Christensen ber of Commerce.

Burnett going to WCU Lamar County School District superintendent Ben Burnett has been hired as dean of William Carey University's School of Education. Burnett fills a space vacant at William Carey since Barry Morris stepped down last summer as permanent dean to become chair of the department of curriculum and instruction. Burnett will take over the job June 1. The 49-year-old Burnett is in his second term as superintendent in Lamar County. Burnett has been with the Lamar County school system for 26 years as a teacher and principal, in addition to superintendent.

Corps chooses Cosey-Mayfield The U. S. Army Corps of Engineers Vicksburg District has selected Lynniese Cosey-Mayfield as chief of the Contracting Office. Cosey-Mayfield has over 26 years of extensive contracting experience, which included previous positions with the Aviation Systems Command in St. Louis, Mo., the National Institutes of Health and the Food and Drug Administration, both in Washington, D.C. She came to the Vicksburg District in 2002 as a contracting team leader and later served as a Cosey-Mayfield branch chief. Cosey-Mayfield is a native of Vicksburg and earned a bachelor of arts in English and a minor in business administration from Jackson State University. She is a member of the National Contract Management Association. Cosey-Mayfield is married to Gregory Mayfield and they are the parents of two children.

Royce earns honor The Council for the Advancement and Support of Education’s District III has selected Mississippi College president Lee Royce to receive the region’s executive leadership award. MC’s leader for nearly a dozen years, Royce’s accomplishments include completion of Mississippi College’s five-year Growing the Vision Campaign in 2011; reduction of long-term debt by 89 percent; enrollment growth from 3,200 students to more than 5,000; and a 69 percent increase in the school budget. Royce is active in United Way campaigns on campus to support needs in metro Jackson and solidified partnerships with community leaders in MC’s hometown in Clinton. Royce, a Miami native, is the former president of Anderson University in South Carolina.

For announcements in Newsmakers; Contact: Wally Northway (601) 364-1016 • wally.northway@msbusiness.com

February 7, 2014

Mississippi Business Journal

»MEDICINE

»FAMILY BUSINESS

Health care as an economic driver: Turning Mississippi’s weaknesses into strengths

Business succession planning: The time is now

s a proponent of economic development, I believe that health care can be used as an economic driver and would diversify Mississippi’s economy, going a long way toward boosting jobs and quality of life in our state. As a bond lawyer at Butler Snow, I work with Mississippi cities and counties on bond issues every day. One of my chief concerns is the rating these communities receive from agencies like Fitch, Standard & Poors and Moody’s upon issuing debt. When Fitch rated Mississippi’s 2013 bond issue, it revised the state’s outlook to negative and noted the following regarding Mississippi’s manufacturing based economy: “The economy continues to diversify and some successful economic development initiatives should bolster employment in the coming years; however, the manufacturing concentration well exceeds national levels.” Although health care-related manufacturing like Baxter in Cleveland is a part of that concentration that I hope we see more of, Fitch’s outlook puts us on notice. Shortly after Gov. Phil Bryant was elected, he led a business delegation to Houston to tour the Texas Medical Center. After returning having realized the potential economic impact of the health care industry, he and the Legislature began to push health care as an economic driver by passing the Mississippi Health Care Industry Zone Act (the “Act”) during the 2012 session. This legislation is supposed to make the health care industry a major new target industry for MDA. From an economic development perspective, health care offers an enormous opportunity. It encompasses the workers and infrastructure that support a vast and sophisticated network. Health care is not just about hospitals or clinics; it also includes the factories that supply those hospitals with everything from medical equipment and high-tech machinery to the basic goods and services necessary to make those vital institutions function. Lastly, health care is not just about the delivery of care; it is about research and development and more importantly, innovation. While working in the Governor’s Office, I saw the health care as an economic driver

vision evolve from concept to reality. Last week’s announcement that North Sunflower Medical Center located in the Mississippi Delta would Tray Hairston partner with GE Healthcare and the University of Mississippi Medical Center to treat diabetes exemplifies that reality. A weakening condition like diabetes is being leveraged into a strength – treatment through innovation. Through the Mississippi Home Corporation’s (MHC) Healthcare Industry Zone Program, creative projects are now on the horizon in Madison County and Marshall County. These counties are representative of a few of the communities that have created Health Care Zone Master Plans. MHC required housing developers seeking lucrative tax credits to finance Health Care Zone Master Plans in less developed areas of Mississippi. This requirement has resulted in a public-private partnership. Inevitably, these plans, similar to those used at the Research Valley Biocorridor in Texas, are blueprints for local economic development directors to create jobs. The Act allowed for the creation of Health Care Zone Master Plans and opened up these zones to a large portion of the state. A technical amendment to the Act derived from the leadership of the Mississippi Senate and Lt. Gov. Tate Reeves, who chose to broaden the definition of the term zone in April 2012. That should be applauded. The Mississippi Medical Corridor in Jackson has also become a prime target for innovative technology based health care projects that I hope will be announced in the spring. Mississippi has a real opportunity to seize the moment and make health care an economic driver. With initiatives like those in the Mississippi Delta, the state can leverage its weaknesses, turn them into strengths and further diversify its economy. Tray Hairston is former counsel and policy advisor to Gov. Phil Bryant, advising the governor on economic development and public finance issues. He is currently employed by Butler Snow, LLP as a bond lawyer and focuses on economic development and other transactional matters.

amily-controlled businesses comprise between 80-90 percent of all business enterprises in North America (Source: J.H. Astrachan and M.C. Shanker, “Family Businesses’ Contribution to the U.S. Economy: A Closer Look,” Family Business Review, September 2003). And while it is estimated that nearly 40 percent of family businesses are passed successfully to a second generation, only a small fraction of them make it to the third generation or beyond. In fact, many business owners fail to give any meaningful consideration to what will happen if they die suddenly or otherwise become unable to continue looking after their business, or they simply procrastinate in formalizing a succession plan. In situations where there are no family members possessing the expertise and know-how to properly manage the family business after the owner’s death or incapacity, the family may find itself in a position of having to dispose of the business to a third-party for a price below its actual value. Regardless of whether you intend to pass your family business to the next generation or maximize its value through an orderly sale at the time of retirement or death, business succession planning is vitally important to ensuring a smooth transition. Fortunately, there are many options to consider when structuring a plan that is right for you and your business. The first step in setting a business succession plan is choosing a successor. This can be a difficult task when you do not have a child or other family member that has demonstrated the requisite skills and interest necessary to maintain and grow your business. In some cases where there is not a readily available heir-apparent, you may consider taking on a new minority partner or hiring a new employee whom you can groom to take the reins. If you are in business with one or more coowners, you should strongly consider a cross-purchase agreement, which requires each of the owners to purchase the interests of a deceased or incapacitated owner for a specified or determinable price or an entity-purchase agreement, which requires the company itself to purchase the outgoing member’s interest. These arrangements are often funded through

life insurance policies taken out on the lives of the participant-owners. Unless you intend to transfer your business through a bequest under your will, in which case C. Tyler Ball you should consult an estate planner, the final steps to establishing a business succession plan include choosing an appropriate method for calculating the value of your business and selecting a mechanism to fund your successor’s purchase. Some of the more popular methods for establishing the value of a business include: (1) engaging a qualified professional to conduct a business appraisal periodically or at the time of transition, (2) setting a fixed price that is agreed upon between the outgoing and incoming owners, which can be updated periodically to reflect changes in the business and (3) preparing a formula based on

» Regardless of whether you intend to pass your family business to the next generation or maximize its value through an orderly sale at the time of retirement or death, business succession planning is vitally important to ensuring a smooth transition. Fortunately, there are many options to consider when structuring a plan that is right for you and your business. objectively determinable metrics, e.g., net earnings, that is agreed upon by both parties. Finally, the successor owner’s purchase of the business is typically paid either in a lump sum funded by life insurance proceeds from a policy on the outgoing owner’s life (usually only in the case of a minority partner/shareholder as successor) or a loan secured at the time of transition, or in installments that can be paid out of the business’s profits. By taking the time to solidify a business succession plan now, business owners are able to ensure a smooth transition for their business while maximizing its value and avoiding unnecessary frustrations and potential discord among family members after they die. C. Tyler Ball is a tax attorney in the Jackson office of Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., where he specializes in Business and Estate Planning.

24 I Mississippi Business Journal I February 7 2014 AQUACULTURE

U.S. catfish producers get long awaited win » Challenges ahead in making up for market losses caused by inspection delays, Miss. catfish farmers say By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

An eight-year struggle to require foreign and domestically produced catfish to undergo the same health safety inspections has ended with the inspection requirement surviving as part of the Farm Bill extension approved by a 68-32 Senate vote Tuesday. Domestic producers expect the inspection rules — which are permanent and supposed to be in effect within 14 months — to help level what they say has been a very un-level market competition brought on by Asian producers, especially Vietnamese, undercutting U.S.-grown catfish by $1.50 to $2 a pound. But the question is whether enacting the inspection rule will come too late to save Mississippi catfish farming. Even the measure's principal architect, Mississippi's Sen. Thad Cochran, has doubts on how quickly the Food Safety and Inspection Service (FSIS) within the Department of Agriculture will move to take over inspection duties from the Food and Drug Administration.

BANK

“The USDA is already many years behind, ” Cochran said in an email after Tuesday's Senate vote. The legislation requires the USDA to issue rules within 60 days and to begin enforcement within a year after that. The 2008 Farm Bill handed catfish inspections to the USDA. In the years that followed, the USDA wrestled with how broadly to define catfish, specifically whether to include the Asian grown pangasius — a seafood product sold in the United States as catfish. The 2014 Farm Bill — which came two years after 2008's five-year extension lapsed — puts pangasius under USDA inspection, a hard-fought provision Cochran, ranking member of the Agriculture Committee, and Michigan's Sen. Debbie Stabenow, committee chair, insisted on to protect the health of U.S. seafood consumers. In the meantime, catfish production in Mississippi and elsewhere in the South dropped dramatically as significantly lower priced pangasius imports captured everlarger market share. In the years after the

Continued from Page 4

ran into cash ﬂow problems.” Those problems, the Birmingham lenders discovered, came from poorly performing residential developments in Florida. “It opened our eyes,” Chapman said. “We took that opportunity to go look at our exposure throughout. I think that helped us later when we had to decide on TARP. We had our arms around our risks,” In retrospect, that developer’s default likely saved Renasant from a lot of trouble and strife later on, the CFO added. Instead of doing a foreclosure and workout in routine fashion, Renasant asked, ‘Why?’” “If we had not asked that question, we would not have found out about Florida,” which soon became ground zero for the foreclosure crisis, Chapman said. By 2008, Renasant had battened the hatches and prepared to ride out a foreclosure storm that quickly spread nationwide from its origins in Florida and California. Too many banks had made loans to developers who sold to borrowers who had subprime loans they couldn’t repay, he noted. “In 2008 we halted. We didn’t divest but we didn’t do anymore” deals. Meanwhile, some of Renasant’s competitors “went all in” that year, increasing their exposure. At various points of 2009, the Mississippi banking sector’s problems seemed to worsen. But Renasant was thinking of returning to the offensive, Chapman recalled. “2009 was where we started looking externally again,” he said. “We were looking at new markets and starting to grow again. 2010 is when we came back and raised capital on our terms” through issuing common stock, Not being beholden to TARP helped on the capital quest, giving Renasant bargaining leverage some of its brethren that took TARP did

2008 inspection mandate stalled, Mississippi acreage devoted to catfish production declined from 113,000 to 51,000 last year and is expected to fall to 47,000 by the end of this year, according to Ben Pentecost, president of the Catfish Farmers of America and coowner of Pentecost Brothers, a 734-acre catfish farm in the Delta's Doddsville. With the acreage decline came a drop from 600 million live weight pounds to roughly 300 million last year, Pentecost said, though he added increases in production efficiency are expected to bring the poundage up to around 330 million this year. Pentecost said the six-year wait nearly exhausted the patience and resources of the 300 or so members of Catfish Farmers of America. “When this was included in the 2008 bill we were thinking if we could just hang on until 2012 until they get it implemented. That didn't happen,” Pentecost said. “We had a couple tough years in there.” The best hope, Pentecost said, is for the market leveling to help stop the slide. Additional leveling will come from a ruling last year by the U.S. Department of Commerce tying the price of imported pangasius to import prices fetched by producers in the Philippines, rather than much lower priced Bangladesh pangasius.

not have. “With some TARP banks the investor knew you were going to have to pay this off at some point. It put downward pressure on stock prices and caused capital raises too be too expensive.” As time went on, some of the smaller TARP banks found it easier to be acquired than to pay off the TARP tab, according to Chapman. “It was actually better to sell than to issue the maximum of new capital to pay off TARP.” By 2011, Renasant was among the acquirers, though the distressed Georgia banks it took over had been sold through the assistance of the FDIC. Chapman said Renasant has out-performed the banking indexes the past ﬁve years, largely through the heads-up the Birmingham foreclosure provided and the ability to raise capital that refusing TARP provided. “TARP is one factor but it was also decisions we” were able to make by not taking TARP, he noted. Today, Renasant is a $5.7 billion bank that recently acquired First M&F Corp. of Kosciusko in a $143 million stock purchase. Analyst Stern Agee said it expects Renasant’s earnings per share to gain a “strong lift” in 2014 through annual savings from the acquisition. Assessing Mississippi banks on the whole, Chapman said he thinks they performed well throughout the crisis cycle, especially publicly owned ones. “The public banks if anything have come out of this cycle stronger.” Independent community banks have also shown signs of renewed health post-crisis, he noted. But “the compliance costs for all banks has increased coming out of this cycle,” Chapman added. As do most bankers, Chapman has mixed feelings about TARP ﬁve years later. “The history books probably will not be kind,” he said of the banking sector rescue. “Whether or not it was the right move, it provided stability in a very unstable time. I’m not going to say it was right or wrong.” But any judging must be done in the context of the times, he added. “It took steps to calm things down and let rational decisions be made.”

“I think that is a plus, but it is a slow-moving process,” Pentecost said. In recent years, Cochran and congressional allies trying to salvage the South's oncepromising catfish farming industry have had little, if any, support from other agricultural sectors, according to Pentecost. For instance, members of Congress from states as varied as Massachusetts and Montana have withheld support for the domestic catfish industry, he said. He said Massachusetts seeks to protect its stake as an import point for pangasius, while Montana fears trade retaliation from Vietnam, a major importer of beef from the state. Likewise, the soybean industry, which takes in the entire Midwest, fears Vietnam may slap new tariffs on the vast amounts of U.S. soybean meal it imports, according to Penecost. Then there is the opposition from Arizona's Sen. John McCain, the influential former Republican presidential candidate. McCain has long advocated for removal of barriers to trade with Vietnam, where he was held as a prisoner of war for many years during the Vietnam conflict. On the other hand, Pentecost added, “We have a lot of support from people who feel like we should buy America.”

New chairman, CEO among changes imitated in Community Bancshares' succession plan The board of directors for Community Bancshares Inc. has activated a long-term strategic plan of succession, effective Jan. 1. The plan dictates the upward movement of senior management, which is needed to perpetuate the bank’s business model. In the first phase of this plan, Freddie J. Bagley has been elected to serve as the new chairman of the board for Community Bancshare. Thomas W. Colbert, who has now moved to the position of senior chairman, has served as the holding company’s chairman since formation in 1977, and will continue to have an active role. Bagley has been president and CEO of the holding company since 1992. Charles W. Nicholson Jr. has been promoted to president and Bagley CEO of Community Bancshares. Nicholson has served as COO of the holding company for over eight years and before that was president and CEO of Community Bank’s offices in Meridian. David M. Hughes of Biloxi has moved from CEO of Community Bank, Coast, — one of the holding company’s four banks — into the position of COO for Bancshares. With this new role, Hughes also joins the holding company’s risk management team along with Gregory A. Moore, CEO of Community Bank of Mississippi. For the second phase, the seat vacancy in the Coast bank — left void by the promotion of Hughes — has been filled by the promotion of Oliver A. Latil IV to CEO for Community Bank, Coast. Previously, Latil held the position of CEO for one of the bank’s subsidiaries, Community Bank, National Association, based in Mobile, Ala. Latil will now be responsible for the bank’s Coast footprint that spans from Gulfport, Mississippi, to Panama City, Fla. — Ted Carter, MBJ

February 7, 2014

Mississippi Business Journal

THE SPIN CYCLE

All The News … Best Stories of 2013 in the New York Times he New York Times has announced its list of most-visited stories of 2013. Call it the modern version of “All the News That’s Fit to Print!” Categories include the most popular articles and blog posts, multimedia and interactives, and videos throughout NYTimes.com, the news outlet’s mobile site and its iOS apps. The most visited of all content was the interactive “How Y’all, Youse and You Guys Talk” (December 21). Other top stories include four breaking news pieces — one of which was a map — three health stories, a narrative about poverty in New York and two celebrity op-eds. Perhaps the most compelling on the list is a news interactive by Josh Katz and Wilson Andrews that focused on our country’s varied and colorful dialects. It’s a very interesting window into today’s journalism, and what inspires our readers and impacts our audiences. Since this news app only came out on Dec. 21, that means that in a matter of 11 days it was online in 2013, it generated more visits that any other piece the entire year! That goes to show you the power of today’s press — and how today’s reader is driving the news. It took less than two weeks for a news app to beat every other story the Times published in all of 2013. That’s amazing! So let’s examine other facets of today’s journalism as experienced in one of the the largest newspapers in the land. The “How Y’all” piece was right there with “The Scientific 7-Minute Workout,” a straight health piece that was the paper’s sixth most-popular article. Other developers converted the article into an HTML or iOS app you can use on your smartphone. The Gray Lady should have capitalized on that pearl of journalism innovation! Other highlights include: 1. Most visited video on NYTimes.com “Syrian Rebels Execute 7 Soldiers” (Sept. 5) 2. Most Visited Article on the iPad App: “The 46 Places To Go In 2013” (Jan. 11) 3. The New York Times’ coverage of the Boston bombings, as well as Angelina Jolie‘s

and Vladimir Putin‘s Op-Eds were highly visited amongst all platforms. Here is the list of top stories of 2013 as ranked by the Times: 1. “How Y’all, Youse and You Guys Talk” 2. “Blasts at Boston Marathon Kill 3 and Injure 100” 3. “2nd Bombing Suspect Caught After Frenzied Hunt Paralyzes Boston” 4. “My Medical Choice,” by Angelina Jolie 5. “Plea for Caution From Russia,” by Vladimir Putin 6. “The Scientific 7-Minute Workout” 7. “Site of the Explosions at the Boston Marathon” 8. “Invisible Child” 9. “The Extraordinary Science of Addictive Junk Food” 10. “Cardinals Pick Bergoglio, Who Will Be Pope Francis”

Shifts In The Foundation — The Evolving News Release One of the most important tools — and longstanding foundations of solid public relations — the news release, formerly know as the press release, has evolved into a dominant multimedia powerhouse for breaking news, compelling stories and advancing trends. Today, that tool has been rebranded to harness the power of the digital domain. Birth of the Multimedia ‘Smart Release’ In an increasingly digital world, the multimedia smart release has emerged as an industry-leading vehicle to deliver important news to newsrooms across the globe in a user friendly format that gives editors, reporters, anchors and producers everything they need for delivering the news — right at their fingertips. This one-stop shop packages a modern version of the news release, key messages and high-res graphic elements that bring a story to life: photos, videos, logos and more! The smart release tool showcases a company like never before in an enriched interactive setting where the audience can interact with your brand. Tap into this trend by tuningin to our agency — Deane, Smith & Partner’s pioneering PR tool for the modern age. News releases containing photos and/or

videos and easy to find social sharing buttons, issued to the media is the best way to reach journalists, bloggers, analysts, online and offline media, social networks, customers and prospects. News releases are measured by quality of coverage, its impact on the company’s reputation and brand goals, action taken by readers and the amount of sharing across social networks. The new tactics to support your news releases and measure impact include: » Sharing social media messaging with brand fans and influencers, including a link back to your website, each tailored to the news’ target audience. Social actions taken related to your news are measured by overall shares, shares by influencers, link clicks and, most importantly, the quality of inbound traffic. » Posting and directing journalists to blog posts that directly answer the questions you know journalists will ask. This increases the likelihood of company message adoption and decrease real or perceived anxiety by journalists and consumers about your message, brand or organization. » Advertising on key industry media, highlighting the benefits of your product or brand is an excellent way to decrease the amount of time it takes a user to make a decision. Ad success is measured by desired action taken, clicks, impressions, downloads, etc. » Utilizing online media syndication services like PR Newswire, Business Wire, GlobeNewswire, dlvr.it and Outbrain, which can help increase visibility of valuable coverage and is best measured by impressions, views and quality of inbound traffic. » Creating social channel messages for colleagues, customers and partners to share across their own social channels. Use a unique URL to more easily track shares, inbound traffic and the quality of that traffic. » Implement paid and non-paid influencer programs to decrease sales consideration time. This can have an impact on an increase in discussion, message adoption, social reach, quality of inbound traffic leads and amount of time before desired action taken. These steps can dramatically increase the

impact of your PR efforts, as well as provide the valuable insights needed to revise messaging for future initiatives. Which message resonated best with your various audiences? What asset or platform provided the best ROI?

Todd Smith

Frosted Mic | Atlanta Meltdown During Major ‘Blizzard’ The Spin Cycle supposes it’s called “Hotlanta” for a reason! The southern metropolis just doesn’t dance well with a polar vortex. But the city — and its leadership — had a major traffic meltdown when a paltry three inches of snow hit the city in a recent midday snowstorm. Atlanta Mayor Kasim Reed and Georgia Gov. Nathan Deal did a serious two-step on the issue, trying to dodge the heated questions after miles of iced-over roads turned into virtual parking lots, trapping thousands of commuters, truck drivers and students in buses overnight. Reed especially mishandled the crisis — and the face of the city came across more peevish than powerful in interview after interview, mostly rejecting criticism instead of owning up to it and becoming a change agent. This storm response could pack an even stronger political wallop. For that, the capital of the Deep South and its leaders get a frosted mike to go on their disaster relief shelf. Each week, The Spin Cycle will bestow a Golden Mic Award to the person, group or company in the court of public opinion that best exemplifies the tenets of solid PR, marketing and advertising — and those who don’t. Stay tuned — and step-up to the mic! And remember … Amplify Your Brand! Todd Smith is president and chief communications officer of Deane, Smith & Partners, a fullservice branding, PR, marketing and advertising firm with offices in Jackson. The firm — based in Nashville, Tenn. — is also affiliated with Mad Genius. Contact him at todd@deanesmithpartners.com, and follow him @spinsurgeon.

» NATIONAL

U.S. Post Office mulls financial services to unbanked and underbanked The United States Postal Service may expand its financial services beyond money orders and remittances, the Credit Union Times has reported. U.S. Post Office officials think providing financial services to the underserved can help turn around the self-supported agency’s fiscal fortunes. “More than a quarter of Americans live partially or completely without access to mainstream financial services and are often forced to rely on costly services like payday loans or check cashing to cover their everyday expenses,” the USPS said on its website, introducing a white paper

released Monday by its Office of Inspector General. The USPS is financially motivated to offer more financial services, saying in the white paper that if it captured just 10 percent of the current unbanked and under-banked market, it could result in $8.9 billion in new revenue each year. Possible financial services, according to the paper, could include reloadable prepaid cards, mobile transactions and products that help the underserved take part in e-commerce. They also could include new ways of transferring money both domestically and internationally, and perhaps

even include small loans that would help customers overcome unexpected expenses, the report said. The paper was especially bullish on payment services, because they have the lowest barriers to entry for the USPS, because they are the most similar to what it already offers. Payment services also generally do not require a major capital investment, and are full of opportunities to partner with banks, the report said. One possible cornerstone product identified by the report was a Postal Service branded open-loop reloadable prepaid card.

— Ted Carter, MBJ

SALES MOVES

26 I Mississippi Business Journal I February 7, 2014 » JEFFREY GITOMER

What are you thinking? Here are a few of my thoughts!

he minute I get a thought, I capture it. For the past year or so, I've been texting myself through voice dictation. It works. It's the same way I am writing this column. Voice to text. It works. I'm about to show you, and share with you, some of those random thoughts. They are in no particular order, and as I paste them into this word document I'm reading them aloud and altering them. (That’s how I edit.) I’m reading them and expanding them on the spot so they become even more valuable and applicable to a salesperson. You.

On questions: When someone asks you a question, ask yourself, “Why are they asking this, and what does this mean in terms of this person moving toward a purchase?” There's a motive behind every question a prospect asks. And that motive is the sales driver. In reality they're thinking to themselves, if this function works, I can increase my sales. That's the motive, not the function. For example, they may ask you, “Can this function take place?” If you answer, “Yes,” then you've gone right past sale. If you answer yes and then ask, “What will this function lead to?” or “What makes this function important to you?” you will then un-

cover the real buying motive. In sales this is known as the hot button. The reality is, it's your money.

What are you thinking? » In sales, the largest chasm is the difference between knowing and doing. You already know everything; the problem is you’re not doing it. » How many of you cannot afford to buy what it is you are selling? And how does that affect your belief system? And how does that affect your passion to close the sale? » Whoever said, “Thoughts are things,” only had it partially correct. The better statement is, “Thoughts become things when plans are made, belief is strong, and action is taken.” » In a game of “sales chess” you have to be thinking at least two moves ahead or you’ll likely lose your queen. What do they really want? Your customer doesn’t want to buy a ball bearing. They want to keep their plant producing. Customers want outcome, not product. Your customer does not want a can of paint, brushes, and rollers. Your customer wants a beautiful room or a updated look to the exterior of their home. Sell OUTCOME, not product.

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Be specific Is your presentation full of generalizations or customization? If you only generalize for the enterprise and generalize about the business, you will lose. But if you customize for your customer, or their customer, they can visualize what’s in it for THEM, and they will buy.

and/or your service team, did NOT adopt it, and most likely hate it. I feel reasonably certain that of the 72 percent that did adopt it, a high percentage of them look at it as something they “had to do” rather than something that would help them.

Jeffrey Gitomer

Show me the money, not the percentage:

Don't give me a percentage. Give me a dollar amount. EXAMPLE: You say, “We lost 7 percent of our customers this year.” Really? HOW MUCH IS THAT IN DOLLARS? That will make you mad. Large companies refer to this as “churn.” I define churn as management's inability to keep customers loyal. And these same companies who call it churn only present it as a percentage. Our churn rate is 3.2 percent. Why doesn’t management have the intestinal fortitude to present that as a dollar amount? Answer: They don't want anyone to know, and it places the burden on salespeople to replace the 3.2 percent in order to get to last year's numbers. Not good.

What’s the real challenge with CRM? Customer relationship management is the most purchased, least-used, and least-adopted software in the history of computers. Why? The salesperson looks at it as management’s tool for accountability. CRM adoption rates would triple if salespeople viewed it as something that could help them make a sale. If you have CRM software for your sales and service people, and you have a 72 percent adoption rate, that means 28 percent of your sales team,

On imagination and wow! Salespeople are missing huge opportunities for engagement and opportunities to gain response from customers by not being imaginative or creative in their communications. » Show me a sales script, and I'll show you a boring message. » Show me a slide deck prepared by marketing, and I'll show you a boring message. » Show me an email prepared by a salesperson, and I'll show you a boring message. Where’s the value? Show me the value. Where's the WOW? Show me the WOW! If you show me WOW and value, I will respond, I will engage, I will connect, and I will buy. Those are my thoughts and ideas of the moment. All captured the second they occurred to me. Hope they get you thinking, taking action, and capturing yours. Jeffrey Gitomer is the author of “The Sales Bible”, “Customer Satisfaction is Worthless” “Customer Loyalty is Priceless”, “The Little Red Book of Selling”, “The Little Red Book of Sales Answers”, “The Little Black Book of Connections”, “The Little Gold Book of YES! Attitude”, “The Little Green Book of Getting Your Way”, “The Little Platinum Book of ChaChing”, “The Little Teal Book of Trust”, “The Little Book of Leadership”, and “Social BOOM!” His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at salesman@gitomer.com.

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Stennis Space Center second in survey of best federal places to work NASA’s John C. Stennis Space Center in South Mississippi is the No. 2 best place to work in the country, according to a survey of federal organizations released today by the Enterprise for Innovative Geospatial Solutions. The Partnership for Public Service surveyed more than two million federal employees to rank Stennis as a favorite among the best places to work out of 379 federal organizations. Overall, the survey shows federal employees throughout the government are decreasingly satisfied with their jobs and workplaces for the third year in a row. But Stennis’ satisfaction ratings have been on the rise, scoring 84.3, up from 84.2 last year. Only the Commerce Department’s Patent and Trademark Office scored better. Among large agencies, NASA ranked as number 1 overall with a score of 74, up from last year’s 72.8 and bucking the government-wide

downward trend. EIGS is a U.S. Small Business Administration Regional Innovative Cluster funded to support and develop geospatial businesses from Texas to Florida. EIGS was founded at Stennis and is center of geospatial research and commercialization. So, what does this mean for the area? This ranking will assist cluster companies in recruiting talent to the area. “We are honored to be named as a top place to work and live in the U.S.,” said EIGS President Craig Harvey, “We have always known Stennis and the Gulf Coast region as a great place to do business and now everyone will know.” The “Best Places to Work in the Federal Government” rankings offer the most comprehensive assessment of how federal employees view their jobs and workplaces.

February 7, 2014

Mississippi Business Journal

» MISSISSIPPI LEADERS by Martin Willoughby

Conative leadership Sledge hones instincts

t is a great joy of mine to learn from all of the interesting leaders that I get to interview for this column. It never fails that I learn something new with each interview to help me become a more effective leader. One of my passions is helping people, teams and organizations achieve peak performance, and I am always interested in ideas and resources to help achieve that objective. This week I learned a new word (or perhaps reminded — I am getting to an age where I often forget what I have learned). That word is “conative.” Most of us are familiar with the cognitive part of the brain (intelligence) and perhaps the affective part (emotions), but rarely do we talk about the conative, which drives how we act on our thoughts and feelings. Conative can also be understood as action based on our instinct. This vocabulary lesson came out of a discussion I had with my interviewee this week — Taylor Sledge. Sledge is the owner of Sledge & Company Financial Services and is one of Mississippi’s young leaders who are making a big impact. Sledge grew up in metro Jackson and graduated from the University of Mississippi. Since beginning his ﬁnancial career, he has achieved a notable list of ﬁrsts including being Rookie of the Year, New Associate of the Year and Production

Up Close With ... Taylor Sledge Title: Owner, Sledge & Company Financial Services Favorite Books: One Hundred Years of Solitude by Gabriel Garcia Marquez; Grapes Of Wrath by John Steinbeck; A Message To Garcia by Elbert Hubbard; In Cold Blood by Truman Capote; The Snowball by Warren Buffett and The Business of Life by Alice Schroeder First Job: ”My first Job was at age 16. I had just gotten my driver’s license, and I basically shoveled mud off of sidewalks and set driveways for a property development company. By the time the month of August was over, there was no question that I was focused on getting a good education for the long haul.” Proudest Moment as a Leader: ”As far as business goes, I would say my proudest moment was recently, when the Million Dollar Round Table asked me to speak for a seminar in Malaysia coming up this month. I will be on a panel, speaking for 6,000 people from all over the world. The topic involves starting a financial business as a young person.” Hobbies/Interests: “I love to hunt and fish, travel and I love music — playing it, listening to it, watching performances.”

Leader for Mississippi three years running with New York Life. Sledge and his team have grown explosively with a laser focus on understanding the customer base they are serving and how to deliver excellence consistently. Today, in a few short years they are serving hundreds of clients in over 20 states. One of the things that struck me about Sledge (and something I have seen consistently in the successful leaders I have interviewed) is a passion for learning and professional development. As he was grow-

ing his business, Sledge realized that he needed to build a team that worked well together and that leveraged everyone’s strengths. One of the tools that Sledge uses to accomplish that goal is the Kolbe A Index. The Index measures “your instinctive way of doing things and the result is called your M.O. (method of operation).” It measures the conative faculty of the mind and allows individuals to have a better understanding of their natural talents and their instinctive method of operation which leads

to greater productivity. Sledge explained, “By using the Kolbe A Index, we are able to play to the strengths of each of the team members and function better overall as Martin Willoughby an organization.” Sledge’s leadership philosophy is simple: He makes sure everyone knows their importance and trusts them with their tasks. He noted, “No one at our company has required hours. They have required tasks, required projects and reasonable deadlines. We trust each other with these, and that shows respect. Our team can enjoy all of the flexibility they want if they respect the career they have.” One of the other things I noted about Sledge is that he is highly intentional. He maintains a written plan for the vision and direction of his company and is a committed goal setter with an execution mindset. Because of his faith perspective, Sledge is also involved in a leadership role with a number of organizations including Fellowship of Christian Athletes, Mission First Inner City Ministry and the Phoenix Club, which is a group that actively raises money for the Boys and Girls Clubs. Sledge is one of Mississippi’s young leaders to keep an eye on as he continues to make an impact through his business and his civic/nonprofit leadership. Martin Willoughby is a business consultant and regular contributing columnist for the Mississippi Business Journal. He serves as Chief Operating Officer of Butler Snow Advisory Services, LLC and can be reached at martin.willoughby@ butlersnow.com.

When it comes to money, your brain may be your worst enemy

T » Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich By Jason Zweig Published by Simon & Schuster Paperbacks $15.99 softback

hinking back to our high school or college economics classes, most of us probably learned that when it comes to making economic decisions, humans can be trusted to act rationally. We carefully weigh available information, think through the probabilities, and make our decisions based strictly on cold, hard logic. The truth, as it turns out, is a bit more complicated. Our brains can be our own worst enemies, throwing up roadblocks to smart decision-making and clouding our ability to think clearly. Emotions do come into play when we’re thinking about money, and operating as if they don’t could you leave you poorer without really understanding why. Luckily, we can arm ourselves with knowledge about how our brains sometime trick us into making bad decisions, and hopefully use that information to battle back against our own

worst impulses. Jason Zweig’s book, Your Money and Your Brain, will help you do just that. One of the earliest books published on the topic of neuroeconomics (which combines the ﬁelds of neuroscience, economics, and psychology), Zweig’s book reads like a road map to your brain’s dirty tricks. To quote him, “… you will never maximize your wealth unless you can optimize your mind.” Zweig organizes his book around topics most investors are familiar with: greed, prediction, conﬁdence, risk, fear, surprise, regret and happiness. He then takes us inside the neural pathways

that are connected to these, and the different parts of the brain that are stimulated, and explains why. It’s eye opening, to say the least. When you realize, for instance, that the pain from a loss is actually much greater than the pleasure you get from a gain, you can begin to take steps to limit your own reactions. You’ll never completely rid yourself of these emotions (and he argues that would be just as damaging to your returns), but knowing why you’re thinking and feeling the way you are will give you a real advantage. Zweig provides actionable steps at the end of each chapter for how to keep your brain in check. Quoting him again, “When you win, los, or risk money, you stir up some of the most profound emotions a human being can ever feel.” Taking the steps necessary to learn how your emotions interact with and interfere with your decision-making will undoubtedly enlighten you, and may just enrich you, as well.

— LouAnn Lofton, mbj@msbusiness.com

“Zweig’s book reads like a road map to your brain’s dirty tricks.”

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