Montgomery Business Journal – October 2013 by Montgomery Area Chamber of Commerce

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Contents

Calendar Q&A with Scott A. Baker

Alabama Business Consumer Index

U.S. House Rep. Martha Roby hopes Congress will pass a farm bill

Investor Profile: Stivers Ford Lincoln Mazda

Hampstead Lake is a game-changer for the Town of Hampstead

Reporter's Notebook

Burger magnate Patrick Sidhu is having it his way

Montgomery Mayor and Montgomery County Commission Chairman work together to make Montgomery a better place

Member Profile: Montgomery Aviation

Cities focus on downtowns; developers building smaller units

Business Buzz

Members on the Move

New Members

Ribbon Cuttings & Ground Breakings

Economic Intel

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28 8

October 2013 Montgomery Business Journal

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

Randall L. George EDITORIAL

Tina McManama David Zaslawsky Lashanda Gaines Melissa Bowman DESIGN

Copperwing Design PHOTOGRAPHER

Robert Fouts ON THE COVER:

Elton N. Dean Sr. is chairman of the Montgomery County Commission and Todd Strange is the Mayor of Montgomery.

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Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July/August and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 5, Issue 8 POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

Montgomery Business Journal October 2013

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Calendar Montgomery Area Chamber of Commerce Events

OCTOBER

7 9 21 23

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door

60 MINUTE COFFEE Sponsored by Auburn Montgomery Outreach 8 AM @ Auburn Montgomery 7440 East Drive, Taylor Center, Montgomery Free event, exclusively for Chamber Members

BUSINESS AFTER HOURS Sponsored by Larry Puckett Chevrolet 5 PM @ Larry Puckett Chevrolet 2101 Cobbs Ford Road, Prattville Free event, exclusively for Chamber Members BUSINESS TAX SEMINAR Two Sessions: 3 PM & 6 PM @ Small Business Resource Center 600 South Court Street, Montgomery Free event, registration not required

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door CONVERSATIONS – ROUNDTABLES FOR PROFESSIONAL WOMEN Presenting Sponsor: Southeast Cherokee Construction, Inc. 11 AM @ Wynlakes Golf & Country Club 7900 Wynlakes Boulevard, Montgomery Registration: montgomerychamber.com/conversations

NOVEMBER

4 5 6 6

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door EGGS & ISSUES WITH CONGRESSWOMAN TERRI SEWELL 7:30 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Details and registration: montgomerychamber.com/sewell 60 MINUTE COFFEE Sponsored by Capitol Hill Rehab First 8 AM @ Capitol Hill Rehab First 520 South Hull Street, Montgomery Free event, exclusively for Chamber Members

Montgomery Business Journal October 2013

7 18 21

POINT OF LIGHT AWARD RECEPTION 5 PM @ Union Station 300 Water Street, Montgomery Free event, registration required: montgomerychamber.com/PointOfLight BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door BUSINESS AFTER HOURS Sponsored by Marquirette’s Exquisite Jewelry 5 PM @ Marquirette’s Exquisite Jewelry 7818 Vaughn Road, Montgomery Free event, exclusively for Chamber Members

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PREPARING FOR FUTURE MISSIONS Q & A WITH SCOTT A. BAKER Scott A. Baker is director of the Defense Information Systems Agency’s Core Data Center at Maxwell Air Force Base and Gunter Annex in Montgomery. He was recently interviewed by Montgomery Business Journal’s David Zaslawsky.

Fouts Commercial Photography

Montgomery Business Journal: What is the Defense Information Systems Agency (DISA)?

Scott A. Baker is director of the Defense Information Systems Agency’s Core Data Center at Maxwell Air Force Base and Gunter Annex in Montgomery.

Baker: DISA is the backbone of supporting the Department of Defense (DOD), providing information systems and services. We provide the communications and computing infrastructure for all DOD. MBJ: What are your responsibilities as director of the Core Data Center in Montgomery? Baker: As director, I lead the workforce of what is now called the Core Data Center, previously called the Defense Enterprise Computing Center (DECC). There are Core Data Centers across the United States and there will be around the world. These locations are part of a new Joint Information Environment (JIE) which aligns the IT infrastructure for the

Department of Defense; in order to be more agile; more responsive; more efficient; and more defensible. MBJ: What do you mean by more efficient? Baker: I mean more efficient in the use of resources – both financial and personnel resources. It is “do more in a more efficient manner.” MBJ: How many employees do you have at the Gunter Annex? Baker: Approximately 400 – about 250 government service and 150 contracting. MBJ: Do those contract employees represent some big-name companies? Baker: Our prime contract is with SAIC and we have many subcontractors. MBJ: What type of Department of Defense data is stored in Montgomery? Is it medical? Baker: We have a wide variety of types of data, and we have many types of applications and systems. We do hold all of the Department of Defense’s Military Health System (MHS) data from around the world, but that is only one of our many other types of data. It includes all active military, retirees and dependents of both. MBJ: What is a ballpark figure of the number of people who have medical records stored in Montgomery?

Montgomery Business Journal October 2013

Baker: About 9.7 million. MBJ: Is it possible for additional missions to come here and have the data stored here, whether it’s command and control or something else? Baker: We have missions that are for the Air Force and for other services already. We are able to continually take on more missions at this location because of a technical refresh of the infrastructure. As technology advances, it takes less space to do more computing. Our estimate in the next 18 months is that we will increase our ability to take on storage and server missions here by 67 percent. MBJ: Is that 67 percent the amount you have expanded the facility’s data storage capacity or is it something different than that? Baker: It’s a little bit different than that. It’s a complicated calculus in terms of floor space in general and different missions have different ratios of computing vs. storage. It’s not all storage. There is also the processing of the data. MBJ: Could you give some examples of new missions that you could handle? Baker: There are eight Core Data Centers for DISA. The headquarters does an analysis of each new mission and determines the best location for that mission based on factors like capacity, load balancing and capability. So we don’t know what kinds of new missions are ahead; we simply stay prepared to take on those responsibilities that come our way. MBJ: Are each of these eight Core Data Centers created equal? Are there differences in capabilities? Baker: While there are some variations in terms of capabilities among the geographically diverse data centers, they are all pretty much the same in terms of their overall capability. They might have a different emphasis depending on the customers that they currently have. Our primary emphasis to date has been Air Force and the MHS systems. Those are the two major sections. If you went to another Core Data Center, their

main emphasis may be Navy. That was really the evolution of the old traditional model of IT services when each service component and base developed their own infrastructure. With JIE we are moving to a consolidated infrastructure with visibility across the entire network. MBJ: Do you have a back-up system to protect the data you store? Baker: We do. For each application at each Core Data Center, there is another Core Data Center that is a back-up. Our medical health system – all the data – is synchronized between here and another location so if anything ever happens here, there is an entire copy at another geographic location in the United States. MBJ: Is the Montgomery facility the only Core Data Center that is fully cloud-capable right now? Baker: I would say we are one of the most progressive Core Data Centers and that we re-engineered our entire staff within this last fiscal year and increased training dollars invested toward cloud computing. CONTINUED ON PAGE 10

I want to see our Core Data Center become one of the Joint Information Environment enterprise operations centers.

October 2013 Montgomery Business Journal

CONTINUED FROM PAGE 9

MBJ: When you say that the Montgomery facility is one of the most progressive, is this site ahead of the other Core Data Centers? Baker: I believe we are ahead in our structure. We were the first ones to proactively re-engineer our entire DECC for cloud computing. MBJ: What is involved in that process? Baker: We had a group that was working on medical health systems; one that was working on Air Force; one that was working on other customers. Now we have cross-trained everybody so whatever workload comes along, we can do that workload. MBJ: Then you don’t have to worry when someone goes on vacation. Baker: True. We also have been impacted by sequestration so we did not have the full workweek for our workforce and we still had to be able to accomplish our critical mission. We were able to do that. Let me also emphasize that sequestration and the furloughs have had a huge impact on our

Montgomery Business Journal October 2013

workforce. Our workers have made a huge sacrifice after three years of pay freezes, to have their salary reduced without any ability for them to have budgeted for this with advanced planning. Many of the people live within tight budgets, have many dependents, and school loans and car loans and mortgages and rent to pay. They were counting on receiving their full paycheck and the furloughs have had a huge impact on the morale of our workforce. MBJ: How long did it take to cross-train the employees and how much money was spent on training? Baker: Zero additional dollars. We used the same amount of dollars but focused the training on cloud computing. If we’re changing someone’s role that was doing 100 percent of this job and now they’re going to be doing 80 percent of that same job and 20 percent of a new job – then they need to understand what is required and that we’re going to send them to training so they are able to do that job. We met with each

individual to explain to them, here is your plan and here’s how you will assist in the overall mission in the end. We knew we would be successful because of our great workforce. MBJ: It seems that Montgomery is positioning itself for the future and ensuring that it won’t be target of the next BRAC (Base Realignment and Closure Commission), which could happen in two years. Baker: We don’t look at it that way. Those decisions are made at the national level. What we are doing is ensuring that we make the best, most efficient use of the precious fiscal and manpower resources with which we are entrusted. It’s my responsibility to ensure that we are able to execute our current mission and prepare for future missions. But let me also say that if there are more sequestrations and furloughs in our future – next year and in future years – that will have a serious negative effect on our workforce. I am very worried about that. MBJ: What is next for the Core Data Center here in Montgomery?

Baker: We are already working on that. This was a three-year plan. The first-year plan was just to re-engineer the DECC to be ready for the next change in technologies. Next, I want to see our Core Data Center become one of the Joint Information Environment enterprise operations centers.

MBJ: When do you see hiring increasing?

MBJ: When do more bodies start coming in? If there are additional missions, will there be hiring?

Baker: We are currently working on that now.

Baker: I don’t see it as the number of people. It’s, ‘Can we do more with the same people?’ Can we become more efficient in our processes? We say we were 100 percent busy before, but we revamped these processes and now we’re only 85 percent busy and we can take on more missions. MBJ: As our workforce and missions change, we will optimize the efficiency of the workforce. For example, the cross-training of people allows us to remain static, which means as we add more work we’re becoming more and more efficient.

have the generators. It’s like having three legs. The actual feed (was scheduled) to be done by the end of August or September, but now we’re on an 18-month project, which will connect that feed to a complete tech refresh. The other was a tech refresh internally and this is a tech refresh of the external power.

Baker: I don’t know if we will. I will always endeavor to optimize the resources we have to execute our mission with efficiency. MBJ: Does Montgomery have a dualpower capability?

MBJ: What is the impact? Baker: This goes back to the guarantee. If you’re going to get a guarantee from your personnel, you want a guarantee from your power; you want a guarantee from your communications standpoint. That is really qualification for what they call tier 3/tier 4 computing capability, which is something like a Google or an Amazon would have. It means always up no matter what happens. Right now if we had a power spike and if we have a single power feed from a distinct location – if that goes down we would go to generators. If you have dual-power feed – this one could go down and we’re still up here – and we still

MBJ: It’s obvious that your Silicon Valley background has greatly influenced your running of the Core Data Center – acting and reacting more nimble as a private sector company than a government agency. Baker: I believe that’s what we need to move to. I stretch the limits. •

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October 2013 Montgomery Business Journal

Positive Territory Alabama Business Confidence Index climbs 5-plus points by David Zaslawsky

The Alabama Business Confidence Index returned to positive territory for the first time in a year. The third-quarter index was up 5.2 points from the second quarter to 52.9 points and was at the second-highest level in the last nine quarters. The index was last positive in the third quarter of 2012 and then only barely positive at 50.2. All six of the components increased from the second quarter, but the resurgence was led by a sharp increase in the national economy outlook and the state economy. Those two components plus industry hiring and capital expenditures all turned positive in the third quarter. Panelists in the Montgomery area were the second-most upbeat about the third quarter with an overall index of 56.6 points. Mobile was first at 59.0 with Birmingham third at 54.4 and Huntsville fourth with a negative index of 45.7. The following is a component-by-component breakdown of the third-quarter index, compiled by the University of Alabama’s Center for Business and Economic Research.

NATIONAL ECONOMY The component jumped 10.1 points from the second quarter – the largest increase of any component – to barely turn positive at 50.6 points. One-third of the survey respondents expect the third quarter to be better than the second quarter and another 35 percent expect a similar quarter. Nearly 30 percent anticipate a worse quarter. STATE ECONOMY The component gained 7.9 points to 55.2, which is the second-highest ranking behind industry sales. Respondents are forecasting a better quarter by a two-toone margin (42 percent vs. 20 percent) and another 35 percent expect the third quarter to remain the same as the second quarter. INDUSTRY SALES This component increased 3.9 points from the second quarter to 57.8 points. Half of the respondents are forecasting an improved quarter compared with 20 percent who are expecting a decline in sales. The most upbeat sectors are finance, insurance and real estate. Other sectors forecasting improved sales are wholesale trade, transportation, information, utilities and construction. The professional, scientific and technical services sectors expect sales will be flat. INDUSTRY PROFITS The component moved from 50.0 in the second quarter to 53.2 points in the third quarter. Nearly 40 percent expect profits to grow in the third quarter vs. about 25 percent who are forecasting profits to decline. The remainder expects profits to be the same as the previous quarter. The professional, scientific, technical, retail trade and health care sectors are pessimistic while the financial sector is the most upbeat.

Montgomery Business Journal October 2013

ABCI QUARTERLY BREAKDOWN

INDUSTRY HIRING The component gained 3.2 points from the second quarter and now sits in positive territory at 50.0, breaking a string of four consecutive negative quarters. More panelists expect an increase in hiring than a decrease – 27 percent vs. 22 percent. About 50 percent expect no change from the second quarter. The sectors most likely to hire are financial, transportation, information, utilities and construction. The manufacturing sector is expecting weak job growth and the retail and professional services sectors are forecasting steep job reductions.

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Source: University of Alabama’s Center for Business and Economic Research

CAPITAL EXPENDITURES This is one of three components that barely broke into positive territory with a gain of 3.0 points to 50.7. About 53 percent expect the third quarter to remain the same as the previous quarter while nearly 27 percent are forecasting an increase compared with 21 percent forecasting a decrease. The sectors most upbeat about spending are financial,

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insurance, real estate, transportation, information, utilities and wholesale trade. The sectors expecting a decline in capital spending are professional, scientific, technical, health care and retail trade. •

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October 2013 Montgomery Business Journal

In a state where automotive production is growing at a phenomenal rate, the real driver of Alabama’s economy is agriculture – a stunning $70 billion-plus annual impact.

AGRICULTURE IS ALABAMA’S TOP INDUSTRY by David Zaslawsky

A 2013 study conducted by Auburn University’s Department of Agricultural Economics and Rural Sociology reported that the agriculture and forestry industries are responsible for nearly 600,000 jobs, both direct and indirect, which ranks second to the manufacturing sector. No wonder John McMillan, commissioner of the Alabama Department of Agriculture and Industries, told the Cherokee County Herald that the agriculture, forestry and agribusinesses “are the backbone” of the state’s economy. U.S. Rep. Martha Roby (R-Montgomery), who sits on the House Committee on Agriculture, told a Montgomery Area Chamber of Commerce Eggs & Issues audience that she was disappointed that the House failed to pass a five-year farm bill. That is a big deal when your state’s No. 1 industry is agriculture. She said the rejected bill had “made incredible reforms to the nutrition title what we often times refer to as food stamps.” Roby said that because the nutrition title and food stamps are mandatory they will continue to grow if not reformed. She said that having the nutrition title/food stamps tied to the farm bill “gives us an opportunity to make real reforms that could last for a generation. I want to see us move towards a more sustainable fiscal path in this country.

“So when I have a choice to vote yes on good farm policy with real reforms to the nutrition title’s $30 billion or vote no for nothing – you’ve got to vote yes. That is why I supported so strongly the farm bill.” After that bill failed in the House, a new bill without the nutrition title passed on a partisan vote and now will move to conference with the Senate bill that includes food stamps. Roby said that splitting the farm into two parts weakened House Speaker John Boehner’s hand. “I hope I’m wrong,” she said. Roby was expecting the farm bill to be debated in September. She is also hopeful that Congress can pass the Student Success Act, which reforms No Child Left Behind. That bill, too, has moved to conference. “This bill puts you back in the driver’s seat – making decisions about how we educate our children right here in Alabama,” said Roby, who is in her second term representing the state’s Second District. “This bill recognizes that not every school in the country is alike.” The former Montgomery City Councilwoman criticized the impact of sequestration on the military and what she called “the disproportionate cuts to defense.” She said the current and future cuts are “hollowing out our military so that our men and women might not have everything that they need. It is absolutely my No. 1 job to make sure that our men and women in uniform have everything they need when we send them into harm’s way.” She is a member of the House Armed Services Committee.

Rep. Martha Roby

In other developments, Roby told the audience: > She opposes amnesty for illegal immigrants; opposes the comprehensive Senate immigration bill; and favors a six- or seven-bill approach to immigration reform. > A regulatory environment is stifling businesses. > Mandatory spending programs – such as Social Security, Medicare and Medicaid – need to be reformed to curb government spending. “This year, this moment – if we cut every dollar of defense and non-defense discretionary spending, we would still operate at a deficit because of the mandatory spending programs,” Roby said. “I think it’s important that we remember… this country is just descending and we’ve got to figure out how we are going to move forward on a sustainable path for your kids and mine.” > She opposes shutting down the government to try to defund the Affordable Care Act. > She supported a bill that prohibits the federal government from tying purse strings to a state’s choice of school curriculum or standards. In 10 years the government will spend more on interest for the national debt than on defense “if we continue along this path,” she said. •

Montgomery Business Journal October 2013

SOLUTIONS IN TUNE WITH YOU – IT’S HOW REGIONS KEEPS THE WHEELS OF PROGRESS TURNING FOR SMALL BUSINESS.

Rosi Johnson joined Mississippi Music, Inc., in 1973 at the request of the owners – her in-laws. She brought her financial skills to the table and learned the music business from the ground up. In 2002, she became president of the company and its four full-line music store locations. “Our business is complex,” says Rosi. “But Regions understands how all the different parts of it work. And I use their branch network and iTreasurySM online banking to move the money from all of our locations into one account.”

“Regions always works to ensure that we have exactly the right mix of products to help our business.” Through the years, Regions has helped with lending solutions to purchase more efficient inventory systems for the company and to finance new locations. A line of credit also helps smooth out cash flow fluctuations due to the seasonal nature of the business. “Regions has been there for us through all our changes and helped us overcome all our challenges,” says Rosi. To learn more about Mississippi Music, Inc., and how Regions can assist your business, visit regions.com/success.

Investor Profile

MAGIC TOUCH

Eddie Stivers is a dealer principal of Stivers Automotive Group and owns the Stivers Ford Lincoln Mazda dealership in Montgomery.

Stivers rebuilds Montgomeryâ&#x20AC;&#x2122;s Ford dealership sales and reputation by David Zaslawsky photography by Robert Fouts

When Eddie Stivers bought the Montgomery Ford dealership less than four years ago, the business was languishing. Sales at the dealership were around $27 million in 2009 and there were less than 50 employees. “This dealership was very poorly run and the dealership had a really poor reputation in the community,” Stivers said. The dealership had three owners in the past decade and dozens of general managers, he said. “That was our greatest challenge: Getting that first opportunity to do business with the Montgomery community,” Stivers said. “We’ve looked at each and every opportunity as our first and last shot.” Stivers and his 94 employees have seized every opportunity with hard work; aggressive pricing; adding a Mazda franchise in 2011; and using at least 25 percent of what would be the company’s monthly advertising budget on community and charitable projects. “I think we have worked very hard to become a good corporate partner here, and I think that has paid dividends in a community the size of Montgomery,” said Stivers, whose family also owns a Ford dealership in Des Moines, Iowa; and a Subaru dealership in Atlanta. He is a dealer principal of Stivers Automotive Group. “We have reinvested significantly in cultural and philanthropic endeavors here in Montgomery. People want to do business with businesses that they see supporting the community. We also came in and advertised a lot.” He has nearly doubled the work force and this year – his fourth full year – the company is on pace for $104 million in sales. Without disclosing numbers, Stivers said that April’s net profit was his best month ever in the retail car business. “I think that’s demonstrative of the path we’re on.” The company focuses on what Stivers called the “fundamentals” of the retail car business: consistent, hassle-free sales process; aggressive pricing; customer communication; and being an active fleet dealer.

STIVERS FORD LINCOLN MAZDA NUMBER OF EMPLOYEES

92 FULL TIME AND 2 PART TIME YEARS OF OPERATION

OPENED THE MONTGOMERY DEALERSHIP IN DECEMBER 2009 EXPANSION

ADDED MAZDA FRANCHISE IN NOVEMBER 2011 What really boosted the bottom line was adding the Mazda franchise, which had been vacant in the area for about three years. He opened the Mazda franchise in November 2011. “We raised our gross without raising our fixing costs,” Stivers said. “We were able to add the associated parts and service business. It’s had a very positive impact on the bottom line.” He said it did not require a lot of investment to prepare the empty building next door to the Mazda franchise. What it has added is sales of 20 to 25 new vehicles a month and another 7 to 10 certified pre-own sales. Stivers is investing $2.5 million in a major renovation and service addition to his dealership. The company is adding a car wash; quick lube/oil change; diesel shop; body shop; and renovation of the showroom building. “It will look totally different,” Stivers said. He would also like to expand his business either locally or regionally. He was considering building a facility on Taylor Road after his lease ended, but after lengthy discussions with Montgomery Mayor Todd Strange and Montgomery County Commission Chairman Elton N. Dean Sr., Stivers decided to stay put at his bypass location near the old Montgomery Mall. He said the company purchased the current facility. “The odds of us expanding here in Montgomery are fairly slim,” Stivers said, because the current dealers are stable. “We would love to acquire additional franchises on a regional basis. We like Montgomery. My wife is happy here. I’m happy here. We don’t plan on leaving.” •

October 2013 Montgomery Business Journal

GRAND The Town of Hampstead will unveil the largest lake in Montgomery by David Zaslawsky photography by Robert Fouts

The new 23-acre Hampstead Lake was always considered the key amenity to the Town of Hampstead in East Montgomery. The lake, which is billed as the largest in the City of Montgomery, will feature a bridge as well as walking and bicycling paths and paddle boats, kayaks and fishing. “The lake was always featured in the center,” said Harvi Sahota, who along with his wife Anna Lowder is director of design + development for Hampstead, a traditional neighborhood development.

"The lake helps link the main town center, which is much more urban and commercial, to more of a rural setting in a four-block walk.” - Harvi Sahota, director of design + development for Hampstead

It has been a five-month project to construct the lake and a $1 million-plus investment, said Lowder. Unlike other projects, the lakefront houses will front the lake instead of back up to the lake. “That way, it helps make the lake belong to everybody,” Lowder said. There was a low creek going through the area that now is the lake and Sahota pointed out that the lake is just a five-minute walk from the town center. “It (the lake) helps link the main town center, which is much more urban and commercial, to more of a rural setting in a four-block walk.” There will also be a green space by one side of the bridge that could be used for weddings and other activities. It will have an amphitheater-type feel, Lowder said. Phase II will have 42 lots next to or near the west side of the lake. There will be no commercial development in this phase. Lowder said that eventually there could be 60 lake-front homes and another 200 homes CONTINUED ON PAGE 23

Montgomery Business Journal October 2013

Now that the Town of Hampstead is five years old, the newness of the traditional neighborhood development has worn off. What is new are the adjustments officials have made to pricing points, with a slew of homes between $200,000 and $300,000 and new floor plans. Prospective homebuyers can select from one of nearly 50 floor plans. “We are really responding to market conditions and trying to give the consumer exactly what they want at the price they can afford,” said Harvi Sahota, who is director of design + development and married to Anna Lowder, who is also director of design + development. Lowder said that the Murray, Hoxton, Mercer and Frey floor plans “are within that $200,000 to $300,000 price range and they offer a contemporary way of living that is more open and connected,” Lowder said.

NEW PRICE POINTS AND POPULAR MODELS BOOST HOME SALES by David Zaslawsky

Those homes have been so popular that sales have soared 200 percent this year vs. the same period last year. Lowder said they asked consumers what they wanted and adapted.

typically get in East Montgomery,” Sahota said. “Instead of that being a negative for us, we see that as a positive from the point of view that (the land) is more useful.”

There are 27 lots remaining in phase I and through August, a total of 81 homes and lots have been sold with 67 completed and eight others under construction. The JanuaryAugust period tripled the activity of last year, according to Lowder.

Lowder pointed out that Hampstead residents can go out and enjoy the park “and you don’t have to take care of it.” •

“We are very compact with our land use and our lots are much smaller than what you

October 2013 Montgomery Business Journal

â&#x20AC;&#x153;This is our first largescale town center building that is a third party. This is definitely the model we would like to continue.â&#x20AC;? - Anna Lowder, director of design + development for Hampstead

Montgomery Business Journal October 2013

CONTINUED FROM PAGE 20

within a short distance. Within the next five years as the development moves toward Park Crossing Road, there could be additional restaurants, according to Lowder. Although there is no commercial development in phase II, there has been plenty of commercial activity at the town center and for the first time a third-party has developed its own project. Taylor Chandler, a certified public accounting and consulting firm, is constructing a two-story, 14,000-squarefoot building that will have its offices upstairs and three businesses downstairs. One of those is Waylon Joseph Salon, which is relocating from its site at Taylor and Vaughn roads. The Portfolio Management Group Inc. will also be located on the first floor. “This is our first large-scale town center building that is a third party,” Lowder said. “This is definitely the model we would like to continue.” She said drawings are available that show buildings “perfectly suited to specific lots” and Lowder likes the concept of not having to recruit tenants. “That’s the way a community like this should develop over time as long as the plan is in place and zoning is in place,” Sahota said. The newest town center building had to follow the requirements of the city’s smart code. Sahota said that Hampstead was one of the first projects in the country “to be permitted and designed under an existing smart code.” The development opened about five years ago. Behind the new Taylor Chandler building is what Lowder calls “our new economy office building.” That one-story building is 1,800 square feet. “It’s an opportunity for a smaller business or start-up to have its own space,” she said. That building was purchased by Bell Media and it took about four months for the company to move into its new office space. The building, according to Sahota, almost looks like a renovated garagewarehouse-type of building.” There are more retail/office lots available and buildings could reach from one to three stories, Sahota said. •

October 2013 Montgomery Business Journal

MORE COMPLIMENTS

Reporter’s Notebook by David Zaslawsky

Sun Belt Conference Commissioner Karl Benson said Montgomery and Cramton Bowl provided “the perfect environment” for a bowl game. “Montgomery has all the ingredients for a great bowl game and experience for our student-athletes and fans – a great venue in the renovated Cramton Bowl; a vibrant downtown with many new hotels and restaurants; and a location in the middle of the SBC footprint that will make travel very convenient for fans throughout our league,” Benson said in a statement. Mid-American Conference Commissioner Jon Steinbrecher said in a statement: “The historic Cramton Bowl will be a great venue for our student-athletes and fans. Additionally, Montgomery’s entertainment district will provide a fun and lively bowl experience for all involved.”

BIG BANG FOR THE BUCKS

MONTGOMERY LANDS BOWL GAME The news of the day was that Montgomery was selected as the site for the inaugural Camellia Bowl – a college football game between teams from the Sun Belt and MidAmerican conferences starting in December 2014 as part of a six-year agreement. That in itself is huge news, but why Montgomery was selected shows just how far the Capital City has progressed in such a very short time. Pete Derzis is the senior vice president and general manager of ESPN Regional Television, which owns the newly created Camellia Bowl as well as eight other bowl games. Without prompting he answered the question of the day: Why Montgomery? First, Derzis said he was impressed with the inaugural Raycom College Football All-Star Classic played this past January at Cramton Bowl. The game drew 18,000plus spectators, but it will no longer be played in Montgomery. Here’s why Montgomery will be host to a new college football bowl game:

Montgomery Business Journal October 2013

Derzis was impressed with the stadium and the $10 million renovation. Cramton Bowl has a capacity of 25,000. He talked about the quality of hotels. He talked about the city’s “incredibly vibrant history” and its role in the Civil Rights Movement. He talked about the city’s geography, especially for a handful of Sun Belt Conference teams – Montgomery is a drive away instead of a plane trip. Those teams include Troy University, Arkansas State, South Alabama, Georgia State, LouisianaLafayette and Louisiana-Monroe. Georgia Southern and Appalachian State will be added to the conference next year. He also is impressed with the overall leadership from the city, county, Montgomery Area Chamber of Commerce and the Chamber’s Convention & Visitor Bureau, as well as the Central Alabama Sports Commission – and how each of the entities pulled together to recruit the bowl game.

As a sponsor for the Camellia Bowl, the City of Montgomery is paying $225,000 plus in-kind services such as the use of Cramton Bowl and lending one employee to help with the day-to-day operations of the bowl game. The Camellia Bowl was planning to open a local office in October. For its investment, the city will receive two or three promotional spots during the game, said Montgomery Mayor Todd Strange. The game will be televised nationally on either ESPN or ESPN2. That type of exposure is nearly priceless. In addition, how many times will you hear about the game being played in Montgomery? Ticket prices have not been announced, but there is a target price of $25.

ACCIDENTAL REAL ESTATE HOLDER

KUDOS TO MONTGOMERY

The second-largest office building in the country â&#x20AC;&#x201C; 55 Water St. in New York â&#x20AC;&#x201C; is owned by the Retirement Systems of Alabama (RSA). It was not planned. RSA invested in bonds and eventually was able to purchase the 53-story building for 29 cents on the dollar, according to RSA CEO David Bronner. It cost $623 million and that investment has returned $892 million. Bronner said the building, which has no debt, was appraised at $1.4 billion. By the way, the largest office building in the country is the Willis Tower in Chicago. It was formerly called the Sears Tower. The 55 Water St. building is nearly 700 feet tall and has 3.5 million square feet. When the building is full there can be as many as 17,000 to 18,000 people in it. Bronner said the building is so large that it has its own police and fire personnel. It also has 80 elevators.

Here is some impressive praise: Bronner said that the City of Montgomery â&#x20AC;&#x153;has made tremendous progress.

TWO-THIRDS FUNDED

A LOT OF MONEY

When Bronner became chief executive officer of the Retirement Systems of Alabama, the stateâ&#x20AC;&#x2122;s public pension fund had $500 million and was only 25 percent funded. Now nearly four decades later, the fund has grown to $34 billion and is 67 percent funded. Bronner said the fund was 100 percent funded in 2001, but there have been some tough times on Wall Street the past decade.

When the Dow Jones Industrial Average moves 100 points in a single day it means $750 million to the Retirement Systems of Alabama. Thatâ&#x20AC;&#x2122;s not so bad when the 100-point move is positive, but it certainly is a nerve-wracking day when the move is negative and youâ&#x20AC;&#x2122;ve lost that $750 million. And the volatile Dow has had numerous triple-digit moves in both directions.

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October 2013 Montgomery Business Journal

BISCUITS POST POSITIVE HEAD COUNT The Montgomery Biscuits drew nearly 260,000 fans to Riverwalk Stadium this year, according to the Montgomery Advertiser. That’s an average of about 3,900 a game and almost 150 more per game than last year. It was the Biscuits’ best attendance total since 2010 when about 270,000 fans went to games. The Biscuits have attracted 2.8 million-plus fans to downtown since their inaugural season in 2004.

ALABAMA POWER IN TOP-10 RANKING Alabama Power Co. is ranked in the Top 10 for economic development for utility companies, according to Site Selection magazine. The company’s economic development team helped create 3,832 jobs and a $2.3 billion capital investment to its territory. Alabama Power has focused on data centers and international trade, according to the magazine.

Project manager Blair King told Site Selection: “We have an economic and community development department, but we view the company as a whole as an economic development organization.” The magazine cited such projects as Airbus, STERIS Corp. in Montgomery; Universal Forest Products and BioHorizons.

ANOTHER HYUNDAI MILESTONE At Dixie Electric Company we’re celebrating 100 years in business because of what continues to drive us. And that’s doing what’s best for our customers. Like providing you with expert, service-oriented electricians. Being on call 24/7. And giving you a 100% satisfaction guarantee.

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Montgomery Business Journal October 2013

Hyundai set an all-time August sales record with 66,101 units and with nearly 500,000 sales through the first eight months of the year. The company has already surpassed all annual totals except the past three years. The Elantra, which is 40,000 units ahead of last year’s pace, is within 12,000 of its 2011 total and less than 30,000 units from last year’s record total of 200,000-plus. The Elantra sales are up nearly 40 percent compared with 2012. Meanwhile, Sonata sales have slowed this year, but still nearly hit 140,000 units through August and will likely top 200,000 for the third straight year.

THE ART OF COMPROMISE U.S. Rep. Martha Roby (R-Montgomery) lamented the bitter partisan divide in Washington during the Montgomery Area Chamber of Commerce Eggs & Issues. “I don’t understand why over the course of history, compromise has become such a bad word.” Her statement was greeted by much applause. She pointed out that people in relationships compromise constantly. “We are not going to move this country forward if we just continue to draw lines

in the sand,” she said. “No one is asking anybody here to compromise their principles or their morals or the things that are the fiber of their being.” She said that politicians need to listen to understand each other. “I think a lot of what’s going on in Congress right now in this great divide is that we’ve been pulled away from each other so far that members on opposite sides of the aisle are afraid to listen to each other and have those conversations to figure out (where they can agree). We need to do more of that.”

“We are not going to move this country forward if we just continue to draw lines in the sand"

- U.S. Rep. Martha Roby

HYUNDAI SETS PRODUCTION RECORD Hyundai Motor Manufacturing Alabama’s plant in Montgomery set an all-time production record in August, producing 37,764 units. That broke the previous monthly mark by 390 units set earlier this year. Hyundai has produced more than 37,000 vehicles a month three times this year; produced more than 34,000 units six times; and

produced at least 32,000 units seven times. The Korean automaker has produced 277,725 vehicles through the first eight months of the year vs. 237,497 vehicles the first eight months of 2012 when Hyundai produced a record 361,348 units. The company produces the Elantra and Sonata at the Montgomery plant.

October 2013 Montgomery Business Journal

HAVING IT HIS Patrick Sidhu, president & CEO of Premier Kings Inc., owns 38 Burger Kings.

WAY

Burger King entrepreneur builds fast-food empire by David Zaslawsky

photography by Robert Fouts

Patrick Sidhu was practically born to own a chain of fast-food restaurants, or what the industry calls – quick-service restaurants. Either way, Sidhu already owns 38 Burger King restaurants and he is just getting started. He has seven in Montgomery; one in Prattville; one in Selma; eight in Birmingham; and 21 in Atlanta. That number will rise dramatically as he is working on a 40-unit deal in the Southeast; adding a restaurant in Demopolis and another in Hueytown; and looking at sites to build new restaurants on Atlanta Highway and near Taylor and Vaughn roads. If he can overcome some obstacles, and they are important issues dealing with entrances and exits, he would like to build a Burger King on West Fairview Avenue. He says there is no worry about saturation as McDonald’s has 12 units in Montgomery and Wendy’s has nine and both those rivals have two restaurants in Prattville. That prompted Sidhu to say there is “absolutely” room for additional Burger King restaurants in the region. He does not own the BK franchise in Elmore County. “We are partnering up with BK to open up some Burger King restaurants in Walmarts in Georgia,” said Sidhu, the president & CEO of Premier Kings Inc. His corporate office is located right behind the Burger King on Carmichael Road in Montgomery. “We’re looking at developing five more units in the Georgia market in the next two years. We will continue to build two to three units in the Alabama region every year, which we have been doing.”

learned the restaurant business from the bottom up. He rose through the ranks to become a shift manager, assistant manager, district manager, managing partner, director of operations and finally vice president of operations, which was his last assignment when he worked for someone else. He learned a great deal about franchising from an entrepreneur in California who owned brands such as Jack in the Box, Applebee’s, Del Taco and Seattle’s Best Coffee. “I managed his entire operation for all four brands,” Sidhu said. “It gave me a lot of experience in franchising and I did really well for him before I got into the gasoline business.” Sidhu operated about 40 gas stations in Kentucky, Ohio and Indiana, “but my heart was never in that business,” he said. “I wanted an exit strategy from there and I was looking for the right concept to get into.” That right concept turned out to be Burger King. He bought six Burger Kings in Montgomery from Southern King in 2010 and said his sales volume was around $6 million a year. Now his three restaurants on the bypass – two on South Boulevard and one off the bypass on Carmichael Road – together generate more than $6 million a year. He said the average BK brings in $1.4 million in revenue and his annual sales are around $54 million.

“We are engaged in our restaurants on a daily basis.“ - Patrick Sidhu, president & CEO of Premier Kings Inc.

His expertise in franchising and working in fast-food restaurants are two factors in his highly successful career.”We operate our stores differently,” he said. “We are engaged in our restaurants on a daily basis. I am engaged in my restaurants. My area directors that manage the stores are highly trained and qualified individuals. I follow a very strict guideline on how to manage these restaurants. We have verbatim scripts that we CONTINUED ON PAGE 30

His lofty goal is to own 100 units and with 35 to 40 employees per restaurant – that means 3,000 to 4,000 employees. He currently has about 1,200 employees and has a satellite office in Birmingham and what he calls a “fully functional office” in Atlanta with a vice president of operations. The quick-service restaurant industry has been very good to this Indian-born entrepreneur, who began working as a dishwasher as a teenager. He said that he

October 2013 Montgomery Business Journal

CONTINUED FROM PAGE 29

use for order-taking processes; we have our greetings; our food quality checks that we do are a little above and beyond the industry. We do strategic discounting, couponing.” Burger King also has its loyal following for those famous char-broiled hamburgers, but the company and the industry has greatly evolved. “It is no longer a burger-and-fry joint,” Sidhu said. “We are really innovating our menu,” he said, referring to shakes, ice cream, salads, a summer barbecue promotion for pulled-pork sandwiches and a rib sandwich; sweet potato fries and even frozen lemonade. Even the bedrock Whopper was reinvented. “If you taste our Whopper sandwich today compared to how it tasted a couple of years ago – it’s very different,” Sidhu said. “We are cutting the onions and the lettuce and the tomatoes fresh in our restaurants every day.”

Montgomery Business Journal October 2013

He talked about all the new platforms at BK, including salad stations, smoothie stations and specialty coffee. Of course, BK offers those char-broiled burgers, but now has new broilers, which are used for chicken and rib sandwiches. “There are platforms we have not tapped into yet that we are looking at down the road,” Sidhu said.

All his restaurants are being remodeled and reimaged, which is part of a BK chain-wide initiative, “but I am one of the franchisees that has engaged at a higher level than other franchisees,” he said. “Our reimaging efforts have been very strong … that’s really helping us gain market share. People recognize us as a leader and that is helping our top line sales.” •

SOUTHERN BOULEVARD INVESTMENT PAYS OFF BIG TIME by David Zaslawsky

Patrick Sidhu owns 38 Burger Kings with more than half in Atlanta and almost 25 percent in Birmingham. Yet his top-producing restaurant is not only in Montgomery, but itâ&#x20AC;&#x2122;s on South Boulevard in an area where development had been stagnant for a decade. â&#x20AC;&#x153;It does close to $3 million a year,â&#x20AC;? Sidhu said. The Burger King was built on an outparcel in front of the Capital Plaza shopping center and it was no easy feat to develop that project. He said he was â&#x20AC;&#x153;highly advisedâ&#x20AC;? not to build a Burger King there. He negotiated with a Baltimore developer, who owned the land and then had to convince Burger King Corp. that it was a suitable location although the area had not seen new development for 10 to 20 years. Burger King did not initially give its approval.

â&#x20AC;&#x153;I had to fight very hard to get that site approved by Burger King and then put it in construction. We had to build it fairly quickly because we had some incentives that were going to expire with Burger King.â&#x20AC;? Then his attorney notified him about the City of Montgomeryâ&#x20AC;&#x2122;s I-65 Corridor incentives program, which required a minimum investment of $1 million and the creation of at least 20 jobs. The incentives were some tax abatements on construction materials and property taxes. â&#x20AC;&#x153;We had an overwhelming response from our guests when we opened there,â&#x20AC;? Sidhu said about the South Boulevard site. â&#x20AC;&#x153;Nothing new had opened there for a long period of time and it has heavy traffic. Our competitors have enjoyed good business there for several years without new competition coming in.â&#x20AC;? It was his first location in Montgomery to stay open 24 hours and that has helped

boost sales. â&#x20AC;&#x153;I was always interested in doing business at that area,â&#x20AC;? Sidhu said Then six months later he opened a second location on South Boulevard â&#x20AC;&#x201C; this one being closer to Interstate 65. The second location has not done as well. â&#x20AC;&#x153;It is a more seasonal restaurant, so it does well in the summer,â&#x20AC;? Sidhu said, but the annual sales are below his $1.4 million per store average. â&#x20AC;&#x153;That part of town is still a little challenged.â&#x20AC;? Then Montgomery Deputy Mayor Jeff Downes told the Montgomery Business Journal: â&#x20AC;&#x153;If you look at the direct impact on a large city of a Burger King, it is quite candidly minimal. However, the biggest impact is the ability for the City of Montgomery and Montgomery County to show that they are in the game and willing to incentivize businesses to come to targeted areas that in some cases have not seen new development in 10 to 20 years.â&#x20AC;? â&#x20AC;˘

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October 2013 Montgomery Business Journal

Making the Dream a Reality Montgomery Mayor Todd Strange and Montgomery County Commission Chairman Elton N. Dean Sr. work together to make Montgomery a better place to live, work and play. by David Zaslawsky

photography by Robert Fouts

It may seem surprising, but when company officials and others cite the close relationship of the mayor and county chairman as a reason for coming to Montgomery, that is not always the case in other cities and counties. We may easily take for granted that Montgomery Mayor Todd Strange and Montgomery County Commission Chairman Elton N. Dean Sr. are not only on the same page, but have each other’s backs as well. Yet, that very simple fact separates Montgomery from other areas.

“The relationship between the Chamber, mayor’s office and the county commissioners’ office is extraordinary.” - Michael Hyter, president and managing partner of Global Novations

Montgomery Business Journal October 2013

When Leslie Sanders, vice president of Alabama Power Co.’s Southern Division, introduced Strange and Dean earlier this year at the State of the City/State of the County addresses, she said, “Whether it is an economic development prospect in town or Fortune 500 CEOs at the Diversity Summit, they are blown away by the spirit of cooperation and trust between the mayor and commission chairman and extraordinary leadership they see in Montgomery, Ala.” Strange was delighted that his relationship with Dean is being noticed. First of all, it’s a plus in competing for economic development projects when companies know the local leadership works well together. “I am gratified, flattered and honored that other communities give us credit for the fact that we have such a good working relationship because it does give us a leg up when you have all the parties at the table – it’s huge.” Michael Hyter, president and managing partner of Global Novations, also noticed that close relationship and told the Montgomery Area Chamber of Commerce:

“The relationship between the Chamber, mayor’s office and the county commissioners’ office is extraordinary.” James D. White, the chairman, president & CEO of Jamba Juice Co. who was the keynote speaker at the Chamber’s 2012 Diversity Summit, said: “As I think about the collaboration I saw in the brief time I spent with your mayor and chairman of your County Commission – the genuine partnership and respect that I got to see from those two gentlemen here in Montgomery was unlike anything I see in any of my travels.” With 787 stores in the United States and another 42 international stores, he does his share of traveling. That “genuine partnership and trust” is readily apparent. “You have to trust someone to tell you when you’re wrong,” Strange said. “Or trust someone to tell you that ‘This is what we’ll do.’ Or trust someone to say, ‘That’s not exactly how we should do this.’ It’s a mutual respect.”

Dean said, “I trust Todd and I know that he trusts me and that’s the reason that we have the kind of relationship that we have. We are concerned about each other. I will tell him he needs to rest some and he will tell me that I need to rest some. We burn the candle at both ends. It is never-ending.” Speaking of trust, the mayor likes to say that the city and county have a handshake agreement on incentive packages: The city pays 60 percent and the county pays 40 percent. The two are frequently seen at the same events whether it is announcing a new company coming to the city/county or an existing company expanding or social event they attend as elected leaders. Sometimes they ride together to an event and Dean said that he is always asked by the mayor if he would like a ride. They are comfortable with each other and now after nearly 10 years of working together

at the County Commission in 2004 and as chairman and mayor since 2009, the two are at the point where they can practically speak for one another and do know what the other is thinking. “When Elton says something to me, I don’t worry about a hidden agenda,” Strange said. “He just lays it out there and he’s a sounding board.” Dean is not only a sounding board for the County Commission, but he is chairman of the Alabama State University’s Board of Trustees. As far as the mayor is concerned, Dean said, “I don’t think he ever has a hidden agenda. I think he is too vocal to have a hidden agenda.” Dean said that he knows the mayor so well that he rejects some of the comments attributed to Strange. “When someone accuses him (Strange) of something, I say that’s not him,” Dean said. CONTINUED ON PAGE 37

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October 2013 Montgomery Business Journal

Decades before Montgomery County Commission Chairman Elton N. Dean Sr. and Montgomery Mayor Todd Strange met, the two shared a common bond and that was being fatherless at a young age. Dean was just a 9-year-old child when his father passed away while Strange was a teenager – he said 14 or 15. Dean said that being raised by his mother had a profound impact on him. “Mothers teach you how to love and I think we (the mayor and I) learned how to love at an early age. We learned to respect the people around us at an early age. We’ve done that throughout our career – being inclusive; loving what you do; loving and appreciating the people around you.” Another shared background that has shaped their relationship with each other as well as others was their management training from the Bell Telephone system. “Bell has been known forever for the training of their managers,” said Strange, who was an executive with South Central Bell.

SHARED ROOTS IN BELL TELEPHONE SYSTEM by David Zaslawsky

Dean was a manager with Western Electric – one of the first black managers. Strange said he supervised another of the first black managers. “We’ve been able to share some stories about those kinds of things,” Strange said. For Dean, who retired after 25 years with Western Electric, he said the company was on the cutting edge of management style. “It was the best management training a person could ever have,” he said. “It taught you how to think globally and always strive to do the best and obtain the best results. You always want to be No. 1 in what you’re doing.” That training stressed communication – talking and just as important - listening. “You might be the manager, but you don’t know it all,” Dean said. “You always try to surround yourself with smarter people – people who can add value to whatever your program is. That’s what A&T always talked about – engaging your people.” He said another important aspect of the management training was learning how to develop teams. “We also developed what they called a self-management work team,” Dean said. That means that employees manage themselves. “Our managers stopped being

Montgomery Business Journal October 2013

managers and were converted to being coaches,” he said. “I started understanding change a long time ago.” He said that using coaching techniques gets people “to buyin what you’re doing. When people have ownership in something they take more pride in it.” Their relationship really took a turn when Strange replaced Bill Joseph as County Commission chairman. Joseph was Dean’s mentor. Dean was the vice chairman. “I never did anything without making sure that he was on board,” Strange said about his time with Dean on the County Commission. “We had a very good relationship. We never wanted to put something out there that we didn’t think would be well received by the entire commission. If you had his perspective and my perspective we could come to some central agreement.” Dean said that he and Strange were always at the table together on economic development projects. “There was nothing we didn’t do together,” he said. After former Montgomery Mayor Bobby Bright successfully ran for a U.S. House seat in 2008, Dean backed Strange’s mayoral run. “It’s no secret that I supported him,” Dean said. “It’s no secret that we had the percentages to elect a black mayor.” •

CONTINUED FROM PAGE 35

The two often joke about the county being the parent and the city being the child. The city makes up about 90 percent of the county. “While we are the largest entity within the county … we’re the big kid out there and we’re the oldest kid, but we don’t want to act like we’re the oldest kid,” Strange said. “We want to be partners not only with the county – the parent, but also with our siblings as well and even beyond that with Prattville and Wetumpka and some extent to Fort Deposit and Greenville.”

“We don't dictate to each other. We communicate; we collaborate about what’s good for the people we represent.”

Instead of thinking about the city and county as separate entities – silos if you will - the two leaders never lose sight of the big picture. And the big picture is what’s good for Montgomery. They are acutely aware of whatever is good for the county is good for the city and whatever is good for the city is good for the county.

-Elton N. Dean Sr, chairman of the Montgomery County Commission

“No question about it because together we have about a $320 million budget and we have about 3,400 employees,” Strange said.

The city and county already have some functions of a metro government rather than mayor and county commission chairman

“We want what’s best for the total community and the surrounding community,” Dean said. “We talk about inclusiveness and that’s the only way we can be. You don’t gain anything by excluding.”

CONTINUED ON PAGE 38

October 2013 Montgomery Business Journal

CONTINUED FROM PAGE 37

jealously guarding their turf. A county employee oversees information technology for the two entities and that includes city employees while the city’s Emergency Management Agency Director Calvin Brown oversees operation for both the city and county. The city-county personnel director is paid by the county. Thus the city and county enjoy some benefits of a metro government without being one and duplication is eliminated, which saves both entities money. The county has taken a leadership role in employee health care activities, according to Strange “so we follow them.” The county has followed the city when it came to the SMART budget process. The two men do not always agree. They may feel a certain project is a bad fit for Montgomery or they may disagree on how to achieve a goal, but those differences strengthen the relationship, according to Strange. “You’re not going to always agree, but when you get around the table and you communicate you can argue your point and I can argue mine and when

Montgomery Business Journal October 2013

we get through all the different points – there is a common position that we both take,” Dean said. Strange said there have been a “handful” of times where the two agreed to disagree. “I believe that’s what should happen when you have respect for each other and you may not agree with the position, but you have respect for the person.” The two men have vastly different cultural backgrounds – Dean is black and Strange is white – as well as political differences as Dean is a Democrat and Strange is a Republican. “I think the fact that we have (focused on) to do what’s best for the people – what’s the right thing for the people – that allows us to not wear a mantel of having an R or D , Strange said. “We don’t talk as Democrats and Republicans,” Dean said. “We talk as two individuals. When I support him, I don’t support him as a Republican. I support him for his ideas and what he feels about – his beliefs. It’s time to stop looking at whether I’m a Republican or I’m a Democrat.

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CONTINUED ON PAGE 40

â&#x20AC;&#x153;Many cities dream of the things and they dream of places like this where weâ&#x20AC;&#x2122;re standing, but in Montgomery they make it happen.â&#x20AC;? - Berkeley Young, president of Young Strategies, on the Alley

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h o l i d ay e v e n t s

Book your Christmas party now!

”I am gratified, flattered and honored that other communities give us credit for the fact that we have such a good working relationship because it does give us a leg up when you have all the parties at the table –

it’s huge.”

- Montgomery Mayor Todd Strange

CONTINUED FROM PAGE 39

well as other sites throughout the city and county, there are detractors.

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Dean said that he has been criticized in the black community for being too closely aligned with Strange. “We don’t dictate to each other,” Dean said. “We communicate; we collaborate about what’s good for the people we represent.” Alabama Commerce Secretary Greg Canfield told the Chamber: “You have a great partnership in the River Region between the City of Montgomery, the county and the Chamber. When those elements come together and work in partnerships regionally and cooperate with the state – we have a winner.” That did not go unnoticed by Berkeley Young, president of Young Strategies who told the Chamber: “Many cities dream

334 277 1077

a l l e y s tat i o n . c o m

m a n a g e d b y pa r t n e r s r e a lt y

Montgomery Business Journal October 2013

of the things and they dream of places like this where we’re standing, but in Montgomery they make it happen,” he said, referring to The Alley. “The only way we could obtain what we have is that we have to work together,” Dean said. “If we want to make a difference in Montgomery and the surrounding area we have to work together. There were times when we would go to other places and see how they did things, but now people come to us and ask, ‘How do y’all get these results?’ ” You don’t need to look any further than the relationship of the mayor and the county commission chairman, but of course they cannot be effective without the support of the Montgomery City Council, Montgomery County Commission, state delegation and the Chamber. •

Albert Schweitzer

Uncom prom ising We believe the most significant investment made is the investment in a life of uncompromising commitment.

welchhornsby.com

Investor Member Profile Profile BUSINESS BUZZ (CONTINUED FROM PAGE 63)

Bill Hudgen (right) is the owner of Montgomery Aviation. His son Charlie (left) is currently studying at the University of Georgia.

Heir Port Second generation keeps â&#x20AC;&#x2122;em flying at Montgomery Aviation by Jennifer Kornegay

photography by Robert Fouts

Since 1945, a Hudgens has been in the cockpit leading Montgomery Aviation.

The journey from then to now has been a long flight, with some turbulence along the way and a few course adjustments, but current owner Bill Hudgens still loves the business and even recently bought another, purchasing the majority shares of Pensacola Aviation in Florida (which he’d had some shares in since the 1990s) late last year. Montgomery Aviation is a Fixed Base Operator for private aircraft located at Dannelly Field and is the oldest FBO in the state. Hudgens’ father, along with E. Donald and M. Grady Hall (brothers) and a few other investors, started the company in October of 1945 at what was then called Norman Bridge Airport. His father moved operations to its current location in 1947. “We are basically a private aviation terminal and service station,” Hudges said. “We sell fuel, provide hangar space for planes, a pilots’ lounge and other services.” In years past, Montgomery Aviation also provided maintenance and flying lessons but now subs those functions out to another company that operates on site. And it completely closed its charter business. “There is no aircraft charter in Montgomery at all anymore,” Hudgens said. Streamlining its offerings has come in response to the ups and downs of the economy over the decades. “The current economy has hurt small businesses that use small aircraft. Their businesses are not as healthy as they were and traveling in private planes gets cut out of their budgets,” Hudgens said. “This year, we are selling less than half the fuel we sold 10 years ago.” But it’s not all doom and gloom for the FBO business. “These planes are still the best way to get somewhere fast,” he said. “And business travel is here to stay; larger businesses are still making use of it, and the smaller ones will come back. People always have to get places.” Other changes at Montgomery Aviation have kept pace with changes to the industry as a whole, particularly the continual progression of technology. “The electronics and avionics in aircraft have been moving at a breakneck pace of innovation, and the coolest new things are the safety enhancements thanks to increased weather information we can get in cockpit and enhanced navigation tools,” Hudgens said.

MONTGOMERY AVIATION YEAR FOUNDED

1945

NUMBER OF EMPLOYEES

OF NOTE

Montgomery Aviation is the oldest Fixed Base Operator in Alabama and was the career home to famed pilot John Ed Long who, while deceased, still holds the Guinness World Record for highest flight time, logging more flight hours than any other person: 64,000 hours or the equivalent of eight years of his life. After high school, Hudgens went to Auburn and studied aviation management and participated in the co-op program working at Montgomery Aviation. He also got his airframe and powerplant mechanics ratings and has a commercial pilot certificate. “After college, I came back here and worked in the shop some and as a flight instructor some,” he said. Hudgens then took a few years and got his MBA from Harvard Business School and has been at Montgomery Aviation full time ever since. Hudgens proudly explained the role his company plays in the capital city. “We are the front door to Montgomery for many people coming here to do business, and we take that very seriously,” he said. “We want to make it easy and enjoyable for people to get into Montgomery and take care of their business.” Hudgens also owns the Avis rental car franchise, which is on site, making it easy for Montgomery Aviation to set its customers up with a vehicle for getting around town.

The advent of time-share for corporate jets is another important change and has become a major sector of the industry. “Net Jets, Citation Shares, these programs have made the availability of corporate aircraft use more widespread,” he said.

Being a gateway to the city definitely has some perks. “I’ve met some really cool people, the coolest being Elvis Presley,” Hudgens said. Other celebrities coming through Montgomery Aviation include both President Bushes and countless other politicians, Elton John, SEC football coaches and more.

And Hudgens is well aware of how much the business has evolved in the last 65 years, having seen many of the changes firsthand. He’s been in and around airplanes and Montgomery Aviation all his life; he started working there in the summers as a teenager, polishing airplanes.

Hudgens’ son Charlie is currently studying at the University of Georgia, and for now, is strongly considering joining his father at Montgomery Aviation after graduation and becoming the third generation of his family to enter the aviation industry. Today, almost seven decades since his dad started the business, Hudgens summed up what he loves about what he does. “I just love the business,” he said. “People in aviation by and large are good people, neat people, and I like being around them. I also like the precision of aircraft and flying. You have to do things well; it demands discipline and performing at a high level. Plus, flying is just fun.” •

October 2013 Montgomery Business Journal

Bigger Gains

from

Smaller Units Cities focus on downtowns by David Zaslawsky Photography by Robert Fouts

The key to multi-family projects are product type and location, according to Sealy. “A lot of our renters rent by choice,” he said. His company has projects in Mobile, Huntsville, Birmingham and Tuscaloosa, and he said there is not a glut of multi-family projects in those cities. Sealy said his company weathered the economic downturn by concentrating on multi-family projects in secondary markets; maintaining a diverse portfolio; and “playing it safe.” Meanwhile, several multi-family projects are planned in Montgomery along Maxwell Boulevard that could result in hundreds of units.

Lofts in Foshee Management Company's 40 Four Building include hardwood floors, granite counter tops, and black appliances.

Montgomery is enjoying some of the latest trends in real estate: Urban infill, a focus on downtown and smaller living units. Those are two trends that emerged during the Alabama Center for Real Estate Executive Exchange held at Montgomery City Hall. It was Charlie Sealy III, vice president of Sealy Management Co. Inc., who talked about the urban infill happening in Montgomery and how cities are concentrating on their downtowns because young professionals and empty-nesters are moving back to downtown. He said the trend is for smaller apartments/ lofts and top-of-the-line features such as granite countertops and stainless-steel appliances in 800-square-foot units instead of those 1,200-square-foot units. The Foshee Management Co. in Montgomery has done just that with several of its properties including Fair Lofts, Alps Downtown Lofts and the 40 Four Building. There are lofts that are 700 square feet or less, but there are also lofts more than 2,500 square feet. Some of the interior features at the 40 Four Building include hardwood floors, granite countertops, sleek white cabinets, window walls, 10-foot ceilings and black appliances, according to Beau Daniel, regional property manager for Foshee Management Co.

Montgomery Business Journal October 2013

Will Wilson, president of Montgomerybased Jim Wilson & Associates, said his company sold some malls, reduced debt and refinanced debt as well as downsized to survive the Great Recession. The company also put three projects on hold. Now the company is seeing some positive results – growing membership at Wynlakes Golf & Country Club and strong sales at New Park, a master-planned community in East Montgomery. Wilson said that there were 100 lots sold last year compared with 180-plus lots through August of 2013. The company is working with Foshee Design & Construction on an upscale, 216-unit apartment project at the corner of EastChase Lane and Berryhill Road in the EastChase development, which was a joint project with Jim Wilson & Associates and Alfa Properties Inc. The Shoppes at EastChase and EastChase Plaza, in addition to some outparcels, are managed by Birmingham-based Bayer Properties, which also developed The Summit in Birmingham. Jeffrey Bayer, president & CEO of Bayer Properties, said his company stopped work on six or seven projects when the real estate market weakened in 2008. Bayer Properties hired leasing personnel and brought in acquisition personnel to increase its portfolio, which tripled in the last three years.

He said the key to retail venues is providing more than just goods. He said that “people want to have fun, socialize and eat” and not just shop. Jim Wilson & Associates is investing $50 million-plus in renovations to its 26-yearold Riverchase Galleria in Hoover and another $20 million to renovate the Hyatt Regency Birmingham – Winfrey Hotel next to the Galleria. Those projects cannot compare to the company’s $1 billion Redstone Gateway project in Huntsville. Wilson said the first three buildings have been leased by Boeing and two other buildings are under construction. The massive 468-acre project is expected to feature more than 4 million square feet of office and retail space as well as a hotel. The project is being built in phases over a 15- to 20-year period. Alabama Association of Realtors CEO Barry Mask said, “We have weathered the storm

a lot better than most of the country. We see the light at the end of the tunnel.” He pointed to nine straight quarters of increased home sales, but warned about the impact of higher interest rates. July home sales increased 19 percent from a year ago and through July overall sales

were up 11 percent over 2012 and there was a steep 17 percent drop of housing supply from July 2013 (7.9 months) compared with 9.5 months of supply in July 2012. The average price increased 9 percent from last July ($148,000) to July 2013 ($162,000). •

Cities are concentrating on their downtowns because young professionals and empty-nesters are moving back to downtown.

October 2013 Montgomery Business Journal

by David Zaslawsky

BRONNER URGES STATE TO EXPAND MEDICAID – CREATE JOBS

It may appear to be an unlikely source for economic development, but Retirement Systems of Alabama CEO David Bronner insists that expanding the state’s Medicaid program to cover 300,000 people without health insurance means thousands of jobs and billions of dollars. He said that the State of Alabama would receive $1.5 billion from the federal government in 2014; another $1.5 billion in 2015; and another $1.5 billion in 2016 as part of the Affordable Care Act (ACA). “We don’t even have to put in a dime,” Bronner said at the Alabama Center for Real Estate Executive Exchange at Montgomery’s City Hall. He talked about RSA’s involvement in real estate, but as he frequently does, he launched into his strong support of the Affordable Care Act, saving the last five minutes of a 25-minute keynote address.

Fouts Commercial Photography

It’s a no-brainer for Bronner and he certainly takes every opportunity to voice his opinion – his strongly worded opinion.

David Bronner

The state would be responsible for 10 percent of the Medicaid expansion cost beginning in 2020 and would incur some costs beginning in 2017. For Bronner, who oversees a $34 billion public pension fund, he cannot understand why the state does not want to participate in the ACA and receive the billions of dollars. Of course, he does acknowledge the politics. He said that the Medicaid expansion, which Alabama Gov. Robert Bentley rejects, is tied to real estate because it pumps billions of dollars into the state’s economy. He suggested that some of that windfall could fund raises for state employees or be used in the General Fund, which historically has been difficult to balance. A Georgia official said that his state is projected to create 70,000 jobs as a result of implementing the Affordable Care Act. Bronner said that if Georgia, which has a population of nearly 10 million can create 70,000 jobs, than Alabama with a population of nearly 5 million, would create 35,000 jobs.

He pointed out that even if the Medicaid expansion created just 5,000 jobs it would easily be the largest economic development project the state has had. Remember that the state and other governmental agencies gave about $250 million to bring a Mercedes-Benz automotive plant to Vance for 1,000 jobs. Twenty years and millions of dollars more in incentives, Mercedes will have a work force of 4,000. The incentive package to bring an Airbus assembly plant to Mobile was about $180 million for 1,000 workers. “What I’m saying to you, a billion-and-a-half dollars in Alabama’s economy makes a lot of things happen,” Bronner said. Meanwhile, Bronner said there are two primary reasons to consider real estate: Does it serve a purpose or does it solve a problem? RSA built the Robert Trent Jones Golf Trail and hotels for several reasons. The trail helped establish the tourism industry, Bronner said. It also helped recruit international companies to Alabama and he wanted the “people of Alabama to have something they are proud of.” The golf trail served an even greater purpose – changing the image of Alabama. “Everybody that comes to the state has such low expectations of the state,” he said. The golf trail and hotels at those sites helped changed that image. One of RSA’s real estate investments went from being a disaster to a victory. The pension fund loaned about $625 million to National Steel Car, a Canadian company, to build freight cars in Colbert County. National Steel Car backed out of the deal and RSA was left with what Bronner called a special-purpose building with no tenant. He said “it’s a killer if the owner of a specialpurpose building doesn’t show up.” Navistar International agreed to lease the mile-long plant and now is subleasing a part of the plant to FreightCar America. And the good news is that the first freight cars were produced there in July and RSA has partners in both Navistar and FreightCar America. •

Montgomery Business Journal October 2013

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Montgomery Business Journal October 2013

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Member News

BUSINESS BUZZ

MAX HOLDS GROUNDBREAKING FOR WETUMPKA BRANCH WETUMPKA – MAX Credit Union celebrated the groundbreaking for its new branch in Wetumpka. The branch, which will be at 94 Captain Crommelin Road, replaces an existing site on Highway 231. The new branch is expected to open in the spring. The branch will feature the latest in modern design and technology. A concierge will greet customers and individual kiosks staffed with employees will offer customers one-on-one service. The branch will also feature the MAX Perks refreshment center, offering free coffee and bottled water, and the MAX Business Center, where clients can organize paperwork, send a fax or make copies of documents.

shop, eat and have fun all under one roof.”

entertainment mix at Eastdale Mall,” said Owen Aronov, president of Aronov Realty Management Inc., which owns Eastdale Mall.

Owen Aronov

CHUCK E. CHEESE’S OPENS AT EASTDALE MALL MONTGOMERY – Chuck E. Cheese’s family entertainment center has opened at Eastdale Mall.

Store hours for the new Eastdale Mall Chuck E. Cheese’s are 9 a.m.-10 p.m. SundayThursday and 9 a.m.-11 p.m. Friday-Saturday.

“This new Eastdale Mall location is the second in the U.S. to include their newest digital stage format that debuted recently in Dallas. We are pleased to introduce another new and exciting family-friendly offering to create even more excitement when customers throughout our region come to Eastdale Mall to

The new 13,000-square-foot family entertainment center is located between LensCrafters and Dillard’s. “We are so pleased to add Chuck E. Cheese’s to our retail and

“Montgomery has a vibrant, growing population of young families and Eastdale Mall is the perfect location for Chuck E. Cheese’s to offer our unbeatable value to these families,” said (CONTINUED ON PAGE 50)

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'ƌĂƉŚŝĐƐ Θ DĂŝůŝŶŐ ^ĞƌǀŝĐĞ͕ /ŶĐ͘ ;'D^͕ /ŶĐ͘Ϳ ŽĨĨĞƌƐ ƐŽƵŶĚ ĂŶĚ ƉƌŽǀĞŶ ƐƚƌĂƚĞŐŝĞƐ Θ ƐŽůƵƚŝŽŶƐ ĨŽƌ Ăůů ǇŽƵƌ ĚŝƌĞĐƚ ŵĂƌŬĞƚŝŶŐ ĐŚĂůůĞŶŐĞƐ͘ tĞ ĐĂŶ ŚĞůƉ ǇŽƵ ĨŝŶĚ ŶĞǁ ĐƵƐƚŽŵĞƌƐ͕ ǁŝŶ ŵŽƌĞ ƐĂůĞƐ ĂŶĚ ŵŽƚŝǀĂƚĞ ƌĞƉĞĂƚ ďƵƐŝŶĞƐƐ ĂŶĚ ƌĞĨĞƌƌĂůƐ͘ dŚĞ ƌĞƐƵůƚ ŝƐ ŝŶĐƌĞĂƐĞĚ ĐƵƐƚŽŵĞƌ ƚƌĂŶƐĂĐƚŝŽŶĂů ǀĂůƵĞ ĂŶĚ ƌĞůĂƚŝŽŶƐŚŝƉ ŐƌŽǁƚŚ͘ 'D^͕ /ŶĐ͘ ƉƌŽǀŝĚĞƐ ƚƌĂĚŝƚŝŽŶĂů ƉƌŝŶƚ ĂŶĚ ĚŝƌĞĐƚ ŵĂŝů ƐƚƌĂƚĞŐŝĞƐ ĂůŽŶŐ ǁŝƚŚ ĞǆĐŝƚŝŶŐ ĚŝŐŝƚĂů ƐŽůƵƚŝŽŶƐ ŝŶĐůƵĚŝŶŐ ƉĞƌƐŽŶĂůŝǌĞĚ ƉƌŝŶƚ ĂŶĚ ĞŵĂŝů ĐĂŵƉĂŝŐŶƐ͘

dĞůů ƵƐ ĂďŽƵƚ ǇŽƵƌ ĐŚĂůůĞŶŐĞƐ ƚŽĚĂǇ͊

'ƌĂƉŚŝĐƐ Θ DĂŝůŝŶŐ ^ĞƌǀŝĐĞ͕ /ŶĐ͘ ϮϬϮϲ >ŽĐƵƐƚ ^ƚƌĞĞƚ DŽŶƚŐŽŵĞƌǇ͕ > ϯϲϭϬϳ

ŝƌĞĐƚ DĂƌŬĞƚŝŶŐ ^ƚƌĂƚĞŐŝĞƐ Θ ^ŽůƵƚŝŽŶƐ ϭ͘ϴϬϬ͘ϴϬϭ͘ϯϮϰϳ ǁǁǁ͘ŐƌĂƉŚŝĐƐĂŶĚŵĂŝůŝŶŐ͘ĐŽŵ

October 2013 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 49) Michelle Chism, director of corporate communications for Chuck E. Cheese’s. The nearly 1 million-squarefoot Eastdale Mall features 90 specialty retailers.

John G. Veres

WARHAWK HALL OPENS AT AUM

Brenda Hellums

WARREN AVERETT EXECUTIVE RECEIVES CERTIFICATION MONTGOMERY – Warren Averett, LLC, executive Brenda Hellums has obtained certification as a professional daily money manager. She is director of the daily money management services. Daily money managers help individuals and families with their personal paperwork. This may include bill paying, checkbook balancing, filing, organizing and budgeting as well as submitting and tracking medical insurance claims. Certification by the American Association of Daily Money Managers (AADMM) supports the organization’s commitment to promoting high standards of client services provided by members. Warren Averett has become one of the largest accounting firms in the Southeast and ranks among the top 30 firms in the United States. The firm has 800-plus employees, 350 certified public accountants and 15 offices.

MONTGOMERY – Auburn University at Montgomery kicked off the fall semester with the grand opening of Warhawk Hall, a new five-story residence hall.

For information, contact Amy Godsoe at (334) 241-0003 or visit www.alkidney.org.

"Warhawk Hall is not a dormitory, it's a residential community that changes the face of our campus," said AUM Chancellor John Veres, an AUM alumnus. "With Warhawk Hall and the Wellness Center book-ending the main entrance, AUM's student-centered focus is evident from the moment one arrives on campus." The new residence hall joins the Courtyards, built in the 1970s as the first housing offered on campus, and the Commons, which opened in 2003. Warhawk Hall boasts a two-story recreational center – The Nest – which offers all campus housing residents a place to study and participate in student activities. The building was designed and constructed by Williams Blackstock Architects and B.L. Harbert International. It was fully occupied this fall. KIDNEY FOUNDATION’S SOIREE RAISES $5,000-PLUS

Montgomery Business Journal October 2013

RIDESHARING MAY CUT COSTS MONTGOMERY – Many businesses and consumers are searching for ways to save money. There’s a possible solution to help both: Ridesharing. The first step is to visit the free commute-cost calculator available on www.commutesmart. org (+City) which will calculate how much commuting is costing you. If you have computed your numbers, is getting to work costing more than you thought? If you're commuting more than 15 miles a day to work, have you considered a rideshare partner?

The 144,740-square-foot building is located near the main entrance to campus on Taylor Road, across from the Wellness Center.

MONTGOMERY – The Alabama Kidney Foundation raised more than $5,000 with its inaugural Summer Soiree.

More than 200 people attended the “Beach Party” themed event. The Alabama Kidney Foundation serves kidney patients by providing financial assistance, education and support services. The foundation promotes public education to prevent kidney disease and raise organ donation awareness.

Leonardo Maurelli III

CENTRAL CHEF PARTNERS WITH DOWNTOWN FARM MONTGOMERY – Central Executive Chef Leonardo Maurelli III created a dining concept called Desde el Jardin or “From the Garden.” The Friday night only a la carte menu is offered from 5:30 p.m.10 p.m. The concept evolved out of Maurelli’s relationship with EAT South Downtown Farm and his commitment to buy local fresh ingredients for Central’s changing seasonal menu. Every Friday, EAT South Farm brings fresh produce to Central and Maurelli creates a menu with those ingredients. “I love to keep my diners included in my process,” Maurelli said. “I get more excited each Friday when EAT South arrives with all the fresh produce.” Diners may receive an email Friday with the Desde el Jardin menu by joining Central’s mailing list at: www. central129coosa.com.

Ridesharing and vanpooling are available to employees and may save businesses money and help with recruitment and retention. When employees carpool, it reduces congestion on the roads and frees up parking spaces in parking lots and garages. To register for the online ride-matching program for Montgomery, visit www. commutesmart.org. The program will match you with other interested carpoolers at no cost. Vanpooling is an arrangement by a group of commuters to drive together in a van to their place (or places) of business. Full-size vans and minivans carry seven to 15 passengers. For information on setting up a vanpool for your organization, contact T. Ray Mauldin at TMauldin@ RPCGB.ORG. If you would like a representative to come to your place of business to talk about the rideshare program, contact Liz Cochran with the Energy Division of the Alabama Department of Economic and Community Affairs at liz.cochran@ adeca.alabama.gov.

BUSINESS BUZZ the largest architectural practice in Alabama.

www.alabamachristian.com and new positioning: “Thrive in wisdom. Serve in spirit.”

Ronnie Sewell

ALABAMA CHRISTIAN ACADEMY INTRODUCES NEW LOOK, BRAND MONTGOMERY – As Alabama Christian Academy (ACA) inaugurates its 2013-14 school year, it is also introducing a new look and brand. The school, which celebrated its 70th year in 2012, worked closely with creative consultancy Copperwing Design to craft a new brand identity, including a revised school logo, updated website at

“The positioning really sums up our mission here at Alabama Christian Academy,” said ACA President Ronnie Sewell. “Academic excellence is extremely important for the development of our future leaders and citizens, but alone, it’s not enough. Along with that focus, we integrate the formation of faith and character in all we do from the classroom to the athletic field. Academically, socially and spiritually – we want them to thrive.” Alabama Christian Academy, which was founded in 1942, teaches students from prekindergarten through the 12th grade.

As executive vice president for architecture and a member of the firm’s executive committee, Wallace’s primary roles are strategic planning, business performance and geographic diversification through acquisitions.

Bill Wallace

TRUSTMARK BANK ANNOUNCES ADVISORY BOARD MEMBER MONTGOMERY – Bill Wallace has joined the Trustmark Community Bank Advisory Board of Directors in Montgomery. Wallace has 32-plus years experience in the architecture profession and is a partner with Montgomery-based Goodwyn, Mills and Cawood. The firm has grown into one of the largest privately held, multi-disciplined architecture and engineering firms in the Southeast and

SASSER, SEFTON, BROWN, TIPTON & DAVIS ATTORNEYS NAMED TO SUPER LIST MONTGOMERY – Sasser, Sefton, Brown, Tipton & Davis, P.C., shareholders Pat Sefton and Bo Brown have been named to the 2013 Alabama Super Lawyers List. Sefton is listed in Alabama Super Lawyers in the primary practice area of banking litigation. Brown is listed in the area of bankruptcy and creditors’ rights. (CONTINUED ON PAGE 52)

October 2013 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 51) Alabama Super Lawyers is published by Thomson Reuters in cooperation with the publishers of Business Alabama magazine. TOURNAMENTS RAISE $110,000 FOR JACKSON HOSPITAL FOUNDATION MONTGOMERY – More than 220 golfers and 28 tennis players participated in the Swinging FORE Healthcare golf and tennis tournament benefiting the Jackson Hospital Foundation. With 14 vendor sponsors, the tournament at Wynlakes Golf & Country Club raised nearly $110,000 for the foundation. “Swinging FORE Healthcare is one of the best tournaments in the River Region,” said Patrick Wood, development director for the foundation. “We continue to be humbled by the support of our vendors and participants. Our vendors go the extra mile to provide entertainment that makes this tournament truly unique.” Proceeds from this year’s event will benefit cardiovascular services at Jackson Hospital. CAPELL & HOWARD LAWYERS NAMED TO 2014 BEST LAWYERS LIST MONTGOMERY – Seventeen lawyers at Capell & Howard, P.C., are included in the 2014 edition of Best Lawyers. The attorneys were selected by their peers for inclusion in The Best Lawyers in America. Of these 17, four were named as Lawyers of the Year in five categories: William D. Coleman, litigation-environmental and mediation; Henry H. Hutchinson, litigation and controversy-tax; D. Kyle Johnson, corporate law; and William K. Martin, real estate law.

The following attorneys were also named as Best Lawyers: Frank H. McFadden, Bruce J. Downey, Henry C. Barnett, K. Palmer Smith, Robert T. Meadows, Shap D. Ashley, Robert F. Northcutt, J. Lister Hubbard, James N. Walter, Debby D. Spain, R. Brooke Lawson, M. Courtney Williams and James M. Scott. The attorneys selected practice in the areas of arbitration, mediation, construction law, labor and employment law, family law, real estate, trusts and estates, tax law, commercial litigation, banking and finance litigation, litigation-construction, corporate law and employee benefits law. Best Lawyers is the oldest and most respected peerreview publication in the legal profession. BEASLEY ALLEN ATTORNEYS NAMED TO BEST LAWYERS PUBLICATION MONTGOMERY – Seventeen Beasley Allen attorneys were selected for inclusion in the 2014 edition of Best Lawyers in America. Included on the list are the firm’s founding shareholder, Jere L. Beasley, as well as shareholders J. Greg Allen, Michael J. Crow, Thomas J. Methvin, J. Cole Portis, W. Daniel “Dee” Miles III, Andy D. Birchfield Jr., Rhon E. Jones, Benjamin E. Baker Jr., Julia Anne Beasley, LaBarron N. Boone, David B. Byrne III, R. Graham Esdale Jr., P. Leigh O’Dell, Roman A. Shaul, W. Roger Smith III and C. Gibson Vance. Additionally, Jere L. Beasley has been named the Best Lawyers’ 2014 Montgomery Personal Injury Litigation – Plaintiffs “Lawyer of the Year” and Methvin has been named the 2014 Montgomery Mass Tort Litigation/ Class Actions – Plaintiffs “Lawyer of the Year.”

Montgomery Business Journal October 2013

Since it was first published in 1983, Best Lawyers has become universally regarded as the definitive guide to legal excellence. Best Lawyers is based on an exhaustive peerreview survey in which almost 50,000 leading attorneys cast nearly 5 million votes on the legal abilities of other lawyers in their practice areas and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. GOODWYN, MILLS AND CAWOOD SEEKS ENTRIES FOR SOCIAL DESIGN BUILD COMPETITION MONTGOMERY – Goodwyn, Mills and Cawood Inc. (GMC) announced a Call for Entries to high schools in Alabama, Georgia, South Carolina and Tennessee for the 2013-14 Can Do Good Social Design Build Competition. Each school will host a canned food drive, then design and build an original structure using the collected items and submit a photo of the final Can Do Good Structure. One school from each state will be selected by popular vote through the Can Do Good Facebook page and will advance to the final round of the competition, judged by GMC architects and engineers. GMC will award the title of Best Can Do Good Structure in the Southeast plus $2,500 to the overall winning school, along with matching the donation of the winning school from each state. Entry forms are due Oct. 10 and structure submissions are due Dec. 10. Online voting to determine state winners is Dec. 12-Jan. 6 and the overall winner will be announced Jan. 23. For information, contact Abby Basinger at abby.basinger@ gmcnetwork.com. Forms

and competition submissions should be sent to candogood@ gmcnetwork.com. ALABAMA POWER FOUNDATION ANNOUNCES GATEWAY GRANTS The Alabama Power Foundation has awarded more than $33,000 in Gateway grants to provide materials for signs that greet visitors to cities, towns and communities across the state. This year, the Gateway grant program will help 16 communities welcome visitors and potential new businesses by providing funding to support well-designed entrances. The program helps communities remain beautiful and vibrant. Montgomery is one of the 16 communities. "The Alabama Power Foundation has a goal of strengthening the communities we serve," said John Hudson, president of the Alabama Power Foundation. "Providing an attractive gateway into these communities can help spur economic development and maintain civic pride." In its second year, the Gateway grant program has already impacted more than 30 communities in Central and South Alabama. To submit your business news for publication, email a press release to editor@montgomerychamber.com. Montgomery Area Chamber of Commerce Members only.

Member News

UMCH, which was founded 123 years ago, has helped transform the lives of thousands of abused, neglected and traumatized children, young mothers and struggling families.

MEMBERS ON THE MOVE

William R. Cunningham Jr.

Staff additions include David Savage, project manager; Chase Stewart, accounting associate; and Melissa Wagner, operations coordinator.

LAW FIRM ANNOUNCES HIRE MONTGOMERY – The law firm of Sasser, Sefton, Brown, Tipton & Davis, P.C., announced that William R. Cunningham Jr. has joined the firm. A native of Montgomery, Cunningham returned to the region after graduating from the University of Alabama School of Law in 2007. His practice is focused in the areas of real estate, financial services and credit transactions, environmental law and civil litigation.

Michelle Byrd

UNITED METHODIST CHILDREN’S HOME NAMES VICE PRESIDENT MONTGOMERY – The United Methodist Children’s Home recently appointed Michelle Byrd as vice president of finance and administration. Byrd, who will be in charge of the overall management of the agency’s business operations, will report to UMCH President and CEO Blake Horne. She brings more than 18 years of experience as an accountant. Most recently, she worked in corporate accounting with Colonial Bank and BB&T.

Jennifer Sullins

SMARTBOOKS ACCOUNTING SOLUTIONS HIRES EXPERIENCED ACCOUNTANT

David Savage

MONTGOMERY – SmartBooks Accounting Solutions, LLC, has hired accountant Jennifer Sullins. A Troy University graduate, Sullins has 18-plus years of experience in accounting management. Her industry experience includes both public and private accounting management in personal and corporate taxation, health care, hospitality, transportation, retail, new business development, agriculture, financial software conversion, forensic accounting, and cost accounting for food/ beverage implementation. Sullins has designed and comanaged multiple corporate initiatives, budgeting and streamlining costs by creating accurate reporting procedures for existing business as well as working closely with the Small Business Administration to assist new businesses with this same focus. SmartBooks Accounting Solutions offers professional accounting services including small business accounting, bookkeeping, traditional or online payroll, QuickBooks setup, help and training, tax preparation, budget and forecasting.

William Lievens

BAPTIST HEALTH NEUROLOGICAL CLINIC. ANNOUNCES NEW DOCTOR

Chase Stewart

MONTGOMERY – Dr. William Lievens has joined the Baptist Health Neurological Clinic.

Melissa Wagner

PARTNERS REALTY EXPANDS WITH THREE HIRES MONTGOMERY – Jenny Smith has been promoted to operations manager for Partners Realty as the company has also announced three hires. Smith, who has been with the firm since 2010, oversees a growing office administrative and accounting staff as well as the property management, homeowners’ association management and field maintenance departments.

He received undergraduate and medical degrees from the University of Miami in Coral Gables and Miami. He completed neurology residency at the University of Alabama at Birmingham. He continued his education at UAB, completing fellowships in clinical neurophysiology (EEG/epilepsy track) and sleep medicine. Lievens is a board-certified neurologist and board eligible in clinical neurophysiology, epilepsy, sleep medicine, and EEG. In addition to general neurology, his special interests are treating patients with epilepsy/seizures or sleep disorders. He is accepting new patients, who may call (334) 281-7299 to make an appointment. (CONTINUED ON PAGE 54)

October 2013 Montgomery Business Journal

(CONTINUED FROM PAGE 53)

JACKSON THORNTON ANNOUNCES PROMOTIONS MONTGOMERY – Certified public accounting and consulting firm Jackson Thornton announced several promotions. Joseph Vickery, Jason Davis and Adam Causey were all promoted to senior manager; and Brian Davis was promoted to director of information technology. Jackson Thornton also promoted Will Jones and William Sheffield to manager of the firm’s utilities group; and Ashley Taylor, manager of the business valuation and litigation consulting group. Jones, Sheffield and Taylor are all certified public accountants. Vickery, who joined the firm in 1998, specializes in not-forprofit and government audits, and manages the employee benefit plan audit practice. He received his undergraduate and graduate degrees from Auburn

Joseph Vickery

Jason Davis

Adam Causey

Ashley Taylor

Will Jones

William Sheffield

University. He is a certified public accountant (CPA).

in financial institution and cotton industry audits.

Davis, a CPA, received his undergraduate and graduate degrees from Auburn University and is in his second year of the three-year Alabama Banking School. He joined Jackson Thornton in 2001 and specializes

Causey provides tax and consulting services for small businesses and individuals. The certified public accountant joined the firm in 2006. He received a bachelor’s degree from Auburn University at Montgomery.

Davis joined Jackson Thornton Technologies in 2003 as a network engineer and was promoted to manager of internal IT for all Jackson Thornton companies in 2008. He received a bachelor’s degree from Auburn University at Montgomery. •

Montgomery Business Journal October 2013

NEW MEMBERS Apartments

Event-Venue

Pest Control

KENDRICK’S WAY APARTMENTS Brian Hollyhand 527-B Main Avenue Northport, AL 35476 334-819-4724

THE GRANDMA HOME HOUSE RETREAT Felicia Strowder 386 Old Campbell Road Pike Road, AL 36064 334-782-4980

KNOX PEST CONTROL James Smith 1570 North Eastern Boulevard Montgomery, AL 36117 334-213-0410

Automobile Dealers-Used

Home Health Services

ELITE AUTOMOTIVE GROUP Rozell Chappell 550 North Eastern Boulevard Montgomery, AL 36117 334-220-0088

ANSWERED PRAYER HOME CARE SERVICES Sherry White 400 Interstate Park, Suite 415 Montgomery, AL 36109 334-356-3911

Bakery

Information Technology Firms

PEASE OF CAKE Jennifer Pease 1102 Upper Kingston Road Prattville, AL 36067 334-782-5905

Beauty Salons/Spas L’ESPRIT SALON DA’SPA Gina Mount 8161-B Seaton Place Montgomery, AL 36116 334-260-0355

Builders-Commercial PEMBERTON, INC. Adam Pemberton P.O. Box 210067 Montgomery, AL 36121-0067 334-272-6929

Community Services/ Agencies CHOONA LANG Choona Lang 702 Keystone Street Montgomery, AL 36108 334-233-8750

Electronic Equipment & Supplies GRAYBAR ELECTRIC Mark Adams 520 North Eastern Boulevard Montgomery, AL 36117 205-244-2600

Elevators-Sales/Service KONE, INC. Jeff McNorton 265 Lyon Lane Birmingham, AL 35211 205-944-1032

CACI, INC. Joe DeFee 600 Interstate Park Drive Suite 623 Montgomery, AL 36109-5409 334-244-7400

Insurance Companies/ Services

Physicans-Neurology/ Neurosurgery WILLIAM E. LIEVENS, M.D., BAPTIST HEALTH NEUROLOGICAL CLINIC William E. Lievens 4225 Narrow Lane Road Montgomery, AL 36111-2649 334-281-7299

Real Estate Sales and Development SDS PROPERTY GROUP, LLC Gerald V. Salter 63 A Bridge Street Pike Road, AL 36064 334-356-9824

SOUTHEASTERN INSURANCE CONSULTANTS, LLC Lisa R. McLellan P.O. Box 6159 Montgomery, AL 36106-0159 803-730-8143

Real Estate-Agents

Paint & Painting Supplies

Restaurants-Seafood

SHERWIN WILLIAMS #2064 Petrissa Spears 136 Coliseum Boulevard Montgomery, AL 36109 334-272-2662 SHERWIN WILLIAMS #2318 Ty Simmons 3800 Eastdale Circle Montgomery, AL 36117 334-277-4074 SHERWIN WILLIAMS #2553 Dave Reid 3705 Malcolm Drive Montgomery, AL 36116 334-272-8181

Paint Studio UPTOWN ART: UNCORKED April James 2101 East Boulevard,Suite 110 Montgomery, AL 36117 334-356-8004

ERA WEEKS & BROWNING, INC. Sherry B. Weeks 8221 Old Federal Road Montgomery, AL 36117 334-215-4470 BONEFISH GRILL David Fettes 7020 Eastchase Parkway Montgomery, AL 36117 334-396-1770

Vending Services AUTOMATIC FOOD SERVICES INCORPORATED Dod Hamre 3013 Hayneville Road Montgomery, AL 36108 334-264-7336

Warehousing/Distribution MS COMPANIES James Willard 4919 Westport Boulevard Montgomery, AL 36108 334-450-6603

Writer MICHAEL DRIVER 3322 Norman Bridge Road Montgomery, AL 36105 334-324-9228

October 2013 Montgomery Business Journal

Ribbon Cuttings & Ground Breakings

HERE WE GROW AGAIN

COLONIAL LIFE BATES DISTRICT 644 Oliver Road Montgomery, AL 36117 334-452-1952 www.ColonialLife.com Frank Bates-District General Agent Insurance Companies/Services

ALABAMA RIVER REGION BALLET Festival Plaza 7981 Vaughn Road Montgomery, AL 36116 334-356-5460 www.riverregionballet.com Pricilla Crommelin-Ball-Executive Director Dance

QUITE THE PAIR 15 Mitylene Park Lane Montgomery, AL 36117 334-356-8745 Adrienne Bell-President/Owner Gifts & Specialty-Realty

BOLDLY GO, KNOWING WEâ&#x20AC;&#x2122;VE GOT YOUR BACK :KHQ \RX ZRUN ZLWK :DUUHQ $YHUHWW \RXÂ¶UH D FOLHQW RI WKH )LUP 7KDW PHDQV \RX KDYH PRUH SHRSOH ZLWK PRUH H[SHULHQFH ORRNLQJ RXW IRU \RX :KHWKHU \RX QHHG LQGXVWU\ H[SHUWLVH WHFKQLFDO SURÂ¿ FLHQF\ RU EXVLQHVV NQRZ KRZ RXU WHDP ZLOO EH WKHUH ZKHQ \RX QHHG XV /HWÂ¶V WKULYH WRJHWKHU 2XU YDOXHV KDYHQÂ¶W FKDQJHG EXW RXU ORJR KDV 9LVLW WKH 1(: ZZZ ZDUUHQDYHUHWW FRP

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Montgomery Business Journal October 2013

ECONOMIC INTEL

October 2013 Montgomery Business Journal

Unemployment Data Civilian Labor Force Area

AUGUST P 2013

Montgomery MA

JULY R 2013

Unemployment Rate AUGUST R 2012

AUGUST P 2013

JULY R 2013

AUGUST R 2012

169,247

170,124

169,332

6.90%

6.70%

8.20%

Autauga County

25,613

25,740

25,655

5.90%

5.60%

7.20%

Prattville City

16,192

166,292

16,193

5.10%

4.90%

6.30%

Elmore County

35,275

35,361

35,298

6.20%

5.70%

7.40%

4,069

4,107

4,093

12.20%

12.30%

13.80%

104,290

104,915

104,286

7.30%

7.10%

8.40%

93,790

94,385

93,836

7.10%

7.00%

8.30%

529,669

531,734

530,544

6.00%

5.60%

6.90%

90,091

90,343

90,626

8.10%

7.60%

9.40%

210,564

211,575

212,264

5.80%

5.60%

6.70%

90,277

90,835

91,090

6.00%

5.90%

6.90%

187,041

187,236

186,863

7.70%

7.50%

9.10%

87,383

87,515

87,311

8.10%

7.90%

9.50%

2,159,485

2,170,440

2,162,766

6.70%

6.60%

7.90%

155,971,000

157,196,000

155,255,000

7.30%

7.70%

8.20%

Lowndes County Montgomery County Montgomery City Birmingham-Hoover MA Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States

MA=Metropolitan Area. pPreliminary rRevised. Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2012 benchmark.

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

MONTGOMERY

BIRMINGHAM

Baltimore (BWI)

$431

$307

Boston (BOS)

$430

Charlotte, NC (CLT)

DESTINATION

MONTGOMERY

BIRMINGHAM

$264

Miami (MIA)

$384

$310

$272

$405

$314

Nashville (BNA)

$432

$220

$324

$244

$240

$286

New Orleans (MSY)

$494

$219

$250

Chicago (ORD)

$411

$288

$283

New York (JFK)

$361

$333

$298

Cincinnati (CVG)

$365

$493

$282

Orlando (MCO)

$446

$323

$259

Dallas/Ft Worth (QDF)

$366

$330

$188

Philadelphia (PHL)

$431

$242

$388

Denver (DEN)

$434

$446

$238

Pittsburgh (PIT)

$411

$438

$240

Detroit (DTW)

$417

$326

$282

St Louis (STL)

$404

$283

$324

Houston (HOU)

$412

$366

$352

Seattle (SEA)

$474

$499

$364

Indianapolis (IND)

$411

$479

$330

Seoul, Korea (SEL)

$1,439

$1,318

$1,352

Las Vegas (LAS)

$526

$411

$404

Tampa (TPA)

$404

$242

$322

Los Angeles (LAX)

$464

$568

$398

Washington DC (DCA)

$411

$222

$286

Memphis (MEM)

$429

$237

Montgomery Business Journal October 2013

ATLANTA

Date of travel: Oct. 15-20, 2013. Date of pricing: Sept. 8, 2013. Source: travelocity.com

ATLANTA

Sales Tax Collections AUGUST 2013

AUGUST 2012

YEAR OVER YEAR % CHANGE

YTD 2013

YTD 2012

YEAR OVER YEAR % CHANGE

Montgomery County

$3,152,144

$3,126,173

0.83%

$26,680,787

$26,505,910

0.66%

City of Montgomery

$7,337,378

$7,479,663

-1.90%

$63,196,650

$62,447,167

1.20%

$155,814

$148,809

4.71%

$1,303,642

$1,280,693

1.79%

$642,879

$570,807

12.63%

$5,193,029

$4,937,347

5.18%

$1,516,141

$1,463,424

3.60%

$13,454,492

$13,101,996

2.69%

Pike Road Autauga County Prattville Elmore County Wetumpka

* $501,797

* $450,234

11.45%

$4,052,532

$3,811,667

6.32%

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook. Note: YTD numbers are January 2013 through current month. * Did not receive this month's numbers.

Montgomery Regional Airport AUG 2013 Air Carrier Operations

AUG 2012

MONTH/MONTH % CHANGE

YTD (AUG) 2013

YTD (AUG) 2012

YEAR/YEAR % CHANGE

950

1,067

-11.0%

7,168

7,901

-9.3%

Total Operations

5,331

5,711

-6.6%

39,539

44,132

-10.4%

Enplanements

13,090

15,964

-18.0%

109,255

122,665

-10.9%

Deplanements

13,544

16,789

-19.3%

109,300

123,855

-11.7%

Total Passengers

26,634

32,753

-18.7%

218,555

246,520

-11.3%

Source: Montgomery Regional Airport (MGM) Dannelly Field

October 2013 Montgomery Business Journal

Building Starts Building Permits

Building Valuations

AUGUST 2013

JULY 2013

AUGUST 2012

AUGUST 2013

New Construction

$4,040,400

$21,451,200

$3,567,000

Additions and Alterations

$4,300,400

$3,084,000

$2,698,400

Others

$415,600

$338,000

$360,200

142

139

122

$8,756,400

$24,873,200

$6,625,600

Total

JULY 2013

AUGUST 2012

Source: City of Montgomery Building Department

Montgomery Metro Market Home Sales AUGUST 2013

JULY 2013

MONTH/MONTH % CHANGE

AUGUST 2012

YEAR/YEAR % CHANGE

STATEWIDE AUGUST 2013

Median Price

$145,000

$141,400

2.55%

$125,000

16.00%

$125,783

Average Price

$160,103

$153,006

4.64%

$145,194

10.27%

$147,608

2,978

3,004

-0.87%

2,818

5.68%

33,751

Months of Supply

8.2

8.8

-6.82%

10.1

-18.81%

Total # Sales

364

342

6.43%

279

30.47%

4,226

Days on Market

108

114

-5.26%

9.09%

168

Units Listed

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

Quarterly Reports QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

Energen Corp. (Alagasco)

$490.1M

$83.1M

$1.15

$0.61

$470.4M

$131.3M

hhgregg

$524.9M

(-$1.3M)

(-$0.04)

(-$0.15)

$489.9M

(-$5.7M)

NAME

Profit declined 37% Sales increased 7.2%

Brinker International (Chili’s)

$730.1M

$46.4M

$0.64

$0.74

$728.4M

$47M

Increased dividend 25% to 20 cents per share

Haverty Furniture

$171.1M

$4.8M

$0.21

N/A

$151.5M

$2.4M

Sales rose 12.8%

$1B

$76.5M

$0.58

$0.23

$980.9M

$20.6M

Opened Outback Steakhouse in Korea

STERIS Corp.

$367.7M

$32.3M

$0.54

$0.56

$337M

$30.4M

Revenue up 9%

Wal-Mart

$116.9B

$4.1B

$1.24

$1.25

$114.3B

$4B

$4.3B

$231M

$1.04

$4.2B

$240M

Revenue increased 2%

$238.3M

$11.1M

$0.77

$0.66

$223.7M

$7.7M

Revenue rose 6.5%

Dillard’s

$1.5B

$36.5M

$0.79

$0.74

$1.5B

$31M

Advance Auto Parts

$1.6B

$116.9M

$1.59

$1.48

$1.5B

$99.6M

Home Depot

$22.5B

$1.8B

$1.24

$1.21

$20.6B

$1.5B

Profit rose 17% Online sales up 10.5%

Bloomin’ Brands (Bonefish Grill, Outback Steakhouse)

Kohl’s Red Robin Gourmet Burger

U.S. comparable sales fell 0.3%

New store in Montgomery, N.Y., was company’s 4,000th

Best Buy

$9.3B

$266M

$0.77

$0.12

$9.3B

$12M

L Brands (Victoria’s Secret, Bath & body Works)

$2.5B

$178.9M

$0.61

$0.60

$2.4B

$143.6M

Profit surged 25%

Lowe’s

$15.7B

$941M

$0.88

$0.79

$14.2B

$747M

Profit jumped 26%

Target

$17.1B

$611M

$0.95

$0.96

$16.4B

$704M

Profit declined 13% Revene at stores opened at least 1 year fell 7%

American Eagle Outfitters

NOTABLE

$727.3M

$19.6M

$0.10

$740M

$19M

TJX (TJ Maxx)

$6.4B

$479.6M

$66.00

$0.63

$6B

$421.1M

Revenue increased 8%

Foot Locker

$1.4B

$66M

$0.44

$0.47

$1.4B

$59M

Opened 24 stores in quarter and closed 44

PetSmart

$1.7B

$93.4M

$0.89

$0.86

$1.6B

$78.5M

Montgomery Business Journal October 2013

Profit up 19%

Hyundai Sales VEHICLE

AUG 2013

AUG 2012

YTD 2013

YTD 2012

Accent

5,117

5,398

40,113

47,125

Sonata

16,917

19,624

138,830

158,014

Elantra

24,700

17,989

174,902

134,270

8,102

4,524

56,105

43,583

898

959

7,618

5,102

Tucson

3,886

5,376

30,042

33,271

Veloster

3,093

3,708

21,005

25,318

963

175

6,116

2,947

2,262

22,191

24,347

435

296

2,135

2,643

66,101

61,099

493,116

479,789

Santa Fe Azera

Veracruz Genesis Equus Total

Source: Hyundai Motor America

QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

J.C. Penney

$2.7B

(-$586M)

(-$2.66)

Dick’s Sporting Goods

$1.5B

$84.2M

$0.67

NAME

DSW

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

(-$1.07)

$3B

(-$147M)

$0.74

$1.4B

$53.7M

NOTABLE Comparable store sales fell 11.9% Sales increased 6.6%

$562M

$33.7M

$0.73

$0.80

$512M

$29.3M

Sales rose 9.7%

Hibbett Sports

$186.2M

$10.5M

$0.40

$0.38

$165.4M

$7.9M

Profit jumped 33%

Ann (AnnTaylor)

$638.2M

$35.6M

$0.76

$0.65

$594.9M

$30.7M

Approved $250M stock buy back

Aeropostale

$454M

(-$33.7M)

(-$0.43)

(-$0.24)

$485.3M

$71M

Sears Holdings

$8.9B

(-$194M)

(-$1.83)

N/A

$9.5B

(-$132M)

Gap (Banana Republic,

$3.9B

$303M

$0.64

$0.63

$3.6B

$243M

Comparable store sales declined 15% Revenue dropped 6% Increased quarterly dividend 33% to 20 cents per share

Old Navy) $2.5B

$213.1M

$0.98

$0.93

$2.3B

$182M

Profit increased 17%

Kirkland’s

Ross Stores

$97.1M

(-$577,000)

(-$0.03)

(-$0.10)

$91M

(-$2M)

Revenue rose 7%

Abercrombie & Fitch

$945.7M

$11.4M

$0.14

$0.28

$951.4M

$17.1M

Profit fell 33%

Stein Mart

$291M

$3.4M

$0.08

$280.4M

$2.3M

SEC investigating restated results

GameStop

$1.4B

$10.5M

$0.09

$0.04

$1.6B

$21M

Anticipates big sales increases from new game consoles

Dollar Tree

$1.9B

$124.7M

$0.56

$0.57

$1.7B

$119.2M

Revenue up 8.8%

Big Lots

$1.2B

$18.1M

$0.31

$0.25

$1.2B

$22.1M

Profit declined 18%

Fred’s

$482.2M

$3.3M

$0.09

$470.8M

$6.1M

Customer traffic and spending per visit were up

Krispy Kreme Doughnuts

$112.7M

$4.7M

$0.07

$0.16

$102.1M

$4.9M

Revenue at stores opened at least 1 year rose 10%

Zales

$417.1M

(-$8M)

(-$0.25)

(-$0.33)

$407M

(-$19.7M)

Williams-Sonoma

First profit in a fiscal year since 2008

$982M

$48.9M

$0.49

$0.47

$874M

$43.4M

Wet Seal

$137.2M

$958,000

$0.01

$135.3M

(-$12.4M)

Chico’s FAS

$649.5M

$43.6M

$0.27

$0.32

$641.7M

$53.4M

Profit fell 18%

$4.4B

$245.5M

$0.75

$0.74

$4B

$214.1M

Sales increased 11.3%

$232.5M

$14.2M

$0.51

$0.52

$260.3M

$23.2M

Same-store sales declined 16%

Dollar General Jos. A Bank Clothiers

Revenue rose 12% Plans to open 22 stores

October 2013 Montgomery Business Journal

Montgomery Business Journal October 2013

Post Office Box 79 Montgomery, AL 36101

MONEY-SAVING ENERGY EFFICIENCY IDEAS

MAKE YOUR HOME MORE COMFORTABLE WITH THESE ENERGY SAVING IDEAS.

For over 50 years Alabama Power’s rates have been below the national average, but there are still some easy things you can do around your home to save money and energy.

Replace a dirty air filter in your furnace. They hamper airflow, making your system work harder to keep you comfortable.

Proper insulation can save you up to 30% on your heating and cooling costs. Add more insulation if you are finding cool spots around your home.

Set your thermostat to 78 degrees or above in the summer and 68 degrees or below in the winter.

Turn the temperature down on your water heater if it’s over 140 degrees. Don’t go below 120 degrees to keep bacteria from forming in the dishwasher.

Scan the code or visit alabamapower.com/save for more seasonal energy savings ideas.

POWI-3266 EE Home.indd 2

8/27/13 1:07 PM