Hunt, Jones, Rutledge Can Savor Success

I’ve been inspired by recent developments of some of Arkansas’ most successful companies and businesspeople, to wit:r

J.B. Hunt Transport Services Inc. in Lowell turned out to be a sleeping stock giant in the aftermath of the recession.r

Adjusted for its Sept. 2 two-for-one stock split — the first split since 1992 — the company’s 52-week range is $11.61 to $28.74. That’s nearly a 150 percent increase, and the trucking giant justified its stock momentum last week when it reported that third-quarter earnings nearly doubled year-over-year.r

The trucking industry was in the tank, and smaller truck lines went under. J.B. Hunt Transport, which had its struggles like the rest of the industry, was clearly positioning to capitalize as the economy picked up steam and companies were finally rebuilding their inventories. The soft labor market didn’t hurt either in terms of finding drivers.r

J.B. and Johnelle Hunt can’t be accused of capitalizing on insider knowledge. They sold off about $60 million of stock last year in the split-adjusted $12.50-$14 range. With this year’s run-up, they missed out on potentially another $70 million in gains.r

But with holdings of another 17 million shares valued last week at $446 million, they still have plenty to smile about.r

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North Little Rock native Jerry Jones has taken his licks lately regarding investments and losses through the schemes of the late David Howell.r

But the Sept. 15 edition of Forbes, which features its annual valuations of National Football League teams, reminds us he’s still one of the shrewdest businessmen you’ll find.r

Recall that in 1989 he paid $150 million for the Dallas Cowboys, which was losing $1 million a month. The organization is valued today as the second-most valuable franchise at $851 million, with $198 million in annual revenue, $52 million in operating income and a 26 percent profit margin.r

Jones’ ratio of debt to value is just 12 percent, compared with a whopping 70 percent for the Washington Redskins, which edges out the Cowboys with a $952 million valuation. But the Redskins’ assets also include their stadium.r

I noticed in the annual “Forbes 400 Richest People in America” rankings that Jones disputed the magazine’s estimate of $950 million for his net worth, which placed him at No. 283 on the list. He says it’s understated because his oil, gas and real estate holdings are worth more than the magazine gives him credit for having. Jones is one of few guys on the list who actually enjoys the recognition of his financial success, and you can bet he intends to keep climbing.r

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Seemingly out of the blue, First Security Bancorp of Searcy is the third-largest banking holding company based in Arkansas.r

The news that First Security will acquire First National Bank of Springdale from First Tennessee Corp. of Memphis is eye-catching. It’s a $330 million bank that thrusts First Security into a much stronger position to be a big player in Northwest Arkansas and put a dent in the dominance of Bentonville-based Arvest Bank.r

At $1.8 billion in assets, First Security was fairly low-key until three years ago. Suddenly it was expanding statewide in banking and diversifying with the acquisition of the venerable Crews & Associates brokerage firm.r

With his bank shopping spree and $23 million investment in downtown Little Rock that’s under way, Chairman and CEO Reynie Rutledge is going to mess around and ruin his reputation as being fairly tightfisted with his money.r

I remember his college roommate, Stephens Inc. COO Curt Bradbury, telling me how frugal Rutledge was. Surely neither of them could have imagined that Rutledge’s 1977 purchase of the $46 million First Security Bank in Searcy — advised by Bradbury — would evolve into a $1.8 billion operation. r