Arkansas' Public Companies

Arkansas Business, July 30, 2001

The company reported record net income in 2000 of $296.8 million, $6.56 a diluted share, compared to net income in 1999 of $119.7 million, $2.66 a diluted share, For the three months ended March 31, revenue rose 17 percent to $1.19 billion. Net income before accounting changes rose 99 percent to $97.8 million in first quarter of 2001.

The improvement primarily arose from record earnings from the company's exploration and production operations, which amounted to $278.3 million in 2000 compared to $121.2 million in 1999. Higher sales prices for both crude oil and natural gas were the principal reasons behind the higher exploration and production earnings.

Murphy has made big gains since its alliance with Wal-Mart Stores Inc. to provide gasoline to the giant retailer's Sam's Club operations. The Murphy-Wal-Mart partnership has grabbed an ever-increasing market share by offering cut rates on gasoline to bring traffic to its stores.

Murphy's stock traded in the mid-70s to the mid-80s throughout May.

NATIONAL HOME CENTERS INC.

THE INVASION INTO Arkansas by national home-improvement chains like The Home Depot and Lowe's has all but forced National Home Centers out of the retail business.

Based in Springdale, National Home Centers Inc. announced in 1997 that it was restructuring, gearing business toward contractors and away from retail sales. The company, which sells primarily building materials, has continued in that vein ever since, closing several of its retail stores and basically operating eight lumber yards throughout Arkansas. A small retail store is attached to each of the lumber yards, but they're considerably smaller than the warehouse stores National operated in the mid-1990s.

For the first time in five years, National had a net profit in fiscal 1999. 2000 was also a profitable year for the company, but net income dropped from the 1999 level.

National said net income for the fiscal year ending Jan. 31, 2001 (fiscal 2000) declined by 79.7 percent from $1.12 million in fiscal 1999 to $226,000. That's a decrease from 16 cents per share to 3 cents per share.

Net sales for the fiscal year decreased by 12.2 percent from $110.0 million in 1999 to $96.6 million in 2000. Comparable sales for stores open more than one year also decreased by 12 percent for the same period.

For the year, the company's revenues consisted of 79 percent to professional contractors and 21 percent to retail customers.

Dwain Newman, National's chairman and CEO, cited icy weather that slowed construction projects as a primary cause for the decrease in sales.

The sales slump continued into the first quarter of 2001, which ended April 30. For that period, National saw sales decrease from $26.6 million in the comparable quarter of 2000 to $25.1 million. Comparable store sales decreased by 5.5 percent during the same period.

Net income for the first quarter was $209,000, or 3 cents per share, compared with net income of $264,000, or 4 cents per share in the first quarter last year.

P.A.M. TRANSPORTATION SERVICES INC.