01/27/2012

$160 million in insurance rebates due by August

 The U.S. Health and Human Services Department today rejected Texas’ effort to phase in federal standards requiring insurers selling health insurance to individuals to pay at least 80 percent of premiums in medical-related expenses. As a result of the decision, Texans who purchased those policies last year will receive $160 million in total rebates from the 22 insurers who did not meet that standard. A dozen of the 34 insurers active in the state met or exceeded the 80 percent threshold.

Gary Cohen, director of oversight for HHS, said the new standard, part of the Affordable Care Act passed in 2009, will not destabilize the state’s market for individual health insurance, which he termed “very robust.” The new standard, called the medical loss ratio 80/20 rule, went into effect Jan. 1, 2011. The rebates, which apply to policies sold last year, are payable in August, said Cowan.

The largest rebate, $89.6 million, will come from Blue Cross Blue Shield, by far the state's largest writer of individual health policies with about 55 percent of the market. That comes to an average of about $220 for each of the insurer’s 407,187 covered lives. Cowan said HHS has now denied 10 states’ requests for a waiver from the rule, while at least partly granting six. Two others are pending.

-- Jim Fuquay

 

Fort Worth-based D.R. Horton posts fiscal first quarter profit

Increased sales netted Fort Worth-based home builder D.R. Horton a $27.7 million profit in its fiscal first quarter that ended Dec. 31, the company said Friday.

The profit compares to a loss of $20.4 million for the same quarter a year ago.

Chairman Donald Horton said the company is off to a strong start.

"We were profitable in our first quarter and are focused on being profitable each quarter and for the entire fiscal year," he said in a statement. "Our net sales orders, homes closed and sales order backlog all increased by double-digit percentages over the prior year quarter."

Homebuilding revenue for the first quarter of fiscal 2012 totaled $885.6 million, compared to $767 million in the year ago quarter, the company said. The company closed the sale of 4,118 homes, compared to 3,637 homes in the year ago quarter.

Sales orders also grew slightly. In the quarter, orders totaled 3,794 homes, compared to 3,363 homes in the year ago quarter, the company said.

_ Sandra Baker

01/26/2012

Cash America earnings up in fourth quarter

Fort Worth-based Cash America International said it earned $37.8 million, or $1.18 a share, on revenues of $463 million in the fourth quarter. Earnings were short of Wall Street's consensus estimate of $1.23 a share, but revenues topped analysts' forecast of $436 million. The shares (ticker: CSH) of the nation's largest pawn shop operator were up about 1 percent in early, active trading. Cash America said growth in its consumer lending portfolio was offset somewhat by higher marketing costs and higher additions to its loan-loss reserve, a cushion against future bad debt. Merchandise sales during the holiday selling season were strong but carried lower margins.

-- Jim Fuquay

D.R. Horton sets aim on move-up market

Fort Worth-based homebuilder D.R. Horton, facing a stabilizing U.S. housing market, aims to move up the food chain in 2012. "We dominate the entry-level market. Our goal is to take that cost structure and dominate the move-up market," Chairman Don Horton told shareholders at the company's annual meeting today in Fort Worth. D.R. Horton is the nation's largest homebuilder by volume.

-- Jim Fuquay 

01/25/2012

Sugar company leases distribution space in Grand Prairie

Boise, Idaho-based Amalgamated Sugar Co., among the largest beet sugar producers in the U.S., has leased 154,330 square feet for a distribution facility in Grand Prairie.

The company had used a third-party provider for its distribution here, but is now bringing that work in-house, the company said. The company’s manufacturing is done at plants in Idaho and shipped to commercial users.

The space, 701-721 S. Parkway Drive, is in the Parkway Distribution Center in the Great Southwest Industrial District. The company expects to be operating from the facility in the spring, said Noel Hutcheson with Colliers International, who represented the tenant.

The building has had some temporary tenants over the years, but has been largely vacant for some time, Hutcheson said. The new lease is a boost for the Great Southwest Industrial District submarket, where vacancy at warehouses and other distribution facilities has been about 13 percent, he said.

The property is owned by Chicago-based First Industrial Realty Trust. Mark Graybill and Donnie Rohde with Lee & Associates represented the landlord.

Ashley Smith with Colliers also represented the tenant.

_ Sandra Baker

First Cash reports record financial results

Arlington-based First Cash Financial Services said today it set records for revenue, profit and earnings per share during the last three months of 2011 and also for all of 2011. It also reiterated its earnings outlook for 2012 of a rise of 18 to 20 percent. The operator of pawn shops and other consumer lending services, the majority in Mexico, said it earned $21.5 million, or 70 cents a share,  in the fourth quarter on $146.5 million in revenues. It earned $77.8 million, or $2.53 a share, on $521.3 million in revenues for all of 2011.

The company said it expects to open 80 to 90 new stores in 2012, in addition to a 29-store chain in Mexico it acquired earlier this month. Of the total 110 to 120 stores it expects to add this year, more than 100 will be in Mexico, First Cash said. The aggressive expansion will trim earnings by about 4 cents a share, given the six to nine months it takes a new store to become profitable. Its shares (ticker: FCFS) were up about 2 percent in early trading.

-- Jim Fuquay

 

01/24/2012

Walmart, neighborhood reps, homeowners, parry over proposed Fort Worth store's design

Representatives for Walmart and neighborhoods met again tonight to try and hash out disagreements over the design of a proposed Walmart Neighborhood Market in the middle of Fort Worth's Hemphill/Berry Urban Village.

In a community meeting at the Travis Avenue Baptist Church South Annex -- the building Walmart has under contract, with plans to raze and build a new Walmart Neighborhood Market, pending a zoning Wmtchange it's seeking -- Walmart's design consultants presented their latest plan, which they recently rolled out to the Fort Worth Zoning Commission. Because the plan included fresh changes that hadn't been presented to the neighborhoods, the commission put the case off for a month to give Walmart and the neighborhoods time to meet. Click here to read our previous coverage.

"It's a good store, it's a catalyst," Tom Galbraith, representing Dunaway, a Fort Worth firm that Walmart is working with on the case, offered to the groups.

Walmart is on top of meeting the objective criteria for the rezoning it's seeking. It's still tinkering with whether it has the right percentages of clear windows on the Berry Street side of the building, which is at the southwest corner of Berry and Hemphill. Tonight, it learned from city staff at the neighborhood meeting that its plan for the Hemphill side of the building might not meet minimum masonry requirements.

But more broadly, the site is in the middle of the city's Hemphill-Berry Urban Village and the Zoning Commission and ultimately the City Council could hold the case up on the question of whether Walmart's plan fits the vision of the Urban Village.

Even with Walmart having made concessions already -- its latest plan (see the top picture) includes more glass and a greater orientation of the building toward Hemphill -- neighborhood leaders want a stronger exterior design that better fits the surrounding neighborhoods and includes lots of pedestiran-level transparent glass that highlights activity inside the store, and draws patrons in.

"We want a store, but we want it to comply with the Urban Village," Fernando Florez, head of two of the neighborhood groups re-iterated tonight.

A sticking point hashed out tonight: Walmart's plan for the Hemphill side of the building includes exterior opaque glass at eye level, because tall produce cases are on the interior side of wall, and Walmart wants to stick with its store prototype. A city staffer questioned whether walking outside the Hemphill Street exterior wall would be like traversing "a very dark corridor" at night.

Rick Kubes, representing the Berry Street Initiative, said if the neighborhoods and city give in and make concessions from the Urban Village plan for the Walmart store, then the neighborhoods will be vulnerable to more requests for more exceptions should other developers come calling.

"Once you set the precedent for this corner, then you've got problems over here," Kubes said.

Walmart had some vocal support at the meeting. "I think this is a good layout, and I would love to see it here," one man said. "This is a good working model," said another.

One woman noted that redevelopment has been very slow to come east on Berry Street, for all the discussions that have occurred over the years. "I don't appreciate someone telling me what I can and cannot have because of a vision," she said. With City Councilman Joel Burns having quietly walked into the meeting and sat toward the side of the room, another man asked for a show of hands in support for the project as-is, so Burns could see. Several hands went up.

Scott Nishimura

Del Frisco's seeking to raise $100 million, sees opportunities to add restaurants

Del Frisco's Restaurant Group, LLC, filed to go public today, saying it expects to raise up to $100 million.

The company, based in Southlake, said it will use the proceeds to repay debt, sever a management agreement with an affiliate of its controlling shareholder, and for working capital and other general uses.

Del Frisco's said it has not yet been deternined how many shares will be offered, how many shares may be sold by the equityholder Lone Star Fund, or what the price range will be.

Del Frisco's said it currently operates 31 restaurants in 18 states under the Del Frisco's Double Eagle Steak House, Del Frisco's Grille, and Sullivan's Steakhouse names. The company recorded revenues of $186.4 million for the four quarters that ended Sept. 6, and had 3,227 employees as of that date.

The company said it sees opportunities to add three to five restaurants annually, including one Double Eagle Steak House and two to four of the other restaurants.

"Our operating model has proven successful across a wide variety of geographic and demographic markets since our establishment more than 30 years ago," the company said in a federal filing.

- Scott Nishimura

 

Kohls to open DeSoto distribution center and will hire 200 workers when it opens this summer

Kohl’s Department Stores said today it is buying property at Interstate 35 and Centre Park Boulevard in DeSoto where a 951,000-square-foot distribution center to support the firm’s e-commerce business in the central and Midwest U.S. is being built.

The facility when it opens this summer will immediately employ about 200 workers, but that will grow to about 400 full- and part-time workers during the next three years, the company said.

Hiring will begin March 1. Hourly and management positions will be available.

Kohl’s said it will close the real estate deal when the building is completed.

"This new facility will ensure that Kohl’s is able to accommodate the tremendous growth of our Kohls.com business," said Ken Boning, Kohl’s executive vice president of store planning and logistics.

Kohl’s has 84 stores in Texas. When the DeSoto facility opens it will have 13 distribution centers in the U.S., four of them for Kohls.com. The other centers serving Kohls.com are in San Bernardino, Calif.; Monroe, Ohio and Edgewood, Md.

The retailer said sales from Kohls.com has increased 50 percent since 2010 and that it expects sales to reach $1 billion this fiscal year.

Job applicants are being directed to Kohlscareers.com for more information and a list of available positions.

_ Sandra Baker

 

01/23/2012

Walmart schedules community meeting on South Fort Worth zoning case

Walmart has scheduled a community meeting, 6 p.m. Tuesday Jan. 24 at the Travis Avenue Baptist Church South Annex, Hemphill and Berry streets, to discuss the company’s proposed rezoning of the site for a Walmart Neighborhood Market. The city's Zoning Commission recently put the case off for a month to allow Walmart representatives and neighborhood associations time to work out disagreements on the design. - Here's the Star-Telegram's most recent coverage.

- Scott Nishimura

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