June 8, 2009, Rite Aid Corporation announced it will offer $400 million aggregate principal amount of senior secured notes due 2016.
According to its Web site, the notes "will be unsecured, unsubordinated obligations of Rite Aid Corporation and will be guaranteed by substantially all of Rite Aid's subsidiaries."
This offering is part of Rite Aid's comprehensive plan to refinance its 2010 debt maturities.
Rite Aid also announced in April, 2009, that it will be closing its distribution center in Newnan, Ga., by the end of September, 2009, according to Reuters.
Friday, June 26, 2009
Case Study Chapter 6
This case study involved a highly respected judge of a small town. Judge Long was known for being harsh on drug offenders and child molesters. He even held out-of-towners without bond until their court hearing. The community trusted him to do a good and fair job at eliminating crime in their town.
What the public didn't know was that several of Judge Long's rulings, 39 in fact, had been reversed by the appellate court in less than three years.
Investigative reporter Charles Miller, of the Middleton Daily News, found out the judge seemed to be abusing his power. In one case, Judge Long dismissed a juror stating, "the trial court may exercise its discretion and replace any juror who is experiencing a great deal of anxiety."
When the defendant's attorney asked to bring the juror in to find out if that was the situation, the judge said, "No, I'm not going to do that."
The judge didn't speak with the media, so Miller caught him in the courtroom just before returning to his chambers and asked him about the reversals of several of his cases.
Judge Long was not pleased and asked Miller if he was the reporter who wrote stories about police brutality. He defended the police officers for risking their lives on a daily basis for their community.
Miller did not get an answer from Judge Long about the reversals, but reported the story on his findings anyway. The public was not happy. They knew the judge to be a fair and honest man. Miller and the Middleston Daily News were scrutinized for being "soft on crime."
However, the owner and publisher of the newspaper was behind Miller's reporting. "The Old Man" wrote an editorial about Judge Long's "arrogant self-aggrandizement and propagation of incompetence" career. Clearly, the Old Man wasn't fond of the judge's practices.
Public opinion of Miller, the newspaper and Judge Long changed quickly. Judge Long took a sudden leave of absence and returned to a private practice of criminal law.
The public does not investigate elected officials. They see only what is on the surface and vote accordingly. It is up to investigative journalists to reveal discrepancies in a so-thought "squeaky clean" official.
What the public didn't know was that several of Judge Long's rulings, 39 in fact, had been reversed by the appellate court in less than three years.
Investigative reporter Charles Miller, of the Middleton Daily News, found out the judge seemed to be abusing his power. In one case, Judge Long dismissed a juror stating, "the trial court may exercise its discretion and replace any juror who is experiencing a great deal of anxiety."
When the defendant's attorney asked to bring the juror in to find out if that was the situation, the judge said, "No, I'm not going to do that."
The judge didn't speak with the media, so Miller caught him in the courtroom just before returning to his chambers and asked him about the reversals of several of his cases.
Judge Long was not pleased and asked Miller if he was the reporter who wrote stories about police brutality. He defended the police officers for risking their lives on a daily basis for their community.
Miller did not get an answer from Judge Long about the reversals, but reported the story on his findings anyway. The public was not happy. They knew the judge to be a fair and honest man. Miller and the Middleston Daily News were scrutinized for being "soft on crime."
However, the owner and publisher of the newspaper was behind Miller's reporting. "The Old Man" wrote an editorial about Judge Long's "arrogant self-aggrandizement and propagation of incompetence" career. Clearly, the Old Man wasn't fond of the judge's practices.
Public opinion of Miller, the newspaper and Judge Long changed quickly. Judge Long took a sudden leave of absence and returned to a private practice of criminal law.
The public does not investigate elected officials. They see only what is on the surface and vote accordingly. It is up to investigative journalists to reveal discrepancies in a so-thought "squeaky clean" official.
Financial Disclosures for Alan Mollohan
Alan B. Mollohan did not seem to be affected by the harsh economy of 2008. According to his financial disclosure documents, Mollohan’s income from 2007 to 2008 increased by $11,500 to $39,800 mainly from rent and income from a property ownership and management. Some income also came from royalties. That is an 11 percent increase from one year to the next.
The documents indicated Mollohan’s his personal assets from several rental properties and investments increased by $250,100 to $500,000, a 4 percent increase.
Eun Kyung Kim, reporter for FloridaToday.com, said, “All members of Congress are required to file personal disclosure statements annually, but they are required to report their assets and liabilities only in broad ranges, rather than specific amounts.”
According to the Center for Responsive Politics, opensecrets.org, members of Congress make approximately $169,000 annually. During a time when the economy isn’t doing well, many Americans are struggling while political figures are comfortable, to say the least.
However, several of these political figures have been caught in what some might consider a scandal.
In 2006, Mollohan’s personal assets totaled more than $6 million, which was quite an increase from 2000 when his assets totaled less than $600,000, according to the Pittsburgh-Tribune Review.
Because of this, the congressman was under federal investigation in 2007 for "omitting or misrepresenting personal financial dealings on required disclosure statements," said the Pittsburgh-Tribune Review.
Ken Boehm, chairman of the National Legal and Policy Center said the complaint included "real estate purchases Mollohan made with people heading companies or organizations that received federal funds he earmarked."
The Pittsburgh-Tribune Review said in 2006, Mollohan explained "inadvertent errors" on his financial reports as appreciated real estate holding and an inheritance from his father in a share of a Morgantown hotel.
Mollohan’s financial disclosures for 2003, 2004 and 2005 were each amended for different reasons.
His 2003 financial disclosure form was amended to show half ownership with his wife for “HHM, LLC, and a partnership created for property, ownership and management in Bald Head Island, N.C.,” according to Legistorm.com.
In 2004, Mollohan received a loan from Don and Laura Kuhn of Fairmont, W.Va., in the amount of $35,000, which he amended his financial disclosure to reflect. The Mollohans’ and Kuhns’ were in a 50/50 partnership to invest in five lots of land on Bald Head Island, N.C., which were bought for resale.
Mollohan’s wife received payment and interest in 2005 for Building Revenue Bond of Kanawha County, W.Va. Mollohan said the bonds were not in his wife’s possession at the time they were redeemed, but he amended his financial disclose to include the income and interest.
Mollohan seems to be reporting the right numbers lately, but the Washington Post reported Mollohan said in an interview he was unapologetic and proud of the thousands of jobs he brought to West Virginia, stating, “Legally speaking, everything he has done to secure (the jobs) is “squeaky clean”.”
However, Mollohan said, "I would have done things differently." "It puts you in a position where people could say there's something untoward going on," he said, according to the Post.
While the “scandal” hurt Mollohan’s reputation in Washington, the Post reported residents of West Virginia welcoming Mollohan home with open arms. He even received a standing ovation at a meeting about a missing child alert system that his legislation had underwritten in Morgantown, W.Va.
Mollohan is still working toward bettering the state of West Virginia. The House of Representatives passed Mollohan’s appropriations bill June 22, 2009, to “strengthen the federal government’s commitment to prevent and fight crime,” according to his Web site.
It seems that Mollohan’s financial disclosure set back didn’t hurt his career. He is still working with Congress and has quite a few more bucks in the bank than most West Virginians.
Road Salt Update
MSNBC, USA Today and WTRF reported several states running out salt to ice their roads last winter. The sites interview public works personnel about the shortage and asked how they were trying to prepare for the very snowy winter.
I spoke with the president of the Salt Institute in Alexandria, Va., Dick Hanneman about the "shortage." He said there wasn't a shortage.
Hanneman said, "Nobody ran out of salt." In February and May 2008, Hanneman spoke at conferences and sent out press releases stressing preparation for the upcoming winter. He said states needed to buy early to ensure the amount of salt they could get. Also, he said when salt is bought pre-season, it is cheaper.
Last winter, Hanneman said states and cities were "panic-buying" road salt in anticipation of the rough winter ahead. That is what caused the price of salt to increase by as much as three times the average amount per ton. Hanneman suggested in the previously mentioned press releases states should buy salt early to avoid price increases. Apparently, no one listened.
There was enough salt for each state, Hanneman said, some states just did not get the full amount they wanted.
Hanneman said, "We should be in decent shape to prepare for it," referring to winter 2009/2010. He stressed if state departments would do as the Salt Institute recommended, there will be no problem with salt "shortages" this winter.
Saturday, June 20, 2009
Road Salt
Last winter was treacherous and so were the icy roads. Parts of the U.S. didn't even have enough road salt to cover every major highway. Several accidents were reported in the tri-state area.
USA Today reported in 2008 cities trying to stock up on road salt before snow came. With the cost of transportation and demand for salt high, and supply low, the report said the cost of a ton of road salt had doubled, and in some places tripled.
West Virginia experienced a shortage like many other states. Bob Whipp, district six engineer, said his company used to salt roads in Wheeling, W.Va., twice to speed up the melting process. However, last November his company only used the minimun amount recommended by the American Salt Institute.
The new stories about the shortage of salt are compelling enough, but why was there such a shortage? That's just what I'll ask the Salt Institute. Check back to find out.
USA Today reported in 2008 cities trying to stock up on road salt before snow came. With the cost of transportation and demand for salt high, and supply low, the report said the cost of a ton of road salt had doubled, and in some places tripled.
West Virginia experienced a shortage like many other states. Bob Whipp, district six engineer, said his company used to salt roads in Wheeling, W.Va., twice to speed up the melting process. However, last November his company only used the minimun amount recommended by the American Salt Institute.
The new stories about the shortage of salt are compelling enough, but why was there such a shortage? That's just what I'll ask the Salt Institute. Check back to find out.
Car Dealerships Much Better Off Than Last Summer
New-vehicle dealerships in the U.S. employ roughly 1.1 million employees, according to the National Automobile Dealers Association. NADA said car dealerships “generate millions of dollars of tax revenue for state and local governments.” With the recession and the demise of many car dealerships, the U.S. economy has weakened.
Just a year ago, the auto industry was in trouble and W.Va. was one of the states affected by high gas prices, according to New York Times’ Clifford Krauss. He said, “The combination of low incomes, high gas prices and heavy dependence on pickup trucks and vans is putting an even tighter squeeze on family budgets.”
Now, a year later, Krauss said the national average for gas is almost $2.62 a gallon. The gas price increase from that of early 2009 has not helped struggling Americans who are dealing with other issues, like unemployment due to the recession.
Car dealerships in W.Va., Ohio and Ky. have lost some business due to rising gas prices. David Adkins, sales and Internet manager for Turnpike Ford of Huntington, said the dealership hasn’t received any trucks on recent shipments. The dealership receives an allotment of vehicles based on their sales and since truck sales have declined, Turnpike Ford will receive only compact cars on their next shipment, Adkins said.
Jerry Cole, new-car sales manager at Glockner GM Superstore said when gas prices increase, customers bring in their truck or SUV for trade-in. He said he hasn’t sold many fuel-efficient vehicles, though, because when gas prices hit $3 a gallon, sales decline. “A lot of it is psychological,” Cole said. He and Kirk Gillenwater, sales consultant for Bedford South Point Ford, said customers still need their vehicles, but they have to get over the “first initial shock” of rising gas prices.
Gillenwater said in Appalachia, “trucks are used for lively-hood.” He said Bedford South Point Ford has sold, “a whole bunch of trucks.” Trucks are used more in W.Va., Ohio and Ky. than in other parts of the U.S., he said. However, he pointed out a dilemma the dealership has run in to recently.
He said rising gas prices have affected the dealership by lowering the resale value of vehicles, especially trucks. Gillenwater said a low resale value benefits his dealership when buying trucks at an auction. He can purchase the trucks for a low cost and if gas prices decline, he can sell those trucks at the estimated retail value. When dealing with trade-ins, however, Gillenwater said he loses money to his customers when gas prices are high.
Car dealerships companies do not lose much money on gasoline costs, though. Adkins said his dealership, Turnpike Ford of Huntington, keeps a quarter of a tank full in each car on its lot for test-drives. Other than that, the dealership doesn’t spend money on gasoline. Adkins and Cole said new vehicles shipped from manufacturers cost nothing to the dealership.
After a customer has purchased a vehicle, the dealership fills up the tank upon delivery, Cole said. There is also the cost of fuel to ship cars to houses or other dealerships, but the cost isn’t enough to worry about, according to Cole’s light tone.
Glockner GM Superstore has its own oil company, Glockner Oil. Cole said he uses the oil tank on site to fill the cars with gas. He said it is an expense to fill the tank, but takes out the hassle of driving to the nearest gas station. The vehicles on the Glockner lot get Glockner oil.
Krauss said rising gas prices in rural cities hurt not only the car dealership industry, but also consumers. Now, since prices aren’t soaring like they were, dealerships are beginning to rebound. Some are even staying afloat with recent car sales. But if gas prices increase quickly again, it looks close several more dealerships.
Just a year ago, the auto industry was in trouble and W.Va. was one of the states affected by high gas prices, according to New York Times’ Clifford Krauss. He said, “The combination of low incomes, high gas prices and heavy dependence on pickup trucks and vans is putting an even tighter squeeze on family budgets.”
Now, a year later, Krauss said the national average for gas is almost $2.62 a gallon. The gas price increase from that of early 2009 has not helped struggling Americans who are dealing with other issues, like unemployment due to the recession.
Car dealerships in W.Va., Ohio and Ky. have lost some business due to rising gas prices. David Adkins, sales and Internet manager for Turnpike Ford of Huntington, said the dealership hasn’t received any trucks on recent shipments. The dealership receives an allotment of vehicles based on their sales and since truck sales have declined, Turnpike Ford will receive only compact cars on their next shipment, Adkins said.
Jerry Cole, new-car sales manager at Glockner GM Superstore said when gas prices increase, customers bring in their truck or SUV for trade-in. He said he hasn’t sold many fuel-efficient vehicles, though, because when gas prices hit $3 a gallon, sales decline. “A lot of it is psychological,” Cole said. He and Kirk Gillenwater, sales consultant for Bedford South Point Ford, said customers still need their vehicles, but they have to get over the “first initial shock” of rising gas prices.
Gillenwater said in Appalachia, “trucks are used for lively-hood.” He said Bedford South Point Ford has sold, “a whole bunch of trucks.” Trucks are used more in W.Va., Ohio and Ky. than in other parts of the U.S., he said. However, he pointed out a dilemma the dealership has run in to recently.
He said rising gas prices have affected the dealership by lowering the resale value of vehicles, especially trucks. Gillenwater said a low resale value benefits his dealership when buying trucks at an auction. He can purchase the trucks for a low cost and if gas prices decline, he can sell those trucks at the estimated retail value. When dealing with trade-ins, however, Gillenwater said he loses money to his customers when gas prices are high.
Car dealerships companies do not lose much money on gasoline costs, though. Adkins said his dealership, Turnpike Ford of Huntington, keeps a quarter of a tank full in each car on its lot for test-drives. Other than that, the dealership doesn’t spend money on gasoline. Adkins and Cole said new vehicles shipped from manufacturers cost nothing to the dealership.
After a customer has purchased a vehicle, the dealership fills up the tank upon delivery, Cole said. There is also the cost of fuel to ship cars to houses or other dealerships, but the cost isn’t enough to worry about, according to Cole’s light tone.
Glockner GM Superstore has its own oil company, Glockner Oil. Cole said he uses the oil tank on site to fill the cars with gas. He said it is an expense to fill the tank, but takes out the hassle of driving to the nearest gas station. The vehicles on the Glockner lot get Glockner oil.
Krauss said rising gas prices in rural cities hurt not only the car dealership industry, but also consumers. Now, since prices aren’t soaring like they were, dealerships are beginning to rebound. Some are even staying afloat with recent car sales. But if gas prices increase quickly again, it looks close several more dealerships.
Wednesday, June 17, 2009
Gas Prices No Longer an Issue for Car Dealerships
After calling a few local car dealerships, I've found gas prices are no longer affecting their sales. Most dealers I spoke with said truck and SUV sales have been up this year. One dealer said large vehicle sales don't decline until gas prices hit $3 a gallon.
One way rising gas prices have affected dealerships is in the resale value of a vehicle. A sales consultant with Bedford South Point Ford said the value of a truck at an auction or dealing with a trade-in will not be what it was before gas hit close to $4 a gallon last summer.
He pointed out when the value of a truck at an auction is low, it is the best time to buy several because gas prices will go down and the demand for trucks will rise.
He also mentioned many residents along Appalachia use trucks for their lively-hood so the demand will stay steady in this part of the U.S.
A sales and Internet manager for Turnpike Ford of Huntington said when gas prices rise, Turnpike Ford actually has a high number of compact cars sales. Obviously, truck sales decrease for them as well when gas prices rise.
As far as receiving shipments of new cars from dealers, car dealerships don't pay the cost of those shipments. The dealer endures it.
There will be more to come about this story. But as for now, car sales seem to be steady or rising, recession or not!
One way rising gas prices have affected dealerships is in the resale value of a vehicle. A sales consultant with Bedford South Point Ford said the value of a truck at an auction or dealing with a trade-in will not be what it was before gas hit close to $4 a gallon last summer.
He pointed out when the value of a truck at an auction is low, it is the best time to buy several because gas prices will go down and the demand for trucks will rise.
He also mentioned many residents along Appalachia use trucks for their lively-hood so the demand will stay steady in this part of the U.S.
A sales and Internet manager for Turnpike Ford of Huntington said when gas prices rise, Turnpike Ford actually has a high number of compact cars sales. Obviously, truck sales decrease for them as well when gas prices rise.
As far as receiving shipments of new cars from dealers, car dealerships don't pay the cost of those shipments. The dealer endures it.
There will be more to come about this story. But as for now, car sales seem to be steady or rising, recession or not!
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