Aquila cuts Energy Trading
Aquila has trimmed back its business and left energy trading by the wayside. Nearly 1,200 employees of Aquila Merchant Services are expected to be cut as the trading company is removed from Aquila’s business core. The high capital required to maintain the business was too great according to the company. Aquila has been fighting with its credit-ratings to save further downgrades on its debt and has put other sections of its business on the market.

As majority owner, Aquila requested that its New Zealand-based energy distributor, UnitedNetworks Limited, be put up for sale. By the end of the year the company plans to sell $1 billion in nonstrategic assets to reduce debts and increase its credit standings.

Bankruptcy Finds Farmland
Farmland Industries filed for bankruptcy and has trimmed 103 management and administrative personnel. The company closed its 16 Arkansas convenience stores eliminating 180 positions after the May 31 filing, totaling nearly 300 individuals dismissed.

The company is now resized for the work it has ahead of it though further work-force reductions are possible, according to CEO Bob Terry.

U.S. Bankruptcy court has given approval for its filing and Farmland will be allowed to use $306 million debtor-in-possession financing to recover.

Farmland National Beef, a separate entity which is not included in the filing, hasn’t been affected by the layoffs.

Speedway Dollars Spreading
Two national companies are digging in for tourist dollars near the Kansas Speedway. The Great Lakes Companies, Madison, Wis., has broken ground on a Great Wolf Lodge in Village West. The resort will be four stories with log sides and 281 all-suite rooms, two restaurants, a 38,000-square-foot indoor waterpark and numerous other features. The resort is scheduled to open by spring 2003.

Cabela’s of Sidney, Neb., will open a new 189,000-square-foot retail store by Aug 15. It will be the second largest showroom for the company and is expected to employ 400 people and draw 3 million visitors annually.

Epiq Growth Recognized
Epiq Systems was again recognized as one of the nation’s fastest-growing companies by Fortune Small Business. The company was ranked #29, jumping up from its #71 spot on the list the year before. Epiq is also listed this year, for its third appearance, on Ingram’s Corporate Report 100 at #33 with revenue growth of 161.74 percent.

Sprint Stock Still Shaky
Affected by the difficulties other telecommunications companies are facing, Sprint’s stock continues to drop. PCS stock has reached a low of $3.50 after a high of $29.05 in the last year. FON stock has has dropped to $8.80 from a high of $24.60 in the last year. With accounting misrepresentations discovered in WorldCom damaging the industry, Sprint has assured stockholders that its accounting is complete and accurate.

H&R Block’s Record Earnings
H&R Block announced record earnings of $434.4 million for the 2002 fiscal year. The earnings grew 55 percent from $281.2 million the year before. Revenues totaled $3.3 billion. The strong growth was attributed to strong tax and mortgage business that is expected to continue through the next year. The company also announced the retirement of Chairman Frank Salizzoni, effective at the close of the annual meeting Sept. 11, 2002. The 10-director board will reduce to nine members after Salizzoni’s departure.

Cydex Products Approved
CyDex Inc., of Overland Park, an-nounced that it has received its first U.S. regulatory approval of a CAPTISOL-enabled drug, Vfend, made by Pfizer. CAPTISOL is a proprietary CyDex molecule that is designed to improve the solubility of a drug’s ingredients. Vfend has been approved in Europe and a second Pfizer product using CAPTISOL is undergoing registration.

Yahooz Polishes Its Stars
Yahooz is the first Kansas restaurant to receive the Distinguished Restaurant of North America Award for fine dining, joining only four others in the area.

CORRESPONDENT

Washington, D.C.
Death tax dies in time for reincarnation
The death tax, phasing out by 2010, was voted to be fully restored in 2011. The Senate vote to permanently repeal the tax received a 54-46 count in favor, but missed the total 60 votes needed to go forward.

A vote to ensure that tax increases in Congress are passed only by a two-thirds majority vote, a "supermajority", failed in the U.S. House. The vote came short of the two-thirds majority requirement also needed to pass a constitutional amendment. The amendment vote was 227-178.

Jefferson City
Senior Prescription Drug Plan falls short
Only half the expected seniors signed up for the SenioRx program. The plan,
available to residents 65 or older and with $17,000 or less in income, would allow Missouri to pay for roughly 60 percent of seniors’ generic drug costs. The state had anticipated 55,000 applications but received only 34,000, of which 7,000 are expected to be ineligible. State officials blame a small advertising budget.

Though the application deadline for 2002 ended on May 30, seniors who turn 65 between July 1, 2002, and July 1, 2003, may enroll within 30 days of their birthday. Open enrollment will be available again from Jan. 1 to Feb. 28, 2003.

Topeka
A depreciation deduction bonus
The federal economic stimulus bill, passed as the Job Creation and Workers Assistance Act of 2002, has provided a little extra tax relief for Kansas business owners. Businesses are now allowed to take an immediate depreciation deduction equal to 30 percent of the cost of new property in addition to the regular first-year depreciation deduction. As the state law automatically conforms to the Internal Revenue Code, the new depreciation deduction is carried over to the state level.

The deduction amount does not change with the tax adjustment, only that the deduction can be taken more quickly and won’t affect real property such as buildings.