New radio stations, auto dealers bump crain to no. 27.

AFTER PURCHASING SEVERAL radio stations, in vesting in additional real estate and acquiring a car dealership last year, Grain Management Group LLC got a $72 million revenue boost in 2002. The Little Rock company increased its revenue from $140 million in 2001 to $212 million last year and catapulted it from No. 44 to No. 27 on this year's list of Arkansas' largest privately held companies.

Larry Grain Sr., who heads the management company, said revenue increased significantly after a subsidiary, Grain Investments LP, acquired radio stations KWCK-AM/FM (1300 and 99.9), KKSY-FM (107.1), KAWWAMLFM (1370 and 100.7) and KSMDFM (99.1) in White and Independence counties. Federal Communications Commission fillings list the price, tag at $2.65 million for the stations.

Crain said his company will continue to increase the stations' signals and coverage, areas and make several capital improvements in hopes of increasing station revenue another 3 0-40 percent this year.

Crain Management sold much of its automotive parts business to O'Reilly Auto Parts of Springfield, Mo., in 2000, allowing the company to invest the money elsewhere. It also allowed Grain to exit the resale parts market that was becoming increasingly saturated, he said.

"For us to compete m that market, we would need to be a public company. We weren't prepared to do that, nor do we want to," said Grain, whose companies employ about 450.

Crain instead decided to pursue a business where competition .is limited, so he purchased the radio stations from Caldwell Broadcasting LLG of Searcy.

Crain Investments purchased Buick, Pontiac and GMG dealer Jodie Brown Motors Inc. of Conway last year for $30 million, which added to the revenue total. And Grain said dealerships that were purchased in 2001 also "had a nice increase."

Crain wouldn't specify how much he expects his revenue to grow in 2003. Instead his eyes are on the company's overall profitability;

"We're not as revenue-conscience as we are profitability-conscience," he said.

And how much profit he hopes to make is highly confidential, he said.

Crain expects to acquire more auto dealerships this year and make them profitable, but he wouldn't say how many or which ones are on his wish list. He'd also like to diversify the auto makers he franchises because "all manufacturers don't perform well all the time."