Franklin Building Supply - May 2022

Franklin Building Supply - May 2022

OWNER -TO- OWNER www.franklinbuildingsupply.com | 208-514-2200 | 9222 W. Barnes Dr., Boise, ID 83709 SUMMER 2022

AN AMBITIOUS YET ACHIEVABLE VISION

Back in March, I wrote here about our new 2026 Vision — an ambitious but very achievable vision built on the success and progress we made under the 2021 Vision we wrapped up at the end of last year. As part of our new 2026 Vision, I want to announce an exciting new profit-sharing program that will directly benefit most of our employees if we work together to meet or exceed our net income targets each calendar year. Let’s talk first about what the term “net income” means. Net income is simply a calculation of what’s left over at the bottom of our financial pyramid, once we collect invoices from customers and pay for everything required to operate our business.

inventory, operating and labor costs as well as how safe, productive, and efficient our employees are throughout the year.

Our employee-owners have more influence over our net income than any other factor. Aside from the cost of goods, payroll costs are our biggest expense — and the better our teams

are (regarding safety, productivity, and efficiency), the more net income we will generate. It’s difficult to do, but it’s simple to understand, and we have the team to work safer and smarter than anyone else in the business if we accept the challenge and embrace the hard work. So, starting this year as part of our 2026 Vision, we are implementing a profit-share program whenever we finish a calendar year with 8% or more profit. Employees who started before Oct. 1 — and are still employed on the date the profit share is paid out (usually in the following February) — will be eligible unless they already have a typical incentive or commission plan as part of their compensation. Both hourly and salaried employees will be eligible, and the payout will be prorated for employees who started during the calendar year. If we meet or exceed the 8% profit threshold in 2022, we forecast that the payout would be more than $1,000 per eligible employee. The more our profit exceeds 8%, the higher the forecasted payout would be for each eligible employee. Accomplishing our 2026 Vision is nearly completely dependent on how you (individually) and we (collectively) perform our work every day, in every interaction, and in every location. If we work safely, are smart, and continue to be efficient — if we grow, learn, develop, and improve faster than anyone else in our industry — we will win and we will win big. It’s time to accomplish what few dream of in this business, make our business better, create better outcomes for customers, and create better financial rewards for our employee-owners both now and into retirement. The opportunity is ours. The choice is ours. Let’s choose to accept the challenge, embrace the hard work, and reap the benefits.

Sales (what we collect from customers for products and services we sell them)

Cost of Goods Sold (what we pay vendors for materials or labor for install)

Payroll Costs (employee wages, benefits, and taxes)

Overhead Costs (items like rent, fuel, and insurance)

Net Income

At the end of each calendar year on Dec. 31, we calculate how much net income we generated for the year. In 2021, we generated over $28,000,000 (of net income) or 7.6% of our more than $371,000,000 in sales. That means that in 2021 we retained 7.6 cents in profit for every dollar we generated in sales. What our net income will be in 2022 depends on how much we sell, how well we collect, how well we manage

–Levi Smith

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HIGH FIVE SELECTION FOR APRIL

We Make Building Easy: Jill Flabel (Boise Finish) to Danny Hyman (Boise Finish)

in the warehouse. As we started to walk outside, he said, “Hey, I need you to please put hi-vis on.” Not being in the field every day, I definitely forget, and I appreciated him looking out for my safety.

I would like to give Danny a high five for his exceptional customer service.

I asked him who he was, and he said Jared Evans. Kudos to him.

A builder came in looking for Spencer and Paul. They were unavailable, so Danny jumped right in, pulled up his plans, and noticed that the pricing and material would need to be updated — which we all know is so important these days. He put the customer at ease letting him know he could take care of him.

Strive: From Jake Weaver (Design Innovations) to Chris Fragerogia (Design Innovations) Chris is a rock star! I work with him on a regular basis, and he is always eager and happy to help. He is constantly thrown to the wolves and always jumps in happily. Most of my contractors who work with him have called me directly to tell me how great he is to work with. Recently, we had a crew on the site and a superintendent had a bad day. The super decided he would take it out on some of our guys. Chris jumped right in front and said, “Give me the brunt of that. Don’t take this out on our guys. They don’t deserve to be treated this way; they are here to do what we’ve asked them to do — and that’s it.” That shows a lot about his integrity and his character. I’m glad he is on our team. Wow: From Brian Tucker (Design Innovations) to Nate Cripe (Design Innovations) I would like to acknowledge a member of the Franklin Tile install team, Nate Cripe. I’m sure his tile work is outstanding, but this high five is for being a constant, positive help in the warehouse at D.I. Whenever he has the time available, he will come and check in to see if there are any projects that he may be able to complete for us. During our most recent time of being short staffed, Nate accepted many tasks presented to him and completed them quickly, as directed, with an outstanding attitude. He has been such a great help that I felt it absolutely necessary for his efforts to be recognized companywide. Thank you so much, Nate! I truly appreciate you. You’re a good man to have on our team.

Guide: From Payton Ake (Boise) to Tim Prendergast (Boise)

I wanted to give a high five to Tim Prendergast. He’s been a yard employee — load builder — for quite some time now. He’s always been a solid employee with a daily good attitude. He’s steady and accurate in the work place, knowledgeable, and is an all-around good guy to work with. Recently, he took over a new role in the yard as the hardware puller — something that was done by a previous employee for many years. Ever since he took on his new role, he’s excelled even more! He is incredible at his new position. He is regularly communicating with product managers when he pulls product. When it’s low on inventory, he keeps me informed on how much space he has for incoming items and how much he’d like to have on hand. Every bit of communication you can imagine, he’s on it! I’m never blindsided or surprised with any items he has anything to do with. I manage around 7,000 products and having someone who provides this level of communication and attention to detail is amazing and so helpful.

So, high five to Tim! He’s a perfect example of an A Team Player.

Safety: From Rayanne Roche (Twin Falls) to Jared Evans (Jerome)

I just stopped in Jerome to meet up with John Patterson to pick up some cabinets. A guy approached me and asked if we needed help. I told him we were there to get cabinets, and he said they were outside

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www.franklinbuildingsupply.com

SUMMER FUN IS BACK!

It has been three years since we could all get together for our company dinners. A good number of you have never had the experience because you came to FBS after the summer of 2019. The rest of you have been asking when we can do this again. Well, the time has arrived! We call these Shareholder Dinners because we talk about our employee ownership at the event. It is important to know that all employees get an invitation to attend — you do not need to be a shareholder yet! And everyone gets to bring a plus-one. We share a nice meal and laugh a lot. It is an evening to relax with your friends and coworkers. Get a babysitter (sorry, no kids at dinner) — and join the fun. You will receive an invitation, and we will take RSVPs, but here is the schedule so you can find the date for your location!

• Monday, July 11: Elko

• Wednesday, July 13: Jerome, Gooding, Jerome Truss

• Monday, July 18: Bellevue

• Thursday, July 21: McCall

• Monday, July 25: Twin Falls and Burley

• Tuesday, July 26: Pocatello

• Tuesday, June 28: Fruitland

• Wednesday, July 6: Caldwell and Boise Truss

• Thursday, July 7: Boise, Boise Supply and Jaguar

JUNE ANNIVERSARIES

JUNE BIRTHDAYS

LOCATION - EMPLOYEE - YEARS

Robert Forbes Branttin Flowers Bren Hinkle Kevin Farnworth Dan Albrethsen

Manuel Montes Becky Waitman David Armstrong Evan Davis Rob Gowans Chad Brown Jacob Daigle Melvin Paniagua Zac Luker Cole Velasquez Doug Anderton Ron Schwartz Adam Hyer Ashley Wolters Jaime Garcia Jr. Oliver Ott Susan Mowers Dave Parrish

1 2 2 2 3 3 3 3 4 5 5 5 5 5 5 7 8 8 8 9 9 9

12 13 13 13 13 14 14 14 14 17 19 20 21 21 21 21 21 22 22 23 24 24 25 26 27 28 28 29 29 30 30

Twin Falls Fruitland Jerome

Andres Hernandez Austin Halley Austin Rydalch David Malang David Senner Dennis Strain Jesse Thomas Jessica Gardiner Juan Madrigal Lydia Cuellar Michael Angier Michaela Hawley Rebecca Hutchinson Sarah Uttenreuther Zachary Velasquez Adam Hinshaw Betsy Hayhurst Brandon Hodson Duane Dowell Logan Dixon Sean Armstrong Todd Durham Wyatt Hopkins Coltin Millward Eduardo Granados Matthew Derbidge Oscar Flores Ron Esta Stephen Campbell Steven Prophet

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 4 4 4 4 4 4 4

Boise Boise Jerome Truss Twin Falls Boise Twin Falls Elko Pocatello Boise Fruitland Pocatello Jerome Truss Caldwell Boise Boise Truss Caldwell Caldwell Boise Burley Boise Supply Bellevue Caldwell Jaguar Sawtooth Door McCall Boise Supply Boise Boise Jerome Truss

Tylor Cloyd William Uttenreuther David Steward Justin Osterhout Mitchell Thompson Ron Schwartz Simitrio Martinez Tony Dustin Brian Christensen

4 4 5 5 5 5 5 5 6 6 6 6 6 6 7 8 8 8 9

Boise Boise Twin Falls Jerome Truss Bellevue Boise Truss Bellevue

Deb Parrish Rod Skiftun Sandi Palmer

Andrew Mannion Jennifer Malone Jim Hicks Juan Martinez Juan Sandoval Logan Farnworth Robert Williams Garrett Hays Alek Smith Drew Ruffridge Stephen Buffat Jason Koch Judy Baird Kalen Thompson Kevin Curtis Lowell Urwin Andres Hernandez Caleb Hoobery

Cherie Littleton Devyn Williams Gordon Latimer

McCall Jerome

Boise Boise Caldwell DDF Boise Jerome Truss Boise Boise Boise Boise Boise Pocatello Boise Truss Boise Boise Truss Jerome Truss

John Ward Kyle Grant Fred Narbonne Jessica Vineyard Juan Carlos Rodriguez Mike Jones Christopher Brethauer

Mario Riccardi Robert Herman Denise Sellers Reuben Gutierrez Sr. BreAnne Penrod

Mark Bizallion Art Hazelbush Earl Purser Wayne Luker Al Garcia Chris Trammell Jim Hicks Steve Bayne Jimmy Shaffer Shane Lee

16 19 19 19 20 24 29 30 33 44

10 10 11 11 11 11 12 12 12

Wyatt Lish John Beck Naomi Kress Tate Anderson

Kirk Hadley Scott Lovell Jourdon Howes Justin Brown Larry Dille

Gabriel Doglietto Steven Prophet Dirk Redfern Pedro Duran Torrez

Boise Boise

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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

www.franklinbuildingsupply.com 9222 W. Barnes Dr. Boise, ID 83709

1 2 3 4 I NS I DE

An Ambitious Yet Achievable Vision

High Five Selection for April

Summer Fun Is Back! June Birthdays and Anniversaries

Employee Spotlight

IN THE SPOTLIGHT: WILLIE COWAN

An Exemplary Member

Franklin Building Supply is a great team of individuals; they work hard day in and day out to help us deliver excellent customer service. It’s always our employees who exemplify and stand behind our morals and values and provide the very best for our customers. Willie, the shop lead for production at the Boise Finish location, has been with Franklin Building Supply since July of 2017 — gosh, how time flies! He is a true team player and one of those people who is a joy and honor to work with. He is passionate about his job and that certainly reflects in his work. “My favorite part about my job is being able to help my fellow employees to learn new skills. I also enjoy providing positive leadership to the environment in which we work,” Willie tells us. On the flip side, Willie also shares that the most challenging aspect of his career is the obstacles that need to be overcome throughout the work day. “It’s so rewarding when a resolution is found at the end,” Willie says. LEAN, a series of five principles designed to improve efficiency in the workplace, plays a large role in Willie’s day-to-day duties by portraying a positive and structured approach toward supervision.

“Throughout every workday, I do my best to facilitate manpower where needed, and by doing so, I’m able to successfully lead the door shop in a way that minimizes time but maximizes productivity and profit,” Willie says. Willie is a great member of our team and also an excellent

family man. A father of a 9-month-old, he loves spending time with his family and friends. When he’s not busy with the baby, he enjoys working on projects around the house, particularly a race car that he’s in the process of building — what a cool hobby! Willie also loves gaming and is a big fan of Halo and working out at the gym.

Willie, you are an exemplary team member, and we are lucky to have you as a part of the Franklin Building Supply Family. We appreciate you!

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