Franklin Building Supply - July 2021

Franklin Building Supply - July 2021

OWNER -TO- OWNER www.franklinbuildingsupply.com | 208-514-2200 | 9222 W. Barnes Dr., Boise, ID 83709 JULY 2021

INSTALLED PRODUCTS ON THE MOVE

Franklin Building Supply is best known as a lumberyard and distributor of other building materials. Yes, we are also engaged in the manufacturing of complementary products to lumber, such as trusses and doors, that we have been doing for a long time. In addition to lumber sales, we are in three other distinct businesses: manufacturing, retail store sales, and installed products. Installed products include insulation, gutters, overhead garage doors, siding, countertops, cabinets, and a wide array of flooring and tile products. We even provide installed framing to a select customer list. Installed products is a complex business, offering a unique set of challenges that our department managers can attest to. It all starts with accurate and competitive estimates for material and labor. Next, we schedule an installation crew to get the work done in a timely manner with attention to detail, high quality, and safety. This all happens in an environment that is often out of our control and away from our yards. The two profit killers in any installed product sale are what we call “dry runs” and “call backs.” Sometimes, the things we must overcome are self-inflicted, and other times, they are the result of our customers' inattention to detail. Over the past several months, we have been working hard to improve our processes, striving for continuous improvement in all areas of the businesses. With the help of technology and our IT folks, we have improved our estimating capabilities. Our new Safety & Continuous Improvement Coordinators tackle lean projects to make us more efficient and safer. We have improved our financial reporting to help us focus on the important metrics that lead to positive change. We are beginning to track dry run and call back metrics to understand what causes them and how to reduce them. Our HR department is upping our game in recruiting and retaining only the best future employee-owners. In some of our installed sales businesses, where we have relied on subcontractors, we are taking this in-house and hiring and equipping our own installers. This allows us to have better control of the outcome when we know a proud employee-owner is responsible for the finished installation. This also leads to less call

backs and warranty work. Finally, we have expanded our installed framing team to support the growth of our booming construction economy for those customers who see the value we bring. Our goal is to be recognized for our world class installed sales businesses, just like what we are known for in our lumberyards. Customers won’t look at our installed products as an afterthought, but as a way for us to help them “Make Building Easy.” Once we have the playbook down in our current locations, we have a recipe for success to expand to other geographic areas. This is how installed sales will continue to support the growth and profitability of the company. We know we still have work to do. It is a continuous improvement process, after all. It has been exciting to see our installed sales department leaders and employee-owners embrace the challenge!

– John Hinshaw Director of Installed Products

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May was another fun month for the 2021 EO Fishing Derby. We gave out a lot of T-shirts, as the fishing waters across the state of Idaho were the place to be. No entries from Nevada yet, but we are certain that will happen. Moe likes to fish. In addition to the cool fishing derby T-shirts that go to each entry, we also gave out 13 prizes for the best May entries. The prizes are dope — you'll just have to win one to find out. Head over to FranklinBuildingSupply.com to check out the month in photos and view all the May winners. MAY FISHING DERBY WINNERS

Ian Beane’s guiding philosophy for the Central Take Off department is T ogether E veryone A chieves M ore. He would love to highlight each person on the team, but space limitations forced a deeper look into four of the team leaders. No question that these four are legit examples of excellence, and they represent the entire team well. THIS TEAM IS TIGHT!

Steve Meyers is an unselfish leader and a joy to be around. Smart and talented, he’s just about done it all in this department. He is also a talented musician and is likely the only Franklin employee to have played at Treefort Music Fest. Jenny Tibbett is a quiet genius, but don’t mistake that for lack of passion. She has a persistent drive for perfection and loves to figure things out. She has turned herself into the installed sales specialist of the group, although she can do it all. Outside of work, you’ll find her with her family, likely enjoying the outdoors. Sarah Hall’s career with FBS is wide and diverse. She gained experience in the door shop, the Boise design center, and the fireplace department. She is using that knowledge to help set this team up for success. Coworkers call her the true boss , which is a sign of deep respect for what she does to help them along the way. Nick Shaddy learned patience, teamwork, and unstoppable drive in his military career. He’s become one of the best at complex plans, and his eye for detail is relied upon by our Bellevue yard. Nick knows that one person can’t do it all, so he’s become a great teacher for his teammates. Watch out for Nick — he’s going places!

City Park Catch of the Month: Jacob Daigneault, Son of Melissa of Design Innovations

My First Steelhead Award: Kellen Palmer, Boise Yard

Mother’s Day Special Award: Cat Bedegi, Jaguar

My First Fish Ever Award: Ricardo Rodriguez, Boise Truss Girls Rule Award: Lexy Enochson, Daughter of Joey of Design Innovations Feeding the Family With One Fish Award: Kyle Whalen, McCall, With Wife Jill and Son Riggins Persistence Award: Mike Taylor of Boise Door Cool Cat Terrible Hat Award: Steven Anderson, Caldwell Walleye With Grandpa Award: Laney Morgan, Daughter of Jeff, Jerome Closest Fish to Body Size Ratio Award: Kyla Winton, Fruitland

And special recognition to the design team at Boise’s D/I for winning The Team That Fishes Together Award and being the first department to take a fishing outing together!

Biggie Smalls Award: Duane Dowell and Rob Johnson, Boise Cabinet

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NEW SHARE PRICE ANNOUNCED! We are pleased to announce that the share price, effective Dec. 31, 2020, is $37.75. This share price attaches to all shares held in trust for current employee-owners, including the new shares allocated as of last year-end. This new price is a 62.6% increase in value since the previous valuation in 2019. “This increase in share price amounts to a huge benefit for all employee owners,” said Kathy Weaver, Chair of the EO Committee. goes to Francis Vitug of the Boise Cabinet Shop for the closest guess companywide. Francis guessed $37.70, only 5 cents from a bull’s-eye. Everyone else, the closest guess at each location, wins $100. Thank you to all who played and CONGRATULATIONS to all employee-owners on the new fabulous share price! Game winners and their guesses:

Mike Nelson, Jaguar: $36.75 Dan Otero, Design Innovations: $36.26 Greg Schofield, Boise Supply: $34.48 Jeff Magnelli, Gooding: $34.34 Kale Black, Jerome: $41.32 Jeff Christoffersen, Burley: $42.00

Aiden Swassing, Pocatello: $37.45 Art Hazelbush, Bellevue: $37.18 Jackson Theberge, Sawtooth Door: $38.50 Dennis Dempster, Boise Truss: $38.50 Cameron Steinke, McCall: $38.50 Mitch Montgomery, Twin Falls: $38.55

Francis Vitug, Boise Cabinet: $37.70 Chris Bazzle, Boise Door: $37.82 Javier Ramirez, Jerome Truss: $37.87 Jordan Schilling, Fruitland: $38.00 Gary Leishman, Caldwell: $37.50 Cory Griffith, Boise: $37.50

Individual stock statements will be mailed to the homes of employee owners in mid-July. Watch your mailboxes! The share price is the value of one share of company stock. It is determined by a valuation of the company that is performed each year at the request of the Trustee of our Employee Stock Ownership Plan and Trust. For this purpose, our trustee hired the independent firm Chartwell, an expert in valuating closely held companies of this size. The valuation process ends with Chartwell naming a value for the entire company, which is then divided by the number of allocated shares to arrive at a per-share price. We are also happy to reveal the winners of the Guess the Share Price Game. These individuals submitted guesses that were closest in each location or major department. The grand prize of $500

AUGUST ANNIVERSARIES

AUGUST BIRTHDAYS

LOCATION - EMPLOYEE - YEARS

Sawtooth Door Jaguar Burley Fruitland Caldwell Jaguar Pocatello Boise Pocatello Boise Pocatello Burley Bellevue Boise Truss Caldwell Boise Truss Boise Truss Boise Boise Jerome Truss Boise Truss Jerome Burley Boise Boise Truss

37 27 24 24 21 17 17 16

Brian Smith Adam Ingle Jeff Christoffersen Jeff Thomas Dustin Wickel Teresa Hodge Paul Ludwig Muhamed Delic Huge Hughes Heather Huteson Drew Ruffridge Eric Heiden Donnie Karst Dennis Demster Jim Boyle Osvaldo Rodriguez Jose Garcia Richie Rodriguez Tyler Honn Dan Diehl Miguel Macias Kale Black Freddie Caldera Joel Garcia Joe Burke Nate Hamson Kevin Teague Zac Luker Bradley Morrow Evan Bradshaw Nick Kotichas Tim Kackley

Jerome Truss Fruitland Jaguar Boise Truss Caldwell Jerome Truss Boise Truss Boise Boise Boise Truss Boise Boise Truss Gooding Boise Boise Supply DDF

Freddy Ruiz KC Croner John Hinshaw James Vogel Rey Toledo Eddie Alcantar Bill Ball Agapito Bernal Ryan Faler Antonio Gamino DeLaRosa Dustin Bray Gonzalo Anguiano Jimenez Larry Dille

3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1

Jaime Bermudez Jr. Rod Runyon Jerrid Brain Mike Jones Buddy Phelps Tyler Honn Wendy Arens Brennen Sabala Todd Vickhammer Manuel Castillo Trujillo

14 14 15 15 15 16 17 17 17 19 19 20 20 21 22 23 24 24 24 24 24 25 26 26 26 26 28 29 29 30 30 30 30 30

Muhamed Delic Joel Garcia Melody Sparks Heather Huteson Greg Bauman Layne Bingham Jordan Schilling Nickolas Shaddy Chris Edwards Jacob Hess Joe Marcotte Adam Plantz Joaquin Ramirez Steve Bayne Chance Beese Harley Eldredge Alex Escamilla Craig Smith Sean Armstrong Justin Goracke James Vogel Russ Hinds Lane Tibbett Brenton Black Monty Montgomery Amanda James Linda Szerwo David Cruz Tony Luchi Daniel Guadarrama Isaac Hazelbush Rick Lierz Mario Alvarez

1 1 1 2 3 3 3 3 4 4 4 4 4 5 5 5 5 5 6 6 6 7 7 8 8 9

9 9 9 7 7 6 6 6 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 3

Anthony Henry Spencer Davis Ivan Mendez Clay Gummersall Mason Chewning Michael Purcell

Taylor Shanda David Barajas Coltyne Conley

Boise Boise

Derek Taylor Gabe Taylor Paul Dean

Jerry Cheney David Cuanas Toni Dusho

Bellevue Pocatello Caldwell Boise Boise Fruitland

Alan Pooley Jose Arregui Sarah Spence Zachary Flatter Scott Still

Kevin Montgomery Robert Tomlinson Jacob Severance

Ethan Crane Anthony Fox Justin Harris Jacob Weaver Jayar Lamadrid Betsy Hayhurst Scott Penrod William Budell Keaton Buffat Robert Rogers Dana Smith Preston Wells

DDF DDF McCall Sawtooth Door Pocatello McCall

Justin Goracke Kaden Lemons Ryan Richmond Jonathan Williamson Jordan Wilde Cameron Olsen Steinke Donald Pearson Guiseppi Imbriani

Boise Boise Jaguar

10 11 11 12 12 12 14

Caldwell Fruitland Boise Truss Caldwell

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

I N S I D E

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Installed Products on the Move

May Fishing Derby Winners This TEAM Is Tight!

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New Price Share Announced August Birthdays and Anniversaries

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Spotlight on Scott

A MEMBER OF THE COMMUNITY

For Scott Brinkley, Our July Spotlight, His Job Goes Far Beyond the Yard

recognizes the name on the receiving end. “And they’ll recognize you, too,” he points out. “That’s how it is in a small town. If you see someone on the side of the road, and you help them out, they’ll remember you — if they don’t know you already. People notice things quick. Especially if you’re wearing a Franklin shirt!” To unwind from his work, Scott and his partner of six years often take out the Harley-Davidson Tri Glide Ultra and hit the road. “We love to ride,” he says, and you can hear it in his voice. “We’ll take turns driving and just go.” They also love spending time with family, especially grandkids. “We’ll all play cornhole in the yard and have fun until it gets dark. Once we can’t see, we go inside and play Mexican Train Dominoes.” As you can see, Scott’s a family man, and a community man, and we’re so proud to be on his team. Thanks, Scott, for all that you do — on and off the clock.

Our stores are social hubs in the towns

they serve, especially smaller ones like Elko, where our team member, Scott Brinkley, works in

the lumberyard. As our July employee-owner spotlight, he recently talked to us about his job and how it fits into the wider community.

“It’s really about knowing the customers personally,” he explains. “I see people in our store, and I see them throughout town, too. When they come to the store, my job is to help them. But I do the same thing anywhere I see them, whether I’m on the clock or not.” That simple connection drives the way Scott thinks about his job in the yard, where he helps fulfill orders and load trucks, and does deliveries as a driver. Often, when he looks at an invoice, he

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