FROM THE DESK OF THE PRESIDENT: RICHARD LICATA – Page 2

Before I get into the results of our business for the first 6 months, I would first like to introduce you to a new member of the Reebie Team. His name is Trevor Hewes and he will be taking on the position of Global Business Development. Trevor has over 12 years’ experience in this role working previously with another Allied and another NorthAmerican agency. As a business developer, he will be working with Brian Arnold to design, implement, and execute business development to grow our corporate account business. Please join me in welcoming Trevor and wishing him all the success and happiness he envisions for himself at Reebie.

I am saddened, on the other hand by the retirement of one of our owner operators, Mike Salazar. I am happy for him and hope that he is able to do what he enjoys most for many healthy years in retirement. But I am sorely going to miss him and the 20 years of dedicated service to our company.

July was more than we expected. Typically, there is a lull in the Interstate business in July, but it appears our peak season was pushed back a month and we had the type of July usually reserved for June. Our interstate business in volume is up, but our revenue for the same is down compared to last year. SIRVA admittedly didn’t anticipate the pent-up demand for our services in July because of the uncertainty surrounding the COVID-19 virus and therefore didn’t ratchet up the pricing fast enough. So unfortunately, we did more but made less which is not the ratio we want. Nevertheless, we are happy there has been a demand in our business and we are withstanding one of the most difficult periods in our lifetimes. I don’t have the data to prove it, but what might be another unintentional positive effect of the virus is the need for storage. There is a shortage of homes on the market, so many of our customers need to move out but don’t have a place to move into. Therefore, our storage revenue is taking an unexpected increase. Through 6 months, our HHG storage revenue in Franklin Park is up over 12%, International storage revenue is up 27%, Store Your Things storage is up 8%. Unrelated to HHGs, DataBank storage is also up 8%. So, these are some positive aspects of this crazy uncertain world we live in.

Once again, I would like to thank everyone, particularly our service providers as they are on the front-line taking care of our customers during this pandemic. They are asked to wear masks as they deal with extreme heat with no complaints and very few service issues. As always, I’m thankful to each and every one of you for not only staying safe and keeping Reebie health during this pandemic, but also for all the good work you are doing and the great attitude you have during these difficult times.