OPERATIONS: GARY RICHIED – Page 6

We had another very strong August this year as we were able to duplicate the revenue we produced last year, and then some. This accomplishment took all of our combined efforts as the competition for our repeat customers as well as new ones gets tougher daily.

We had a less than stellar month when it comes to the profitability of the company, realizing less than one third of what we had budgeted. While we fight raising our pricing from year, and have absorbed many cost increases over the past few years, it has become necessary to make adjustments to our rates so that our efforts are duly rewarded.

We have seen our insurance costs increase for our vehicles, our buildings, liability exposure, and our individual health insurance. The price of new trucks keeps rising every year and the cost of their operation keeps rising with fuel, tires, parts and maintenance. The warehouses get older every year and are requiring more maintenance and larger repairs to keep them in good condition. The quality of the services we provide, and the safe manner in which it is provided has been maintained and we have worked hard to minimize their effect and have done a good job.

However, these rising expenses combined with the things we have no control over, and are the most costly, specifically real estate taxes, sales taxes, extreme increase in the minimum wage rates, and outside services have driven us to the dilemma we face now.

Time and time again our service providers have proven their value to us in the accolades they receive, and the many customers who keep coming back to us over and over. This past evaluation period was no different and here is a list of all our outstanding employees.

Martinez, J. Garcia, J. Corral, N. Medrano, M.
Rosales, J. Guzman, A. Nechi, Z. Broaster, M.
Flowers, R. Paige, M. Bachar, B. Francisco, N.
Lopez, D. Sims, R. Severiano,E. Mayen, J.
Tellez, L. Monarrez, S. Nunez, E. Lopez, K.
Howe, D. Delao, E. Lemus, M. Nunez, G.
Rodriguez, J. Sandoval, F. De La Cruz, A. De La Cruz, M.
Garcia, I. Garcia, M. Gutierrez, L. Ayala, J.
Colin, D. Estrada, R. Gallarzo, J. George, K.
Gorostieta, M. Kory, .M. Lascano, J. Olmedo, H.
Pereda, A. Saucedo, O. Torruella, C. Ayala, A.
Griffin, D. Herrera, J. Padilla, A. Ramos, P.
Torres, J. Ocegueda, J. Romero, J. Valdovinos, J.
Youngman, J. Avila, J. Trujillo, J. Zapata, M.
Arreguin, R. Badillo, A. Chisem, J. Gonzalez, G.
Gonzalez, H. Umana, S.

These will be some challenging times as we determine the true cost of doing business, find ways to recruit and retain our employees through fair compensation, and develop new pricing strategies to make us more profitable while remaining competitive in the market.

It will do us well to heed the advice given by Claude Bristol when he said “It’s the constant and determined effort that breaks down all resistance, sweeps away all obstacles”. Let’s resolve to be persistent in resolving all the issues that lie ahead of us.

Peace and Prayers,
Gary