Annual Report 01 - DH Pace Company

E.E. NewcomerEnterprises, Inc.Architectural Doorsand HardwareConstructionServices2001Annual Report

E.E. NEWCOMER ENTERPRISES, INC.1142 Clay • North Kansas City, Missouri 64116 • (816) 221-0543 • FAX: (816) 480-2625To our valued customers, we thank you for your business this past year and we pledgeto do everything we can to earn the right to receive your business in the year ahead.To our valued employees, we thank you for caring about each other and for caringabout how we meet the needs of our customers each hour of every day. Your commitmentto excellence is foundational to the continued success of our family of companies.Authors Dave Marcum, Steve Smith and Mahan Khalsa state in their bookBusiness Think, “The world is more innovative than ever. Technology that oncerequired mammoth-size hardware now fits in the palm of your hand. Diseases thoughtto be incurable are now on their way to being wiped out thanks to revolutionary biotechresearch. Imagination, ideas and discoveries continue to flood the planet inremarkable ways and unbelievable speed.“With great hope and expectations, inventors and entrepreneurs all over the worldbreath life into ingenious ideas and pioneer new businesses every day. Companiesare driven by the minute to break new ground with products and services that will givethem a competitive edge.“Although we have grown accustomed to it, we are witnessing one of the greatestinnovation explosions in history. Globally, every 60 minutes, 101 new patents areapplied for and 2,265 new businesses are started every day. By the end of each day,over 2,131 businesses will file for bankruptcy or will have ceased operations. Thegigantic chasm between ideas and results must be closed by each company and individual.Companies don’t get free rides. We all live and die by what we produce andhow well we deliver our products and/or service to our customers.”Change will be fundamental to those companies that survive and prosper in the21st century. Over the past 24 years, there has been substantial change in thebreadth of products and services offered by our family of companies and the way wedeliver those products and services to our more than 150,000 customers.Our organization is blessed with a great many employees who focus on being thebest they can be, at what they do each day, as we strive to exceed customer expectationswith every customer we serve. We are confident these talented and committedemployees can compete with anyone in the 21st century. We believe “the best is yetto come” for our family of companies.May God bless each and every one of you and your loved ones.E.E. Newcomer • CEO Rex E. Newcomer • COOChairman of the Board PresidentE.E. Newcomer Enterprises, Inc. E.E. Newcomer Enterprises, Inc.2

E.E. NewcomerEnterprises, Inc.Board ofDirectorsEdward E. NewcomerChairmanE.E. Newcomer Enterprises, Inc.1142 Clay • P.O. Box 12517North Kansas City, MO 64116Robert L. HamannVice ChairmanE.E. Newcomer Enterprises, Inc.1142 Clay • P.O. Box 12517North Kansas City, MO 64116Rex E. NewcomerPresidentE.E. Newcomer Enterprises, Inc.1142 Clay • P.O. Box 12517North Kansas City, MO 64116Brian C. GillespieExecutive Vice PresidentE.E. Newcomer Enterprises, Inc.1142 Clay • P.O. Box 12517North Kansas City, MO 64116N. Nelson NewcomerVice PresidentE.E. Newcomer Enterprises, Inc.1142 Clay • P.O. Box 12517North Kansas City, MO 64116David BywatersPresident / TreasurerLawrence-Leiter & Company4400 Shawnee Mission ParkwaySuite #204Shawnee Mission, KS 66205Paul J. FisselVice PresidentFifth Third Bankof Northeastern Ohio1404 East 9th StreetCleveland, OH 44114Robert C. NewcomerAttorneyPaul, Hastings, Janofsky& Walker, LLP600 Peachtree Street N.E.Suite #2400Atlanta, GA 30308Consolidated Sales for 2001$85,250,728Growth and changein our mix ofbusiness over 24years forE.E. NewcomerEnterprises, Inc.and it subsidiaries.Actual for Fiscal 1977Residential NewConstruction $3,018,30238%Actual for Fiscal 2001New ConstructionCommercial/Residential$42,589,31050% CommercialAftermarket$22,825,51226.75%Total Sales $85,250,728E.E. Newcomer Enterprises, Inc.subsidiaries include:• D.H. Pace Overhead Door Group• D.H. Pace Architectural Doors & Hardware• D.H. Pace Construction Services• E.E.N. Advertising & MarketingService - RepairResidential/Commercial$1,825,29223%Commercial NewConstruction $2,996,87439%Total Sales $7,840,468ResidentialAftermarket$19,835,90623.25%3

A History of the OrganizationThe roots of the organization go back to the inventionof the upward-acting sectional garage door inthe 1920’s. Independent Overhead Door distributorshipswere established in St. Louis, Missouri in 1926;Kansas City, Missouri in 1927 and Atlanta, Georgiain 1935. Over the next half century each of thesedistributorships established themselves as theleading providers of Overhead Door products andservices in their market areas. In 1973, operationsof these separate entities were consolidated andbecame divisions of the newly formed D. H. PaceCompany, Inc.In 1977 a new generation of leadership joined theD. H. Pace Company, and re-energized the organizationwith an exciting new vision for the future. Inaddition to providing products and services for theOverhead Door market, the company expanded itsproduct offering to include all types of door and doorrelated products.This new business philosophy was best summed upin a new and exciting vision for the organization:"To furnish and maintain safe, secureand functional openings in all types ofcommercial and residential facilities,which consistently exceedcustomer expectations."The company set about making this vision a realitythrough the addition of new product lines. During the1980’s new showroom facilities in each major marketwere opened to showcase the expanded line of residentialproducts and services, including: garagedoors, openers, entry doors, windows and patiodoors. In 1995 the company established several newsatellite sales offices throughout the Midwest to supplycommercial entry door products and services tothe General Contractor market. With the establishmentof these satellite sales offices the company4

egan marketing new construction commercial entrydoor products and services under the “D.H. PaceArchitectural Doors and Hardware” and “D.H. PaceConstruction Services” trade names.In 1998 the company formed the EEN Advertisingand Marketing Group to manage the company’s multimilliondollar annual investment in print, electronic andmedia programs, including the development of internetand intranet web sites.Today, the organization is comprised of over 20offices and showrooms, providing for the sale, installation,repair and service of doors and door relatedproducts. All aspects of residential and commercialnew construction and retrofit markets are served, andthe marketplace is continually surveyed for new productsand emerging trends.The goal remains to bringinnovative TOTAL OPENING SOLUTIONS to themarketplace and consistently exceed customerexpectations.The D.H. Pace Company continues to invest innew technologies and ongoing employee training toenhance business performance. Best-in-class informationsystems have been put into place over thelast several years, including internet websites foreach operating entity and an extensive “PACE.NET”intranet site as a means of effectively sharing informationthroughout the organization. Through D.H.Pace University the company continues to offer multiplehands-on and classroom training opportunitiesfor employees, as well as for customers, architects,building code officials and related industry professionals.In 1977 company sales revenues were $7.8 millionwith a work force of 72 employees. During 2001,company-wide sales exceeded $85 million, with over586 employees working every day to make that1977 vision statement a reality for every customerserved.As we move into the 21 st century the pace ofchange is increasing in all areas of our lives, athome and in the workplace. This trend will impacthow we build and maintain facilities in the future toassure that they fit our daily needs and the demandsof a changing world. Our organization remains committedto providing the products and services necessaryto ensure that the openings in your residentialor commercial facility are safe, secure and functionproperly to meet your specific needs. Today over 70years of experience and 586 dedicated employeesstand behind that commitment 24 hours a day, 7days a week, 365 days a year.5

Overhead Door Group (OHD)Atlanta • Kansas City • St. LouisThe D.H. Pace Company’s Overhead Door Group is considered a leaderin the door industry and is one of the nation’s largest distributor groups.The company operates seven showroom facilities located in three majormarkets. In addition, two satellite offices operate under the tradenames of“Overhead Door Company of Blue Springs” and “Overhead Door Companyof SW Illinois”.The Overhead DoorCompany of Atlanta221 Armour DriveAtlanta, GA 303241-404-872-3667www.ohdatl.com96,000 sq. ft.Office/Shop/Warehouse75Service/InstallationField VehiclesThe Overhead DoorCompany of Kansas City611 E. 13th AvenueNorth Kansas City, MO 641161-816-221-0072www.ohdkc.com70,000 sq. ft.Office/Shop/Warehouse64Service/InstallationField VehiclesThe Overhead DoorCompany of St. Louis3924 ShrewsburySt. Louis, MO 631191-314-781-5200www.ohdstl.com38,000 sq. ft.Office/Shop/Warehouse55Service/InstallationField VehiclesVisit our Overhead Door websites for more information.6

Operations of the OHD Group include sales, installation, repair andservice of all types of residential, commercial and industrial door relatedproducts for both new construction and retrofit (aftermarket) applications.Dedicated OHD Group sales teams within each market segment work withgeneral contractors, architects, property and facility managers, home builders,homeowners and end users at all levels to make sure that the properproducts and services are provided to meet the needs of each projectand customer. All OHD Group sales personnel are professionally trainedto provide the right doors and door related products to meet the TOTALOPENING needs and code requirements specific to each type of facilityand application.In addition to providing customers with written bid proposals forproducts and installations, each OHD Group division employs a fullcompliment of trained service technicians who operate from radiodispatched vehicles outfitted with the products, parts and equipmentnecessary to service and repair any type of opening out in the field.OHD Group technicians often provide same day service and can alsorespond to emergency calls 24 hours a day, 365 days per year.The OHD Group offers comprehensive sales, installation,repair and service on the following type products:• Rolling Steel Insulated andFire Doors• Counter Shutters, steel andaluminum, fire rated• Grills, coiling and sliding• Sliding, Bi-fold IndustrialDoors, fire rated• Electric Operators• Controlled Access• Knock-out Doors and Panels• High Speed High CycleCoiling & Folding Doors• Security Scissors, Gates,Sliding Chain Gates• Strip Doors and Barriers• FDA Bug Screen Doors• Dock Levelers, EODs, PitLevelers, Truck Restraints• Dock Seals, Shelters• Dock Bumpers, DockLites, Pipe Bollards• Traffic Doors• Retail Doors• Canopies• Air Doors• Hollow Metal Frames,Doors, Fixed Windows• Solid Core Wood Doors• Aluminum Store Frontsand Doors• Finish Hardware• Electrified Hardware• FRP Doors & FiberglassFrames• Commercial GateOperators & ControlledAccess Hardware• ADA and AutomaticDoor Operators• Toilet Partitions andAccessories• Commercial Entry DoorAccess Control Systems• Locksmith Services• Key Management Systems• Residential Garage Doorsand Openers• Residential Entry DoorsAll products sold by the ADH Group (pgs. 10-11) are also offered by the OHD Group for existing facilities.7

SiteSurveysYes No 1. Are your doors routinely inspected,adjusted and serviced to remain ingood operating condition? 2. Are you certain your fire and exitdoors wi l function properly in anemergency situation? 3. Have a l of your fire doors been testedannua ly for proper operation with awritten certification on file as requiredby NFPA 80? 4. Are you confident that unauthorizedcopies of your building keys have notbeen made? 5. Are you aware of the latest accesscontrol, security and/or life safetyproducts that could make your facilityoperate more efficiently?If you answered NO to any of these questions, your facilitymay be at risk. Overhead Door Company of Kansas Cityoffers Preventive Maintenance programs and other services,which can help address these risks.The OHDGroup offersa variety ofdoor safetyand other site surveys to helpfacilities maintain safe, secureand productive operations,including a program designedspecifically for schools anduniversities.End User TrainingHealthcareFacilityManagersMissouri FireMarshal’sConventionAutomatic DoorInspectionsThe OHDGroup serviceteam includestechniciansauthorized bythe AmericanAssociation of Automatic DoorManufacturers (AAADM) toperform certified inspections onall types of swinging, slidingand bi-fold doors.Overhead Door Group (OHD)Atlanta • Kansas City • St. LouisCommercial andResidential Programsand ServicesThe proper sale and installation of overhead doors, dock equipment,commercial entry doors and related products is only part of the OHDGroup’s commitment to building a loyal client base and exceedingcustomer expectations.By providing a wide variety of industry-leading field and supportservices, trained and certified installers and technicians, and securityand safety expertise, the OHD Group not only offers best-in-class“service after the sale”, but provides single source TOTAL OPENINGSOLUTIONS that customers can rely on throughout the life of theirfacility.Some of the many Programs and Services the OHD Groupoffers include:• Emergency Repair Services 24 hours a day, 365 days a year• Customized Priority Service Contracts• Preventive Maintenance Programs• Fire Door Drop Testing• Door Safety and Site Surveys• Key System and Access Control Consultations• End-user Training ProgramsSpecialists at each OHD Group location are trained to provide eachcustomer with a combination of products, programs and services tomeet their specific facility’s total door and hardware needs.8

The Genuine. The Original. The Only.Residential PreventiveMaintenance ProgramRecognizing that garage doors are the largest and heaviestmoving object in most homes, and that door systems mustbe properly adjusted and maintained in order to functioncorrectly, the OHD Group has developed a residentialgarage door Preventive Maintenance Program to providefor the safe and proper operation of residential garagedoors and openers.Providingfor the safe anddependableoperation of yourgarage door.OVERHEAD DOOR COMPANYOF KANSAS CITYA Division of D.H. Pace Company, Inc.816-221-0072www.ohdkc.comServing Kansas City for Over 70 YearsProtect yourinvestment,avoid downtimeandincrease safety.The Genuine. The Original. The Only.OVERHEAD DOOR COMPANYOF ATLANTAA Division of D.H. Pace Company, Inc.404-872-3667www.ohdatl.comServing Atlanta for Over 65 YearsCommercial PreventiveMaintenance ProgramOHD Group’s Commercial Preventive Maintenance (PM)Program is designed to offer customized PM service forany size or type commercial or industrial facility’s sectionalor rolling doors and operators, fire doors, commercial entrydoors, dock levelers and related dock equipment.Customer benefits include reduced repair costs, controlleddowntime and extended equipment life for each facilityunder the program.Fire Door Drop Testing ProgramNational Fire Protection Association (NFPA) standards require buildingowners to have their rolling and sliding fire doors inspected and testedannually, and to maintain written documentation of such inspections.The OHD Group’s Fire Door Drop Test Program helps building managersand owners stay in compliance with building fire codes and maintain theproper operation and full closure of all facility fire doors.Ingersoll-Rand Security CenterThe OHD Group is proud to be designated as anIR Security Center, which provides the highestlevel of sales, installation, repair and service forIR’s industry-leading brands such as Schlagelocks, LCN door closers, Von Duprin exit devices,Locknetics access control products and Steelcraftdoors and frames.As an IR Security Center, the OHD Group iscommitted to in-stock inventories, installer and service technician training and certification,24 hour a day / 365 day a year field availabity, mechanical key system andaccess control capabilities, and the supply of innovative IR commercial entry doorproducts. This commitment offers commercial, industrial and institutional customersTOTAL OPENING SOLUTIONS from a single source provider.Safety foryour facilityThe Genuine. The Original. The Only.OVERHEAD DOOR COMPANYOF ST. LOUISA Division of D.H. Pace Company, Inc.314-781-5200www.ohdstl.comServing St. Louis for Over 70 Years9

ARCHITECTURAL DOORS & HARDWARED.H. Pace Architectural Doors& Hardware Group (ADH)The D.H. Pace Company’s Architectural Doors and Hardware Group offers awide range of commercial entry door (CED) and related products and services tothe new construction market. ADH Group offices are strategically locatedthroughout the midwest and provide services on a nationwide basis.The ADH Group works with general contractors, architects, end users andrelated construction professionals in a concerted effort to consistently and professionallydeliver the highest quality project possible. Each project supplied bythe ADH Group strives to provide best-in-class products and services that are ontime, within budget and exceed customer expectations.Springfield, Missouri310 S. Union • Suite ESpringfield, MO 65802417-831-5585Kansas City, Missouri218 E. 11th AvenueNorth Kansas City, MO 64116816-480-2600Lincoln, Nebraska5800 North 58th St. Suite 2Lincoln, NE 68507402-467-4300Wichita, Kansas1711 S. Hoover RoadWichita, KS 67209316-944-7223Hutchinson, Kansas335 N. Washington • Suite #130Hutchinson, KS 67501620-665-9945Hastings, Nebraska747 N. Burlington • Suite #206Hastings, NE 68901402-463-3334Collinsville, Illinois1701 Golfview Ave.Collinsville, IL 62234618-346-6670Visit our website @ www.dhpace.com10

The ADH Group employs industry professionals certified as ArchitecturalHardware Consultants (AHC) and Certified Door Consultants (CDC) by the Door& Hardware Institute (DHI). These individuals provide Specification WritingServices and work with customers to assure that the proper products areselected to meet the specific needs of each opening and application.In addition, ADH Group employees are constantly trained on the latest productsand industry technology, and participate in numerous industry associationssuch as the Construction Specifications Institute (CSI), the Security IndustryAssociation (SIA) and the Associated Locksmiths of America (ALOA) in aneffort to continually provide industry leading products and services to eachcustomer and project.In support of both existing customers and current projects, the ADH Groupmaintains large hollow metal fabrication facilities certified by UnderwritersLaboratories (UL) to build fire-rated assemblies, along with a broad array offinish hardware, locksmith and replacement parts inventories. This allowsthe ADH Group to provide single source TOTAL OPENING SOLUTIONS to thediverse customer base and markets it serves.The D.H. Pace Architectural Doors & Hardware Group (ADH) isconsidered a leader in the contract hardware industry which includesthe sale, installation and service of hollow metal doors and frames,wood doors, finish hardware and related specialty products. Supportservices include: specification writing, key system management andelectronic security applications.• Hollow Metal Doors/Frames• Wood Doors• Pressure Resistant Doors• Locksmith Services• Restroom Partitions & Accessories• Roof Vents, Access Panelsand Hatches• Overhead Door Products andServices• Access Control Systems• Key Management Systems• Aluminum Storefront Openings• Automatic Openings• Blast Doors• Security Systems• Bullet Resistant Doors• FRP Doors and Frames• Electronic Security HardwareAll products sold by the ADH Group are also offered by the OHD Group (pgs. 6-7) for existing facilities.11

D.H. Pace ConstructionServices Group (PCS)The D.H. Pace Construction Services Group offers a complete line ofConstruction Specifications Institute (CSI) Division 6, 8, 10 and 11 productsunder a single contract for commercial new construction projects.Installation of these products can also be provided under an installationservices contract. The PCS Group operates on a regional basis with recentprojects in Virginia, Washington D.C., Tennessee, Georgia, Florida, Kansas,Pennsylvania, Missouri and Illinois. Project types include: hotels, conventioncenters, detention facilities, arenas, educational campuses, manufacturingfacilities, hospitals, office buildings and wastewater treatment plants.Recent projects of the PCS Group include:• Giant Center ArenaHershey, PA• Kilde Hall-Iowa State UniversityAmes, IA• Leavenworth Justice CenterLeavenworth, KS• Federal Reserve BankAtlanta, GA• Washington Convention CenterWashington, D.C.• AOL - OnLine Data CenterManassas, VA• Linn State Information Technology BuildingLinn State Technical Institute; Linn, MO• Platte County Detention CenterPlatte City, MO• Federal Express World HeadquartersMemphis, TN• Municipal AuditoriumKansas City, MOKansas City Office218 E. 11th AvenueP.O. Box 12641North Kansas City, MO 64116816-480-2600Atlanta Office2600 Century ParkwaySuite #100Atlanta, GA 30345404-327-5106O’BrienCommercial Interiors218 E. 11th AvenueNorth Kansas City, MO 64116816-920-555012

EEN Advertising and Marketing is a full serviceagency, which handles the organization's diversemarketing needs. From design to production andplacement of advertising to interactive multimediasales tools, EEN Advertising works with all operatingentities to achieve their most efficient use of mediadollars and best return on investment.Agency responsibilities include the design and managementof the organization's distinctive yellow pagemarketing program, the coordination of manufacturers'co-op advertising programs, the design and productionof traditional print sales and marketing pieces, and thedevelopment and maintenance of electronic media suchas internet websites and multimedia CDs.EEN Advertising also plays a key role in the operationand expansion of PACE.NET, an organization-wideintranet resource tool that enhances communication andthe sharing of knowledge among the employees of theorganization.E.E.N. Advertising andMarketingProtect yourinvestment,avoid downtimeandincrease safety.The Genuine. The Original. The Only.OVERHEAD DOOR COMPANYOF KANSAS CITYA Division of D.H. Pace Company, Inc.816-221-0072www.ohdkc.comServing Kansas City for Over 70 YearsD.H. Pace UniversityD.H. Pace University (DHPU) is the organization's learning systemthat incorporates state of the art facilities, multiple media resources anda broad range of programs to deliver ongoing educational opportunitiesto employees and other stakeholders in the company.DHPU learning programs include weekly product and systemstraining sessions in divisional Classroom Facilities, regularlyscheduled installation and service training in divisionalHands-On Training Facilities, off-site training programs offeredby manufacturers and industry associations, On-Line coursesover the internet, and educational seminars held for customers,architects, building code officials and related industryprofessionals.In addition, DHPU offers ongoing training, industry information,product libraries and related resources through the company'sPACE.NET intranet site which employees can access at any timefor project research or to further their professional education.13

E.E. NewcomerEnterprises, Inc.and its Family of Companies- CORPORATE VISION -“Continue to broaden the range of products and services we offer to the market place.Provide products and services to our customers with the highest possible level of quality,ethics and integrity.Produce a solid level of profits that will enable us to maintain a financially strongorganization.Provide a corporate caring family environment for our employees that creates jobsecurity, job satisfaction and opportunities for growing responsibilities.Meet our community responsibilities, especially to those less fortunate than we are,with an active participation on the part of both our family of companies and ouremployees.”E.E. NewcomerEnterprises, Inc.and its Family of Companies- CORPORATE VALUES -WE BELIEVE in providing a safe and secure environment withchallenging opportunities for every employee in the organization.WE BELIEVE in providing an environment that encourages openness,self-discipline and personal growth for every employee in the organization.WE BELIEVE in respecting the value every employee contributes to all ourcorporate objectives every day.WE BELIEVE that meeting our customers’ needs by providing timely andsuperior service, the best product and the utmost respect for each customer must be ournumber one objective every hour of every day.WE BELIEVE each of us throughout the organization must “care about each otherand respect each other” for our company to live each day by the beliefs set outabove.WE BELIEVE our company can achieve its profit objectives andoperate day-by-day with a very high standard of ethical and moralvalues, and that these will be in harmony, one with the other,day-by-day, week-by-week, month-by-month, and year-by-year.