Monthly Update July 2016

MONTHLY UPDATE: JULY 2016
MON T H LY U PDAT E
President’s Note - Bew White, GWC president & c.e.o.
June has been an extraordinarily busy month as we prepare for pre-market in Chicago, which
includes our national sales meeting. Both Gabby and Summer Classics are also preparing for
the upcoming July Atlanta show and the following Las Vegas show.
CONTRIBUTORS:
President - Bew White
CMO/Gabby - William White
CFO - Janet Roberts
Pres. SCPL - Harold Hudson
VP Marketing - Mark Griggs
VP Operations - Tom Livingston
VP Sales - Schon Duke
VP SCC - Don Smith
VP HR - Janet Ward
VP IT - Ben Erickson
SCH Ops. - Blake Stewart
PR Mgr. - Rob Robinson
We are fortune that the month of June has two extra selling days, Wednesday and Thursday,
and as a result we expect ‘sales’ will be up at least double digits for the combined companies of
Summer Classics, Summer Classics Home, Summer Classics Private Label, Gabby, and Summer
Classics Contract. It goes without saying that the break up of Britain and the European Union
has caused a significant drop in markets. Summer Classics is somewhat dependent on the stock
market as the wealth effect it has on our client base is extraordinary. My personal opinion is
that this particular historic event should have very little impact on sales in the United States.
It’s more of a banking issue than a product or manufacturing issue. That said, only time will
tell. We have seen extraordinary growth in our designer business the season and we expect this
to continue. There is a group of stores that we refer to as boutiques that are starting to show an
interest in outdoor furniture, and we believe this is a market segment that can help grow our
database.
Next week at Market we plan to introduce over 180 new products. It is an incredible array of
new products including some stainless steel collections that appear to be not just unusual but
cutting-edge. In fact, one of them has the name Acero, which is the Spanish word for steel. The
White Label brand will receive two additional groups including this stainless steel group and a
new wicker group called Carlton as well as two new dining chairs to round out the Malta, Bali
and Sahara collection.
Gabby Update
William White, c.m.o. & Gabby president
This month marks a significant change for Gabby and all of the Gabriella
White Companies. We have hired a new leader to manage Gabby moving
forward. Beth Sherer will lead the business effective July 6th in the role of
Executive Vice President. Beth brings a passion for our company and a wealth
of over 20 years experience in retail, product development and merchandising,
most recently as Divisional Vice President at Bon-Ton Department Stores.
Welcome, Beth! We are excited about what the future holds.
As always, June is a busy month of preparation in advance of the Dallas, Atlanta, and Las
Vegas summer markets. In July, we are working on shooting new product introductions and
preparing our Chapter 12 catalog set to be complete in early August. We also just purchased
some beautiful antiques from France for October High Point and the product development
team is preparing to go back to Asia near the end of July. Increases to our minimum opening
order amounts have also gone into effect in advance of the summer markets. This will surely
help us improve efficiencies and progress towards creating stronger partnerships with our
customers.
Have a wonderful 4th of July weekend with your friends and family and God bless America!
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Marketing News Mark Griggs, v.p. marketing
Web Communications: We have acquired the
SC Discontinued Website. Going forward we
have moved our online disco operations into the
SC website through a tab we call “Sale!” We will offer
discontinued products that have not been purchased by
our dealers and retail network over a reasonable period
of time.
Employees are reminded to regularly visit www.
SCGather.com, which conveys all company information
to corporate and remote employees.
SCsalestools.com is readily available for dealers, designers
and our retail network! Visitors will find Advertising
assets like POP signage, ads, photography and videos.
Anyone that would like to participate in our advertising
co-op program, will find an inquiry portal there.
Photography: 2017 has wrapped for SC. New
catalogs are presently being designed and
compiled.
MONTHLY UPDATE: JULY 2016
Vegas. The updates to our showrooms are in full swing.
Our latest designs are presently being shipped to each
showroom for introduction to our customers.
CRM: We have digitized the new account
signup process through our CRM module.
While improvements are continuing, the new
process allows reps to work with potential
customers over the internet to speed up the process of
account setup.
Garden Party: Invitations have been approved
and completed. They will mail in early July.
This year’s theme is “Trends”. The format will
be different from previous years with more events over
multiple days allowing customers from across the country
access to this fantastic annual event. Out top 50 dealers
will be considered.
Shows: Multiple projects are under way to
support the summer show schedule. July will
include shows in Chicago, Atlanta and Las
Press & Announcements
JULY PRESS:
• Traditional Home, July/Aug – writer Krissa
Rossbund, “clear furniture story” feat. Gabby:
Magnolia Nesting Tables, Cindy Bunching Table,
Angela Barstool in gold
• Veranda, July/Aug. Lookbook – featuring Gabby’s Villa
Mirror.
• Southern Lady. Cover! Featuring SC furniture
• Flower Magazine: feat. Coast Easy Chair
• Shelby Living Magazine (Shelby County, Alabama where
GWC is headquartered). Feature article on Gabby.
• Milieu, featuring Gabby’s Clara Bed
Digital: new wholesale branding campaigns are
running for both SC and Gabby. New designer
account campaigns are in place for both G &
SC. We are gearing up for show e-blasts and
Facebook campaigns. SC Contract’s Google Ad-Words
campaign launches soon.
Direct Mail: A new initiative is under way to
communicate with top design prospects. A
unique 3D direct mail piece that has a digital
component is arriving in offices now.
Robert Robinson, public relations manager
• “Summer Rocks” Traditional Home featuring Halo Chaise
• William White Birmingham Business Journal Entrepreneur
Spotlight Winner
• Home Accents Today, featuring Gabby’s Villa Mirror
JULY ADS:
• SC: Hearth & Home
• SC: Patio & Hearth Products Report
• SC: Casual Living
• G: Milieu Summer
• G: Home Accents Today.
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SC Private Label
Harold Hudson, president
MONTHLY UPDATE: JULY 2016
This week we announced that we are moving our replacement
cushion business to the Summer Classics Private Label
Company. Summer Classics Private Label manufactures
quality outdoor furniture for various specialty and master
retailers. We previously manufactured under the Parker James
brand name and this past January we changed the name to
Summer Classics Private Label to give the company better
visibility to the Summer Classics name.
We currently manufacture replacement and frame cushions
for two major catalogue companies and we have the capacity
to increase this business with our domestic manufacturing. By moving the cushion business to Private Label we also add an
“off shore” cushion manufacturing capability at competitive prices. We will become aggressive in the marketing of our cushion
manufacturing. If you are retailer and you offer replacement cushions contact us and let us quote your cushions.
As we approach the 2017 Chicago Pre Market we have reduced prices on our popular Alyssa, Terrazza and SOL groups
between 5% and 12%. How many of your vendors have reduced their prices on existing product?
We will be introducing a new slate gray finish in our popular Alyssa, Terrazza and a new outdoor upholstery group. We also will
be introducing three new frames with some great looking finishes. If you are attending the Pre Market please visit the Summer
Classics Private Label showroom down the hall from Summer Classics and look at our lower prices.
If you are a Casual Classics Member we are a Vendor Partner with the Buying Group and we are offering members extra discounts
during the Pre-Market.
SC Home Update
May wrapped up with the biggest
sale in SC stores history, leading to
over $3,000,000 in sales in the last
10 days of the month. The spike in
sales pushed us to a comp of over 40%
Blake Stewart, SC Home operations manager
LICENSED STORES PROGRAM
over last year. Results like this are an
unbelievable way to wrap up our peak
season. Every stores comp was in the
double digits as well as 3 stores in the
triple digits!
The Licensing Onboarding Program
is ramping up, we are talking with
multiple potential candidates
now about some of the highest
demographic markets to continue
to build the brand. We are looking
forward to moving through the
process with this group and build the
business through Licensing.
June’s focus on the retail front has
been invoicing. With the increase in
peak season sales, we were able to hit
our goal relatively early in the game.
As more and more product comes
available, our invoicing numbers will
continue to grow. We are excited to
see the continued growth through
July.
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MONTHLY UPDATE: JULY 2016
Operations Update
Tom Livingston, v.p. operations
As an executive team over the course of the last month, we have been looking at our overall mission and strategies as we
prepare to go into 2017. This process has included Operations, and our vision and plan has been updated as part of this
process. Since the intent is to have our actions line up with this vision going into 2017, I wanted to share this with you
so you can see where we are going and support us on this journey.
Our core values – these are the items that we believe in and will
align with:
• Obsession with solutions and improvement
• Relentless attention to commitments
• Integrity
• Family
• Pace
• Exceptional performance and business result
Our purpose – why we exist in our organization:
• To exceed industry and customer expectations in all areas
of “product fulfillment” (quality, cost, lead-time, and on-time
delivery)
Our mission – what we will accomplish by the end of 2017:
• Build and develop the most capable team in our industry
• Reduce cost and improved efficiency in manufacturing, distribution, and transportation by over $1,000,000
• Establish a baseline measure for quality and reduce defects by by 25%
• Reduced lead-time by 25% through all departments
Our strategic initiatives – how we will accomplish the mission:
• Build and develop a great team
• Benchmark against the competition and industry leaders – understand best in class
• Improve coordination and communication in the company to improve efficiencies
• Move aggressively toward best in class and becoming the industry operational leader
While the above may seem like an oversimplification of our direction for 2017, we will look back and see it as the
foundation that helped shaped the team we become and the results that we produce. These are loft aspirations for sure
– however, only those things that we focus on are likely to increase and become reality.
OUR BRANDS:
WHOLESALE | CONTRACT SALES | PRIVATE LABEL | SC HOME STORES
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Accounting Update
Janet Roberson, c.f.o
MONTHLY UPDATE: JULY 2016
CapEx vs. OpEx: The Mystery Explained
I’ve often been asked to explain the difference between a capital expenditure (CapEx) and an operating
expenditure (OpEx) so I thought it might be helpful to provide a few guidelines.
The truth is the lines between capital spending and operating expenses can get blurred at times. There are definitely gray
areas requiring a judgement call from Accounting and we are always happy to assist. However here are a few basics I
hope will provide a general understanding.
Definition
Also known as
CapEx
Creates future benefits with a useful life of
more than 1 year.
Capital Expenditure, Capital Expense
OpEx
Expenses incurred in the course of ordinary
business, which get used immediately or
within a year.
Operating Expense, Operating Expenditure,
Period Expense
Accounting treatment
Expensed over the life of the asset in
monthly increments called depreciation.
Fully deducted in the month they were
incurred or during the same fiscal year.
Examples
Buying machinery & equipment. New
flooring in a building we lease (leasehold
improvement).
Maintence on equipment. Rent on a
building. Repair to a floor.
Limit (per our policy) $5,000 and over No limit
Which is preferred?...
We prefer OpEx to CapEx, which may seem counterintuitive to many of you. Why wouldn’t we prefer to take an
expense out over a longer period of time instead of all at once? The answer is income tax. The more we expense during
the year the less tax we have to pay at the end of the year.
I.T. Update
Ben Erickson, v.p. information technolog y
We’re in the home stretch on the branch conversion project. The next few weeks are critical for both user training
and data preparation, and we will have our Syspro consultant on site for three of the next five weeks helping to
guide us through the remainder of the project. During the weekend of the consolidation, Syspro services will
be unavailable (July 29th – August 1st); however, customers will still be able to log onto the website and view
their orders and current inventory. After the completion of the branch conversion project, we will shift focus to the
installation of new Syspro modules and 3rd party systems to help improve efficiencies and data visibility. This includes
new sales tax and fixed asset modules and content/document and warehouse management systems.
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MONTHLY UPDATE: JULY 2016
Sales Update Schon Duke, v.p. sales
MOMENTUM...
Momentum… Best describes the busy
Summer Season for Summer Classics
and the Sales team… We have had
record breaking order entry after the
Factory Authorized sale last month.
Our Essentials in stock program is
90% in stock and our custom cushions
are delivering in 3 weeks in-season.
Momentum is pushing ahead into the
fall and the 2017 Early Buy Season.
Summer Classics new introductions
for 2017 will be introduced at Pre-
Market in Chicago July 12-14th. We
have another large introduction that
has “clean lines” and a more transitional
vibe featuring new materials for SC.
We have a very balanced approach
with our style, not leaving out the
tradition, taste, and grace you expect
from our 37 year old brand.
Acero Lounge Chair
Our Sales team is just now rounding
out with Rob Robinson joining the
team representing Summer Classics in
LA, MS and AR. Rob has been a long
time Summer Classics employee and
has worked closely with the founder,
Bew White, and most recently in the
marketing department. He brings a
wealth of knowledge and passion for
our brand that I believe our dealers
will see and feel. Summer Classics
now has a complete International and
domestic sales team with all territories
and regions being covered by seasoned
experts in the field. Join our sales team
in Chicago, Atlanta and Las Vegas
in the month of July… We have the
momentum in the Outdoor Industry…
Rob Robinson,
PR Manager/Sales Rep.
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Contract Update
The Contract Sales division has had a wonderful month;
in June, we have the summer solstice, the longest day of the
year and we have been fortunate to go long on sales and trade
events as well. One of the most enjoyable things about June has
been watching as our new Florida team starts to get traction
with some very strong accounts in their areas. This plan will
certainly yield great dividends for all. On the trade show front
it’s been an active month. We attended the NEOCON event
in Chicago and had some wonderful visitors from all across the
country including a large assisted living group in Wisconsin
and several multifamily developers as well! Many thanks to
Kinshasa for her hospitality and hard work in the showroom
as well as: Alissa Landrum, Jeremy Rago Jeff Fuge, and Ken
Grabinsky for all of their hard work at NEOCON. Bruce and
Kim Heins also attended the NEWH Philadelphia event with
us, the first one held with this new chapter. Attendance was
light but the attendees that were there are so appreciative of the
vendors that supported the event we look for our attendance
to pay dividends. We are also excited to have participated in
our first Assisted Living Match in Arizona. Meg represented
us there and reported that the event was a wonderful success
for SCCS. We also attended the NAA or National Apartment
Association Annual Conference and Expo in San Francisco.
We had a unique booth location right next to the NAA
Maintenance Mania competition; the host was the guy that
does the Nathan’s Hot Dog eating contest, and he is quite the
Don Smith, v.p. sales of SC Contract
MONTHLY UPDATE: JULY 2016
entertainer! If you’ve never heard of the competition, perhaps
look it up on YouTube. It is fairly amazing to watch a field of
apartment maintenance technicians from across the country
change a door lock in 15 seconds or a hot water heater in
under a minute.
Northshore Club in Glenview, IL
Interior Designer Hint Harris. Atlanta, GA
NAA
NEWH Philly
Northshore Club
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Janet Ward, v.p. human resources
Company Softball team update…..Our softball team has been having a great time
playing this season as evidenced by the face of the coach, Scott Deason .
MONTHLY UPDATE: JULY 2016
H. R. News
Visit
gwcgather.
com
I think it’s a hit…..
Stevie says this is done!
Demetrius seems to be asking for
something. What…we’re not sure.
David’s face reflects the score….
Yeah…uh
SAFETY NOTES: We have now placed sharps containers in the Men’s and Women’s restrooms near the café. This for
the proper disposal of any needles or sharps that employees might use in regard to taking regular medication such as
insulin.
Remember our hot weather tips and stay hydrated. If you feel dizzy or faint, or have any other symptoms of heat exhaustion
or dehydration, go immediately to a cool place and sip water. Let a First Responder know if the symptoms do not
disappear within a few minutes or if you are hot without sweating.
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MONTHLY UPDATE: JULY 2016

NAME LOCATION DEPARTMENT BIRTHDATE
Marilyn Romine
July 3rd
Brian Newton Corporate MIS July 5th
Marie Burns Corporate Customer Service July 6th
Asteria Nyangobwa Corporate Cushions July 10th
Jonathan Williams
July 11th
Kinshasa Floyd Chicago Sales July 11th
Britney Rosse Corporate Customer Service July 12th
Alex Sanchez Pelham Retail Warehouse July 13th
Scott Deason Corporate Cushions July 14th
Rick Scott Sales July 14th
Ellen Mims Corporate Accounting & Finance July 16th
Faye Lynn
July 16th
Rob Robinson Sales July 16th
Sheila Fenn Corporate Cushions July 17th
Herminia Ramirez Avila Corporate Cushions July 20th
Christopher Gothard Corporate Cushions July 22nd
James Burns
July 24th
Kelly Patton Sales July 25th
Don Smith Corporate Contracts July 25th
Patrick Cicchetto Richmond Retail Management July 26th
Tamala McCary
July 27th
Angela Beth-Eubanks Sales July 27th
Lois Samuels Corporate Cushions July 30
Andrew Ruiz Los Angeles West Coast Ops July 31st
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MONTHLY UPDATE: JULY 2016
NEW HIRES
Please help me welcome the following employees to our family!
Tammy Hardesty
Gidget Sartin
Tyler Letart
Brian Newton
Austin Womble
Robert Nall
Debra Avalon
Stephen Pitts
Rafael Flores
Beth Gawant-Sherer
Marianne Minogue
Debra Avalon
Rachel Hawk
Retail – St. Louis
Retail – Showroom
Distribution
MIS
Cushions
Sales
Retail – Nashville
Distribution
West Coast Ops
Executive - Gabby
Executive – Retail
Retail – Nashville
Retail – Showroom
EMPLOYEE OF THE MONTH AWARD
The June Employee of the Month went to someone from our
retail area…..Norma Purnell! According to her supervisor,
Celeste Russell, “Norma is an incredible person. She is a fully
dedicated employee with exemplary characteristics. She truly
represents a “WHATEVER IT TAKES” attitude every day. She
is dependable, takes great pride in her work, encourages other
employees, never says no, and does not complain about her work
load even when additional responsibilities are put on her. She
works diligently until the job is complete. She has joyfully taken
on large responsibilities within her family.
Norma is a joy to be around and a model employee. We are
blessed and fortunate to have her in the Summer Classics Family
and I am especially proud to have her in the Retail division. She
deserves much more than just this award but this recognition will
mean more to here than anything else we could possible give her.
Congratulations Norma!
IMPORTANT DATES TO REMEMBER
July 4th – Independence Day – Corporate Holiday
July 6th – WIT Award and Birthday Celebration
June 28th- New Employee Orientation/Bew History Lesson
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Inspiring Thoughts
MONTHLY UPDATE: JULY 2016
DAD, a son’s first hero; a daughter’s first love. - anon.
There is no elevator to success. You have to take the stairs. - anon.
The pessimist sees difficulty in every opportunity. The optimist sees the opportunity
in every difficulty. - Winston Churchill
There is simply no test until there is adversity. - David F. Evans
Enemies are so stimulating. - Katherine Hepburn
Discipline is just choosing between what you want now and what you want most.
Weep with those who weep. - Romans 12:15
#PrayForOrlando
Charles Merulla’s Grandson,
Oliver Charles was born on
Saturday June 4th at 7:16 AM
weighing 8lbs. to proud mother
Julie Merulla.
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MONTHLY UPDATE: JULY 2016
Employee Spotlight
Name:
Lee Alice Hamm
City of Residence:
Homewood, AL
Inhabitants at my residence: (pets/family/friends)
Jamie, Cotton the Cat and Buddy the
Dog.
Start date and current position with SC:
I started on Oct. 2nd of 2011. Bustin’
skulls and taking names... designing
various marketing materials, primarily
the catalogs.
What I like best about working for SC:
The people that I work with, and I like
getting to design and be creative.
Best job (other than SC):
I guess it would be working at the
Crimson White, the UA student
newspaper in college. It was great career
experience for someone in my field.
Worst job:
Bew’s Assistant - kidding! How about
waitressing at Ruby Tuesday’s.
What 3 traits define you:
Creative. Driven. Smartass.
Motto or Personal Mantra: (Git ‘er done)
If you don’t like what’s being said change
the conversation. - Don Draper
What’s one thing you couldn’t live without?
That’s a pretty lengthy list. Oxygen?
...a sense of humor.
What I fear most:
Throwup. Cockroaches.
Proudest of:
Whatever catalog I’m currently working
on.
Favorite Place to Be:
anywhere in France or any beach.
Favorite sports or pastimes:
Painting and Alabama Football.
People would be surprised to know:
I do a lot of the calligraphy for Bew’s
personal invitations.
What would you most like to tell yourself at age 13?
Relax.
Favorite Memory:
Meeting Jamie Monroe. Also finding
Cotton in the foam warehouse.
Pet peeves:
Baby talk and unwarranted stereotypes
about Millenials.
Favorite song, movie, book, or comedian:
Book: The Bell Jar by Sylvia Plath.
Anything by Kurt Vonnegut. TV: Mad
Men. Commedian: Jamie Monroe.
Song: King of the Road. or Ain’t That a
Kick in the Head. Can’t get enough of
this work Pandora.
Favorite Vehicle:
Anything I don’t have to drive.
Before I die, I would like to:
Cage diving in South Africa.
CORE VALUES
We Believe Deeply In:
Family | Obsession With Design | Relentless Attention to Detail
Integrity | Pace | Exceptional Business Results
OUR BRANDS:
WHOLESALE | CONTRACT SALES | PRIVATE LABEL | SC HOME STORES
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MONTHLY UPDATE: JULY 2016
Shelby Living Magazine, July Issue. (Shelby County, AL where GWC is headuartered) Feature article on Gabby.
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MONTHLY UPDATE: JULY 2016