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MONTHLY UPDATE: MAY 2018<br />

MONTHLY UPDATE<br />

President’s Note<br />

Bew White and William White<br />

Wow, wow, wow!! April has exceeded our expectations! Our business continues to grow this month: Gabby is up<br />

over 60% in order entry, Summer Classics is up over 30%, and Retail is up 21% over last year in written sales.<br />

April marks the biggest furniture show of the year - High Point. This market, we introduced over 60 new Gabby<br />

pieces and 24 new fabrics, displayed Summer Classics Essentials frames only - a market first, and debuted Wendy<br />

Jane. Each showroom looked amazing thanks to the merchandising work of Roy Dollar, Chris Hutchens, Jose<br />

Ramos, Jamie Monroe and their entire team. As always, this team worked hard and contributed to High Point<br />

market success!<br />

The Asia Summit was also just completed in Bali, Indonesia and it was an awesome event! We have over 50<br />

attendees with representatives from 15 key suppliers in attendance. Our Operations team did a wonderful job of<br />

preparing for the event as we communicated our vision, reviewed several vendor compliance initiatives, showed<br />

them product development concepts and initiatives and gave them an opportunity to tell us how we can improve.<br />

We also enjoyed meals together and had a presentation of traditional Balinese dancing. Thanks in particular<br />

to our Asia Team led by Pam Cheung for all their efforts in organizing the event and translating everything<br />

into Mandarin!<br />

As the new 2019 Summer Classics product samples arrive, the design team has been hard at work making final<br />

adjustments to the assortment and will wrap-up photoshoots for the new products this month. All of this is in an<br />

effort to get ready for our earliest Garden Party yet in late July.<br />

We are also pleased to announce a furnishings agreement<br />

partnership with Pursell Farms, a 3,200-acre<br />

destination resort in Sylacauga, AL, less than an hour<br />

away from Birmingham. The Contract team did an<br />

amazing job assisting with this partnership as both<br />

Summer Classics and Gabby products are featured<br />

throughout the resort. With a similar target market as<br />

Pursell Farms, we believe that this new relationship<br />

will significantly help expand both Summer Classics<br />

and Gabby product exposure and brand recognition.<br />

This month we are looking forward to the grand<br />

opening of the new Jacksonville Summer Classics<br />

Home store on May 23rd. This historic building was<br />

built in 1926 in downtown Jacksonville and marks our<br />

first retail venture in the state.<br />

As we look toward this next quarter, busy season is<br />

upon us. Please do your best to exceed customer<br />

expectations and work as a team to serve each other<br />

well!<br />

Sincerely,<br />

Bew & William White<br />

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MONTHLY UPDATE: MAY 2018<br />

Pursell Farms looking beautiful with new Summer Classics Furniture!<br />

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Wendy Jane Update<br />

Wynne White<br />

MONTHLY UPDATE: MAY 2018<br />

With High Point market behind us, I want to give a huge thanks to Chris Hutchens, Roy Dollar, Jose Ramos,<br />

Sam Ryland, Willie Moore and Lindsay McMullen for all of their help making the showroom come to life!<br />

The display was a real WOW factor. Not only was the showroom gorgeous, but it was in a great location<br />

which brought in a lot of traffic for us. Overall, market was a hit as we have recieved great feedback all<br />

across the board!<br />

I am really looking forward to seeing what the future holds for the Wendy Jane line. So thank you to<br />

everyone who has been a part of making Wendy Jane come to life. This is just the beginning for us!<br />

Operations Tom Livingston, VP of Operations<br />

As a company, we strive to make our products with the most careful attention to detail and quality. We are able<br />

to achieve this with the fantastic group of suppliers who manufacture our products. In April, our Operations<br />

team traveled to Asia to visit these suppliers. The trip not only allowed us to strengthen relationships with them,<br />

but enabled us to work hand-in-hand with our Asia team members. It also gave Jim Moore, our Director of<br />

Global QA, the opportunity to work on some beneficial packaging improvements.<br />

The Asia trip culminated with our 2018 Asia Summit. The summit provided us with a great forum in which to<br />

bring our suppliers together. We had two success days of collaboration and open discussion in Bali, Indonesia.<br />

Pam Cheung, our VP of Asia Operations, along with Asia team members, spearheaded the event. Pam and his<br />

team are constantly working with our suppliers to ensure the highest quality of production, best delivery, and<br />

strongest pricing.<br />

During the summit, William gave a strategic overview of the company direction for the coming years. Tom<br />

Livingston reviewed our complete Asia Operations function as well as our new vendor scorecard. The team also<br />

introduced the suppliers to our new GWC Vendor Compliance, Packaging, and Construction Manuals. It was a<br />

great two days, and the teams look forward implementing these processes for the remainder of 2018 and into<br />

2019.<br />

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MONTHLY UPDATE: MAY 2018<br />

A Look Overseas!<br />

Asia Summit 2018<br />

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I.T. Update<br />

Ben Erickson, Vice President of I.T.<br />

MONTHLY UPDATE: MAY 2018<br />

If you spend much time in the IT department, you’ll know that security is always at the top of our “Things that<br />

keep you up at night” list. Through March of this year, there have been around 60 reported data breaches in the<br />

US, exposing over seven million records of personal identification information (PII). These breaches ranged from<br />

schools and other government agencies to hospitals and private businesses. This month Alabama became the<br />

final state to enact a data breach notification requirement, the Alabama Breach Notification Act. This new law<br />

requires notification to consumers if their PII is compromised, and specifics timetables for doing so.<br />

As we continue formalize many of our processes and policies, the first area we look at is security. While we are<br />

constantly making enhancements on the backend, occasionally we make changes that directly affect our users.<br />

For example, we are beginning to roll out password policy updates to all users to conform with the latest industry<br />

best practices. While this is painful to most of us (it took me about a week to stop typing my old password at ever<br />

prompt), it’s one of the key steps in building up our IT security policies and heading off as many vulnerabilities as<br />

possible. We are implementing these changes one department at a time, with the goal of completing all users by<br />

the end of the quarter. In addition to policy changes, we are also continuing our relationship with ThreatAdvice<br />

who provides online training courses in 5 to 10 minute increments. These courses are especially important to<br />

our security policy as roughly 90% of successful cyber-attacks are the result of human error such as opening an<br />

attachment or following a link from an email. Notifications will be sent throughout the month regarding your<br />

ThreatAdvice account and next steps.<br />

Retail Update Marianne Minogue, VP of Retail<br />

“Success doesn’t come to you, YOU GO TO IT!” ~ Marva Collins<br />

April has certainly showered us in success and although the challenge gets stronger every year, we are UP for it<br />

and I am super proud of the entire Retail Team and every department that helps us along the way!<br />

•Business Highlights Retail was up 21% over LY in Written Sales with highlights as follows:<br />

o Dallas who also celebrated their 1-year anniversary up 123%<br />

o Nashville up 72%<br />

o Louisville Licensee up 69%<br />

o San Antonio up 60%<br />

o Chicago Licensee up 51%<br />

o Pelham Showroom up 50%<br />

o Pelham Outlet up 26%<br />

o Atlanta up 10%<br />

o Richmond up 7%<br />

o Raleigh flat to LY<br />

o Charlotte with a record breaking Last Day of the month and flat to LY<br />

•Our Design Consultants truly amazed me with incredible business and sharing the GIFT of great service in all they<br />

do!<br />

•We’re so close to the Jacksonville Opening – May 23rd here we come!! See drawing of the store below:<br />

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MONTHLY UPDATE: MAY 2018<br />

Some Retail Celebrations:<br />

Our Dallas Team celebrating their 1-year anniversary, congratulations!<br />

This spectacular design from Liz in our Raleigh location for a client:<br />

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MONTHLY UPDATE: MAY 2018<br />

A look at the Gabby, Summer Classics, & Wendy Jane High Point Showrooms<br />

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Marketing and Design<br />

Amy Myers, CMO<br />

MONTHLY UPDATE: MAY 2018<br />

With more than 65 Gabby Introductions, the launch of Wendy Jane, and a Summer Classics showroom filled with Essentials,<br />

it is easy to say that it was a successful High Point for our teams. The Marketing Operations team and visual teams worked<br />

closely together to set up all three of our showrooms and did an incredible job pulling this off! The rest of the marketing team<br />

worked diligently to promote the events with emails, printing promotional materials, blog preview posts, ordering supplies and<br />

producing Wendy Jane and Gabby catalogs ready for market. In addition, the new Wendy Jane pillow designs were added to<br />

the Summer Classics and Gabby websites just in time for market. Our showrooms were filled with customers and media who all<br />

loved our beautiful products.<br />

For the design team, there is no doubt that it has been a busy month. With the Gabby designers just returning from a trip to Asia<br />

to visit suppliers and the Summer Classics designers hard at work making final adjustments to the new product assortment and<br />

will wrap-up photoshoots for this month. All this is in an effort to get ready for our earliest Garden Party yet in late July.<br />

With the opening of the Jacksonville store just a few weeks away there are great plans in place for the opening that include a<br />

digital campaign, mailing to the Garden and Gun list, and a grand opening party with Traditional Home. The marketing team is<br />

definitely looking forward to May 23rd!<br />

Our High Point shoe style socail media campaign was a hit! As customrs walked<br />

through each showroom they were able to post their shoe’s with our giant floor<br />

stickers<br />

High Point Market Style Spotter - Mary Douglas Drysdale made a<br />

stop in the Gabby showroom with her dog Clifford. They “spotted”<br />

the new Gabby Leona Dresser.<br />

Thanks for the picrture William!! Chris Hutchens enjoying hi spaghetti in Surabaya<br />

while on Asia trip<br />

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Gabby cocktail hour in High Point was busy per-usual with customers<br />

enjoying cocktails, food, and live music


Contract Update<br />

Don Smith, VP of Contract Sales<br />

MONTHLY UPDATE: MAY 2018<br />

This month has been very exciting in the contract division! We kicked off the month at the Boutique Design West show in<br />

Los Angeles, CA. Angela King, Alissa Landrum, Deana Ray, and Don Smith attended the show. We had great opportunities<br />

to meet with customers and meet new leaders in the industry. The Gabby booth was a finalist in best booth design,<br />

and the Summer Classics booth won! We appreciate all the efforts from Roy Dollar, Pete Simonson, Chris Hutchins, Jose<br />

Ramos, and Jamie Monroe to execute these fabulous booths!<br />

The same week, Sara Kaiser and Mark Rodell attended the Interface Student Housing in Austin, TX. Almost 1,300 leaders<br />

from across all facets of the student housing industry joined together in Austin this week for the 10th annual InterFace<br />

Student Housing conference, held at the J.W. Marriott. Mark and Sara were able to network with decision makers in this<br />

fast-growing market segment. Mark Rodell and Angela Kelman attended the Environments for Aging in Savannah, GA.<br />

This conference is a designer focused event that was a perfect platform to network with designers that specialize in<br />

senior living.<br />

The Contract division has added new team members this month. Brittney Rose has joined our team and we couldn’t be<br />

more thrilled! Brittney will be a Sales Support Coordinator, joining Libby, Catrina, Michele, and Tonya on a great team! We<br />

are so excited to have new sales reps in Colorado and Arizona! Jenny Lewis and Betty Henderson will be working in the<br />

Colorado territory and Kristin Wolfe in AZ. They all came to Pelham, AL this month for training. They are going to be great<br />

representatives for the territories!<br />

There is a great installation photo for this month! This photo is from a private dining space at Landry’s restaurant Mastro’s.<br />

The photo displays our custom teak chairs that were designed specifically for this restaurant chain. Very exciting to see<br />

the project in person!<br />

Mastro’s restaurant - Summer Classics Conract custom teak chairs<br />

Gabby booth was the finalist at the Boutique Design West show In L.A.<br />

Congrats to Summer Classics Contract for being the showroom winner at<br />

the Boutique Design West show in L.A.<br />

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Accounting<br />

Janet Roberson, Cheif Financial Officer<br />

MONTHLY UPDATE: MAY 2018<br />

On Saturday April 7th the accounting team came together for our first annual planning meeting. It was a huge<br />

success! After the day the team had a better understanding of the company’s 3 year plan and its annual goals.<br />

And most importantly how we as a department can help the company achieve its goals. We had some great<br />

team building exercises. The overwhelming majority said they most enjoyed learning about the company’s<br />

long range plans and getting to know each other better.<br />

Two weeks later we held our quarterly meeting. I’m proud to report the team completed 94% of its rocks<br />

for the quarter! With our new quarterly rocks set we established goals to move forward on completing our<br />

annual goals for the department. This quarter we will:<br />

1) revamp the company scorecard to make sure we are measuring the right things<br />

2) roll out the new credit card processor<br />

3) finalize order to cash (OTC) process improvements to enable automation<br />

4) improve internal controls over cash and inventory starting with the retail stores<br />

5) bring the operating credit line to a zero balance.<br />

Private Label Update<br />

Harold Hudson, President<br />

Summer Classics Private Label is busy shipping our early spring containers that dealers requested later ship<br />

dates. We still have some domestic inventory on Alyssa in Black Walnut and Weathered and we have selected<br />

inventory on Terrazza Weathered and some Davenport.<br />

We should get a good feeling on how strong our furniture is since we sold an order of Davenport to a fraternity<br />

at the University of Arkansas last week.<br />

Our 2019 samples have started shipping from the factory for late May early June photography. We will be<br />

introducing a new full teak leg on Retro, adding teak to the top of the Jersey sectional arm. We also have a new<br />

small rectangular balcony bistro group with the chairs in sling. The chairs will also double as a balcony lounge<br />

chair with an ottoman that stores under the chair. We will be showing all of our new products in full force<br />

during the Pre-Market in July in Chicago.<br />

Summer Classics Private Label products appeared on the front cover of the first One Kings Lane outdoor<br />

catalogue that were mailed last week. We also have a two page spread of Private Label Products in the Pottery<br />

Barn Spring Outdoor book.<br />

Lindsay & Sam<br />

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MONTHLY UPDATE: MAY 2018<br />

Chaplin’s Corner<br />

From an article in the Wall Street Journal:<br />

John Scott<br />

“In a survey of 2,000 Americans on gratitude, some 80 percent agreed that receiving gratitude makes them work<br />

harder, but only 10 percent managed to express gratitude to others every day. “Thanks”—whether sent up, down,<br />

or sideways—was rarely heard. The report states that being appreciated is one of the great motivators on the job,<br />

even better than money. Researchers at the London School of Economics analyzed more than 50 studies that<br />

looked at what gets people charged up at work. They concluded that we give our best effort if the work gets us<br />

interested and excited, if we feel that it’s providing meaning and purpose, and if others appreciate what we’re<br />

doing. A simple expression of gratitude doubled the response.”<br />

How easy it is for us to be moving fast in our normal business day and forgot the power, motivation and meaning<br />

that comes from expressing and receiving thanks for a job well done. No matter what role we play at the office,<br />

at home or in the community, it seems the best currency is knowing you are valued outside of money. By letting<br />

others know how much they are appreciated for who that are and what they do, they are given a glimpse into the<br />

eyes of the Almighty God who sees us as we are and values us more than we can fathom.<br />

Give people a taste of the Almighty today by simply letting them know that they matter and are appreciated. A<br />

simple expression of words can power much!<br />

Come see me if you ever need to talk.<br />

Human Resources<br />

David McLean, Vice President of Human Resources<br />

I have just completed my first month and what a great month it has been! I feel so fortunate to be a part of the<br />

Summer Classics family and to serve each of you.<br />

A little more about me……I am originally from upstate New York, just 30 miles south of the Canadian border. My<br />

parents essentially grew up there and into their early adulthood. My dad’s company was building a new papermill<br />

in Kentucky and the idea of getting away from the brutal winters was very appealing to him and my mom. So,<br />

we packed up and moved to a small town in western Kentucky, Madisonville. For those of you were at the April<br />

W.I.T. award get-together, you heard me mention that while I pull for Alabama during football season, my true<br />

passion is UK Basketball! So, depending on the time of the year, you might hear me say Roll Tide or Go Big Blue!<br />

My wife, Michelle, teaches first grade at Chelsea Park Elementary School. I have two kids, Charlie 17, and Katie 13.<br />

They attend school in Alabaster. Michelle has a son, Landon 8, who attends Chelsea Park. We make our home in<br />

Chelsea.<br />

One of my major focus areas will be to identify areas and opportunities that will make us an employer of choice.<br />

Employer of choice is a buzz phrase that has been used in HR circles for at least the<br />

past 10 years. It sounds great, but what does it really mean? To me, it means that<br />

perspective employees are eager to work for us. It means that the people in the<br />

communities we live and work are envious of our employees for working here. It<br />

means that we regularly receive resumes and applications even when we do not<br />

have openings in that person’s area of interest. Most importantly, it is an employer<br />

where employees want to work throughout their career. I believe we are well on<br />

our way to becoming an employer of choice and in some instances, we are already<br />

there. Becoming an employer of choice is not simply a destination. It is not a list<br />

of items on a checklist that once completed would allow us to sit back and declare<br />

victory. It is an ongoing pursuit of excellence.<br />

I’m looking forward to getting to know each and every one of you and to a great<br />

career with Summer Classics. My door is always open. If you need anything, please<br />

do not hesitate to stop by or give me a call (205-358-9525).<br />

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MONTHLY UPDATE: MAY 2018<br />

New Hires<br />

Please help us welcome the following new employees to our team!<br />

Name Position Location<br />

Chris Blumstein MIS - Help Desk Representative Corporate<br />

Magen Van Meter Retail Administration - Retail Customer Service Rep Corporate<br />

Caroline Taylor Retail Administration - Brand Ambassador Nashville, TN<br />

Chelsea Quintela Cushion Prod - Seamstress Corporate<br />

Emily Kiley Operations - Fulfillment Specialist Corporate<br />

Porter Metzler Retail Management - Retail Operations Assistant Charlotte, NC<br />

Shoneika Crews Cushion Prod - Finishing Operator Corporate<br />

Cindy Massingill Sales - Showroom Manager Dallas<br />

Please join us in congratulating the following employees on their promotion!<br />

Name Position Location<br />

Susan Ray Marketing Director Corporate<br />

Mary Glenn Culp Communications Specialist Corporate<br />

Vernon Cunningham Expeditor Corporate<br />

Carolyn Fynan Human Resources Manager Corporate<br />

Dakota Guillot Traffic Coordinator Montevallo<br />

Beth Sherer Vice President of Merchandising Corporate<br />

Britney Rosse Sales Support Coordinator Corporate<br />

Zac Thorson Retail Sales – Design Consultant Pelham Outlet<br />

W.I.T. Whatever It Takes Monthly Award<br />

Courtney Peoples - Scheduling Analyst<br />

Courtney Peoples has been with the company for almost 11<br />

years. He was nominated and selected based on his efforts and<br />

demonstration of the Core Values through his daily work and<br />

interactions. “Not only is Courtney a tremendous asset to the<br />

company, he is a great guy as well! Courtney portrays all of the<br />

Core Values...but most visibly I can comment on his D-Dedication<br />

for coming in on Saturdays and working long hours when the job<br />

called for it. Also, he is S-Synergistic in regard to his teamwork and<br />

ability to willingly work so well with others!”<br />

Tim Alldredge - Raw Material Handler<br />

Tim Alldredge has been with the company since 2016. He<br />

is known as diligent, friendly and doing what it takes to get<br />

the job done. “I nominate Tim because he is amazing at<br />

everything he does. Even though he asks a million questions,<br />

he is a hard worker. I’d rather him ask questions and do the<br />

job right than not ask questions and do the job incorrectly.<br />

He is willing to help in all departments. He lives and breathes<br />

the core values. He doesn’t ever want to go home, seems like<br />

he would rather stay here and work.”<br />

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MONTHLY UPDATE: MAY 2018<br />

Name Department Location Day<br />

Rick Williams Cushion Prod - Director of Engineering Corporate 3<br />

Tamika Braxton MIS - Business Systems Analyst Corporate 3<br />

Mandy Piper Customer Service Representative Corporate 4<br />

Amber Mueller Customer Service Operations Manager Corporate 5<br />

Liz Taylor Retail Sales - Design Consultant Raleigh, NC 5<br />

Sara Kaiser Sales - Factory Sales Representatives - SCCS Texas 5<br />

Erica Ginder Retail Management - Retail Operations Manager Nashville, TN 8<br />

Phillip Patterson Distribution - Shipping Associate I Corporate 9<br />

Shoneika Crews Cushion Prod - Finishing Operator Corporate 10<br />

Dale Jones MIS - Master Data Specialist Corporate 11<br />

Tirelle Cullen Distribution - Receiving Associate I Corporate 13<br />

Honie Weinstein Sales - Factory Sales Representative - Wholesale Illinois 17<br />

Pascuala Rivera Duran Cushion Prod - Seamstress Corporate 17<br />

Timothy Alldredge Cushion Prod - Material Handler I Corporate 17<br />

Trisha Cauthen Customer Service Representative Corporate 17<br />

Arthur Smith Distribution - Shipping Associate II Corporate 18<br />

Billy Hodges Retail Warehouse - Retail Warehouse Assistant Richmond, VA 18<br />

Caroline Taylor Retail Administration - Brand Ambassador Nashville, TN 18<br />

Desmond Horn Distribution - Shipping Associate II Corporate 21<br />

William Yowell Retail Management - Retail Store Manager Richmond, VA 21<br />

Gwen Kazmierczak Sales - Sales Team Leader California 23<br />

Kati Aiken Cushion Prod - Machine Cutter Corporate 23<br />

Maggie Hubbard Retail Sales - Design Consultant Nashville, TN 23<br />

Amber Paschel Purchasing - Scheduling Clerk Corporate 25<br />

James Belyeu Distribution - Receiving Associate II Corporate 25<br />

Monica Staffney Customer Service Representative Corporate 27<br />

Che’Bondria Bray Cushion Prod - Prep Sewer Corporate 30<br />

Lindsay McMullen Marketing - Merchandising Manager Corporate 30<br />

Teara Wright Retail Administration - Retail Operations Manager Richmond, VA 30<br />

Lisette Milner Retail Sales - Design Consultant Atlanta, GA 31<br />

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Inspiring Thoughts<br />

MONTHLY UPDATE: MAY 2018<br />

1. There are so many kinds of apples, that if you ate a new one every day, it would take<br />

over 20 years to try them all.<br />

2. You can survive without eating for weeks, but you will only live 11 days without<br />

sleeping.<br />

3. People who laugh a lot are healthier than those who don’t.<br />

4. Laziness and inactivity kills just as many people as smoking.<br />

5. A human brain has a capacity to store 5 times as much information as Wikipedia.<br />

6. Our brain uses the same amount of power as a 10-watt light bulb!!<br />

7. Take a 10-30 minute walk every day & while you walk, SMILE. It is the ultimate<br />

antidepressant.<br />

8. Sit in silence for at least 10 minutes each day.<br />

9. When you wake up in the morning, pray to ask God’s guidance for your purpose,<br />

today.<br />

10. Eat more foods that grow on trees and plants and eat less food that is manufactured<br />

in plants.<br />

CORE VALUES<br />

Dedication | Enthusiasm | Synergy | Integrity | Goal-oriented | Nimble<br />

OUR BRANDS:<br />

WHOLESALE | CONTRACT SALES | PRIVATE LABEL | SC HOME STORES<br />

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