American Standox Executive VP Michael Cash Takes Position with CARSTAR
American Standox, Inc. announced March 10 that Executive Vice President and Chief Financial Officer Michael Cash will be leaving the company effective April 1, 1997, to take position as Vice President of CARSTAR Automotive, Inc. of Overland Park, Kansas.
Standox was recently endorsed by CARSTAR Automotive, Inc. for use in CARSTAR-affiliated facilities in North America.
Mr. Cash’s primary responsibilities with CARSTAR will be the management of Mergers and Acquisitions, Finance and Operations. "I am very proud of my five-year association with American Standox," Cash states. "Because of the new Standox/CARSTAR relationship, I will be in a position to continue to work with this excellent organization. I have no doubt that Standox will be successful in its goal to be the top European paint line in North America."
According to William Kregel, American Standox, Inc.’s chief executive officer, "We will be sorry to see Michael go. He has been a key player in the success of American Standox thus far. We wish him continued success with CARSTAR."
According to the joint venture agreement between American Standox parent companies Herberts GmbH of Wuppertal Germany and Sherwin-Williams of Cleveland, Ohio, the Executive Vice President’s position must be filled by a Sherwin-Williams appointee.
An announcement of the appointment of a new vice-president and CFO is expected from Standox by April 1.
The Colonel's International, Inc. Announces Election of New Directors and Officers
At a special meeting of the Company’s board of directors held on February 20, six new directors were elected to the Company’s board. The new members of the board and officers are:
- Mrs. Patsy L. Williamson, Chairwoman of the Board of Directors
- Mr. Michael J. McCloskey, Vice-Chairman of the Board of Directors and Chief Executive Officer
- Mr. Mark Stevens, Director and President
- Mr. John M. Darcy, Director
- Mr. Donald Gorman, Director
- Mr. Ben Parr, Director
Mr. Parr was formerly the Director of Research for the State Farm Insurance Companies and was a motivating party in the creation of the Certified Automotive Parts Association ("CAPA"). CAPA is a non-profit organization established in 1987 to develop and oversee a testing and inspection program certifying the quality of parts used for auto body repairs. Mr. Parr’s experience with both State Farm and CAPA will add immeasurably to the Company’s ability to service the automotive after-market-parts business.
LYNX Services from PPG to Open Second Insurance Claims Center
LYNX Services from PPG announced February 28 that it is expanding operations with an insurance claims service center to be located in North Fort Myers, Fla. Scheduled to open July 1, the LYNX Services center is the company’s second, and will employ 200 people full time and 100 people part time to handle insurance claims for automotive replacement glass and repair.
LYNX Services is an insurance claims management and processing business that began operation in 1994 with its first service center in Overland Park, Kan. It is a subsidiary of PPG Industries (NYSE: PPG), a Pittsburgh-based global manufacturer of glass and fabricated glass products, chemicals, coatings and fiberglass.
"More insurers are recognizing the cost, efficiency and quality benefits of having LYNX Services from PPG manage their glass claims programs," said James V. Latch, director, LYNX Services. "Through our claims centers, we connect insurers, policyholders and repair shops so that all three receive the customer service they need. With our new North Fort Myers center, we will have a dedicated team of people handling claims as our business continues to grow."
Latch said employment at the North Fort Myers center could grow to more than 400 people by 1999.
CCC's Lou DiLisio Promoted to Vice President
CCC Information Services Inc. recently announced the promotion of Lou DiLisio to vice president, with responsibility for all field services including quality assurance within Collision Center Connection and ACCESS Claims Services.
DiLisio began his career within the collision repair industry as a third generation auto repairer in Mt. Kisco, NY.
Since joining CCC in 1992 as a consultant, DiLisio, 39, has provided leadership and helped CCC successfully launch the Autobody Systems group. He was an original member of the advisory board that led to the development of CCC’s Collision Center Connection and Integrated Claims Services, now known as ACCESS.
"Lou has been an extremely effective contributor to all phases of the ACCESS program," said Jack Rozint, CCC’s senior vice president of ACCESS Claims Services. "With his established background as a collision repairer Lou provided us with the best possible perspective into the collision repair industry. Because of his experience, Lou is in tune with the concerns of our customers so we’re able to enhance service to collision repairers and deliver exceptional value."
Carter and Carter International Enters U.S. Market; Appoints CEO
Carter and Carter International, the UK’s leading consulting and training organization for the Collision Repair Industry, has entered the U.S. market, with Eddie Cheskis as President/CEO of its North American Division. Founding partner Phil Carter says, "We are very excited to bring our experience and skills to the U.S. We are especially excited to have Eddie Cheskis head up our organization here."
Carter and Carter specializes in the collision repair/insurance claims industry, where it is the largest player in its field. Established in 1991 by Phil Carter, the organization has branches in Europe, with additional expansion planned into the Far East. Currently, over thirty full-time associates are employed worldwide.
Cheskis joined Carter and Carter in February of this year as both President/CEO of its North American Division and also as a member of its newly formed international management team. Cheskis has an extensive background in the U.S. automotive claims industry. Cheskis spent over twenty years with Globe Glass (now Vistar), before departing in 1992 as President of Globe’s operating divisions. Cheskis then joined CCC Information Services, becoming first President of CCC’s Autobody Systems Division and then President of its Claims Services Division.
Carter and Carter in the U.S., while only in existence a short time, has already established relations with one of the largest U.S. insurers, several major paint companies, and a growing number of collision repair businesses. Additionally, a strategic alliance with an industry leading information services provider was recently finalized.
Carter & Carter has a track record of successful consulting within the industry, providing improved operating and financial results to a wide range of clients. Recent projects have assisted clients in securing significant CSI improvements, collision repair efficiency gains, and reduced claims processing costs.
INSIGHT welcomes both Eddie back into the industry and Carter and Carter’s expansion into the U.S. market, as a resource for shop owners, insurers, and suppliers.
Carter and Carter’s North American Division currently has offices in Northbrook, IL (847- 509-0612) and San Mateo, CA.
Earl Scheib Announces Q3 Results
Earl Scheib, Inc. announced March 14 results for the third quarter ended Jan. 31, 1997.
The net loss was $1,652,000, or 36 cents per share, for the quarter ended Jan. 31, 1997, compared with a net loss of $1,518,000, or 33 cents per share, for the comparable quarter of the previous year.
The operating loss (which excludes interest income, gains and losses from the sale of fixed assets and income tax benefit) for the quarter decreased from an operating loss of $2,004,000 in the third quarter of fiscal 1996 to an operating loss of $1,975,000 for the same quarter in 1997.
Comparable-shop sales for the quarter and first nine months increased by 6.7 percent and 14.3 percent, compared with the same-quarter and nine-month periods last year, respectively.
The increase was due to the roll out of the company’s "New Earl Scheib Shop" format for its paint and body shops, new product offerings, increased advertising and improvements in shop operations and product quality.
Dan Siegel, the chief executive officer and president of Earl Scheib, said: "Every year during the last 10 years, the company has incurred an operating loss in its third quarter due to the weather and the holidays. This year’s third-quarter loss is the smallest operating loss in the last nine years.
"The decrease in the loss occurred despite an extremely cold and wet January in most parts of the country. We are back on track with our continuing improvements. Our sales rebounded in February with comparable-store sales up in the high teens.
"In March, we began our Phase Two Grand Re-opening with the introduction of our state-of-the-art EUROPAINT, and remain optimistic about other changes we are making to significantly improve the quality of our products at prices that can’t be beat. We feel positive about our future and are aggressively looking for locations to open 20 new shops over the next 12-month period."
Earl Scheib, founded in 1937, is a nationwide operator of 157 auto paint and body shops located in 137 cities throughout the United States.
IRS Audit Training Manual Available from INSIGHT
Nobody likes to think about tax audits, but they are a fact of life for many business owners. Chances are all too good that, at some point, every business will be subjected to an audit.
Collision repair was picked as one of over 25 industries for special attention by the IRS. The IRS developed a special training manual so that agents could most effectively audit collision repair shops.
What is the IRS looking for? INSIGHT has the answer!
Through the Freedom of Information Act, INSIGHT has obtained a copy of the IRS Training Document MSSP (Market Segment Specialization Program) on the Auto Body and Repair Industry.
This training guide for field agents provides IRS examiners with detailed information on prevailing practices in the collision repair industry and includes examples from actual examinations.
The manual, for example, identifies five key items to look for when an agent does an initial "walk through" of the business. Key financial areas (for the IRS) such as 1099 compensation, sublets, cash deductibles, referral payments, shop ownership/maintenance of "toys," owner compensation, building ownership and rent are covered in detail with examples of questionable practices and identified fraud. This is the training manual the IRS does NOT want you to see!
INSIGHT incorporates the IRS document (Training 3149-127(8/95) TPDS No. 83999S) into a valuable book providing "insights" into the tax investigation process and pointing out what you need to know to avoid the big problems an IRS agent can cause.
This guide, available from INSIGHT, includes an introduction by Rex Dunn, president of SOS, the accounting firm working with over 200 collision repair shops nationwide, and a director of True2Form, one of the industry’s latest "consolidators," plus INSIGHT’s guide to financial and operating ratios for "Top 25%" shops. The guide is available for $29.95, including 2nd day air shipment. ORDER NOW or call INSIGHT at (800) 860-2744 to place your order.
Insurance Auto Auctions Announces Addition to Board and Management Changes
Insurance Auto Auctions Inc. a seller of automotive and specialty salvage in the United States, announced a new director and several key management appointments on March 5.
James P. Alampi, president and chief executive officer, said: "I am pleased to announce the appointment of Maurice A. Cocca to fill an open Board seat, bringing the number of directors to eight. Maurice is an outstanding executive who has had significant large-company CEO experience, and is very familiar with services industries, alliances and growth strategies. His experience and counsel will make him an important addition to our Board of Directors."
Alampi continued: "Jerry Comis will become vice president, Customer Service and Industry Relations, a new position reporting to me. With our focus on customer satisfaction and operational excellence, we need a full-time advocate for the quality of our performance.
"Jerry will oversee operational procedures, training, any catastrophe teams (CATs) and the completion of the rollout of our proprietary Electronic Salvage Processing System (ESPS) as well as working with me on acquisition due diligence and the integration of new businesses. In addition, he will serve as our primary representative to the numerous industry groups we work with or belong to.
"In addition, Peter Doder will become vice president, Western Division, reporting to me. Peter has most recently been vice president, Planning. He will be located in Southern California and focus on business improvement in our largest market area."
In addition, Linda Larrabee, senior vice president and chief financial officer, announced the appointment of a new vice president, controller. Larrabee commented: "I am pleased to announce the addition of Stephen Green, as vice president, controller, an officer position for Insurance Auto Auctions Inc." Steve previously held a senior finance position at Van Waters & Rogers Inc., where he was responsible for Operations Accounting, as well as project leader for a process improvement project.
Binks Posts $12.7 Million Q4 Loss Tied to Restructuring Costs - Company Reports Record 1996 Sales of $296.7 Million
Binks , the designer and manufacturer of spray finishing and coating equipment, announced February 24 a fourth-quarter loss of $12.7 million, reflecting nonrecurring after tax charges of $12.6 million, or $4.07 per share due to restructuring activities during the year ended Nov. 30, 1996. The Company previously announced that it anticipated a fourth-quarter charge and year-end loss based on costs to streamline its product line and reduce its manufacturing base, including closing down production on February 21 at its 615,000 sq. ft. Franklin Park plant.
As a result of the nonrecurring charges, Binks reported a net loss of $11.1 million or $3.60 per share for fiscal 1995 on record sales of $296.7 million.
"We recognized that by implementing our product rationalization strategy, we would see a fourth-quarter loss, but to achieve our operational and earnings goals for the future, we had to consolidate and streamline operations in accordance with our plan to reduce costs," said Doran J. Unschuld, President and Chief Executive Officer of Binks. The cost reduction strategy was announced in fiscal 1996 as part of a strategic restructuring of the Company’s operations and product lines to enhance its competitiveness and achieve a seamless global organization.
Total nonrecurring pretax charges of $18.9 million were recorded in fiscal 1996, $7.1 million of which resulted from a writedown of discontinued products in inventory. Other charges were: $9.0 million in restructuring costs, including separation costs of 567 employees in the United States and Europe, write offs involving specific manufacturing equipment, its investment in Mexico, and the sale of the corporate jet; and $2.8 million in settlement of product warranty disputes from previous years.
Earnings in fiscal 1996 included an after tax gain in the fourth quarter from the sale of real estate totaling $191,000. In fiscal 1995, there was an after tax gain from the sale of two buildings in the first quarter that contributed $127,000.
"With the closing of the Franklin Park facility, and the completed pruning of the product line, in both engineered products and standard spray equipment, we are poised to act upon the Board of Directors’ directives relating to earnings and the growth of our core product lines," said John J. Schornack, Chairman of the Board.
PARNET Preferred Provider Network to Expand Nationwide - Matejzel to Join Staff
PARNET Corporation announced March 17 the national roll-out of its PPS (Preferred Provider Shop) network of quality collision repair facilities. Over the next two months, during an open enrollment period, PARNET will be accepting applications from all qualified collision repair businesses who meet the criteria.
John Junk, of Parnet, also announced that Bob Matejzel will join Parnet. Matejzel, formerly of Farmers Insurance,will "begin his full time duties as National Director of Expansion Development and PPS Network Planning on May 1, 1997," according to Junk.
Since August, 1988, PARNET has operated in California as the repair network for The CARNET Program, the nation’s first PPO automobile physical damage insurance policy. It has grown to nearly 300 shops who also now participate in other insurance companies’ direct repair programs administered by PARNET. All PARNET Preferred Provider Shops maintain their independence. However, as a PARNET PPS member, they are free to avail themselves of a number of cost saving business and insurance services, which add profit to the bottom line and are usually only available to franchises, associations and large automotive groups.
Any shop meeting the criteria can become a member of the network. The criteria for becoming a PARNET PPS member include the following:
- Must have completed I-CAR’s basic eight unit CRC or Collision Repair 2000 course;
- Must be an I-CAR Gold Class Professional or in the process of becoming a Gold Class Professional with completion by year end 1998;
- and must meet the minimum recommended requirements for a "Class A" collision repair facility as outlined by the Collision Industry Conference.
The open enrollment period ends May 30, 1997. Business owners who believe their collision repair facilities qualify and who would like more information are invited to fax a clear copy of their business card to PARNET at 1-888-6-PARCARE (1-888-672-7227). Or they can e-mail their shop name, owner/contact person’s name, address, telephone and fax information to: ppsappl@ix.netcom.com. PARNET will provide all applicants with a complete National PPS Network Expansion information package, which will also contain a program application.
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