Askew Appointed Director of Industry Relations for PPG
PPG has announced that Don Askew has been appointed Director of Industry Relations for the Refinish Division of its Coatings and Resins Group. Askew joined PPG in 1969 and most recently served as Director of Training and Customer Service, a position he accepted in 1986. At that time, PPG had three instructors and one training school for refinish. Under Askew’s leadership, PPG’s Training Department grew to 19 Business Development Centers and a crew of 42 Trainers and nine support staff.
In his newly created position, Askew will interface with all facets of the automotive industry. He presently holds a director’s seat on the Board of ASE, is a member of VICA’s Youth Development Foundation, committee chair for ASA’s Management Institute and PPG’s representative to I-CAR, ASIA, the National Autobody Council, SCRS, CIC and other groups. In addition to these responsibilities, Askew will work to develop and manage business and professional growth programs for PPG customers and will interface with the insurance industry.
BASF Launches Conference and Seminar Series Taking Fresh Look at Industry
BASF has launched a series of two-day Clear Thinking conferences across North America that detail changes affecting the collision repair industry. The program is exclusively presented to members of Glasurit and R-M "Maximum" Warranty Programs and BASF’s VisionPlus program.
Topics covered during the Clear Thinking conferences include: Effectively Marketing Your Body Shop, Fast Track Production, Electronic Data Interchange, and Industry Trends. Participants also learn how to effectively close sales using BASF warranty program offerings.
In addition to the conferences, BASF has also launched their Professional Business Management seminar series. The four seminars run approximately 4 hours each and include: Body Shop Management by Objectives, Paint & Material Profitability, Know Your Numbers 1- Meaningful Financial Statements, and Know Your Numbers 2- Measuring and Improving Profit and Performance.
The seminars are presented by Bernie Blickenstaff of Collision Management Services in Baltimore, MD. Blickenstaff operates a successful collision repair facility and distributor operation.
Thompson PBE Report Q2 Results- Adopts Shareholder Rights Plan
Thompson PBE Inc. reported May 6, its financial results for the 13 weeks ended March 29, 1997.
Net sales for the quarter totaled $51,441,000, an increase of 23 percent from the prior year. For the six months ended March 29, 1997, sales increased 25 percent from the comparable prior year period to $99,209,000. The increases were attributable to the acquisition of 15 businesses since Dec. 31, 1995, including two businesses acquired during the current fiscal year. No businesses were acquired during the quarter ended March 29, 1997.
Net income for the quarter was $321,000, or 4 cents per share, as compared with net income of $1,034,000, or 12 cents per share, in the second quarter of fiscal 1996. Net income for the six months ended March 29, 1997, was $543,000, or 6 cents per share, as compared with $1,901,000, or 21 cents per share, in the comparable prior year period.
The reduction in net income was primarily the result of lower gross margins and higher interest expense during the current fiscal periods as compared with the year earlier periods. The decrease in gross profit margins was in part the result of a change in the company’s inventory purchasing patterns and, to a lesser extent, competitive pressures and increased customer support costs.
Mortimer A. Kline, president and chief executive officer, commented, "We continue to focus on the basic elements of our business. During the initial quarters of the current fiscal year, we changed certain discretionary purchasing patterns to reduce inventory levels and improve efficiencies. Although margins dropped during the periods as a result, reductions in inventory levels and expense savings were achieved."
"The company expects to realize the full benefits of these actions during future periods. Our focus continues to remain on improving profitability of our core business and standardizing systems and procedures."
Separately, the company also announced that its board of directors declared a dividend distribution of one Preferred Share Purchase Right on each outstanding share of Thompson PBE common stock. If and when the rights become exercisable, each right will entitle stockholders to buy one one-hundredth of a share of newly created Series A Junior Participating Preferred Stock of the company at an initial exercise price of $25 per right.
The rights will, subject to certain exceptions, be exercisable if a person or group acquires 20 percent or more of the company’s common stock or announces a tender offer for 20 percent or more of the common stock. The company’s board will be entitled to redeem the rights at 1 cent per right, payable in cash or stock.
The rights are designed to assure that all Thompson stockholders receive fair and equal treatment in the event of any proposed takeover of the company and to guard against partial tender offers, open market accumulations and other abusive tactics to gain control of the company without paying all stockholders a control premium.
If a person acquires 20 percent or more of the outstanding common stock of Thompson PBE (other than certain exempt persons), each right will entitle its holder to purchase, at the right’s then-current exercise price, a number of common shares of Thompson PBE having a market value at that time of twice the right’s exercise price.
Rights held by the 20 percent holder will become void and will not be exercisable to purchase shares at the bargain purchase price. If Thompson is acquired in a merger or other business combination transaction which has not been approved by the board of directors, each right will entitle its holder to purchase, at the right’s then-current exercise price, a number of the acquiring company’s common shares having a market value at that time of twice the right’s exercise price.
Feedback on INSIGHT’s IRS Manual
As the IRS hunting season for tax audits for the collision repair industry begins, we are getting feedback from shop owners who have read INSIGHT’s Annotated IRS Audit Manual. Of particular interest are comments from owners already "under the gun," experiencing tax audits in the past thirty days.
One collision repair facility operator in California was "enlightened" by "how our industry looks from a different set of eyes," those of an IRS agent. According to the owner, the manual was extremely helpful in preparing for the IRS’s initial walk through of the business. She removed extraneous and unrelated paperwork and accumulated "stuff" from the office and shop areas and focused on answering IRS questions directly instead of the "nervous, chatty and rambling" replies that the IRS counts on.
Another shop owner, after reading the manual, made sure his accountant was on hand for the walk through, explaining and defending the shop’s financial records.
A "show me" Missouran shop owner suggests extreme care should be taken in selecting an accountant. "An accountant who understands the collision repair industry is the one I want in my corner. He can show me how carefully kept financials can make me money and save me money. Cash or accrual system? My accountant has to know what’s best for me."
As the audit season begins, INSIGHT would like your comments, both on the audit manual and from those readers who have already experienced a tax audit. Call Karen at INSIGHT: (800) 860-2744 with your comments and tips on how to survive, so that we can include them in an upcoming article.
CTAP Holds 1st Annual Awards Banquet
The Collision Technician Apprenticeship Program (CTAP) held its 1st Annual Awards Banquet on Thursday, May 15, 1997 at Martin’s Crosswinds in Greenbelt, Maryland to celebrate the apprentices, mentors and participating shop owners/managers who have made the program a success to date. CTAP currently has 9 apprentices on its payroll since the inception of the program in August 1996. Approximately 80 local and national guests were at Martin’s to enjoy the evening.
Keynote speaker Charles Baker of Collision Repair Industry INSIGHT discussed industry trends and alternative methods of production flow in order to be more profitable. Other special guests included Mark Claypool, Executive Director of the I-CAR Education Foundation, and Chuck Sulkala of the National Auto Body Council, who donated PRIDE pins and Stickers to all guests.
The Executive Council, comprised of representatives from CTAP’s national founding sponsors, was also present. Those individuals are Roger Albizu (GEICO Insurance), Don Askew (PPG Industries), Lowell Bell (Keystone Automotive Industries), Bruce Cooley (Sherwin-Williams), Martin Scahill (ICI Autocolor), Jim Warren (BASF Corporation), and Lester Young (DuPont).
In addition to special recognition certificates and CTAP hats for all program participants, John Halstead, CTAP’s President, presented an award to Joe Canby, President of the Washington Metropolitan Auto Body Association (WMABA), in gratitude for the association’s support of CTAP in its early stages. Thanks were also given to Sheila Loftus, publisher of Hammer & Dolly magazine, for her support and agreement to profile an apprentice and mentor team each month.
Final thanks were given to Bernie Blickenstaff of Superior Auto Paints who created the original focus group of shopowners over two years ago that led to the creation of CTAP. Without his vision this program would not exist.
The evening was highlighted by the presentation of special awards to Apprentice of the Year Dan Schmidt Of Smoot’s Collision Center in Reisterstown, Maryland; Mentor of the Year Ron Bell of Canby Motors Collision Repair in Baltimore, Maryland; and Instructor of the Year Bill Beever of Advanced Collision Concepts.
There was a moment of silence cast on the evening because Bill Beever, recently selected by the apprentices for the Instructor’s award, died of a heart attack at age 32 just two weeks before the awards night. His family was present in his honor and Mike Polonesi accepted the award on Bill’s behalf.
Halstead closed the evening by putting CTAP in the following perspective. He said, "In 1907 Henry Brooks Adams wrote ‘a teacher affects eternity; he can never tell where his influence stops.’ So it was with Bill Beever, and so it is with us tonight. What we do not only affects the immediate future and next generation, but many generations to come."
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