From Mikee Johnson, Cox CEO
The wood treating industry has been viciously beset by the economic climate of the last three years. We recognize most of our customers have experienced the same catastrophic impact in one area or another. As housing plunged approximately 68% in the Southeastern market, this hit residential and industrial customers alike. At each of our quarterly Board meetings over the past three years, we have spoken most often and most admirably about our extensive customer base, our devoted vendor base and our committed shareholder base. Please indulge me while I boast on these three groups for the remainder of my time.
While we are extremely blessed to have a broadly diversified geographic customer base, this economy has left no part of our Nation unscathed by its wrath. However, we have celebrated the strength of our customers in each and every area of the country we serve. From Maine to Miami to Texas on to Taiwan, China and Europe to Mexico and the many Caribbean nations, we have been rewarded by investing in businesses that invest in themselves. In our 56 years, Cox has never had a year where we experienced more than 1/10th of 1% of our receivables defaulting. In fact – YES – IN FACT – the last three years have been no different. Our current Board continues to applaud you from the Boardroom. As I speak regularly with past Board members, they continue to remark in amazement at the strength of our receivables. Actually, what they are saying is our customer base is a strong one. We recognize your strength and know our competitors recognize it as well. If we are not delivering the value of a deserving customer, I hope you will let me know. I say to each of you, whether you are an electric cooperative, a retail building supply, an investor-owned utility, a marine contractor, an OEM manufacturer or one of our ultimate end-users, THANK YOU.
As important to our success are the many vendors that allow our quality to exceed the expectations of our customers. We must remain competitive as the margins in our industry compress in the face of the massive economic deleveraging. You continue to recognize the conditions and furtively estimate our requirements. We are rarely disappointed by any of vendors. Whether we are sourcing, a particular wood preservative, forklift tires, technology services, lumber or timber, we value our partnerships equally. We continue to be pleased as our vendor partnerships evolve over time adjusting to more erratic markets and new industry demands. To all of our vendors, THANK YOU.
Finally, behind all of our efforts are the many employees of Cox Industries and our investors. We have experienced quite a shock to our system over the past few years. We have mothballed two facilities due to technology and capacity improvements, we have discontinued products when the market has passed them by and we have reconciled each and every business unit to prepare for the uncertainty ahead. I expect few of our customers and vendors have noticed the assault on our company as we have improved service levels and grown volumes with our vendors. We have been blessed to have held the level of our business after the initial shock of the massive economic implosion. This year has seen a return to top-line growth and will mark our 56th year of profitable returns for our investors. While we do utilize an operating line of credit from our bank, our shareholders have redeemed less than 1% of their ownership in the past three years. Our team remains a committed team. THANK YOU.
We look forward to 56 more good years. Thank you to our customers, vendors and stakeholders. See you soon.
Cox Industries Inc. Blog 