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THE DAVEY BULLETIN
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May/June 2021
RESILIENCE OF DAVEY EMPLOYEES DRIVES RECORD 2020
REVENUE DESPITE COVID-19 CHALLENGES
ANNUAL SHAREHOLDERS' MEETING
BROADCAST VIRTUALLY FOR SECOND YEAR
The Davey Annual Shareholders' Meeting was broadcast
virtually from the corporate office in May.
Davey Chairman, President and CEO Pat Covey and Davey
Executive Vice President, Chief Financial Officer and
Secretary Joe Paul reviewed the company's strong financial
performance from 2020, gave an overview of operations
for 2021 year-to-date and explained how the resilience of
Davey's employees contributed to another record-setting
year for total company revenue.
"2020 was a year where our employees' grit and
determination were put to the test as we overcame many
challenges throughout the year," Covey said. "The word that
came to mind for many of us was resilience. The tenacity,
determination and resolve that our Davey employees
exhibited are the reasons that we were able to fight through
adversity and be as successful as we were as a company
last year."
A RECORD REVENUE YEAR
The Davey Company reached $1.287 billion in total annual
revenue for the year, which represented an increase of
12.6 percent over 2019.
Davey's year-end stock price valuation for 2020 was
established at $30.00 per share by Management Planning,
Inc. This price reflected a 24 percent increase of the year-end
Dec. 31, 2019, price of $24.20 per share.
The company also reached an operating profit of 7.9 percent,
which is the highest percentage in recent history, Paul said.
He pointed to a variety of factors that contributed to financial
successes in 2020. Utility services won new contracts
in 2020 and were deemed essential workers early in the
COVID-19 pandemic. Wildfire cleanup work and utility
infrastructure hardening on the West Coast, a continuing
southeastern acquisition strategy for Residential/Commercial
(R/C) services and Davey Resource Group, savings in fuel
costs and reductions in travel and entertainment expenses
all contributed to the company's highest operating profit
percentage in recent memory.
"A number of pandemic related expenses, both adverse
and to our benefit, occurred throughout the year which
impacted the operating profit for 2020, but when they were
all factored in, it resulted in an extraordinary year from an
earnings perspective," Paul said.
Above: For the second time in company history, the Davey Annual
Shareholders' Meeting took place virtually due to COVID-19 regulations.
Davey Chairman, President and CEO Pat Covey, along with Davey
Executive Vice President, Chief Financial Officer and Secretary Joe Paul,
shared company information and updates with our shareholders online
in a broadcast from the corporate office board room.
LEADERSHIP
