18
| July/August 2016
DAVEY COMPANY TOUTS CULTURE, STABLE PERFORMANCE
Davey enjoyed a record-setting year
in 2015 for total company revenue,
which rose by about $32 million over
2014. Additionally, Davey's stock price
rose by 5.6 percent, outpacing both
the Standard & Poor's 500 index and
Davey's peer group.
Davey executive leadership shared
that news with a packed crowd at
the Davey Institute during the annual
Shareholders' Meeting May 17.
Joe Paul, executive vice president
and chief financial officer, reviewed
Davey's financial performance and
explained several factors contributed
to revenue growth, leading to record
sales for the following Davey Company
subsidiaries and divisions: Davey
Tree Surgery Co., Davey Resource
Group, Residential/Commercial and
Commercial Landscape Services.
"We are pleased with another year of
consistent revenue growth," Paul said.
TALE OF TWO HALVES
Pat Covey, president and chief
operating officer, said 2015 was a
tale of two halves.
"At the end of the first half of the
year, we were very optimistic. We
set a torrid pace the first six months
and built positive variances in sale
and operating profit after six months."
Covey said. "The second half of the
year was good, but we ran into a little
bit of a headwind in the fourth quarter
as we experienced some unanticipated
budget cuts and shutdowns on some
of our larger utility clients."
Hiring proved tough late in 2015 due to
a low unemployment rate, which fell to
5 percent by October 2015 in the U.S.
Chairman and CEO Karl Warnke reviews
company performance data from 2015.
"Finding people is a challenge for us
right now," Covey said.
In 2015, Davey continued investing in
employees by implementing the Davey
Employee Development (Ed) program,
which assists with the recruiting and
on-boarding process. Once hired,
Ed also aids in the management of
developing future leaders, improving
employee engagement, managing
career paths and ensuring Davey has
successful succession planning.
PEOPLE ARE
COMPANY CULTURE
"We believe people are the company's
greatest assets," said Karl Warnke,
chairman and CEO.
This year Warnke took a new approach
to explaining the strength of Davey's
culture by recognizing six employee-
owners who, together, personify
our culture.
Warnke spotlighted Cynthia Beck,
Scott Carlin, Alexandra Kluczarov,
Eduardo Medina, Lou Meyer and Luther
Sanderson. Each has varying years of
service, unique personal backgrounds,
and beneficial assets and skillsets.
MY DAVEY
President and COO Pat Covey talks
about the business forecast for 2016.
