Restructuring Firm Expands lnto Acquisitions

Pro dealer-focused restructuring specialists Clark Sherman Colvin, Inc., Salem, Or., has a new name and an expanded focus as a private investment firm.

Newly-renamed CSC Capital Partners, Ltd., will seek to acquire, restructure and consolidate under-performing pro dealers into a nationwide chain.

The company currently is exploring opportunities in California, Arizona. Tennessee. Florida and Pennsylvania.

Explains managing partner Clark Colvin: "People don't appreciate the magnitude of opportunities existing for savvy investors who understand that an undervalued and under-managed, earnings-poor, commodity-oriented and incorrectly allocated assetbased industry is ripe for consolidation. Do things the other way around, and you can have an explosion in value creation."

Second and third generation family-owned and operated lumber companies can turn an unproductive business into part of a "nationwide money machine," says Colvin. "Lumber companies have massive amounts of non-productive assets. So, why pay for an acquisition using debt when you can liquidate non-productive or under-productive assets and pay cash?" y' Extensive inventories & services for all your treated requirements: CCA Hem Fir & Southern Yellow Pine, Sunwood P/as'Decking, ACZA Douglas Fir, Interior & Exterior Fire Retardant, Kiln Drying, Remanufacturing & T.S.O. y' Seven locations serving eleven Western states, Alaska and Hawaii Treating Plants: Washougal, w{ white City, 0R; loveland, C0; and Fort Collins, C0. Distribution Centers: lerndale, WA; Woodland, CA; and Mira Loma, CA

He says current acquisitions in the industry seem to suffer in strategic intent. "Acquirers," Colvin explains, "focus on growth for growth sake, and marketshare expansion without a clear understanding of the debt service, distribution and low earnings risks associated with buyouts. Restructurings oriented toward achieving economies of scale are clearly missing. The consequences of such ill-fated plans can be seen all across the country."

What is R^tfr,floo,/Z

WWo/' is an unseasoned, prefinished whitewood fence product, manufactured for environmentally conscious consumers who want a fence board that is factory finished at no cost to the environment. The consumer-friendly prefi nishing process doesn't require special handling or disposal precautions. Like all products from Tubafor, R"t/^I,Woo/' is manufactured and individually graded to exacting standards, ensuring consistently exceptional quality.

'vVhitewood prouides an economical alternatiue to other fencing materials

Quality graded to ensure uniform size, color and appearance

Prestained to saue installation time, labor and expense ffi$ ttendance could hit 2K at the ffi VZf edition of the fast-growing ffiNnwln Traders Market.

During the development of R;1hWoo/, Tubafor had one goal in mind: to produce a high quality, prefinished fence product at an affordable price, without compromising the environment. WWoa/ comes from the largest renewable softwood supply in the U.S.-the "working" forests of the Pacific Northwest, forests managed to balance the need for a sustainable yield of wood products with the needs of fish and wildlife. Wise use today equals resources for tomorrow.

Registrations for the North American Wholesale Lumber Association's 5th annual traders-only show Nov. 2-4 in Dallas are outpacing last year's 1,881, itself markedly higher than the 1,500 visitors in 1998, 1,300 in 1997, and 750 at the first event in 1996.

The market's success stems, in part, from its short, no-frills schedule and focus on business rather than recreation. It is held over a weekend at an affordable and accessible loca- tion. And attendees aren't top executives but rather salespeople and sales managers, the employees who do the actual trading. Strict rules ensure that the attendance isn't difuted (see attendance policy on page TM 6).

"It's a great opportunity," says Ted Roberts of Des Moines, Ia.-based Roberts & Dybdal, which operates l0 distribution centers throughout the Midwest. "It gives our traders the chance to interact with the manufacturers and processors and discuss more efficient ways to distribute products."

The number of exhibitors also has grown, from 103 in 1996 to 157 in 1991,175 in 1998, and 236 last year. Although the show is again being held at the Wyndham Anatole Hotel in Dallas, Tx., NAWLA has been able to rearrange the show floor to accommodate even more exhibitors. "We're adding 20-some booths to the main trade show floor," says NAWLA executive Nick Kent. "Last year, we had to turn away several companies that wanted to exhibit, which disappointed them and us, and was unfortunate for our general attendees, who expect to see the optimum number of exhibitors."

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A companion hall that last year held a dozen software vendors also has been enlarged to make room for more than 35 tech businesses. The "Cyber Connection" will now include a wide range of e-businesses, as well as remain open an hour and a half later than the main show, so exhibiting manufacturers can visit.

In all, NAWLA expects close to 300 exhibitors at this year's Traders Market. "We've supported it from Day One, and we've been very happy with it," says exhibitor Bob Mai, Potlatch Corp., Spokane, Wa. "We send more people from each of our three offices each year. This year, we'll be sending eight or nine people."

Explains Craig Broady, Pope & Talbot, Portland, Or.: "Nothing beats calling on a customer at his place of business. Second best is calling on a customer in a neutral area. And the Traders Market allows you to see more cus- tontct-s in a slroftcI lilltount ()l tirne thlrn vott othct'nisc cottlcl llnc itt tuit nronth\ tt1'tlaVcl."

Ilonicallr. Btoltlr. rrotr otrc ol thc rrlrlket'r biu!crl lroo:lcts. hlttl bccrt iill I'irr l\ 'k,'l)l i, . \ l,'rr \ \':ll - .rl(,. ' Brolrlr sa\s. "\\ hen thcr lir-\t pro 1-ro:crl holrlin! l'l-raclcls Markct. I \\ ls sonrc\\ hilt ncgati\ c on tlle iclclt. Altcr erpcriclrcirtg tltc crtntlLct scssiorrs at thcir- anrtual rrrccting. I llrd \ol)le rcscr\ at ions about attcndlutcc ancl othcr issucs. But thcv dccidccl ttr hold the 'f lutle rs \lalkct. r', e rclttctantly clccideci to crhibit. anrl bov ! il r,n as u l l3O-rlcgrce difftle Ircc lkrm ri hut I had expcctccll"

To kccp utten(lccs coming back year al'tcr ycar'. NA\\'t-A not onlr lras addecl ntore erhibitors. but ulso ttcu

Who lhoy Ailend

Bona fide wholesalers, as defined by the NAWLA Bylaws and including WholesalerProcessors, are invited to attend the Traders Market as non-exhibiting registranls.

Exhibiting manufacturerso exhibiting wholesaler-processors, exhibiting service providers and exhibiting importers of offshore products may attend.

Primary manufacturers, service providers and importers of offshore products who are not exhibitors, as well as manufacturer representatives, retailers, buying cooperatives. bui lder/contraclors and others who do not clearly satisfy the NAWLA Bylaws definition as wholesalers or wholesalerprocessors are not eligible to attend.

Only registrants possessing valid credentials and wearing their show badges will be permitted entrance to the show floor or to any other Traders Market function.

For more information, call NAWLA, (800) 527-8258 or (847) 870-7470.

cclucationuI progranrs. r'i ith an errrpha sis on e-conmrerce (.\.'(' rt'lttled .slort. tt. TM :()t. Neicllltele.s. irJri..'' Kcnt. "lnrclcrs shoLrlcl conre on a rcgtllal basis. We opcrate in a very J1 nlrrttit itt.lLrrt|r. \\'e .trr ttt r'otltltel by phonc. fax and clcctronicallr. bul thelc's nothing bcttel than looking

GUESSING 9JI. SOARING PRICES

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.' \!'ll l'.,'l'1, llt,llr llrl\,'llrr, \llr i :re ' (()l)tinur-(l lon! lcrnr qf()\\ llt l0r' 1]tc rltt)\\ '.srt lott" ,r ,, \'orlllnur'\ l() he lltf \illllr'l\|!'r)l .horr,. I',1 kccI it lrttirt-tlrrl-rlc \() \()tl elrr \lill serrtl il l()t ()l p.()l)lc. lrtLt ntosl I,r :0 lirn! lt\ lt rl()r'\tt 1 lr!'r'1)lllt' tlilutttl. Il :llrtle tl ()Lll ir\ ir u ootl It'otl ue 1\ \lr{i\\. illlrl thcfc lre e n rotttt'

$ckedu*e sf ffiwem$s

Thursdoyr llovemher 2

8 a.n.-5 p.nr. Iler:istration Desk Oltcrt

9 a.rn.-il p.nr. [r-('tlnrntercc Forutn':' ' Reqirirtt'\'Irl.ll(' I'('Si\ll xti('11 Noon-S p.m. lirhibitor Set-up

5-6:J0 p.m. Earlybild Ctrcktail Party

Fridoy, ilovember 3 ll a.nr.-5 p.rn. Re-uistlation Dcsk Open

8 a.t,r. Exhibitor Set-up Continues

8:10- l0:ll) a.m. Etlucationul Program: "'l-enring 'fhat N{onste r on Your I)csk *-Ll't'ectively Using 'I'cchntrkrgv in Your Selling Role" b1, [3rlbitra Montes

10-l l:15 a.nr. ''Soffwooi-l Lunrbcr Agrccnrcnt Update" b1 .lon

AndL-rson. Rtuttl r nt Le rt gl lt s

1 I:;f5-l p.nr. All-Deleglte l-uncheon, \\'ith Ke\,notc Speakers Jon Wec and Ou'cn IVkrlsc l:15-5:30 p.nr. 'l'radcrs Nl[arket Opcn

5:30-6:J0 p.nr. lce Brcaker Reception

Soturdoy, llovember 4

7:30 a.",.-4 p.rn. Registration Desk 0pen tl-9:15 a.m. Magellan Clutr lJrclklast*: "Clobll Wood Supply ancl lncreasin-! (iornpetition: What in thc World Does It Nleau to You']" b1, Russell E. Taylor

" Ilcrltri |cs .epulat(' re.!.r isllilti( ln 9:-l()- I 0:'15 a.m. Educationrl Plogram: ''ldcntitying New Markct OpportLrnities"

Grades Defined

Clear lVf,l allows small natural defects (up to sixhalfinchor smaller) on an occasional panel.

Premium 6 Patch 303-6SW allows up to six small solid knots and knot holes that have been filled with cedar toned exterior filler.

303-185W allows up to 18 of the same type of repairs.

303-SR Select Knotty can contain more than eighteen of these same repairs.

Three Sizes

4'x8'-4'x9'-4'x10'

Four Nominal Thicknesses

11/32" - 15132', - 19132', - 23/32"

Groove Patterns

T-1-1 1 4" or 8i' Reverse Board & Batten 12" Channel 4" or 8i Ungrooved, Kerf 4" or 8i V-6'

TWo Surface Textures

Roughsawn - Brushed modification to that. But if it gets to be paint and hardware and everything else, then you're looking at something like the Builders Show, and that's something we choose not to participate in."

CedarPly exterior sidings are sold through a nationwide network of wholesale distributors. To locate the one nearest you, call 1-800-426-7017.

CedarPly meets or exceeds US Product Standard PS 1-95 and APA-The Engineered Wood Association specifications for Performance Rated Siding. See K-Ply Product Data Sheet for CedarPly for technical, handling, installation, maintenance and finishing information.

Indeed, Roberts & Dybdal's Roberts, current chairman of the Traders Market Committee. is warv

of just this threat.

"We would like continued healthy growth, but not at the expense of the show losing its focus," he says. "The show has had very able leadership that has charted a healthy course, and I've tried to maintain that healthy course, but also tweak the dial just a bit and add some pertinent educational forums for the participants."

Whar b ilAWLA?

NAWLA is a trade association of over 600 leading forest products and building material industry wholesalers, manufacturers and industry affiliated companies throughout the U.S. and Canada.

The group, whose wholesaler and wholesalerprocessor member's combined 1999 sales exceeded $25 billion, is dedicated to enhancing professionalism and efficiency throughout the lumber distribution channel and to the responsible use of forest resources.

The forest and building products industries within which NAWLA members operate has highly developed characteristics that help to shape the role of both the wholesale distributor and the role of NAWLA. The indusry is highly diversified both in terms of product and geography. Aside from species differences, products of fhe ffee include solid lumber, veneer and nonveneer panels, manufactured products such as fencing and decking, and much, much more.

NAWLA's role is to aid wholesale distributors in addressing and solving common industy challenges in the areas of transportation, government and environmental regulations, e-commerce and technology, and ongoing education.

Two of otu fa,rnily portraits.

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E-Opportunities For Troders

This year's NAWLA Traders Market will tackle wholesale lumber e-commerce issues on numerous fionts with the addition of enhanced. cyber-related events.

At an expanded Cyber Connection exhibit area off the rnain exhibit hall, 30+ cyber-related companies will be on hand to discuss their products and services and suggest solutions to attendees' current e-commerce needs (,see li,st below und e.rhibit hall map on p. TM l4). Attendees can even stay in touch with their customers and the office by checking their e-mail at two dedicated e-mail kiosks in the Cyber Connection.

As well. the day before the show opens, NAWLA is holding an E-Commerce Forum. Questions to be addressed include: How can doing business over the Internet help my cornpany? What is a portal? Who really buys and sells products via the Internet, anyway?

The day will begin with a videotape of the November l''National Association of Wholesaler-Distributors' satellite broadcast of "Success on the Internet: Real World Strategies for Wholesaler-Distributors." The video will feature successful wholesaler-distributors and industry experts who will provide critical insight into strategies that can lead to business success on the Internet.

Following the video and a bufl'et luncheon, a panel of speakers representing many different models of e-commerce will be present to discuss/defend their particular products/services, including portals and auctions. The panel will include Ross Elliott, Buildnet; Keith Russell, ForestExpress.com; Jim Clarke, LumberNet.com; Arnold Kraft, e-Wood.com; Alain Chalifour, Scoopsofi.com, and Joe Perraton, Forestlndustry.com.

As a follow-up to the speakers panel, a roundtable discussion will allow participants the chance to assess and fbrmulate their own "e-business" plans. Attendees will be able to engage in discussion regarding a business model that they would like to learn more about and discuss the pros and cons of a f'avorite model.

The all-day Nov. 2 seminar, which includes lunch, requires separate admission of $125 per registrant.

Cyber Connection exhibitors include:

Channelinx.com Booth C523

Conduit C52l

Distribution Management Systems Inc. C500 eFlatbed,com e-Wood.com Inc.

First Svstech International. Inc.

Keymark Enterprises Inc.

Ltse Lumber Systems.. Inc.

Lumber IQ

Lumber Net

NxTrend Technology. Inc.

Pro-Com Integrated Software

Progressive Solutions Inc.

RDB Solutions Scoop Software Corp. Spruce