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This year’s theme reflects the rapidly changing world and how it affects our business. To quote author Thomas Friedman, “The World is Flat” and intense competition is the name of the game. This annual report will show that the Scott-McRae Group is In Gear For the Future.


H E N RY “ T I P ” G R A H A M , J R .

Companies that are adaptable have the ability to succeed in an ever changing market with unpredictable outside influences. In this past fiscal year, the Scott-McRae Group team has seen a slowing economy along with dramatic shifts in automobile manufacturers’ market shares. Our ability to make the necessary changes in this dynamic marketplace has made this another successful year. While performance results were off as compared with the last two years, the Scott-McRae Group still recorded its third best profit year. I appreciate all of the hard work and leadership of the Scott-McRae Group team in this challenging year. Beginning with our new fiscal year FY ’08 Larry Matheny, CFO, and Bruce Ivey, Vice President of Human Resources, will move to new career positions with the Scott-McRae Group. In FY ’08 Larry will serve as Chairman of our Audit Committee and Bruce will work with our Legal Team. Please join me in thanking Larry and Bruce for their many years of leadership and contributions to the Scott-McRae Group. I would also like to congratulate Jeff Curry, who will take over as the Scott-McRae Group CFO with the start of our new fiscal year. E-commerce, using the rapidly expanding Internet market, has dramatically changed the way vehicles are researched and sold in the automobile industry. E-commerce has grown over the last several years to be the most significant sales approach for our industry. Almost a decade ago, the Scott-McRae Group started a technology journey from “dumb computer terminals” to a safe and reliable technology platform open to the new Internet. With a substantial investment in time and funds, we have made it possible today for the Scott-McRae Group to become a leader in e-commerce. Today Internet advertising revenue exceeds $12 billion each year and about one-third of this spending is in the automobile industry. Over 80% of automobile customers use the Internet to purchase vehicles. In the Scott-McRae Group 25 to 50% of all vehicle sales are created and negotiated on the Internet. Service appointments are scheduled by customers and are followed up using the Internet. The Scott-McRae Group, with the help of Scott-McRae Advertising and our Technology Team, will give all of our divisions the support they need to take advantage of this significant market opportunity. In the late 1990s the Scott-McRae Group made a major investment in an unknown Internet future. As we enter the new fiscal year of FY ’08, our company is focused on this very profitable e-commerce opportunity in our industry. Sincerely,

Tip Graham, President/CEO


D AV I D C. H O D G E S, J R .

The Scott McRae Group recorded the third best year in the 91 year history of the company. We’ve completed a year of great progress: adding a new dealership; completing a US Auto Credit computer conversion; and developing a program to groom internal talent. Operationally, each platform provided key contributions. US Auto Credit’s new technology enables us to manage our portfolio more efficiently, as well as use existing data to develop an internal scorecard. Both dealerships in our Tampa Automotive Platform broke all-time profit records under the leadership of Bill Long, Greg Rothfeldt and Tony Swain. Currently we are in construction on a new facility for Brandon Honda, which should be completed during our next fiscal year. Scott McRae Advertising continues to provide award-winning service to not only our divisions, but to businesses across the region. The agency is poised for continued success. Duval Mazda at the Avenues became the company’s eighth dealership and 11th for profit division in November 2006. The North Florida Automotive platform now gives Blase De Leo executive oversight of six dealerships, four in Jacksonville and two in Gainesville. Dan Hodges and his team at Duval Acura are to be congratulated for their record breaking year. The Management Advancement Program (MAP) has been launched successfully and our internal training initiatives are preparing the next generation of company leadership. I would be remiss if I did not recognize the exceptional contributions of Larry Matheny and Bruce Ivey over the last two decades. We are fortunate to have these two men as part of our team in the years to come as directors and mentors. Jeff Curry will assume the Chief Financial Officer role on April 1, 2007. I am very excited to work with Jeff as we both look to improve our business and enhance our company to each of our stakeholders. As a company, I am confident our best days are ahead of us. Our people are our competitive advantage, and I thank each of our 1019 employees for their efforts this past year. As a group, they are ready to make FY 2008 one of our finest years as we put it in gear for the future. Sincerely,

David Hodges Jr., Executive Vice President/Chief Operating Officer

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FY07 turned out to be a very challenging, yet rewarding year for the Scott-McRae Group. As we look forward to FY08 and beyond, we are excited about the possibilities and are actively preparing to face future challenges. Our financial success is a direct result of the talented and dedicated support teams who anticipate market trends and evaluate potential risks. These support teams include IT Support Services, Human Resources Support Services, Business Support Services, and Legal Support Services. Our IT Support team is dedicated to the task of making sure our critical operating systems are operational and ready for business every day. In addition, our team is making a substantial investment in new technology to ensure our customers have a world-class experience when communicating with our business units on-line. Recognizing that people are our most valuable asset, we also have a very strong Human Resources Support team. This team of professionals works tirelessly to screen, hire, and train the best employees for Scott-McRae and has played an integral part in the formation of the Scott-McRae University and our Management Advancement Program (MAP), which we believe will help keep us on the leading edge in our industry. Business Support Services is our Accounting and Financial group, providing timely and accurate financial statements as well as critical financial analysis to assist our management team in recognizing important market trends and in making timely, profitable decisions. Finally, our newly developed Legal and Risk Support Services team protects the interests of our company by identifying and reducing high risk areas. They keep us adequately insured, as well as providing the first line of defense against any type of legal action brought against the company. With great brands, great people and operations in dynamic markets in the Southeast, this dedicated team at Scott-McRae is “In Gear for the Future� and ready to take on the next decade! Sincerely,

Jeff Curry, Executive Vice President/CFO




Tampa Platform President/ Partner/Director

Financial Services Platform President/ Partner/Advisory Director

North Florida Automotive Platform President

We finished a strong year in FY07. In building on that success, we look towards the next generation coming along and we see the “Power of the Internet.” Honda is the number one automobile manufacturer among Internet shoppers. Over 80% of all Honda buyers visit the Honda website and do their research on the Internet. Honda lends itself towards younger buyers who are demanding and smart. To capture this market, we must be prepared to deal with this new group of customers. At Tampa Honda Land and Brandon Honda, we have increased our staff levels in the Internet departments. We have new state of the art websites and our response time is second to none. More and more Honda customers are using the world wide web to do their automotive shopping. Our commitment to new technology and superior Internet service will propel us forward into the future.

Despite an increasingly difficult lending market in calendar year FY06, Financial Services was able to maintain its growth while developing a plan for FY08. Autolease was pleased to fill its President position (vacated when Sidney Wells moved to the dealership side) with John Gillette, an experienced automotive industry expert. Other changes saw Jeff Curry moving into the ScottMcRae Group CFO position and Glynn Wimberly retaking the reigns of Auto Credit. The development of the new DayBreak software means that Auto Credit can continue its growth pattern and handle business more efficiently. Look for continued expansion at Autolease as the new President refocuses efforts.

The Scott-McRae Group’s North Florida Platform had a busy FY2007. Not only did we open Duval Mazda at the Avenues, and welcome 33 new associates to the ScottMcRae team, we also implemented several strategic leadership changes resulting in positive and well-deserved outcomes for our people and our business partners. In Jacksonville Dale Murray accepted the position of President/ COO of Duval Ford, and Steve Taylor was named President/COO of Duval Mazda at the Avenues. In Gainesville, Kevin Snyder is the new President/COO of Duval Motorcars and Sanjay Prakash accepted the position of President/COO of Duval Mazda Gainesville. The North Florida Automotive Platform Associates, in concert with our Human Resources, IT, Advertising and Business Support Services partners are without a doubt, “In Gear With the Future!”




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FINANCIAL HIGHLIGHTS The Scott-McRae Group completed a challenging, but strong year in FY07. Following back to back record breaking profit years in FY05 and FY06, we completed the year with the third best profit year in Scott-McRae history. Here are some of the highlights:














Brandon Honda established its all-time profit record in the Tampa platform Duval Acura and Duval Motorcars set new all-time profit records as part of the North Florida platform We opened Duval Mazda at the Avenues in November and it has been profitable from the very first month U.S. Auto Credit opened offices in Orlando, Florida and Charleston, South Carolina U.S. Auto Credit completed conversion to the Day Break Lending Suite software, which will support our future expansion plans Scott-McRae Group closed the fiscal year with 1019 employees We are looking forward to FY08 with great anticipation. Our group is planning a double-digit profit increase over FY07 and we believe we are poised to achieve our plan.

IN GEAR FOR THE FUTURE A lot has changed through the years but one thing that has remained the same is that the ScottMcRae Group has always been on the leading edge. It is extremely relevant since today’s global marketplace is witnessing the arrival of the next generation of customers. They’re smart, they’re digitally connected, and they expect and demand different things from any other generation before them. Think about it. This new generation called the Millennials or Generation Y or Baby Boomlet is actually larger in size than the Baby Boomers. It has never NOT KNOWN computers, counts its social networks digitally and is used to working in groups. They seek organizations they can trust. They will affect everything from the Scott-McRae Group’s culture of work to how to sell a car. The ability to communicate with this generation will involve the interconnectivity of the Internet, cellphones and social networking. They don’t read newspapers so advertising will have to focus on where they are – broadcast and Internet – and be able to break through the clutter. They are seeking brands that they can trust and the Scott-McRae Group has them. The Scott-McRae Group was one of the first automotive companies to have an in-house IT department to service its needs. The company is now researching advancements in e-commerce to add to the already successful Internet Business Development groups at the stores. Many of our brands offer hybrids and our stores have areas that allow customers to purchase personalization accessories that drive this generation. So despite being 91 years old, this company is in gear for the future.

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D U VA L F O R D Duval Ford, the flagship of the Scott-McRae Group, is proactively focusing on the future. Two things have led the way – a focus on customer retention through a Service Rewards Program similar to the American Express point rewards program. Every car purchased at Duval Ford is automatically enrolled in the program at no cost and can save as much as $2500 in service work as well as providing a $500 voucher towards the purchase of their next vehicle. As Jacksonville continues to grow and change, the value of being able to communicate to new markets will be paramount. Northeast Florida has a growing Hispanic population and 23% of the vehicles they buy are Fords. This largely untapped market will be one we will pursue in the immediate future. Focus for next year includes winning the President’s Award, increasing service penetration in the market and government sales. The Duval Ford Government Sales department is consistently in the Top 5 in the nation for vehicles delivered and the goal is to become #1. Duval Ford has continued its generous donations to the community, raising funds for the American Lung Association’s Blow the Whistle on Asthma Walk and the Susan G. Komen Race for the Cure.

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THE DEAL “We own two Ford vehicles that were purchased from Duval Ford…We were in and out in an hour and a half. We got the deal we wanted. We will come back again.”


-Patricia Reed, Duval Ford Customer

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THE BEST “My experience with the service department at Duval Honda is the best I’ve ever had at any dealership. No one has ever touched my car except Duval Honda no matter what – from oil changes to 60,000 mile services.” -Wayne Priest, Duval Honda Customer

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D U VA L H O N D A Duval Honda’s approach to the marketplace is to continue to reach out to all customers, including the Generation Y/Millennials. A first step will be the collection of email addresses and cellular phone numbers, a must since most of the younger generation does not have a “land line.� With high tech displays in the Toy Store promoting the all-important personalization of your ride, Duval Honda is uniquely positioned for the future.

The store continues to be successful and is recognized through such honors as being a two-time winner of the Council of Excellence Award from American Honda. The staff will continue to focus on retaining service customers and the success of our Express Service is a top priority.

Duval Honda and its employees definitely love to have fun in the process of benefiting the community. Our annual dunking booth to raise funds for the American Lung Association is always a huge success. A group of employees also dressed up to play St. Nicholas for area school children who would not have a holiday without them.

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D U VA L A C U R A Duval Acura had a record setting FY07 and much of it was due to conducting management, service, and sales training programs at the “speed of light.” Dave Anderson’s training programs have helped to dramatically increase the number of appointments from sales calls and, with split floor sales teams, managers have been able to focus more on individual training needs. Training has also led to continued growth in service of 18% over FY06 as well as improved ACE scores by decreasing the length of time needed to complete each service. Duval Acura is also proud to say that we are the only dealership in town with a delivery specialist to assist each new and certified customer. The Employee Recognition Program has become an important and unique way to recognize excellence. Employees receive a sock with their name and customer’s name and date on it when the customer takes the initiative to notify management of “having their socks knocked off.” With a goal to become the #1 Premier Acura dealership in the state of Florida, the Duval Acura team is well on its way by winning the 2007 Precision Team Award, 2007 EXCELL Validation, COSE Platinum & Gold Sales Awards and The Professional Services Awards. This commitment to leadership is also shown in the long list of community activities supported by Duval Acura’s employees. They have supported United Way through a relay race fundraiser; held a luncheon for the American Lung Association; adopted a family from Hubbard House which shelters abused women and are a business partner to Mt. Herman School for Exceptional Students.


RESEARCH “I currently drive an Acura TL. This is the second purchase I made at Duval Acura. I did a lot of research and had a lot of choices but I decided to purchase from Duval Acura because of their service.� -Courtney Meek, Duval Acura Customer

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2007 MAZDA 6

A L L T H E W AY “I drove all the way from Orlando because of the great customer service at Duval Mazda. I bought a Mazda 3 brand new and I love it, love it, love it. Coming to Duval Mazda at the Avenues was well worth the drive.� -Jennifer Hendricks, Duval Mazda Avenues Customer

D U VA L M A Z D A AT T H E AV E N U E S Nothing speaks to the future more than Mazda’s Retail Revolution and that is epitomized by the new Duval Mazda at the Avenues. This stateof-the-art facility includes wireless Internet, the Mazda café and a game system. With a strong emphasis on Internet marketing that is directly aimed at the Mazda demographic, the November ’06 opening of this store has been extremely positive.

The staff of Duval Mazda at the Avenues already focuses on the different kind of buying experience the Mazda customer is seeking. Because of their Internet skills, many sales conversations are held electronically via email with the customer only visiting the store for delivery. The layout of the store, with its many computer kiosks, affords the chance for those who do venture in before the sale to “build their own vehicle.”

With just a few months of operations under our belt, Duval Mazda at the Avenues is committed to be the premier destination in the local market as well as an active supporter of the community through sponsorship of select charitable events and organizations.

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D U VA L M A Z D A OF GAINESVILLE Duval Mazda of Gainesville has made a full commitment to market, advertise and conduct its business utilizing the Internet. As more and more of Mazda’s demographic becomes the most tech savvy group, it only makes sense to communicate on their terms. This group distrusts traditional advertising and uses third party sources to validate information. In addition to the Duval Mazda of Gainesville website, all collateral material will include the website URL and the store will capture emails to continue to build its database.

Seeing is believing so Duval Mazda plans to heighten our brand awareness by displaying cars throughout the community. The store is well on its way to increased recognition by being named a Gold Cup Award winner as a top performing dealer.

“Dreams Come True” at Duval Mazda of Gainesville, both for car buyers and the community. The store and its employees support the “Dreams Come True” organization which turns dreams into reality for children with life-threatening diseases. We also support ElderCare of Alachua County and the American Cancer Society.

2007 MAZDA 3

I M M E D I AT E R E S P O N S E “We shopped online and got an immediate response from Duval Mazda of Gainesville. We were ecstatic and came in and bought the car.� -Tara Shofnos, Duval Mazda Gainesville Customer

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INTUITIVE “I saw Duval Motorcars on the Internet. I was doing research on Jeeps and hadn’t realized they were in the area since they were new to Gainesville. Their website was good, intuitive. It had the information I needed and was easy to maneuver.” -David Page, Duval Motorcars Customer

D U VA L M O T O R C A R S Duval Motorcars spans a broad spectrum by offering both MercedesBenz and Jeep vehicles. Mercedes-Benz, considered to be a brand most people aspire to own, has reached out to a target audience that is younger in age than previous years. Combined with Jeep’s hot new Wrangler, Duval Motorcars is in gear to serve the growing Millennial target market.

The recent appointment of Kevin Snyder as President/COO will bring continued focus on “people, process and pride.” These three simple words are the key to getting ready for tomorrow, today.

Look for this store to continue to reach new highs in market share and customer satisfaction.

While all of this is going on, Duval Motorcars is also focused on supporting the community. We support the American Cancer Society, American Lung Association and the Alzheimer’s Association Walk.

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TA M PA H O N D A L A N D After completing a very successful FY07, Tony Swain and the staff at Tampa Honda Land are continuing to look to the future. With a focus on staffing, the Internet division and customer retention, it looks like FY08 will be even better.

The Internet Department has the capacity to drive sales in all areas of the business at the store, particularly since Honda customers are so web savvy. Besides the traditional sales area, the Internet can also be helpful in the Fixed Operations side of the business promoting Quick Lube services, Express Parts Delivery and other services.

The ultimate goal at Tampa Honda Land as we continue to drive CSI and TSI percentages up year-over-year is to continue to provide customers with the best experience possible.

This positive approach has also extended to our community involvement. The store and its people believe that being environmentally responsible is critical and have participated in the certification process to be a Green Star dealership as well as Honda’s Road to a Cleaner America program. Other community agencies benefiting from Tampa Honda Land’s charitable initiatives include the Salvation Army’s Angel Tree Network, the Childrens’ Home Society, American Lung Association Asthma Walk, Susan G. Komen Breast Cancer Foundation and John Walsh’s DNA Program.


S P E C I A L AT T E N T I O N “I’ve bought two vehicles from Tampa Honda Land in the past two years. My husband and I love Hondas but we especially love the service and special attention we get at Tampa Honda Land. The dealership has a huge selection and great incentives on buying new vehicles. Appearance is important and the dealership is friendly and very clean.” -Nicole Dee, Tampa Honda Land Customer

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FA M I LY “Brandon Honda treats me like family. They always welcome me. Everyone greets me – sales and service. I never miss a routine service!” -Barbara Redenbo, Brandon Honda Customer

BRANDON HONDA Since Honda has top of mind awareness with the Millennial generation, Brandon Honda has made it easy for potential car buyers to view the product. The store has supported local school projects which showcase new Hondas to the students. Creating an updated, state-of-the-art Brandon Honda website and recruiting for young employees from colleges and hip retail outlets like Circuit City and Best Buy complete the picture.

The approach is working as Brandon Honda has cultivated a growing population of Honda buyers—-resulting in year-over-year sales increases the past several years. A continued emphasis on our processes, people who believe in our vision and additions to our Internet sales area mean that the horizon is truly brighter than ever before.

Brandon Honda will continue to be very visible in the community through our good works. A small sampling of what was done over the past year includes support for United Way, building at fence at a nursery for the Child Abuse Council, helping the Salvation Army make the holidays for needy children, sponsoring a golf tournament for the Susan B. Komen Foundation, and support for Cross Bayou Elementary and Apollo Beach Elementary.

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U. S. A U T O C R E D I T U.S. AutoCredit made the switch to “light speed” to borrow a line from George Lucas’ Star Wars when it fully converted to a new software system this past year. With Daybreak providing more detailed information and full integration with accounting, we will be able to move to a “virtual” (paperless) world which can only help to expand and speed up the pace of business.

This digital move will allow us to continue to expand our footprint in the Southeast. The Internet also allows us to personalize our training for employees. Consistent training to teach the “AutoCredit way” is both a priority and an opportunity for us. By teaching best practices and adhering to them both employees and customers will have an even greater experience with U.S. Auto Credit.

Each of the Auto Credit offices gives generously back to the community. Examples of the tops of nonprofits that receive support include the American Red Cross Blood Drive (Macon), The Hosea Williams Feed the Hungry (Atlanta), the Friendship School Supply Drive (Winston-Salem), the Susan G. Komen Race for the Cure (Greenville), March of Dimes Annual Walk-a-Thon (Knoxbille), Battered Women’s Shelter (Charlotte), supporting our soldiers in Iraq (Chattanooga), United Way (Jacksonville) and the Salvation Army (Nashville & Raleigh).

BACK ON TRACK “We at Auto Credit believe bad things happen to good people and it sometimes affects their credit. We give them a chance to re-establish their credit and get back on the right track.� -Mary Hove, Marketing Assistant/Auto Credit of Florida

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10 YEARS/ 50 VEHICLES “I am a ten year customer of Autolease and I love them. Without them I wouldn’t be in business. They leased me my first vehicle and since then I’ve leased 50 vehicles from them.” -Steven Betros, Autolease Customer

AUTOLEASE The sheer size of the Millennial Generation means that Autolease needed to focus greater energy on this market. Starting with area middle and high schoolers, this division plans to explain the concept of leasing and its value to buyers. Email and the Internet will continue to be a form of both communication with and advertising to this group. Look for Autolease to ensure that these tools are cutting edge.

Since Jacksonville is a vibrant growth area with tens of thousands of new homes planned, this creates a great opportunity for Autolease in the areas of vehicle and equipment leases for construction of new homes, community infrastructure and commercial buildings.

Though in terms of number of employees, Autolease is one of the smaller divisions of the Scott-McRae Group, it has a big heart. During the past year Autolease employees having actively supported the Comfort Campaign for the Florida Highway Patrol, collecting new or gently used teddy bears to give to children during times of trauma. We also participated in the Blow the Whistle on Asthma Walk to benefit the American Lung Association of North Florida and sponsored the Forgotten Angels program at the Salvation Army.

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S C O T T- M c R A E A D V E R T I S I N G Advertising by its nature is all about communicating new ideas, new products and new concepts. In order to do so effectively, a good advertising agency has to keep on top of market trends and research about the various target audiences.

Scott-McRae Advertising is uniquely qualified in this area because of its focus on obtaining research that pertains to client markets, attending industry forums about trends in the business and utilizing input from its young staff on what targets such as the Millennial generation are thinking and doing.

The agency’s growth over the past several years has been with clients that are not part of the Scott-McRae Group. As the reputation of ScottMcRae Advertising has grown, new opportunities in public relations, media planning and buying, as well as with banking and business to business clients have presented themselves. We are all proud that over 50% of our business has come from non-Scott-McRae companies and will continue to seek out these outside sources of revenue.

While doing so, we don’t lose sight of the fact that we can contribute greatly to the welfare of our community by donating our time and talents. This past holiday season the staff was all touched by the needs of homeless children and purchased holiday gifts so that homeless families served by Community Connections would have something to celebrate.

G E N E R AT I N G A B U Z Z “We were so focused on producing results that we didn’t internally have time to tell anyone about our successes. Scott-McRae has taken our stories and generated a buzz about community development in Jacksonville, and they have positioned LISC into the center of this buzz. Both their creative and public relations are top-notch.” -Joni Foster, Senior Program Director, LISC Jacksonville

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SMAG SUPPORT In business, every minute counts and the focus at Scott-McRae Group is always on the bottom line. Sometimes, however, the support divisions of the company fly under the radar in receiving well-deserved kudos for the work they do to help the various divisions. Where would the Scott-McRae Group be without its support services? There would be no payroll, no bill paying, no one to fix the computers and no one to help with health insurance claims. Clearly these types of services help to make our business hum. At the Scott-McRae Group, the following support services are in place: Legal Support – Charlie Howell, III, Esquire recently joined the Scott-McRae Group as in-house counsel. This division assists in efforts to be proactive in identifying risks and opportunities Business Services – this area contains the all-important accounting functions including payroll and accounts payable. This group understands the need to provide information in a timely fashion so our divisions can make smart, profitable business decisions. IT Support – in today’s business world, this area is critical for sales, service, and communications. This talented group ensures that all the systems are functioning and are in line with Scott-McRae goals. HR Support – with over 1,000 employees in five southeastern states, this group is responsible for personnel recruitment, selection, training, compensation and benefits, labor relations and negotiations and personnel information. Administrative Support – the increased demands on senior staff as the company expands requires that administrative support be talented and multi-tasking. Landscape and Maintenance Support – Positive brand image includes how all our businesses look to customers and vendors. This group enhances that first impression. Scott-McRae Advertising – Though both a support service and stand-alone business, the same wide range of creative services including public relations, media planning and buying, Internet advice, market research and ad creative are available to all divisions.

SMAG UNIVERSITY/MAP PROGRAM The new Management Advancement Program at the Scott-McRae Group provides what all young people starting out in a business seek – a career path and education.

The program was developed by Human Resource Vice Presidents Ashley Drugg (North Florida Automotive) and Marni Dorman (Tampa) under the direction of Executive Vice President/COO David Hodges.

With continued growth of the Scott-McRae Group on the horizon, many highly-skilled managers will be needed. The MAP program is designed to identify and train individuals for a wide variety of career tracks in the automotive business.

Prospective employees can apply or be nominated by their managers. Once selected, they will be placed in a dealership selected by the Scott-McRae Group for each phase of the program. Training will involve the different duties at the store level and will be personally monitored by the dealership president/COO as well as other senior executives from the Scott-McRae Group.

Once a prospect has completed one phase of the program, they will move on to the next phase. Career tracks will include General Manager, General Sales Manager, F&I Director, Used Vehicle Director, New Vehicle Director and Fixed Operations Director.

The inaugural MAP class will be in training starting this spring.

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COMMUNITY OUTREACH & S C O T T- M c R A E F O U N D AT I O N Jacksonville Magazine named the Scott-McRae Group one of the 25 Companies That Care in January, 2007. But the mission to support the communities where we work by being a good corporate citizen started 91 years ago with flagship store Duval Ford. Today, there are a number of levels of community giving that occur in the organization. It starts at the top with the Scott-McRae Foundation and continues with division activities and individual employee support. The Scott-McRae Foundation was founded in 2006 as a 501C3 nonprofit organization. The trustees of this group meets monthly to establish guidelines for giving and to review opportunities to make a difference in the community. The Foundation focuses on issues that affect both the communities we serve and our employees – health, education and families. Some of the support the Foundation has offered this year includes the American Lung Association of North Florida for their asthma programs which include camp scholarships and Blow the Whistle on Asthma; the Women’s Board of the Wolfson Children’s Hospital; the University of North Florida for its Professional Development training program which encourages teachers in urban core schools to present science topics; PACE Center for Girls which provides a school for girls who are at risk; and All Pro Dads, a program to encourage fathers to talk with their children. Featured throughout this annual report are the specific activities that each division has undertaken. Besides helping the community, many of these activities create a strong team spirit among the employees. The ScottMcRae Group commends all of its employees who participate in giving back to the community.

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S C O T T- M c R A E GROUP FY2008 P L AT F O R M S The Scott-McRae Group is entering its third year with the management platform structure. It continues to be a vital, flexible tool that facilitates business growth.

Though the leadership of the FY2008 Platforms shows change, many of the individuals heading these groups have years of experience in the automotive and finance sectors.

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OUR MISSION Provide superior services and products to our customers in every area of our business.

Engage in the fair management of quality people and provide them with fulfilling career opportunities and high quality of work life through wellness programs and other activities which contribute to their health and well-being.

Represent, effectively and fairly, the business for

Walter McRae, Jr.

Tip Graham, Jr.



Chairman of the

President and



which we have agreed to provide services and products in our assigned market areas.

Support the communities where we work by being a good corporate citizen.

OUR VISION Our future success depends on providing our customers with an experience that is so positive they will purchase additional vehicles, partner with us for service and share their experience with others.

William A. Long 07.1983 Tampa Platform President/ Partner/Director

BOARD OF DIRECTORS The successful expansion of the Scott-McRae Group requires the support of many people. Leading the management team is the Board of Directors. These nine Directors, including the Outside Director, are also Partners in the company. They represent decades of business and David Hodges, Jr.

Jeff Curry



Executive Vice President/COO/

Executive Vice President/CFO

Partner/Director; Scott-McRae

Scott-McRae Group; US Auto

Foundation Trustee

Credit President; Financial


Services Platform President

Glynn Wimberly

Larry Matheny, Jr.

Bruce Ivey

James A. Winston




LPMC, Inc. Chairman; Special

Financial Services Platform

Vice President/Aviation

Vice President/Advisory

Counsel/Outside Director

President; US Auto Credit



President; North Florida

Executive Vice President/CFO

Automotive Platform President

Scott-McRae Group

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Larry Burkins 12.2002 President/COO Duval Honda; General Sales Manager/General Manager Acura of Orange Park

Julie Chicoski 08.1991 U.S. Auto Credit Controller

Blase De Leo 08.2006 North Florida Automotive Platform President; Southeast Regional General Manager, Mazda North America Operations

Marni Dorman 08.2005 Tampa Platform Human Resources Vice President; Home Depot Human Resources/Safety Manager; Oldcastle, Inc., Human Resources/Safety Manager

Dan Hodges 07.1999 Duval Acura President/COO/Partner; Duval Ford Financial Services Directo

Charlie Howell 12.2006 SMAG Corporate Counsel; Howell & O’Neal Managing Partner

Kevin Snyder 03.2007 Duval Motorcars President/COO; Finance Director/Used Car Manager – Lexus of Jacksonville; Duval Acura General Sales Manager

Tony Swain 09.2004 Tampa Honda Land President/COO/Partner; Coggin Honda General Manager

EXECUTIVE MANAGEMENT COMMITTEE Joining the Directors in the management of the Scott-McRae Group are the division Presidents. Many of these received Partner status in May, 2005. Also contributing are senior financial staff including controllers and auditors of the various divisions, human resource vice presidents, and corporate public relations.

All of these groups comprise the Executive Management Committee which meets monthly to review business and financial trends as well as discuss best practices. NAME | DATE HIRED | POSITIONS HELD DURING THE LAST FIVE YEARS CURRENT POSITION BOLDED

Greg Rothfeldt 05.2005 Brandon Honda President/COO/Partner; Courtesy Honda General Manager

Ashley Drugg 01.2001 North Florida Automotive Platform Human Resources Vice President; SMAG IT Support Project Manager; Executive Assistant to EVP

Rick Jones 01.1996 Scott-McRae Advertising President/COO/Partner

Steve Taylor 07.1997 Duval Mazda of the Avenues President/COO/Partner; Duval Ford President

Pat Finnegan 08.2005 President/CIO SMAG IT Support; Engineer, Intelligent Imaging Innovations

John Gillette 01.2007 Autolease President/COO; Plant City Motors – Owner

Monica Hillin 07.1991 Financial Services Platform Human Resources Vice President; SMAG Director of Corporate Communications

Dale Murray 05.1999 Duval Ford President/COO/ Partner; Duval Ford General Sales Manager; Duval Mazda of Gainesville President; Duval Mazda of the Avenues President

Sanjay Prakash 07.2005 Duval Mazda of Gainesville President/COO; Courtesy Chrysler Jeep General Sales Manager; Duval Motorcars General Sales Manager

Erica Puhalski 06.1986 Tampa Platform Controller; Tampa Platform Assistant Controller

Stephanie Uva 10.1993 Jacksonville/Gainesville Operations Controller; Tampa Controller

Sidney Wells June, 2004 Duval Ford Vice President/Partner; Matrix Data Solutions Chairman/ CEO; Autolease President

Amy Rankin 09.2001 Scott-McRae Advertising Executive Vice President; Scott-McRae Foundation Trustee

S M G A N N U A L R E P O R T 0 7 : 39


1725 Memorial Park Drive Jacksonville, Florida 32204 C O R P O R AT E O F F I C E S :

701 Riverside Park Place Jacksonville, Florida 32204 (904)354-4000 S C O T T- M C R A E F O U N D AT I O N :

701 Riverside Park Place Jacksonville, FL 32204 O P E R AT I N G L O C AT I O N S :

Orlando, Florida Auto Credit of Orlando Tampa, Florida Tampa Honda Land Brandon Honda Auto Credit of Tampa Georgia Auto Credit of Atlanta Auto Credit of Macon/Tifton North Carolina Auto Credit of Charlotte Auto Credit of Raleigh Auto Credit of Winston-Salem

Jacksonville, Florida Duval Acura Duval Ford Duval Honda Duval Mazda at the Avenues Autolease Auto Credit of Jacksonville Scott-McRae Advertising McRae Properties Scott-McRae Support Services Commercial Landscape Solutions

South Carolina Auto Credit of Charleston Auto Credit of Columbia Auto Credit of Greenville

Gainesville, Florida Duval Mazda of Gainesville Duval Motorcars

Smith, Hulsey & Busey 225 W. Water Street Jacksonville, Florida 32202

Tennessee Auto Credit of Chattanooga Auto Credit of Knoxville Auto Credit of Nashville LEGAL COUNSEL:

LeBoeuf, Lamb Greene & MacRae 50 N. Laura St, Suite 2800 Jacksonville, Florida 32202 Fisher & Phillips 1500 Resurgens Plaza 945 East Paces Ferry Road Atlanta, Georgia 30326 MacFarlane, Ferguson &McMullen 400 North Tampa Street Suite 2300 Tampa, Florida 33602 AUDITOR:

Masters Smith and Wisby 4811 Beach Boulevard Jacksonville, Florida 32207 MANAGEMENT C O N S U LTA N T:

Ted Kilpatrick, Ph.D. 202 ATP Tour Blvd, #220 Ponte Vedra Beach, Florida 32082

Scott-McRae Group 2007 Annual Report  
Scott-McRae Group 2007 Annual Report  

Annual report for privately held company with focus on automobile dealerships.