Warm DecemberHow a December without snow affected Redmond.

Creating ValueRecognizing our role in Redmond’s journey.

Health InsuranceThis year’s changes, and what to expect from the future.

An Eye for NumbersGolfing in the desert with Brian Clark.

Lake Powell 2012Full-time associates can reserve a spot on one of Redmond’s annual Lake Powell retreats.

Spring Trips• Wednesday, April 25 - Sunday, April 29 • Sunday, April 29 - Thursday, May 3

Fall Trips• Wednesday, Aug. 22 - Sunday, Aug. 26 • Sunday, Aug. 26 - Thursday, Aug. 30 • Wednesday, Sept. 5 - Sunday, Sept. 9 • Sunday, Sept. 9 - Thursday, Sept. 13

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February 2012

A magazine for associates and partners of Redmond, Inc.

Keeping an Eye on the NumbersFor more than four years, all of the numbers that matter to Redmond’s bottom line have crossed Brian Clark’s desk. Clark works with accountants at each Redmond division, consolidating data to be sure the company’s leaders have an accurate view of the accounts.

Peeking over a row of monitors at Redmond’s Heber office, Clark’s voice is steady and quiet, just as you might expect from a man who stares at spreadsheets all day. But he isn’t all about numbers. He’s been known to tip a waitress depending on how much ranch dres-sing she brings, and he has a set of skills not normally associated with accounting.

“People might be surprised to know I can drive big equipment,” said Clark, a member of the Air Force Reserve who has been deployed to Afghanistan and Oman to support recent military action. “In fact, I told the loading yard in Redmond I could jump into a loader if they ever need a hand. We loaded equipment for the troops onto cargo planes and got them on their way. It’s not much like accounting at all.”

Clark coaches youth baseball, runs to keep fit, and golfs as often as he can. During his six-month deployment in Oman, Clark even found a chance to golf in the desert. “There wasn’t a blade of grass for hundreds of miles–you basically carry around a little square of astro turf, and that’s your tee box,” he said.

Clark, who spent close to twenty years working in large accounting departments for multinational companies, says he appreciates wor-king with Redmond. “I’ve got people here that don’t think the same way I think,” he said. “They put things back in perspective, and that helps. We have some great people here.”

Clark has a son in college, two daughters in high school, and a son in seventh grade. From his home, he runs a seasonal tax business with this wife, Roxanne, who also works part time in Redmond’s accounting department.

Redmond Incorporated475 West 910 SouthHeber City, UT 84032

”Try not to become a man of success, but rather a man of value.” ~Albert Einstein

Changes to Health Insurance

“A bird sings not because it has an answer, but because it has a song.” -Dewitt Jones

During the last three months of 2011, Apple generated more than $314 million in revenue every day–roughly $220,000 in as much time as it took you to read this sentence. Apple products are impressive, but more importantly, they understand that value isn’t always about price. Companies are able to succeed only when they add value to the lives of their customers.

Redmond doesn’t generate that kind of cash, but we strive to put the same princi-ples into action with our clients and customers. In a market crowded with hundreds of brands of salt, Real Salt succeeds because our customers recognize the value of natural, unprocessed sea salt. Real Foods Market doesn’t sell cheap food, it sells real food, and customers are loyal because they believe in the value of good health.

Whether we spend our days analyzing data, working underground in the mine, or interacting with customers on the phone, our work becomes more meaningful as we recognize that what we do makes a difference in our customers’ lives. Your crea-tivity and passion for your role can improve processes on your team and the quality of Redmond’s ser-vice.

“Some of the best ideas we’ve had at Real Salt have come from the clean room, not a conference room,” said Redmond Trading sa-lesman Darryl Bosshardt. While packaging 26-ounce pouches of Real Salt, Kimberly Shoop reali-zed that the shape of the package was complicating the process. She shared the idea with her team, and the pouch, Real Salt’s best selling sku, got a new package.

Each of us has a unique perspective on the challenges facing our teams, and the opportunity to make improvements. Shoop didn’t try to change the process in the middle of a production run (that kind of creativity would have broken the process in a hurry) but by helping the Real Salt team understand her perspective, she made a lasting contribution.

Part of the Redmond opportunity is doing just that–sharing your unique perspec-tive and working with others to make a contribution that matters in the world. We might be tempted not to speak up because our idea seems insignificant or incom-plete, but when we try to make a contribution instead of trying to make a differen-ce, big changes can come from the ideas we’re willing to share.

If your paycheck feels a few dollars lighter than it was a month or two ago, you’ve probably noticed the new health insurance premium that went into effect at the beginning of the year. For the second year in a row, Redmond associates faced a premium increase of nearly 10%.

It won’t ease your paycheck pain, but if misery loves company, you’ll like this: Across the country, average family health care premiums increa-sed 9%, with more companies asking employees to pay more of the bill. The health insurance deduction you see on your pay stub may seem like a lot, but it is actually only 35% of the cost. Redmond pays the remainder.

Redmond is working toward an insu-rance program that is sustainable, but recent legislation and one or two lar-ge, ongoing claims will likely slow the company’s ability to control its insu-rance costs for several years to come. If things remain as they are, we can probably expect a similar cost increase for 2013 and beyond.

Redmond associates share a group insurance policy, which means that your individual health affects both your family and your teammates. We may be unable to control forces at work in the insurance industry, but as each associate becomes more healthy, Redmond’s ability to provide affordable health insu-rance is improved.

Creating Value Every Day

In an average December, Salt Lake City re-ceives a few major storms and twelve in-ches of snow. Last December, the city got just one tenth of an inch, as much as a ty-pical September and nine times less snow than ever before. Because a large portion of Redmond’s revenue has historically been tied to Ice Slicer and the highway deicing market, many associates have wondered how a December without snow might affect the company.

“We’ve had very little snow here,” said Redmond’s CEO, Rhett Roberts, “but other areas we serve have had some good win-ter weather.” Colorado’s front range, ser-ved by Redmond’s largest partner, Envi-

rotech, has had a stronger winter than in 2010, which helped fourth quarter deicing revenue and net income remain on par with the past two years.

The company might prefer a steady supply of storms, but a light winter may have unexpected benefits. “The lack of snow re-lieves stress on our customers’ road salt budget,” said Ice Slicer sales representative Larry Anderson. With more freedom in their budget, Anderson expects customers to experiment with higher Ice Slicer usage to fight storms in early 2012. “With a few good storms yet to come this winter,” he said, “this could turn into a terrific opportunity for Redmond.”

Riding along with plow drivers after a re-cent Wasatch County storm, Ice Slicer sa-les representative Jim Besendorfer agreed. “These guys just love using our product,” he said. “It looks like they’re using a lot more per lane mile than they would if they were worried about budget.”

Redmond’s focus on developing diverse bu-sinesses, along with a growing base of Ice Slicer customers in and outside of Utah, provides streams of revenue that are less dependent on winter weather. New oppor-tunities in Redmond’s agriculture, equine, and hunting divisions, along with consistent growth from Real Salt and Redmond Clay, has provided reliable income even when nature doesn’t provide snow. Light win-ters actually benefit Best Vinyl, Redmond’s fencing and deck subsidiary, who enjo-yed a strong fourth quarter brought on by weather that allowed their crews to keep working late in the year.

Ten years ago, when the majority of Redmond’s revenue came from deicing sa-les, a warm December would have been a significant challenge. In 2011, with deicing revenue holding steady and significant growth from Redmond’s other divisions, the company is better able to weather the storms–or complete lack of storms–that come its way.

The challenges and opportunities a month without snow can bring.

Warm December

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