april newsletter

NEWSLETTER April 2018 AMS Happenings: One for the Record Books! March Closes to a Record Month! By: Chrissy Nardini Congratulations to Congratulations to all of you for a company record month $7,586,709 in sales! David McLendon This blew away our previous record month of $6.56 million. Year to date we are and his wife on the up 22% in sales and 15% in gross profit. birth of their daugh- ter, Nova Skye Oklahoma capped off March with their first month over $1,000,000 McLendon. Kansas had a record month of $1.55 million Dallas hit $205,000 Steel had a huge effect on the month – we often discuss targeting no more than 25% of our gross profit to come from steel – the company average in March was 38.7% coming from steel. That means we capitalized on our great buys, but it also means it is harder to duplicate those types of results. Congratulations Lots of uncertainty and lots of price increases coming as all our vendors try to to Tracy Morgan, come to an understanding of what Trump’s tariffs will mean to them. We know Oklahoma Branch, it is challenging for our salespeople as we try to navigate all the increases, and for a month over challenging for our warehouse and drivers as we are loaded up with high inven- $130,000 GP, her tory levels to beat some of the increases. first month over Regardless of what lies ahead – I am thankful for the team we have to work $100,000! through an exciting but challenging time! Congratulations to So Just How Much Steel Did We Sell? Keith Heppermann, By: Chrissy Nardini who survived a We all know that the huge price increases have prompted many of our customers Level II DOT in- to do pre buys and work to beat price increases for jobs they have already won . spection yesterday But how much over “the norm” did we do in the first quarter ? Take a look at the afternoon at 15:01 first quarter numbers below (Measured in Pounds Sold) (12 hours and 40 minutes into his day) with no viola- tions. Congratulations Brandon and Lau- ren Gregory who are expecting a baby boy!

AMS Happenings: Bowersock Gets Revenge on Our prayers are the Road to Final Four! with Paul and Joe Sudduth, whose father was diag- After we teased Mike Bowersock about his horrible NFL Fantasy Football stand- nosed with cancer. ing, he came back with a vengeance winning our Final Four pool with Villanova. Congratulations Mike! Mike selected the American Cancer Society to donate Our prayers $160 towards, in honor of our salesman in Springfield, MO Jack Baumann. are with Laura Lehmkuhl, whose daughter will be undergoing surgery for removal of a brain tumor, April 12th. “Put your heart, mind, and soul into even your Never Eat Alone- Quarterly Theme Jan.- March 31 st smallest acts. This is the secret of Our quarterly theme of never eat alone had the goal to deepen relationships success”.-Swami across AMS functions. The plan was to have people who don’t already do lunch Sivanada (1887- together go out to eat and better understand each other. AMS would reimburse 1963) the lunch. Across the company, we had 70 employees take advantage of the theme and dine together. Below is a few photos of the luncheons! Pictured John Towers, Chuck Hitchcock, Matt Hitchcock and Tim Feiste Pictured Chrissy, Tim Feiste, Brandon Rosner, Paul Sudduth and Keith Hepperman

March-April Quarter Two Theme Anniversaries Mike Bowersock This Quarters theme is focusing on cleaning up our branches and eliminating waste. Each team member that accomplishes the three steps below will receive 13 years a Rtic Koozie. Plus, for each approved waste reducing idea get an entry to win a Shelly Liley Rtic Cooler! See your manager for details. 13 years Paul Sudduth Spring Cleaning 11 years 1. Dead Inventory Reduction- Company Wide Goal of <1% Patti Guard-Yonce (no individual branch above 2%) 10 years Each branch will receive a dead inventory report and attempt to eliminate Tiffany Sudduth product through sales effort (see manager for report) 10 years Todd Keck 2. Branch Clean Up- Send before and after photos of the 5 areas 8 years below. Brian Blanke 1. Exterior of building 6 years 2. Will call/front of warehouse area 3. Inside Sales/desk John Baumann 4. Two miscellaneous areas selected by team members (ex. warehouse aisle, 5 years locker room, closet) Richard Hursh 3. Waste Reduction- Each team member submits idea(s) and 3 years solutions/replacements to reduce expenses for the company/branch (Ex. reduce a service bill, eliminate unworn uniform replenishments) Jason Kistler 3 years Dean Edington 3 years Branch Prize Grand Prize nd Mary Tiner Can Koozies for each team 1 Cooler (random drawing): 2 Cooler: st 1 year member for completing One entry for each, The team member with steps 1&2 and submitting a approved, waste the most financially Alan Turner waste reducing idea. reducing idea. impactful idea. 1 year Jason Jacobs 1 year

Quarter 1 Sales Promo Results Are In By: Chuck Hitchcock Over 200- $25 gift- cards were earned by our contractors! For the months of February and March 2018 our sales force was given targets to focus on sales of strut and all thread hanging systems. Prior to the first sales in February, we increased our inventory on several items and introduced a few new items to the mix to round out the offering. Our sales team was up to the task, doubling the stated goal and selling 3X the strut, all thread rod and rod accesso- ries compared the same 2-month period in 2017. When the dust settled, Chris Tracy was recognized as the salesperson with the highest level of sales of strut and rod for the 2-month period. Chris sold over $30,000 of qualified product. The promotion generated over $130,000 in sales of strut and rod in the 2-month period. Quarter 2 Sales Promo Introduced By: Chuck Hitchcock We recently became a stocking distributor of the Flexmaster commercial flex duct line. Many of you have probably already met with Brian Kuhn, our sales rep, as he made his rounds to all the branches for training. Flexmaster is a higher grade of flex when compared to the standard Hart and Cooley or ATCO flex we currently stock. The main competing line to Flexmaster is Thermaflex if you are familiar with that name. Brittany has produced a flyer introducing AMS as a stocking distributor. These are available in hard copy or email format. For the 2nd quarter of 2018 we will be focusing on making our customers aware that we offer the new line. Obviously increased sales are the measuring stick by which our efforts will be judged. Any efforts in promoting the new line are appreciated. If you have any suggestions for future sales promotions, please submit to your branch manager or directly to Chuck Hitchcock. Flexmaster U.S.A.® Standard Duct Advantage • Flexible Duct •Triple Lock Specialty Metal Products • Silencers •20 Year Warranty on Most Products • Access Doors • Sheet Metal Fittings • Accessories

Exciting changes to the 401K Plan effective April 9, 2018! By: Chrissy Nardini We have a couple notable changes to the 401K plan that are effective April 9. We have added a Roth 401K feature to our plan. So employees will now be able to elect whether they want their deferral to be pre tax or Post tax to go into a Roth bucket. (More information on a Roth 401K in this newsletter). Regardless of whether an employees deferral goes into the standard deferral or to a Roth, we will continue to match up to 6%. You now may make changes in your deferral percentage on a monthly, rather than quarterly, basis. So if you need to increase or decrease your deferral percentage, any change you request would go into effect the first of the following month rather than at the beginning of the next quarter If you are interested in making any changes related to the above features, you would do it after April 9 through Fidelity’s website www.netbenefits.com Understanding how a Roth 401K differs from a Traditional 401K By: Fidelity We are happy to announce that effective April 9, 2018 we’re adding the Roth 401(k) Feature to the American Metals Supply Co., Inc. Profit Sharing Plan so you have another choice on how to save for your retirement. Please read below for additional information on this new feature. How do Roth 401(k) contributions differ from traditional 401(k) contributions? With a Roth 401(k) feature, you can designate all or a portion of your future deferral contributions as “Roth contributions.” Traditional 401(k) contributions are made on a pre-tax basis and are not included in current taxable income. The pre-tax contributions and any earnings will be subject to income taxes when withdrawn. In contrast, Roth 401(k) contributions are made on an after-tax basis and are included in current taxable income. Earnings are tax free if they are part of a “qualified distribution” - a distribution that is taken at least 5 tax years from the year of your first Roth 401(k) contribution and after you have attained age 59 ½, become disabled, or deceased. How might Roth 401(k) contributions affect your paycheck? You elect a percentage of your salary that you wish to contribute to the Roth source within your existing Plan account, just like a traditional 401(k) contribution. However, unlike your traditional 401(k) contribution, you pay taxes up front on the Roth contribution. Therefore, your take home pay will be less if you are making Roth contributions than it would be if you were making traditional Pre-tax contributions. Hypothetical example: Continued on Next Page

Understanding how a Roth 401K differs from a Traditional 401K (Continued) Hypothetical example: Assume eligible gross compensation is $60,000 per year or $5,000 per month with a 25% federal income tax withholding rate: Pre-Tax Contributions Roth Contributions Contribution 10% 10% Compensation $60,000 $60,000 Less: Pre-tax contribution for the year ($6,000) $0 Taxable Income $54,000 $60,000 Less: income taxes (25%) ($13,500) ($15,000) Less: Roth contribution $0 ($6,000) Net after-tax (take home pay) $40,500 $39,000 Difference in take home pay for the year ($1,500) This hypothetical example is for illustrative purposes only. It shows the potential impact on take-home pay assuming a pre-tax or after-tax annual contribution of $6,000 based solely on an assumed 25% federal income tax withholding rate. Actual taxes and take home pay will depend on your individual tax situation. No other payroll deductions are taken into account. Pre-tax contributions and any related earnings will be taxed at the time of withdrawal. Any earnings on after-tax Roth contributions are tax-free if certain conditions are met. Can contributions be made to both the Traditional Pre-tax 401(k) and the Roth 401(k) source? Yes. You may contribute to both the traditional Pre-tax and Roth option as long as you do not exceed the total IRS contribution limit for that year. In 2018, the combined IRS contribution limit for both Roth and traditional Pre-tax contributions if you are under age 50 is $18,500. (If you are over age 50 and make catch-up contributions, the combined IRS contribution limit for both Roth and traditional Pre-tax contributions is $24,500.) How do I know if a Roth 401(k) option makes sense for me? Generally, if you expect to be in the same tax bracket in retirement as now, a traditional, pre-tax or a Roth 401(k) contribution are roughly equivalent from a tax perspective. If you expect to be in a higher tax bracket in retirement, a Roth 401(k) may be the better choice since you won't pay taxes on qualified distributions of earnings. If you expect to be in a lower tax bracket in retirement, then a traditional, pre-tax contribution may make more sense for you. Whether to contribute to the Roth option depends on your own personal situation and many factors should be taken into account. Due to the differing tax implications associated with traditional, pre-tax versus Roth 401(k) contributions, and the potential impact they may have on your current adjusted gross income, which may affect your eligibility for other tax credits and benefits, you may wish to consult with a tax or financial advisor regarding your individual situation. ® For more information or to enroll or change your current deferral amount, log on to Fidelity NetBenefits at www.netbenefits.com or call Fidelity at 800.294.4015. Want to see how a small increase can boost your growth potential? Visit the Planning and Guidance Center under the Planning tab. Investing involves risk, including risk of loss. The estate planning information is general in nature and should not be considered legal or tax advice. Laws of your particular state or your particular situation may affect this information. Consult your attorney or tax professional regarding your specific legal and tax situation.

Did you Know? By Shelly Liley Utilize the Paylocity app to request time off, securely view your paystubs, read company news, and so much more! You can now find the link to websites related to your benefits conveniently in the app. And that’s not all! There is also a company directory with all employees listed. Simply tap on a name and it will open the individuals contact information. As we continue to add more data and content to Paylocity, you will see a more robust self-service site. Below are a few screenshots of what you can do on the app.

Open enrollments By Shelly Liley Open enrollment for Aflac is May 1 . We will schedule branch meetings again this year for anyone st who would like to meet with an Aflac rep. Open enrollment for Dental / Vision / Life insurance is June 1 . We will be using the Paylocity Enter- st prise Benefits portal once again for the enrollment process. The enrollment window will be open the last two weeks of May. Reminder, even if you are choosing not to participate, you are required to login to the portal and waive coverage. Asterisks next to customers names in Eterm? By Brandon Gregory Some of you have noticed that there are ASTERISKS next to customers names in tickets and in the maintenance screens. On accounts with really long names we have adjusted it so that the tail of their name is in an additional name field and all address information is in legit address fields. This will help in future projects that require mapping software.

American Metals- Longstanding Relationships Our customer Jeff Kufa from Kufa and Sons recently showed Chuck Hitchcock during a visit an old ledger from 1961 showing American Metals Supply as a vendor. A relationship that has stood the test of time and both companies today are still thriving! Indy Branch Fitness Challenge-Lost 100 pounds total! By Eric Cameron Congratulations to Mike Simms, Phillip Fisher, and Ben Skinner for hitting their goal in the “put your money where your mouth is” fitness challenge. Mike lost 36lbs, Phillip lost 34lbs, and Ben reduced his body fat 5%. Indy had 10 participants in the challenge. Of those, 6 had weight loss goals. Those 6 participants lost 100 total pounds!

OKC Branch-ASHRAE Skeet Shooting By Jeremy Jett Oklahoma City participated in an ASHRAE skeet shooting event on March 8 for the first time. Unfortu- nately, too many of the targets were safe that day, but we’re glad to announce we didn’t come in last. Pictured is Hugo Morales, Tracy Morgan, Chad Morgan and Jeremy Jett Best in Class Performance for All with By Brandon Gregory It isn’t very often that our industry hits the mainstream news. With 232 and steel tariffs it has been crit- ical to stay informed. If you are looking at an article about tariffs that is over one week old a hundred things probably happened since it was written. Google has an additional field that helps filter results for recency. Search for your topic, click Tools, and then select your time range.

AMS Anniversary Celebrations- St. Louis On Wednesday April 4 , the Fenton and Hazelwood branches celebrated 3 AMS anniversaries at the th Trainwreck Saloon! Congratulations to Patti Guard-Yonce (10 years), Tiffany Sudduth (10 years) and Chris Mohler (15 years). Core Values in Action! Best In Class Performance By Shelly Liley At AMS we often hear it’s our service that sets us apart from other vendors. It is the little extra touch- es we do for our customers that keep them coming back to AMS. Here’s just one more example of the great staff we have and the lengths we go to please a customer. One of Aaron Srsen’s customers – Lakebrink Heating & Air – uses the Innovo app to place orders. Andy from Lakebrink requested labels to hang on his racking in his warehouse. Andy’s idea was for the picture and the barcode of each product to be on the label. Then, they would attach the labels to their racking and this would allow their guys to walk along and scan the barcode of any product they needed, all using the app. Andy asked for a specific size label and Letha got to work. This is the finished product in action! Letha made 95 of these – yes, 95!! She laminated and cut each one of them. Letha received an email from Andy stating the labels were fantastic and thanking her for the time and effort she put into this project. Again, just one more example of the extra attention and special touch- es that we at AMS do for our customers. We go that extra mile and our customers appreciate us. If you have a customer currently using the app that would benefit from something like this, Letha said we are happy to help! She also said, “tell them to contact Brittany at ext 272!!” haha Great job Letha!

Core Values in Action! (Continued) Partner to Our Customer and our Vendors By Eric Cameron Congratulations to Dustin Bradley who A to Z Sheet Metal commended as being a rock star! He was at A to Z waiting to be unloaded and jumped in to help our customer unload another vendors tractor trailer (not a competitors I am sure) to help get the job done faster ! Way to be a Partner to our Customer and our Vendors Tina at Koors Heating & Cooling called to let us know they appreciated Mike Simms for going above and beyond to hand stack a full skid of metal exactly how they needed it. There was no one available to help Mike so he stepped up and got it done. Thanks, Mike for being an exam- ple of our Core Value: A Partner to Customers and Vendors. Employee Spotlight This month the spotlight shines on Letha Franklin from Hazelwood Corporate Office. Letha is 33 years young and has been with AMS for 2 years as a Purchasing Specialist. She has a husband Chris and an AWESOME 7 month year old son, Robert. Most significant memory at AMS? When OE touch was launched to our customers. It was my first big accomplishment here! One thing no one knows about you? I am actually, truly, an introvert and love to be alone! What are your hobbies? I love to sew and bake. I’m secretly an old lady! Dream Vacation? For sure on a secluded beach, family in tow, drink in hand, and absolutely no technology! The coolest place you’ve traveled to? Kona and Maui Hawaii

Welcome to the AMS Team Welcome Brittany Hanneken! Brittany is our new Marketing Coordinator, based out of the Hazelwood location. She was the Marketing Manager for Benoist Bros for 3 years before we stole her away! She is engaged to fiancé Alex, and has one cat daughter, Chandler. Brittany graduated from the University of Central MO with a major in Business Management and Entrepreneurship. She enjoys slow pitch softball, trying new beers, and is a Shania Twain super fan. She enjoys traveling and spending time with her grandparents, twin sister Kala, and younger brother Braden (18). We are happy to have you on our team Brittany! Welcome Michael Wilson! Michael is our new warehouseman based in Springfield, IL. Michael worked for the IL Secretary of State and Win- chester Warehouse before joining AMS. He has a girlfriend of 4 years, Lexy. He graduated from Riverton High School. Michael enjoys biking, bowling and cooking. His favorite family activities are playing poker and hunting / fishing. Welcome to AMS Michael! Welcome Ryan Squires! Ryan is one of our two new Territory Manag- ers for the Dallas market. Ryan has spent the last few weeks training in STL, Indy and Springfield, IL. He will move to Dallas at the end of April to begin his new career. Before joining AMS Ryan sold real estate. Ryan graduated from Western IL University with a degree in Finance. He en- joys playing golf and watching sports. Welcome to AMS Ryan! Welcome Israel Cisneros! Israel is a driver at our Dallas operation. Israel has a daughter, Selena – 25, a son Israel – 14, a granddaughter Azalea – 1, and girlfriend Michelle. He was a law enforcement officer for 23 years and drove for JB Hunt. Israel graduated from Levelland High School and South Plains College Police Academy. His hobbies are watching the Dallas Cowboys and tailgating. Israel’s favorite family activi- ty is having cook outs. Please welcome Israel to the AMS family!

Welcome to the AMS Team Welcome Ryan Schmitz! Ryan is our newest Territory Manager for the Dallas branch. Ryan is married to wife Chandler – no kids yet! Ryan worked for Commercial Metals Company as a steel trader of steel coil / pipe and most recently worked at Curtis Steel as an outside salesman. He graduated from Texas Tech University and enjoys hunting, golf (all sports), fishing – basically all outdoor activities. His favorite family activi- ties are golf / outdoors and traveling. Welcome to AMS Ryan! Charity Corner By: Casey Murphy I really appreciate the donation for my Cleveland County Indians baseball team. We are hosting a Golf Tournament Fundraiser and American Metals Supply will be a hole sponsor for one of the holes. I have been coaching these boys since they were 5 years old, we are now 7 years old playing 7U & 8U coach pitch baseball. We have won multiple tournaments throughout the past few years as well as our league 2 years in a row. We will be traveling to Arkansas this spring to play a tournament and the proceeds of this golf tournament, including donations will go to support that as well as uniforms and other tournament and league fees. Thanks for the support!!!