Industry Newsline - July 2002

Industry Newsline

MOTIONS AND PROMOTIONS

American Changer Corporation of Ft. Lauderdale, FL has announced the appointment of laundry and amusement veteran Leon Cox to inside sales representative. Cox has over 17 years of sales experience in the coin-op industry, bringing with him a wealth of product and industry knowledge.

Mickey Skelton has joined the team of Nashville, TN-based NCW (National Car Wash LLC). He will lead the company's franchising operations. Skelton previously held a similar position at Shoney's, Captain D's, and Corky's BBQ.

CSI's TOP DISTRIBUTORS

Cleaning Systems Inc. of De Pere, WI honored its 2001 top sales volume distributors at
a distributor meeting held in conjunction with the recent Car Care World Expo in Chicago.
Top sales volume CSI distributor for 2001 and the Presidential Award winner was Craig Hanson of WashTech in Charlottesville, VA. The Gold Award went to Jim Arvin and Bob Schaefer of Non Stop Sales & Service of Bellingham, MA. Steve Kirkpatrick of Complete Car Wash in Lincoln, AL received the Silver Award.

Also recognized for their accomplishments in 2001 were the CSI Shining Star Award winners. These distributors attained the highest percentage increase in sales over the prior year. Recipients were: Robert Ramsdell and Pete Benford of Advanced Systems in Marietta, GA; Mark Robinson of Car Wash Service Express in Stedman, NC; and Robert Taylor and Moose Tyree of Mid-Tenn Mark VII in Lebanon, TN.

MACE 1Q RESULTS

Mount Laurel, NJ-based Mace Security International Inc. ("Mace") announced net earnings of $0.03 per share and record EBITDA of over $2.1 million for the first quarter ended March 31, 2002. Revenues were $11.8 million compared to $12.8 million in the first quarter of 2001. The decline, the company claims, was largely the result of a reduction in wash volume due to the divesting of two car washes in late 2001 and the unusual lack of snow in the Northeast.

Operating income for the first quarter of 2002 increased 27 percent to $1.6 million from $1.2 million in the same period of 2001. The company attributes the improvement to an increase in average wash and detail revenue per car combined with continued control of labor and other operating costs. Direct labor costs as a percentage of wash and detail revenues improved from 46.3 percent in the first quarter of 2001 to 44.9 percent in 2002.

PDQ EARNS EXPORT AWARD

PDQ Manufacturing Inc. of De Pere, WI was one of eight recipients of the 38th annual Governor's Export Achievement Awards. Charlie Lieb, the company's president, accepted the award from Governor Scott McCallum during a recent ceremony held in Milwaukee, WI. The awards are given to companies that achieved extraordinary results in international sales or have contributed to Wisconsin's increased ability to compete in the global markets.

PDQ has 25 international distributors that sell products in more than 50 countries. Since 1995, the company has experienced double-digit growth in sales to foreign countries.


NCW OFFERS FRANCHISES

NCW (National Car Wash LLC) operates more than 40 car washes in Tennessee and Kentucky, distributes a full range of self-service and in-bay automatic car wash equipment and car wash chemicals, and is now offering franchise opportunities to prospective car wash operators.

NCW announced the availability of franchises at the Car Care World Expo in Chicago and is reporting growing interest. The initial franchise fee has been set at $25,000 per location with a
royalty fee requirement of 3 percent. For franchising information call NCW at (866) NCW-WASH or (866) 629-9274 or visit the company's web site at www.NCWwash.com.

EXACTA DISTRIBUTOR

Can-Am Controls LLC of Arvada, CO has announced that it has been named the exclusive U.S. distributor of equipment manufactured by Exacta Controls. Can-Am Controls is owned by well-known car wash owner/operator and manufacturing veteran Harry Mathews. Exacta has been manufacturing control systems for the car wash industry for 20 years. Its products include the Excel, Millennium, Excel ST, and the Excel AV as well as tunnel control systems.

CCA CELEBRATES 20 YEARS

On June 5, the Connecticut Carwash Association (CCA) held its Annual Membership Meeting, ran its second car wash tour, and celebrated its 20 years of service to Connecticut car wash operators.

Nearly 60 attended the event that began with a tour of four Hartford-area washes. The tour ended at the Tall Ship Pier in Hartford where members boarded the Mark Twain cruise boat for an evening tour up and down the Connecticut River. The tour included a short business meeting, dinner and socializing.

During the three-hour cruise Doug Newman, outgoing association president, was honored for this two years in office and his extensive work as a CCA member. He was awarded an acrylic plaque by incoming president Paul Ferruolo. The 2002/2003 CCA officer slate is as follows: president: Paul Ferruolo of Mr. Sparkle Car Wash in S. Windsor; vice president: Tom Mathes of Bradley Auto Wash in Windsor Locks; treasurer: Dan Petrelle of Splash in Riverside. Pulling double duty, Ferruolo will also serve as secretary.

VIOC ADVANCES

Midway through its fiscal year, Valvoline Instant Oil Change's (VIOC's) franchise division reported that it has added eight new franchisees that hold licenses for a total of eight locations and that it has had 16 franchisee service centers open throughout the United States. This brings the total number of franchise locations to 324 and pushes the total system population to 687.

The new franchisees joining VIOC since October 1, 2001 are Bella Oil Inc. of Island Lake,
IL; Bay Lube Inc. of Marshall, VA; Secor Auto Care LLC of Dundee, MI; Golden Trout Quick Lube LLC of Eugene, OR; Clark Consultants Inc. of Winchester, KY; Metrolube Enterprises Inc. of Marlboro, MA; RNA Enterprises Inc. of Minneapolis, MN; and PM Lube LLC of Oakton, VA.

VIOC's strategic plan for 2002 calls for the addition of 20 franchisees and growth of the franchise service-center population to 50 percent of all VIOC locations. Licenses have already been purchased for development of another 43 locations and additional opportunities are available in prime markets throughout the country. Further information is available by contacting VIOC franchise sales at
(800) 622-6846 or visiting www.viocfranchise.com on the web.

JIM COLEMAN SCHOOL

Jim Coleman Company recently hosted its annual College of Knowledge Training School at the Jim Coleman Company headquarters located in Houston, TX. The company offered 26 attending
distributors four days of extensive hands-on training and a wealth of knowledge on the Water Wizard Touchfree Automatic, self-serve car wash equipment, the Entry Wizard automatic entry controller, and the Swipe-N-Clean credit-card acceptor.

Each team of distributors received manuals, service tools, and a certificate of completion. This special school was introduced to better inform distributors on servicing the company's product line for its customers.

AUTO LAUNDRY NEWS is published by EW Williams Publications Company
2125 Center Avenue, Suite 305, Fort Lee, NJ 07024-5898, USA Phone: 1-201- 592-7007 Fax: 1-201-592-7171