Together equals results that matter.
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1 FALL Together equals results that matter. IN THIS ISSUE Building a Cutting Edge Fertilizer Plant Benefits of a Local Co-op New Accounting System Employee Spotlights P E R S P E C T I V E S
2 THANK YOU for your support ART SCHMIDT, GENERAL MANAGER October is National Cooperative Month and I would like to take a moment to acknowledge your support of Mountain View Co-op. As a locally owned co-op, we exist solely for the benefit of our member owners and their communities rather than creating profits for distant shareholders. What sets Mountain View Co-op apart from non-co-ops, whether privately owned or publically traded, is that you as customers/patrons directly own this company. The ag producers in north central Montana are voting stockholders and have a voice in how we do business. Local ownership equals local control. The decisions which build the ultimate success of your cooperative are made locally, not mandated by executives in another state. Providing the best value to our customers is our job and we strive to do that in the service we provide and products we sell. One of the things you will be reading about in this newsletter is the construction of a new fertilizer facility in Fort Benton. This will be a much needed upgrade to serve our customers in Chouteau County. It is one of several infrastructure updates the coop is implementing. On behalf of the employees, management team, and board of directors, I want to thank you for your support of Mountain View Co-op.
3 An opportunity I couldn t pass up FALL 2015 NEW HIRE SPOTLIGHT MARC FREUND A Bachelor of Science degree from Montana State University and 37 years of experience in the energy field have prepared Marc Freund for his new position as the Energy Division Manager at Mountain View Co-op. Having the opportunity to manage the Energy Division for one of Montana s premier cooperatives is exciting, said Freund. The Energy staff is dedicated to doing what is right for both the customer and the co-op. I feel completely at home here. Roots in ranching NEW HIRE SPOTLIGHT SHANE MORAN Growing up in Laurel, Montana, and working for a refinery during his college years, he started his career in Williston, North Dakota. He has been in Great Falls for the last 30 years, raising three boys with his wife, Jeri, and fly fishing in Montana s rivers and streams. Shane Moran appreciates the realities of running a successful agricultural operation firsthand, having worked on the family ranch in Roundup, Montana. As the new Feed Department Manager, he is ready to help the patrons get exactly what they need for their own farms and ranches. Moran previously worked as territory manager in feed for seven years. There s a lot of good people here, he said. I am excited about the chance for growth at Mountain View Co-op. Moran is originally from Great Falls and is pleased that he and his wife, Betsy, can call the community their home. He knows how to take advantage of life in north central Montana running his own outfitting business and also working as a pickup man for area rodeos. FINANCIAL PERFORMANCE June 30th marked the end of Mountain View Co-op s fiscal year and overall it was a very solid one. All of our divisions had a positive contribution to the bottom line, said Paul Morley, Controller. While sales volumes held steady, total dollar sales decreased because of lower commodity prices. This was offset by an increase in gross margin $ $ Total sales 184 million 195 million Gross margin 25 million 23 million Local net income 5.5 million 6.2 million Total net income 9.7 million 8.9 million Working capital 13.5 million 12.5 million The increase in working capital indicates the co-op is doing a good job managing cash flow. The fact that we paid out $7.9 million in cash to our patrons in 2015 and reinvested in capital expenditures in excess of depreciation, while at the same time increasing working capital, is a testament to the support of our patrons and the hard work and dedication of our employees, said Morley. Cash patronage checks for 2015 will be sent out in December.
4 Building a cutting edge FERTILIZER PLANT Mountain View Co-op is committed to investing for long-term success. Ground is being broken on one of those investments this month a 16,500-ton fertilizer plant in Fort Benton. Chouteau County is our largest location for moving fertilizer, said Gareth Redgrave, Agronomy Division Manager. Annually 30% of our fertilizer goes through there. The new facility will have a 250-ton tower, two 14-ton vertical blenders, chemical impregnation capabilities, micro-bins to handle special use products, and most importantly, speed. This is really going to increase the efficiency for both customers and employees, said Redgrave. We can load and unload quickly so there will be less waiting time. The success of the recently opened 35,000-ton facility in Collins lead to the decision to invest in infrastructure on the eastern side of the Golden Triangle. We are currently using three smaller facilities in Fort Benton and have a single 12-ton blender, said Cal Hankins, Fort Benton Manager. We just don t have enough storage to supply the amount of product we need, making it challenging to provide the best customer service possible. The new facility will have one more benefit which anyone who lives and works in north central Montana will appreciate; It s all enclosed and out of the wind, which is better for everyone, said Hankins. Construction begins this month with excavation and dirt work before the snow starts. If the weather cooperates, the facility should be up and running in the fall of 2016.
5 FALL 2015 The new fertilizer plant is going to be nice when it is completed. It will be easier for both employees and customers. - CAL HANKINS
6 YOUR LOCAL COOPERATIVE: A strong partner for the agriculture community Cooperatives have a long history in the state of Montana. From agriculture to energy, co-ops help our rural communities thrive. In honor of National Cooperative Month, we want to take a moment to reflect on the history of Mountain View Co-op and its commitment to providing value to its members. Mountain View Co-op is a locally owned cooperative and the largest independent agricultural co-op in the state. This means the decisions which create success for the company and its customers are made right here in north central Montana. The customer is the company, said Del Styren, who serves on the board of directors. The co-op The fact that Mountain View Co-op is full-service means customers can get almost everything they need from their trusted team. We get our fertilizer and chemical there, and we also market our grain there, said Styren. We can run our business start to finish with the same people at the same co-op. I like that a lot. For Brock and Claire Hodgskiss, owners of Mountain View Livestock in Choteau, the co-op s deep roots and strong support of smaller Montana communities make all the difference. I try to work with the businesses in town, Brock said. Local businesses are the ones with the ability to create jobs and sustain their communities. Brock & Claire Hodgskiss listens to what the customers have to say and uses their input to guide the company. That local ownership and local knowledge is very important to Chris and Kyle Huestis of Zoller Farms. I like being able to walk in and talk directly to the people running it, said Chris. You immediately have someone to share your needs and concerns with and, unlike some other businesses, we really feel like family. Chris & Kyle Huestis Of course, as owners of the co-op, everyone shares in the company s profits through the patronage distributions. The patronage is always a positive, said Brock. The Huestises have been doing business with Mountain View Co-op for 35 years. Kyle is the fourth generation and will continue that tradition. I am looking forward to it, he said. As for Mountain View Co-op? It is looking forward to serving its customers today, tomorrow and into the future.
7 FALL 2015 We like that Mountain View Co-op is run by local people by the people who actually use the services. - KYLE HUESTIS
8 Co-ops are part of my heritage BOARD OF DIRECTORS SPOTLIGHT TERRY ALLEN Terry Allen is proud to follow in the footsteps of his father and grandfather both strong supporters of local co-ops. A member of Mountain View Co-op and the Vice President of the board of directors, Allen knows the value of being part of this tradition. There really is strength in numbers, said Allen. Mountain View Co-op works hard to provide outstanding customer service while at the same time passing on savings in the form of patronage. Allen remembers being on a tractor at age eight and knowing he wanted to be his own boss. Farming is in my blood, and I knew from a very young age that I wanted to farm, Allen said. To see the miracle of grain production, from seeding to harvest, that s amazing. He and his brother have been farming together for the last 31 years in an operation which stretches from Fort Benton to Loma to Big Sandy to Geraldine. His son will be the fifth generation farmer on the land. As for Allen, he isn t retiring from the farm or the co-op board anytime soon. If the patrons will continue to elect me, I will be honored to continue helping guide Mountain View Co-op into the future.
9 FALL 2015 EMPLOYEE SPOTLIGHT GARY BOYSUN Gary Boysun remembers when there was only a Pepsi machine and candy bars under the counter that sold for a quarter. That was 1967, when Boysun started his job at Farmers Union Oil Company A lifetime of service to family, community, and the co-op pumping gas, washing windows, and checking oil for customers. Boysun managed this same location for the last 23 years. George Stoltz, Boysun s first boss, taught him, You always keep one eye on the pump. Boysun also taught his employees, adding, You always keep one eye on the counter. Boysun has embodied quality customer service, noting Integrity is always there. It s a pretty important word. Donnie Morano, who has worked alongside him for 35 years said, He s a working manager. He has always done whatever the job required. Boysun and his wife, Helen, live in Great Falls where they have raised their four children. Boysun always put his family first and appreciated that his job allowed him to be home for dinner with them. He not only served the co-op, he has also served his country with 33 years in the National Guard. Just retired from Mountain View Co-op, Boysun is continuing to serve those around him by volunteering with Habitat for Humanity and NeighborWorks, as well as remodeling projects for his family.
10 Putting customers first NEW HIRE SPOTLIGHT JERE LONG It s all about maximizing customer potential for Sales Agronomist Jere Long. The Choteau, Montana, native is excited to be part of the Mountain View Co-op family and ready to put his 10 years of agronomy experience to work for our patrons. I want to help our farmers get the most out of every acre of their operation, Long said. Mountain View Co-op is the leader here in the Golden Triangle and I m glad to be part of the company. When he isn t at work, Long is happiest spending time with his wife, Lauren, and their three children, especially if they are outdoors hunting, fishing, and camping. Proud to live and work in rural Montana NEW HIRE SPOTLIGHT MATT HOYER Matt Hoyer is the new manager in Big Sandy. A lifelong Montanan who grew up in Belt, Hoyer s roots are firmly planted in the farm and ranch community. I m so happy to have this opportunity to return to agriculture, said Hoyer. Working at Mountain View Co-op means I can work and raise my family in rural Montana, right where I want to be. He comes to Mountain View Co-op from Pacific Steel, where he spent four years in management. An active outdoorsman, Hoyer enjoys hiking, fishing, and camping with his wife, Megan, and young son, Wade. Helping people is the best part of the job NEW HIRE SPOTLIGHT CHAD HOLZHEIMER Chad Holzheimer is once again part of the Mountain View Co-op team. From 1997 to 2001, Holzheimer worked in the tire shop and as an applicator in Fairfield. Now he is bringing his 11 years of fuel service experience back to us as the Lead Propane Technician in Great Falls. Propane heat is important to our rural patrons, Holzheimer said, and I m part of a great team dedicated to helping them out. Holzheimer grew up in Fairfield and truly understands the north central Montana Ag community. Chad s wife, Brittany, also works for Mountain View Co-op as Accounting Supervisor.
11 A new accounting system and a new look for your statement Mountain View Co-op members will notice some changes in their monthly statements soon. The new format will be easier to read and provide more details, including a monthly recap of individual cardtrol cards. Some of our patrons have been asking for more detailed tracking information on their accounts, said Brittany Holzheimer, Accounting Supervisor. The new statements will provide that along with more in-depth end-of-year reports. The new format is the most visible part of an overall upgrade to the Mountain View Co-op accounting system. The new system will go live on November 1st with the December statements incorporating the changes. While the current statements end on the 25th of each month, the new system will allow for true calendar month reporting. It s just another way Mountain View Co-op is working to provide our patrons with the tools they need to successfully run their ag operations. FALL 2015 Looking Forward 90 DAYS 30 DAYS WATCH FOR NEW COFFEE BAR PRODUCER FINANCING FORT BENTON FERTILIZER PLANT CONSTRUCTION 60 DAYS MYFARMRECORDS.NET PATRONAGE CHECKS 90 DAYS HOT STUFF FOODS COMING TO FAIRFIELD C-STORE
12 PRSRT STD US POSTAGE PAID GREAT FALLS, MT PERMIT NO Old Havre Highway Black Eagle, MT ENERGY Fueling your ambitions. Your farm runs on lots of coffee and lots of fuel. We have your fuel needs answered. We provide bulk and transport delivery of gas and diesel, as well as residential and commercial delivery of propane with 24/7 service, so you are never left without. mountainviewcoop.com AGRONOMY GRAIN ENERGY RETAIL
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