What's Growing On - July 2024

What's GROWING

on?

July 2024

Harrell's Employee-Owner Newsletter Summer Edition

2023 Shareholder Meeting

Annual Shareholder Meeting by Jack Harrell, Jr., CEO

Total sales for Harrell’s LLC and HCS were $450 million and the EBITDA was $50.9 million, which was $5.7 million up or 11.2% increase over 2022. This is the best year ever in our company’s history. All debt payments are on schedule and we’ve finished the complete rebuild of Line 7 in the POLYON Plant.

On June 26, 2024, we held our 8th Annual Harrell’s Shareholders Meeting via webcast. In our meeting, it was exciting to reflect on 2023 and the outstanding year we had, update you on the first five months of 2024, and announce the new stock price and the new evaluation of our company as of December 31, 2023. It reminded me how truly blessed I am to work alongside the greatest team in this industry! If you missed the meeting, here is a recap: Thank you for all you have done in 2023 to make this another great and record year for Harrell’s. The Lord continues to be gracious to us. The 2023 financials were great! Another record year for sales, margins, and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). Our 2023 sales for Harrell’s, LLC were $439.6 million, which is up $11 million or 2.5% from 2022. Our EBITDA for Harrell’s, LLC was $38.5 million, which is $5.8 million or 15% increase from 2022. Our 2023 sales for Harrell’s Coating Solutions were $10.6 million, which is down $6.1 million or 36% from 2022. Our EBITDA for HCS was $12.4 million, which is down $100,000 from 2022.

Continued on page 2

Haydee Lara, Editor Oscar Maldonado, Editor

ESOP Meeting Continued from page 1

The financials are complete for the first five months of 2024 (January-May). Sales for combined LLC and HCS are $169 million, which is up $13 million over prior years, which is $5.1 million ahead of budget. Our EBITDA is $9.7 million, which is up $3.2 million over last year and $3.9 million up on budget. 2024 is off to an incredible start thanks to El Niño in the early months of the year, the nursery market rebounding, a strong golf market, and growth in the lawn care sector. We are looking forward to a strong 2nd half of the year to build on the great start that we’ve had. Now for my favorite part, the 2023 stock price. If you remember, we started in 2016 at $.72 a share. From there we went up to $1.94 in 2017 and then to $2.23 in 2018. In 2019 we were at $2.25 a share. In 2020, during a global pandemic, our share price increased to $6.50 a share. We followed up that year with a share price of $12.47 in 2021. In 2022 we had a correction year and the stock price dropped down to $10.97. I’m excited to announce our 2023 share price has grown to $13.22!!! We distributed another 200,000 shares to employee-owners so your new shares and the shares you already own will be valued at $13.22 a share. Congratulations to you all, you’ve earned it! I feel extremely good at where we are at in 2024 and I have no doubt that the best team in the industry will finish the second half of 2024 strong and we will have yet again the best year ever in the history of YOUR company. I can’t thank you enough for all you do. YOU ARE THE BEST!!! Your hard work in the past year paid off, and our stock price has increased again: 2016: $.72

2017: $1.94 2018: $2.23 2019: $2.25 2020: $6.50

2021: $12.47 2022: $10.97 2023: $13.22 Questions? Contact the HR team! HR@Harrells.com 863-687-2774

2| July 2024

Ask the TurPh.Dudes

Spring Cleaning… For Your Yard By: Jeff Atkinson I’ve lived in the same house for five years, and I’m starting to get a feel for what agronomic issues I can expect to encounter year after year. I’ve tried to get ahead of the problems this year, so

Fix Irrigation Issues Now To Prevent Dead Plants Later My irrigation system is around 23 years old, as best as I can tell. For much of its existence, it has been neglected, and now I’m paying the price, literally. But the financial price I’m paying now will prevent the despair of looking at dead turf and plants once the summer heat picks up. Usually, a poorly functioning irrigation system does not cause issues during spring months. Rainfall is typically adequate to mask any issues, at least in my part of the country. In a multi-zone system, you may not even notice that an entire zone is not functioning if you’re not paying close attention. Before the summer heat arrives give your irrigation system a thorough once-through to ensure all zones are functioning, heads are not leaking, and nozzles are not clogged. Identifying and addressing irrigation issues now will prevent dead plants later. Address Environmental Conditions – If Able Living in a neighborhood, my neighbor’s agronomic challenges often become my agronomic challenges. For example, my yard is heavily shaded. In general, most grasses grow optimally with 6-8 hours of direct sunlight. Some parts of my yard receive zero hours of direct sunlight, but unfortunately, the shade trees are on my neighbor's property. I have taken steps to improve sunlight access in the shaded areas by limbing up trees on my property yet the shade issues persist. If you have turf or a plant struggling, first consider if the growing conditions are appropriate for the particular plant. If not, what can you do to manipulate the environment to better suit the optimal growing conditions of the plant? Think back to problems you’ve had in your lawn or garden over the last couple of years. More likely than not, there’s something that can be done now to prevent the same problem from occurring this season.

they don’t get out of hand as the hustle and bustle of summer arrives. Here are a few things I’m working on to prepare my lawn and garden for the summer season. Controlling Reoccurring Pests Early Pests come in several forms. Insects, diseases, and deer to name a few, and I have them all. Last year my azaleas were annihilated by azalea lace bugs. In mild climates, these critters overwinter as eggs on the underside of azalea and rhododendron leaves only to hatch and wreak havoc on azaleas the following season. After reading more about the life cycle of azalea lace bugs I came to understand these pests are much easier to control early in the season when their population is relatively small.

Through proper identification and corrective application at the appropriate time, I expect to have much better control this season. This is true for many pests, including diseases. Understanding the life cycle of a pest, what attracts it to your turf or garden, and what causes it to flourish can all help design a plan to control pests that are annually problematic.

Figure 2. Most turfgrasses grow best with 6-8 hours of direct sunlight. Pruning problematic trees can improve light penetration to thin turf.

Figure 1. Azalea lace bugs can devastate azaleas if left untreated. After hatching in early spring, azalea lace bugs rob nutrients from azalea leaves by inserting a straw-like mouth part into the underside of the leaf. Azalea lace bug symptoms include mottling of the leaf (left) and black/brown speckling on the underside of the leaf.

What's on? GROWING July 2024 | 3

Meet the Team - Inventory

Chelsie Parrilla Inventory Analyst

Cody Zimmerhanzel Inventory Analyst

Jodi Hargrove Inventory Analyst

Kaycee Woods Inventory Analyst

How long have you been at Harrell's? 2 years One of your favorite movies/TV shows? Me Before You / Avatar: The Last Air Bender If you won the lottery today, what would you do with the money? Donate Mostly All of it. What's one unique/funny thing no one at Harrell's knows about you? I refereed intramural sports

How long have you been at Harrell's? 2 months One of your favorite movies/TV shows? Gladiator and Braveheart What job should you never be hired for? Janitorial work If you could go have lunch with anyone (alive or dead) who would it be? George Washington

How long have you been at Harrell's? 19+ years Disney or Universal (PARKS not entertainment)? Disney!! What's your dream vacation? 1 month in Europe, also traveling the world. What's one unique/funny thing no one at Harrell's knows about you? I grew up on a dairy farm and had to help milk and feed cows before school.

How long have you been at Harrell's? 2 months One of your favorite movies/TV shows? Movie-Sandlot What's your dream vacation? Italy If you could go have lunch with anyone (alive or dead) who would it be? Ronald Reagan

Krista Henderson Inventory Analyst

Laura Feaster Inventory Analyst

Stephanie Kaschub Inventory Clerk

How long have you been at Harrell's? 20 years One of your favorite movies/TV shows? Downton Abby What job should you never be hired for? Sales If you could go have lunch with anyone (alive or dead) who would it be? My Dad

How long have you been at Harrell's? 24 years Favorite dessert? Strawberries

How long have you been at Harrell's?

February was my 2 year anniversary One of your favorite movies/TV shows? One of my favorite comfort movies is The Last Unicorn. What job should you never be hired for? Customer service What's one unique/funny thing no one at Harrell's knows about you? I could do a really convincing sounding fake cry.

If you won the lottery today, what would you do with the money? Make trusts for my children and grands. Bless others in need. What's one unique/funny thing no one at Harrell's knows about you? I do not go barefoot anywhere.

4| July 2023

PREVENTION WITH VITALITY Taking the time to see your personal care physician or a specialist on a regular  basis is an important key to maintaining your health and to detecting problems before they become serious.  Because they play such a big role in staying healthy, Vitality offers points for the following preventative screenings:  

ANNUAL DENTAL EXAM – 200 POINTS COLORECTAL SCREENING – 400 POINTS FLU SHOT – 200 POINTS MAMMOGRAM – 400 POINTS PAP SMEAR – 400 POINTS COVID BOOSTER – 250 POINTS

Each screening can be submitted for points once per policy year. To qualify for Vitality Points, you must include proof of your prevention activity. This can include:   An Explanation of Benefits   A medical record indicating the type and date of service provided   A copy of your screening results from the doctor's office 

July 2024 | 5

Summer Recipe - Red White and Blue Trifle

Making the Cream 1. In the bowl of a stand mixer fitted with the paddle attachment, combine the cream cheese and granulated sugar. 2. B eat on medium-high speed until smooth, 1 to 2 minutes. Scrape the sides and bottom of the bowl. 3. W ith the mixer on medium speed, slowly add the heavy cream and vanilla, and mix until combined. 4. S witch to the whisk attachment and whip at medium speed until soft peaks form and the mixture is easy to dollop. Building the trifle 1. P lace a single layer of cake cubes in the bottom of a large (12-14 cup) trifle dish. A pound cake works perfectly for this. 2. Top with two-thirds of the blueberries and blackberries.

3. A dd half of the whipped cream (about 2 cups), then top with two-thirds of the strawberries. 4. R epeat the cake and cream layers once more, then decorate the top with the remaining berries. 5. S erve immediately or make in advance and store in the refrigerator for up to 24 hours.

6| July 2023

Team Harrell's: What's New?

Welcome to Our New Employee-Owners!

Charles Bailey Spreader Driver - DOT Darrell Bledsoe Delivery Driver - DOT

Dwayne Harris Delivery Driver - DOT Aaron Hayes Territory Manager Dwayne Hicks Production Worker Josh Koss Territory Manager Chris Shoemaker Warehouse Worker Jed Spencer Territory Manager Dominic Vercelote Territory Manager

Joe Wenger - Welcome Back Maintenance Crew Leader Davis, Jamar Assistant Operator Zach McIntosh Assistant Operator

CJ Buck Territory Manager Al Craft - Welcome Back Delivery Driver - DOT

Cory Miller Lab Tech-I

Michael Dolan Warehouse Worker Jose Dominguez Delivery Driver - DOT Jason Fischer Territory Manager

Send Us Your Summer Photos! From now until August 10th send your summer vacation pics to mhess@harrells.com for a chance to win a $75 Amazon gift card!

What's on? GROWING

July 2024 | 7

Educational Assistance for Employees

Did you know that Harrell’s offers Educational Assistance? Here’s what you need to know if you’re considering higher education and would like to apply for this program.

• Employees must be employed for one year to be eligible. • The certification or degree must be applicable to your current job. • An application to the program must be submitted to your immediate supervisor with final approval by a member of the Senior Management Team prior to enrollment. • Applications are approved based on meeting the criteria above AND room in the budget. - Harrell’s allocates $12,500 for this program each year. • The program provides reimbursement for tuition and books as follows:

- $2,500/year for undergraduate studies. Participants must earn a passing grade of C or better. - $5,000/year for graduate studies. Participants must earn a passing grade of B or better. - 50% of expenses for certification. Participants must pass their certification exam to be eligible for reimbursement.

If you have any questions or if you’d like more information, please email ella@harrells.com.

8| July 2024

HUMAN RESOURCES

July ANNIVERSARIES

July BIRTHDAYS!

1

Bob Cross

Sales

Golf

3

Will Perez

Hauling

Chicago

3

Casey Rowell

Sales

Golf

1

Amy Dearinger

Warehouse

Columbus Ohio

4

Martuan Estell

Production

HCS

1

Jose Martinez

Warehouse

Oregon

5

Casey Cook

Production

Sylacauga

5

Zach Mitchell

Production

Sylacauga

2

Casey Cook

Production

Sylacauga

6

Kevin Lebanik

Sales

T&L

2

Haydee Lara

Marketing

Lakeland

6

Kyle Terrell

Production

Sylacauga

8

Robert Cook

Hauling

Lakeland

2

Frank Perry

Hauling

Livonia

9

Brian Fischer

IT

Lakeland

3

Deana Morrow Warehouse

Sylacauga

9

Chris Oden

Production

Sylacauga

10

Raymond Snyder

R&D

Lakeland

3

Felix Ruelas

Hauling

San Diego

11

Frank Perry

Hauling

Livonia

5

Ryan Conyers

Compliance

HCS

12

Adam Ellison

Sales

Golf

13

Jay Pock

Sales

Golf

5

Ben Harbin

Warehouse

Chattanooga

14

John Keeler

Sales

Golf

5

KP Peters

Production

HCS

15

Kornelius Gray

Production

Lakeland

15

Earl Smith

Production

Sylacauga

5

Hayley Rhoden

Compliance

Lakeland

15

Nick Swartz

Hauling

Lakeland

6

Leroy Smith

Production

Lakeland

16

George Peterson

Sales

Golf

6

Mark Stovall

Sales

Golf

17

Dave Edison

Sales

T&L

17

David Plunkett

Sales

Golf

6

Sergio Vasquez

Sales

Golf

18

Mark Fields

Hauling

Sylacauga

6

Steven Wilson

Production

HCS

18

Dwayne Harris

Hauling

Los Angeles

18

Kourtney Pock

Sales

Turf

7

AJ Danshaw

Production

HCS

21

Andrew Cain

Sales

Golf

8

Roger Ano

Hauling

San Diego

21

Christian Everitt

IT

Lakeland

21

Kim Martin

Accounting

Lakeland

9

Tanya Wilson

Accounting

Lakeland

21

Rod Moulin

Sales

T&L

10

Javi Diaz

Production

Avon Park

21

Jody Sims

Production

Sylacauga

22

Mark Baker

Warehouse

San Antonio

11

Dwayne Duncan

Hauling

Lakeland

22

Scott Carby

Hauling

San Antonio

13

Marcus Hood

Production

Sylacauga

24

Meagan Blackmon Quality Control

HCS

24

Tonya Farthing

HR

Lakeland

17

Kimberly Rouleau

Sales

Golf

25

Jonathan Penor

Warehouse

Los Angeles

17

Mike Rupp

Sales

Golf

26

Nikki Ensslin

Production

Lakeland

18

Ed Walker

Sales

Golf

26

Marc McCoy

Sales

Golf

26

Greg Nicoll

Sales

Turf

22

Jim Moon

Accounting

Lakeland

26

Brad Smith

Sales

HORT

22

Gene Waring

Warehouse

Lakeland

27

Nick Cole

Sales

Golf

27

Lee Griffin

Spreading

Charlotte

23

Johnnie Wilson

Warehouse

Lakeland

29

Rodney Crick

Warehouse

Oklahoma City

24

Dave Edison

Sales

HORT

29

Thomas Hoffer

Sales

Golf

29

Wil Stuart IV

HR

Lakeland

24

David Montes

Hauling

Homestead

30

Tom Lopez

Sales

Golf

Spring Photos

Danny Baird My grandson, Carl, swimming with the pigs.

Chuck Bramhall Nice spring day at Plymouth Country Club.

Winner

Gloria Mize My daughter, Taylor, and I at Lookout Mountain, TN during Spring Break 2024.

Pamela Farmer Vyper’s 1st birthday spring photo shoot!

Haydee Lara One of Soso’s spring pictures.

10| July 2024

Meagan Blackmon Graduation picture of my daughter from this past May.

Tyler Otero Needed the perfect backdrop. Staying safe at the beach!

Hayley Rhoden Mara super excited for strawberry picking!

Will Edwards Ready for a tubing day!

Mike Hess We bought a house!

Robbie Langley A picture that I took about 3 weeks ago while in Dauphin Island on a long weekend.

July 2024 | 11

6/21/24, 3:01 PM

Summer Crossword Puzzle - Crossword Labs

Summer Crossword Puzzle

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Across 1. Deep sea, fly, trolling, longline, etc. 4. Usually with a boat on a lake/ocean 8. One of the best ways to cool off 10. Exercise your green thumb 11. "Laying out" 13. Lots of cart traffic 14. Plenty of s'mores 15. School's out, time away with family

Down

2. Beach activity 3. This season 5. Sleeping in the great outdoors 6. What makes it hot 7. Better bring your sunscreen and umbrella for the day 9. Usually with hotdogs and hamburgers 12. Through mountains and trails

Answer Key

What's on? GROWING

12| July 2024

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