Team,

I am proud of the resiliency, adaptability, and commitment the Current team has shown in my first six months at the company. We have accomplished a lot and I believe our changes have set a strong foundation for continued improvement.

Looking back a few months, we saw a significant structural change to our organization in October allowing teams that shared complementary skills and functions to be reorganized to work more closely together. Our workforce was realigned into two new operating units: Indoor & Controls and Outdoor & Specialty. We created an engineering council, welcomed new talent in Finance, centralized our marketing organization, consolidated the Supply Chain, Operations and Transformation teams, and implemented an IT Steering Committee. We’ve already seen great progress with the sharing of ideas, best practices, and expertise, leading to more effective solutions and enhanced productivity.

We launched our 2nd Rallying Cry in November to prioritize stabilizing our business while withstanding uncertain macro-economic conditions. Teams are laser focused on service levels, SAP integration and ease of doing business – which have already led to improved performance in many areas. Our service levels continue to recover with overall on time delivery (OTD) at 89% for November, which was the best month of the year thus far and a 4% improvement over October. Our factories averaged 92% on time, while our regional distribution centers averaged 87% on time for the month.

We hosted two separate Agency Council meetings, one for the HLI agents and one for the GLI agents. These meetings are crucial to enhancing our relationships with our agents and enabling us to gain constructive feedback on a multitude of topics including current and future product needs, market pricing, go-to-market strategies, competitive information, and market trends. These insights help drive our decision making, and allow our partners to build confidence and trust in Current while sharing best practices with each other. I want to thank all those who participated in, helped to organize, or contributed to the events which were very successful.

A common theme across both agent council meetings was that the agents are feeling the impact of our improved service levels as well as the investments we have made to improve the ease of doing business with Current through platforms like Salesforce and Connect. They shared optimism and positive feedback. Our customers remain committed to buy from us and increase their business levels as their confidence in our performance continues to improve. It is critical that we continue to improve service
levels and make certain we have put robust procedures and processes in place to maintain service levels as our revenue and production levels increase.

This year has been difficult. We expect to finish 2023 with total revenue significantly lower than last year, because of the slower demand and loss of business related to our service level performance earlier this year. However, we are expecting a strong finish with sales order intake exceeding our forecasted levels when we entered the fourth quarter.

The team is finalizing our 2024 budget, and we are expecting revenues to grow and outpace the market, which is expected to be flat in ‘24. By improving our focus on customers, increasing visibility to service level improvements, and ensuring we are easy to do business with, we are setting a strong foundation for 2024 and predicting a significant increase in profitability.

I am proud to work with the Current team and I am confident that we can accelerate our momentum in 2024.

Steve