August 2023 - Southern Oregon Business Journal

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August 2023 Proudly Serving Benton, Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln & Linn Counties Since 2015 The Journal for Business in Southern Oregon The Southern Oregon Business Journal is Sponsored by “PUMPKIN PLAN“ BOOK REVIEW- PAGE 6 TOM HANKS AND THE POMODORO TIME MANAGEMENT TECHNIQUE - PAGE 4 HEAD BACK TO THE CLASSROOM TO BUILD BUSINESS RESILIENCY - PAGE 32 SouthernOregonBusiness.com Ashland Chamber’s Dana Welsh Retires after 18 years and a lifetime of service Page 38

The Southern Oregon Business Journal extends sincere thanks to the following companies for sponsoring the journal. Without their support we could not produce a FREE resource for Southern Oregon businesses.

A Few Words from Jim August 2023

When Greg Henderson started the Southern Oregon Business Journal he did so with the support of “sponsors”. These companies paid monthly to support Greg and the idea of delivering news about business in Southern Oregon.

They got an ad out of it, but it was really something more than being just an advertiser.

When I took over the Journal we had one remaining original sponsor, AmeriTitle out of Roseburg. Barry stayed with us as a sponsor through the transition from Greg to myself and he sent me an email recently that last month was his last month of sponsorship.

Thank you Barry and AmeriTitle for your support and sponsorship over the years. Greg couldn’t have launched the Journal without your support and I couldn’t have grown it to its now 22,000 readers as of last year. Even though we are sad to see you go, we understand it had nothing to do with our journal and we completely understand and appreciate all you have done for us in the past.

Barry has optimized what I believe true sponsorship means. You support an organization and its mission because of the greater good it will do, not for the ad or the logo. I sponsor a lot of events and organizations in the community. We do it because it’s important and we know without the support it might not happen.

If you ever buy a home or building for your business I highly recommend that you ask for AmeriTitle as your title company. I have in the past and I will continue to do so in the future.

Also this month we celebrate the retirement and 18 years of service to the Ashland Chamber of Commerce by my friend Dana Welsh on page 38.

PLEASE SUPPORT OUR ADVERTISERS

PEOPLE’S BANK - PAGE 30

MANAGED HOME NET - PAGE 31

SOU - LEADERSHIP BEGINS HERE

SOUTHERN OREGON UNIVERSITYPAGE 16

PROJECT A - PAGE 36

ENERGY TRUST OF OREGON - PAGE 39

| Southern Oregon Business Journal August 2023 2
Founder Greg Henderson ghenderson703@gmail.com Greg started the Southern Oregon Business Journal in 2015 and retired in 2020.
August 2023 Proudly Serving Benton, Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln & Linn Counties Since 2015 The Journal for Business in Southern Oregon Business Journal Sponsored by “PUMPKIN PLAN“ BOOK REVIEW- PAGE 6 MANAGEMENT TECHNIQUE PAGE 4 BUSINESS RESILIENCY PAGE 32 SouthernOregonBusiness.com
Cover Photo by Jim Teece Dana Welsh (Center), her husband Daniel (Left) and Dana Preston (Right) during an Ashland Chamber 4th of July Parade.
Page 38
Ashland Chamber’s Dana Welsh Retires after 18 years of service
Southern Oregon Business Journal The Pomodoro Time Management Technique 4 “The Pumpkin Plan," By Mike Michalowicz 6 New Report Details - Paid Family, Medical, And Safe Leave Impacts In Oregon 8 Klamath County Draft Strategic Plan And Public Comment 9 Oregon Exports Continued Strong Growth In 202 10 State Releases Draft Five-Year Broadband Action Plan 12 Oregon’s Leisure And Hospitality Industry 14 Self-Serve Fueling In Oregon 22 Asante Names A New President And CEO 23 Lithia & Driveway (Lad) Reports 12% Revenue Increase And Diluted Eps Of $10.78 24 Dutch Bros Inc. Reports Second Quarter 2023 Financial Results 26 Oregon Shakespeare Festival Board Of Directors Announces Tim Bond As Osf’s New Artistic Director 28 Head Back To The Classroom To Build Business Resiliency 32 The Last Groundhog’s Day 35 Ashland Chamber’s Dana Welsh Retires After 18 Years Of Service 38 A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED 5350 HWY 66, Ashland, Oregon 97520 www.SouthernOregonBusiness.com AUGUST 2023 - TABLE OF CONTENTS

The Pomodoro Time Management Technique

Work: Focus solely on the task at hand for the entire duration of the pomodoro. Resist the urge to multitask or switch to other activities.

Break: Once the timer goes off, take a short break of around 5 minutes. Use this time to relax, stretch, or do something unrelated to work.

Repeat: After the break, reset the timer and start another pomodoro. Work on the task with the same focus and dedication. After completing four consecutive pomodoros, take a more extended break, typically 15-30 minutes.

Iread a recent tweet about Tom Hanks first novel and a time management technique he used while writing it.

The Pomodoro Technique is a time management method developed by Francesco Cirillo in the late 1980s. It is named after the Italian word for "tomato" (pomodoro) because Cirillo used a tomato-shaped kitchen timer to track his work intervals. The technique is designed to enhance productivity by breaking work into focused intervals, followed by short breaks.

The Pomodoro Technique follows a simple and structured approach:

Planning: Begin by identifying the task you want to work on. It could be writing an article, analyzing data, or any other work-related activity.

Set a timer: Set a timer for a fixed period, typically 25 minutes, known as a "pomodoro." During this time, you commit to working on the task without any distractions or interruptions.

Tracking: Keep track of the number of pomodoros completed for each task. This helps you assess your productivity and estimate the effort required for future tasks.

The underlying principle of the Pomodoro Technique is to leverage time pressure and focused work periods to enhance concentration and productivity. By breaking work into manageable chunks, it helps combat procrastination, maintain motivation, and prevent burnout.

While the technique was originally developed using a physical timer,

| Southern Oregon Business Journal August 2023 4 FEATURED

there are now numerous Pomodoro apps and digital timers available that make it easier to follow the method on computers and smartphones.

The Pomodoro Technique has gained popularity among individuals seeking to improve their productivity, including students, professionals, and entrepreneurs. Its structured approach allows for increased focus, better time management, and reduced distractions, ultimately leading to more efficient work and improved overall productivity.

The effectiveness of the Pomodoro Technique can vary from person to person, as different individuals have unique work styles and preferences. However, many people find the technique to be highly effective in improving their productivity. Here are some reasons why the Pomodoro Technique can be beneficial:

Increased Focus: By working in concentrated bursts of time (pomodoros), the technique helps improve focus and concentration on a specific task. Knowing that you have a limited time to work on a task can motivate you to stay on track and avoid distractions.

Time Awareness: The Pomodoro Technique creates a heightened awareness of time and how it is being utilized. It helps individuals become more mindful of how long tasks actually take, which aids in better time estimation and planning for future work.

Mitigation of Procrastination:

Breaking work into manageable intervals makes tasks feel less overwhelming and more achievable. This can reduce the tendency to procrastinate, as the thought of working for a short, defined period is often more appealing than tackling a large task all at once.

Improved Time Management: By allocating specific time slots to different tasks, the Pomodoro Technique encourages better time management. It helps individuals prioritize tasks, allocate time appropriately, and ensures a balance between work and breaks.

Productivity Assessment: Tracking the number of completed pomodoros provides a tangible measure of productivity. It allows individuals to reflect on their work patterns, identify areas for improvement, and set realistic goals for future tasks.

Avoiding Burnout: Regular breaks incorporated into the technique help prevent mental fatigue and burnout. Short breaks between pomodoros allow for relaxation, rejuvenation, and increased overall productivity.

While the Pomodoro Technique has numerous benefits, it may not be suitable for everyone. Some individuals may find it challenging to work in short bursts or may require longer uninterrupted periods for certain tasks that demand deep focus. It is essential to adapt the technique to individual needs and work styles.

To determine the effectiveness of the Pomodoro Technique for yourself or your readers, consider experimenting with it for a period of time. Observe how it impacts your focus, productivity, and overall well-being. It can also be helpful to gather feedback from others who have implemented the technique in their work routines and explore case studies or research studies that investigate its effectiveness in different contexts.

Ultimately, the effectiveness of the Pomodoro Technique relies on personal experimentation and adaptation to individual work habits and preferences.

Southern Oregon Business Journal August 2023 | 5

exceptional growth and weeding out mediocrity. In this journal review, we delve into the key concepts and takeaways from "The Pumpkin Plan," evaluating its relevance and potential impact on modern business strategies.

Summary of Key Concepts: Michalowicz introduces readers to the "Pumpkin Plan" by drawing parallels between growing a successful business and cultivating giant pumpkins. He outlines a step-by-step process to help entrepreneurs achieve remarkable growth:

Plant the Right Seeds

:

“The Pumpkin Plan," authored by Mike Michalowicz, presents a refreshing and insightful approach to business growth that draws inspiration from an

unexpected source: pumpkin farming. Published in 2012, this book offers entrepreneurs a unique perspective on cultivating their businesses by applying the principles of nurturing

Just as pumpkin farmers carefully select the best seeds to produce prizewinning pumpkins, business owners should identify their most profitable and enjoyable customers. These are the clients who align with the company's vision and generate significant revenue.

| Southern Oregon Business Journal August 2023 6 BOOK REPORT
"The Pumpkin Plan," by Mike Michalowicz

Nurture Growth:

Similar to tending to a pumpkin plant, entrepreneurs should focus their efforts on cultivating relationships with their key clients. By offering exceptional value and personalized attention, businesses can foster loyalty and long-term partnerships.

Weed Out Mediocrity:

Just as pumpkin vines must be pruned to ensure that resources are directed towards the healthiest pumpkins, business owners need to eliminate low-value clients and projects that drain resources and hinder growth.

Replicate Success:

To achieve exponential growth, entrepreneurs should identify the attributes and strategies that contribute to their best clients' success and replicate those qualities across their customer base.

Harvest Abundance:

By focusing on their most valuable clients and consistently delivering exceptional value, businesses can reap the rewards of sustained

growth, increased profits, and a stellar reputation.

Evaluation and Analysis:

"The Pumpkin Plan" offers a refreshing departure from conventional business growth strategies.

Michalowicz's use of the pumpkin farming metaphor provides a memorable framework that resonates with readers, making complex business concepts more accessible and relatable. The book emphasizes the importance of customer-centricity, a principle that remains at the core of successful business strategies.

One of the book's standout strengths is its actionable approach. Michalowicz provides a clear roadmap for entrepreneurs to identify their ideal clients, nurture relationships, and eliminate inefficiencies. By incorporating real-world examples and case studies, the author offers practical insights that business owners can readily apply to their own ventures.

However, some readers may find the metaphorical approach to be overly simplistic at times. While the

pumpkin analogy is effective in conveying the core principles, it may not fully address the intricacies and challenges of modern business environments. Additionally, the book could benefit from more in-depth discussions on scalability and long-term sustainability, as these aspects are crucial for businesses aiming for substantial and enduring growth.

Conclusion:

"The Pumpkin Plan" by Mike Michalowicz is a thoughtprovoking and engaging guide to achieving remarkable business growth by adopting a customercentric mindset. The book's innovative approach, coupled with actionable strategies, provides entrepreneurs with a practical roadmap to cultivate their businesses and achieve sustained success. While it may not delve deeply into all facets of modern business dynamics, "The Pumpkin Plan" offers valuable insights that can inspire entrepreneurs to prune away mediocrity and cultivate the path to prosperity.

Southern Oregon Business Journal August 2023 | 7

https://www.qualityinfo.org/-/new-report-details-paid-family-medical-andsafe-leave-impacts-in-oregon-2?redirect=%2F

The following is a summary of findings from our latest report. For more details, read the full report, or get the top takeaways from the report in the podcast.

Paid Leave Oregon will provide paid leave time for parents bonding with new children, serious health conditions experienced by workers or their families, or those needing safe leave. While the paid benefits are new as of September 3, 2023, the situations they cover have long existed in the workforce.

About 45,600 Oregon women ages 15 to 50 gave birth to children in the past 12 months. Seven out of 10 had also worked in the past 12 months; six out of 10 were still employed.

Some adults in the Western region of the U.S. who worked in the past week also had serious health conditions in life, such as cancer (7%). Conditions that require inpatient treatment, pose an imminent threat to life, or require ongoing treatments or care may qualify for paid leave.

In 2016 and 2017, 1.6 million women and 848,000 men in the

New Report Details - Paid Family, Medical, and Safe Leave Impacts in Oregon

U.S. had missed at least one day of work due to intimate partner violence or stalking. Existing programs have not been equally accessible to all workers. Workers who were either younger, those with less educational attainment (regardless of age), and workers of Hispanic or Latino origin were less likely to have access to leave. Even with the existing patchwork of available leave options to workers, there is still some unmet need for leave time. In the average week in 2017 and 2018, 9.2% of all workers with existing, employerprovided paid leave time in the U.S. needed to take leave from work, but did not.

Washington’s Paid Family and Medical Leave (PFML) program began paying benefits in January 2020, and has some similar provisions to Paid Leave Oregon. Those include time to bond with a newly born or placed child in a family, and for workers’ own or their family members’ serious health conditions.

Washington’s first month of claims was the highest volume in the program’s first three years

of operation at 24,600, or 0.93% of program-eligible workers.

Monthly claims averaged 17,700 per month in a more established program period.

Women, and workers in their thirties, made up notably larger shares of those approved for paid family and medical leave than their shares of all eligible workers in Washington.

On average, workers who took paid family and medical leave in 2022 did not use the full amount of eligible time away from work. If Oregon’s experience is similar to Washington’s, the Paid Leave Oregon program could possibly expect between 14,000 and 21,000 claims for benefits in September 2023. Existing eligibility for parents’ bonding time with new children could potentially put September 2023 claim volume as high as 37,000. Monthly claims will likely stabilize at a lower level in an established Paid Leave Oregon program, potentially resulting in between 10,000 and 14,000 monthly claims. More details are available in the full report.

| Southern Oregon Business Journal August 2023 8 PAID LEAVE OREGON
The full report can be found at https:// www.qualityinfo.org/documents/20126/110743/ Workforce+Impacts+of+Paid+Family%2C+Medic

Klamath County Draft Strategic Plan and Public Comment

want to ensure that it accurately represents the needs and aspirations of our community.

Your Voice Matters - We Invite Your Input

endeavor, you are helping us shape a community that thrives, an organization that evolves, and a future that we can all be proud of.

Important Dates

Release of Draft Strategic Plan: August 9, 2023

We are thrilled to share with you the preliminary version of our upcoming strategic plan, which is a result of months of collaborative efforts, insightful discussions, and invaluable input from individuals like yourself who are an integral part of our vibrant community.

At the County, we believe in the power of collective vision and the strength that comes from united goals. This draft strategic plan serves as a roadmap that will guide us over the next five years as we strive to shape a brighter future for all. But before we finalize this plan, we

Now is your opportunity to make an impact! Your perspectives, opinions, and ideas are invaluable to us. We invite you to take part in the process by reviewing the draft strategic plan, available here, and sharing your thoughts with us.

How to Provide Your Feedback

We have made it easy for you to offer your input. Simply click here and take a few moments to share your feedback, suggestions, and any concerns you might have. This can be related to the overall vision, mission, goals, objectives, or specific initiatives within the plan.

Be Part of the Positive Change

This strategic plan represents a collective effort towards building a better future for everyone involved. By joining us in this

Deadline for Public Comment: August 23, 2023

Finalization of Strategic Plan: September 15, 2023

Once we have gathered all the feedback and carefully considered each suggestion, we will integrate the most valuable insights into the final version of the strategic plan. This plan will serve as our blueprint for growth and development, driving positive change and progress in our community. Thank you for your continuous support, engagement, and commitment to shaping a better future together. We are looking forward to your valuable input as we embark on this transformative journey.

The Draft Plan can be found at https:// www.klamathcounty.org/ DocumentCenter/View/35203/KlamathCounty-Strategic-Plan-DRAFT-8723

Southern Oregon Business Journal August 2023 | 9 KLAMATH COUNTY
The Klamath County Strategic Planning Team

Oregon Exports Continued Strong Growth in 2022

Oregon exports have grown quickly over the past four to five years. In fact, while the state experienced recession at the onset of the COVID-19 pandemic, we saw exports out of the state accelerate. Much of this acceleration was due to the

high demand for semiconductors the past several years, which is one of Oregon’s primary exports.

Exports are a larger share of Oregon’s economy than the national average with total exports in 2022 representing 14.5% of GDP compared to

10.3% nationally. As a coastal state this is not too surprising, as Oregon’s access to international markets is far greater than most states. Over the past 10 years, exports as a share of GDP has been declining nationally; however, Oregon

| Southern Oregon Business Journal August 2023 10 EXPORTS

has seen the reverse with a modest uptick in exports relative to gross output.

Exports out of Oregon have outpaced statewide employment and payroll. This tells us that an increasing share of exports are passing through Oregon rather than being produced in-state. Businesses exporting their goods through Oregon ports contribute to the regional economy, however Oregonians would realize more of these export gains if those producers were located here in Oregon.

they remain above prepandemic levels in 2019 by 16.7%.

The pace of export growth out of Oregon grew dramatically during the pandemic. Oregon exports grew by over 31% in 2022 from levels in 2019.

Oregon’s export growth exceeded the national average with national exports growing 25% between 2019 and 2022.

2023 has continued to see export gains with year-todate exports through February 2023 around 2% higher than where we were at this point in 2022.

Other large export industries include industrial machinery ($3.5 billion in 2022 exports); motor vehicle parts ($2 billion); engines, turbines, and power transmission equipment ($1.7 billion); and pesticides, fertilizers, and other agricultural chemicals ($1.5 billion). The fastest growing export industry is motor vehicle parts where total exports from Oregon only totaled around $73.5 million in 2019 but surged by 2022 to over $2 billion.

Oregon Export Highlights

$33.9 billion in exports in 2022; an increase of 13.4% from levels in 2021.

Oregon had the 3rd largest export value per capita in 2022, trailing only Texas and Louisiana.

Oregon’s largest trade partner continues to be China, accounting for $8.4 billion in exports in 2022. Exports to China were down in 2022 compared to levels in 2020 and 2021. However,

Semiconductors and other electronic components rank as Oregon’s largest export industry accounting for $11.4 billion in exports in 2022; roughly 1/3rd of all Oregon exports.

Semiconductor and other electronic component exports continue to grow with total exports up 9.1% in 2022 from 2019 levels. However, the pace of growth is slower than the statewide average for all exports during that same time (+31%).

It is important to note that transportation equipment manufacturers in Oregon (the broader industry that includes motor vehicle parts) posted employment declines of over 14% in Oregon since the onset of the pandemic. As a result, we can assume that most of the export growth in motor vehicle parts is likely passing through Oregon and not originating in the state.

Southern Oregon Business Journal August 2023 | 11

State releases Draft FiveYear Broadband Action Plan

Here is the first part of the Draft Five-Year Action Plan Broadband Equity, Access, and Deployment (BEAD) Program released by the Oregon Broadband Office.

1. Executive summary The Oregon Broadband Office1 (OBO, an entity within the Oregon Business Development Department), the Eligible Entity for purposes of this Five-Year Action Plan, is pleased to present this Broadband Equity, Access, and Deployment (BEAD) Program Five-Year Action Plan, which comprises a comprehensive needs assessment (including the needs of covered populations and underrepresented communities) and establishes Oregon’s goal of ensuring universal broadband service availability and increased adoption among the residents, businesses, and institutions of Oregon.

1.1 Vision and objectives

High-speed internet access is a necessity for all Oregonians regardless of their age, race, income, living space, native language, resources available to them, and specific challenges they may face in their daily lives.

The State’s primary goals for broadband deployment are

aligned with the principal focus of the BEAD program:2

1. Connecting 100 percent of unserved locations (i.e., below 25/3 Mbps);

2. Connecting 100 percent of underserved locations (i.e., between 25/3 and 100/20 Mbps); and

3. Delivering gigabit connections to community anchor institutions (CAI) that do not have that level of service. Although broadband is widely available in Oregon, it is not universally available.

This Plan builds on Oregon’s world-class telecommunications networks from undersea cables to statewide fiber optic backbone networks. Oregon Revised Statutes (ORS)

285A.166 created the Oregon Broadband Office (OBO) to “[a]dvocate for the adoption of public policies that close the continuing digital divide by removing barriers to and supporting broadband infrastructure deployment.”3

1.2 Current state of broadband and digital inclusion Oregon is ahead of the U.S. average in internet use. According to the most recent NTIA data (November

2021), 84.1 percent of Oregon residents use internet at home (compared to a national average of 75.6 percent).4

However, across Oregon many residents still face barriers to adoption. These barriers include access to high-speed internet, affordable service and devices, accessible devices and content, as well as digital literacy skills.

OBO looks forward to bridging the digital divide, in part by expanding its partnerships with nonprofits, private corporations, state agencies, and tribal entities as it works to allocate, fairly and efficiently, the $689 million that the NTIA has allocated to Oregon under the BEAD program. 5

“Access to quality internet in 2023 is critical to a community’s local economy,” Governor Tina Kotek said also acknowledging the positive impact BEAD funding will have on the state. “This substantial investment in Oregon’s broadband infrastructure will help to remedy the digital divide in rural, unserved, and underserved communities

| Southern Oregon Business Journal August 2023 12 BROADBAND

across the state, ensuring that Oregonians are able to access telehealth, business opportunities, education, and so much more.”6 “High-speed Internet is essential to our daily lives, but too many communities across our state lack access to reliable, affordable, high speed broadband speeds. We’re changing that,” emphasized Sophorn Cheang, Director, Business Oregon.7

1.3 Obstacles or barriers

Oregon faces unique obstacles and barriers to broadband deployment caused by its impressive topography. As described in greater detail in Section 4, Oregon faces natural disaster challenges from coastal hazards and tsunamis, droughts, earthquakes, extreme heat, floods, landslides, volcanos, wildfires, windstorms, and winter storms. Although state and local entities have created plans—especially for handling wildfire risks—there is a possibility that natural disaster and emergency events will affect the timelines in this Plan, even as broadband networks help any affected communities recover. 1.4 Implementation plan This Plan presents the state’s estimated costs, timeline, and strategies for achieving universal service —along with strategies related to remedying inequities in digital inclusion (see Section 5).

1.4.1 Priorities OBO staff have actively worked to build trusting relationships with stakeholders and the public through longstanding collaboration and advocacy. OBO’s comprehensive stakeholder engagement is described in Section 5.1. OBO has kept stakeholders informed about the BEAD program as information became available, and outreach and engagement is ongoing. 1.4.2 Estimated timeline and cost for universal service

NTIA allocated $688,914,932.17 to Oregon under the BEAD program to help close the broadband gap in the state. Oregon projects, however, it cannot achieve universal service with BEAD program funding alone. Oregon estimates that current funding, subject to assumptions described in Section 5, will deliver broadband to most but not all of the unserved and underserved addresses in Oregon. Oregon will adhere to the timeline requirements of the BEAD program. Construction will take longer where larger-scale deployment is needed, where geography is challenging, or where Oregon’s unique topography, geography, and history require extra care and permitting.

3. ORS 285A.166, “Oregon Broadband Office,” https://oregon.public.law/ statutes/ors_285A.166. See also “Broadband Program Development,” OBO,

4. “Digital Nation Data Explorer: Internet Use at Home,” NTIA, November 2021 data, https:// ntia.gov/otherpublication/2022/ digital-nation-data-explorer.

5. “Biden-Harris Administration Announces State Allocations for $42.45 Billion High-Speed Internet Grant Program as Part of Investing in America Agenda,” NTIA Press Release, June 26, 2023, https:// ntia.gov/pressrelease/2023/bidenharris-administration-announcesstate-allocations-4245-billion-highspeed; “Oregon to Receive $689 Million for Broadband Infrastructure,” State of Oregon, June 26, 2023, https://www.oregon.gov/newsroom/ Pages/NewsDetail.aspx? newsid=166749.

6. “Oregon to Receive $689 Million for Broadband Infrastructure,” State of Oregon, June 26, 2023, https:// www.oregon.gov/newsroom/Pages/ NewsDetail.aspx?newsid=166749.

7. “Oregon to Receive $689 Million for Broadband Infrastructure,” State of Oregon, June 26, 2023, https:// www.oregon.gov/newsroom/Pages/ NewsDetail.aspx?newsid=166749.

The full draft can be found at https://www.oregon.gov/biz/ Publications/Broadband/ DRAFT_BEAD5yractionplan.pdf

It is open for comments for a very short window due to federal deadline.

1. Oregon Broadband Office, https:// www.oregon.gov/biz/programs/ oregon_broadband_office/pages/ default.aspx.

2. “NOFO: BEAD Program,” NTIA, https://broadbandusa.ntia.doc.gov/ sites/default/files/2022- 05/ BEAD%20NOFO.pdf, p. 7.

Southern Oregon Business Journal August 2023 | 13

Oregon’s Leisure and Hospitality Industry

Leisure and hospitality businesses employed 198,200 workers on average in 2022, up from 162,200 workers in 2020. Of those, roughly one out of nine jobs were in accommodations, slightly less than in arts, entertainment,

and recreation where about one in eight leisure and hospitality industry jobs were. About three-fourths of leisure and hospitality workers worked in food services and drinking places. These annual average figures mask how the COVID-19 pandemic has

disproportionally impacted this sector of the economy. In spring 2020, mandated closures or curtailments for entire business categories, as well as changing consumer spending patterns in response to the pandemic, resulted in massive job loss in

| Southern Oregon Business Journal August 2023 14 EMPLOYMENT

just a short time.

From February 2020 to April 2020 the leisure and hospitality sector shed 52% of payroll employment, compared with a loss of 14% across all Oregon industries. Consumers quickly changed food buying habits under the Stay Home- Save Lives mandated closures, and much of the population was in a hunker-down mentality as the pandemic swept in. Leisure and hospitality had 216,500

jobs in February 2020 and by April 2020 employment fell to 105,000, essentially erasing the industry’s previous 30 years of job gains. Of the 280,900 payroll jobs Oregon lost during that time, 111,500 of those, or nearly 40%, were in the leisure and hospitality sector.

Now about three years into the employment recovery from the depths of the Pandemic Recession, the leisure and hospitality sector

has recovered 90.5% of the jobs lost, while overall employment has regained 13,200 more jobs than were lost to the pandemic. Leisure and hospitality is down 10,600 jobs compared with pre-pandemic employment, or about 5% below its peak. There were 205,900 jobs in Oregon’s leisure and hospitality industry in June 2023, or about 10% of Oregon’s total nonfarm payroll employment.

Southern Oregon Business Journal August 2023 | 15
sou.edu • 855-470-3377
“SOU gave me the opportunity to grow and to change my life and to help change the lives of other people.”
ANGELICA RUPPE MS ’86

Nationally, data from the Census Bureau’s new Business Trends and Outlook Survey shows the accommodation and food services industry reporting the current conditions index value of 51.7, which is a bit lower than the all-industry average current condition index of 53.6 in July 2023. Despite slightly lagging the all-industry average, the current conditions index in the accommodations and food services industry was

lower one year ago, at 44.9, and has shown improvement in the past year. A portion of the index includes responses from businesses asking if current business conditions are below average or poor. The percent of accommodations and food service businesses reporting poor or below current conditions declined from 28.4% for the two-week period ending July 31, 2022 to 23.0% for the similar period ending July 30, 2023.

The saw-toothed look on the graph shows the seasonal nature of work in this tourismrelated industry, as well as the precipitous declines and recovery seen in the past three years.

During the Great Recession, employment in this industry fell by 6.1% from 2008 to 2010. Oregon’s all-industry employment decline was slightly steeper, with payroll jobs declining by 7.4% from pre-recession peak to trough.

Southern Oregon Business Journal August 2023 | 17

By 2018, leisure and hospitality employment rose by 30.1% compared with a gain of 19.3% for total industry employment. As of February 2020, the month before the pandemic hit our economy in earnest, leisure and hospitality was still showing modest over-theyear job growth, rising by 1.8% (+3,800 jobs).

pandemic when the Almeda, Obenchain, and Slater fires hit Southern Oregon. Many of those who were evacuated or lost homes were able to find temporary or long-term shelter in the area’s hotels and other lodging places. Had it been a normal nonpandemic summer near the peak of tourist season, it is likely that many of those hotels would have been filled with usual summer travelers.

Over the most recent 12 months ending in June 2023, the arts, entertainment, and recreation industry gained 2,500 jobs or a gain of 9.5%. Accommodations added 1,500 job, an increase of 6.3%. Food services and drinking places employment increased by 5,300 jobs statewide, a gain of 3.5%. Within the food services component, the gain was uneven with full-service eating places up by 4,200 jobs or 6.4% and limitedservice eating places down 1,500 jobs, a decline of 2.1%. Full-service restaurant employment fell more sharply early in the pandemic than limited-service establishments.

One blessing in disguise occurred during the

Connection to Tourism

We often think of leisure and hospitality as a tourism industry. While many jobs in this industry are reliant upon tourism, local spending also plays a significant role. The Oregon Tourism Commission contracts Dean Runyan Associates to produce travel spending impact analysis for Oregon. According to their Oregon Travel Impacts 19912022 report’s preliminary estimates, travel spending generated 75,420 direct jobs in the accommodation and food services sector in 2019 and fell to 58,440 in 2020. In 2019 there were 20,600 direct jobs in the arts, entertainment, and recreation sector, which fell to 16,300 in 2020.

By 2022, travel generated employment had recovered and slightly exceeded prepandemic recession totals with 76,050 direct travel jobs in accommodations and food services, and 20,480 arts, entertainment, and recreation travel industry employment jobs. Combined, these jobs made up about 82% of total direct travel-generated employment that year. Retail and wholesale trade, professional and business services, and transportation were other industries that had direct travel-generated employment in Oregon. While tourism is undoubtedly critical to the growth and success of many leisure and hospitality jobs, there are likely even more that depend upon local business and customers. Dean Runyan Associates’ most recent visitor volume and travel impact report can be found at: Oregon Travel Impacts: 2003 – 2022, Dean Runyan Associates - Travel Oregon.

Leisure and Hospitality’s Sales and Share of Oregon’s

Gross Domestic Product

According to the 2017 Economic Census, sales in Oregon’s accommodation

| Southern Oregon Business Journal August 2023 18

and food services industry totaled $11.8 billion among 9,261 firms. Five years earlier, total sales in Oregon were just under $8.5 billion. The arts, entertainment, and recreation industry had $1.7 billion in sales among 1,362 Oregon firms in 2017. The Economic Census is only conducted every five years.

Oregon’s gross domestic product (GDP), the estimated value of all goods and services produced in the

economy, is also estimated for the leisure and hospitality sector. The Great Recession drove leisure and hospitality industry GDP down 10% between 2007 and 2009. The industry fully recovered by 2012, with GDP totals above the pre-recession level and continuing to grow until 2019 when about $8.8 billion was generated in Oregon’s economy. Total leisure and hospitality GDP plunged to $6.63 billion in 2020, before rebounding nearly to the pre-

pandemic level to reach almost $8.75 billion on 2021. In 2022, Oregon’s leisure and hospitality gross domestic product was $10.79 billion according to the Bureau of Economic Analysis.

With the growth in recent years, the relative share that leisure and hospitality contributes to Oregon’s overall economy has varied from about 4.0% of total GDP in 1997 to about 3.3% during the Great Recession in

Southern Oregon Business Journal August 2023 | 19

2008-2010. In 2020, leisure and hospitality’s share of Oregon’s GDP fell to 3.1% and recovered slightly to 3.8% in 2021. In 2022 leisure hospitality industry comprised 4.6% of Oregon’s total GDP, a peak for the series going back to 1997.

establishments with 10 to 49 workers.

Coast Most Dependent on Leisure and Hospitality

Conclusion

Most Oregon Leisure and Hospitality Establishments Are Small

In Oregon, there were just 90 leisure and hospitality establishments that had 100 or more workers at the beginning of 2022. Size of establishment data are published for only the first quarter of each year, typically the slowest season for leisure and hospitality, so that may skew these values. An establishment may have no paid employees during the slowest winter months, and then bring on seasonal workers during the busier summer months. The greatest number of establishments had between one and four workers, and slightly fewer employed between 10 and 19 workers. Of Oregon’s 188,083 leisure and hospitality jobs in March 2022, 119,670 were in

The coastal counties Clatsop, Lincoln, and Curry are the most leisure and hospitality dependent in Oregon, with more than twice the share of employment as in Oregon statewide. Other counties including Coos, Deschutes, Tillamook, and Hood River counties also have a strong concentration of leisure and hospitality jobs.

The map displays the location quotients for the leisure and hospitality industry within Oregon. Location quotients are a measure of industry employment concentration. If a county has a location quotient of 1.0 that means its share of leisure and hospitality jobs compared with the all-industry total is the same share of employment in that industry as the statewide total. Oregon as a whole has a very similar concentration of leisure and hospitality jobs to the United States. Tourism hot spot counties such as Hood River and Deschutes have strong

While below the prepandemic total, nearly 200,000 jobs can be found across Oregon’s nearly 14,000 leisure and hospitality establishments. As the economy continues to recover from the pandemic, we can hope that this industry recovers as well. Many Oregonians, including myself, started their careers working in restaurants. Those skills, such as getting along with coworkers, providing quality customer service and countless more, are essential and transfer to many other industries and jobs. Recovery from the pandemic and continued population growth will bring many opportunities to apply those skills, in Oregon’s leisure and hospitality businesses and beyond.

| Southern Oregon Business Journal August 2023 20
leisure and hospitality location quotients.

Broadband : Future Proofing Oregon

Join us in Ashland, Oregon on October 26th and 27th for the 26th annual Oregon Connections Telecommunications Conference.

This year's conference theme is Broadband : Future Proofing Oregon and will feature keynotes by Senator Ron Wyden and NTIA’s Adam Geisler.

Senator Wyden will discuss his vision for a future where all Oregonians have access to high speed, a ordable Broadband and the tools to use it e ectively.

Adam Geisler, Division Chief Tribal Connectivity and Nation to Nation Coordination at US Department of

Commerce NTIA will present Money Talks and Implementation Rocks! The $3 billion journey of NTIA's Tribal Broadband Connectivity Program: lessons learned and opportunities discovered.

Other sessions include : Working Partnership Models (Non-Profit, Municipality, EDD, Tribal) ; Convergence-Colliding Technologies ; Broadband 101 ; What Happened To Telephone? ; Telehealth ; Overbuilding? Or Future Proofing?

Sessions and Speakers Subject to Change

Sponsors (as of 7/7/2023)

EnerTribe, Inc, WBE Technologies LLC, Power & Tel, Quantum Fiber, Walker, Millennium, Northwest Technology Sales, Rabbit Communications LLC, Zyxel Communications, Inc.

Exhibitors (as of 7/7/2023)

Alianza, Cambium Networks, Core Telecom Systems, Dura-Line, Link Oregon, Power & Tel, Precision Fiber, Inc., World Wide Technology

Please visit our website at OregonConnections.info to register to attend in person or online or sign up as a sponsor or exhibitor.

Opening Keynote
Former Division Chief (NTIA)
Closing Keynote

Self-Serve Fueling in Oregon

For the first time in more than seven decades, drivers in Oregon are allowed to pump their own gas.

In 2023, the Oregon legislature passed two bills into law that changed the way Oregonians and visitors pump gas. House Bills 2426 and 3260 allow for the option of self-serve gas within Oregon.

What do the laws allow?

House Bill 2426 created provisions that allow for the following:

In 20 counties, self-serve gas is allowed at all hours. These counties include Baker, Clatsop, Crook, Curry, Gilliam, Grant, Harney, Hood River, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Tillamook, Umatilla, Union, Wallowa, Wasco, and Wheeler.

In 16 counties, gas stations can have no more than 50% of fuel pumps available for self-serve gas. These counties include Benton, Clackamas, Columbia, Coos, Deschutes, Douglas, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Washington,

and Yamhill. Self-serve is an option for these stations, not a requirement. Some stations may elect not to offer self-serve. For those that do, the following requirements must be met:

• Stations must have attended service at the other 50% of their gas pumps.

• Signs must be posted that identify the self-serve and attended service gas pumps.

• Self-serve can only be allowed during the hours an attendant is available.

• The price is the same for both self-serve and attended service.

House Bill 3260 allows for selfserve gas at retail stations in Detroit, Oregon. This provision will end on January 1, 2029.

Any gas station with an attendant or other employee on duty must provide refueling assistance to customers with disabilities.

Exemptions:

1. Pilots may fuel their own aircraft at airports permitted by the Oregon Department of Aviation.

2. Motorcyclists operating their motorcycles may fuel their own motorcycles in all counties.

3. Operators of diesel vehicles still may fuel their vehicles in all counties.

To learn more, please visit Choice at the Pump, hosted by the fueling industry partners.

https://

www.choiceatthepump.com/

Compliance with the Americans with Disabilities Act (ADA)

All gas stations are subject to the Americans with Disabilities Act (ADA) and Oregon law, which require equal access to fuel for people with disabilities.

To find out what is allowed in your county, visit OSFM's selfserve map.

https://geo.maps.arcgis.com/ apps/View/index.html?

appid=fe6b92d4da524814838 98a871928588c

| Southern Oregon Business Journal August 2023 22 SELF SERVE

Asante names a new president and CEO

After a national search, the Asante Board of Directors has named Tom Gessel to lead the organization.

Following a nationwide search, the Asante Board of Directors has named Tom Gessel to lead our organization as the new president and chief executive officer effective Sept. 18.

Gessel brings 20 years of experience in health care at the executive level and nearly 35 years of experience in the industry overall. Most recently he served as the group president of a not-for-profit 20-hospital system operating in Colorado and Kansas.

“On behalf of the Board of Directors I am pleased to welcome Tom to the Asante team as the new president and chief executive officer,” said Peter Angstadt, Asante board chair. “His impressive and extensive health care experience and his open, personable and enthusiastic leadership style made him our top choice.”

Gessel has broad experience in all areas of health systems, hospitals and provider groups. This includes expertise in strategic planning, operational

improvement and oversight of rural and community hospitals, outpatient centers and a large psychiatric hospital. He has developed and implemented strategies proven to grow volumes, improve cost efficiencies and increase the number of physician-group providers.

“Asante’s long-standing service to the communities of Southern Oregon, and national recognition and awards for the highest quality of care, are what drew me into discussions about this opportunity,” Gessel said. “I am motivated and inspired to be a part of a team of passionate caregivers dedicated to serving others.”

During the interview process it was evident that Gessel places great importance on the human side of leadership. “His style aligns well with Asante’s values, and he supports an organization-wide culture of teamwork and collaboration,” said Roy Vinyard, Asante interim president and CEO. “He will work to build strong relationships within Asante and in the community.”

Having worked in places such as Colorado, Kentucky and Tennessee, Gessel says Southern Oregon and Asante have a unique appeal. “All my interactions have affirmed for me that Asante is an organization I will be honored to lead. Our charitable mission calls us to care for all in our communities with compassion and excellence. To be a valued partner, we must listen and

respond to the needs of our patients and communities.”

Gessel also shared praise for Asante’s Board of Directors, team members and medical staff for being aligned to provide outstanding health care services. “From birth to end of life and all of life’s incredible moments in between, we want to be the best choice for care, comfort and healing for the whole person. The culture of whole-person care starts with our staff and providers. We will care for our people, so they can best care for others.”

Gessel holds a Master of Science degree in health administration and has been board-certified as a health care executive for more than 20 years.

He and his wife, Kelly, look forward to their upcoming move to the Rogue Valley. “Southern Oregon strikes me as a wonderful place to live and work, truly a beautiful and vibrant place to make our new home. We love being outdoors, hiking, biking, and visiting family and friends. We look forward to getting immersed in our new community.”

Gessel succeeds Scott Kelly, who retired in February, and Roy Vinyard who has served in the interim role since October 2022.

Southern Oregon Business Journal August 2023 | 23 HEALTHCARE

Lithia & Driveway (LAD) Reports

12% Revenue Increase and Diluted EPS of $10.78

MEDFORD, Ore., July 26, 2023 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today reported the highest second quarter revenue in company history.

Second quarter 2023 revenue increased 12% to $8.1 billion from $7.2 billion in the second quarter of 2022.

Second quarter 2023 net income attributable to LAD per diluted share was $10.78, a 7% decrease from $11.60 per diluted share reported in the second quarter of 2022.

Adjusted second quarter 2023 net income attributable to LAD per diluted share was $10.91, a

10% decrease compared to $12.18 per diluted share in the same period of 2022. Unrealized foreign currency gains positively impacted earnings per share by $0.23.

Second quarter 2023 net income was $301 million, an 11% decrease compared to net income of $338 million in the same period of 2022. Adjusted second quarter 2023 net income was $305 million, a 14% decrease compared to adjusted net income of $355 million for the same period of 2022.

As shown in the attached nonGAAP reconciliation tables, the

2023 second quarter adjusted results exclude a $0.13 per diluted share impact resulting from non-core charges, specifically acquisition expenses and insurance reserves, partially offset by a net gain on the sale of stores and non-cash unrealized investment gain. The 2022 second quarter adjusted results exclude a $0.58 per diluted share net non-core charge related to a non-cash unrealized investment loss and acquisition expenses, partially offset by a net gain on sale of stores.

| Southern Oregon Business Journal August 2023 24 OREGON PUBLIC COMPANIES

Second Quarter-Over-Quarter Comparisons and 2023 Performance Highlights:

Revenues increased 12%

New and used unit growth was 22% and (1)% , respectively

Total vehicle gross profit per unit of $5,710, down $853

Driveway averaged over 2.7 million monthly unique visitors in the quarter

Driveway Finance Corporation (DFC) originated $558 million in loans in Q2

Service, body, and parts revenues increased 18%

Adjusted SG&A as a percentage of gross profit was 60.4%

"Our second quarter performance was strong across all our business lines and our teams demonstrated strong operating discipline as we continue to build out our adjacencies with consumer optionality and provide products and services fitting all affordability levels," said Bryan DeBoer, Lithia & Driveway, President and CEO. "Our commitment to improving our operating results through a relentless focus on high performance is demonstrated in our results, allowing us to continue acquiring stores domestically and abroad. We

see DFC and our omnichannel footprint enhancing our offering and driving us towards our targets in the 2025 Plan and beyond. We are well capitalized and our free cash flow generation gives us flexibility to deliver on our strategy."

For the first six months of 2023 revenues increased 8% to $15.1 billion, compared to $13.9 billion in 2022.

Net income attributable to LAD for the first six months of 2023 was $19.08 per diluted share, compared to $23.15 per diluted share in 2022, a decrease of 18%. Adjusted net income attributable to LAD per diluted share for the first six months of 2023 decreased 20% to $19.35 from $24.14 in the same period of 2022. Foreign currency exchange positively impacted earnings per share by $0.18.

Corporate Development

During the second quarter, LAD acquired a total of 14 locations across the midAtlantic and southeast regions of the United States, which are expected to generate nearly $1.5 billion in annualized revenues. LAD divested three stores, combined they made approximately $70 million in revenues the past year. Year-todate, we have acquired over $3.5 billion in annualized

revenues. Since announcing the 2025 Plan in July 2020, we have acquired over $17.5 billion in annualized revenues.

Balance Sheet Update

LAD ended the second quarter with approximately $1.0 billion in cash and availability on our revolving lines of credit. In addition, unfinanced real estate could provide additional liquidity of approximately $0.5 billion.

Dividend Payment

The Board of Directors approved a dividend of $0.50 per share related to second quarter 2023 financial results. The dividend is expected to be paid on August 25, 2023 to shareholders of record on August 11, 2023.

Second Quarter Earnings

Conference Call and Updated Presentation

About Lithia & Driveway (LAD)

Lithia & Driveway (NYSE: LAD) is a growth company focused on profitably consolidating the largest retail sector globally through providing personal transportation solutions wherever, whenever, and however consumers desire.

Southern Oregon Business Journal August 2023 | 25

By Press Release

https://investors.dutchbros.com/news/news-details/2023/Dutch-Bros-Inc.-Reports-Second-Quarter-2023Financial-Results/default.aspx

08/08/2023

Opened 38 New Systemwide Shops in Q2 2023

Quarterly Revenue Increased 34% to $250 million

Announces Leadership Transition Updates 2023 Guidance

GRANTS PASS, Ore.--(BUSINESS WIRE)-Dutch Bros Inc. (NYSE: BROS; “Dutch Bros” or the “Company”), one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, today reported financial results for the second quarter ended June 30, 2023.

Joth Ricci, Chief Executive Officer of Dutch Bros, stated, “In Q2, we delivered 34% year over year revenue growth, driven by new shop openings and 3.8% systemwide same shop sales growth. Within the quarter, we continued to see meaningful company-operated shop margin expansion, driven by significant labor efficiency improvement. This speaks to the benefit of our company-operated model as we were able to effect changes across our shops and then directly benefit from those changes. In Q2, we continued to see general and administrative leverage, which taken together with our growing shop margins, demonstrates our commitment to profitable growth.”

He continued, “In Q2, we executed against our traffic-driving initiatives, which underpinned 580 basis points of sequential same shop sales growth

Dutch Bros Inc. Reports Second Quarter 2023 Financial Results

quarter-over-quarter. We are encouraged by customer response to these initiatives, and are excited to welcome new Chief Marketing Officer, Tana Davila, to build upon this momentum.”

He concluded, “I am very proud of the team for what they have accomplished, and I am encouraged by the strength of the underlying business. Our people pipeline and systems are as strong as ever - we have a deep and growing bench of qualified operator candidates and low, and further improving, employee turnover. We continue to see meaningful expansion in shop profitability and leverage in general and administrative costs as we scale our business. We continue to keep a close eye on our costs, particularly those related to new shop development, which we are working diligently to mitigate. Taken together, this gives us confidence to remain committed to our long-term new shop growth plan.”

Executive Leadership Transition and Succession

The Board of Directors approved a plan to transition Christine Barone, who has served as the Company’s President since February 2023, into the role of Chief Executive Officer effective January 1, 2024. The remainder of 2023 will serve as a transitional period for both leaders.

Travis Boersma, Co-founder and Executive Chairman, said, "Joth has been a true partner and will forever be part of the Dutch Bros family. I'm thankful for the work he's done helping us transition

from a small, regional business to one on the national stage. He's been key in helping us grow and nurture our peoplefirst culture so we can continue to be a force for good in every community we serve. I'm confident in the foundation he's created and I'm grateful for the years he's dedicated to Dutch Bros and our crews."

Boersma added, "Christine is perfectly suited to take on the President and CEO role at Dutch Bros. Since joining us in February, she's become an integral part of this organization, demonstrating her passion and ability to affect positive change in our business. She has the experience and knowledge to help us scale, as well as a true passion for people. I'm confident she is the best leader to help us in our next phase."

Ricci stated, “It has been my great honor to serve as CEO and I’m so proud of all this team has accomplished. Dutch Bros is a strong, healthy business with a very special culture and long runway of growth ahead. I feel very fortunate to have been a part of its success for more than five years.”

Ricci added, “In setting the stage for the next phase of scaling the company, Christine has demonstrated her abilities and deep industry knowledge and experience. Over the last six months, she has immersed herself in our business and culture, and her impact has been felt immediately and decisively, notably in our real estate strategy, data analytics and marketing. Having played a key part in shaping our priorities and action plans

| Southern Oregon Business Journal August 2023 26
OREGON PUBLIC COMPANIES

moving forward, I am confident the time is right for me to pass the baton to Christine.”

Second Quarter 2023 Highlights

Opened 38 new shops, bringing total shop count to 754 as of June 30, 2023, a 25.0% increase from June 30, 2022. Of these 38 new shops opened across 8 states, 35 were company-operated. All of these new shops continue to be led by existing or newly-promoted regional operators.

Total revenues grew 34.1% to $249.9 million as compared to $186.4 million in the same period of 2022.

System same shop sales2 increased 3.8%, inclusive of the impact of our fortressing strategy, which results in sales being transferred from existing shops to new ones, as compared to the same period in 2022. Company-operated same shop sales increased 1.6%, as compared to the same period of 2022.

Company-operated shop revenues increased 37.7% to $221.0 million, as compared to $160.5 million in the same period of 2022.

Company-operated shop gross profit was $52.1 million as compared to $31.2 million in the same period of 2022. In the second quarter of 2023, companyoperated shop gross margin, which includes 150bps of pre-opening expenses, improved to 23.6%, a yearover-year increase of 420bps.

Company-operated shop contribution1, a non-GAAP financial measure, grew 69.2% to $66.9 million as compared to $39.5 million in the same period of 2022. In the second quarter of 2023,

company-operated shop contribution margin, which includes 150bps of preopening expense, improved to 30.3%, a year-over-year increase of 570 bps.

Selling, general, and administrative expenses were $51.7 million (20.7% of revenue) as compared to $42.3 million (22.7% of revenue) in the same period of 2022.

Adjusted selling, general, and administrative expenses1, a non-GAAP financial measure, were $39.3 million (15.7% of revenue) as compared to $31.9 million (17.1% of revenue) in the same period of 2022.

Net income (loss) was $9.7 million as compared to $(1.8) million in the same period of 2022.

Adjusted EBITDA1, a non-GAAP financial measure, grew 103.0% to $48.6 million as compared to $23.9 million in the same period of 2022.

Adjusted net income1, a non-GAAP financial measure, was $20.9 million as compared to $8.7 million in the same period of 2022.

Net income (loss) per share of Class A and Class D common stock - diluted was $0.05 as compared to $(0.02) per share in the same period of 2022.

Adjusted net income per fully exchanged share of diluted common stock1, a nonGAAP financial measure, was $0.13 as compared to $0.05 in the same period of 2022.

Outlook

Dutch Bros is providing the following guidance for the year 2023:

Total system shop openings in 2023 are expected to remain at least 150, of which at least 130 shops will be companyoperated.

Total revenues are projected to be at the lower end of the previously communicated range of $950 million to $1 billion, which reflects current new shop AUV trends of approximately $1.7 million, partially offset by improved traffic trends and Q3 pricing actions.

Same shop sales2growth is estimated to remain in the low single digits.

Adjusted EBITDA3 is now estimated to be between $135 million and $140 million, up from at least $125 million. This reflects stronger than expected year-todate profitability trends, partially offset by revised revenue expectations and increased levels of investment in support of key priorities.

Capital expenditures are estimated to be in the range of $225 million to $250 million, which includes approximately $15 million to $20 million in spending in 2023 for our new roasting facility projected to open in 2024.

1 Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”.

2 Same shop sales is defined in the section “Select Financial Metrics”.

3 We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.

Southern Oregon Business Journal August 2023 | 27

OREGON SHAKESPEARE

FESTIVAL BOARD OF DIRECTORS ANNOUNCES TIM BOND AS OSF’S NEW ARTISTIC DIRECTOR

administrators from diverse backgrounds. Bond, whose theatre career spans more than three decades, has been serving as Artistic Director for TheatreWorks Silicon Valley since 2020.

"Tim Bond is an award-winning leader in the American theater community, and OSF is delighted to welcome him back,” says OSF Board Chair Diane Yu. “His lengthy and deep relationship with OSF includes serving as a frequent director of both Shakespeare and other memorable plays over the years. His stature and accomplishments as an artist include introducing prominent new and classic works and he is widely acknowledged as one of the nation's foremost interpreters of the works of August Wilson, which we all witnessed when he directed Wilson’s ‘How I Learned What I Learned’ at OSF last year. He is a great fit for OSF as it embarks on a new chapter.”

ASHLAND, Ore. (July 6, 2023) –

The Oregon Shakespeare Festival Board of Directors announces its appointment of Tim Bond as its new Artistic Director, effective September 1. The position will be a homecoming for Bond, who served as an Associate Artistic Director at OSF for 11 seasons

from 1996 to 2007, and who has longstanding roots in Ashland, where he has a home. During his time with OSF, he directed 12 productions, promoted equity and inclusion efforts throughout the company, and created the FAIR Program, which cultivates the next generation of theatre artists and

Bond began his career in Seattle with Seattle Group Theatre in 1984, where he directed more than 20 productions, many that were West Coast and World Premieres. In addition to his previous role at OSF, he is an internationally known director and educator with past leadership roles as Producing Artistic Director at Syracuse Stage, Artistic Director at Seattle Group Theatre, and full Professor and Head of the

| Southern Oregon Business Journal August 2023 28
OREGON SHAKESPEARE FESTIVAL

Professional Actor Training Program at the University of Washington School of Drama.

“I am honored to return to OSF to serve as Artistic Director during these challenging times,” says Bond. “I care deeply about this company and the Ashland community, and will be devoting my immediate focus on restoring , healing, and reinvigorating this national artistic treasure as it embarks on its 89th season.”

Bond has directed nationally and internationally at Market Theatre, Baxter Theatre Centre, Guthrie Theater, Seattle Rep, Milwaukee Rep, BAM, The Wilma Theater, Arena Stage, Alliance Theatre, GEVA Theatre Center, Cleveland Play House, Indiana Rep, Actors Theatre of Louisville, PCPA, Arizona Theatre Co., Portland Center Stage, Dallas Theater Center, A Contemporary Theatre, Empty Space Theatre, Paul Robeson Theatre, and Seattle Children’s Theatre. He is the recipient of two Backstage West Garland Awards, two Syracuse Area Live Theatre (SALT) Awards, and a Dallas-Fort Worth Critics Forum Award. Recent credits include the acclaimed productions of Fannie: The Music and Life of Fannie Lou Hamer ( TheatreWorks), How I Learned What I Learned (OSF, Seattle Repertory Theatre), Gem of the Ocean (TheatreWorks), The Children (Seattle Rep), and Pass Over (A Contemporary Theatre).

Associate Artistic Director and Director of Artistic Programming, Evren Odcikin, will serve as Interim Artistic Director

through September 15, allowing for an overlap with Bond’s start date.

“OSF is a very special place, and I am honored to be asked to serve in this new capacity,” says Odcikin, who has overseen the producing of five seasons, and helped guide the organization through the COVID-19 pandemic, the aftermath of the devastating Almeda Fire, and multiple leadership changes. “My focus for the last year has been to support the OSF artists, crews, and staff as we worked relentlessly to secure the 2023 Season and I launched the programming process for the 2024 Season. I look forward to continuing that work over the next few months as Tim Bond returns to OSF. Following that, I’m excited to focus on my own artistry as a director and writer — something that has taken a back seat over the last four years."

Since 2019, Odcikin has overseen the programming and producing of all in-person programming at OSF, including repertory productions and the Green Show. He has shepherded 32 productions at OSF, including the world premiere of the company's first holiday show, It's Christmas, Carol!; world and West Coast premieres of new works by Kirsten Childs, Mona Mansour, Dominique Morisseau, Qui Nguyen, Karen Zacarias, Amir Nizar Zuabi, and reimagined classics by directors such as Shariffa Ali, Lili-Anne Brown, Nataki Garrett, Kent Gash, Henry Godinez, Tiffany Nichole Greene, Rosa Joshi, and Dawn Monique Williams,

amongst many others. As a director and writer, he has worked at OSF, Guthrie Theater, A.R.T., Woolly Mammoth, PlayCo, New York Theatre Workshop, Geva Theatre Center, Berkeley Rep, South Coast Rep, the Lark, Kennedy Center, The Civilians, InterAct (Philadelphia), Cleveland Public Theatre, TheatreSquared, Magic Theatre, Crowded Fire, Golden Thread Productions, TheatreFirst, and Playwrights Foundation amongst many others.

"The Board of Directors is immensely grateful to Evren for stepping up so efficiently and effectively to keep the artistic work at the Festival on an even keel and at our customary high levels of excellence during the current transition period,” says Yu. “He has exerted considerable efforts to ensure that the artists, crews and staff are well-supported as the 2023 season continues to unfold. He has been a steady presence with audiences, donors, and partners since he started at OSF, but especially in the last two months. We are most fortunate to have him as our Interim Artistic Director."

As Artistic Director, Bond will manage and lead all artistic and production staff; select and curate season offerings; set the artistic vision for the organization; and co-lead OSF alongside the Executive Director and leadership team. He will report to OSF’s Board of Directors.

Southern Oregon Business Journal August 2023 | 29
Photo of Tim Bond from OSF Facebook post announcing his return.

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Head Back to the Classroom to Build Business Resiliency

Have you taken the time to think through the following questions?

What makes a business good, and not just a mediocre economic performer? How are you going to address all of the changes you face as a business owner or manager and still remain profitable, especially when your staffing levels are light? Where do you look for answers and insights into business development, market expansion, and for setting

your business up to successfully be sold in the future? Where do you find the knowledge needed when you may be purchasing a business? How do you improve the profitability in your current business?

Are you aware that the SOU SBDC offers the premier business development program in the region, available to you as owner or key manager, to work on the core skills and knowledge needed to keep your business

competitive? They are accepting applications and payments now for interested entrepreneurs to come together to form the next cohort starting September 21, 2023. Applications and payments are due August 31st, so it is important that you assess your readiness to learn and act to signup quickly.

Here are a few reasons to attend:

| Southern Oregon Business Journal August 2023 32
SMALL BUSINESS DEVELOPMENT CENTER
Photo Meyer

Organizations that value learning, planning, and execution are arguably the best performers;

Investing into skill development in your key management personnel magnifies the value of the return to your business;

Networking with other motivated business owners has numerous intangible side benefits;

Expanding your horizons with other like-minded business owners magnifies the return on investment;

Learning from the instructor, course materials and guest speakers is invaluable for seating the instructional materials;

The combination of in-class and on-site advising for implementing the instruction is proven to be the best learning experience available, and;

Through interactions with the instructor, to be able to have content modified to be more specifically directed at your operation is invaluable.

Cohort at the SOU SBDC Center and has returned to share her practical experience mixed with the class book and specific content presentation. Her professional classroom manner and engaging presentation style will be an inviting way to learn and interact with the others in the cohort.

This nine-month long business development program combines classroom instruction, professional advising and networking with the goal of helping business owners and operators develop strategic business skills on topics such as finance, marketing and operations. Additional attention is given to you, the owner and entrepreneur, for receiving the leadership and Executive Management training so much in demand.

Your investment in this Course will repay you many times over in the next few years. There is no need to travel across the Country to spend many times the course fees for training that can be had at home. Make the good decision to call for an application and materials regarding the course.

to identify, hire or retain, and educate talent within your organization to step-up to take leadership positions. This development piece is critical to building a successful transition. Even if you are not thinking about enrolling in the SOU SBDC Small Business Management Course, it is important that you find some other way to prepare your team for a future transition in ownership. However, the fast, easy and inexpensive way to do this is to stay local with your training needs. Sign yourself and a key staff person up to the program and set the stage for continued success.

ABOUT THE INSTRUCTOR:

Ellen Holub leads and instructs the Small Business Management Program as a successful teacher and small business owner of many years. She and her husband have owned Buttercloud Bakery in Medford as veteran business owners for more than a decade. Ellen is a graduate of a previous Small Business Management

To contact Ellen and the SOU SBDC Small Business Management Program, please call 541.552.8300 or mailto:sbdc@sou.edu.

Marshall Doak is the Director of the Southern Oregon University Small Business Development Center and a huge supporter of innovation and the community that forms around innovation in the economy. In private practice as owner of Managed Successions, LLC, he develops and manages projects for public and private organizations for specific goal achievement success. He can be reached through: mdoak06@gmail.com or 541-646-4126.

Should you be thinking about selling or transferring your business in the next 5 – 10 years, now is the time to work on your succession plan. Part of that plan is

Southern Oregon Business Journal August 2023 | 33
Photo by Kenny Eliason on Unsplash

The Last Groundhog’s Day

Up early, like yesterday. Two cups of coffee, black, as always. Time to start the day.

They run together, the days. How did Johnny get so tall? He was an over-charged, darting little squirrel just yesterday. Five, I think. And now he’s what? Sixteen? You’ve got to be kidding.

I guess we haven’t been paying attention. Life gets in the way. Well, we let it. Giving it permission to repeat itself is our way of abstaining from our responsibilities for today’s actions. We react when our course could be intentional action. Purposeful, planned, and expected. Later we will wish we had done more and made decisions that would improve our futures.

It could be Tuesday. Maybe it’s Friday. Is today garbage day? Oh, then it must be Friday. And before we know it, Johnny turns sixteen.

Our American population has become addicted to adrenaline and is loathe to change. Schedules, organized calendars, and repetitious behaviors have long left the rage of our lifestyles. They’re just not exciting enough. Things must change every day. Different activities, new adventures, a regular change in the dinner menu, new vacation destinations, even new friends

when the ‘old’ friends are less interested in trying new things –they are suddenly boring. Many have learned to exhaust themselves in fast-paced, entertaining ways but with no real goal in mind. What is your Why? As in why are you doing what you’re doing? Could more of your wasted time be better spent if it was time invested in positive efforts with a belief that there is a real purpose in it?

The pandemic we are trying to get over and forget forced us to stay put while waiting for a cure. Weather that repeats itself like a prolonged scientific experiment encourages dullness in our behavior, an excuse to pass blame for our melancholy. Laziness, lack of ambition, slovenly complaining, the fault of the weather? Think again. How often have you been instructed to get plenty of rest? Then followed that advise to the extreme! We encourage ourselves to be more like a sloth than a cheetah. When your feet hit the floor in the morning do you have any real idea what you will do that day? Have an idea, a purpose. Know your why to getting out of bed.

How much more could we be doing if we simply put in a little more effort? Make that quality effort and we would be amazed at

what might be accomplished. I guarantee it.

A thousand times we’ve heard the adage, “Necessity is the mother of invention”. If we really must get something done somehow, we get it done. Imagine, just imagine, how much we could do if we had the ‘attitude of necessity’ just 25% more often? We could strut and boast and pat ourselves on the back without shame, instead of doing those things shamefully like we do today, without apology. Establishing a goal to create your own ‘Attitude of Necessity’ may take you to places that have only been dreams in the past.

The great Steve Prefontaine is credited with the quote, “To give less than your best is to sacrifice the gift.”

I regularly repeat it so I don’t forget my “Why”.

Give your best effort. Start getting better by small margins every day.

Southern Oregon Business Journal August 2023 | 35
Photo by Steve Wrzeszczynski on Unsplash Greg Henderson is the retired founder of the Southern Oregon Business Journal. A University of Oregon graduate and a six year U.S. Air Force veteran. Contact him at ghenderson703@gmail.com
We waste our lives by seconds and minutes, not days and years

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Southern Oregon Business Journal August 2023 | 37 REACH YOUR TARGET ADS THROUGH Send your ad copy to: Jim@SouthernOregonBusiness.com Jim Teece - Publisher Thousands of Business People get a chance to see your ad in the monthly Business Journal.
The Southern Oregon Business Journal extends sincere thanks to the following companies for their continued presence as important cogs in the wheels of industry in southern Oregon. Please check out our advertisers. We appreciate them for supporting the Southern Oregon Business Journal. People’s Bank - Page 30 SOU - Page 16 Project A - Page 36 Managed Home Net Page 31 sou.edu 855-470-3377 “SOU gave me the opportunity to grow and to change my life and to help change the lives of other people.” ANGELICA RUPPE MS ’86 Angelica Ruppe LBH Ad Full Page 2021.indd Energy Trust of Oregon - Page 39

Ashland Chamber’s Dana Welsh Retires after 18 years and a lifetime of service

Congratulations Dana Welsh and Thank You for your leadership, friendship and inspiration.

Dana Welsh retires after 18 years at the Ashland Chamber of Commerce doing everything graphics related. She joined the team after her term as President which followed mine. She and her family ran Artisan Press in Ashland prior to that. She has been a loving fixture in our community, chaired the Ashland Chamber 4th of July Parade and served as a true influencer for so many including myself for decades.

Thank you Dana. I know that Ashland is a better place to live and work and grow a business because of your tireless dedication and sweetness. One of my favorite memories out of thousands with you is the time that you and Sandra forgot your reading glasses on stage and had the audience laughing so much we were crying. But I also loved seeing you every 4th of July driving the golf cart as you checked on everything just before it started and that one time in Portland when we all had way too much fun…

| Southern Oregon Business Journal August 2023 38
LEADERSHIP

Southern Oregon Business Journal

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For years, at Bailey Nurseries we worked under inefficient, outdated sodium vapor lights that were expensive to run and took forever to illuminate. With support from Energy Trust we were able to secure $340,000 in incentives to switch to LED lighting that saves us a ton of money and keeps work flowing. See how LED lighting can help your business at energytrust.org/lightinginstantdiscounts.

Southern Oregon Business Journal August 2023 | 39
General Electric and Pacific Power
Serving customers of Portland
WITH OUR NEW LED LIGHTS, WE USE LESS ENERGY, SAVE MORE MONEY AND START EVERY DAY WITH A BRIGHTER OUTLOOK.

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