NPW CAN Connect (PWA) Book 2017

NPW MAIN OFFICES
11150 N.W. 32nd Avenue / Miami, Florida 33167
Business (305) 953-7300 • (800) 344-0368 • Fax (305) 953-7291
www.enationalperformance.com

overview





The National Performance Warehouse Companies (NPW) is a warehouse distributor of traditional, performance and truck parts and accessories
for all makes and models. We do not manufacture any of our own products, we seek relationships with suppliers who use the distribution net-
work in the US and Canada as their means to get their products to retailers and installers, also called “jobbers”, on a same or next day basis.
Besides “jobbers” NPW also services national chains, internet retailers, specialty outlets and any outlet that sells to the consumer or installer.
The Company also performs as a FEE Warehousing provider, whereby our distribution center(s) are the local, regional or national points of
warehousing and shipping for manufactures seeking a low cost and efficient means of servicing their customers without the overhead of op-
erating a stand-alone facility.

To do this, the National Performance Warehouse Companies operates a number of distribution centers in North America. Currently this consists
of 14 locations; 3 in California, 4 in Florida, 2 in Utah, 1 in Idaho, 1 in Rhode Island, 1 in Texas, 1 in Washington, and 1 in Canada.

NPW strives to grow through organic expansion and acquisition. The Company has purchased and integrated 16 companies since 2008.
Fifteen are in the US and one in Ontario, Canada.

NPW provides its “jobbers” with a skilled and tenured staff of knowledgeable inside salespersons who assist customers with parts look up,
order placement, order tracking, special orders and advice in managing their stores and inventories. The Company also has one of the largest
outside field sales staffs of its competitors. These experienced and knowledgeable road warriors’ deal face to face with new or potential cus-
tomers in their place of business to present new lines or items, demonstrate the need for a product, merchandise a store and effectively
demonstrate the advantages of dealing with NPW.

The Company has specialists in dealing with international/export businesses, national chains and internet sellers to ensure that adequate ex-
pertise and communication are devoted to these customers.

The Company is a member of the largest buying groups in the automotive aftermarket. The Alliance represents the largest group in the
traditional segment, while AAM Marketing represents the largest entity on the performance, truck and accessory section of the industry. These
buying groups provide the Company advantages in a lower cost of goods, special programs for the “jobbers” to use, cataloging and other
technological and financial advantages.

The Company’s mission is: “To provide industry customers what they need and want”.

Company Briefs






• 14 stocking locations
• 650,000 square feet of warehousing
• 20 in field service reps
• 30 inside sales & technical professionals
• Employees – From 23 different countries
• Years in Business 47
• Number of Lines – 700 +
• Over 1 Million Parts In Stock
• Tri-Lingual- Yes
• Retention of employees on acquired companies – 94%
• Million Dollar Vendor Club Members:
2013: 13 Members
2014: 13 Members
2015: 15 Members
2016: 18 Members
2017: 19 Members
• National Trade Events – SEMA, PRI, CAN Connect, AAIA, AWDA
• AAM Parts Pro Locations Supported – 68
• Bumper to Bumper/Autopride Locations Supported - 40

2 • Company Trade Shows - Fast Expo, Miami; CARS Expo, San Jose; KARS Expo & Mega Speed Car Show, Toronto, Canada

History





Larry Pacey, President and CEO, started the company in 1969 as carburetor rebuilder. This small local operation grew quickly into National
Auto Parts Warehouse selling traditional parts in South Florida. Larry’s participation in NHRA and IHRA drag racing led the company into
adding performance items and National Performance Warehouse was born.

Today selling both traditional and performance parts, NPW, has enjoyed stability and growth for over 47 years.
In the early 80’s, NPW saw new opportunities in the truck accessorizing market and added a new segment to its growing list of lines offered.
Today NPW stocks over 700 lines from the best manufacturers in the industry and offers them competitively to jobbers, machine shops,
truck accessory stores, performance specialists and other outlets who sell to consumers.

The Company prides itself on being a 3-step distributor. Meaning NPW sells to and supports outlets with custom toolboxes of backing who
in turn are able to service consumers, dealers or installers competitively. NPW is one of the few WD’s who believes in the jobber network.

NPW is a founding member of the AAM Marketing Group, the PartsPro and Total Truck marketing organization that specializes in the per-
formance and truck accessorizing areas. And on the traditional side, NPW is a member of the Alliance which is the Bumper to Bumper and
AutoValue traditional marketing programs across the US.
Starting in 2008, the Company started on an expansion plan where NPW purchased Southern Performance Warehouse in Tampa, FL. After
this successful integration, the Company quickly bought Speed Warehouse with multiple California locations in 2010. Karbelt, Motor Ware-
house and CMA were acquired in 2012 and Performance Warehouses’ Sacramento, CA only operation in spring 2013. Not slowing down,
August of 2014 saw ERW in Florida coming on board and in 2015 NPW added Racer’s Equipment, National Auto Parts Warehouse Utah
(Frank Edwards Co.) and Time Distributors. In 2016 the Company has acquired Evacam Solutions in Texas, Felt Auto in Idaho and DAHL
Warehouse in California, and this year NPW added Warehouse West in Washington. The Company is aggressively pursuing other acquisition
opportunities as they become available.

Looking to the future, Larry has two sons, Chris and John, who are working in the Company and are following in their Dad’s footsteps and
traditions. They are proving themselves to be able leaders. Both Chris and John have a love of the business and a devotion to the craft of
being a distributor. The succession chain is well forged for continued success and continuity of vision at NPW for many years.

We hope you can draw the conclusion that NPW has had the foresight to adapt and change with industry and market conditions over the
years. That the Company’s Management and its employees look forward to meeting the challenges of tomorrow and will continue to provide
the best service to its customers, partner with premiere suppliers, create demand and excitement for new products and stay true to its
values of being a 3-step distributor.

NPW – “Selling and marketing what industry customers need and want”.







our Customers






Our primary customer today is still the independent auto parts store, speed shop, truck center or specialty store. Our base customers are
what are known as “mom and pop” stores that have a few employees with an owner/operator at the head of the operation. They are very
hands on and are also from the industry; meaning they know the products, how they work and how to install them. Besides their time, they
have their personal fortune vested in their store. They provide a high degree of personal service.

We also sell to internet sellers, national chains, export customers, and other WD’s who use NPW for fulfillment of orders, drop shipments,
special orders, backorders or the long tail of the slow selling sku’s that a distributer would carry.

NPW customers have the opportunity to join several marketing programs to assist them with signage, advertising, cataloguing, POS, flyers,
ad layout, inventory optimization and more. Some of these programs are Bumper to Bumper, AutoValue, PartsPro, Horsepower Sales, Find
Fast Parts Fast and Total Truck Centers.






6 3

organizations npw supports





The leading industry voice and technical resource for engine builders, machine shops and remanufacturers
since 1922.



Custom Automotive Network (formerly Performance Warehouse Association) is an organization of specialty
automotive parts distributors joined together to deal with management, financial and legislative matters.
Founded in 1971, CAN today leads the industry in jobber/retailer support programs. Thousands of high per-
formance retailers support the very successful Performance Automotive Retailer (PAR) program. The Dealer
Locator, Stay Connected Information Center (SCIC) and The Performance Warehouse Association University
(PWAU) programs have been developed to help the Jobber / Retailer succeed.
CAN produces an annual conference which is an exclusive opportunity for manufacturers and warehouse
distributors of specialty products to meet in a private, businesslike environment to discuss sales and mar-
keting policies and programs.



In 2017, National Performance Warehouse celebrated its 29th anniversary as a member of The AAM Group,
the SEMA aftermarket's largest and oldest program distribution group. AAM equips it members and their af-
filiated jobber/retailers with marketing tools, information and data, and services designed to help each be
more efficient and competitive. AAM delivers traditional program market material, such as tabloids and
posters, to the Horsepower Sales stores and many participating independent National Performance jobbers
in Canada, Florida, and California. In 2014, the AAM Group rolled out Digital Showcase, an innovative new
tablet based cataloging and mobile kiosk system for counter sales. AAM's digital marketing efforts support
NPW and its customers through social media, email campaigns, and product information and training.


The Alliance Aftermarket Auto Parts Alliance is comprised of over 50 independent shareholders who offer a wide array of
quality auto products with one main focus...SERVICE. The Auto Value and Bumper to Bumper warehouses,
parts stores, and certified service centers are found internationally across the US, Canada, and Mexico, Europe
and even into Asia. With over 1.9 million parts and accessories, the Alliance has the parts consumers want
and the service they deserve!



SEMA consists of a diverse group of manufacturers, distributors, retailers, publishing companies, auto re-
storers, street-rod builders, restylers, car clubs, race teams and more. The 54 -year-old organization performs
many services for its members and for the hobby as a whole. SEMA works to protect consumers’ rights to
drive accessorized, customized and vintage vehicles. SEMA keeps close tabs on legislators in Washington,
D.C., and also in each state within the United States, so SEMA members and anyone who loves cars and
trucks can protest pending legislation that might harm our hobby, as well as endorse legislation that’s good
for car lovers.

SEMA produces the industry’s premier trade show in Las Vegas where manufacturers display the largest se-
lection of custom and performance parts in the world. NPW is an exhibitor in this show.




The only aftermarket trade association based in the United States that represents the shared interests of all
aftermarket companies. With more than 2,000 members, it is AAIA’s goal to Connect, Empower and Lead the
$307.7 billion motor vehicle aftermarket industry.

AAIA’s Members are...manufacturers, distributors, parts stores and service and repair shops, importers, busi-
ness services and manufacturers’ reps AAIA produces the AAPEX Show in Las Vegas during Industry Week.
AAPEX is to traditional parts what SEMA is to Performance, Truck and Accessorization.


Strictly for the racing trade, PRI connects manufacturers of racing products and technology with the all-im-
portant distribution pipeline of racing retailers, race engine builders, race car builders and warehouse dis-
tributors, in addition to thousands of professional race teams. PRI is now part of the SEMA organization.
4

growtH





The NPW Companies have had significant growth since 2008 in both sales and geography served. The Company continually searches for
businesses to acquire that fit a specific NPW profile to expand its operations. The following charts demonstrate recent company perform-
ance and timelines.




























Aug 2012 Mar 2015
Karbelt Jan 2013 Aug 2014 Racer's Jun 2016
Speed & CMA ERW Equipment Evacam Mar 2017
Custom Warehouse Dania Warehouse Solutions Keyline Automotive
Toronto, CAN Vernon, CA Beach, FL Warwick, Rl Dallas, TX Idaho Falls, ID
1969 2008 2010 2011 2012 2013 2014 2015 2016 2017


Founded 1969 Sept 2008 Mar 2010 Sept 2012 May 2013 May 2015 Jun 2016 Aug 2017
National Southern Speed Motor Performance Frank Felt Auto Warehouse West
Performance Performance Warehouse Warehouse Warehouse Edwards Co. Ogden, UT Renton, WA
Warehouse Warehouse Hayward, San Jose, Sacramento, CA Sacramento, CA West Valley
Miami, FL Clearwater, FL Tustin, CA City, UT Sept 2016
DAHL
Nov 2013 Aug 2015 Warehouse
Uni-Select Time Los Angeles, CA
Oakland Park, FL Automotive
Utah/Idaho
proDuCts Lorin Peck Tool
Sept 2015
Salt Lake City, UT




The Company offers a wide range of products for the traditional, performance, truck and accessorization markets. NPW does this by negotiating
with suppliers who provide the brands or products that our customers are looking for. Whether brand or price driven, the Company strives to
negotiate the best prices to allow customers to be competitive in their market on a brand or the commodity. NPW carries the full breadth and
depth of lines to be a full service provider for our customers and suppliers. The Company maintains a staff of professional and tenured industry
category managers, buyers and re-buyers who strive to keep order fill at the highest levels and with most favorable prices.
NPW’s expanse of products includes:

Traditional Auto Parts – also called hard parts and includes lines such as Standard Ignition, Centric, Dorman, Federal Mogul, WAI and NGK and
245 additional brands

Speed and Performance Lines – Include brands like: Autometer, Edelbrock, Holley, MSD and Russell and 213 more lines
Engine Kits, Engine Parts, Machine Shop Supplies – Encompasses ARP, Clevite, Fel Pro, Melling and Pioneer and 54 additional lines

Truck, Diesel and Jeep – Such as Warn , Curt, Extang, K&N and Air Lift and 58 more lines
Chemical, Oils and Care Care - Royal Purple, Permatex, CRC and Red Line and an additional 51 brands

Tools And Equipment - Wilmar, Lisle, Vise Grip, Channellock and 50 additional manufacturers
105

NATIONAL PERFORMANCE
WAREHOUSE COMPANIES 2016 PWA PERFORMANCE REVIEW
The Year in Review for: MAHLE AFTERMARKET INC (cle)


Group consists of: CLE VIC
cle
on our sales, ordering, delivery and other company metrics.



Our Performance

2015 Total Sales at Cost ………………………………………………………….. $449,600


YTD Sales at Cost (Through Aug. 25, 2016) ……………………………………. $365,200

Estimated 2016 annualized sales at Cost…………………………………………. $547,800


Inventory on hand on Aug. 25, 2016 …………………………………………………… $319,700

NPW fill rate (based on orders we invoiced)…………………………………………….. 96%


Your Performance

Margin at NPW selling price ………………………………………………………….. 24%


How your margin compares to NPW's average ………………………………….. EQUALS NPW
POSITIVE number indicates % above average margin, NEGATIVE indicates below average margin

GMROI (Acceptable level => 1.00) …………………………………………………………………… 0.55
Formula: Gross Margin Dollars / Average Inventory

Your first delivery fill rate percentage (minimum acceptable 95%) …………………………………….. 83%
Metric is by line items, not dollars or units


Committed Lead Time: Expectation is 10 days from order date to 1st ROG…………………………..

Actual Lead Time: …………………………………………………………...…………….. 9
Fill rate and lead time figures from January - September 2015

Inventory turn ………………………………………………………………………… 1.7


CURRENT TERMS ………………………………………………………… 2% 4TH 15TH

SOLICITING TERMS OF ………...…..……………….…………...……… SAME
**** = Special orders or new line with with no data available
We are eager to work with you to improve any substandard performance.
Please evaluate this data and respond to us with suggested actions so that we
can work together to maximize line performance and profitability.





CONFIDENTIAL

NATIONAL PERFORMANCE
WAREHOUSE COMPANIES 2016 PWA PERFORMANCE REVIEW

SALES (at invoice) VENDER VENDOR NAME
CLEG cleg MAHLE AFTERMARKET INC
as a Group
YEAR
2016 JAN 37,500 FEB 71,700 MAR 62,800 APR 61,400 MAY 53,500 JUN 60,400
JUL 57,500 AUG 69,100 SEP 6,700 OCT 0 NOV 0 DEC 0


2015 JAN 37,500 FEB 66,200 MAR 47,200 APR 48,500 MAY 48,300 JUN 65,300
JUL 46,000 AUG 49,600 SEP 54,000 OCT 41,800 NOV 53,900 DEC 49,300
cle
2014 JAN 28,400 FEB 38,000 MAR 39,400 APR 35,400 MAY 30,000 JUN 31,600
JUL 29,400 AUG 34,900 SEP 45,600 OCT 41,000 NOV 40,500 DEC 39,900


2013 JAN 25,400 FEB 38,700 MAR 32,800 APR 36,600 MAY 40,900 JUN 31,800
JUL 32,200 AUG 31,300 SEP 32,800 OCT 32,500 NOV 26,300 DEC 36,200


2012 JAN 7,700 FEB 12,600 MAR 12,100 APR 13,800 MAY 10,600 JUN 10,100
JUL 10,200 AUG 9,400 SEP 11,200 OCT 29,200 NOV 25,200 DEC 30,700


2011 JAN 8,700 FEB 14,500 MAR 8,800 APR 12,200 MAY 9,800 JUN 9,900
JUL 9,700 AUG 10,100 SEP 10,500 OCT 8,900 NOV 9,300 DEC 9,400

YTD 2016 YTD 2015 2014 2013 2012 2011
JAN - AUG 480,600 408,600 267,100 269,700 86,500 83,700
Inc./Dec. 17.6% 53.0% -1.0% 211.8% 3.3%



YEAR 2016 (Est.) 2015 2014 2013 2012 2011
720,900 607,600 434,100 397,500 182,800 121,800
18.6% 40.0% 9.2% 117.5% 50.1%
* Red means sales were less than previous years same month


cle MAHLE AFTERMARKET INC


STOCK AVERAGE DAYS TO 1ST FILL ON 1ST FILL TO 95%
YEAR ORDERS ORDERS VALUE DELIVERY DELIVERY # OF ORDERS / # OF DAYS


2016 $ 410,800 79 5,200.00 9 83% 47 24
2015 $ 519,800 113 4,600.00 10 82% 62 20

DIFF. $ (109,000) 600.00 -1 1%



































CONFIDENTIAL

reCognition





NPW’s exclusive “Million Dollar Vendor Club” – Established in 2012, this ex-
clusive vendor appreciation event is tied into NPW’s annual F.A.S.T. Expo and
trade show weekend of events in Miami. Moving year to year to a new South
Florida exclusive location, the Club was established to recognize those sup-
pliers who helped the Company exceed the million dollar threshold in pur-
chases. This year the Club expects to induct 3 new members. Members and
their guests are recognized with upgraded accommodations, a police escorted
limousine to and from the hotel to a black tie cocktail and dinner reception at
a unique South Florida venue. In 2018 the venue will be back at the “Starlight
Room”, a rooftop supper club located at the celebrated Miami Beach Resort
Hotel by request of the 2016 and 2017 guests. This setting was known as
“the Doral” in its glory days. In 2017, the guests were treated to a special
guest entertainer, Frank Sinatra. Each year a guest speaker is also featured.

The history of this Miami Beach location is that it was known to be the haven for politicians and movie stars from 1964 to the late 90’s. This
was the spot where the “Rat Pack”; Dean Martin, Frank Sinatra, Sammy Davis Jr. and Peter Lawford entertained diners into the wee tropical
hours. Other top names in entertainment were regulars at the Starlight Room too, like Shirley MacLaine, Danny Thomas and Marylyn Monroe.
Jackie “the Great One” Gleason did his weekly radio show from the Starlight Room. Sitting atop the hotel, the Starlight Room offers panoramic
views of the Miami oceanfront and skyline.


























































8

meet our team





Larry, Hilda, Chris and John Pacey believe in the value of people. The companies Miami operations have employee’s that have been with NPW for
over 20 years... All of the companies that have joined the NPW family have similar examples of tenure. One new acquisition has an employee who
has been with that division for over 50 years of the 100 years of that location.
As a further indication of the Companies appreciation for tenure and experience, on the acquisition of 16 companies, the retention rate is 94%.
People in our business are very important because we don’t move just boxes, we move items consumers want or need and believe people buy from
people they know. Building relationships adds value and trust which in turn creates a mutual loyalty which are founding principles at NPW.

2017 Can ConneCt ConferenCe team

















Larry Pacey Chris Pacey Rick Kovalick John Simmons Bruce Hart
President / CEO VP of Sales / General Manager CRO VP of Purchasing Director of Mergers & Acquisitions
Direct Line (305) 953-7281 Direct Line (305) 953-7304 Direct line (305) 953-7275 Direct line (305) 953-7282 Direct Line (801) 736-8020
[email protected] [email protected] [email protected] [email protected] [email protected]

SENIOR MANAGERS BUYERS









John Pacey Matt Bacalis Kevin Dundas DK Kenmonth Roger Goyette Jose Diaz
Operations Manager VP of Purchasing VP Sales and Promotion VP Engine Components General Manager/Sr. Buyer Sr. Buyer










Mark Noble Roger Goyette Scott King Kim Welch Al Liggins Martin Budd
VP of Business General Manager/Sr. Buyer General Manager Operations Sales Manager Buyer Buyer
Development









Jerry Morphew George Petru Greg Riddle Rob Bigham Rob Davis Brent Hardin
National Accounts Inside Sales Manager Operations Manager Operations Manager Buyer Buyer
Sales Manager








Jon Hekking Don Sucher Larry Hansen
Sales Director Vice President Sales Manager 8 9

markets, DistriBution & territory





NPW sells to a variety of channels such as automotive jobbers, speed shops, truck accessory outlets, online stores, wholesalers, national
chains and other WD’s. We delivery to customers in a wide geographic area by either our own trucks or courier services as well as UPS, Fed
Ex or common carrier. The Company also ships internationally and has a robust export business. Most customers get same or next day delivery
which makes NPW an important partner in making sales. NPW’s Karbelt facility near Toronto, Canada is one of the few WD’s in the performance
category that has stock inside of Canada which puts parts close to the jobber and the consumers without the delay and additional costs of
crossing the border. And as the world is expecting, putting the part in the hands of the user instantly has become the new tipping point for suc-
cess. NPW believes it is in the right positions to be the company that can get goods to the user the quickest and have a long term direct impact
on growing sales for our suppliers, customers and the Company.

As NPW facilities are near major container ports, our easy access allows us to pursue the export business and the Company specializes in ex-
ports to the Caribbean, Central and South America and Australia.






































































10

faCilities





















NPW Headquarters - Miami, FL
















Speed Warehouse - San Jose, CA















National Auto Parts Warehouse - Salt Lake City, UT National Auto Parts Warehouse - Dallas, TX
















Racer’s Equipment Warehouse - Providence, RI Speed Warehouse CMA DAHL - Los Angeles, CA
















Time Distributors - Boise, ID Karbelt - Toronto, Ontario 11

(305) 953-7300
F




TEXAS
T TE X
EXX
XASASAS
Providence Dallas Salt Lake City Boise
Providence
Dallas
Boise
Salt Lake City
Salt Lake City

111 Commerce Dr1 Commerce Dr1 1 2804 Calvert St 3626 W. Parkway Blvd.. Parkway Blvd. 106 W. 36th Street

2804 Calvert St
3626 W W
. 36th Street. 36th Street
106 W W
. P. Parkway Blvd.

W W arwick, RI 02886arwick, RI 02886 Dallas, TX 75247 West Valley City, UT 84120 Boise, ID 83714
Warwick, RI 02886
Dallas, TX 75247
alley alley City, UT 84120y City
y, UT 84120
Boise, ID 83714
W W
est V Vest V
(214) 637-6355
Phone (401) 384-6010
Phone
Phone (401) 384-6010 Phone (214) 637-6355 Phone (801) 736-8000 Boise (208) 342-6868
(801) 736-8000
Boise (208) 342-6868
Phone (801) 736-8000
Fax
(214) 637-5513
Fax
(401) 384-6023
Fax (401) 384-6023 Fax (214) 637-5513 Fax (801) 736-8051 SLC (801) 973-6842 (
973-6842
(801) 736-8051
SLC
Fax
(801)
(801) 736-8051
Toll Free (800) 556-2864 (800) 556-2864 Toll Free (800) 888-6958 Toll Free (800) 366-8851 Fax (208) 342-6233 (

(800) 888-6958
oll Freeoll Free
T T





oll Freeoll Free



T T

oll Free (800) 366-8851
T Toll Free
(208)
342-6233
(800) 366-8851
Fax






(
(
Sacramento
Sacramento
Canada
Sacramento Canada
Ajax,
8 Chisholm Ct. Ajax,
901 Arden
901 Arden Way, , ayy, WWay

901 Arden 8 Chisholm Ct. Ajax,
Ontario Canada L1S 4N8
Ontario Canada L1S 4N8
Sacramento, CA 95815

Sacramento, CA 95815Sacramento, CA Ontario Canada L1S 4N8
Phone
Phone (916) 920-2221
Phone (916) 920-2221 Phone (905) 619-6660 (905) 619-6660(905) 619-6660
(905)
619-6659
(905) 619-6659
Fax
Fax
641-7725
(916)
( Fax (916) 641-7725 Fax (905) 619-6659
oll Free oll Free (888) 527-2358
Toll Free (800) 367-6717(800) 367-6717
( T T oll Free oll Free T T Toll Free (888) 527-2358(888) 527-2358
146-5-17