P RID E IND US T RIES 2015 ANNUAL REPORT
BUSINESS
POWERED BY
EXTRAORDINARY
PEOPLE.
THE TWO SIDES OF PRIDE
THE TWO SIDES OF PRIDE
Social enterprise: a business that is focused on maximizing human
well-being while building social good. At PRIDE Industries, exceptional
business services create satisfied customers. In turn, satisfied customers
drive social impact through the creation of jobs for people with
disabilities—the true measure of our performance.
Since our founding in 1966, we have used business to fuel opportunity
for those most often excluded from employment. Our programs prepare
and place individuals in work best suited to their aspirations and
abilities. In the process, thousands of lives have been transformed.
Today, we number more than 5,300 employees, including almost
3,000 employees with disabilities. Our manufacturing and facilities
solutions meet the needs of Fortune 500 companies and government
agencies nationwide while creating meaningful employment for people
with disabilities.
We are a business powered by extraordinary people.
And we are extraordinary people empowered by PRIDE.
We invite you to explore the two sides of PRIDE.
MISSION: To create jobs for people with disabilities.
VISION: To be the premier employer of people with
disabilities; the vendor of choice in the markets we
serve; and the recognized leader in meeting the needs
of individuals in overcoming barriers to employment.
JOBS FOR PEOPLE
OF ALL ABILITIES
WITH LADDERS
OF OPPORTUNITY.
FROM LARGE
PUBLIC WORKS…
…TO GLOBAL
FULFILLMENT,
SUPPLY CHAIN AND
MANUFACTURING.
WE WORK WITH
PRIDE.
Business powered by
extraordinary people.
At PRIDE, we design our services and capabilities to support
distinct customer needs—from small businesses to Fortune
50 companies, from local government offices to large federal
agencies and secure military installations across the country.
We build lasting customer relationships with flexibility, responsiveness,
continuous process improvement, and a relentless focus on customer satisfaction. We begin every project by developing an in-depth understanding
of a client’s unique requirements before tailoring service solutions to meet
specific needs. Because client operations are diverse and complex, our
customized solutions often span several service categories. Technology
drives efficiencies and plays an integral role in our ability to consistently
deliver service excellence. Quality systems, measured results, and constant
communication ensure that services remain aligned with mission-critical
needs in ever-changing business landscapes.
8 PRIDE INDUSTRIES
PRIDE Industries delivers smart outsource solutions that help business and government
stay focused on their goals while creating opportunity for others. Our goal is simple:
to be a trusted vendor of choice delivering customer service that constantly delights.
Our Business Services
MANUFACTURING SERVICES
FACILITIES SERVICES
PRIDE offers comprehensive, ISO-registered contract
manufacturing solutions that encompass electronics
contract manufacturing to original equipment
manufacturers, supply chain management, and
contract packaging and fulfillment.
With more than three decades of integrated
facilities management services expertise, we
maintain millions of square feet of public and
private-sector institutional, industrial, high tech,
and secure facilities nationwide.
End-to-end electronic manufacturing services (EMS)
include design engineering, manufacturing, supply
chain management, fulfillment, and end-of-life support.
Our comprehensive service offerings protect our
customers’ investments, reduce their environmental
footprints, and lower costs while delivering
exceptional service results. As an experienced
operator in secure installations, we provide
facilities maintenance, military base operating
support services, custodial, clean room, and
transportation. We also provide an expanding
variety of specialized services, including
commissary operations, food service, grounds
maintenance, administrative support services,
and shipboard provisioning.
We are ISO 9001 and ISO 13485 certified and
licensed by the State of California for medical device
manufacturing and distribution.
Proven supply chain management (SCM) solutions
integrate planning, forecasting, sourcing, procurement,
and logistics management activities across our manufacturing and facilities contracts. Our turnkey services
and tailored solutions linking business processes
have won global and national recognition.
We currently maintain more than 700,000 square
feet of inventoried warehouse space and process more
than 150,000 parts a month to all of the Americas.
Contract packaging and fulfillment services are available as stand-alone services and integrated solutions.
Offerings include primary and secondary packaging;
assembly and fulfillment with back-end warehouse;
and preparation and shipping to individual customers,
retail distribution centers, or direct to big-box stores.
Throughout each process, our manufacturing quality
systems ensure that we meet customer expectations
and comply with regulatory requirements.
10 PRIDE INDUSTRIES
We apply technology in innovative ways to drive
value and improve decision making. Our tools
include asset management systems with customer
visibility, customer integrated systems, and webbased monitoring systems.
Social responsibility and sustainability are central to
our mission. By keeping them at the fore, we have
helped leading companies achieve national LEED
and EPA recognition for environmentally friendly
maintenance and waste reduction programs.
SOME 2015 HIGHLIGHTS
FACILITIES
AWARDED A NEW PRIDE CONTRACT providing
facilities services to the Western Currency Facility at
Ft. Worth, TX creating 50 new jobs. This is one of two
facilities where the U.S. currency is printed, and we
are proud to be entrusted with its care.
ADDED DALLAS/FORT WORTH INTERNATIONAL
AIRPORT to our list of custodial customers. It is the third
busiest airport in the world by aircraft movement.
RESELECTED to provide grounds maintenance services
at Fort Campbell, KY.
BEGAN A NEW CONTRACT at Barksdale Commissary,
Barksdale AFB, LA.
EXPANDED OPPORTUNITIES at Marine Corps Base
Hawaii, Kaneohe Bay, HI providing base operations
administrative support.
WHERE WE WO RK
PRIDE’s contracts extend across 14 states
and Washington, D.C. including more
than 40 different communities.
EXPANDED OUR RELATIONSHIP with Becton
Dickinson (BD) a Fortune 500, leading global medical
technology company.
MANU FACTU RING
CONTINUED OUR RELATIONSHIP with HP providing
global supply chain and fulfillment to the Americas.
EXPANDED FULFILLMENT REQUIREMENTS for Mighty
Leaf Tea, a blender of artisan specialty teas distributed
globally.
GREW OUR RELATIONSHIP with Planet Box, the creator
of eco and healthy lunchboxes for kids and adults.
RECOGNIZED BY THE EPA as a Safe Choice Partner
of the Year for our PRIDEClean® line of eco-friendly
cleaning products.
Alabama • Arkansas • California • Hawaii • Ohio • Florida • New Jersey • Louisiana
Maryland • Missouri • New Mexico • Kentucky • Texas • Virginia and Washington D.C.
2015 ANNUAL REPORT 13 Always Looking Forward
A LETTER FROM ROBERT AND MICHAEL
PRIDE Industries’ businesses are engines driving social change. We are determined to run them well and
profitably to ensure that we remain in control of our destiny. Whether individuals with disabilities remain
employed with PRIDE or seek employment in the community—increased independence, dignity and
pride are the measures of our success. To stay ahead of an ever-changing landscape, we must work
harder, think smarter, and try new approaches.
Our spirit of innovation and plain hard work drove PRIDE to achieve a record $279.8 million dollars
Of course, our key measure of success is the difference we make in the lives of others. While
in revenue, a +8.2% increase over FY 2013/2014. Net assets adjusted for deferred gains increased
we see and hear the results daily, it is especially gratifying when others see them, too. This year,
5.2% to $22.2 million dollars. We also added 175 jobs, bringing us to our most important numbers:
we are honored to share that Comstock’s Magazine listed PRIDE Industries among 2015’s Top
5,368 employees, including 2,955 employees with disabilities.
Ten Most Inspiring Capital Region Nonprofits.
To ensure continued success, we are investing in new and current initiatives that support our customers,
The accomplishments highlighted in these pages are the result of commitments we take very
employees, and those we serve.
seriously. First, to ensure our customers’ complete satisfaction, as they are the engines that power
In 2015, we invested in a human capital management (HCM) system. The unified solution will integrate
complex human resource and payroll processes, increasing efficiency and reliability while reducing
reliance on multiple systems.
Industry changes are increasingly unpredictable and fast-moving. In response, we are focused on
diversifying our client base across well-established core businesses. Opening new markets, focusing on
organic growth, and building on existing strengths keeps our momentum moving forward.
our growth. Second, to operate our organization effectively in support of our mission and our core
lines of business. And, most important, to make positive differences in the lives of people with
disabilities.
Everything we achieve is made possible through the loyalty and commitment of our customers,
employees, communities, contributors, and dedicated board of directors. Thanks to all of you,
we see a future bright with opportunity. Our heartfelt thanks to all who contributed to this shared
vision of success.
Quality and safety are tangible measures of best business practices. Maintaining high safety and quality
standards directly benefits our customers, reduces costs, and results in repeat and referral business. And
it sometimes results in recognition of our employees’ efforts. This year, we were delighted when Frank
Olivas, Safety Director for PRIDE Industries at Ft. Bliss in El Paso, Texas, was selected as the 2015
Safety Professional of the Year by J.J. Keller & Associates, Inc., a leading national safety and regulatory
compliance consulting firm.
14 PRIDE INDUSTRIES
Robert F. OlsenMichael Ziegler
ChairmanPresident/CEO
2015 ANNUAL REPORT 15 5368 Employees
OUR LEADERSHIP
2955 with Disabilities
B O ARD AND CO MMITTEES
BOARD OF DIRECTORS
$279.8
BOB OLSEN
Chair
J.R. Roberts Corp.
Retired Chairman/CEO
1, 4
$258.7
$21.1
$22.2
BOB SELVESTER 1, 6
Vice Chair
State Farm Insurance, Retired Broker
MIKE SNEGG 1, 2, 4, 5
Treasurer
Berkeley Capital Trust, CEO
SANDY SMOLEY 1, 6
Secretary
The Smoley Group, Chairman/CEO
2014
2015
2014
2015
Revenues
Net Assets
($ in millions)
Including Deferred Gains ($ in millions)
LARRY WELCH 1, 3
Member-at-Large
Hewlett-Packard, Retired Vice President
of Indirect Procurement
JUDSON RIGGS
Past Chair
Teichert, Inc., Chairman/President/CEO
1, 2, 5
EXECUTIVE TEAM
WALT PAYNE 3, 4
Blue Diamond Growers,
Retired President/CEO
MICHAEL ZIEGLER
President/CEO
ED BONNER 6
Placer County Sheriff
TIM YAMAUCHI 2, 5
Executive Vice President/CFO
ROB LYNCH 4
VSP Global, President/CEO
RONALD J. MITTELSTAEDT 3
Waste Connections, Inc., Chairman/CEO
RICK MAYA 2
Bank of the West, Vice President
DORENE DOMINGUEZ 3, 5
Vanir Group of Companies, Chairman
CLAIRE POMEROY, M.D., M.B.A. 3
Albert and Mary Lasker Foundation,
President
JIM BARONE 2
Senior Executive Service,
U.S. Air Force, Retired
Past Chair, SourceAmerica Board
of Directors
PETE BERGHUIS
Chief Operating Officer,
Senior Vice President
TINA OLIVEIRA
Senior Vice President
Human Resources
SAM SEATON
Senior Vice President
Rehabilitation Services
COMMITTEES:
1. Executive 2. Finance 3. Audit 4. Compensation 5. Real Estate 6. Personnel
Financial Highlights
We live in an era of great change and fierce competition. Through it, we have demonstrated
our ability to leverage talents and technology to expand opportunities for people with
disabilities and our capacity to serve them.
16 PRIDE INDUSTRIES
1, 2, 5, 6
(800) 550-6005
prideindustries.com
EXTRAORDINARY
PEOPLE
EMPOWERED
BY PRIDE.
THE TWO SIDES OF PRIDE
P RID E IND US T R IES 2015 ANNUAL REPORT
DISABILITY IS A JOURNEY
UNIQUE TO EVERY INDIVIDUAL
Whether you are born with a disability or acquire one through illness or
injury, every person who has embarked on this journey has overcome
multiple obstacles and demonstrated resilience in the process.
The same qualities that help a person rise above their disability are the most
sought after by employers: resilience, determination and persistence in pursuit
of a goal. And yet, all too often, people with disabilities are excluded from
the workplace.
Employment is the key to connecting individuals to their communities and
sustaining a more independent life. Employment builds dignity and selfesteem. Thus, employment is at the heart of our mission at PRIDE Industries.
We help people with disabilities build skills and prepare for the workplace.
We help employers gain an understanding of the value that people with
disabilities offer as employees. We match individuals with disabilities to the
right job and provide the support needed to ensure mutual success.
And it works. Over decades, PRIDE Industries has placed thousands of
individuals with a wide range of disabilities in jobs at PRIDE and with
community employers.
Let us tell you how.
Extraordinary people
empowered by PRIDE.
At PRIDE, we know that disability does not mean inability and that employment builds
confidence, self-reliance, and dignity. For nearly 50 years, we have successfully prepared
people with disabilities for employment and more independent lives.
Who We Serve
PRIDE Industries was founded by a group of parents who wanted more for their adult children with
developmental disabilities. Over time, we have extended our proven expertise to assist others overcoming
challenges to skills development, employment, or successful community integration. Today, we serve
individuals at every level of developmental, intellectual, physical, sensory, learning, and mental health ability.
THROUGH OUR PROGRAMS, WE EMPLOY AND SUPPORT:
• Almost 1,300 individuals with disabilities on hundreds of commercial contracts.
• More than 550 individuals in community employment.
• More than 1,100 individuals with significant disabilities on federal contracts through our partnership
with the AbilityOne® program.
Our service continuum is designed to meet each individual’s needs and interests, providing assessments,
career planning, training, placement, on-the-job support, follow-up, and case management.
People come to us through referral from state or national agencies, connections with third-party
partners, or through open recruitment. We focus primarily on employment because a job is more than a
paycheck—it’s a vital link connecting people to their communities.
Our vocational rehabilitation services adhere to professional and ethical standards established by the
Commission on Accreditation of Rehabilitation Facilities (CARF), California Department of Rehabilitation,
California Department of Developmental Services, and similar agencies in other states.
4 PRIDE INDUSTRIES
KRISTOPHER
ARNESON
Electronics Contract
Manufacturing
Production
Kris was diagnosed with a disability as a young
child. His challenges include processing and
retaining information. “In school I could not solve
problems in my head because it either took too
long or the processing just erased.” His confidence
suffered and he was bullied. “All I knew was
hatred towards my disability,” says Kris. “I never
thought there was a place that accepted people
like me.”
At PRIDE, Kris was given an opportunity to
develop the skills needed to achieve his dreams.
He is part of a mentoring program in electronics
contract manufacturing where he has excelled.
Kris’ goal is to become a manufacturing lead and
mentor other individuals with disabilities working
at PRIDE. “I was in their shoes – and look at me
now. I want to help others get to where I am,”
says Kris.
At PRIDE, we continuously evolve and
expand to meet the changing needs of
individuals with disabilities and other
groups who face significant employment
barriers.
Our Programs
By bringing fresh, individualized approaches to our
services, we help people gain employment and
greater independence. We develop and place
individuals in employment opportunities matched to
their goals and interests. Through follow-up services
and case management, we work with them to
ensure success.
Military service forever changes the lives of
many who serve. We have been honored to
support veterans with disabilities as they take
on the challenges of transitioning to the civilian
workforce. Our dedicated veteran liaison and
program staff recruit candidates, identify needs,
connect individuals to resources, and ensure
that each man or woman receives appropriate
support and placement. Because the brotherhood
of service creates lasting bonds, our contracts on
military bases provide veterans with welcoming
workplaces. Surrounded by the familiar, veterans
can enhance their skills and careers while
serving beside fellow soldiers. Our programs
and partnerships with veteran and community
organizations help those who have served find
their place in the workforce with honor, dignity,
and understanding.
6 PRIDE INDUSTRIES
EMPLOYMENT TRAINING AND SUPPORTS
Our employment services assist individuals with
disabilities to identify vocational goals, develop
personal plans, build job skills, and gain support.
Individuals work on site at PRIDE or in supported
groups and individual employment placement in
the community.
TRANSITION PROGRAMS FOR
YOUNG ADULTS
Students with disabilities transitioning to a work
environment face unique challenges. Overcoming
these challenges requires a coordinated effort
between students, families, school systems, and
vocational rehabilitation systems. Our transition
services focus on self-determination, employment
preparation, and job placement.
YOUTH EMPLOYMENT SERVICES
Youth Services provide low-income, transition-age
youth with disabilities—including youth leaving
the foster care system—with marketable work
experience, employment soft skills training, linkages
to educational services and individualized support.
Equipped with the necessary tools, young people
are empowered to secure stable employment and
build self-sufficient lives.
CAREER DEVELOPMENT AND TRAINING
PROGRAMS
Certificate training creates opportunity for wage
advancement and independence. PRIDE Industries
is an accredited training provider of the National
Center for Construction Education and Research
(NCCER) skills training program. The course
provides employees with trade skills development
through standardized and progressive curriculum.
Additional courses currently in development draw
on our expertise in facilities and manufacturing
services.
PAID WORK EXPERIENCE
Paid work experience plays a vital role in helping
individuals who have never entered—or have
been excluded from—the workforce. It helps
veterans translate their military service to the civilian
workplace and has a profound positive impact
on young adults entering the workforce for the first
time. In fact, research conducted at the Urban
Institute found that California foster youth who had
work experience prior to the age of 18 were 91
percent more likely to be employed at age 24 than
those with no work experience. Each internship
includes a minimum of 250 hours of paid work
experience. We are able to fund these internships
through generous individual and corporate
contributions to PRIDE Industries Foundation.
2015 ANNUAL REPORT 7 SOME 2015 HIGHLIGHTS
EMPLOYED 362 in supported groups working in
the community. Each group is comprised of three
individuals and a job coach, providing a bridge to
independent employment while learning technical
and employment soft skills.
PREPARED AND PLACED 211 individuals in
community employment thanks to the partnership
of nearly 150 employers who understand the
value that people with disabilities contribute to the
workforce.
EXPANDED EMPLOYMENT SERVICES to South Lake
Tahoe, restoring critical services to individuals with
disabilities who had no path to employment.
We bring fresh and individualized
approaches to core services to help
people succeed in employment and gain
greater independence.
SERVED OVER 150 AT-RISK YOUTH through the
KEYS Program in partnership with the Department
of Rehabilitation and Placer County Office of
Education, and the Workforce Investment Act (WIA)
contract including youth emancipating from the
foster care system.
PRIDE INDUSTRIES WAS THE LARGEST PROVIDER
of individual community placements for individuals
with disabilities in the State of California.
PRIDE WAS NAMED ONE OF THE TOP TEN MOST
Inspiring Capital Region Nonprofits by Kamere and
Comstock’s Magazine.
2955
PEOPLE WITH
DISABILITIES
EMPLOYED.
2015 ANNUAL REPORT 9 PRIDE Industries Foundation
PRIDE Industries Foundation serves as the giving vehicle for PRIDE Industries.
Operating under PRIDE, a 501(c)3 public charity, the Foundation provides an
opportunity for individuals, corporations and foundations to join PRIDE’s mission.
PRIDE Begins With You:
How You Help
The foundation serves as the bridge connecting donors to those whose lives are changed by their
generosity. Gifts and grants to the foundation expand opportunities for people with disabilities and
other obstacles to employment. PRIDE Industries pays the foundation’s minimal administrative expenses,
enabling 100 percent of funds raised to go directly to supporting programs and services for people
with disabilities.
Your gifts to PRIDE Industries Foundation make a real and lasting difference in the lives of the people
we serve. In the past year alone, gifts to PRIDE have helped us extend our reach to more than 600
individuals with disabilities and other obstacles to employment.
THROUGH YOUR GENEROSITY, THIS YEAR WE HAVE:
• Helped more than 283 people with disabilities—including veterans and at-risk youth—become
employment-ready by providing more than 5,660 hours of job preparation, coaching, and
placement services.
• Enabled 64 youth, veterans, and adults with disabilities to gain valuable work experience through
18,908 hours of paid internships.
• Invested in technical skills training classes at PRIDE’s major military base locations, helping
88 people with significant disabilities earn industry certificates and prepare for advancement.
• Funded transportation to and from work for 35 people with disabilities whose lack of transportation
excluded them from employment.
• Underwrote equipment purchases and assistive technology that helped 100 people with disabilities
to find, retain, or advance in employment.
• Helped people with disabilities keep their jobs by funding emergency employee supports.
To learn more about how you can help expand employment opportunities for people with disabilities,
visit the “How You Can Help” section at prideindustriesfoundation.org.
10 PRIDE INDUSTRIES
LEMUEL RUBIO
Contract Packaging
Production
PRIDE Industries
Lemuel suffered a seizure as a baby. It resulted in
a lifelong learning disability. Lemuel says that he
sometimes has difficulty processing things and that
he relies more on visual learning than auditory.
Show him, don’t tell him.
At PRIDE, Lemuel works with trainers
and counselors to gain valuable work skills.
He credits PRIDE with teaching him about “having
a strong work ethic, teamwork, and focus.” Most
importantly, Lemuel has expanded his horizons and
sees new possibilities.
His father inspired his love of cars and car repair.
He learned the basics of auto mechanics by working
on his father’s Toyota, which he proudly drives
today. Lemuel’s next goal is to attend community
college to become an auto mechanic. Lemuel may
learn differently – but his dreams and aspirations
are not different at all. He just needed the
opportunity.
(800) 550-6005
prideindustries.com