cca global partners 2012 annual report

ANNUAL REPORT 2012

ENRICHING THE LIVES OFENTREPRENEURS

ANNUAL REPORT 2012

©2012 CCA Global Partners, Inc. All Rights Reserved.

MEETING NEW CHALLENGES AND

CAPITALIZING ON OPPORTUNITY.

FUELED BY THOUSANDS

OF STRONG LOCALFAMILY BUSINESSESCCA GLOBAL PARTNERS:


CCA Global Partners4

Rick BennetCo-Chief Executive Officer

Howard BrodskyCo-Founder, Chairman & Co-Chief Executive Officer

As the retail landscape changes so do strategiesand tactics. Our mission, however, is and hasalways been a constant. CCA Global Partners:Enriching the lives of entrepreneurs.

Meeting new challenges andcapitalizing on opportunity, CCAGlobal Partners is fueled bythousands of strong local familybusinesses.

5CCAGlobalPartners.com

At CCA Global Partners, our mission is to help independent businesses and entrepreneurs

succeed and thrive. Our organization is fueled by thousands of strong local family businesses,

and today we can proudly say that our local retail network is among the strongest in the world –

viewed by our vendors and our competition as a true powerhouse.

We have reached this level due to our continued focus on increasing the efficiency and

profitability of our members’ independent businesses. Our members’ businesses have gained

market share even as other retail organizations have contracted.

CCA Global has held fast to a sound fiscal course — with a strategy grounded in innovation, local-

market competitiveness and fiscal responsibility. We have strategically deployed resources to

capture a number of corporate opportunities to grow.

As the economy slowly recovers, we will emerge from the turbulent times with no debt and a

strong balance sheet — positioned well to succeed throughout this year and beyond.

As we meet new challenges and opportunities, our focus remains steadily on ways we can help

businesses grow and succeed.

We will continue to focus on our core business strengths that have bolstered our success in

making CCA Global independent businesses stronger and smarter. Our proprietary products will

continue to help differentiate our businesses in an otherwise crowded marketplace while our

innovative marketing and operational programs keep our businesses ahead of the competition.

Our most significant challenge, and opportunity, for the upcoming year is to continue to stay on

the offensive — continually refining and improving our strategies. In the next year we will build

on the strong foundation we have established by growing our members’ local market share and

profitability. Keeping our goal of fostering excellence both corporately and within our

independent businesses top-of-mind is key to our continued success.

As CCA Global Partners moves into a new year, we look forward to every challenge, and we are

confident that the combination of innovation, a sound balance sheet, pragmatic decisions, and an

unwavering drive have placed our members into a position to succeed in any economic

environment.

LETTER FROM OUR CO-CEOs ENRICHING THE LIVES OFENTREPRENEURS


CCAGlobalPartners.com

A history of growth, success,expansion and profitability.

7

FOUNDED ON THE PRINCIPLES OF UNITY,STRENGTH, PERSEVERANCE AND SUCCESS

CCA Global Partners® was born out of the shared vision of its two founders — Howard Brodsky

and Alan Greenberg. Their ambitious goal was to help independently-owned retailers retain

their independence and operate profitably in competitive marketplaces.

Today, over a quarter-century later, CCA Global has grown substantially to become a major

player in each of the industries our members inhabit. The reasons for this record of success are

many but two that stand out are CCA Global’s fierce commitment to the independent spirit as

well as an undying passion for helping businesses attain their goals.

As we look to the future, we do so with a spirit of excitement and renewed optimism. We

remain proud of our history and have held steadfast to our ideals as we have evolved into a

management and marketing company that is now involved in four major industries: flooring,

lighting products, biking and nonprofit.

CCA Global’s unique business model has a proven track record of empowering thousands of

forward-thinking entrepreneurs to succeed in a marketplace with limited growth

opportunities.

COMPETITIVE EDGE FOR THE FUTURE

By providing access to innovative products, systems and services, CCA Global gives independent

businesses a competitive edge while allowing them to maintain their own identities.

The achievements of CCA Global have indeed been far-reaching, across markets and borders. In

fact, membership has grown to more than 2,700 locations, structured into 14 affiliate companies

around the globe including the United States, Canada, Australia and New Zealand.

But ultimately, the evidence of our success lies not in sheer numbers but rather in the success

that lies in each and every member.

What was once considered a small endeavor focused solely on the needs of independent

businesses has today grown into a major, industry-leading force passionately committed to

the needs and dreams of small business.

COMPANY PROFILE




Growth and profitability through innovation,

passion and commitment.

9

INNOVATION FUELS OUR GROWTH —

ENTREPRENEURS FEED OUR SPIRIT.

Since our founding more than two decades ago, CCA Global Partners® has developed our

corporate culture and daily activities around a single, unified mission: to empower

entrepreneurs and independent business owners by providing resources and innovation

that create sustainability, growth and effective competition in today’s evolving

marketplace. To achieve this ambitious vision, an unyielding bond has developed

throughout the company that has at its foundation our five Core Values and Commitments:

• Entrepreneurialism

We proceed from an entrepreneurial spirit driven by a unified vision that

honors differences and values independence within our membership and

divisions. We collaborate, coordinate and leverage our efforts to serve the best

interests of our members and shareholders.

• Innovation

We must act and innovate with speed and agility. We continually seek the

vision and courage to embrace positive change and the creativity to deliver

ever greater value in the service of our mission.

• Passion

We lead with energy and a spirit of competition that engenders achievement

and significant market advantage. We genuinely care about the people we

work with and all those we serve.

• Discipline

We commit to superb execution, focus and discipline in everything we do.

• Integrity

We earn people’s trust by being honest, respectful and ethical in all our actions

and relationships.

CCA Global’s goal is to create a mutually rewarding bond between the company and

community whereby our growth generates social development and enhances the lives of

customers and entrepreneurs around the world.

OUR MISSION



EDUCATION

MARKETING TOOLS

PROPRIETARY PRODUCTS


Education

CCA Global University trains more than10,000 sales professionals each yearthrough a full suite of programs andinteractive courses. It features:

• Award-winning Internet-basedtraining with “learn at your own pace” skills and best practices,24/7

• Comprehensive, best-in-classlearning environment thatpromotes and sustainssuccessful business behaviors formembers and staff

• Ability to identify new businessopportunities and enable afulfilling job environment thatleads to customer satisfactionand increased profits

Marketing Tools

CCA Global provides independentbusinesses with marketing tools thatenable them to compete with theirlarger competitors. Promotions andcreative materials are fully integratedacross all media forms and are offered tomembers in a flexible format so they canutilize the best mix for their market.Some of the powerful tools offered atreasonable rates that save membersmoney include:

• Online Marketing• Broadcast• Social Media• Direct Mail• Email• Public Relations

Proprietary Products

Our product development coupled withmerchandising prowess has allowed usto introduce exclusive products andbrands that set the company apart fromour competitors.

Because of the size of CCA Global’smembership, we are able to sourceproducts at the lowest possible pricesand pass the savings along to ourmembers, franchisees and licensees.

Members can reduce operating costswith access to accurate product data andpricing. Also, merchandising programsdesigned to improve selling systems,simplify the shopping experience.

CCA GLOBAL IS A

FINE-TUNED MACHINE OF

INTERCONNECTED SERVICES

AND INDEPENDENT

BUSINESSES.

Our continuously evolving business modeloffers independently-owned businessesan array of tools to maximize operationalefficiencies and achieve success.

Gaining leverage and momentum fromCCA Global’s collaborative andcoordinated services, independentmembers are able to:

• Differentiate themselves in high-impact ways

• Compete and win on the toughestof playing fields

• Seize opportunities that wouldotherwise escape their grasp

All of which translates to exceptionalgrowth and profitability for thosemembers.

CCA Global has developed aninfrastructure comprising a variety ofbusiness, marketing and operational toolsto achieve economies of scale whilepreserving the spirit of entrepreneurialism.

COLLABORATION TOOLS

OPERATIONS PROGRAMS

BUYING POWER



Buying Power

In addition to offering the lowestpossible product prices, our affiliatedmembers, franchisees and licensees canbenefit from competitive rates andexperience tremendous buying poweron a number of essential products andservices utilized in operating a business.

From affordable insurance rates to greatprices on office systems and supplies,buying together as a group has alwaysbeen one of the most powerful ways wehelp independent businesses compete.

Operations Programs

A complete menu of business servicesand programs is available, including:

• Credit Programs• Real Estate Services• Credit Card Processing• Low Consumer-Financing Rates• Check Security• Loyalty and Gift Programs• Delivery Discounts• Office Supplies• Cellular and Long-DistanceServices

• Collection Services• Mystery Shopper Programs• Waste Management Services• Employment Verification

Collaboration Tools

Affiliated businesses receive powerfulcommunications tools, including:

• Intranet Sites• Annual Member Surveys• Semiannual Conventions• Advisory Councils• Networking Groups• Weekly Emails• Newsletters • Business Consulting

CCA GLOBALPARTNERS


EXCLUSIVE BRANDS

Access to exclusive proprietary brands provides members with an unbeatable competitive edge. Innovative

processes and bold new strategies are only part of CCA Global’s winning business model. Access to exclusive

proprietary brands adds firepower to member arsenals that competitors simply cannot match.

TIGRESSÁ® SOFTSTYLE Tigressá Softstyle features exceptional softness and ultimate strength. Advanced yarn

engineering provides superior durability with a pleasant, luxurious touch. Plus, Tigressá's

HTD technology features precision-engineered, high-tensile denier filaments half the size

of human hair, for an ultra-soft texture.

RELAX, IT’S LEES®Backed by the industry’s only 25-year, no-exclusions stain warranty, Lees carpet performs

as impressively as it looks. Even better, Lees offers a broad range of styles, colors, patterns

and textures.

BEDFORD MILLS™Constructed with the most exquisite materials and made by the most skilled hands,

Bedford Mills floors are the epitome of style, design and elegance. Bedford Mills sets a new

pinnacle for luxury through meticulous dedication to the highest standards of quality and

workmanship.

LOUIS A. DABBIERI® COLLECTIONThe Dabbieri Collection is the ultimate in style and fine craftsmanship, created in an array

of fashion-forward colors, patterns and textures. The Dabbieri Collection is offered

exclusively at International Design Guild-affiliated showrooms across North America.

LAMINATE FOR LIFE®Laminate for Life features a selection that offers beauty and durability and also an

affordable flooring choice. Laminate for Life is the easiest care, lowest maintenance

flooring available with the luxurious great looks of authentic hardwood or tile.

INVINCIBLE® HARDWOOD COLLECTIONInvincible Performance Hardwood embodies some of the best flooring attributes in the

business. Invincible combines sought after attributes like increased stain resistance, and

superior protection from scratches, scuffs, and wears with exceptionally beautiful

hardwood. In addition to its superior durability, color and detail, Invincible offers a 50-year

warranty customers can trust.


ILUCIO™Customers know they’ve seen the light when they experience firsthand the luxury,

artistry and timelessness of the Ilucio lighting collection. Without a doubt, the light

at the end of the tunnel of boredom is Ilucio.

RESISTA®The name says it all. Resista uses an advanced-generation stain repellent that resists

liquid from seeping into the fiber, repelling spills before they can stain. Resista looks

great, lasts longer and has the same great warranties as do many nylon fiber

carpets, but at a much lower price.

BIGELOW®Bigelow has a reputation to uphold as the oldest and most respected brand of carpet

in North America. With a legacy for delivering quality, beautiful and dependable

carpet, Bigelow provides an excellent value and a great warranty.

RUSTIC RIVER™The Rustic River Hardwood line offers a collection of products for the customer

looking for unique textures and styles to bring a relaxed natural feeling to their home.

Rustic River Hardwood styles feature the warmth and personality of seasoned and

weathered hardwood.

DOWNS®Downs has filled homes with quality flooring for more than four generations. As

one of the oldest and most respected names in the industry, Downs is

synonymous with superbly constructed, elegant and uniquely-styled floors. Today,

every Downs floor is five-star rated for premium performance.

HEALTHIER LIVING®CARPET INSTALLATIONHealthier Living Carpet Installation offers a superior level of care and health benefits

over ordinary installations. It is a cleaner and healthier installation practice that

minimuzes irritants, microbials, dust and odors for health conscious consumers.



1985:Howard Brodsky and AlanGreenberg bring in Sandy Mishkin,one of the most knowledgeableproduct people in the industry.The trio founds Carpet One — thefirst company of CCA GlobalPartners.

1992:Carpet One University isdeveloped, as acomprehensive, results-oriented corporate trainingdepartment offeringmanagement, leadership, salesand product education.

1985: CCA GlobalPartners, then calledCarpet Co-op of America,founds Carpet One.

1991: ProSource, a closedshowroom, wholesale floorcovering company catering tocommercial developers,designers, real estate brokersand installers, is launched.

1993: Stone Mountain’s Flooring Outlet,which serves the consumers that demandquality products at value prices, debutsunder the Carpet Co-op umbrella.

1994: Carpet One begins to lookoutside the U.S. for growthopportunities. In Carpets, basedin Queensland, Australia,becomes the first non-NorthAmerican member of CarpetOne, followed by members inNew Zealand and Canada.

1995: International Design Guild islaunched, catering to interiordesigners and discriminatingconsumers by providing qualityflooring from all over the world.

1985

1986:Fifty Carpet One member retailers gather inAtlanta, Georgia, for what would become thecompany’s first convention. Everyone pitches into help — assembling fixtures, labeling samplesand setting up chairs and a speaking area wherenew products are introduced and marketingresearch is discussed.

From our earliest days as a 13-member cooperative, we’ve usedpassion and inspiration, researchand innovation to create anunbeatable business where we allsucceed by working together.

From Inspiration to Innovation

It started with a vision: what if itwas possible to build acooperative environment wherelocal business owners couldachieve the same marketadvantages as the national chains?

Howard Brodsky and AlanGreenberg, floor-covering expertsand good friends, challengethemselves to find a way to enableindependent carpet retailers tooperate profitably in anincreasingly competitiveenvironment. Their plan is tocombine the best marketing withbuying power and managementtools. They will only work with thebest retailers.

CCA GLOBALPARTNERS: OVER 25YEARS OF SUCCESS

1995: The cooperativeexpands with the launch ofCarpet One Canada andcelebrates its 10-yearanniversary.


1998: Carpet Co-op ofAmerica purchasesAmerica’s Carpet Gallery,which brings 143 stores in40 states to thecooperative.

2000: Carpet Co-Op of America buys thefranchise operations of Flooring Americaand GCO.

2001: Carpet Co-op ofAmerica changes its name toCCA Global Partners,reflecting its tremendousgrowth and diversification,worldwide operations andbroader product lines.

2003: CCA expands into thebiking industry with thecreation of a group nowknown as The BikeCooperative.

2005: The Floor Trader Brand isestablished.

2007: The CCA family loses co-Founder andco-CEO Alan Greenberg.

2010: CCA Global Partnerscelebrates its 25thAnniversary and now has2,700 locations and 14companies around theglobe, including the UnitedStates, Canada, Australiaand New Zealand.

2000: Carpet Co-op ofAmerica acquires a majorityinterest in FloorExpo,America’s largest residentialflooring contractororganization, whichspecializes in serving theneeds of new home builders.

TODAY

2007:CCA Global Partnersmakes a pledge to bean environmentallyconscious companywith the launch of theGreen Select initiative.

2001: CCA Global buysnational lighting companyIlucio, which becomesLighting One.

2008: BizUnite launches tohelp independentbusinesses, and CCA Globalexpands to offer powerfultools and programsspecifically for non-profitsthrough new division CCAfor Social Good.

2011:CCA Global Partnerscelebrate 25 years ofhelping independentbusinesses succeed.

2008: Rick Bennet joinsHoward Brodsky as co-CEOand the cooperativecontinues to expand itsnational and global business.KBX launches as a divisionof FEI Group.

2011: CCA Global Partnerslaunches Choose-A-Coopmovement to help focusconsumer knowledge of theimpact of local, independentcooperatives.

EXPERTS L

OCAL

T RU S T

W O R T H Y

DEPENDABLE


1996:CCA Global Partners is internationalwith stores in the U.S., Canada,Australia and New Zealand.

2003:CCA Global holds its first CCAGlobal Partners/FCIF CharityGolf Tournament. Over 150flooring industry leadersattend and the event raisesover $100,000 for the FCIF’sendowment fund.

2012: Reaches$1 billion incumulativedistribution toits members.


CarpetOne.com

Breaking more new ground in flooringthan anyone else.

1,000+ retail

showrooms

Countries: United

States, Canada,

Australia and

New Zealand

Developed

Healthier Living

Installations to

provide superior

installation

practices

17

DIVISION PROFILE

CARPET ONE FLOOR & HOME®

With more than 1,000 locations worldwide, Carpet One Floor & Home’s independently-owned and

operated stores continue to lead the retail flooring industry. Through innovative products,

groundbreaking merchandising, and added value services, Carpet One Floor & Home® is the leader

in professionally installed floor coverings.

Entrepreneurial spirited Carpet One Floor & Home members have access to a complete package of

business tools and services. From operations modules to an in-house training university to state-of-

the-art technology, Carpet One Floor & Home members have world-class support systems to help

them compete and succeed in the market place.

DRIVING TRAFFIC WITH BEST-IN-CLASS MARKETING PROGRAMS.

A significant benefit of membership in the cooperative is the access to a full range of Carpet One

Floor & Home marketing programs. Creative materials for every form of media are provided to

members along with a national website and lead-management system. Members are supported

with a complete digital marketing strategy including a robust online product catalog through

CarpetOne.com, a CRM system to capture customer inquiries, and a team dedicated to every form

of social media and public relations.

TURNING MORE LEADS INTO CUSTOMERS WITH THE BEST CONSUMER SHOPPING EXPERIENCE.

Destination: Carpet One Floor & Home (DC1), developed in collaboration with a team of world-

renowned store planners and architects, delivers the ultimate shopper experience by showcasing

proprietary products in a visually spectacular showroom. Every Destination: Carpet One showroom

is designed to make the selection process simple and easy for today’s customer.

Central to DC1 and all Carpet One Floor & Home stores is the exclusive SelectAFloor system (SAF).

This powerful selling system simplifies the shopping process by highlighting lifestyles and

warranties in an easy-to-understand merchandising vehicle. SAF highlights product performance,

which is emphasized by The Beautiful Guarantee®. This industry-first guarantee promises customers

peace of mind. Any customer who does not think their floors look beautiful will get a free

replacement, including free labor. That is The Beautiful Guarantee® from Carpet One Floor & Home

members.

Carpet One Floor & Home also keeps the positive customer experience going after the sale with

their Installation Excellence program which trains and certifies installers to give the high level of

customer service expected at Carpet One Floor & Home.

HOMETOWN FLOORING EXPERTS CAPTURE MORE HOMETOWN BUSINESS.

Carpet One Floor & Home members provide their customers with both the character and

exceptional quality of individually-owned stores combined with established and highly prized

national brands. This allows Carpet One Floor & Home to capture hometown business and keep

their future looking bright.

CarpetOne.com



FlooringAmerica.comFlooringCanada.com

Creating ground-breaking

opportunities through innovative

thinking.

Nearly 500

store locations

Best in class

hyper-local

marketing

approach

19

DIVISION PROFILE

FLOORING AMERICA | FLOORING CANADA

Fresh thinking, innovative products and delivering unparalleled customer experiences are at the heart of

everything Flooring America®/Flooring Canada® stands for to its members. This philosophy translates into

two things: delivering customer happiness and providing confidence to members, ensuring they thrive

even during challenging economic times. With access to products and services that allow members to

offer each customer a unique and memorable experience, unrivaled quality and tangible value, Flooring

America/Flooring Canada keep customers top of mind in everything they do.

STANDING OUT FOR OUTSTANDING RESULTS

Members of the cooperative benefit from aggressive national and local online marketing strategies, a

fully-integrated customer relationship management system and state-of-the-art, fully customizable

websites, complete with a 3,000 SKU product catalog. Other programs include sales professional

certification, a Star Service installation program, and advanced training courses available through their

award-winning online university.

THE RIGHT PRODUCTS & SERVICES FOR TODAY’S FLOORING SHOPPER

Flooring America/Flooring Canada’s exclusive merchandising system makes it easy for customers to find

the perfect product every time. This revolutionary display system offers an unlimited array of changeable

options to ensure the ultimate in merchandising flexibility today, and many years to come.

In addition, Core Elements, Flooring America/Flooring Canada’s main street commercial flooring solution,

brings main street commercial flooring to another level of ease and beauty. Select by color, business

segment or by category. Core Elements makes commercial flooring selections as easy as 1-2-3.

BRINGING SHOPPERS SIMPLICITY & PEACE OF MIND

As part of the Ultimate Confidence Guarantee, members guarantee products and services for low-price,

lifetime installation and 30-day replacement, as well as a Confidence Plus Warranty that gives customers a

60-day, no-questions-asked replacement option, labor and materials included. And, the Five Star Selection

System makes it easy for customers to easily choose and match up the products that are right for their

lifestyle.

CHANGING APPEARANCES CHANGES MINDS

Transforming outdated showrooms into showplaces, the Vision initiative has continued to attract new

customers for member stores. Recognized by Chain Store Age magazine as one of the industry’s most

innovative design and customer experience solutions, Vision has demonstrated the vital connection

between the customer experience and improvements to the store’s bottom line.

LOOKING FORWARD WITH FORWARD THINKING

The commitment of significant dollars to operations improvement and online/digital/social based

marketing and customer acquisition initiatives will drive new business and productivity for member

stores. A diversified marketing approach — encompassing traditional, online and social media marketing

— will help members grow market share and drive incremental business.

FlooringAmerica.com | FlooringCanada.com


Opening doors for trade

professionals with intelligence

and power.

ProSourceFloors.com


21

DIVISION PROFILE

PROSOURCE

With 140 showrooms throughout North America dedicated exclusively to the wholesale flooring needs of

trade professionals, ProSource® has the network and the savvy to help drive sales and elevate customer

satisfaction to unprecedented levels. Today, 295,000 ProSource trade professional members from the

building, remodeling, design and installation industries are benefiting from exclusive access to an

unrivaled product selection and floorcovering expertise.

FOSTERING GROWTH WITH A TWO-PRONGED APPROACH

Deeply committed to the success of its franchisees’ showrooms, ProSource provides each location with an

integrated system of database and offline and online marketing, training, buying, merchandising and

operations support. This comprehensive support helps showrooms build traffic, expand their member

bases and grab a higher percentage of member business to improve showroom performance. At the same

time, ProSource is dedicated to the development and implementation of policies and programs that

increase its locations’ profits. This double-barreled approach to growth has helped make ProSource a

market leader.

OFFERING TRADE PROFESSIONALS A SHOWROOM OF THEIR OWN

An exclusive focus on the needs of trade professionals has enabled ProSource, through its locations, to

become the largest trade-only wholesale flooring source in North America. The best possible

merchandise, backed by the industry’s best support system, is what makes ProSource unique. It’s why

trade professionals think of ProSource as an extension of their businesses, as a showroom and showcase

of the highest quality flooring at the guaranteed lowest wholesale prices.

MAKING THE BEST BETTER

ProSource’s multidimensional web marketing strategy began with the launch of ProSourceFloors.com.

This website is supported by paid Internet advertising to generate leads for showrooms. It also has the

largest flooring product catalog in the world. ProSource has integrated web marketing with email and

direct marketing using a custom-built Customer Relationship Management (CRM) system that puts

powerful customer information in the hands of showroom managers and staff. They are also leveraging

social media to foster showroom-member relationships and grow frequency of purchase.

FINDING NEW WAYS TO GROW

Many of our showrooms are now offering Kitchen and Bath countertops and cabinets, and have achieved

significant and profitable growth. ProSource is now beginning to expand this program system-wide.

At the same time, ProSource looks to grow the total number of showroom units in the system through

innovative financial support to qualified owners.

Finally, trade pro business is coming back and ProSource showrooms are taking share from competitors.

To firm up its position of strength in the marketplace, ProSource is focused on refining its core strategy:

good hiring to solidify a showroom’s opportunity for success; new marketing tactics to touch more trade

professionals; and enhanced training devoted to developing the strength and leadership of showroom

managers.

The bottom line: ProSource will continue to hold firm its position as the leading supplier of wholesale

floorcoverings for trade professionals.

ProSourceFloors.com

140 locations

295,000 trade

professionals

Average

showroom sales

of $2.9 million


Helping do-it-yourselfers do it

themselves faster and better.

FloorTrader.com


23

DIVISION PROFILE

THE FLOOR TRADER STONE MOUNTAIN’S FLOORING OUTLETGCO FLOORING OUTLET

Today, more than ever, shoppers are looking for a great deal. And no flooring store concept is better

suited to meet the needs of these value-driven, time-conscious consumers than The Floor Trader® model.

Combining warehouse-like design with no-frills product presentation, The Floor Trader, along with Stone

Mountain® and GCO® stores, provides a high-speed, high-touch environment where customers have

immediate access to the best values in retail flooring today.

PROVIDING UNMATCHED VALUE AND SELECTION

The Floor Trader concept caters to value-conscious customers in unprecedented ways. It starts with a

clean and uncluttered store layout. The Floor Trader franchise store offers customers a logical, easy-to-

navigate store-within-a-store product presentation, where everything is located in clearly defined

categories. Add to that large-format samples, straightforward signage, concise point-of-purchase product

information and knowledgeable sales professionals, and you have the foundation of a unique and

expeditious shopping experience.

OFFERING MUCH MORE FOR MUCH LESS

Huge selection figures prominently into The Floor Trader formula. To begin with, The Floor Trader stores

deliver the best proprietary brand assortment in both soft and hard surfaces. The Floor Trader stores offer

CCA brands such as Tigressá and Resista carpets, but also carry exclusive brands such as Dyna-Clic

laminate, Ciara hardwood, Landmark hardwood, NextWood, and Serafino tile. Then there’s the Factory

Direct™ sampling program, which adds thousands of carpet, ceramic, laminate, wood and resilient

products — all at attractive prices.

CHARGING AHEAD WITH CONVERSIONS

The conversion of Stone Mountain and GCO stores to The Floor Trader franchise brand and business

model continues at a steady pace. The Floor Trader model has improved the product assortment mix by

featuring an equal number of soft and hard surface products. Without compromising total soft surface

sales, this model has increased overall hard surface sales over the outlet model.

The “Jake” Floor Trader advertising campaign, launched in 2010, continues to significantly reduce the cost

of generating new in-store traffic. It has proven to be a versatile campaign that allows for a myriad of

promotional offers during the year. And moving forward, Floor Trader has been testing multiple

merchandising and promotional activities to keep the momentum going. These will be rolled out

throughout the year.

FloorTrader.com

54+ locations

Operating in 22

states


Meeting the demands of the

most demanding customers.Design-Guild.com


25

DIVISION PROFILE

INTERNATIONAL DESIGN GUILD

The luxury consumer is, in some ways, different from the more mainstream consumer. Quality, style and value

are all important considerations of a purchase and, as such, this market segment can be particularly demanding.

The International Design Guild® is expertly positioned to meet the demands of this consumer, and of the

showrooms that service them.

The Guild is an established and respected organization offering its members exclusive products, collective

buying power, robust operational tools, and state of the art marketing services. They are the only luxury flooring

alliance in the country, and The Guild offers its members the finest flooring products available in the market.

UNCOMPROMISING QUALITY

Guild members offer to their clients a collection of the world’s finest flooring products including the acclaimed

Louis A. Dabbieri® Collection — a line of carpet, hardwood, and area rugs exclusively available in Guild

showrooms. In addition to refined product presentation, our members offer their clients expert design services

and a superior level of skilled installation.

EXPANSION OF THE OFFERING

During what have been very challenging economic times, Guild members have maintained their showroom

integrity and commitment to their brand. New products have been added to the offering, including Just Shorn®,

New Zealand wool rugs and carpet.

Members of The Guild are resolute in leveraging the Dabbieri name to market hardwood, carpet and area rugs to

attract a new client base. The Guild will help drive more traffic to member showrooms while also working to

maximize savings for its members. It will bring high touch to high tech, introducing new and exciting ways to

support and stimulate sales via innovative technology and the Internet.

ONE-TO-ONE MARKETING

Success in the luxury market is highly dependent on the interior design community. The Guild provides

marketing tools — from social media and email to special event planning — that targets the needs of interior

design trade professionals.

Because the interior design professionals are so integral to the luxury market, the Guild offers designer

membership to trade professionals to attract and engage individual Interior Designers with Guild showrooms.

This program is designed to increase sales and repeat business in member showrooms while cultivating loyalty.

In 2012, the designer program was enhanced to be more engaging with a new web based platform where

designers can find resources, business tools and opportunities for inspiration. Designer relationships have been

key in the Guild’s success. In fact, member sales have continued to be strong, confirming The Guild’s ability to

attract and retain high-profile customers as well as the value of this program.

CONTINUED COMMITMENT

The Guild’s future efforts to build the business of member showrooms include new product offerings, marketing

initiatives and the use of relevant social media outlets to inform of our offerings.

The Guild is well positioned to continue to offer exceptional service and product to the high-quality floor

covering retailer and consumer.

Design-Guild.com

90+ showrooms

IDG Designer

program

supports and

rewards

designers

Premium

showrooms

servicing the

North

American

design

community


Fourteen years of success as

America’s largest single-familyand multi-family flooring

contractor network.

FEIGroup.net


27

DIVISION PROFILE

FEI GROUP

FEI Group is a major presence in the single and multi-family construction industries with three leading

businesses: Home Solutions by FloorExpo®, MultiFamily Solutions by FloorExpo and KBx, America’s Cabinet

Experts.

Today, members of FEI Group’s Home Solutions® division are, on an aggregate basis, the top providers of

flooring for single-family home builders in the nation’s top 50 markets. Similarly, members of FEI Group’s

MultiFamily Solutions® division serve a rapidly growing number of real estate investment trusts (REITs),

apartment owners and property managers in more than 70 key multi-family markets nationwide. But

more than a mere presence, FEI Group is a relentless force with the momentum and plan of action to

deliver even greater successes for its members in the future.

BUILDING A FOUNDATION TO SUPPORT FLOORING, CABINET AND COUNTERTOP GROWTH

Independence is the cornerstone of America’s power. FEI Group, too, is powered by independence —

leading flooring, cabinet and countertop contractors who know how to leverage their FEI Group

association while retaining their operational autonomy and individual identities.

FEI Group is about maximizing profitability for members through timely strategic action that includes

product power buys and national agreements with property management companies. Members benefit

from networking opportunities with their peers, sharing best practices and experiences that ultimately

result in higher profits.

Cooperative members have access to FEI Group’s world-class marketing services, even getting individual

help with local strategies whenever necessary. Advanced training and technology tools, targeted

merchandising initiatives, and national business programs enable members to gain the acumen to further

separate themselves.

MAKING STRATEGIC STRIDES

While the market may have softened, the strategic mindset at FEI Group has not. Launched in 2008, KBx,

the cabinet and countertop division, is already the largest association of cabinet dealers in the country. By

incorporating a cabinet offering into its business mix, FEI Group gains a more comprehensive product

offering, something more and more customers are asking for today.

Additionally, the inking of several new national contracts with apartment management companies has

allowed the MultiFamily Solutions division to post double-digit growth.

PREPARED FOR EVEN GREATER SUCCESS

With a firm and distinguished member presence in every major market, FEI Group is well prepared to

widen its competitive lead by assisting members in becoming more operationally efficient and continuing

to offer marketing programs aimed at keeping members top of mind.

FEI Group will continue to demonstrate that it truly values and appreciates its members and will work hard

to ensure their success.

FEIGroup.net

Home Solutions

members install

flooring in more than 1

out of every 4 new,

single-family homes in

the United States

Top providers of

flooring in the

nation’s top 50

markets


KBx is an association

of the largest cabinet

dealers in the US

Sprinting light years ahead of

the competition.Lighting-One.com


29

DIVISION PROFILE

LIGHTING ONE

Lighting One® is the largest buying cooperative of lighting specialty retailers in the United States. It

became so by creating a unique brand comprising more than 2,000 products — many of which are

exclusive to Lighting One — and by leveraging the buying power of its 135 member stores.

Today, Lighting One member showrooms, catering to both the commercial and retail trades, collectively

sell roughly $450-million annually of high-quality merchandise. Additionally, new strategies are in place to

ensure that Lighting One continues to outpace industry service and growth standards.

LIGHTING ONE MEMBERS PROFIT FROM THE SAVINGS

Lighting One membership continues to grow even while the lighting industry struggles. And purchases

through the cooperative are increasing. The reason is clear. Lighting One members save money. This

makes them more successful and profitable. Lighting One members earn rebates generated by making

everyday purchases from participating vendors, as well as access to exclusive promotional events

negotiated with key vendors.

Lighting One works with some of the best known manufacturers in the world including Kichler, Quoizel,

Phillips, Progress and Satco. The products offered range from lamps to chandeliers to wall sconces and

everything in between. These well known brands permit Lighting One members to offer their customers

quality products with real value. Even freight costs are negotiated with vendors to be 30 percent to 50

percent less than standard supplier rates.

ADDITIONAL MEMBER BENEFITS ALSO ENHANCE MEMBER SUCCESS AND PROFITABILITY

Lighting One also provides its members with other services and operational efficiencies that cannot be

achieved by an individual store. These range from participation in national green initiatives, savings on

payment processing, web marketing and staff training.

• Part of the Green Select initiative to help promote environmental awareness

• An Energy Star® participant

• An Hispanic marketing guidebook to help members market to this emerging segment of

customers

• Online training modules for a Customer-Centered Selling System

• Access to a professionally-designed electronic catalog featuring all Lighting One branded

products

• Consumer and trade professional financing at special rates

• National Programs help members save on payment processing, shipping, office supplies,

telephone service and many other business expenses

CHARGING AHEAD AT LIGHT SPEED

Lighting One will not rest. With expansion into Canada and new membership in the United States,

Lighting One will provide even greater buying power to its members. In addition to growing its

membership, Lighting One continues to improve and expand its roster of participating vendors. And

weekly communication with the membership allows them to stay a step ahead of competitors. In

summary, Lighting One’s goal is to grow its position in the industry and continue to help members

succeed.

Lighting-One.com

135 showrooms

in 46 states and

Canada

Proud Energy

Star® Partner

Over 2,000

products and

40 exclusive

collections


Leveling the playing field for

specialty bike stores.

TheBikeCooperative.com


31

DIVISION PROFILE

THE BIKE COOPERATIVE

Bicycling is a $5 billion business in the United States. And as more and more people make the leap from

health consciousness to healthy action, the number of cycling devotees grows.

Industry dynamics make it difficult for independent bike retailers to be profitable. The good news is that

The Bike Cooperative® (TBC) levels the playing field for progressive retailers by leveraging economies of

scale with a broad range of service providers.

With TBC behind them, specialty retailers have access to the most innovative cost-saving, marketing and

training programs in the industry — everything they need to run their businesses smarter and easier.

As a result, The Bike Cooperative’s more than 300 independent member stores enhance productivity, seize

opportunities, improve profitability and reach their goals.

SPECIAL TREATMENT FOR SPECIALTY STORES

TBC member retailers enjoy industry-best savings on a broad array of operational needs such as reduced

rates on credit card processing and an industry leading consumer finance program. Members reap the

considerable benefits of TBC partnerships to offer their customers products and services at a level that

their competitors cannot. TBC members receive extra rebate dollars on products purchased through more

than 40 preferred suppliers.

TBC offers a broad range of marketing programs to help retailers build their own unique brands in a

crowded marketplace, including options for national promotions, direct mail, email and social media.

Members use TBC’s Ride Club customer loyalty program to send out customer communications and

rewards uniquely configured for their individual stores. And through the co-op’s ecommerce site,

BikeStoreGuys.com, TBC members can earn incremental dollars that otherwise would have gone to

competing internet-only merchants.

TBC is also helping retailers to increase their margins and profit through the development of private label

parts, accessories and bikes. By working directly with partner suppliers, the co-op can deliver high quality

cycling products to member retailers at a lower cost of goods.

Powerful training programs deliver practical and profitable results, enabling members to raise sales

revenue through better-trained sales staff. Managers and owners profit from direct access to TBC’s store-

management experts.

MULTIPLE INITIATIVES TO BOLSTER GROWTH

The Bike Cooperative’s plans in the coming year include the following:

• Increase exposure and sales through BikeStoreGuys.com

• Add more industry-leading suppliers to the TBC family of strategic vendor partners

• Grow purchase volume through partnerships with preferred suppliers

• Continue to add smart and progressive retailers to its membership

TheBikeCooperative.com

More than 300

stores in 40

states

Exclusive Ride

Club customer

loyalty program


Bringing big profits to small

businesses with a sophisticated

business services marketplace.

BizUnite.com


33

DIVISION PROFILE

BIZUNITE

BizUnite focuses on providing business service programs to independent business owners through

partnerships with cooperatives, associations, and franchises. Access to the business service programs,

through the organizations’ customizable online Marketplace, reduces the members’ daily operational

expenses. BizUnite leverages the buying power of the organizations, in addition to the CCA divisions, to

negotiate discounts that give small businesses an unprecedented competitive advantage.

On average, small to medium sized businesses are saving 20% annually on their bottom line with BizUnite.

These savings allow members to spend less time worrying about business expenses and more time on

customer service and running their businesses efficiently.

REDUCE COSTS AND INCREASE PROFITABILITY

BizUnite offers a portfolio of 25+ programs including: office supplies, operations products, fleet

maintenance, shipping, wireless services, payroll processing, payment processing, financing, uniforms, and

more. The business service programs are specifically designed and rigorously negotiated to help small

businesses reduce costs and increase profitability. BizUnite has over 80 member/organizations that have

more than 2 million businesses as their members, and continues to grow at a rapid pace.

THE FUTURE HOLDS ENDLESS POSSIBLITLITIES

BizUnite looks toward the future of opportunities with the addition of more member/organizations and

the expansion of the preferred vendor partner portfolio. BizUnite is focusing on organizations that have

BizUnite’s buying power, which in turn allows the members to have access to even greater savings.

BizUnite equips small businesses with the programs necessary to reduce the everyday cost of doing

business, allowing them to thrive even in a tough economy.

OUR MEMBERS AND PARTNERS MAKE IT WORK

BizUnite customers are some of the leading associations, cooperatives, franchises, manufacturers and

other member-focused organizations. BizUnite’s powerful network of Preferred Vendor Partners offers

world-class products and services that ensure the success of our customers.

BizUnite.com

2 million +

independent

businesses

benefit from

BizUnite

The average

BizUnite member

saves $10,950

per year with the

business service

programs

BizUnite

leverages the

multi-billion

dollar buying

power and scale

of member

organizations


All the tools a nonprofit needs

to run more efficiently, more

effectively, more successfully.

NonprofitSharedResources.com


35

DIVISION PROFILE

CCA FOR SOCIAL GOOD

Nonprofit leaders are passionate about their missions. However, they sometimes lack the resources to

focus on the business side of their organizations. Alone, they may not have the scale to negotiate

substantial savings on products and services they need.

CCA For Social Good™ continues CCA Global's solid history and track record of helping independent

organizations work together and maintain their independence. The initiative draws on CCA’s existing

infrastructure, helps organizations achieve greater efficiency and effectiveness, and seeks to address the

biggest issue facing small nonprofits — scale.

CCA For Social Good currently offers two web-accessible platforms — a platform for use by any nonprofit,

NonprofitSharedResources.com, and a platform geared specifically toward early childhood education or

child care programs, ECESharedResources.com. Thousands of organizations in seven states are now using

these platforms.

THE NONPROFIT BUSINESS TOOLKIT: A COMBINED EFFORT FOR GREATER SAVINGS

Members of CCA For Social Good can take advantage of powerful proprietary tools, products and services

in integrated password-protected websites that are available to them 24/7.

• COST SAVINGS. Alone, nonprofits often lack the scale to negotiate real savings. Nonprofits

receive substantial discounts on products and services such as office supplies, facilities

management materials, credit card processing and more.

• HUMAN RESOURCES. HR mistakes can be costly and time-consuming. Members gain the

guidance they need to manage HR functions simply, efficiently and affordably.

• BOARD. Best practices, policies, roles, responsibilities, job descriptions, strategies and guides

help nonprofits build strong boards to lead their organizations.

• FINANCE. Processes, policies and forms help nonprofits guard the funds entrusted to them.

• OPERATIONS. Quick access to federal regulation, guidance and resources helps nonprofits

remain in compliance and maintain a safe and healthy workplace.

• MARKETING AND COMMUNICATIONS. Step-by-step guides for developing brand standards,

an elevator speech and press release, tips on creating an annual report, and email marketing

and templates help nonprofits create professional looking materials and expand outreach.

• TRAINING. Engaging, interactive training programs are available 24/7.

• RESOURCES. A plethora of tools, guides, articles and advice from experts across the U.S.

provide the latest news and best practices among nonprofits.

• COMMUNITY. Online networking tools enable professionals to share knowledge, insight and

real world experience.

CCA For Social Good developed these powerful tools and programs with the guidance of nonprofit

experts. In addition to real savings, they offer nonprofits something even more valuable — time put back

in their leaders’ days so they can focus where it counts the most — on their missions.

CCAForSocialGood.com

13 million

non-profit

employees in

the US

1.2 million

non-profits in

the US

360,000

licensed child

care programs

in the US



ALWAYS REMEMBERINGTO GIVE BACK

Good, responsible business is not only about

providing value and quality. It is also about

acknowledging the important role local businesses

play in the communities in which we do business.

CCA Global Partners® acknowledges this role and

makes it a priority to give back to the communities

that are the root of our success.

Through CCA Global’s unique business model, we

have the strength to make a positive impact on

important causes. CCA also supports and

encourages our franchisees, members and licensees

to follow CCA’s lead and support our communities

on a local level.

The Alan Greenberg Charity Golf Tournament

honors CCA’s late co-founder. Since 2003, this

fundraising tradition has raised over $1.2-million for

the Floor Covering Industry Foundation, which

supports those in the floor covering industry who

are in need of assistance due to unforeseen changes

in their lives. Clearly, at CCA Global, giving back in a

significant way is par for the course.

CCA Global is proud to support industry partners,

and deeply committed to supporting causes that

are important to our customers as well as associates.

Breast cancer awareness and research is high on our

list, and CCA has raised more than $825,000 for

those causes in the United States and Canada over

the past seven years. Animals are also near and dear

to CCA Global’s hearts. They have helped animals —

wild and domestic — through partnerships with

organizations such as the Save The Tiger Fund,

American Humane Association, the Canadian

Federation of Humane Societies, the Delta Society

and through the Pets for Patriots program.

CCA Global franchisees, members and licensees

have continued the spirit of giving back with many

local initiatives. Our franchisees, members, licensees,

and employees support children’s sports teams,

local animal shelters, schools and community

organizations through product donations, volunteer

time and financial donations.

From the bottom up and across the board, CCA

Global, along with its franchisees, members and

licensees, continues to demonstrate that there’s no

place like home and no place more deserving of a

helping hand.

SPREADINGTHE WORDABOUT THEBENEFITS OFCOOPERATION

CCA Global Partners® has built its success based on

the core values of cooperative businesses.

Cooperative businesses have a very positive social

and economic impact on local communities.

Business owners that are members of cooperatives

maintain control over how their business is run.

Their interests lie in the communities they do

business in — not in corporate offices far away.

CCA Global Partners has a long history of

supporting local business through our cooperative

model with programs to help independent

businesses succeed. Now we feel we can further

support members of our cooperatives as well as

other cooperatives nationwide by helping to

educate consumers on what cooperative business

means.

SOCIAL RESPONSIBILITY | CHOOSE-A-CO•OP | GREEN SELECT

EXPERTS L

OCAL

T RU S T

W O R T H Y

DEPENDABLE


Using the 2012 International Year of the

Cooperative as a springboard, CCA launched a

movement called Choose A Co-op. The movement

utilizes online and social media to spread the

message to the public about the benefits of

supporting cooperative businesses.

Choose A Co-op is generating excitement

throughout the cooperative business community

and beyond, and CCA will continue to support

efforts to educate consumers on cooperatives

thereby helping to create stronger local business

communities nationwide.

ENCOURAGING ANDHELPING OTHERS TOFOLLOW IN OURECOLOGICALFOOTPRINTS

CCA Global Partners understands our worldwide

impact on the environment, which is why we have

wholeheartedly embraced the “green movement”

through the Green Select program. The Green

Select program was designed to show members,

franchisees and licensees the importance of

championing green products, and to demonstrate

how easy it is to make a difference by “going

green” in everyday operations — reducing waste,

conserving resources and increasing recycling.

For a product to earn classification as Green Select,

there are several criteria that must be met. It must

be recyclable, contain a minimum percentage of

recycled material, or be made from a natural,

sustainable, quickly renewable resource. The

definitions, criteria and green products will be

constantly evaluated and updated based on

industry changes and technological advances. CCA

is steadfast in our mission: to better our

environment by our own actions and through our

relationships with our member community,

suppliers and employees.

CCA is following through on this commitment by

educating employees and members on the

importance of implementing Green Select

standards. We also strongly encourage

partnerships and employee volunteerism with

environmentally-focused nonprofit organizations.

As part of this deep obligation to “greening” our

industry and our world, CCA Global pledges to:

• Seek ways to expand our exclusive line

of Green Select products.

• Model a commitment to examine all

our business and procurement

practices and to acquire and use

resources as respectfully and

thoughtfully as possible.

• Guide our member community to help

them operate their businesses in an

environmentally-responsible manner.

• Partner with our suppliers to help

them continue to provide the highest

quality and value, with enhanced

environmental responsibility.

• Mentor our employees and member

community, and provide educational

resources to help them make

environmentally-conscious decisions.

SOCIAL RESPONSIBILITY | CHOOSE-A-CO•OP | GREEN SELECT



Howard Brodsky

Co-Founder, Chairman and

Co-Chief Executive Officer

CCA Global Partners

Rick Bennet

Co-Chief Executive Officer

CCA Global Partners

Charlie Dilks

Chief Product Officer

CCA Global Partners

Bob Wilson

Chief Administrative Officer

CCA Global Partners

Jim Acker

Chief Financial Officer

CCA Global Partners

Steve Pigman

President

Strategic Partners Group

Eric Demaree

President

Carpet One Floor & Home

Scott Wheeler

Chief Operating Officer


Keith Spano

President

Flooring America

Jim Duff

President

Flooring Canada

David Kraeling

President

ProSource

Eric Bernstein

Chief Operating Officer

ProSource

David Gheesling

Chief Executive Officer

FEI Group

Jay Smith

President

FEI Group

Andrew Shulklapper

President

The Floor Trader/Stone

Mountain/GCO

Krista Eliason

President

International Design Guild

Gregg Garofalo

Senior Vice President

Lighting One

Greg Brodsky

Vice President

The Bike Cooperative

Barth Getto

Co-President

BizUnite

Paul Turner

Co-President

BizUnite

Laurie Cochran

Vice President - Nonprofits

CCA For Social Good

EXECUTIVE LEADERSHIP


CCA Global Partners

4301 Earth City Expressway

St. Louis, MO 63045

T) 800.466.6984

670 N. Commercial Street

Manchester, NH 03101

T) 800.450.7595


U.S.


St. Louis, MO 63045

T) 800.466.6984



T) 800.450.7595


Canada

3170 Harvester Road, Suite 101

Burlington, ON L7N 3W8

T) 800.466.6984


Australia and New Zealand

8 Ives Street, Unit 3

Murarrie QLD, 4172

Australia

T) 001.617.3725.8600

Flooring America



T) 800.450.7595

Flooring Canada

200 G-1215 Henderson Highway,

Winnepeg, Manitoba R2G 1L8

T) 800.208.2629

ProSource


St. Louis, MO 63045

T) 800.466.6984

FEI Group

811 Livingston Court

Marietta, GA 30067

T) 800.886.9998

The Floor Trader/Stone

Mountain/GCO


St. Louis, MO 63045

T) 800.466.6984

International Design Guild



T) 800.450.7595

Lighting One


St. Louis, MO 63045

T) 800.466.6984

BizUnite



T) 866.623.5784

F) 603.628.2374

The Bike Cooperative



T) 800.450.7595

CCA for Social Good



T) 800.450.7595

CORPORATE OFFICESENRICHING THE LIVES OFENTREPRENEURS


CCA GLOBAL PARTNERS TERMS AND CONDITIONS

CCA Global Partners, Inc. (CCA Global), owns or is affiliated with the companies described more fully within this Annual Review. For

purposes of the Annual Review, each of these companies is referred to as an “affiliated company.” Collectively, these companies are referred

to as “affiliated companies.”

Either CCA Global or its affiliated companies have relationships with independently-owned and operated stores. Each store is a member of

CCA Global, a member of a cooperative managed by an affiliated company, a licensee of an affiliated company, or a franchisee of a

franchisor that is an affiliated company.

For purposes of the Annual Review, “participant” or “participating stores” refers to each independently-owned and operated store, based on

its legal status as a member, licensee or franchisee, even if the reference in the Annual Review does not distinguish among these different

legal statuses.

The Annual Review may contain forward-looking statements. Past performance is not a guarantee of future results. Actual results may

differ materially from past results or results discussed herein due to causes including, but not limited to, changes in general economic

trends, changes in local market conditions and competitive factors.

MEETING NEW CHALLENGES AND

CAPITALIZING ON OPPORTUNITY.

FUELED BY THOUSANDS

OF STRONG LOCALFAMILY BUSINESSESCCA GLOBAL PARTNERS:


CCA Global Partners | 800.466.6984 | CCAGlobalPartners.com

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