Page 2 - Full Q1 Financial Report 2021

Office:
(508)-681-8401
P.O. Box 246
Cotuit, MA 02635
Production Facility:
Owensboro, KY 42301

Dear Members of the Board of Directors,
I am pleased to inform you that the financial results of Q1 2021 were the best in the history of Green
Mountain Firewood Company (GMF).

As detailed in the accompanying financials, GMF recorded a net profit of $439,708.32 resulting from
gross sales revenue of $1,112,912.26.

While nearly 85% of GMF’s sales were derived from Home Depot, adherence to GMF’s focused sales
plan and product positioning expanded GMF’s client base to Dollar General, Christmas Tree Shops,
Tractor Supply, Orschelin, and Lowes.

As we enter the Spring season, GMF already has completed its plant capacity expansion and automation
report. The company will expand the manufacturing space of its plant in Owensboro, KY nearly 250%
from 550 pallets of product to approximately 2,000 pallets monthly. GMF also will double its
warehousing capacity.
Another benefit of GMF’s plant expansion will be the automation of the majority of its manufacturing
process which will reduce labor cost nearly 40%, increase production efficiency, and reduce COGS 30%-
35%.
While many businesses have been impaired by the onset of Covid-19, GMF is experiencing a perfect
storm.

Consumer culture has changed due to Covid-19. People are staying home more often. Millions of
Americans have been investing in home leisure, entertainment, and lifestyle. GMF is a beneficiary of
these positive trends as the purchase of firewood has soared – especially across Midwest, Mideast,
Southeast, and Gulf South markets.

We cannot produce GMF logs fast enough to satisfy retail demand. Given the continued growth of the
retail firewood sector and a growing consumer demand for environmentally compliant firewood
products, we expect we will not be able to keep pace with retail client demand for our products even
after we have commissioned our expanded plant infrastructure.

We thank you for your ongoing commitment to GMF.
Sincerely,

Edmund J. Connolly, III
President & CEO

www.greenmountainfirewood.com
Green Mountain Firewood - 2021