CEO Message - June 15 Update

I hope that each of you and your families continue to be healthy and remain diligent with the pandemic safety protocols. We cannot give up on physical distancing, masks when you cannot maintain 6 feet distancing, rigorous hand hygiene, and self-isolation for the protection of others if you experience any virus symptoms. The virus has not changed, and even though we are tired of all this, it is no reason to increase personal risk. We are very fortunate to have only 9 Partners who have tested positive, but one of us is very sick. Please keep this family in your prayers, as well as all of our frontline medical workers. Remember that TDCares is here to help Partners without paid personal time, who get sick or have to self-quarantine to avoid the risk of infecting others. See your supervisor or HR Business Partner for assistance.

Our detailed plans to reenter our densely occupied indoor office environments are ready and are being executed. However, we may delay the targeted July 6^th return date for 25% occupancy if community spread continues to increase in the cities where we have offices. While video conferences are getting very old, and I miss seeing everyone in person, we will remain vigilant and flexible as we continue to adapt to our new normal. 

We are very fortunate that TD remains slightly profitable through May at 1.9% operating income thanks to our hard work, but we have seen more jobs delayed, especially in Dallas. We are asking many Dallas Partners to travel to Arizona for work over the next several months. Many hospitals have postponed their much-needed big construction until their cash flow improves from normal operations, and speculative developers are very cautious for the near term. Prospects are still very good long term, but we need the economy to continue its restart in order to keep our construction backlog up. Dallas, Houston, and Arizona service teams, as well as our facilities businesses continue to solidly contribute to operating income. We are closely managing cash to accommodate ongoing business needs in the face of uncertainty, as well as allowing our retiring owners to sell their ESOP shares in a timely manner. We have been working hard on a new ESOP distribution policy and we will share the details this week. 

I am learning a lot from reading "White Fragility: Why It's so Hard for White People to Talk About Racism." Some things I did not know about myself but also many things I did not know about the dark history of racial inequities in our country. I have asked our executive leadership team that reports to me to read or listen to the book. We have begun regular deep conversations about race to learn from each other. It is not easy and there have been emotional moments. I invite you to join us and read to learn. TD will pay for your copy of the book, kindle or audiobook if you self-certify through our LMS.  We are also working on a model for book study dialogue groups that will be required for leaders and open to all Partners. So let’s all keep listening to each other, and work to be a part of positive change, and get some learning credit.

All of you are in my daily prayers for safety and good health. TD will continue to thrive by the strength of our collective Partnership and support for each other. Please continue to "Live by Faith and Not by Fear." Thank you for all that you do to listen and learn from each other as we work to stop racial injustice. Our Partnership and Spirit of Inclusion will serve us well in continuing to be an industry and community leader for positive change.

Stay Safe. #TDStrong!

Sincerely,
Harold

- If you want to learn more, go to Michael. C. Bush, CEO of Great Place to Work® blog on Racism is a 400 Year Old Virus.