Company News
November 23, 2020
Mr. Stanley F. Pauley
Press Release: November 23, 2020 Richmond, VA.

It is with great sadness that Carpenter Co. announces that
Stanley F. Pauley has passed away at the age of 93. Until
several weeks ago, he had remained engaged in the daily
activities of the company he had led for more than 40 years.
“The term visionary is often over used, but in the case of Stan,
it would be a completely accurate description” said Brad Beauchamp President & C.E.O. “He was one of the true giants in our industry who saw polyurethanes grow from its
infancy into the premier material choice for comfort and insulation applications.”
Stan was hired by E. Rhodes Carpenter in 1954 and moved from Canada to Richmond, Virginia. At that time, Carpenter was making seating cushions out of latex foam. In the early 1960s, with Mr. Carpenter’s blessing, Stan and a small group of executives made the decision to switch to manufacturing urethane foam, which at that time involved making a prepolymer and molding foam. Shortly thereafter, Union Carbide helped Carpenter implement the one-shot process which forms the basis of how most urethane foams are made today. Throughout the ensuing decades, the company embarked on an expansion strategy that initially focused on North America but eventually included acquisitions in Europe. The expansions were largely directed by Mr. Pauley. In addition to increasing the flexible urethane foam production footprint, in 1970 Carpenter Co. broke with convention and opened a greenfield site for the production of polyether polyols. Upon the death of Mr. Carpenter in the early 1980’s, Stan became Chairman & CEO and the majority shareholder. The company continues to be owned by the Pauley family.
Today Carpenter is one of the largest manufacturers of flexible foam in the world and is one of the largest producers of polyether polyols in North America, which not only supplies Carpenter but is a major raw material supplier to other segments of the urethane industry. Carpenter has 17 foam pouring plants as well as 25 other locations and over 4,200 employees.
It is also a leader in rebonded foam for carpet underlay as well as Chemical Systems, Tire Fill, Polyester Fiber and Expanded Polystyrene. In addition to his numerous industry recognitions, he supported a variety of educational and philanthropic institutions including the VCU Health Pauley Heart Center, the VCU School of Engineering, Hampden-Sydney College, the University of Manitoba and the Virginia Museum of Fine Arts.
“It was his vision that Carpenter Co. should remain an independent privately held company because that was the best way to ensure clear decision making and strategic focus. He believed in investing in equipment and training. With his passing, it will fall upon the rest of us to ensure
that the company remains true to that vision. We are fortunate that he had the foresight to structure the company in a way that will help keep that a reality.”
November 23, 2020
Mr. Stanley F. Pauley
Press Release: November 23, 2020 Richmond, VA.

It is with great sadness that Carpenter Co. announces that
Stanley F. Pauley has passed away at the age of 93. Until
several weeks ago, he had remained engaged in the daily
activities of the company he had led for more than 40 years.
“The term visionary is often over used, but in the case of Stan,
it would be a completely accurate description” said Brad Beauchamp President & C.E.O. “He was one of the true giants in our industry who saw polyurethanes grow from its
infancy into the premier material choice for comfort and insulation applications.”
Stan was hired by E. Rhodes Carpenter in 1954 and moved from Canada to Richmond, Virginia. At that time, Carpenter was making seating cushions out of latex foam. In the early 1960s, with Mr. Carpenter’s blessing, Stan and a small group of executives made the decision to switch to manufacturing urethane foam, which at that time involved making a prepolymer and molding foam. Shortly thereafter, Union Carbide helped Carpenter implement the one-shot process which forms the basis of how most urethane foams are made today. Throughout the ensuing decades, the company embarked on an expansion strategy that initially focused on North America but eventually included acquisitions in Europe. The expansions were largely directed by Mr. Pauley. In addition to increasing the flexible urethane foam production footprint, in 1970 Carpenter Co. broke with convention and opened a greenfield site for the production of polyether polyols. Upon the death of Mr. Carpenter in the early 1980’s, Stan became Chairman & CEO and the majority shareholder. The company continues to be owned by the Pauley family.
Today Carpenter is one of the largest manufacturers of flexible foam in the world and is one of the largest producers of polyether polyols in North America, which not only supplies Carpenter but is a major raw material supplier to other segments of the urethane industry. Carpenter has 17 foam pouring plants as well as 25 other locations and over 4,200 employees.
It is also a leader in rebonded foam for carpet underlay as well as Chemical Systems, Tire Fill, Polyester Fiber and Expanded Polystyrene. In addition to his numerous industry recognitions, he supported a variety of educational and philanthropic institutions including the VCU Health Pauley Heart Center, the VCU School of Engineering, Hampden-Sydney College, the University of Manitoba and the Virginia Museum of Fine Arts.
“It was his vision that Carpenter Co. should remain an independent privately held company because that was the best way to ensure clear decision making and strategic focus. He believed in investing in equipment and training. With his passing, it will fall upon the rest of us to ensure
that the company remains true to that vision. We are fortunate that he had the foresight to structure the company in a way that will help keep that a reality.”
November 16, 2020
Grenfell Investigations
Grenfell inquiry: Ex-employee describes ‘dishonest’ acts at firm that made flammable insulation used on tower
The ex-Celotex assistant product manager told the inquiry the firm had been dishonest when testing its Rs5000 insulation product.
By Aisha Zahid, news reporter
Monday 16 November 2020 20:05, UK

A former employee of the company that produced flammable insulation used on Grenfell Tower says he complied with “completely unethical” acts, the inquiry into the June 2017 disaster has heard.
Jonathan Roper, the ex-assistant product manager at Celotex, told proceedings the firm had been “dishonest” by “overengineering” a cladding fire safety test to enable its Rs5000 insulation product to pass.
After an initial test failure in January 2014, a second system passed in May 2014 – this was used to incorrectly market the combustible rigid foam boards as safe for use on high-rise buildings, the inquiry heard.
Celotex added a 6mm fire-resisting magnesium oxide board to a cladding test rig consisting of 12mm fibre cement panels for the second test, the hearing was told.
The inquiry heard 8mm fibre cement panels were added to “conceal” the presence of the magnesium oxide, making the whole system almost flush – but for the 2mm difference.
Mr Roper agreed with the inquiry’s chief lawyer Richard Millett QC that using “a thinner layer was to make it less noticeable there was something else behind it”, which would help “see off any prospect of anyone asking questions”, about how it had been made up.
Mr Roper answered “yes it did”, when Mr Millett had asked him the question: “Did that not strike you at the time as dishonest?”
Mr Roper also said: “I went along with a lot of actions at Celotex that, looking back on reflection, were completely unethical and that I probably didn’t potentially consider the impact of at the time.
“I was 22 or 23, first job, I thought this was standard practice albeit it did sit very uncomfortably with me.”

Mr Roper added that his superiors ordered the mention of magnesium oxide to be removed from any marketing, which he agreed was “misleading and intended to mislead”.
Mr Millett also asked: “Did you realise at the time that if this was how the test was to be described to the market it would be a fraud on the market?”
Mr Roper responded by saying: “Yes I did. I felt incredibly uncomfortable with it. I felt incredibly uncomfortable with what I was asked to do.”
He added that he could not voice his concerns to anyone else in the firm at the time.
Mr Roper also told the inquiry that the motivation for getting the Rs5000 product to market was to compete with a rival firm.
Celotex has released a statement, saying: “In the course of investigations carried out by Celotex after the Grenfell Tower fire, certain issues emerged concerning the testing, certification and marketing of Celotex’s products which were previously unknown to Celotex’s current management.”
It added: “Once established, they were promptly and publicly announced by notices on Celotex’s website and reported to the relevant testing and certification bodies, the Ministry of Housing, Communities and Local Government, Trading Standards, the Metropolitan Police and the Inquiry.
“These matters involved unacceptable conduct on the part of a number of employees. They should not have happened and Celotex has taken concerted steps to ensure that no such issues reoccur.
“Celotex is committed to cooperating fully with the Grenfell Tower Inquiry and related investigations, continuing to support the UK Government’s ongoing response to the tragedy.”
The company, part of the French multinational Saint-Gobain group, maintains that it promoted the use of Rs5000 on buildings higher than 18 metres only on a “rainscreen cladding system with the specific components”, used when it passed the fire safety test.
In its opening statement for module two of the inquiry, the firm said: “In the course of investigations carried out by Celotex after the Grenfell Tower fire, certain issues emerged concerning the testing, certification and marketing of Celotex’s products.
“These matters involved unacceptable conduct on the part of a number of employees.”
Module two of the inquiry will scrutinise the production, testing and sale of materials used in the tower’s refurbishment which saw 72 people killed in the 14 June 2017 fire.
November 16, 2020
Grenfell Investigations
Grenfell inquiry: Ex-employee describes ‘dishonest’ acts at firm that made flammable insulation used on tower
The ex-Celotex assistant product manager told the inquiry the firm had been dishonest when testing its Rs5000 insulation product.
By Aisha Zahid, news reporter
Monday 16 November 2020 20:05, UK

A former employee of the company that produced flammable insulation used on Grenfell Tower says he complied with “completely unethical” acts, the inquiry into the June 2017 disaster has heard.
Jonathan Roper, the ex-assistant product manager at Celotex, told proceedings the firm had been “dishonest” by “overengineering” a cladding fire safety test to enable its Rs5000 insulation product to pass.
After an initial test failure in January 2014, a second system passed in May 2014 – this was used to incorrectly market the combustible rigid foam boards as safe for use on high-rise buildings, the inquiry heard.
Celotex added a 6mm fire-resisting magnesium oxide board to a cladding test rig consisting of 12mm fibre cement panels for the second test, the hearing was told.
The inquiry heard 8mm fibre cement panels were added to “conceal” the presence of the magnesium oxide, making the whole system almost flush – but for the 2mm difference.
Mr Roper agreed with the inquiry’s chief lawyer Richard Millett QC that using “a thinner layer was to make it less noticeable there was something else behind it”, which would help “see off any prospect of anyone asking questions”, about how it had been made up.
Mr Roper answered “yes it did”, when Mr Millett had asked him the question: “Did that not strike you at the time as dishonest?”
Mr Roper also said: “I went along with a lot of actions at Celotex that, looking back on reflection, were completely unethical and that I probably didn’t potentially consider the impact of at the time.
“I was 22 or 23, first job, I thought this was standard practice albeit it did sit very uncomfortably with me.”

Mr Roper added that his superiors ordered the mention of magnesium oxide to be removed from any marketing, which he agreed was “misleading and intended to mislead”.
Mr Millett also asked: “Did you realise at the time that if this was how the test was to be described to the market it would be a fraud on the market?”
Mr Roper responded by saying: “Yes I did. I felt incredibly uncomfortable with it. I felt incredibly uncomfortable with what I was asked to do.”
He added that he could not voice his concerns to anyone else in the firm at the time.
Mr Roper also told the inquiry that the motivation for getting the Rs5000 product to market was to compete with a rival firm.
Celotex has released a statement, saying: “In the course of investigations carried out by Celotex after the Grenfell Tower fire, certain issues emerged concerning the testing, certification and marketing of Celotex’s products which were previously unknown to Celotex’s current management.”
It added: “Once established, they were promptly and publicly announced by notices on Celotex’s website and reported to the relevant testing and certification bodies, the Ministry of Housing, Communities and Local Government, Trading Standards, the Metropolitan Police and the Inquiry.
“These matters involved unacceptable conduct on the part of a number of employees. They should not have happened and Celotex has taken concerted steps to ensure that no such issues reoccur.
“Celotex is committed to cooperating fully with the Grenfell Tower Inquiry and related investigations, continuing to support the UK Government’s ongoing response to the tragedy.”
The company, part of the French multinational Saint-Gobain group, maintains that it promoted the use of Rs5000 on buildings higher than 18 metres only on a “rainscreen cladding system with the specific components”, used when it passed the fire safety test.
In its opening statement for module two of the inquiry, the firm said: “In the course of investigations carried out by Celotex after the Grenfell Tower fire, certain issues emerged concerning the testing, certification and marketing of Celotex’s products.
“These matters involved unacceptable conduct on the part of a number of employees.”
Module two of the inquiry will scrutinise the production, testing and sale of materials used in the tower’s refurbishment which saw 72 people killed in the 14 June 2017 fire.
November 16, 2020
Casper Quarterly Results
Casper Reports Third Quarter 2020 Results
Mon November 16, 2020 6:30 AM|Business Wire|About: CSPR
COVID-19 and Supply Chain Impacted Third Quarter 2020 Revenue of $123.5 million
Continued Strength in Retail Partnership Channel, up 28% YoY
Gross Margins of 55.5%, up 480 basis points YoY
NEW YORK–(BUSINESS WIRE)– Casper Sleep Inc. (CSPR) (“Casper” or the “Company”) (NYSE: CSPR) today announced financial results for the quarter ended September 30, 2020 (the “third quarter 2020” or “third quarter”).
Third Quarter 2020 Financial Highlights (as compared to the quarter ended September 30, 2019)
- Revenue decreased 3.3% to $123.5 million;
- North America revenue increased $2.2 million or 1.8%;
- European revenue was negligible due to the closure of our European operations in the second quarter of 2020, compared to approximately $6 million in the quarter ended September 30, 2019;
- Direct-to-Consumer Revenue decreased 11.4% to $89.9 million;
- Retail Partnership Revenue increased 28.3% to $33.6 million;
- Gross Profit increased 5.9% to $68.5 million with gross margin of 55.5%, up 480 basis points;
- Net Loss improved $7.2 million or 31.1% to $15.9 million;
- Adjusted EBITDA loss improved by $9.3 million or 55% to $7.5 million; and
- Cash and cash equivalents of $96.1 million at quarter end.
Philip Krim, Chief Executive Officer, comments: “Casper’s third quarter was highly productive but unfortunately we believe the results don’t fully reflect the health and potential of our business. We saw record interest for our products evidenced by record website traffic, continued to drive gross margin expansion and progress towards profitability, and had another sequential quarter of growth; however, our top-line growth was disappointing based on the initial demand signals. Challenges in our supply chain, including industry-wide shortages in textiles and chemicals critical to foam production, led to significant out-of-stock inventory both in our direct-to-consumer and retail partnership channels. Many of our core mattresses were out of stock on our website for weeks at time and we were unable to monetize the full demand from retail partners leading to cancelled orders.
We have made significant progress addressing some of our supply chain challenges. Specifically, we have on-boarded new Tier 1 and Tier 2 suppliers and vendors; we are putting in place redundancies across key supply chain points and implementing improved inventory planning; and we are actively building up our safety stock which will help protect against further disruptions. We believe the worst of our supply chain disruptions are behind us, and we are well-positioned going forward.”
Mr. Krim continued: “We are actively managing the business to best position Casper for the future and are excited about the many opportunities in front of us to enhance shareholder value as we continue to leverage our leading brand and scale our multi-channel distribution. Our organization is focused on long-term, sustainable growth and we believe our expanded distribution, current growing product offering and pipeline, strong brand awareness, refined marketing expertise and healthy balance sheet position us well to achieve our goal of sustainable Adjusted EBITDA profitability starting in mid-2021.”
https://seekingalpha.com/pr/18086377-casper-reports-third-quarter-2020-results