Magnolia

MAGNOLIA

Star Herald's "Bottom Line"

October 2002

Doug Fillingham, one of the owners of Magnolia Homes in Gering, said the secret behind the company's success is that he and his father, John, along with Roger Phillips, take a small town approach to doing business. He said previous owners failed by wanting the company to be publicly held, and they have a "Mom and Pop" approach, which is why Magnolia is a $20 million company.

Fillingham admits there were times when he and the other owners weren't sure if the company would survive.

It originally began in Scottsbluff in the late 1950's and was located where Heilbrun's NAPA currently operates. In 1971, the company moved to the industrial park area of Gering. Fillingham and his father joined the company in 1988, although Phillips and the elder Fillingham had worked and known each other since 1961.

All three had ties to the Valley, as Doug was born in Scottsbluff, and the other two were from and educated in the Valley.

"It was a homecoming of sorts you could say," said Fillingham.

Financial problems seemed to plague the company's various owners until last year when American Home Star, Inc. filed for bankruptcy and planned to reorganize.

Fillingham said the three managers approached Hod Kosman and Platte Valley National Bank to see if it would be possible for the three to buy the company. Through a bank loan, LB 840 funds, and NSBA assistance, a dream came true for the group.

The company employs 186 full-time employees and builds approximately 350-400 modular homes a year, which averages out to 8 homes a week.

The floor of the construction area resembles that of an ant hill, as each member of the team does his or her job, with an assembly line approach.

Fillingham said the company primarily sells homes to residents of Nebraska , Colorado , and Wyoming , with the Front Range of Colorado being the largest market.

"Business is good, considering the economy. We've been really fortunate," said Fillingham. "We do what we know how to do well."

The company offers seven different types of homes, with ten varying floor plans. They will also custom-build a home for those wanting to add a personal touch.

"We've even started with designs drawn on a bar napkin," added Fillingham.

The regulations followed by the company are managed by the state, and homes are built to the same code as stick builders must comply to.

"We build alternative housing, and we want to keep people employed with a good job in the Panhandle," said Fillingham.

Although the Front Range is the largest market, the largest volume retailer is Brannan's Homes LTD in Scottsbluff.

F.F.&P. Mobile Modular Technologies aka

Guerdon Magnolia American Homestar

Star Herald

March 7, 2001

Under an agreement worked out through the City of Scottsbluff and Platte Valley National Bank, American Homestar in Gering will be obtaining $500,000 in LB 840 funding.

F.F.&P. Mobile Modular Technologies (Guerdon Magnolia American Homestar) will be receiving $500,000 up front through a loan secured by the City from Platte Valley, according to City Manager, Rick Kuckkahn.

Kuckkahn said the plan is effective for the City to allow the money to be paid back over 10 years and for Homestar to obtain its financing quickly.

He said the City cannot loan money to a company through LB 840. For that reason, the deal was struck with Platte Valley . Kuckkahn said the agreement also leaves the City with flexibility with its remaining LB 840 funding in the event that another company came in with a request.

Since Homestar is located in Gering, Kuckkahn said the amount financed was smaller than a Scottsbluff company would have received. Homestar has about 100 Scottsbluff residents employed, and Kuckkahn said generally the City would grant $500 per employee.

Under the agreement, Homestar is required to maintain an average of 175 employees.

In addition, Kuckkahn said the City will be able to receive money from its outstanding commitment back, should the company fail within the 10 years. In that event, the City would be in line to take over the company's assets.