The Company designs and manufactures accessories for the automotive, motorcycle and marine aftermarkets. Sales channels include national retail chains, e-commerce sites, mail order retailers, and various specialty and industrial wholesalers. The Company typically serves 220 accounts and has a high rate of repeat business; no single customer represents more than 10% of annual sales. Most products are exclusively designed and branded by the Company, and many high-margin items are patented. Production largely is outsourced to a network of 20 longtime contract manufacturers.
A well-recognized brand and creatively designed packaging make the Company’s products particularly appealing to retailers and their customers. Packaging features QR barcodes that deliver product information and demos online when scanned by any mobile device.
The Company is multi-discipline engineering firm serving blue-chip clients in diverse industries. Capabilities include electrical engineering solutions, mechanical engineering, structural, combustion systems, instrumentation, and custom panel design and fabrication. In addition, the Company is a leader in designing and engineering safe systems for a variety of applications. The Company serves about 100 active clients at any given point in time and maintains blanket purchase order contracts with most of its key clients that are renewed every three years.
There is an influx of business coming from the metals and energy industries, among others. Over 15 new employees were added recently to accommodate growing business volume. Adjusted EBITDA is forecast to more than double in 2018, as costs begin to stabilize and revenues rise 16.8% over 2017.
The Company is the only privately-held supplier of e-cigarettes and vaping products among the top 10 brands in the U.S. The brand offers consumers a simple and satisfying, value-based alternative to competing e-cigarettes. The Company’s success is driven in part by its focus on its high quality products at a value price point to core Tobacco users. The brand’s ability to compete on price and product performance has fueled its C-store leadership position in volume-per-location as compared with competitors.
Revenue is on track to increase 19% in 2018 and expected to grow 54% in 2019 due to enthusiastic consumer response to the Company’s new product line launched in June of this year. As of July 2018, demand for the new product line has outpaced its supply in the limited markets where it was made available for retail sale. Management expects 25,000 units of these new products will be sold in 2018.
The Company produces precision components for a variety of end-products including medical equipment and diagnostic devices, filtration and fire suppression systems for aerospace, firearm components, fiber optic tools, and many others. The Company is well-positioned to grow its medical device business even further.
The Company serves regional and global manufacturers across the U.S. with capabilities ranging from prototyping to production, CNC milling, CNC turning, CNC swiss turning, fabrication and assembly. Management has focused on building a first-class business structure to facilitate growth and manufacture superior-quality products. Over the life of the Company, management has continually invested in new machinery and equipment upgrades to meet growing demand, in addition to developing new services and adding capabilities.
The Company operates with 44 employees from a 50,000-square-foot, state-of-the-art facility. There is about 8,000 square feet available in which to add new equipment and capacity in personnel and infrastructure. The principals, who all have operational responsibilities, as well as the Company’s senior management team, are prepared to work with a new owner to grow the business to its full potential.
The Company has built a respected service-delivery ecosystem and a roster of marquis customers. In addition to storing and transporting sets for productions, the Company builds sets, props and stages, and delivers them anywhere they are needed. The top 10 customers have been active for an average of 10 years, and there is a well-diversified customer base with no concentration.
With decades of experience in the entertainment industry delivering time-sensitive projects within high-pressure environments, the Company is able to retain repeat customers such as Disney, NBC Universal, ABC, Nickelodeon and Activision. Management believes there is no trucking or storage company that has the size, ability or capacity to accommodate the size and sheer volume of projects that the Company regularly handles.
The Company has only begun to realize its potential to become the dominant player in a growing industry. By leveraging its unique set of capabilities in producing and managing large amounts of theatrical assets, the Company could increase its reach geographically as well as into gaming, theme parks and corporate TV and commercials.