There are five IPOs on deck for this week. They include: Aegean Marine Petroleum Network (NYSE:ANW), which supplies refined marine fuel and lubricants to ships in port and at sea; Allegiant Travel Company (NASDAQ:ALGT), a low-cost passenger airline serving leisure travelers in small cities; Heelys (NASDAQ:HLYS), inventor and marketer of HEELYS-branded wheeled footwear; Penn Virginia GP Holdings (PVG), a limited partnership with interests in coal properties and the processing of natural gas; WSB Financial Group (WSFG) A Washington-based bank holding company.
All quotations are from the companies' most recent S-1 filings with links provided from each company.
AEGEAN MARINE PETROLEUM NETWORK (ANW)
Business Overview (from prospectus)
We are an independent physical supplier and marketer of refined marine fuel and lubricants to ships in port and at sea. As a physical supplier, we purchase marine fuel from refineries, major oil producers and other sources and resell and deliver these fuels in bunkering tankers to a broad base of end users. With service centers in Greece, Gibraltar, the United Arab Emirates and Jamaica, we believe that we are one of a limited number of independent physical suppliers that owns and operates a fleet of bunkering tankers in multiple jurisdictions. We presently own a fleet of seven double hull and two single hull bunkering tankers with an average carrying capacity of approximately 4,700 dwt. We provide fueling services to virtually all types of ocean-going vessels and many types of coastal vessels, such as oil tankers, container ships, drybulk carriers, cruise ships, naval vessels and ferries. Our customers include a diverse group of ocean-going and coastal ship operators and marine fuel traders, brokers and other users, including the United States Navy.
Offering: 12.5 million shares at $12-14 per share. Net proceeds are expected to come in at $137.5 million ($158.4 million if the underwriter option is exercised). $45.0 million of the net proceeds will be used to purchase secondhand bunkering tankers and approximately $76.4 million will be used to repay outstanding debt. The remainder will be used for general corporate purposes.
Lead Underwriters: Bear Stearns, Johnson Rice, Simmons & Company
The volume of marine fuel that we have sold has grown from approximately 1.0 million metric tons in the fiscal year ended December 31, 2002 to 1.7 million metric tons in the fiscal year ended December 31, 2005. During the same period, our gross spread on marine petroleum products has grown from $8.2 million to $40.8 million and our operating income has grown from $0.8 million to $23.4 million. For the six months ended June 30, 2006, we sold 1.1 million metric tons of marine fuel, generated gross spread on marine petroleum products of $25.8 million and operating income of $12.7 million, as compared to 0.7 million metric tons, $16.2 million and $9.4 million, respectively, for the six months ended June 30, 2005.
We are a leisure travel company focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Nevada and Orlando, Florida. We operate a low-cost passenger airline marketed to leisure travelers in small cities, allowing us to sell air travel both on a stand-alone basis or bundled with hotel rooms, rental cars and other travel related services. Our route network, pricing philosophy, advertising and diversified product offering built around relationships with premier leisure companies are all intended to appeal to leisure travelers and make it attractive for them to purchase air travel and related services from us.
Offering: 5 million shares at $15-17 per share. The expected net proceeds of $73 million will be used to pay back secured debt to CEO, the purchase of additional aircraft "consistent with our growth strategy and acquisition criteria" and general corporate purposes.
Lead Underwriters: Merrill Lynch, Bear Stearns, Raymond James
Our business model has allowed us to grow rapidly and to achieve attractive rates of profitability, even during the present climate of high fuel costs. For the year ended December 31, 2005, we had revenue of $132.5 million, representing substantial growth of 46.6% over the year ended December 31, 2004, while maintaining an operating margin of 6.4% which was higher than the U.S. legacy carriers and U.S. low-cost carriers other than Southwest Airlines Co. We had operating income of $6.1 million
in 2004 and $8.5 million in 2005. Our net income was $9.1 million in 2004 and $7.3 million in 2005, the decline attributable to a substantially higher gain on fuel derivatives in 2004. In the first nine months of 2006, we had revenue of $180.2 million, operating income of $15.2 million and net income of $10.3 million, which was 94.9%, 134.3% and 33.7% higher than the first nine months of 2005, respectively.
We are a designer, marketer and distributor of innovative, action sports-inspired products under the HEELYS brand targeted to the youth market. Our primary product, HEELYS-wheeled footwear, is patented, dual-purpose footwear that incorporates a stealth, removable wheel in the heel. HEELYS-wheeled footwear allows the user to seamlessly transition from walking or running to skating by shifting weight to the heel. Users can transform HEELYS-wheeled footwear into street footwear by removing the wheel. We believe that the growing exposure of our brand will allow us to selectively introduce additional product categories by taking advantage of our expertise in product development and sourcing, strong retail relationships and knowledge of our target consumer.
Offering: 3.1 million shares at $16-18 per share. Net proceeds of approximately $47.4 million will be used pay debt and improve company infrastructure.
Lead Underwriter: Bear Stearns, Wachovia Securities
In 2005, our net sales increased $22.6 million, or 106.3%, to $44.0 million from $21.3 million in 2004. For the nine months ended September 30, 2006, our net sales increased $88.1 million, or 303.1%, to $117.1 million from $29.1 million for the nine months ended September 30, 2005.
PENN VIRGINIA GP HOLDINGS (PVG)
Business Overview (from prospectus)
We are a Delaware limited partnership formed in June 2006 that currently owns three types of equity interests in Penn Virginia Resource Partners, L.P. (NYSE: PVR), a publicly traded Delaware limited partnership that is principally engaged in the management of coal properties and the gathering and processing of natural gas. Our only cash generating assets consist of our partnership interests in PVR, which, upon completion of this offering of our common units, will initially consist of the following:
• a 2.0% general partner interest in PVR, which we hold through our 100% ownership interest in Penn Virginia Resource GP, LLC, PVR’s general partner; • all of the incentive distribution rights in PVR, which we hold through our 100% ownership interest in Penn Virginia Resource GP, LLC; and •19,283,506 units of PVR, consisting of 15,541,738 common units and 3,741,768 Class B units of PVR, representing an aggregate 41.3% limited partner interest in PVR. We will purchase 416,444 common units and all of the Class B units from PVR using substantially all of the net proceeds of this offering. See “Use of Proceeds.” For a description of the terms of the Class B units, please read “Material Provisions of the Partnership Agreement of Penn Virginia Resource Partners, L.P.—Class B Units.”
Offering: 6.3 million at $18-20 per share. Proceeds of $110 million will be used purchase aggregate stock form PVR and maintain a 2% general partner interest in that company.
Lead Underwriters: Lehman Brothers, UBS Investment Bank
All of our cash flows are generated from the cash distributions we receive with respect to the PVR partnership interests we own. PVR is required by its partnership agreement to distribute, and it has historically distributed within 45 days of the end of each quarter, all of its cash on hand at the end of each quarter, less cash reserves established by its general partner in its sole discretion to provide for the proper conduct of PVR’s business or to provide for future distributions. While we, like PVR, are structured as a limited partnership, our capital structure and cash distribution policy differ materially from those of PVR. Most notably, our general partner does not have an economic interest in us and is not entitled to receive any distributions from us and our capital structure does not include incentive distribution rights. Therefore, our distributions are allocated exclusively to our common units, which is our only class of security currently outstanding.
WSB FINANCIAL GROUP (WSFG)
Business Overview (from prospectus)
We are a bank holding company headquartered in Bremerton, Washington. We emphasize a service-oriented culture with a sales-based delivery model focused primarily on real estate lending products and supplemented by commercial banking products and services. Approximately 93.6% of our loans as of September 30, 2006 were secured by real estate located primarily in Kitsap County...Westsound Bank, our wholly-owned subsidiary, opened in March 1999. We currently operate through seven full service branches and three loan production offices that are located in the west Puget Sound area, an area encompassing the Kitsap and Olympic peninsulas and islands west of Seattle. We believe this is an attractive market that benefits not only from its proximity to the economic activity in the Seattle Metropolitan Statistical Area, or Seattle MSA, but also the high quality of living it offers its residents and seasonal visitors.
Offering: 2.3 million shares at $14-16 per share. Approximate net proceeds of $31.6 million will be used to enhance current capital ratios, expand operations and general corporate purposes.
Lead Underwriters: D.A. Davidson
At September 30, 2006 we had total assets of $338.1 million, net loans of $306.1 million, total deposits of $308.1 million and stockholders’ equity of $20.2 million... Our business model has produced strong loan and deposit growth, which has been complemented by steady net income growth. From December 31, 2001 to September 30, 2006 we have increased:
• Total assets from $32.5 million to $338.1 million;
• Total net loans from $25.3 million to $306.1 million;
• Total deposits from $28.1 million to $308.1 million;
• Net income from $15,000 for the twelve months ended December 31, 2001, to $3.5 million for the twelve months ended September 30, 2006; and
• Our return on average equity and return on average assets from 0.4% and 0.06%, respectively, to 23.5% and 1.44%, respectively.