This Week's IPOs: CAI International, Trimas Corp., TechTarget

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Includes: CAI, TRS, TTGT
by: Abbi Adest

Beyond the four energy offerings, IPOs on tap for this week include: CAI International (CAP), a global container leasing and management company; Trimas Corp. (NASDAQ:TRS) an equipment manufacturer serving niche markets in the automotive industry; and TechTarget (NASDAQ:TTGT) a provider of specialized online content that brings together buyers and sellers of corporate information technology products.

All quotations are from the companies' most recent S-1 filings with links provided.

CAI INTERNATIONAL (CAP)
Business Overview (from prospectus)

We are one of the world’s leading container leasing and management companies. We believe that our share of the worldwide leased container fleet, as measured in TEUs, increased from approximately 4.3% as of mid-1998 to 6.3% as of mid-2006, representing the seventh largest fleet of leased containers in the world. We operate our business through two segments: container leasing and container management. We purchase new containers, lease them to container shipping lines and either retain them as part of our owned fleet or sell them to container investors for whom we then provide management services. In operating our fleet, we lease, re-lease and dispose of containers and contract for the repair, repositioning and storage of containers. As of March 31, 2007, our fleet comprised 684,000 TEUs, 74.7% of which represented our managed fleet and 25.3% of which represented our owned fleet.

Offering: 5.8 million shares at $14.00 - $16.00 per share. Net proceeds of approximately $78.6 million will be used repay outstanding debt.

Lead Underwriters: Piper Jaffray, Jefferies

Financial Highlights:

Total revenue of $60.7 million for Adjusted 2006 was $925,000 lower than total revenue of $61.6 million for 2005 due primarily to a decline of $6.0 million in container rental revenue, partly offset by increases in management fee revenue, gain on sale of container portfolios and finance lease income of $869,000, $3.8 million and $365,000, respectively. Net income increased $5.0 million, or 49.6%, to $14.9 million for Adjusted 2006 from $10.0 million for 2005. The increase in net income was principally due to a $6.8 million, or 18.2%, decrease in operating expenses. Adjusted 2006 net income exceeds actual net income for the combined pre- and post-repurchase period due to the decreased interest expense described above.

TRIMAS CORPORATION (TRS)
Business Overview (from prospectus)

We are a manufacturer of highly engineered products serving niche markets in a diverse range of commercial, industrial and consumer applications. Most of our businesses share important characteristics, including leading market shares, strong brand names, broad product offerings, established distribution networks, relatively high operating margins, relatively low capital investment requirements, product growth opportunities and strategic acquisition opportunities. We believe that a majority of our 2006 net sales were in markets in which our products have the number one or number two market position within their respective product categories. In addition, we believe that in many of our businesses, we are one of only a few manufacturers in the geographic markets where we currently compete.

Offering: 11.0 million shares at $11.00 - $13.00 per share. Net proceeds of approximately $119.3 million will be used to redeem approximately $100.3 million in aggregate principal amount of the company's senior subordinated notes plus associated call premiums of approximately $5.0 million. Remaining net proceeds will be used to seek to terminate certain operating leases by acquiring the underlying assets at a cost of approximately $4.0 million. Additional remaining net proceeds will be used to first terminate additional operating leases by acquiring the underlying assets, second redeem additional amounts of senior subordinated notes and lastly for general corporate purposes.

Lead Underwriters: Goldman Sachs, Merrill Lynch

Financial Highlights:

Net sales increased $19.7 million, or approximately 2.0%, in 2006 as compared with 2005... Gross profit margin (gross profit as a percentage of sales) approximated 26.8% and 24.7% for 2006 and 2005, respectively...Operating profit margin (operating profit as a percentage of sales) decreased from 8.4% in 2005 to (1.3)% in 2006. Operating profit declined approximately $97.9 million, to an operating loss of $13.6 million in 2006, compared to operating profit of $84.3 million in 2005.

TECHTARGET (TTGT)
Business Overview (from prospectus)

We are a leading provider of specialized online content that brings together buyers and sellers of corporate information technology, or IT, products. We sell customized marketing programs that enable IT vendors to reach corporate IT decision makers who are actively researching specific IT purchases. We operate a network of 36 websites, each of which focuses on a specific IT sector, such as storage, security or networking. IT professionals rely on our websites for key decision support information tailored to their specific areas of responsibility. We complement our online offerings with targeted in-person events and three specialized IT magazines that enable advertisers to engage buyers throughout their decision-making process for IT purchases.

Offering: 7.7 million shares at $12.00 - $14.00 per share. Net proceeds of approximately $75.2 million will be used repayment of $12.0 million under the company's revolving credit facility, working capital and other general corporate purposes.

Lead Underwriters: Morgan Stanley, Lehman Brothers

Financial Highlights:

Revenue increased 18% from $66.7 million in 2005 to $79 million in 2006... Cost of revenue increased 13% from $22 million in 2005 to $24.8 million in 2006... Gross profit increased 21% from $44.7 million in 2005 to $54.2 million in 2006... Gross profit percentage increased from 67% in 2005 to 69% in 2006.