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Milestone AV Technologies [MLS] designs a/v mounting equipment. The company is expected to issue a public offering this week.

All quotations are from the company’s most recent S-1 filing with links provided.

MILESTONE AV TECHNOLOGIES [MLS]
Business Overview (from prospectus)

We are a leading designer, marketer and distributor of branded audio visual, or AV, mounting equipment and display solutions. We believe we have the largest market share in North America for flat panel display mounting solutions, projector mounting solutions and speaker stands, based on sales, and are one of the top providers of AV furniture and other AV products and accessories. Milestone was formed in 2003 to acquire Chief Manufacturing, Inc., which was founded in 1978 and grew to become the leading supplier of commercial AV mounting systems sold to professional audio visual, or Pro-AV, dealers, and high-end custom home theater dealers. In 2004, Chief Manufacturing, Inc. acquired Decade Industries, Inc. (d/b/a Sanus Systems), or Sanus Systems, which was founded in 1986 and grew to become one of the largest manufacturers of high-quality speaker stands, AV furniture and television wall mounts for the consumer market. As a result of the acquisition of Sanus Systems, we believe we offer the most extensive selection of AV mounting and display solutions for commercial and consumer end-users.

Offering: 12 million ADSs at $12 - $14 per share. Net proceeds of approximately $61.8 million will be used to repay $61.8 million of indebtedness under first lien term loan facility.

Lead Underwriters: Wachovia Securities, Piper Jaffrey

Financial Highlights:

Net sales increased $45.3 million, or 34.0%, to $178.8 million for the nine months ended September 30, 2007 vs. $133.5 million for the nine months ended September 30, 2006… Cost of goods sold increased $34.8 million, or 48.5%, to $106.4 million for the nine months ended September 30, 2007 vs. $71.6 million for the nine months ended September 30, 2006… Selling expenses increased $3.5 million, or 15.9%, to $25.7 million for the nine months ended September 30, 2007 vs. $22.2 million for the nine months ended September 30, 2006… G&A expenses increased $1.8 million, or 21.1%, to $10.5 million for the nine months ended September 30, 2007 vs. $8.7 million for the nine months ended September 30, 2006… R&D expenses increased $2.5 million, or 100.8%, to $5.0 million for the nine months ended September 30, 2007 vs. $2.5 million for the nine months ended September 30, 2006… Net income increased $2.8 million to $9.8 million for the nine months ended September 30, 2007 vs. $7.0 million for the nine months ended September 30, 2006.

Competition:

We compete on the basis of product quality and features, customer service and installation support, distribution and merchandising capabilities, brand recognition and price. Some of our competitors seek to offer lower prices on competing products to gain market share. To remain competitive, we believe we must regularly introduce new products, add additional features to existing products, and limit increases in our prices. In addition, our intellectual property rights are more difficult to enforce in foreign jurisdictions than in the United States. Accordingly, the expansion of our business internationally causes us to compete against counterfeit, knockoff and infringing products, which typically are offered at lower prices. Several of our competitors also have significant design resources and compete with us globally on product aesthetics and functionality.

The commercial market segment is driven by the ability to serve a fragmented customer base that requires a high volume of orders with a relatively small average order size. These dealers demand a comprehensive product offering, exceptional customer service and quick turnaround time, which few companies can provide in this sector. We primarily compete against Peerless Industries, Inc. and Progressive Marketing Products Inc. in the domestic commercial market.

The consumer market requires suppliers to provide high volume orders and innovative products. Consumer electronics and mass merchant retailers also require a high level of service and supply chain management from their vendors. We primarily compete against Omnimount Systems in this market. In addition, due to the fast growing market for flat panel displays, many established and start-up companies are pursuing products and technologies that are similar or related to ours, and we may face increased competition from these new market entrants.

Additional Resources:

Source: Retail IPO: Milestone AV Technologies