This Week's IPOs Part III: Atlas Energy, Altra, DCT Industrial, Genesis Lease, Isilon Systems

by: Abbi Adest

More IPOs on deck for this week: Atlas Energy Resources (ATN), an LLC which manages natural gas and oil production in the Appalachian Basin; Altra Holdings (NASDAQ:AIMC), which produces mechanical power transmission and motion control products; DCT Industrial (NYSE:DCT), a Denver-based REIT; Genesis Lease (GLS), a spin off of GE Commercial Aviation; Isilon Systems (ISLN) which provides clustered storage systems for digital content.

All quotations are from the companies' most recent S-1 filings with links provided for each company. Source: IPOHome


Business Overview (from prospectus)

We are a limited liability company focused on the development and production of natural gas and, to a lesser extent, oil principally in the Appalachian Basin. We sponsor and manage tax-advantaged investment partnerships, in which we coinvest, to finance the exploitation and development of our acreage. Our goal is to increase the distributions to our unitholders by continuing to grow the net production from our natural gas and oil production business as well as the fee-based revenues from our partnership management business.

Offering: 6.3 million shares at $19-21 per share. Net proceeds will be approximately $111.5 million and will be distributed to the investment partnership management business of Atlas America, Inc and for general corporate purposes.

Lead Underwriters: UBS Investment Bank, Wachovia Securities, A.G. Edwards

Financial Highlights:

We derive substantially all of our revenues from our equity interest in the oil and gas produced by the investment partnerships as well as the fees paid by the partnerships to us for acting as the managing general partner as follows:

  • Gas and oil production. We receive an interest in each investment partnership proportionate to the value of our coinvestment in it and the value of the acreage we contribute to it, typically 27% to 30% of the overall capitalization of a particular partnership. We also receive an incremental interest in each partnership, typically 7%, for which we do not make any additional capital contribution. Consequently, our equity interest in the reserves and production of each partnership is typically between 34% and 37%.

  • Partnership management.
    As managing general partner of our investment partnerships, we receive the following fees...
    Business Overview (from prospectus)

    We are a leading global designer, producer and marketer of a wide range of mechanical power transmission, or MPT, and motion control products serving customers in a diverse group of industries, including energy, general industrial, material handling, mining, transportation and turf and garden. Our product portfolio includes industrial clutches and brakes, enclosed gear drives, open gearing, couplings, engineered bearing assemblies, linear components and other related products. Our products are used in a wide variety of high-volume manufacturing processes, where the reliability and accuracy of our products are critical in both avoiding costly down time and enhancing the overall efficiency of manufacturing operations. Our products are also used in non-manufacturing applications where product quality and reliability are especially critical, such as clutches and brakes for elevators, and residential and commercial lawnmowers.

    Offering: 10 million shares at $14-16 per share. Net proceeds are expected to reach approximately $41.5 million. The proceeds will be used to repay debt, general corporate purposes and acquisitions.

    Lead Underwriters: Merrill Lynch, Jefferies, Robert Baird

    Financial Highlights:

    For the nine months ended September 29, 2006, we had net sales of $347.5 million, net income of $10.7 million and EBITDA of $46.9 million... Net sales increased $74.0 million, or 27.1%, from $273.5 million, for the nine months ended September 30, 2005 to $347.5 million for the nine months ended September 29, 2006... Gross profit increased $28.0 million, or 42.0%, from $66.6 million (24.4% of net sales), in the nine months ended September 30, 2005 to $94.6 million (27.2% of net sales) in the same period of 2006.

    Business Overview (from prospectus)

    We are a leading real estate company specializing in the ownership, acquisition, development and management of bulk distribution and light industrial properties located in 23 of the highest volume distribution markets in the United States. In addition, we manage, and own interests in, industrial properties through our institutional capital management program. Our properties primarily consist of high-quality, generic bulk distribution warehouses and light industrial properties.

    Offering: 15 million shares priced at $11.50-$12.50. Net proceeds are expected to reach about $166.3 million and will be used to repay debt.

    Lead Underwriters: Merrill Lynch, Wachovia Securities

    Financial Highlights:

    During the nine months ended September 30, 2006, we recognized net loss of approximately $9.9 million, compared to net loss of approximately $8.0 million for the same period in 2005...Rental revenues increased by approximately $25.9 million for the three months ended September 30, 2006 compared to the same period in 2005, primarily as a result of the rental revenues generated from the additional 128 operating properties acquired subsequent to September 30, 2005.

    Business Overview (from prospectus)

    We are a newly organized company formed to acquire and lease commercial jet aircraft and other aviation assets. Our aircraft are leased under long-term contracts to a diverse group of airlines throughout the world. Our strategy is to grow our portfolio through accretive acquisitions of aircraft, while paying regular quarterly dividends to our shareholders. We intend to leverage the worldwide platform of Services Limited, or GECAS, to service our portfolio of leases, allowing our management to focus on executing our growth strategy.

    Offering: 27.9 million shares at $21-23 per share. Net proceeds of approximately $580.7 million will be used to pay a portion of the purchase price for the company's initial portfolio.

    Lead Underwriters: Citigroup, J.P. Morgan

    Financial Highlights:

    Revenues from rentals of aircraft increased 28.3% to $111.6 million for the nine months ended September 30, 2006 from $87.0 million for the nine months ended September 30, 2005...Depreciation of flight equipment increased 22.2% to $37.4 million for the nine months ended September 30, 2006 from $30.6 million for the nine months ended September 30, 2005.


    Business Overview (from prospectus)

    Isilon logo

    We believe we are the leading provider of clustered storage systems for digital content, based on customer adoption, breadth of product offerings and technology capabilities. As more information is recorded and communicated in images and pictures rather than text and words, the volume of digital content — which includes video, audio, digital images, computer models, PDF files, scanned images, reference information, test and simulation data and other unstructured data — is growing rapidly. Enterprises are utilizing this digital content to create new products and services, generate new revenue streams, accelerate research and development cycles and improve their overall competitiveness. Recognizing the growth and importance of this type of data, we designed and developed our clustered storage systems specifically to address the needs of storing and managing digital content. Our systems are comprised of three or more nodes. Each node is a self-contained, rack-mountable device that contains industry standard hardware, including disk drives, a central processing unit, or CPU, memory chips and network interfaces, and is integrated with our proprietary OneFS® operating system software, which unifies a cluster of nodes into a single shared resource. To date, we have sold our clustered storage systems to more than 300 customers across a wide range of industries.

    Offering: 8.4 million at $8.50-$9.50. Net proceeds of approximately $67.4 million will be used to repay debt and for working capital.

    Lead Underwriters: Morgan Stanley, Merrill Lynch.

    Financial Highlights:

    Our total revenue has grown from $1.3 million in 2003, when we began shipping our products, to $7.7 million in 2004, to $21.1 million in 2005 and to $41.6 million for the first nine months of 2006... Gross margin increased 12 percentage points to 52% in the first nine months of 2006 from 40% in the first nine months of 2005.