| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Associated Materials Incorporated |
| 2200 Ross Avenue, Suite 4100 East, Dallas, TX 75201 * (214) 220-4600 |
| The company is a leading, vertically integrated manufacturer and nationwide distributor of exterior residential building products through its Alside division. Alside's core products are vinyl siding and vinyl windows. |
| Manager | Tier | Phone |
| Salomon Smith Barney | Lead Manager | (212) 723-7300 |
| Rauscher Pierce Refsnes, Inc. | Co-manager | (214) 989-1588 |
| NASNTL: | SIDE | Manufacturing: | SIC 3089 | |
| Type of Shares: | Common Shares | Filing Date: | 12/12/97 | |
| U.S. Shares: | 2,128,800 | Offer Date: | 2/25/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $16.00 - $18.00 | |
| Primary Shares: | 700,000 | Offer Price: | $16.00 | |
| Secondary Shares: | 1,428,800 | Gross Spread: | $1.12 | |
| Offering Amount: | $36,189,600 | Selling: | $0.67 | |
| Expenses: | $440,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 8,293,504 | |||
| Employees: | 1500 |
| Issuer's Law Firm: | Jones, Day, Reavis & Pogue |
| Bank's Law Firm: | Latham & Watkins |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
| Auditor: | Ernst & Young |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $356.47 | $297.92 | $264.52 | Assets: | $190.44 |
| Net Income: | $8.22 | $9.11 | $6.63 | Curr Assets: | $123.65 |
| EPS: | $1.14 | $1.17 | $0.86 | Liabilities: | $149.69 |
| Prior EPS: | $0.16 | $16.67 | $9.90 | Curr Liab: | $64.49 |
| Cash Flow/Oper: | $15.06 | -$10.15 | -$2.36 | Equity: | $40.75 |
| Cash Flow/Fin: | -$6.86 | -$6.31 | -$6.87 | Cash: | $2.60 |
| Cash Flow/Inv: | -$8.09 | Working Cap: | $59.16 | ||
| Competition |
| Except for Owens Corning, no company within the residential siding industry competes with Alside on both the manufacturing and distribution levels. There are, however, numerous small and large manufacturers of metal and vinyl siding products, including Aluminum Company of America, CertainTeed Corporation, Jannock Limited, Nortek, Inc. and Royal Group Technologies Limited, some of whom are larger in size and have greater financial resources than the Company. Alside competes with Owens Corning and numerous large and small distributors of building products in its capacity as a distributor of such products. The market for vinyl replacement windows is highly fragmented, and Alside believes that no single manufacturer accounts for a significant percentage of national sales. Alside believes that the market trend towards sales of welded vinyl windows, which Alside began manufacturing in 1992 and which require expensive, more sophisticated production equipment, will result in further consolidation of the window fabrication industry. Alside and its competitors generally compete on price, product performance, and sales and service support to professional contractors. Competition varies by region. Alside also faces competition from alternative materials: wood and aluminum in the window markets, and wood, masonry and metal in the siding market. However, the Company believes Alside's products are competitive, and in most sectors are gaining share at the expense of alternative materials due to vinyl's superior qualities, including its lower material cost, durability and low maintenance requirements. |
| Business Plan |
| The Company believes that it is well positioned to capitalize on the growing demand for vinyl building products. The following business strategy should enable the Company to (i) maintain Alside's position as a leading manufacturer and distributor of exterior residential building products, (ii) continue to increase sales, and (iii) strengthen operating margins. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund in part, the company's 1998 capital expenditure plan, including the construction of a new vinyl siding manufacturing facility. |
| Officer Name | Title | Age |
| William W. Winspear | Chairman of the Board, President and Chief Executive Officer of the Company | 64 |
| Richard I. Galland | Director | 81 |
| James F. Leary | Director | 67 |
| Gary D. Trabka | Director | 43 |
| Alan B. Lerner | Director | 67 |
| A. A. Meitz | Director | 60 |
| James R. Bussman | Executive Vice President -- Corporate Services of Alside and Vice President of the Company | 50 |
| Michael R. St. Clair | Executive Vice President -- Finance of Alside and Vice President of the Company | 51 |
| Benjamin L. McGarry | Group Vice President -- Vinyl Manufacturing of Alside | 50 |
| Wayne D. Frederick | Group Vice President -- Window Products of Alside | 51 |
| Donald L. Kaufman | President and Chief Executive Officer of Alside and Vice President and Director of the Company | 66 |
| Robert F. Hogan, Jr. | President and Chief Executive Officer of AmerCable and Vice President of the Company | 40 |
| Robert L. Winspear | Vice President, Treasurer and Secretary of the Company | 32 |