(to Prospectus dated September 22, 2021)
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 21.000 | | | | | $ | 25,200,000 | | |
Underwriting discount(1)
|
| | | $ | 0.887 | | | | | $ | 1,064,400 | | |
Proceeds, before expenses, to selling stockholders
|
| | | $ | 20.113 | | | | | $ | 24,135,600 | | |
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Page
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Year Ended
December 31, |
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Six Months Ended
June 30, |
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(in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |
2023
|
| ||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Consolidated Statements of Operations and Comprehensive Income Data
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Sales: | | | | | | | | | | | | | | | | | | | | | | | | | |
Products
|
| | | $ | 249,354 | | | | | $ | 281,190 | | | | | $ | 122,002 | | | | | $ | 139,736 | | |
Services
|
| | | | 195,193 | | | | | | 194,555 | | | | | | 108,752 | | | | | | 96,076 | | |
Total net sales
|
| | | | 444,547 | | | | | | 475,745 | | | | | | 230,754 | | | | | | 235,812 | | |
Cost of sales: | | | | | | | | | | | | | | | | | | | | | | | | | |
Products (exclusive of depreciation and amortization shown below)
|
| | | | 161,374 | | | | | | 171,017 | | | | | | 79,695 | | | | | | 87,288 | | |
Services (exclusive of depreciation and amortization shown below)
|
| | | | 117,397 | | | | | | 119,930 | | | | | | 61,672 | | | | | | 59,618 | | |
Depreciation and amortization
|
| | | | 10,287 | | | | | | 9,031 | | | | | | 5,481 | | | | | | 4,987 | | |
Total cost of sales
|
| | | | 289,058 | | | | | | 299,978 | | | | | | 146,848 | | | | | | 151,893 | | |
Gross profit
|
| | | | 155,489 | | | | | | 175,767 | | | | | | 83,906 | | | | | | 83,919 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative (exclusive of depreciation and amortization shown below)
|
| | | | 88,255 | | | | | | 90,782 | | | | | | 52,268 | | | | | | 42,951 | | |
Depreciation and amortization
|
| | | | 5,644 | | | | | | 5,855 | | | | | | 2,584 | | | | | | 2,878 | | |
Total operating expenses
|
| | | | 93,899 | | | | | | 96,637 | | | | | | 54,852 | | | | | | 45,829 | | |
Income from operations
|
| | | | 61,590 | | | | | | 79,130 | | | | | | 29,054 | | | | | | 38,090 | | |
Other expense, net: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest, net
|
| | | | (26,913) | | | | | | (29,616) | | | | | | (12,955) | | | | | | (13,521) | | |
Other expense, net
|
| | | | (215) | | | | | | (367) | | | | | | (143) | | | | | | (192) | | |
Total other expense, net
|
| | | | (27,128) | | | | | | (29,983) | | | | | | (13,098) | | | | | | (13,713) | | |
Income before income taxes
|
| | | | 34,462 | | | | | | 49,147 | | | | | | 15,956 | | | | | | 24,377 | | |
Income tax expense
|
| | | | (10,477) | | | | | | (12,607) | | | | | | (4,500) | | | | | | (6,981) | | |
Net income
|
| | | $ | 23,985 | | | | | $ | 36,540 | | | | | $ | 11,456 | | | | | $ | 17,396 | | |
| | |
Year Ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
(in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |
2023
|
| ||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Basic and diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share
|
| | | $ | 2.10 | | | | | $ | 3.24 | | | | | $ | 1.03 | | | | | $ | 1.52 | | |
Diluted earnings per share
|
| | | $ | 2.01 | | | | | $ | 3.11 | | | | | $ | 0.97 | | | | | $ | 1.46 | | |
Comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 23,985 | | | | | $ | 36,540 | | | | | $ | 11,456 | | | | | $ | 17,396 | | |
Total comprehensive income
|
| | | $ | 23,985 | | | | | $ | 36,540 | | | | | $ | 11,456 | | | | | $ | 17,396 | | |
|
| | |
December 31,
|
| |
June 30,
|
| ||||||||||||
(in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 12,413 | | | | | $ | 11,037 | | | | | $ | 7,479 | | |
Total assets
|
| | | | 293,683 | | | | | | 296,666 | | | | | | 321,446 | | |
Current liabilities
|
| | | | 49,445 | | | | | | 68,012 | | | | | | 68,949 | | |
Long-term debt
|
| | | | 264,997 | | | | | | 285,522 | | | | | | 269,654 | | |
Total liabilities
|
| | | | 345,619 | | | | | | 378,743 | | | | | | 366,003 | | |
Total stockholders’ deficit
|
| | | | (51,936) | | | | | | (82,077) | | | | | | (44,557) | | |
| | |
Year Ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
(in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |
2023
|
| ||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Cash Flow Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 34,041 | | | | | $ | 31,336 | | | | | $ | 4,108 | | | | | $ | 10,322 | | |
Investing activities
|
| | | | (6,222) | | | | | | (17,772) | | | | | | (2,744) | | | | | | (6,466) | | |
Financing activities
|
| | | | (26,443) | | | | | | (23,163) | | | | | | (6,298) | | | | | | (3,736) | | |
| | |
Year Ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
(unaudited, $ in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |
2023
|
| ||||||||||||
Other Financial Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 23,985 | | | | | $ | 36,540 | | | | | $ | 11,456 | | | | | $ | 17,396 | | |
Net income (% of Net sales)
|
| | | | 5.4% | | | | | | 7.7% | | | | | | 5.0% | | | | | | 7.4% | | |
Adjusted EBITDA(1)
|
| | | | 89,491 | | | | | | 97,703 | | | | | | 44,888 | | | | | | 48,378 | | |
Adjusted EBITDA Margin (% of Net sales)(1)
|
| | | | 20.1% | | | | | | 20.5% | | | | | | 19.5% | | | | | | 20.5% | | |
Free Cash Flow(2)
|
| | | | 27,636 | | | | | | 13,469 | | | | | | 1,364 | | | | | | 3,728 | | |
Net Leverage Ratio(3)
|
| | | | 3.1 | | | | | | 3.0 | | | | | | 3.3 | | | | | | 2.8 | | |
| | |
Years ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
(unaudited, $ in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |
2023
|
| ||||||||||||
Net income
|
| | | $ | 23,985 | | | | | $ | 36,540 | | | | | $ | 11,456 | | | | | $ | 17,396 | | |
Interest, net
|
| | | | 26,913 | | | | | | 29,616 | | | | | | 12,955 | | | | | | 13,521 | | |
Income tax expense
|
| | | | 10,477 | | | | | | 12,607 | | | | | | 4,500 | | | | | | 6,981 | | |
Depreciation and amortization
|
| | | | 15,931 | | | | | | 14,886 | | | | | | 8,065 | | | | | | 7,865 | | |
EBITDA
|
| | | $ | 77,306 | | | | | $ | 93,649 | | | | | $ | 36,976 | | | | | $ | 45,763 | | |
Stock-based compensation expense
|
| | | | 7,507 | | | | | | 3,479 | | | | | | 5,154 | | | | | | 1,831 | | |
Sales tax (benefit) expense(a)
|
| | | | (70) | | | | | | 18 | | | | | | — | | | | | | 35 | | |
Restructuring and other charges(b)
|
| | | | 4,531 | | | | | | — | | | | | | 2,758 | | | | | | 557 | | |
Loss on debt extinguishment(c)
|
| | | | 243 | | | | | | 474 | | | | | | — | | | | | | 218 | | |
Foreign currency (gain) loss
|
| | | | (26) | | | | | | 83 | | | | | | — | | | | | | (26) | | |
Subtotal of adjustments to EBITDA
|
| | | $ | 12,185 | | | | | $ | 4,054 | | | | | $ | 7,912 | | | | | $ | 2,615 | | |
Adjusted EBITDA
|
| | | $ | 89,491 | | | | | $ | 97,703 | | | | | $ | 44,888 | | | | | $ | 48,378 | | |
Adjusted EBITDA Margin (% of Net sales)
|
| | | | 20.1% | | | | | | 20.5% | | | | | | 19.5% | | | | | | 20.5% | | |
| | |
Years ended
December 31, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
(unaudited, $ in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |
2023
|
| ||||||||||||
Cash provided by operating activities
|
| | | $ | 34,041 | | | | | $ | 31,336 | | | | | $ | 4,108 | | | | | $ | 10,322 | | |
Capital expenditures for plant, equipment and leasehold improvements, net
|
| | | | (6,405) | | | | | | (17,867) | | | | | | (2,744) | | | | | | (6,594) | | |
Free Cash Flow
|
| | | $ | 27,636 | | | | | $ | 13,469 | | | | | $ | 1,364 | | | | | $ | 3,728 | | |
| | |
Years ended
December 31, |
| |
As of June 30,
|
| ||||||||||||||||||
(unaudited, $ in thousands)
|
| |
2023
|
| |
2022
|
| |
2024
|
| |
2023
|
| ||||||||||||
Senior Notes
|
| | | $ | 267,897 | | | | | $ | 285,000 | | | | | $ | 267,897 | | | | | $ | 270,000 | | |
ABL Revolver
|
| | | | — | | | | | | 5,000 | | | | | | 4,000 | | | | | | 18,000 | | |
Finance lease obligations
|
| | | | 18,106 | | | | | | 10,697 | | | | | | 16,663 | | | | | | 11,121 | | |
Total debt
|
| | | $ | 286,003 | | | | | $ | 300,697 | | | | | | 288,560 | | | | | | 299,121 | | |
Less: Cash and cash equivalents
|
| | | | (12,413) | | | | | | (11,037) | | | | | | (7,479) | | | | | | (11,168) | | |
Total net debt
|
| | | $ | 273,590 | | | | | $ | 289,660 | | | | | | 281,081 | | | | | | 287,953 | | |
LTM Adjusted EBITDA(a)
|
| | | $ | 89,491 | | | | | $ | 97,703 | | | | | $ | 86,001 | | | | | $ | 103,852 | | |
Net Leverage Ratio
|
| | | | 3.1 | | | | | | 3.0 | | | | | | 3.3 | | | | | | 2.8 | | |
| | |
Last Twelve Months Ended
|
| |||||||||
(unaudited, $ in thousands)
|
| |
June 30, 2024
|
| |
June 30, 2023
|
| ||||||
Reconciliation of net income to LTM EBITDA and Adjusted EBITDA | | | | | | | | | | | | | |
Net income
|
| | | $ | 18,045 | | | | | $ | 41,783 | | |
Interest, net
|
| | | | 26,347 | | | | | | 28,126 | | |
Income tax expense
|
| | | | 7,996 | | | | | | 14,128 | | |
Depreciation and amortization
|
| | | | 16,131 | | | | | | 15,570 | | |
EBITDA
|
| | | $ | 68,519 | | | | | $ | 99,607 | | |
Adjustments to EBITDA: | | | | | | | | | | | | | |
Stock-based compensation expense
|
| | | $ | 10,830 | | | | | $ | 3,348 | | |
Sales tax (benefit) expense(a)
|
| | | | (105) | | | | | | 1 | | |
Restructuring and other charges(b)
|
| | | | 6,732 | | | | | | 557 | | |
Loss on debt extinguishment(c)
|
| | | | 25 | | | | | | 297 | | |
Foreign currency loss
|
| | | | — | | | | | | 42 | | |
Subtotal of adjustments to EBITDA
|
| | | $ | 17,482 | | | | | $ | 4,245 | | |
LTM Adjusted EBITDA
|
| | | $ | 86,001 | | | | | $ | 103,852 | | |
| | |
Shares Owned
Prior to the Offering |
| |
Number of
Shares Offered Hereby |
| |
Shares Owned
After the Offering |
| |||||||||||||||||||||
Name of Selling Stockholder
|
| |
Number
|
| |
%(1)
|
| |
Number
|
| |
%
|
| ||||||||||||||||||
Tricor Pacific Capital Partners (Fund IV), Limited Partnership(2)
|
| | | | 3,894,942 | | | | | | 34.91% | | | | | | 754,593 | | | | | | 3,140,349 | | | | | | 28.15% | | |
Tricor Pacific Capital Partners (Fund IV) US, Limited Partnership(2)
|
| | | | 2,299,035 | | | | | | 20.60% | | | | | | 445,407 | | | | | | 1,853,628 | | | | | | 16.61% | | |
Name
|
| |
Number
of Shares |
| |||
D.A. Davidson & Co.
|
| | | | 1,200,000 | | |
Total
|
| | | | 1,200,000 | | |
| | |
Per Share
|
| |
Without
Option |
| |
With
Option |
| |||||||||
Public offering price
|
| | | $ | 21.000 | | | | | $ | 25,200,000.00 | | | | | $ | 28,980,000.00 | | |
Underwriting discount
|
| | | $ | 0.887 | | | | | $ | 1,064,400.00 | | | | | $ | 1,224,060.00 | | |
Proceeds, before expenses, to the selling stockholders
|
| | | $ | 20.113 | | | | | $ | 24,135,600.00 | | | | | $ | 27,755,940.00 | | |
10368 West Centennial Road
Littleton, CO 80127
(720) 681-6304
Attention: Corporate Secretary
10368 West Centennial Road
Littleton, CO 80127
(720) 681-6304
Attention: Corporate Secretary
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Name of Selling Stockholder
|
| |
Shares Owned
Prior to the Offering |
| |
Maximum Number of
Shares that May be Offered Pursuant to this Prospectus |
| |
Shares Owned
After the Offering |
| |||||||||||||||||||||
|
Number
|
| |
%(1)
|
| |
Number
|
| |
%
|
| ||||||||||||||||||||
Tricor Pacific Capital Partners (Fund IV), Limited Partnership(2)
|
| | | | 4,124,368 | | | | | | 36.7% | | | | | | 4,124,368 | | | | | | — | | | | | | — | | |
Tricor Pacific Capital Partners (Fund IV) US,
Limited Partnership(2) |
| | | | 2,434,457 | | | | | | 21.7% | | | | | | 2,434,457 | | | | | | — | | | | | | — | | |
10368 West Centennial Road
Littleton, CO 80127
(720) 681-6304
Attention: Corporate Secretary
10368 West Centennial Road
Littleton, CO 80127
(720) 681-6304
Attention: Corporate Secretary