BURLINGTON, Ont. – Broadcast gear manufacturer Evertz Technologies launched its initial public offering this week.
Evertz designs, manufactures and markets video and audio infrastructure equipment for the TV industry. The company’s solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their multi-channel digital and HDTV broadcast environments and by telecommunications companies to roll-out IPTV.
It employs more than 400 people.
According to its Sedar documents, the 40-year-old company expects to raise about $67 million (which will be used for more R&D and to pay down debt) with shares priced at $10.25 each.
Over the five fiscal years ended April 30, 2006, the company’s sales grew from approximately $26 million to $141.2 million, representing a compound annual growth rate of approximately 53%, while its adjusted earnings before income taxes grew from approximately $5.7 million to $60.3 million, representing a CAGR of approximately 81%, says its prospectus.
The company’s sales jumped from just under $100 million to $141.2 thanks largely to its October 2005 acquisition of U.K. master control company Quartz Electronics.
"Management plans to continue the company’s growth by capitalizing on the following industry drivers that are causing content creators, broadcasters, specialty channels and television service providers to upgrade their equipment:
* Global transition to digital television (‘‘DTV’’) and HDTV, driven by an increasing availability of high definition programming, declining prices for HDTV sets, and the establishment of regulatory deadlines for analog-to-digital conversion;
* Introduction of IPTV services by telecommunications companies, which are in the initial phases of deploying television infrastructure as a competitive response to cable companies which are now providing traditional telephony services;
* Consolidation of broadcasting facilities as companies attempt to reduce costs and achieve greater economies of scale; and
* Emerging markets and the adoption of HDTV and IPTV in markets such as China," says the prospectus.
