Business Summary:
The Company, established in the late 1800’s, is a wholesale provider of concrete and masonry supplies to contractors in the Rocky Mountain West Region. The Company primarily wholesales materials including concrete, aggregates, sand, glass blocks, fireplace materials and equipment, and concrete/masonry accessories and tools. With a focus on the customer and providing only the highest-quality products and excellent service, the Company has developed strong brand recognition and a loyal customer base.
This multigenerational family business is led by a very hands-on and experienced team. The Company’s business model is simple and does not rely on technology or marketing to maintain market share. The Company’s strong balance sheet and long operating history have allowed it to capture market share during market downturns and maximize profits during market expansions. Furthermore, the business processes, systems and experience from 120 years of operation result in a consistently profitable company that has survived many economic cycles.
Because the Company’s products are used primarily in projects funded by state and local governments, the federal government or higher-education entities, the current and historical impact of recessionary conditions on sales and profitability has been milder than in the commercial and residential construction industries. The Company’s most recent reviewed financials show that the Company experienced growth in revenue during the fiscal year ending February 28, 2009 versus 2008 despite unfavorable economic conditions.
Management’s excellent control of costs and margins has allowed the Company to achieve gross, operating and net margins that are consistently higher than the industry standard. Furthermore, the Company has consistently achieved excellent ROA, ROE and a rapid cash conversion cycle.
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