September 21 -- Orangeburg County Council Monday gave first reading, by title only, to a performance-based tax incentive agreement for Orangeburg County's largest manufacturing employer, Husqvarna, in preparation for expected future capital investment at the company's Orangeburg plant.
Council amended its agenda to include a resolution that county attorney D'Anne Haydel said "started the clock running" regarding what is to be invested by Husqvarna. The resolution, however, does not dictate the terms of the deal.
The ordinances are amendments to an existing fee-in-lieu-of-taxes pact and the initiation of a new agreement in anticipation of new investment.
The details of these ordinances, according to County Administrator Bill Clark, won't be available until third reading.
The resolution and the two ordinances were passed unanimously by council.
Under the standard fee-in-lieu-of-taxes inducement agreement, in exchange for its investment the company will pay a 6 percent assessment ratio rather than the usual 10.5 percent industrial assessment.
Gregg Robinson, executive director of the County Development Commission, said Husqvarna is planning to invest in capital - machinery and equipment - and to maintain existing levels of employment.
"This is a solid indication that successful international companies are choosing Orangeburg County to continue to grow," Robinson said.
"This type of investment is proof that Husqvarna is profitable and that they are a partner here for a long time. It provides the confidence to the community that Husqvarna is here to stay."
Robinson declined comment on the specific dollar amount of the investment, saying the figures will be released on final third reading.
Husqvarna officials could not be reached for comment Monday.
South Carolina law allows counties to enter into a negotiated agreement for a fee in lieu of local property taxes with a company if total capital investment is $1 million or greater.
Earlier this year, Husqvarna announced it would shut down its Nebraska plant and move its production lines to Orangeburg. The Beatrice, Nebraska facility employs 390 people in the production of zero-turn-radius mowers and specialty turf equipment.
While the Orangeburg plant will add some jobs as the result of the consolidation, the action was taken to make the company more efficient, said John Marchionda, vice president for marketing in Charlotte, N.C.
Husqvarna is Orangeburg County's largest employer, with an average of approximately 1,500 employees making riding lawn tractors, tillers and snow throwers. Employment fluctuates with the seasons.
The company previously announced it planned to make structural changes in the U.S. and Europe to reduce costs. Officials says the company is consolidating operations in Orangeburg to eliminate overlap and duplication.
Husqvarna is the world's largest producer of outdoor power products, including chain saws, trimmers, lawn mowers and garden tractors.
Wednesday, September 22, 2010
Generac Power Systems Named Supplier of the Year by Two Major Retailers
September 21 -- Waukesha, Wis.-based Generac Power Systems, a leading manufacturer of backup power systems, has received the honor of being named Supplier of the Year by two long-time retail channel partners, True Value Co. and Northern Tool and Equipment. These awards are given based on exceptional service, quality, and promotional support.
True Value Co. named Generac Supplier of the Year in the seasonal category at its annual meeting on June 2. This award highlights those companies that have done the most to enhance the growth of the True Value co-op and its retailers, resulting in successful fill rates and the highest level of quality service to True Value retail stores. This year, Generac was one of eight companies honored, chosen from a pool of nearly 1,800 suppliers.
Another honor was awarded to Generac by Northern Tool and Equipment at its annual vendor conference on August 2. Generac was named Vendor of the Year, which recognizes outstanding customer service, quality, reliable delivery, and promotional support. Generac was one of five companies to receive this honor out of more than 1,500 vendors.
"Generac has worked hard to create an environment of continuous improvement,” says John Quast, VP of retail sales, Generac. “That doesn’t just mean making better products — it also means finding better ways of doing business. We’re thrilled to have been able to help two valued channel partners like True Value and Northern Tool be more successful. When they win, we both win, and ultimately, it’s our customers who benefit."
True Value Co. named Generac Supplier of the Year in the seasonal category at its annual meeting on June 2. This award highlights those companies that have done the most to enhance the growth of the True Value co-op and its retailers, resulting in successful fill rates and the highest level of quality service to True Value retail stores. This year, Generac was one of eight companies honored, chosen from a pool of nearly 1,800 suppliers.
Another honor was awarded to Generac by Northern Tool and Equipment at its annual vendor conference on August 2. Generac was named Vendor of the Year, which recognizes outstanding customer service, quality, reliable delivery, and promotional support. Generac was one of five companies to receive this honor out of more than 1,500 vendors.
"Generac has worked hard to create an environment of continuous improvement,” says John Quast, VP of retail sales, Generac. “That doesn’t just mean making better products — it also means finding better ways of doing business. We’re thrilled to have been able to help two valued channel partners like True Value and Northern Tool be more successful. When they win, we both win, and ultimately, it’s our customers who benefit."
Monday, September 20, 2010
Parts Business Powering Janesville, WI Company
JANESVILLE, WI – September 17 — As it travels a new business path, the Janesville-based Certified Parts Corp. must crawl before it walks and walk before it runs.
“I think we’re now starting to walk,” said Jay Grafft, vice president of the company’s Comet Division.
Two acquisitions in the last 18 months have more than quadrupled employment at the company, which was founded in 1976 to meet the growing demand for replacement parts for recreational vehicles.
If expanding from 11 employees to 49 is what happens when a company goes from a crawl to a walk, Certified Parts will want its laces tightly tied when it starts to run.
“Hopefully, there’s a lot more people to be hired,” said Grafft, son of company founder and CEO Jim Grafft and brother of Britten Grafft, the company’s vice president of business development.
Earlier this month, Certified Parts signed a deal with a South Carolina company to jointly manufacture air-cooled engines for the outdoor power equipment market.
Certified Parts and the Graffts laid the groundwork for the deal more than a year ago when they bought the assets of the engine division of TecumsehPower Co.
Before it ended engine production, TecumsehPower made gas engines for snowblowers, generators and other lawn and garden, industrial and agricultural applications.
Production that had been spread between plants in Tennessee, Wisconsin and the Czech Republic were consolidated to Grafft-owned properties in Janesville and Edgerton.
The move brought 275 semitrailers of product, parts and machines to Rock County. While hard to come buy, materials still trickle in from the Czech Republic.
The recent deal with Liquid Combustion Technology of Travelers Rest, S.C., gives Certified Parts the engineering, manufacturing and sales capabilities to reintroduce the Snow King line of snowblower engines and other engines formerly manufactured and sold by TecumsehPower.
The engines will be sold under the Snow King, Lauson and LCT brands and serviced exclusively by Certified Parts and the existing TecumsehPower dealer/distributor network.
Jim Grafft said TecumsehPower’s failure created a void in the market that competitors such as Briggs & Stratton have tried to fill.
“But there’s still a need for these engines,” he said, noting that the Snow King line has powered more snowblowers than all other brands combined.
This year’s crop of snowblowers and engines have been built and shipped. Certified Parts and LCT are looking to next season.
“There are only a handful of customers that use these engines in significant volume, companies such as Husqvarna, MTD, Ariens and Toro,” he said. “As original equipment manufacturers, they have to see us get back into production.
“This is not a ‘build it and they will come’ deal. They need to see that something is happening here.”
Grafft said TecumsehPower was the only company that produced two-cycle engines for snowblowers, and that is a niche Certified Parts will fill when it builds as many as 10 different engines in Rock County.
In South Carolina, LCT will handle the high volume production of mass-market engines.
“We could have a prototype engine in six months that’s ready for winter testing,” Grafft said. “That’s important, because the OEMs (original equipment manufacturers) are not going to take a chance on something that could fail.”
At this point, Grafft is uncertain where Certified Parts will produce the engines.
They will be made in Wisconsin, he said, and most likely in Rock County. He would need about 250,000 square feet of manufacturing space, which he noted his available in a building he owns in Edgerton as well as others in Janesville.
In the meantime, Certified Parts has spread its recent acquisitions throughout buildings in the two communities.
Much of it, however, is in a building on South Jackson Street in Janesville, one of the city’s oldest manufacturing facilities. On the first floor, an injection-molding operation stamps out a variety of parts. Thousands of Tecumseh products and parts are stacked nearby in cardboard boxes.
Upstairs, workers meticulously build carburetors to service TecumsehPower products. The group started building 200 carburetors a day but can crank out as many as 800 when machining and parts allow.
“We’re having trouble keeping up with the tremendous appetite for carburetors,” Grafft said. “We’re probably 20,000 behind, but there is probably no part as critical as a carburetor.”
Earlier this year, Certified Parts bought the assets of Hoffco/Comet and has restarted production on South Jackson Street and in Edgerton. Hoffco produced lawn and garden equipment, while the Comet brand produced clutches, torque converters and other items for industrial and commercial applications.
That deal brought 45 semitrailers of material to Rock County.
“We’ve been busy since the acquisitions,” Grafft said. “We moved a lot of stuff, changed vendors, changed tooling, dealt with the problems in the Czech Republic, reinvented the assembly process and are getting up and running.”
“I think we’re now starting to walk,” said Jay Grafft, vice president of the company’s Comet Division.
Two acquisitions in the last 18 months have more than quadrupled employment at the company, which was founded in 1976 to meet the growing demand for replacement parts for recreational vehicles.
If expanding from 11 employees to 49 is what happens when a company goes from a crawl to a walk, Certified Parts will want its laces tightly tied when it starts to run.
“Hopefully, there’s a lot more people to be hired,” said Grafft, son of company founder and CEO Jim Grafft and brother of Britten Grafft, the company’s vice president of business development.
Earlier this month, Certified Parts signed a deal with a South Carolina company to jointly manufacture air-cooled engines for the outdoor power equipment market.
Certified Parts and the Graffts laid the groundwork for the deal more than a year ago when they bought the assets of the engine division of TecumsehPower Co.
Before it ended engine production, TecumsehPower made gas engines for snowblowers, generators and other lawn and garden, industrial and agricultural applications.
Production that had been spread between plants in Tennessee, Wisconsin and the Czech Republic were consolidated to Grafft-owned properties in Janesville and Edgerton.
The move brought 275 semitrailers of product, parts and machines to Rock County. While hard to come buy, materials still trickle in from the Czech Republic.
The recent deal with Liquid Combustion Technology of Travelers Rest, S.C., gives Certified Parts the engineering, manufacturing and sales capabilities to reintroduce the Snow King line of snowblower engines and other engines formerly manufactured and sold by TecumsehPower.
The engines will be sold under the Snow King, Lauson and LCT brands and serviced exclusively by Certified Parts and the existing TecumsehPower dealer/distributor network.
Jim Grafft said TecumsehPower’s failure created a void in the market that competitors such as Briggs & Stratton have tried to fill.
“But there’s still a need for these engines,” he said, noting that the Snow King line has powered more snowblowers than all other brands combined.
This year’s crop of snowblowers and engines have been built and shipped. Certified Parts and LCT are looking to next season.
“There are only a handful of customers that use these engines in significant volume, companies such as Husqvarna, MTD, Ariens and Toro,” he said. “As original equipment manufacturers, they have to see us get back into production.
“This is not a ‘build it and they will come’ deal. They need to see that something is happening here.”
Grafft said TecumsehPower was the only company that produced two-cycle engines for snowblowers, and that is a niche Certified Parts will fill when it builds as many as 10 different engines in Rock County.
In South Carolina, LCT will handle the high volume production of mass-market engines.
“We could have a prototype engine in six months that’s ready for winter testing,” Grafft said. “That’s important, because the OEMs (original equipment manufacturers) are not going to take a chance on something that could fail.”
At this point, Grafft is uncertain where Certified Parts will produce the engines.
They will be made in Wisconsin, he said, and most likely in Rock County. He would need about 250,000 square feet of manufacturing space, which he noted his available in a building he owns in Edgerton as well as others in Janesville.
In the meantime, Certified Parts has spread its recent acquisitions throughout buildings in the two communities.
Much of it, however, is in a building on South Jackson Street in Janesville, one of the city’s oldest manufacturing facilities. On the first floor, an injection-molding operation stamps out a variety of parts. Thousands of Tecumseh products and parts are stacked nearby in cardboard boxes.
Upstairs, workers meticulously build carburetors to service TecumsehPower products. The group started building 200 carburetors a day but can crank out as many as 800 when machining and parts allow.
“We’re having trouble keeping up with the tremendous appetite for carburetors,” Grafft said. “We’re probably 20,000 behind, but there is probably no part as critical as a carburetor.”
Earlier this year, Certified Parts bought the assets of Hoffco/Comet and has restarted production on South Jackson Street and in Edgerton. Hoffco produced lawn and garden equipment, while the Comet brand produced clutches, torque converters and other items for industrial and commercial applications.
That deal brought 45 semitrailers of material to Rock County.
“We’ve been busy since the acquisitions,” Grafft said. “We moved a lot of stuff, changed vendors, changed tooling, dealt with the problems in the Czech Republic, reinvented the assembly process and are getting up and running.”
Friday, September 17, 2010
Lawn-Mower Maker Files Counterclaim Against Exmark
September 16 - Briggs & Stratton has filed a counterclaim in U.S. District Court in Omaha against Beatrice lawn mower maker Exmark Manufacturing, which sued the Wisconsin company and Schiller Grounds Care Inc. in May alleging their mowers infringe on its patents.
In the filing Thursday in U.S. District Court in Omaha, Briggs & Stratton Power Products Group seeks a declaration from the court that it has not infringed Exmark's patent "either directly, indirectly, literally, or under the doctrine of equivalents." Briggs & Stratton also alleges the claims of its patent are invalid.
The ‘863 Patent, at issue, covers multiblade mowers equipped with baffles between blades that allow the mower to be converted from a mulching to a side-discharge mower.
Exmark, which has been in business in Gage County since 1982, manufactures professional turf care equipment including lawn mowers and lawn mower parts. It is a unit of the Toro Co.
In the filing Thursday in U.S. District Court in Omaha, Briggs & Stratton Power Products Group seeks a declaration from the court that it has not infringed Exmark's patent "either directly, indirectly, literally, or under the doctrine of equivalents." Briggs & Stratton also alleges the claims of its patent are invalid.
The ‘863 Patent, at issue, covers multiblade mowers equipped with baffles between blades that allow the mower to be converted from a mulching to a side-discharge mower.
Exmark, which has been in business in Gage County since 1982, manufactures professional turf care equipment including lawn mowers and lawn mower parts. It is a unit of the Toro Co.
Monday, September 13, 2010
Generac Weathers Economic Storm
September 10 -- When the power goes out during a heavy rainstorm and the sump-pump stops working, a homeowner can feel awfully helpless against the possibility of basement flooding.
Ditto the feeling when a power outage occurs in a cold spell or blizzard, and the furnace ceases to function.
Yet only 2% of households in the U.S. have an automatic standby generator as a backup plan in case of a power failure, said Generac Holdings Inc. Chief Executive Aaron Jagdfeld.
The way Jagdfeld sees it, that leaves a very large market of potential customers for Town of Genesee-based Generac.
"Every outage that happens, whether large or small, certainly drives awareness for our type of products," Jagdfeld said. "We are a generator manufacturer, so at some level having people experience an outage - or the fear of an outage - is really what drives our demand."
Generac, which went public this year, is one of the newest stocks in the Wisconsin Ticker, a Bloomberg News program that analyzes the value of a hypothetical $1,000 investment in publicly traded shares of state-based companies over various periods of time.
Founded in 1959 by Robert Kern in Waukesha County, Generac makes residential, commercial and industrial generators. They range from 800-watt portable units that can be used for camping and tailgating all the way to 9 megawatts - "basically small power plants," Jagdfeld said.
Portables operate on gasoline, and automatic units generally run on natural gas, propane or diesel fuel.
While Generac sells its generators to customers from telecommunications companies to supermarkets to hospitals, the largest part of its business remains generators that protect the property of homeowners during power outages.
Over the last 10 years, more and more people have deemed standby generators that automatically kick in when the power goes out a good investment, Jagdfeld said.
"The automatic standby products have really been kind of the growth engine for the company over the last decade," Jagdfeld said.
In 2009, Generac posted net income of $43 million on sales of $588 million. In the first half of 2010, sales revenue was down about 6% from a year earlier and net income decreased about 8%.
Jagdfeld acknowledged the economy has slowed Generac's growth, but he said "a lot of our pain" from the downturn is in the past.
He and York Ragen, chief financial officer, said perhaps a bigger challenge for Generac than the economy will be to make sure it keeps its longtime entrepreneurial nature and culture of cost containment intact now that the stock is publicly traded and the company is subject to more rules by securities regulators.
Generac shares went public last February at $13 a share, raising money that allowed the company to pay off debt from a leveraged buyout in 2006, when Kern sold his interest in the company to a private equity firm. The shares closed Friday at $13.36.
"Through bureaucracy and other things, you don't want to kill the entrepreneurial spirit of the company and weigh it down with things that are non-value added," Jagdfeld said.
Ragen said being able to retire debt after going public allowed him and Jagdfeld "to think about the long-term potential and future of Generac as opposed to thinking about our credit agreement."
"It's just a world of difference after the IPO here," Ragen said.
Generac sells its products through a variety of channels, including electrical contractors and retailers.
Almost all of its 1,400 employees work at one of three plants in the Town of Genesee, Eagle and Whitewater. Among those employees are more than 100 engineers.
"We spend an inordinate amount of time designing our systems to be as foolproof as you can possibility make a mechanical product," Jagdfeld said.
Ditto the feeling when a power outage occurs in a cold spell or blizzard, and the furnace ceases to function.
Yet only 2% of households in the U.S. have an automatic standby generator as a backup plan in case of a power failure, said Generac Holdings Inc. Chief Executive Aaron Jagdfeld.
The way Jagdfeld sees it, that leaves a very large market of potential customers for Town of Genesee-based Generac.
"Every outage that happens, whether large or small, certainly drives awareness for our type of products," Jagdfeld said. "We are a generator manufacturer, so at some level having people experience an outage - or the fear of an outage - is really what drives our demand."
Generac, which went public this year, is one of the newest stocks in the Wisconsin Ticker, a Bloomberg News program that analyzes the value of a hypothetical $1,000 investment in publicly traded shares of state-based companies over various periods of time.
Founded in 1959 by Robert Kern in Waukesha County, Generac makes residential, commercial and industrial generators. They range from 800-watt portable units that can be used for camping and tailgating all the way to 9 megawatts - "basically small power plants," Jagdfeld said.
Portables operate on gasoline, and automatic units generally run on natural gas, propane or diesel fuel.
While Generac sells its generators to customers from telecommunications companies to supermarkets to hospitals, the largest part of its business remains generators that protect the property of homeowners during power outages.
Over the last 10 years, more and more people have deemed standby generators that automatically kick in when the power goes out a good investment, Jagdfeld said.
"The automatic standby products have really been kind of the growth engine for the company over the last decade," Jagdfeld said.
In 2009, Generac posted net income of $43 million on sales of $588 million. In the first half of 2010, sales revenue was down about 6% from a year earlier and net income decreased about 8%.
Jagdfeld acknowledged the economy has slowed Generac's growth, but he said "a lot of our pain" from the downturn is in the past.
He and York Ragen, chief financial officer, said perhaps a bigger challenge for Generac than the economy will be to make sure it keeps its longtime entrepreneurial nature and culture of cost containment intact now that the stock is publicly traded and the company is subject to more rules by securities regulators.
Generac shares went public last February at $13 a share, raising money that allowed the company to pay off debt from a leveraged buyout in 2006, when Kern sold his interest in the company to a private equity firm. The shares closed Friday at $13.36.
"Through bureaucracy and other things, you don't want to kill the entrepreneurial spirit of the company and weigh it down with things that are non-value added," Jagdfeld said.
Ragen said being able to retire debt after going public allowed him and Jagdfeld "to think about the long-term potential and future of Generac as opposed to thinking about our credit agreement."
"It's just a world of difference after the IPO here," Ragen said.
Generac sells its products through a variety of channels, including electrical contractors and retailers.
Almost all of its 1,400 employees work at one of three plants in the Town of Genesee, Eagle and Whitewater. Among those employees are more than 100 engineers.
"We spend an inordinate amount of time designing our systems to be as foolproof as you can possibility make a mechanical product," Jagdfeld said.
Friday, September 3, 2010
Toro SEC Form 10-Q for Fiscal 3rd Quarter and Year-to-Date 2010 - Excerpts
Acquisitions and Divestiture
On April 30, 2010, the company completed the purchase of certain assets and assumed certain liabilities from USPraxis, Inc., a manufacturer of stump grinders, wood chippers, and log splitters for rental centers and landscape professionals. The addition of these products broadens and strengthens the company’s equipment solutions for the rental and landscape markets. The estimated purchase price was $2.5 million, which included a cash payment, the issuance of a long-term note, and an estimated earnout consideration.
On December 1, 2009, during the first quarter of fiscal 2010, the company’s wholly owned domestic distribution company completed the acquisition of certain assets and the assumption of certain liabilities of one of the company’s independent Midwestern-based distribution companies. During the first quarter of fiscal 2009, the company completed the sale of a portion of the operations of its company-owned distributorship.
These acquisitions and divestiture were immaterial based on the company’s consolidated financial condition and results of operations.
Investment in Joint Venture
On August 12, 2009, the company and TCF Inventory Finance, Inc. (TCFIF), a subsidiary of TCF National Bank, established a joint venture in the form of a Delaware limited liability company named Red Iron Acceptance, LLC (Red Iron) to provide inventory financing, including floor plan and open account receivable financing, to distributors and dealers of the company’s products in the U.S. and to select distributors of the company’s products in Canada.
The initial term of the joint venture will continue until October 31, 2014, subject to unlimited automatic two-year extensions thereafter. Either the company or TCFIF may elect not to extend the initial term or any subsequent term by giving one-year notice to the other party of its intention not to extend the term. Red Iron began financing floor plan receivables during the company’s fourth quarter of fiscal 2009.
The company sells to Red Iron certain inventory receivables, including floor plan and open account receivables, from distributors and dealers of the company’s products, at a purchase price equal to the face value of the receivables. As the company sells receivables to Red Iron, the company derecognizes non-recourse receivables from its books upon receipt of cash from Red Iron for receivables sold. During the first quarter of fiscal 2010, the company sold to Red Iron open account receivables for customers whose floor plan receivables were sold to Red Iron during the fourth quarter of fiscal 2009, as well as for customers whose floor plan receivables were previously financed by a third party financing company, in the aggregate amount of $18.1 million.
The company owns 45 percent of Red Iron and TCFIF owns 55 percent of Red Iron. The company accounts for its investment in Red Iron under the equity method of accounting. The company and TCFIF each contributed a specified amount of the estimated cash required to enable Red Iron to purchase the company’s inventory financing receivables and to provide financial support for Red Iron’s inventory financing programs. Red Iron borrows the remaining requisite estimated cash utilizing a $450 million secured revolving credit facility established under a credit agreement between Red Iron and TCFIF.
The company’s total investment in Red Iron as of July 30, 2010 was $10.6 million. The company has not guaranteed the outstanding indebtedness of Red Iron. The company has agreed to repurchase products repossessed by Red Iron, up to a maximum aggregate amount of $7.5 million in a calendar year. In addition, the company provided recourse to Red Iron for certain outstanding receivables, which amounted to $0.7 million as of July 30, 2010.
Red Iron purchased $627.0 million of receivables from the company during the first nine months of fiscal 2010, which includes the initial purchase of open accounts receivable in the aggregate amount of $18.1 million. As of July 30, 2010, Red Iron’s total assets were $212.5 million and total liabilities were $189.0 million. Red Iron’s net income from operations since inception through July 30, 2010 was $3.2 million.
RESULTS OF OPERATIONS
Overview
Our results for the third quarter of fiscal 2010 were strong with a net sales growth rate of 16.2 percent and a net earnings growth rate of 69.0 percent compared to the third quarter of fiscal 2009. Year-to-date net earnings increased 42.0 percent in fiscal 2010 compared to the same period in the last fiscal year on a year-to-date sales growth rate of 9.6 percent.
Shipments of most professional segment products were up primarily as the result of improved economic conditions, better availability for our products in the third quarter of fiscal 2010 compared to the second quarter of fiscal 2010, the successful introduction of new products, and customers who aligned their orders closer to retail demand, all of which resulted in increased demand for our products.
Residential segment net sales also increased due to continued strong demand resulting from customer acceptance of and additional product placement for zero turn riding products, as well as favorable weather conditions. In addition, shipments of snow thrower products were up for the year-to-date period of fiscal 2010 compared to the same period in the prior fiscal year due to increased demand from heavy snow falls during the winter season of 2009-2010 and the timing of the introduction of our new redesigned offering of snow thrower products that shipped to customers in the first quarter of fiscal 2010.
Net earnings as a percentage of net sales rose to 7.3 percent and 6.7 percent in the third quarter and year-to-date periods of fiscal 2010, respectively, compared to 5.0 percent and 5.1 percent in the third quarter and year-to-date periods of fiscal 2009, respectively. Higher gross margins, leveraging of selling, general, and administrative (SG&A) expenses, and a lower effective tax rate also contributed to the earnings improvement.
We continued to focus on reducing working capital and improving asset management. As a result of our efforts, we maintained our goal to reduce average net working capital (accounts receivable plus inventory less trade payables) as a percentage of net sales at a level below 20 percent, or “in the teens.” Our average net working capital as a percentage of net sales for the twelve months ended July 30, 2010 was 15.4 percent.
The impact of our efforts to reduce working capital resulted in a significant improvement of our cash flows from operating activities for the first nine months of fiscal 2010 compared to the first nine months of fiscal 2009. We continued to return value to our shareholders with our stock repurchase program, in which we repurchased $135.3 million of our stock for the nine months ended July 30, 2010.
We also paid a cash dividend of $0.18 per share during the third quarter of fiscal 2010, which was an increase of 20 percent over our cash dividend of $0.15 per share for the third quarter of fiscal 2009.
We are generally optimistic that the positive momentum from our third quarter should continue through the remainder of fiscal 2010. Based on our financial results for the first nine months of our fiscal 2010, we expect that we will achieve our goal of five percent profit after tax as a percentage of net sales for fiscal 2010 included in our one-year initiative, “5 in One: Back on Course,” which was intended to guide us through this year of anticipated recovery with an even stronger focus on the customer.
We believe we have taken the necessary proactive measures through our continued focus on asset management, reductions to our cost structure, and our commitment to product innovation, to position us well in the future if our markets continue to improve. We will continue to keep a cautionary eye on the global economies and pace and degree of recovery, retail demand, field inventory levels, commodity prices, weather, competitive actions, and other factors identified below under the heading “Forward-Looking Information,” which could cause our actual results to differ from our outlook.
Gross Profit
As a percentage of net sales, gross profit for the third quarter of fiscal 2010 increased to 35.2 percent compared to 33.9 percent in the third quarter of fiscal 2009. Gross profit as a percent of net sales for the year-to-date period of fiscal 2010 also increased to 34.4 percent compared to 33.5 percent for year-to-date period of fiscal 2009. These improvements were due to the following factors: (i) increased sales of our higher-margin products; (ii) lower manufacturing costs from increased plant utilization due to increased demand for our products; and (iii) resulting effects from cost reduction efforts implemented in fiscal 2009. Somewhat offsetting those positive factors was an increase in freight expense primarily attributable to higher fuel prices.
Professional
Net Sales. Worldwide net sales for the professional segment in the third quarter and year-to-date periods of fiscal 2010 increased 21.8 percent and 9.9 percent, respectively, compared to the same periods in the last fiscal year. Shipments of most professional segment products were up primarily as a result of improved economic conditions, better availability of our products in the third quarter of fiscal 2010 compared to the second quarter of fiscal 2010, the successful introduction of new products, and customers who aligned their orders closer to retail demand, all of which contributed to increased demand.
Sales for golf equipment and irrigation systems were also strong as a result of increased capital spending from golf course customers, resulting in higher demand for our products. Professional segment field inventory levels continue to decline and were down as of the end of the third quarter of fiscal 2010 compared to the end of the third quarter of fiscal 2009.
Net sales of micro-irrigation products were up for the year-to-date comparison due to our investments in additional manufacturing capacity that increased production of our water conserving products to meet the growing worldwide market demand.
Operating Earnings. Operating earnings for the professional segment in the third quarter and year-to-date periods of fiscal 2010 increased 58.9 percent and 23.5 percent, respectively, compared to the same periods in the last fiscal year. Expressed as a percentage of net sales, professional segment operating margin increased to 19.7 percent compared to 15.1 percent in the third quarter of fiscal 2009, and fiscal 2010 year-to-date professional segment operating margin also increased to 17.7 percent compared to 15.8 percent from the same period in the last fiscal year.
These profit improvements were primarily attributable to higher gross margins due to the same factors discussed previously in the Gross Profit section. In addition, a decline in SG&A expense as a percentage of net sales also contributed to the operating earnings improvement, which was due mainly to leveraging SG&A costs over higher sales volumes.
Residential
Net Sales. Worldwide net sales for the residential segment in the third quarter and year-to-date periods of fiscal 2010 increased 7.6 percent and 11.0 percent, respectively, compared to the same periods in the last fiscal year. These sales increases were due mainly to continued strong demand, resulting in part, from additional product placement for riding products, favorable weather conditions, and the introduction of our new cordless electric walk power mower, all of which contributed to an increase in demand for our residential products.
In addition, shipments of snow thrower products were up for the year-to-date period of fiscal 2010 compared to the same period in the prior fiscal year due to increased demand from heavy snow falls during the winter season of 2009-2010 and the timing of the introduction of our new redesigned offering of snow thrower products that shipped to customers in the first quarter of fiscal 2010.
Net sales of Pope irrigation products sold in Australia also increased for the year-to-date period of fiscal 2010 compared to the year-to-date period of fiscal 2009 due to additional product placement. Residential segment field inventory levels were down as of the end of the third quarter of fiscal 2010 compared to the end of the third quarter of fiscal 2009.
Operating Earnings. Operating earnings for the residential segment in the third quarter of fiscal 2010 were slightly down by 0.5 percent compared to the third quarter of fiscal 2009. Expressed as a percentage of net sales, residential segment operating margin decreased to 7.8 percent compared to 8.5 percent in the third quarter of fiscal 2009 due to higher SG&A expense mainly from increased marketing and warehousing expenses, somewhat offset by higher gross margins.
Operating earnings for the residential segment for the year-to-date period of fiscal 2010 increased 53.1 percent compared to the same period in the prior fiscal year. Expressed as a percentage of net sales, residential segment operating margin increased to 10.6 percent compared to 7.7 percent in the year-to-date period of fiscal 2009 due to higher gross margins primarily from increased sales volumes of higher-margin products and the resulting effects of cost reduction efforts implemented in fiscal 2009, somewhat offset by higher freight expense and an increase in SG&A expense.
Other
Net Sales. Net sales for the other segment include sales from our wholly owned domestic distribution company less sales from the professional and residential segments to that distribution company. In fiscal 2009, “Other” also included elimination of the professional and residential segments’ floor plan interest costs from Toro Credit Company (TCC), our wholly owned financing company.
With the establishment of Red Iron, net sales for the “Other” segment no longer includes corporate financing activities, including the elimination of floor plan costs from TCC, which results in lower net sales for the other segment.
Net sales for the “Other” segment were down for the third quarter and year-to-date periods of fiscal 2010 compared to the same periods in the last fiscal year by $2.5 million, or 32.6 percent, and $7.3 million, or 41.7 percent, respectively, as a result of the elimination of TCC floor plan interest costs, as well as lower net sales at our wholly owned distributorship.
Operating Losses. Operating losses for the other segment were up for the third quarter and year-to-date periods of fiscal 2010 by $2.4 million, or 12.6 percent, and $6.9 million, or 11.4 percent, respectively, compared to the same periods in the last fiscal year. These loss increases were primarily attributable to an increase in employee incentive compensation expense due to improved financial performance in fiscal 2010, as compared to fiscal 2009, and the elimination of TCC floor plan interest costs, as described above.
Somewhat offsetting those factors was a decline in expenses incurred last year for several legal matters that were not duplicated in fiscal 2010, income from our investment in Red Iron, overall reduced spending from our leaner cost structure as a result of actions we implemented in fiscal 2009, as well as elimination of costs incurred in fiscal 2009 for workforce adjustments.
On April 30, 2010, the company completed the purchase of certain assets and assumed certain liabilities from USPraxis, Inc., a manufacturer of stump grinders, wood chippers, and log splitters for rental centers and landscape professionals. The addition of these products broadens and strengthens the company’s equipment solutions for the rental and landscape markets. The estimated purchase price was $2.5 million, which included a cash payment, the issuance of a long-term note, and an estimated earnout consideration.
On December 1, 2009, during the first quarter of fiscal 2010, the company’s wholly owned domestic distribution company completed the acquisition of certain assets and the assumption of certain liabilities of one of the company’s independent Midwestern-based distribution companies. During the first quarter of fiscal 2009, the company completed the sale of a portion of the operations of its company-owned distributorship.
These acquisitions and divestiture were immaterial based on the company’s consolidated financial condition and results of operations.
Investment in Joint Venture
On August 12, 2009, the company and TCF Inventory Finance, Inc. (TCFIF), a subsidiary of TCF National Bank, established a joint venture in the form of a Delaware limited liability company named Red Iron Acceptance, LLC (Red Iron) to provide inventory financing, including floor plan and open account receivable financing, to distributors and dealers of the company’s products in the U.S. and to select distributors of the company’s products in Canada.
The initial term of the joint venture will continue until October 31, 2014, subject to unlimited automatic two-year extensions thereafter. Either the company or TCFIF may elect not to extend the initial term or any subsequent term by giving one-year notice to the other party of its intention not to extend the term. Red Iron began financing floor plan receivables during the company’s fourth quarter of fiscal 2009.
The company sells to Red Iron certain inventory receivables, including floor plan and open account receivables, from distributors and dealers of the company’s products, at a purchase price equal to the face value of the receivables. As the company sells receivables to Red Iron, the company derecognizes non-recourse receivables from its books upon receipt of cash from Red Iron for receivables sold. During the first quarter of fiscal 2010, the company sold to Red Iron open account receivables for customers whose floor plan receivables were sold to Red Iron during the fourth quarter of fiscal 2009, as well as for customers whose floor plan receivables were previously financed by a third party financing company, in the aggregate amount of $18.1 million.
The company owns 45 percent of Red Iron and TCFIF owns 55 percent of Red Iron. The company accounts for its investment in Red Iron under the equity method of accounting. The company and TCFIF each contributed a specified amount of the estimated cash required to enable Red Iron to purchase the company’s inventory financing receivables and to provide financial support for Red Iron’s inventory financing programs. Red Iron borrows the remaining requisite estimated cash utilizing a $450 million secured revolving credit facility established under a credit agreement between Red Iron and TCFIF.
The company’s total investment in Red Iron as of July 30, 2010 was $10.6 million. The company has not guaranteed the outstanding indebtedness of Red Iron. The company has agreed to repurchase products repossessed by Red Iron, up to a maximum aggregate amount of $7.5 million in a calendar year. In addition, the company provided recourse to Red Iron for certain outstanding receivables, which amounted to $0.7 million as of July 30, 2010.
Red Iron purchased $627.0 million of receivables from the company during the first nine months of fiscal 2010, which includes the initial purchase of open accounts receivable in the aggregate amount of $18.1 million. As of July 30, 2010, Red Iron’s total assets were $212.5 million and total liabilities were $189.0 million. Red Iron’s net income from operations since inception through July 30, 2010 was $3.2 million.
RESULTS OF OPERATIONS
Overview
Our results for the third quarter of fiscal 2010 were strong with a net sales growth rate of 16.2 percent and a net earnings growth rate of 69.0 percent compared to the third quarter of fiscal 2009. Year-to-date net earnings increased 42.0 percent in fiscal 2010 compared to the same period in the last fiscal year on a year-to-date sales growth rate of 9.6 percent.
Shipments of most professional segment products were up primarily as the result of improved economic conditions, better availability for our products in the third quarter of fiscal 2010 compared to the second quarter of fiscal 2010, the successful introduction of new products, and customers who aligned their orders closer to retail demand, all of which resulted in increased demand for our products.
Residential segment net sales also increased due to continued strong demand resulting from customer acceptance of and additional product placement for zero turn riding products, as well as favorable weather conditions. In addition, shipments of snow thrower products were up for the year-to-date period of fiscal 2010 compared to the same period in the prior fiscal year due to increased demand from heavy snow falls during the winter season of 2009-2010 and the timing of the introduction of our new redesigned offering of snow thrower products that shipped to customers in the first quarter of fiscal 2010.
Net earnings as a percentage of net sales rose to 7.3 percent and 6.7 percent in the third quarter and year-to-date periods of fiscal 2010, respectively, compared to 5.0 percent and 5.1 percent in the third quarter and year-to-date periods of fiscal 2009, respectively. Higher gross margins, leveraging of selling, general, and administrative (SG&A) expenses, and a lower effective tax rate also contributed to the earnings improvement.
We continued to focus on reducing working capital and improving asset management. As a result of our efforts, we maintained our goal to reduce average net working capital (accounts receivable plus inventory less trade payables) as a percentage of net sales at a level below 20 percent, or “in the teens.” Our average net working capital as a percentage of net sales for the twelve months ended July 30, 2010 was 15.4 percent.
The impact of our efforts to reduce working capital resulted in a significant improvement of our cash flows from operating activities for the first nine months of fiscal 2010 compared to the first nine months of fiscal 2009. We continued to return value to our shareholders with our stock repurchase program, in which we repurchased $135.3 million of our stock for the nine months ended July 30, 2010.
We also paid a cash dividend of $0.18 per share during the third quarter of fiscal 2010, which was an increase of 20 percent over our cash dividend of $0.15 per share for the third quarter of fiscal 2009.
We are generally optimistic that the positive momentum from our third quarter should continue through the remainder of fiscal 2010. Based on our financial results for the first nine months of our fiscal 2010, we expect that we will achieve our goal of five percent profit after tax as a percentage of net sales for fiscal 2010 included in our one-year initiative, “5 in One: Back on Course,” which was intended to guide us through this year of anticipated recovery with an even stronger focus on the customer.
We believe we have taken the necessary proactive measures through our continued focus on asset management, reductions to our cost structure, and our commitment to product innovation, to position us well in the future if our markets continue to improve. We will continue to keep a cautionary eye on the global economies and pace and degree of recovery, retail demand, field inventory levels, commodity prices, weather, competitive actions, and other factors identified below under the heading “Forward-Looking Information,” which could cause our actual results to differ from our outlook.
Gross Profit
As a percentage of net sales, gross profit for the third quarter of fiscal 2010 increased to 35.2 percent compared to 33.9 percent in the third quarter of fiscal 2009. Gross profit as a percent of net sales for the year-to-date period of fiscal 2010 also increased to 34.4 percent compared to 33.5 percent for year-to-date period of fiscal 2009. These improvements were due to the following factors: (i) increased sales of our higher-margin products; (ii) lower manufacturing costs from increased plant utilization due to increased demand for our products; and (iii) resulting effects from cost reduction efforts implemented in fiscal 2009. Somewhat offsetting those positive factors was an increase in freight expense primarily attributable to higher fuel prices.
Professional
Net Sales. Worldwide net sales for the professional segment in the third quarter and year-to-date periods of fiscal 2010 increased 21.8 percent and 9.9 percent, respectively, compared to the same periods in the last fiscal year. Shipments of most professional segment products were up primarily as a result of improved economic conditions, better availability of our products in the third quarter of fiscal 2010 compared to the second quarter of fiscal 2010, the successful introduction of new products, and customers who aligned their orders closer to retail demand, all of which contributed to increased demand.
Sales for golf equipment and irrigation systems were also strong as a result of increased capital spending from golf course customers, resulting in higher demand for our products. Professional segment field inventory levels continue to decline and were down as of the end of the third quarter of fiscal 2010 compared to the end of the third quarter of fiscal 2009.
Net sales of micro-irrigation products were up for the year-to-date comparison due to our investments in additional manufacturing capacity that increased production of our water conserving products to meet the growing worldwide market demand.
Operating Earnings. Operating earnings for the professional segment in the third quarter and year-to-date periods of fiscal 2010 increased 58.9 percent and 23.5 percent, respectively, compared to the same periods in the last fiscal year. Expressed as a percentage of net sales, professional segment operating margin increased to 19.7 percent compared to 15.1 percent in the third quarter of fiscal 2009, and fiscal 2010 year-to-date professional segment operating margin also increased to 17.7 percent compared to 15.8 percent from the same period in the last fiscal year.
These profit improvements were primarily attributable to higher gross margins due to the same factors discussed previously in the Gross Profit section. In addition, a decline in SG&A expense as a percentage of net sales also contributed to the operating earnings improvement, which was due mainly to leveraging SG&A costs over higher sales volumes.
Residential
Net Sales. Worldwide net sales for the residential segment in the third quarter and year-to-date periods of fiscal 2010 increased 7.6 percent and 11.0 percent, respectively, compared to the same periods in the last fiscal year. These sales increases were due mainly to continued strong demand, resulting in part, from additional product placement for riding products, favorable weather conditions, and the introduction of our new cordless electric walk power mower, all of which contributed to an increase in demand for our residential products.
In addition, shipments of snow thrower products were up for the year-to-date period of fiscal 2010 compared to the same period in the prior fiscal year due to increased demand from heavy snow falls during the winter season of 2009-2010 and the timing of the introduction of our new redesigned offering of snow thrower products that shipped to customers in the first quarter of fiscal 2010.
Net sales of Pope irrigation products sold in Australia also increased for the year-to-date period of fiscal 2010 compared to the year-to-date period of fiscal 2009 due to additional product placement. Residential segment field inventory levels were down as of the end of the third quarter of fiscal 2010 compared to the end of the third quarter of fiscal 2009.
Operating Earnings. Operating earnings for the residential segment in the third quarter of fiscal 2010 were slightly down by 0.5 percent compared to the third quarter of fiscal 2009. Expressed as a percentage of net sales, residential segment operating margin decreased to 7.8 percent compared to 8.5 percent in the third quarter of fiscal 2009 due to higher SG&A expense mainly from increased marketing and warehousing expenses, somewhat offset by higher gross margins.
Operating earnings for the residential segment for the year-to-date period of fiscal 2010 increased 53.1 percent compared to the same period in the prior fiscal year. Expressed as a percentage of net sales, residential segment operating margin increased to 10.6 percent compared to 7.7 percent in the year-to-date period of fiscal 2009 due to higher gross margins primarily from increased sales volumes of higher-margin products and the resulting effects of cost reduction efforts implemented in fiscal 2009, somewhat offset by higher freight expense and an increase in SG&A expense.
Other
Net Sales. Net sales for the other segment include sales from our wholly owned domestic distribution company less sales from the professional and residential segments to that distribution company. In fiscal 2009, “Other” also included elimination of the professional and residential segments’ floor plan interest costs from Toro Credit Company (TCC), our wholly owned financing company.
With the establishment of Red Iron, net sales for the “Other” segment no longer includes corporate financing activities, including the elimination of floor plan costs from TCC, which results in lower net sales for the other segment.
Net sales for the “Other” segment were down for the third quarter and year-to-date periods of fiscal 2010 compared to the same periods in the last fiscal year by $2.5 million, or 32.6 percent, and $7.3 million, or 41.7 percent, respectively, as a result of the elimination of TCC floor plan interest costs, as well as lower net sales at our wholly owned distributorship.
Operating Losses. Operating losses for the other segment were up for the third quarter and year-to-date periods of fiscal 2010 by $2.4 million, or 12.6 percent, and $6.9 million, or 11.4 percent, respectively, compared to the same periods in the last fiscal year. These loss increases were primarily attributable to an increase in employee incentive compensation expense due to improved financial performance in fiscal 2010, as compared to fiscal 2009, and the elimination of TCC floor plan interest costs, as described above.
Somewhat offsetting those factors was a decline in expenses incurred last year for several legal matters that were not duplicated in fiscal 2010, income from our investment in Red Iron, overall reduced spending from our leaner cost structure as a result of actions we implemented in fiscal 2009, as well as elimination of costs incurred in fiscal 2009 for workforce adjustments.
Certified Parts Corp Signs Agreement with LCT for Manufacture of Air-Cooled Engines
Plans to Introduce Snow King and Complete Engine Lineup
Janesville, WI (September 1, 2010) – Certified Parts Corporation (CPC) of Janesville, WI has announced it has entered into an agreement with LCT, (Liquid Combustion Technology) of Travelers Rest, SC to jointly manufacture air-cooled engines for the outdoor power equipment market.
The agreement announced today will provide CPC with engineering, manufacturing, and sales capabilities allowing it to reintroduce the Snow King line of snow thrower engines and other engines formally manufactured and sold by TecumsehPower.
The engines will be exclusively represented by LCT, and sold under the Snow King, Lauson and LCT brands and serviced exclusively by CPC and the existing TecumsehPower dealer/distributor network. Traditionally, the Snow King line of engines has powered more snow throwers than all other brands combined. Financial terms of the agreement were not disclosed.
LCT’s current horizontal 4-stroke gasoline engine product offering will be extended with this agreement and will also allow CPC and LCT to provide single cylinder and V-twin vertical engines to outdoor power equipment manufacturers.
LCT only manufactures utility engines with sales and distribution operations throughout the USA, Canada, China and Europe. Additional information on LCT can be found at their website: www.LCTUSA.com.
Certified Parts Corporation purchased certain assets of TecumsehPower Company in 2009, and provides production engines and parts for TecumsehPower (Lauson) engines. In 2010, CPC purchased the assets of Hoffco/Comet and has restarted production in their Wisconsin facilities. CPC is also a large supplier of vintage parts for the recreational vehicle industry. More information regarding CPC can be found at www.CertifiedPartsCorp.com
Janesville, WI (September 1, 2010) – Certified Parts Corporation (CPC) of Janesville, WI has announced it has entered into an agreement with LCT, (Liquid Combustion Technology) of Travelers Rest, SC to jointly manufacture air-cooled engines for the outdoor power equipment market.
The agreement announced today will provide CPC with engineering, manufacturing, and sales capabilities allowing it to reintroduce the Snow King line of snow thrower engines and other engines formally manufactured and sold by TecumsehPower.
The engines will be exclusively represented by LCT, and sold under the Snow King, Lauson and LCT brands and serviced exclusively by CPC and the existing TecumsehPower dealer/distributor network. Traditionally, the Snow King line of engines has powered more snow throwers than all other brands combined. Financial terms of the agreement were not disclosed.
LCT’s current horizontal 4-stroke gasoline engine product offering will be extended with this agreement and will also allow CPC and LCT to provide single cylinder and V-twin vertical engines to outdoor power equipment manufacturers.
LCT only manufactures utility engines with sales and distribution operations throughout the USA, Canada, China and Europe. Additional information on LCT can be found at their website: www.LCTUSA.com.
Certified Parts Corporation purchased certain assets of TecumsehPower Company in 2009, and provides production engines and parts for TecumsehPower (Lauson) engines. In 2010, CPC purchased the assets of Hoffco/Comet and has restarted production in their Wisconsin facilities. CPC is also a large supplier of vintage parts for the recreational vehicle industry. More information regarding CPC can be found at www.CertifiedPartsCorp.com
Swisher Acquisition Puchases Assets of Swisher Mower & Machine
August 25, 2010 – Swisher Acquisition, Inc. (“SAI”) an affiliate of Blackstreet Capital, a Chevy Chase, MD, private equity firm, announced today that it has purchased the assets of Swisher Mower & Machine Company, Inc.
“We are impressed by Blackstreet’s commitment to excellence and are confident this transition will occur with minimal disruption,” said Swisher’s CEO, Wayne Swisher. “Together, we plan to build on the company’s storied history in ways that benefit employees, customers and suppliers as well as our community.”
“We are very excited to be working with the talented and dedicated team that has made the Swisher family of products amongst the very best in their industry; this is an exciting addition to our portfolio,” said Aldus H. Chapin II, Managing Director of Blackstreet Capital, and Chairman of SAI.
SAI manufactures a variety of lawn and garden power equipment including zero-turn riding mowers, ATV mowers, log splitters and high wheel string trimmer mowers and a wide range of lawn tractor and ATV attachments. Swisher is the leading brand name in ATV accessories and maintains a prominent position in the lawn and garden equipment industry. SAI will distribute products to over 2000 outlets worldwide from its Warrensburg facility.
As the proud manufacturer of the Swisher branded products, SAI intends to continue as an employer in the community by maintaining its headquarters and primary manufacturing facility in Warrensburg.
About Blackstreet Capital
Blackstreet Capital (www.blackstreetcapital.com) is a Chevy Chase, MD based private equity firm with over $200 million of capital under management. Blackstreet focuses on control buyouts of companies that are either underperforming, in out-of-favor industries, or are undergoing some form of transition. Blackstreet seeks investments in a range of industries, including manufacturing/distribution, restaurants, specialty retail, business services, and health care.
About Swisher Mower And Machine Company, Inc.
Swisher Mower and Machine, founded in 1945 and based in Warrensburg, MO produces specialty lawn and garden equipment and ATV/UTV accessories ranging from tillers to mowers and lawn vacs to its patented QuickSwitchTM hitch for ATV/UTVs.
“We are impressed by Blackstreet’s commitment to excellence and are confident this transition will occur with minimal disruption,” said Swisher’s CEO, Wayne Swisher. “Together, we plan to build on the company’s storied history in ways that benefit employees, customers and suppliers as well as our community.”
“We are very excited to be working with the talented and dedicated team that has made the Swisher family of products amongst the very best in their industry; this is an exciting addition to our portfolio,” said Aldus H. Chapin II, Managing Director of Blackstreet Capital, and Chairman of SAI.
SAI manufactures a variety of lawn and garden power equipment including zero-turn riding mowers, ATV mowers, log splitters and high wheel string trimmer mowers and a wide range of lawn tractor and ATV attachments. Swisher is the leading brand name in ATV accessories and maintains a prominent position in the lawn and garden equipment industry. SAI will distribute products to over 2000 outlets worldwide from its Warrensburg facility.
As the proud manufacturer of the Swisher branded products, SAI intends to continue as an employer in the community by maintaining its headquarters and primary manufacturing facility in Warrensburg.
About Blackstreet Capital
Blackstreet Capital (www.blackstreetcapital.com) is a Chevy Chase, MD based private equity firm with over $200 million of capital under management. Blackstreet focuses on control buyouts of companies that are either underperforming, in out-of-favor industries, or are undergoing some form of transition. Blackstreet seeks investments in a range of industries, including manufacturing/distribution, restaurants, specialty retail, business services, and health care.
About Swisher Mower And Machine Company, Inc.
Swisher Mower and Machine, founded in 1945 and based in Warrensburg, MO produces specialty lawn and garden equipment and ATV/UTV accessories ranging from tillers to mowers and lawn vacs to its patented QuickSwitchTM hitch for ATV/UTVs.
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