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No hockey trash talk this Winter, the Av's are playing well
but we don't want to jinx them like in past years. We've scheduled
our CHB Ski Day for March 17th and, this time, several of
our portfolio company CEO's, including David Jacobs from Spyder,
are coming. All of us, except Tad, will be rooting for David
during the NASTAR racing portion of the day.
At the end of December we made a $9.0 million investment in
Alternative Technology, Inc. For 2000, the company had revenues
of just under $100 million. ATI distributes software and equipment
and provides training services to value-added resellers in
four key market segments; server-based computing, wireless
broadband, internet security and internet quality of service.
Their suppliers include, Citrix, Wyse, Breezecom, Proxim,
Radguard, Packeteer and Sitara. The company has grown rapidly
over the last ten years and sought outside capital to support
further growth and to provide its founders with liquidity
for a small portion of their investment. Demand for computing
and telecom products has certainly softened but ATI still
expects to be up significantly in 2001 based on a mix of products
and services that are focused on lowering the total ownership
cost of computing and improving the productivity and security
of existing bandwidth.
MACTEC has successfully completed its integration of Harding
Lawson Associates and is now focused on key opportunities
in the market for commercial nuclear power plant decommissioning
and demolition ("D&D"). Over half of the licenses for nuclear
power plants in the United States are set to expire over the
next 20 years creating a large and growing market for D&D
services. Each plant requires between $300 - $500 million
in work to dispose of properly, which will lead to a market
for D&D services of over $1 billion per year by 2004. MACTEC
has provided services to 48 of the commercial nuclear power
sites and nearly all of the major DOE installations in the
United States. The company has a very strong position in the
race to address the needs of this developing market.
Spyder continues to enjoy great success in the ski apparel
market. Sales will be up 35% over last year and the brand
is creating great buzz with retailers. We want to thank all
of you who joined in the snow dancing this winter -- it worked!
Spyder's retailers are seeing strong sell through and with
the 2002 Olympics coming up in Salt Lake City, management
is looking forward to another strong year.
Champion Technologies, Inc. will finish its fiscal year ending
March, 2001 up about 35% over last year. The slowdown in the
telecom infrastructure build out that began in the Fall has
provided the company with some breathing space to address
manufacturing capacity and outsourcing opportunities. Although,
as you would expect, we hope the slowdown doesn't give the
company too much breathing space.
On the new deal front we have several proposals under consideration
by management teams but nothing under letter of intent at
this time. We revised our web site in the Fall and invite
you to take a look at the new format. As always, please call
us to discuss investment opportunities within the closely-held
and family owned business market. We look for transactions
where we can invest equity capital in established companies
with $20 million or more in revenue. Should you call, we guarantee
you a thoughtful and timely response.
Tad Kelly, John Flanigan, Blake Morris, Grant Clayton, Sean
McClenaghan, Steve Greene & Nancy Thayer
511 Sixteenth
Street, Suite 600 Denver, CO 80202
Telephone: (303) 571-0100 Facsimile: (303) 571-0114
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