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IdleAire Technologies(IDLE)

 
123Jump Rating:   Underwriters: J. P. Morgan & Co.
      Jefferies & Company, Inc.
Status: Filed  
 
Address: 410 N. Cedar Bluff Road, Suite 200,
FiledDate: 09/18/2007
  Knoxville,
   
  TN 37923
Filed Price Range ($):
       
Telephone: 865-342-3640 Filed Offer Amount ($ Million): $100.00
       
Fax: Shares Offered (Millions):
       
Websites: www.idleaire.com Shares Outstanding (Millions):
       
Management: Michael Crabtree, Pres./CEO
IPO Date:
  Lynn Youngs, COO
   
  Paul Boyd, CFO
Final Offer Price ($): $0.00
       
Industry: Miscellaneous Final Offer Size (Millions of Shares): 0.00
       
Employees: 1,444 Final Offer Amount ($ Million): $0.00
       
Competitors: S-1 Forms:
     
   
       
     
     
     
       
 
- Avoid        - Value Gap        - Short-Term Growth        - Long-Term Growth        - Long-Term Value

Company Links
Investor Relations Corporate / History Profile Executives Products Services
Business Environment

According to the American Trucking Associations, or the ATA, the US trucking industry hauled 10.7 billion tons of freight and generated total revenue of approximately $623.0 billion in 2005, representing approximately 69% of total US freight volume and 84.0% of the nation’s total freight bill. The ATA estimates that the US trucking industry will increase tonnage and revenue at annual growth rates of 2.4% and 5.6%, respectively, through 2017.

The US trucking industry is highly fragmented. In August 2005, the DOT had registered more than 564,000 carriers including for-hire fleets, private truck fleets and independent owner operators. According to the ATA, 96% of these carriers operate 20 or fewer trucks and the largest 2,700 truck fleets in the US operate more than 700,000 trucks. In addition, the ATA estimates that there are 2.7 million heavy-duty trucks operating in the United States.

According to NATSO, Inc., formerly the National Association of Truck Stop Operators, the travel center industry generates annual revenue of approximately $40 billion. Despite a recent trend towards consolidation, the travel center industry remains highly fragmented.

Company Strategy
The Company is the leading provider of comprehensive in-cab idle-reduction services to the heavy-duty trucking industry.

Product/Services Portfolio
The Company delivers its services through its ATE system. The Company’s ATE system consists of an in-cab service module that is connected via a flexible, insulated hose to an external HVAC unit mounted on a truss structure above parking spaces

The Company’s ATE service module includes a Pentium-class microcomputer with a touch screen and color liquid crystal display, filtered air supply and return vents, electrical outlets, and ports for satellite television, telephone, Ethernet, and USB connections for computer accessories.

The Company delivers basic and premium services through its ATE system. The Company’s basic services include:

In-cab heating, ventilation and air conditioning, or HVAC—The Company’s in-cab HVAC service allows the driver to thermostatically control the in-cab temperature and breathe clean filtered air without the need to idle the truck engine, waste diesel fuel and pollute the environment with diesel air emissions;

Electric power—Drivers can power small appliances through the Company’s ATE system and also use the ATE system to heat the engine block during periods of cold weather;

Satellite television—The Company offers 22 channels of satellite television, two local network channels and two IdleAire channels with its basic service;

Unlimited local telephone calls;

Internet access—Drivers can access the Internet using the touch screen interface or an optional keyboard via the USB connectors;

24/7 customer support—The Company’s customer support call center may be accessed through its ATE service module or by telephone, and provides service and support to drivers 24 hours a day, seven days a week.

Once a driver has connected to the Company’s ATE system with the purchase of the basic services, the Company offers the driver a number of premium services. The Company’s premium services currently include:

Expanded satellite television channel selection—Drivers can access 44 additional satellite television channels;

Movies-on-demand—Drivers can select from a menu of over 70 current and favorite movies of a wide variety;

High-speed Ethernet and wireless Internet access;

Unlimited long distance telephone service;

Computer-based driver skill and safety training—Since June 2007, the Company has provided remote delivery of computer-based driver skill and safety training courses through its ATE system.

Investment Analysis
Total net revenues increased $10.7 million or 253% for the six months ended June 30, 2007 compared to the six months ended June 30, 2006.

Ancillary product sales increased $0.6 million or 191% for the six months ended June 30, 2006 compared to the six months ended June 30, 2007.

Direct site operating costs (excluding depreciation and amortization) increased $17.0 million or 262% for the six months ended June 30, 2006 as compared to the six months ended June 30, 2007.

Net interest expense increased $4.4 million for the six months ended June 30, 2007 compared to the six months ended June 30, 2006.

 

 

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