Its revenue stream is expected to come from a strong market for replacement equipment and a trend toward higher air quality in the residential and commercial sectors. But Goodman cites signs of a slowdown in housing and price volatility in the commodity market.

According to the company, replacement HVAC equipment accounts for roughly 70 percent of Goodman's sales.

The news is welcome for U.S. Goodman dealers, including Tom Hudy, sales manager for Don Stevens Inc., Eagan, Minn. "I think Goodman's major competitor's are going to be surprised at how well run an organization it is," he said. "They will be No. 1 in market share. The only question is when, not if."

IT'S A BUSINESS DECISION

When The NEWS reported on the Apollo purchase in its Nov. 24, 2004 issue, Goodman dealer Ben Stark of Stark Air, Euless, Texas, said the deal made sense because Goodman was a debt-free company that was very well managed from a business standpoint. He added that Apollo had "little or no HVAC background, and it looks like an investment buyout."

The latest news came as no surprise to one Goodman contractor, who also viewed the IPO as a good business decision and one that Apollo had the right to make. "I would think that any company in America would have the right to offer stock to the public," said Don Lloyd, president of DHL Home Services, Beltsville, Md. "Therefore if Goodman thinks it's time, then good luck to them."

David Thompson, president of Glacier Air Conditioning of Palm Beach, Boynton Beach, Fla., stated that it would be business as usual for him, while it is business as usual for the corporate world.

"Business as usual in the corporate world to me is really about doing what it takes to survive, grow, and make a profit," he said. "All businesses should be focused on what it takes to be successful. This particular [IPO] could be one or all of the following: refinancing the debt from the purchase last year, generating revenues to expand and grow, or positioning the business for a profitable resale.

"Whether they are ‘moving the cheese' from the [Apollo] purchase or generating funds for expansion or positioning to flip the business is what I view as business as usual in the corporate world. My company was for sale the day that I bought it and I have been focused on capitalizing on that investment ever since. Whatever the case may be, I don't believe the Goodman IPO will have a direct impact on my business or the industry one way or the other."

Goodman is counting on a healthy new residential construction market, especially in the Southern United States, where the company estimates that 99 percent of new homes have air conditioning installed.

Goodman products are manufactured at plants in Texas and Tennessee and are sold through approximately 700 locations across North America.

For more information, visit www.goodmanmfg.com.

Publication date: 03/06/2006