ZIMMERMAN SIGN COMPANY

ZIMMERMAN SIGN COMPANY

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Company Overview
This American company manufactures site identification products and provides installation services. The company has its registered office in Tyler, Texas. It is one of North America’s largest manufacturers of sign and site identity products.
The company manufactures and sells a variety of signage products for large, national, and regional retailers. Its products range from large highway-located site identification signs, to medium-sized brand and product identification signs, building fascia, and smaller signs for automatic teller machines, gasoline pump toppers and other specialty purposes. Majority of the company’s revenue is derived from sales to customers in the petroleum marketing industry. The company’s major petroleum industry customers are CITGO and Conoco. In addition, the company also supplies customers in other industries, of which the automotive, general retail and financial services groupings are the most significant. Its major automotive industry customers include Ford Motor Company. Most of the company’s sales have been to American-based customers, however, the company has also sold product to and managed installation for international customers.
The company also produces steel poles for certain of its sign products. Typically, its products carry underlying warranties from paint, plastic and electrical component manufacturers together with a one-year warranty, covering workmanship defects. In addition, the company provides a complement of related services, including graphics design, production engineering, expedited manufacturing and delivery, and installation management and maintenance.
Business Summary
Zimmerman Sign Company operates as a manufacturer of site identification products, with a primary focus on serving large national and regional retailers. Zimmerman manufactures and sells a variety of signage products, which range from large highway-located site identification signs to medium-sized brand and product identification signs and building fascia and smaller signs for automatic teller machines, gasoline pump toppers and other specialty purposes. The Company also provides installation services. A majority of its revenue is derived from sales to customers in the petroleum marketing industry. Zimmerman also supplies customers in other industries, of which the automotive, general retail and financial services groupings are the most significant. Most of the Company’s sales have been to United States-based customers, however, Zimmerman has also sold product to and managed installation for international customers.
Description and history
Zimmerman Sign Company operates as a manufacturer of site identification products, with a primary focus on serving large national and regional retailers. Zimmerman manufactures and sells a variety of signage products, which range from large highway-located site identification signs to medium-sized brand and product identification signs and building fascia and smaller signs for automatic teller machines, gasoline pump toppers and other specialty purposes. The Company also provides installation services. A majority of its revenue is derived from sales to customers in the petroleum marketing industry. Zimmerman also supplies customers in other industries, of which the automotive, general retail and financial services groupings are the most significant. Most of Zimmerman’s sales have been to United States-based customers, however, Zimmerman has also sold product to and managed installation for international customers.

Zimmerman’s products include exterior illuminated signs, which vary from high-rise site identification signs (100 to 250 square feet) to medium-sized, onsite identification signs (40 to 100 square feet), as well as specialty products, such as building fascia, building mounted letters, gasoline pump toppers and spandrels and automatic teller machine signage. The Company also produces steel poles for certain of its sign products. Typically, Zimmerman’s products carry underlying warranties from paint, plastic and electrical component manufacturers together with a one-year warranty, covering workmanship defects. The Company has not experienced any material expense as a result of warranty claims. In addition, Zimmerman provides a full complement of related services, including graphics design, production engineering, expedited manufacturing and delivery, installation management and maintenance.

In 2000, the Company had two petroleum industry customers that accounted for more than 10% of net sales: Citgo, which accounted for approximately 12% of net sales and Conoco, which accounted for approximately 14% of net sales. The Company also had one automotive manufacturing customer, Ford Motor Company, which accounted for approximately 14% of net sales in 2000. No other major customer accounted for more than 10% of sales in 2000. The Company contracts with its major customers under a variety of arrangements, which range from one- to three-year contracts. Many contracts have 30-day cancellation provisions.

Zimmerman’s principal competitors are Chandler Signs Incorporated, Collins Sign Company, Inc., Cummings Incorporated, Dualite, Inc., Everbrite, Inc., Federal Sign Company, Milwaukee Sign Company, Inc., Heath and Company, Inc., Plasti-Line, Inc., Sign Resource and Young Electric Sign Company.

Business Line
Manufactures site identification products and provides installation services
Subsidiary

Advisor
KPMG LLP
IPO date

US SIC Code
3993
Company Address
9846, Highway 31 East

City province or state postal code
75705, TYLER, TX
Phone: +1 903 535 7400
Fax:
Country address: UNITED STATES OF AMERICA
Website url: