Maax making push into global marketplace: North Amenca's sixth largest manufacturer of bathroom products and fixtures eyes growth

Money Digest, Oct, 2002

Maax Inc., (TSX: MXA; Recent price: $19.31) designs, develops, manufactures and distributes quality bathroom fixtures bathtubs, whirlpool baths, shower walls, bases and doors, spas, medicine cabinets and kitchen cabinets for residential markets and bathtubs and showers for institutional markets. The company's products are supported by its permanent Research and Development Centre.

Among the top six in North America

Maax employs over 2,300 people and has 20 plants and eight distribution centres located throughout North America. MAAX is 'the largest manufacturer of bathroom products and fixtures in Canada and is the sixth largest in the U.S. Nearly two-thirds of its sales are to the U.S. Although currently only 3% of its sales are derived outside of North America, Maax intends to channel its efforts into establishing a leadership position worldwide through its acquisition strategy and through forging strategic alliances with other companies.

In recent years, Maax has posted consistent growth in its business volume and market share through selective acquisitions, development of new and innovative products and strategic marketing. The company's current strategy is to focus on the internal growth of the entities that are already part of the group, while targeting strategic acquisitions to further strengthen its market position.

Since the company was first listed on the stock exchange, Maax has achieved compound annual growth of 35.7% in sales and 33.4% in net income.

Maax Inc.

TSX Symbol              MXA

Recent Price         $19.31
Price/Earnings         18.0
Price/Sales             0.9
Price/Book              1.8
Dividend Yield 0.7%
Price/Cash Flow         9.8