In case you missed the announcement, CubCrafters is offering shares of the company to the public. The ultimate goal is to raise $50 million.
Those funds will be used to increase production to reduce the company’s order backlog, increase the pace of innovation, expand manufacturing infrastructure, add regional service centers, and accelerate international opportunities, according to CubCrafters officials.
All words and phrases you’d expect to read in an investment prospectus.
But what drew my eye was CubCrafters’ revenue growth. In 2001, it reported revenue just over $5 million. By 2021 that grew to more than $30 million — a six times increase in two decades. (Source: Page 16 of Reg A+ Public Offering Presentation).
Not too shabby.
Interestingly, to me at least, the presentation also details the impact the nosewheel version of the XCub has had. It represents 58% of 2021 sales for that model.
CubCrafters research indicates that just 15% of all pilots “have tailwheel capabilities, endorsement, or interest.”
By moving the third landing gear from the tail to the nose, CubCrafters now has a model that can reach “an additional 85% of the market.”
“Skate to where the puck is going to be, not where it has been,” said hockey great Wayne Gretzky.
When I was confirming that quote, I came across a blog titled, “There’s One Little Problem With That Famous Wayne Gretzky Quote About Pucks.” Author Dan Oshinsky writes, “But there’s a flip side to Gretzky’s mantra, and I think it’s just as interesting: Everyone’s trying to skate to where the puck is going, and when they make their move, they usually move in packs.”
Oshinsky’s business, Inbox Collective, is an email consultancy. He helps companies like mine make sure our emails make it to your inbox. His reference to moving in packs may hold for tech companies but, I believe, is less apropos in the aviation marketplace.
What other manufacturer today makes and sells a certified aircraft with both nosewheel and tailwheel options for the same model? There may be a pack, but it is a really small one.
In addition to selling really cool planes, CubCrafters is also selling a lifestyle. And that lifestyle appears to be a growing one.
To be clear, I have not invested in this offering and have no plans to do so.
Personally, I think this is a brilliant move for CubCrafters. I hope it turns out well for the company.
I am reluctant to invest in a company when I cannot review their income statement and their balance sheet.
They do produce great aircraft that sell for a high price, but I don’t know if they are making any profit on the kits or completed aircraft that they sell.?
Also, the new Vans RV-15 may take some percent of their future sales.
So, I’ll wait to see what the IPO price is once it starts trading on the public exchanges, and I can see their financial docs.