Cell: (206) 465-5813

Office: (360) 598-2830

Email: [email protected] 

 

Headquartered near Seattle, Washington, Rogue specializes in the manufacturing of railings and structural steel, catering to single and multifamily construction, commercial, and government projects. What sets us apart is our unwavering commitment to cutting-edge technology and a continuous improvement ethos, driving an ongoing evolution in our processes.
 

In a recent development, we've entered discussions with an aluminum extrusion partner to streamline the production of specific components for our branded products. This strategic collaboration aims to reduce both costs and production time for elements integral to our railing systems. Moreover, Rogue harnesses various tools and systems, empowering our staff to intricately cut parts and assemble them with computer-controlled precision.

 

Notably, we've just completed the setup of our proprietary powder coating facility, making Rogue the proud owner of the largest powder coating oven on the Olympic Peninsula. These advancements, coupled with significant enhancements in our back-office processes, have consistently shortened our manufacturing timeline. This reduction in time not only lowers costs but also contributes to a healthier bottom line for Rogue.

 

In the past two years, Rogue has meticulously crafted a distinguished series of railing products, born from a synthesis of industry insights, customer preferences, and value engineering. Departing from the inefficiency of crafting custom railings on a case-by-case basis, we undertook a comprehensive approach.

By gathering input from engineers, architects, customers, and general contractors, we identified the most sought-after railing styles. Our team then embarked on a value-engineering journey, collaborating closely with materials and engineering partners to refine designs. The result is our current branded product line, meticulously optimized for maximum value without compromising on style or structural integrity.

 

Primarily crafted from aluminum, with a select few incorporating steel, our designs boast diverse in-fill options, including glass, cable, and metal pickets. The overwhelmingly positive feedback attests to the success of our approach, with rare requests for deviations from our standardized products, typically confined to larger multi-family projects built to specific specifications.

 

Rogue extends this innovative methodology to an expanding range of products catering to multi-family projects. Soon to be included in our branded series are balconies, canopies, trash enclosures, aluminum deck framing, and various other product types. For a closer look at our offerings, complete with pictures and detailed specifications, visit our website at https://roguefabricatorsinc.com.

 

Rogue strategically navigates three key markets: Single Family Homes, Multi-Family Projects, and Government Projects. While all segments exhibit strength, the undeniable star performer is the Multi-Family Projects arena, consistently surpassing market expectations.

Internal market research indicates a robust trajectory for multi-family projects, with 2022 witnessing a 36-year high in construction. Anticipating the resolution of material and labor constraints from COVID-19, we foresee sustained growth in this sector. Major metro areas, hampered by slow zoning updates and high mortgage rates, are witnessing a shift in preference toward more affordable options, aligning with the rising demand for multi-family living.

 

The government project landscape, both military and civil, experienced a surge, propelled by the recent infrastructure bill allocating funds to our service area. Rogue uniquely positions itself to bid competitively on these civil projects, encountering minimal competition.

 

In the Single-Family market, where home sales and building rates have slowed, Rogue strategically taps into home improvement projects, providing a steady income stream between multi-family ventures and government contracts. Notably, our expertise in fabricating and erecting structural steel not only gives us an unappareled edge in larger residential projects but also cements our advantage in multi-family endeavors.

 

Projections from Newmark's U.S. Multi-family Capital Markets Report affirm the continued growth of multi-family demand in the latter half of 2023 and the initial months of 2024. Absorption rates surged, nearly quadrupling that of 2022, and record deliveries in the first half of 2023 signify a thriving market. Newmark anticipates sustained high deliveries through 2025, with a 51.1% YoY increase in total deliveries for 2023.

 

Having disrupted the industry with our branded products and high-tech cost and timeline control, Rogue achieved nearly 5x growth in sales in 2023. The imperative now is expansion to fully capitalize on these market dynamics. The stage is set for Rogue to seize the momentum as an industry leader.

 

In the challenging years of 2021 and 2022, Rogue strategically transformed adversity into opportunity, focusing on procedural development, staff augmentation, and market readiness. Notwithstanding, revenue endured at $1,372,000 in 2021 and $1,350,000 in 2022.

A remarkable turnaround unfolded in 2023, with anticipated year-end revenue closing at approximately $2,700,000, reflecting a doubling of figures year over year.

 

Forecasts for profitability in the coming year are supported by a robust financial foundation:

 

$1.8 million Work-in-Progress as of Nov. 30th, 2023.

$1.856 million from the GC#1 project #2 in California.

$2.359 million from a subsequent GC#1 project also in California.

$4.3 million from the GC#2 project in Montana.

Additional projects slated for the next year total $10.3 million, with a promising outlook as Rogue plans to bid on $49 million in identified jobs for 2024, anticipating a high success rate—the work for GC#1 alone positions Rogue for profitability over the next three years.

 

For a detailed breakdown of recent larger sales and comprehensive projections for 2024, refer to the subsequent section.

 

In 2023, Rogue achieved sales of $10.3 million, a remarkable leap forward from the previous year, setting the stage for robust cash flow as these projects materialize. With the infusion of private investment to fortify administrative and manufacturing needs, we anticipate an almost doubling of sales and revenue year over year. Here's a breakdown of significant projects secured and in the pipeline for 2024:

 

 

GC#1

 

Project Details: GC#1

Project: Initiated in February 2023, a 560-unit multi-family development in Kitsap county WA., valued at $2.9 million.
Project: A new venture in Napa Valley, California, worth $1.8 million, expected to materialize from a submitted letter of intent in December 2023.

Future Prospects: Discussions are ongoing for 10 additional projects across Northern California, Arizona, Colorado, Texas, and the greater Northwest. Collaboration with GC#1's architect for the inclusion of our branded railing products in their job specifications for their entire company.

 

 

 

GC#2

 

Project Details: GC#2

Montana Project: Anticipated win for a $4.3 million job in Montana, progressing through city approval in 3 phases, with the contract for the first phase executed and signed in December 2023, Phase 2 is to be signed and executed by 2-20-2024. Phase 3 is to be signed and executed by 3-24-2024. 

Future Endeavors: Invitation to bid on a 9-story residential project in the first half of 2024. Positive interactions with multiple general contractors and the State for 9 new projects in Montana with GC#2 during 2024, emphasizing their excitement for Rogue's involvement.

 

 
GC#3

 

Project Details:  48 Story Highrise

Seattle Residential Project: Bid submitted for $5.3 million in railings and structural steel for a 48-story residential project expected to commence in the first two quarters of 2024.

 

 GC#4

 

Project Details: Multi-family 

Seattle Project: Initial engagement with a $300k job in Seattle, laying the foundation for a potential $45 million per year business year over year. Currently bidding on three projects in their portfolio.

 

 

GC#5

 

Project Details: Multi-family

Utah Project: Commencing with a smaller job in the $300k range in Utah, forming the initiation of the relationship with GC#5.

 

Rogue anticipates sustained growth, actively engaging with other prospects to foster relationships. With a stellar performance in 2023, we project 2024 revenue to reach up to $20 million, with $10 million grounded in existing and committed work. Notably, with identified bids reaching $49 million currently and growing daily, the actual revenue for 2024 could exceed initial projections significantly.

 

 

 

In the realm of railing manufacturers, our competitive analysis discerns two predominant categories: kit manufacturers and producers of solid welded products. The kit manufacturers typically sell directly to general contractors or, in some cases, to distributors or big-box stores. These kits, available in various styles and colors, are shipped in pieces for on-site assembly, catering to cost-driven scenarios. Although efficient in manufacturing, kit companies pose stiff price competition, passing assembly costs to contractors.

Rogue firmly belongs to the solid welded product category, where rails are welded, not assembled with screws or modular pieces. Our research unveils a significant portion of competitors in this category lagging in the adoption of high-tech solutions in fabrication, coating, and back-office processes. It is these differentiators that empower Rogue to deliver structurally sound, stylish products at prices comparable to kits, often surpassing the competition.

 

Our culture of continuous improvement is integral to Rogue's DNA, fueling a relentless pursuit of optimizations that simultaneously reduce costs and enhance quality. This commitment places us consistently ahead of competitors, creating a substantial distance. Over the past two years, implementing these changes has enabled Rogue to bid on more projects, offering competitive pricing and resulting in a significantly higher win rate. The investment of time, resources, and determination positions us with a substantial head start against regional competitors, reinforcing our confidence in sustained market leadership.

 

 

 

 

Rogue is actively seeking external investment to secure capital for both Capital Expenditures (Capex) and Operational Expenditures (OpEx). Our targeted funding goal is $3,000,000 in the form of preferred equity, allocated as follows:

 

Allocation: $1,000,000 to $2,000,000

 

Deposits: $100,000 to $200,000

 

Purpose: Purchasing state-of-the-art equipment to meet the demands of Rogue's projected sales of $5,000,000 per month or $60,000,000 per year. The remaining equipment costs will be covered through equipment loans.

 

 

 

Remaining Funds Allocation: Flexible, based on operational needs.

 

Intended Use: Covering additional overhead expenses and direct project costs.

 

Expansion Initiatives: Potential expansion into a new facility and hiring additional fabrication and back-office personnel.

 

Adjustable Working Capital: Negotiation of upfront payments from general contractors, a strategy previously successful for Rogue, might reduce the required working capital.

 

The infusion of $3,000,000 in preferred equity will fortify Rogue's capacity to invest in cutting-edge equipment, expand operations, and strategically manage working capital. This funding is pivotal for our envisioned growth and market dominance, ensuring that Rogue remains at the forefront of innovation and efficiency in the railing and structural steel industry.

 

 

 

 

Investment Proposal: Below are some suggestions.
 

This investment opportunity with Rogue Fabricators is strategically designed to offer investors the potential to double their investment within a conservative timeframe of 3 to 4 years. Key details of this lucrative opportunity are outlined below:

 

Amount Requested: USD $3,000,000

 

Use of Funds: Working capital infusion to catalyze significant business growth. A portion will be allocated for establishing new leased manufacturing facilities.

 

Structure: Redeemable Preferred Equity

 

Preferred Return: 8.0% per year for the applicable period.

 

Participation: 1.0% of gross revenue.

 

Payments: Pro rata payments of the Preferred Return and Participation for the previous calendar quarter will be disbursed within 30 days after the end of each quarter.

 

Redemption: The company holds the option to redeem the preferred equity wholly or partially at any time. Redemption will occur at the initial sale price, either:

 

5 years from the initial sale date, or

 

Once the Investor has received an amount equal to the initial investment from:

i) The Preferred Return of 8% per year, and

ii) The Participation paid to the Investor.

 

Retraction: The investor retains the right to require Rogue to repurchase the preferred shares at the initial sale price. This option becomes exercisable any time after five years from the initial sale, providing flexibility to investors seeking a strategic exit.

 

This investment structure is meticulously crafted to offer a compelling combination of steady returns, active participation in revenue growth, and clear exit options, providing a robust framework for potential investors to realize significant returns on their investment in Rogue Fabricators.

 

 

 

Rogue Fabricators is poised for imminent growth, and we recognize the importance of bolstering our team to navigate this exciting phase. Presently, our key leadership comprises:

 

 

Expertise: With two decades of experience in engineering and metalworking, particularly in steel construction, Jerad brings invaluable insights to the company.

Strengths: Exceptional interpersonal skills conducive to cultivating robust relationships with general contractors.

 

 

 

Role: Overseeing company finances, Stephanie plays a critical role in maintaining fiscal integrity.

 

As part of our growth strategy, we envision expanding the leadership team to harness specialized skills for elevated growth:

 

 

Focus: While continuing to provide high-level oversight and nurturing relationships, Jerad will actively contribute to Research and Development, steering the company's strategic direction.

 

 

Immediate Needs: To kickstart this expansion, we plan to bring on fractional CEO and CFO roles until the perfect fit is identified.

COO Appointment: A Chief Operating Officer (COO) will be integral in assuming operations management responsibilities.

 

As the company scales, additional team members will be strategically onboarded to meet evolving needs and demands:

 

Flexibility: Team additions will be navigated dynamically, aligning with the company's growth trajectory and the specific skill sets required.

 

Legal and Financial Support: Maintaining close ties with external professionals in legal and financial sectors ensures robust support when needed.

Strategic Partnership: Archimedes Consulting, a reputable Seattle-based firm, collaborates with Rogue to drive operational efficiencies and continuous improvement.

Rogue Fabricators recognizes that a robust and diverse team is pivotal for success. We are committed to assembling a talented and dynamic leadership team to fuel our growth journey effectively.