Our sales are primarily wholesale, directly to lumberyards, home improvement
stores, hardware stores, and plumbing and electrical suppliers in Virginia and
North Carolina. Metwood relies primarily on its own sales force to generate
sales; additionally, however, the Company has distributors in Virginia, New
York, Oklahoma, Arizona and Colorado and also utilizes the salespeople of wholesale
yards stocking the Company's products as an additional sales force. We are an
authorized vendor for Lowe's, Home Depot, 84 Lumber, Stock Building Supply,
ProBuild, and many more. We have several stocking dealers of our square columns
and reinforcing products. We will sell directly to contractors in areas where
we do not have a dealer, but with our national dealer relationships, we typically
have a dealer to use. Metwood intends to continue expanding the wholesale marketing
of its unique products to retailers, to increase dealer sales, and to license
the Company's technology and products to increase its distribution outside of
Virginia, North Carolina and the South.
Our sales are subject to seasonal impacts, as our products are used in residential
and commercial construction projects which tend to be at peak levels in Virginia
and North Carolina between the months of March and October. Accordingly, our
sales are typically greater in our fourth and first fiscal quarters. We build
an inventory of our products throughout the winter and spring to support our
sales season. Due to the seasonality of our local market, we are continuing
our efforts to expand into markets that are not so seasonally impacted. We have
shipped projects to Florida, Georgia, South Carolina, Arizona, Washington, and
more. These markets have some seasonality, but increased exposure in these markets
will help maintain stronger sales year round.
