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Bigger top: Chuck Miller's Aztec Tents & Events bought a competitor out of bankruptcy, then hired its workers and boosted sales as a result.


TWO weeks after setting up hangar-sized tents for a NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla.  race near Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Chuck Miller had a problem.

A sudden blast of 80-mile-per-hour desert winds tore apart the vinyl structures held up by aluminum poles that were constructed by Miller's Torrance-based company, Aztec Tents & Events.

Racing officials were sure they would have to postpone the event. But Miller flew in parts and workers from around the country, finishing the repairs a day before the race was scheduled--and without charging NASCAR for the added expense.

"The repairs cost us more on the project, but it's something your customer will never forget," said Miller, who has owned Aztec Tents for 24 years.

It's an attitude that has won a loyal and stable customer base; NASCAR has used Miller's company for nearly all its races west of the Mississippi River Mississippi River

River, central U.S. It rises at Lake Itasca in Minnesota and flows south, meeting its major tributaries, the Missouri and the Ohio rivers, about halfway along its journey to the Gulf of Mexico.
 for more than seven years. And Aztec is the only tent company that the California Speedway The California Speedway is a two-mile, low-banked, D-shaped oval superspeedway in Fontana, California, similar to that of "sister track" Michigan International Speedway. It is located approximately 40 miles east of Los Angeles on the site of the former Kaiser Steel mill.  has used since opening in November 1993.

Aztec sets up intricate tent structures both for commercial functions and private events--a process that sometimes involves erecting thousands of square feet of tents.

One of Aztec's largest events, the annual International Agriculture Farm Show in Tulare, takes nearly two months to set up and provides revenue of up to $900,000 a year.

The company has turned downtown Long Beach into a speedway for that city's annual Grand Prix Grand Prix  
n. pl. Grand Prix
Any of several competitive international road races for sports cars of specific engine size over an exacting, usually risky course.
. And during ESPN's X Games X Games Sports medicine The official Olympics of 'extreme sports' sponsored by ESPN, held annually during the summer. See Extreme sports.  last August, Aztec designed and built special tent structures and judging booths 30 feet off the ground.

"Aztec fabricated several elements that contributed to the overall design that went well beyond just putting up tents," said Maria Elles Scott, an ESPN ESPN Entertainment and Sports Programming Network  spokeswoman. "The X Games has been very pleased with the product and the commitment that Aztec has provided for us."

Under one tent

Now Aztec is on an expansion kick. The company bought the tent manufacturing operation of its rival, Academy Tent and Canvas Inc., out of bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties.  six months ago for about $737,000.

After winning the bid, Miller hired Academy's director of manufacturing, David Bradley David Bradley is the name of:
  • David Bradley (plowman) (1811-1899)
  • David Bradley (director) (1920-1997), American director
  • David Bradley (actor) (born 1942), British actor
  • David (Dai) Bradley (born 1953), British actor
, who helped bring on many of Academy's former employees. From giant looms of vinyl, Aztec makes large, intricate tents to order by using sealers that melt the seams together. The finished product is used either for Aztec's business or is sold to other event planning Event planning is the process of planning a festival, ceremony, competition, party, or convention.

Event planning includes budgeting, establishing date and alternate date (rain date), selecting and reserving the event site, acquiring permits, and coordinating transportation
 businesses.

Since the purchase of Academy, Aztec has nearly doubled its staff, to 300. Compared to a year ago, revenues are up 50 percent, and projected to total $22.5 million annually. Manufacturing revenues are up 150 percent.

"I couldn't have expected we would do this well on the manufacturing side this year," Miller said, noting that manufacturing alone could be a $20 million business in three to four years.

Aztec was founded in 1966 by Bob Modzeleski, a New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 transplant who started out renting tables, chairs and small canopy tents for weddings and bar mitzvahs. Miller, meanwhile, had taught elementary school math and science before becoming the principal of a Palos Verdes elementary school.

Modzeleski, whose children attended the same school, offered Miller a job soon after meeting the young principal. Miller turned it down, although he stayed in touch. Six years later, Miller took Modzeleski up on his offer to buy a third of Aztec's business. To raise the $250,000 for the deal, Miller and his wife--who worked as a real estate broker--sold a Palos Verdes rental property they owned.

Miller helped expand the company into corporate events, which boosted revenues to about $7 million within 10 years. Around 1992, he bought out Modzeleski for $3.5 million to take control of the business. "We came to a crossroads as partners," Miller said. "We knew one of us was going to have to buy out the other, and I ended up making the successful bid."

Buying Academy's manufacturing unit has provided the company with its biggest growth spurt growth spurt Pediatrics A period of rapid growth in middle adolescence; ♀ ↑ ±8 cm/yr ±age 12; ♂ ↑ ±10 cm/yr ± age 14; GS is orderly, affecting acral parts–ie, hands and feet grow before proximal regions, , but Miller said the process was especially stressful.

The interested parties sat around an oval conference table inside a bankruptcy attorney's office in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or  and submitted bids in $50,000 increments, starting at $300,000. "It was like a high-stakes poker game," he said. "Everybody was sitting around this table trying to size each other up."

Every time a company would raise their price, he would immediately counterbid. "I set a top price that I would pay and pledged to myself not to get all emotional and go over my limit," he said. "Fortunately, we never reached that level."

PROFILE

Aztec Tents & Events

Year Founded: 1966

Core Business: Tent manufacturing and hospitality rentals

Revenues in 2003: $15.5 million

Revenues in 2004: $22.5 million (projected)

Employees in 2003: 180

Employees in 2004: 300

Goal: To grow the manufacturing side significantly and bring overall company revenues to $35 million within nine years

Driving Force: Giving customers service and added value that competitors don't
COPYRIGHT 2004 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:Small Business
Author:Fixmer, Andy
Publication:Los Angeles Business Journal
Article Type:Company Profile
Geographic Code:1U9CA
Date:Nov 15, 2004
Words:817
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