| Coast Dental Services, Inc. | |||
| Ticker: | CDEN | 25400 U.S. Highway 19, Suite 225 | |
| Exchange: | NASDAQ-National Market | Clearwater, FL 34623 | |
| Industry: | Service (SIC Code 8741) | (813) 726-5152 | |
| Type of Shares: | Common Shares | Filing Date: | 10/7/96 | |
| U.S. Shares: | 2,200,000 | Offer Date: | 2/10/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $8.00 - $10.00 | |
| Primary Shares: | 2,200,000 | Offer Price: | $8.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.56 | |
| Offering Amount: | $19,800,000 | Selling: | $0.31 | |
| Expenses: | $900,000 | Reallowance: | $0.10 | |
| Shares Out After: | 6,000,000 |
| Manager | Tier | Phone |
| Prudential Securities Incorporated | Lead Manager | (212) 778-5420 |
| Raymond James & Associates, Inc. | Co-manager | (813) 573-8108 |
| Issuer's Law Firm: | Shumaker, Loop & Kendrick, LLP |
| Bank's Law Firm: | King & Spalding |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 6/30/96 | 6/30/95 | 6/30/96 | ||
| Revenue: | $3.33 | $3.35 | $1.59 | Assets: | $3.45 |
| Net Income: | $0.14 | $0.39 | -$0.17 | Curr Assets: | |
| EPS: | Liabilities: | $2.72 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $0.73 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| Coast Dental Services, Inc. develops and manages an integrated network of general dentistry practices. As of October 4, 1996, the company was managing 22 patients. Of these 22 Dental Centers, 11 were internally developed and 11 were acquired by the company. Management believes that the Coast Dental Network is the largest provider of general dentistry services in Florida. The company expects to adds one internally developed and six acquired Dental Centers for the remainder of 1996 and at least 25 internally developed or acquired Dental Centers in 1997. Industry sources have estimated that expenditures for all dental services in the United States were $45.2 billion in 1995 and are expected to grow at a rate of 7% per year. General dentistry is estimated to represent approximately 88% of all dental services performed in the United States. |
| Competition |
| The company's business entails an inherent risk of claims of liability. The Coast Dentists are involved in the delivery of health care services to the public and, therefore, are exposed to the risk of professional liability claims. Claims of this nature, if successful, could result in substantial damage awards to the claimants that may exceed the limits of any applicable insurance coverage. Insurance against losses unrelated to claims of this type can be expensive and varies widely from state to state. |
| Business Plan |
| The company's goal is to develop a leadership position in the management of general dentistry practices throughout Florida and the southeastern United States. The key elements of the company's strategy are: 1) affiliating with general dental providers that focus on the most common high volume dental products and procedures which lend themselves to cost-effective delivery; 2) centralizing management and administrative responsibilities, thus allowing Coast Dentists to concentrate on delivering high quality dental care; 3) facilitating the training of Dental Center staff, including Coast Dentists and hygienists, in the most efficient techniques for managing the delivery of high volume, quality dental services; and 4) assisting with the implementation of marketing programs designed to meet the needs of each Dental Center. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to finance the addition of internally developed and acquired Dental Centers; to repay outstanding indebtedness; and for general corporate purposes. |