| SPR Inc. | |||
| Ticker: | SPRI | 2015 Spring Road Suite 750 | |
| Exchange: | NASDAQ-National Market | Oak Brook, IL 60521 | |
| Industry: | High-Tech (SIC Code 7371) | (630) 990-2040 | |
| # of Employees: | 467 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/1/97 | |
| U.S. Shares: | 2,600,000 | Offer Date: | 10/1/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $13.00 - $15.00 | |
| Primary Shares: | 1,600,000 | Offer Price: | $16.00 | |
| Secondary Shares: | 1,000,000 | Gross Spread: | $1.12 | |
| Offering Amount: | $36,400,000 | Selling: | $0.67 | |
| Expenses: | $1,100,000 | Reallowance: | $0.10 | |
| Shares Out After: | 8,067,400 |
| Manager | Tier | Phone |
| Smith Barney Inc. | Lead Manager | (212) 723-7300 |
| Robert W. Baird & Company | Co-manager | (414) 765-3632 |
| Issuer's Law Firm: | Wildman, Harrold, Allen & Dixon |
| Bank's Law Firm: | Neal Gerber & Eisenberg |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $32.51 | $22.72 | $15.09 | Assets: | $8.73 |
| Net Income: | -$11.61 | $1.27 | -$8.85 | Curr Assets: | $7.11 |
| EPS: | -$1.74 | $0.19 | -$1.33 | Liabilities: | $5.90 |
| Prior EPS: | $1.50 | $0.93 | Curr Liabilities: | $4.97 | |
| Cash Flow/Oper: | $0.68 | -$1.03 | -$1.13 | Equity: | $2.82 |
| Cash Flow/Fin: | -$0.53 | -$0.28 | -$0.41 | Cash: | $0.55 |
| Cash Flow/Inv: | $0.90 | -$0.28 | Working Cap: | $2.14 | |
| Business Description |
| The company has over 23 years of experience in providing information technology services to clients in a variety of industries, including financial services, healthcare, insurance, manufacturing, oil and gas, transportation and utilities. The company focuses its marketing efforts on Fortune 1000 companies and other large organizations which have complex IT operations and significant IT budgets. Within each of these service offerings, the company provides three levels of consulting support which are distinguished by the degree or responsibility the company assumes: strategic planning, project management and implementation. The company believes that this breadth of service and support fosters long-term client relationships, promotes cross-selling opportunities and minimizes the company's dependence upon any particular service offering or client. |
| Competition |
| The market for IT professional services is intensely competitive on local and national levels, and the Company competes frequently with a variety of companies for both the same clients and qualified technical consultants. These companies include: "Big Six" accounting firms, systems consulting and implementation firms, application software firms, service groups of computer equipment companies, general management consulting firms and programming companies. The Company considers large organizations with complex IT needs to be among its primary clients. Within a given market, there are a limited number of such potential clients, some of which have designated only certain IT professional services companies as approved providers of IT professional services. Primary competitive factors for obtaining and retaining clients include price, quality of services, technical expertise and responsiveness to client needs. The primary competitive factors in attracting and retaining qualified candidates as consultants are competitive compensation arrangements and consistent exposure to high quality and varied engagements. Several of the Company's competitors are substantially larger than the Company and have greater financial and other resources. Many of such competitors have also been in business longer than the Company and have significantly greater name recognition throughout the United States, including the geographic areas in which the Company operates and into which it may expand. In addition, such competitors are able to meet a broader range of a client's IT consulting needs and serve a broader geographic range than the Company, which permits such competitors to better serve national accounts. Although the Company believes that it competes, and will continue to compete, favorably with existing and future competitors, there can be no assurance that the Company will continue to do so. |
| Business Plan |
| The company's objective is to become the leading IT service provider to both new and existing clients. To achieve this objective, the company has pursued, and intends to continue to pursue, the following business strategies: (I) Expand Entry-Level Training Program to Attract, Develop and Retain Qualified Technical Consultants, (ii) Continue to Focus on Project Management to Deliver Value-Added IT Solutions, (iii) Focus on Leading Technologies and (iv) Deliver Unbiased Service Offerings Utilizing Disciplined Methodolgies. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to pay dividends to enable the existing stockholders to pay income taxes due on S Corporation income through the closing date of the offering, pay certain indebtedness, fund build-out and equipping of an additional Virtual Insoucing Center, open a Texas branch office, expand the company's entry-level recruiting and training program and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Robert M. Figliulo | 26.80% | 21.50% |
| David A. Figliulo | 26.80% | 21.50% |
| John Figliulo | 10.40% | 4.20% |
| Rene M. Potter | 9.30% | 7.00% |
| Michael J. Fletcher | 9.30% | 7.50% |
| Officer Name | Title | Age |
| Robert M. Figliulo | Chief Executive Officer and Chairman of the Board of Directors | 43 |
| Stephen T. Gambill | Chief Financial Offier | 46 |
| Stephen J. Tober | Executive Vice President -- Finance and Business Development | 32 |
| David A. Figliulo | Executive Vice President and Director | 36 |
| Michael J. Fletcher | Executive Vice President, General Manager--Tulsa and Director | 42 |