| Puro Water Group, Inc. | |||
| (www.purowater.com) | |||
| Ticker: | HHO | 56-45 58th street | |
| Exchange: | American Stock Exchange | Maspeth, NY 11378 | |
| Industry: | Wholesale (SIC Code 5149) | (718) 326-7000 | |
| Type of Shares: | Common Shares | Filing Date: | 11/15/96 | |
| U.S. Shares: | 1,350,000 | Offer Date: | 2/7/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $5.50 - $6.50 | |
| Primary Shares: | 1,350,000 | Offer Price: | $6.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.60 | |
| Offering Amount: | $8,100,000 | Selling: | $0.35 | |
| Expenses: | $790,000 | Reallowance: | $0.10 | |
| Shares Out After: | 3,476,789 |
| Manager | Tier | Phone |
| Laidlaw Equities, Inc. | Lead Manager | (212) 376-8852 |
| Gilford Securities | Co-manager | (800) 445-3673 |
| Issuer's Law Firm: | Lev, Berlin & Dale, P.C. |
| Bank's Law Firm: | Olshan Grundman Frome & Rosenzweig |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 9/30/96 | 9/30/95 | 9/30/96 | ||
| Revenue: | $5.50 | $8.07 | $4.11 | Assets: | $8.35 |
| Net Income: | $0.40 | $0.52 | $0.34 | Curr Assets: | |
| EPS: | $0.21 | $0.23 | $0.18 | Liabilities: | $4.83 |
| Prior EPS: | $0.14 | $0.07 | $0.41 | Curr Liabilities: | |
| Cash Flow/Oper: | $0.39 | Equity: | $3.52 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is leading bottler and distributor of spring and purified drinking water, serving commercial and residential users in the metropolitan New York area. The company markets its drinking water under the brand names Puro, American Eagle Spring Water, Nature's Best Spring Water and Lectro-Still. The company also rents an services water coolers, filtration systems, and plumbed-in fountains numbering in excess of 25,000 located in businesses, factories, and homes in the metropolitan New York area. The company's facilities consist of NSF certified bottling plants in East orange, New Jersey and Commack, Long Island, New York. In addition, the company is an authorized factory service center for all major water cooler manufacturers and provides warranty repair coverage to many of its competitors. |
| Competition |
| The company competes with numerous well-established companies, including Nestle's Perrier group (whose brands in the company's market include Poland Spring, Great Bear and Deer Park), which distribute drinking water sold off the shelf at retail (primarily supermarket) locations. Many of the company's competitors have achieved significant national, regional and local brand name and product recognition and additional competitors have sought to enter the drinking water market. In recent years, several companies have introduced drinking water products positioned to capitalize on the growing consumer preference for purified and aesthetically pleasing water. It can be expected that the company will be subject to increasing competition from companies whose products or marketing strategies address these consumer preferences. Some of the company's competitors and potential competitors possess substantially greater financial, personnel, marketing and other resources than the company and have established reputations for success in the sale of purified water products. The company believes that it competes on the basis of quality service, convenience and price. |
| Business Plan |
| The bottled water distribution market is highly fragmented and composed of many small regional companies as well as a few larger companies which own several brands. The company's strategy is to capitalize on the growing demand for high quality drinking water resulting from the increasing public concern about the taste and safety of municipal water supplies and the desier among today's increasingly diet and health conscious consumers for an "ideal" begerage through the expansion of its existing customer base and thorugh the acquisitions of regional water bottlers and distributors in targeted geographic markets. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for the repayment of certain outstanding indebtedness and working capital. |
| Officer Name | Title | Age |
| Peter T. Dixon | Chairman of the Board | 66 |
| Scott Levy | Chief Executive Officer and Director | 39 |
| James G. Botti | Chief Financial Officer | 33 |
| Wilmer J. Thomas, Jr. | Director | 69 |
| Stephen Edberg | Director | 44 |
| Leonard d. Rosinski | Director | 45 |
| Jack C. West | President and Director | 55 |