| Ticker: VCAM | 2850 Douglas Road | |
| Exchange: NASDAQ-National Market | Coral Gables, Florida 33134 | |
| Industry: Service | (305) 460-2350 |
| Type of Shares: | Common Shares | Filing Date: | 2/23/96 | |
| U.S. Shares: | 2,200,000 | Offer Date: | 5/9/96 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.50 - $12.50 | |
| Primary Shares: | 2,000,000 | Offer Price: | $15.00 | |
| Secondary Shares: | 200,000 | Gross Spread: | $1.05 | |
| Offering Amount: | $25,300,000 | Selling: | $0.63 | |
| Expenses: | $700,000 | Reallowance: | $0.10 | |
| Shares Out After: | 7,999,999 |
| Manager | Tier | Phone |
| Smith Barney Inc. | Lead Manager | (718) 921-8473 |
| Alex. Brown & Sons Incorporated | Co-manager | (410) 727-1700 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 576-3423 |
| Auditor: Price Waterhouse | |||||
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 12/31/95 | ||||
| Revenue: | $239.41 | Assets: | $17.82 | ||
| Net Income: | $0.81 | Liabilities: | $16.31 | ||
| EPS: | $0.13 | Equity: | $1.51 | ||
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| The company is an employment management contractor for small and medium-size businesses. These services include helping employers manage the costs of workers' compensation, health insurance coverage, workplace safety programs and employee litigation. The Company establishes a co-employer relationship with its clients and contractually assumes substantial employer responsibilities with respect to work site employees. The professional employer organizations (PEO) industry, which Vincam is a part of, has experienced significant growth in recent years. Industry sources estimate that gross revenues in the PEO industry grew from $5.0 billion in 1991 to $13.8 billion in 1995, representing a compounded annual growth rate of approximately 29%. The PEO industry is highly fragmented, with approximately 1,100 PEO's in operation in 1995. The company believes its services assist business owners in i) managing escalating costs associated with workers compensation, health insurance coverage, workplace safety programs, and employee related litigation, ii) providing employees with competitive health care and related benefits that are more characteristic of large employers and iii) reducing the time and effort required by business owners and executives to deal with the increasingly complex legal and regulatory environment affecting employment. |
| Use of Proceeds |
| The company intends to use approximately $1.2 million of the net proceeds from this offering to retire the company's subordinated promissory note bearing interest at the U.S. Treasury bill rate as in effect from year to year (7% at December 31, 1995) and the principal of which is payable in eight equal quarterly installments beginning on March 31, 1998. The company intends to use $700,000 of the net proceeds from this offering to retire the distribution payable related to the company's repurchase of an option to purchase the company's headquarters previously held by Messrs. Saladrigas and Sanchez. The approximately $25.3 million of remaining net proceeds will be used for working capital, general corporate purposes, and expansion of the company's operations including potential acquisitions. |
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