| Ticker: CTLG | 21 Bristol Drive | |
| Exchange: NASDAQ-National Market | South Easton, Massachusetts 02375 | |
| Industry: Retail | (508) 238-0199 |
| Type of Shares: | Common Shares | Filing Date: | 8/23/96 | |
| U.S. Shares: | 1,500,000 | Offer Date: | 10/17/96 | |
| Non-U.S. Shares: | 0 | Filing Range: | $6.50 - $7.50 | |
| Primary Shares: | 1,500,000 | Offer Price: | $6.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.52 | |
| Offering Amount: | $10,500,000 | Selling: | $0.31 | |
| Expenses: | $800,000 | Reallowance: | $0.10 | |
| Shares Out After: | 4,701,666 |
| Manager | Tier | Phone |
| GKN Securities | Lead Manager | (212) 509-3800 |
| Auditor: Deloitte & Touche | |||||
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 6/29/96 | 7/1/95 | 6/29/96 | ||
| Revenue: | $42.57 | $18.75 | $22.42 | Assets: | $17.78 |
| Net Income: | $0.52 | $0.15 | $0.55 | Liabilities: | $19.94 |
| EPS: | $0.08 | $0.00 | $0.14 | Equity: | -$2.16 |
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| The company is a direct marketer targeting niche consumer product categories. SC Direct, its principal operating subsidiary, is the leading U.S. retailer of women's wigs and hairpieces. SC Publishing, a subsidiary of SC Direct, sells continuing education courses to nurses, real estate professionals and Certified Public Accountants. SC Direct sells wigs and hairpieces primarily to women over the age of 50, using three distinct catalogs: Paula Young, Christine Jordan and Especially Yours. In 1995, SC Direct mailed 20.9 million catalogs, generating net sales of $37.3 million. SC Direct has developed a proprietary data base consisting of approximately 5.6 million persons, including more than 875,000 active customers and more than one million active inquirers. Due to the fact that wig wearers are difficult to find, the company believes that its wig database is unique and would be very expensive to replicate. The company believes that this poses a substantial barrier to entry for any potential competitor. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay the company's Senior Indebtedness, including 1) $1.5 million to pay down the outstanding amount under the revolving credit portion of the Senior Indebtedness 2) $1.8 million of the Senior Indebtedness which is due within one year of the date thereof and 3) $2.6 million of the Senior Indebtedness which is due more than one year following the date thereof, balance of proceeds used for working capital and general corporate purposes. |
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