| Electronic Processing, Inc. | |||
| Ticker: | EPIQ | 501 Kansas Avenue | |
| Exchange: | NASDAQ-Small Cap Market | Kansas City, KS 66105 | |
| Industry: | Service (SIC Code 7389) | (913) 321-6392 | |
| Type of Shares: | Common Shares | Filing Date: | 11/26/96 | |
| U.S. Shares: | 1,600,000 | Offer Date: | 2/3/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $3.25 - $3.75 | |
| Primary Shares: | 1,600,000 | Offer Price: | $3.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.31 | |
| Offering Amount: | $5,600,000 | Selling: | $0.19 | |
| Expenses: | $485,000 | Reallowance: | $0.05 | |
| Shares Out After: | 3,400,000 |
| Manager | Tier | Phone |
| R.J. Steichen & Co. | Lead Manager | (612) 341-6276 |
| Issuer's Law Firm: | Petillon & Hansen |
| Bank's Law Firm: | Fredrikson & Byron |
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: | $5.23 | $4.64 | $3.84 | Assets: | $4.38 |
| Net Income: | $0.08 | $0.12 | $0.07 | Curr Assets: | |
| EPS: | $0.05 | $0.07 | $0.04 | Liabilities: | $3.47 |
| Prior EPS: | $0.03 | Curr Liabilities: | |||
| Cash Flow/Oper: | Equity: | $0.91 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| Electronic Processing, Inc. serves a national client base with specialty products that facilitate financial and administrative aspects of bankruptcy management, including legal noticing, claims management, funds distribution and government reporting. The company develops, markets, licensing and supports internally developed and proprietary software products primarily to trustees under Chapter 7 and Chapter 13 of the Bankruptcy Code of 1978, as amended, as well as to other users of the federal bankruptcy system, including trustees in Chapter 11 and Chapter 12. EPI assimilates software development, network operations, value-added services and comprehensive post-installation support into an integrated environment that offers clients a high level of coordinated support. Between 1993 and 1996, the company recruited a new operating management team to develop new products and enter new markets. |
| Competition |
| The company works in an industry with a limited number of Chapter 7 and Chapter 13 trustees. The cmpany estimates that there are approximately 550,000 pending Chapter 13 cases being managed by approximately 180 Chapter 13 trustees, and that there is approximately $2 billion on deposit by approximately 1,200 Chapter 7 trustees. There are several companies in the market all competing for sales from this finite group of customers, and some of the company's competitors have substantially greater financial and marketing resources than does the company. |
| Business Plan |
| The company's objective is to become the leading provider of technology based insolvency management systems. The company's strategy for achieving its objectives includes the following: 1) sustain and develop recurring revenue structure; 2) attain technical superiority in product features; 3) capitalize on growth trends in bankruptcy filings; 4) continue to penetrate new geographic markets; 5) evaluate opportunities in complementary business lines. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of corporate debt and capital leases; software development; sales and marketing expansion; and general corporate purposes including working capital. |