| Specialty Care Network, Inc. | |||
| Ticker: | SCNI | 44 Union Boulevard, Suite 600 | |
| Exchange: | NASDAQ-National Market | Lakewood, CO 80228 | |
| Industry: | Service (SIC Code 8011) | (303) 716-0041 | |
| Type of Shares: | Common Shares | Filing Date: | 12/11/96 | |
| U.S. Shares: | 3,198,062 | Offer Date: | 2/6/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 3,198,062 | Offer Price: | $8.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.56 | |
| Offering Amount: | $31,980,620 | Selling: | $0.34 | |
| Expenses: | $1,100,000 | Reallowance: | $0.10 | |
| Shares Out After: | 14,045,015 |
| Manager | Tier | Phone |
| CS First Boston | Lead Manager | (212) 325-2000 |
| Equitable Securities Corporation | Co-manager | (615) 780-9380 |
| Lehman Brothers Incorporated | Co-manager | (212) 526-8100 |
| Issuer's Law Firm: | Morgan, Lewis & Bockius |
| Bank's Law Firm: | Simpson, Thacher & Bartlett |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | American 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 | 9/30/96 | |||
| Revenue: | $31.49 | $25.13 | Assets: | $14.74 | |
| Net Income: | $3.45 | $2.64 | Curr Assets: | ||
| EPS: | $0.29 | $0.22 | Liabilities: | $2.84 | |
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $11.91 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a physician practice management company that focuses exclusively on musculoskeletal disease-state management. SCN's goal is to build the leading musculoskeletal physician practice management company in the United States. The company's strategy consists of three components: i) affiliating with leading musculoskeletal practices in targeted markets throughout the United States; ii) assisting each of its affiliated practices in managing and expanding its business by providing comprehensive operational support, including proprietary clinical and financial information systems; iii) developing integrated regional musculoskeletal networks around its affiliated practices. As a first step in implementing this strategy, On November 12, 1996, the company affiliated with a select group of five practices encompassing 49 physicians located in Pennsylvania, New Jersey, Georgia, Maryland and Florida. |
| Competition |
| The company competes with many other entities to affiliate with musculoskeletal practices. Several companies that have established operating histories and greater resources than the company are pursuing the acquisition of the assets of general and specialty practices and the management of such practices. Physician practice management companies and some hospitals, clinics and HMOs engage in activities similar to the activities of the company. there can be no assurance that the company will be able to compete effectively with such competitors, that additional competitors will not enter the market, or that such competition will not make it more difficult to affiliate with, and to enter into agreements to provide management services to, practices on terms beneficial to the company. |
| Business Plan |
| The company's goal is to become the leading physician practice management company focusing on musculoskeletal disease-state management. The company's strategy consists of three components:1 ) affiliating with leading musculoskeletal practices in targeted markets throughout the United States; 2) assisting each Affiliated Practice in managing and expanding its business by providing comprehensive operational support, including the development of proprietary clinical and financial information systems; and 3) developing integrated regional musculoskeletal networks around its Affiliated Practices. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of certain indebtedness, funding for possible future affiliations and general corporate purposes and working capital. |