| PalEx, Inc. | |||
| Ticker: | PALX | 3555 Timmons Lane, Suite 610 | |
| Exchange: | NASDAQ-National Market | Houston, TX 77027 | |
| Industry: | Manufacturing (SIC Code 2448) | (713) 626-9711 | |
| Type of Shares: | Common Shares | Filing Date: | 12/23/96 | |
| U.S. Shares: | 3,000,000 | Offer Date: | 3/20/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 3,000,000 | Offer Price: | $7.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.52 | |
| Offering Amount: | $30,000,000 | Selling: | $0.30 | |
| Expenses: | $500,000 | Reallowance: | $0.10 | |
| Shares Out After: | 10,123,889 |
| Manager | Tier | Phone |
| Alex. Brown & Sons Incorporated | Lead Manager | (410) 895-2700 |
| Montgomery Securities | Co-manager | (415) 627-2100 |
| Issuer's Law Firm: | Andrews & Kurth |
| Bank's Law Firm: | McDermott, Will & Emery |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 8/31/96 | 8/31/96 | ||||
| Revenue: | $97.72 | Assets: | $53.94 | ||
| Net Income: | $5.20 | Curr Assets: | |||
| EPS: | $0.51 | Liabilities: | $31.20 | ||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $22.75 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company was formed in January 1996 to create a national provider of pallets and related services. Concurrently with the closing of the Offering, PalEx will acquire three of the leading U.S. pallet businesses, making it the largest producer of new pallets and one of the largest pallet recyclers in the U.S. The company believes that these acquisitions will enable it to capitalize on the significant trends currently affecting product manufacturing and distribution practices throughout the U.S., including the increasing reliance by sophisticated vendors. The company will provide a broad complement of pallet products and related services, including the manufacture and distribution of new pallets; the recycling of pallets; maintenance of depot operations and the sorting and storage of pallets for selected customers; and the processing and marketing of various wood-based by-products derived from pallet recycling operations. |
| Competition |
| The company believes that the principal competitive factors in the pallet industry are price, quality of services and reliability. With over 3,600 industry participants, the pallet manufacturing industry has been and is expected to remain extremely fragmented and highly competitive. While there are several companies which have attempted to establish national pallet operations, most of the company's competitors are small, privately held companies that operate in only one location and serve customers within a limited geographic radius. |
| Business Plan |
| The company's goal is to become a leading national provider of pallets and related services by pursuing an aggressive acquisition strategy and by continuing to expand its existing operations. 1) Growth through acquisitions, 2) internal growth. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to pay the cash portion of the purchase price for the Founding Companies, to repay certain indebtedness and for general corporate purposes, which may include future acquisitions. |