| IWL Communications, Inc. | |||
| Ticker: | IWLC | 12000 Aerospace Avenue, Suite 200 | |
| Exchange: | NASDAQ-National Market | Houston, TX 77034 | |
| Industry: | Construction (SIC Code 1731) | (281) 482-0289 | |
| # of Employees: | 124 | ||
| Type of Shares: | Common Shares | Filing Date: | 3/5/97 | |
| U.S. Shares: | 1,450,000 | Offer Date: | 6/13/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $7.50 - $8.50 | |
| Primary Shares: | 1,450,000 | Offer Price: | $6.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.42 | |
| Offering Amount: | $11,600,000 | Selling: | $0.25 | |
| Expenses: | $811,000 | Reallowance: | $0.10 | |
| Shares Out After: | 3,477,816 |
| Manager | Tier | Phone |
| Cruttenden Roth Incorporated | Lead Manager | (800) 678-9147 |
| Issuer's Law Firm: | Munsch Hardt Kopf Harr & Dinan |
| Bank's Law Firm: | Brobeck, Phleger & Harrison |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | American Securities Transfer, Inc |
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 | ||
| 6/30/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $27.80 | $23.61 | $16.35 | Assets: | $16.32 |
| Net Income: | $0.73 | $0.49 | $0.54 | Curr Assets: | $7.72 |
| EPS: | $0.33 | $0.22 | $0.24 | Liabilities: | $12.12 |
| Prior EPS: | $0.24 | $0.84 | $1.69 | Curr Liabilities: | $5.73 |
| Cash Flow/Oper: | $0.34 | $2.39 | -$0.91 | Equity: | $4.20 |
| Cash Flow/Fin: | $0.36 | -$3.25 | -$0.41 | Cash: | $0.34 |
| Cash Flow/Inv: | -$0.63 | -$3.25 | Working Cap: | $1.98 | |
| Business Description |
| The company provides advanced communications solutions to customers with operations in remote, difficult-access regions and in areas around the world where government deregulation has created new market opportunities. The company delivers comprehensive communications services to its customers by utilizing a broad range of analog and digital technologies, including satellite, microwave radio, conventional two-way radio and fiber optic cable. The company's core business to date has focused on the provision of communications solutions for customers in the oil and gas industry, such as AMOCO, British Gas, Chevron, Conoco, Exxon and Shell. Such customers exemplify users with unique communications needs related to the remote, difficult-access nature of their operating locations. By providing a wide range of communications solutions to its oil and gas customers, the company has developed and implementing total communications solutions for multi-site customers with operations located in remote regions or underdeveloped areas where the existing communications infrastructure is insufficient to meet advanced telecommunications needs. The company intends to leverage this skill set and expertise by supplying communications services to multi-site customers outside of the oil and gas industry, particularly customers with operations located near the company's existing and planned telecommunications infrastructure. Potential additional customers include health care providers, financial institutions and other multi-location communication-intensive companies, such as large publishing companies. |
| Competition |
| The nature of the company's competition is diverse due to the breadth of the services offered by the company and the geographic regions in which such services are provided. The company is subject to intense competition with respect to each of its individual service offerings. Many of the company's competitors have significantly greater financial, technical, manufacturing, personnels and marketing resources than the company. To date, however, the company believes that these large competitors generally have not made it a priority to provide telecommunications services in remote, difficult-access regions. Should one or more of such companies focus on such services, it likely would have a material adverse effect on the financial condition, results of operations and cash flow of the company. Currently, the company believes it competes directly with Autocom Communications Engineering Corp., Sola Communications, Inc. and Datacom for the sale of telecommunications services to oil and gas companies in the Gulf of Mexico. As the company pursues new markets, the company likely will encounter new competitors. While the recent WTO agreement may result in regulatory changes that could benefit the company as it competes in existing markets, or seeks to enter new markets, there can be no assurance that the agreement will be implemented in a manner that would benefit the company or that the pro-competitive effects of the agreement will not increase the amount of competition encountered by the company. |
| Business Plan |
| The company's goal is to become a leading provider of total communications solutions to end users with operations in remote, difficult-access regions or in areas around the world where government deregulation has created new market opportunities and to leverage this position by providing carrier services to additional customer located in these same regions. To reach this goal, the company intends to pursue the following strategies: (I) Develop Additional Company-Owned Infrastructure, (ii) Vertically Integrate Service Offerings, (iii) Capitalize on Opportunities Created By Government Deregulation and Globalization Trends In Various Industries and (iv) Expand Existing Strategic Alliances and Establish New Alliances. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to acquire equipment for the continued development of communications infrastructure, to repay a capitalized lease and for working capital and general corporate purposes. |