| JLK Direct Distribution, Inc. | |||
| Ticker: | JLK | State Route 981 South, P.O. Box 231 | |
| Exchange: | New York Stock Exchange | Latrobe, PA 15630 | |
| Industry: | Wholesale (SIC Code 5084) | (412) 539-5000 | |
| Type of Shares: | Class A Common Shares | Filing Date: | 4/28/97 | |
| U.S. Shares: | 4,257,000 | Offer Date: | 6/26/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $16.00 - $18.00 | |
| Primary Shares: | 4,257,000 | Offer Price: | $20.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.38 | |
| Offering Amount: | $72,369,000 | Selling: | $0.82 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - | |||
| Spin out parent firm: | Kennametal, Inc. | |||
| Manager | Tier | Phone |
| Merrill Lynch & Co. | Lead Manager | (212) 449-4600 |
| Goldman, Sachs & Co. | Co-manager | (212) 902-5959 |
| Issuer's Law Firm: | Buchanan Ingersoll |
| Bank's Law Firm: | Simpson, Thacher & Bartlett |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
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: | $243.97 | $225.19 | $175.99 | Assets: | $138.13 |
| Net Income: | $15.06 | $13.62 | $10.74 | Curr Assets: | |
| EPS: | Liabilities: | $26.75 | |||
| Prior EPS: | $12.80 | -$3.26 | Curr Liabilities: | ||
| Cash Flow/Oper: | -$4.99 | Equity: | $111.38 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is one of the largest suppliers of a broad range of metalworking consumables and related products to customers in the United States, offering a full line of cutting tools, carbide and other tool inserts,abrasives,and other industrial supplies. To meet the varying supply needs of small, medium and large-sized customers, the company offers: 1) a direct-marketing program, whereby the company supplies predominantly small an medium-sized customers through catalog and showroom sales and 2) integrated industrial supply programs, by which large industrial manufacturers engage the company to carry out all aspects of complex metalworking supply processes, including needs assessment, cost analysis, procurement planning, supplier selection, "just-in-time" restocking of supplies and ongoing technical support. The company also conducts its direct-marketing program for small and medium-sized customers in the United Kingdom. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness related to a dividend payment to Kennametal on 4/28/97, to repay amounts due to Kennametal relating to acquisitions, income taxes and employee benefit obligations, to construct a new Midwest distribution center, to provide working capital for new showrooms and Full service Supply Programs, to fund acquisitions which the company is currently considering. |