| Meadowcraft, Inc. | |||
| Ticker: | MWI | 1401 Meadowcraft Road | |
| Exchange: | New York Stock Exchange | Birmingham, AL 35215 | |
| Industry: | Manufacturing (SIC Code 2519) | (205) 853-2220 | |
| # of Employees: | 1630 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/7/97 | |
| U.S. Shares: | 3,225,000 | Offer Date: | 11/25/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $13.00 - $15.00 | |
| Primary Shares: | 3,225,000 | Offer Price: | $13.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.91 | |
| Offering Amount: | $45,150,000 | Selling: | $0.53 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 19,225,000 |
| Manager | Tier | Phone |
| Bear, Stearns & Co. Inc. | Lead Manager | (212) 272-4850 |
| A.G. Edwards & Sons, Inc. | Co-manager | (314) 955-3039 |
| Issuer's Law Firm: | Sirote & Permutt |
| Bank's Law Firm: | Debevoise & Plimpton |
| 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 | ||
| 5/3/97 | 5/3/97 | ||||
| Revenue: | $141.94 | Assets: | $127.06 | ||
| Net Income: | $15.94 | Curr Assets: | $85.27 | ||
| EPS: | Liabilities: | $87.73 | |||
| Prior EPS: | Curr Liabilities: | $72.41 | |||
| Cash Flow/Oper: | $26.10 | Equity: | $39.33 | ||
| Cash Flow/Fin: | -$22.70 | Cash: | |||
| Cash Flow/Inv: | -$3.41 | Working Cap: | $12.85 | ||
| Business Description |
| The company is one of the leading domestic producers of casual outdoor furniture and is the largest manufacturer of outdoor wrought iron furniture in the United States. The Company designs, manufactures and distributes a variety of wrought iron consumer products, including outdoor and indoor furniture and accessories, outdoor cushions and umbrellas, and garden products, which it markets to mass merchandisers and specialty stores primarily in the United States. The Company believes that it has established a reputation as an innovator in the design, manufacturing, distribution and marketing of moderately priced, quality wrought iron furniture. The company's net sales have grown from $50.5 million in Fiscal 1991 to $141.9 million in Fiscal 1997, while pro forma net income has increased from $1.2 million to $15.9 million over the same period. For Seasonal 1997, Meadowcraft had net sales of $ million and pro forma net income of $ million. The Company offers consumers a wide variety of products across different price points in three markets: the outdoor mass market under the Plantation Patterns brand name; the outdoor specialty market under the Meadowcraft, Arlington House and Salterini brand names; and the indoor specialty and mass markets under the Interior Images by Salterini and Home Collection from Plantation Patterns brand names, respectively. |
| Competition |
| The casual furniture industry is highly competitive and includes a large number of manufacturers, none of which dominate the market. The Company competes against other domestic and foreign wrought iron furniture manufacturers as well as manufacturers of aluminum, resin and plastic, wicker and rattan, and wood casual furniture with respect to its outdoor products and traditional furniture companies with respect to its indoor products. A number of the companies which compete directly with the Company may have greater financial and other resources than the Company. Management believes that competition in the casual furniture industry is generally a function of timeliness of delivery, price, quality, product design, product availability and customer service. While sales of imported, foreign-produced wrought iron consumer products represent a small percentage of total U.S. wrought ironfurniture sales, such sales have increased in recent years and could adversely affect the Company's sales. |
| Business Plan |
| The company has identified future growth opportunities and has developed a strategy to increase its sales, earnings and market share of the casual outdoor and indoor furniture markets, including the following initiatives: (I) Introduce New Products and Expand Product Offerings, (ii) Increase Manufacturing and Distribution Capacity and (iii) Heighten Brand Awareness. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for an S Corporation Distribution to the company's existing shareholders, and the balance will be used to finance capital expenditures. |
| Name of Shareholder | % Owned Before | % Owned After |
| Samuel R. Blount | 90.00% | |
| William J. McCanna | 10.00% |
| Officer Name | Title | Age |
| Samuel R. Blount | Chairman of the Board of Directors | 50 |
| William J. McCanna | President and Director | 57 |
| Steven C. Braswell | Vice President of Finance, Chief Financial Officer and Secretary | 47 |
| Timothy M. LeRoy | Vice President of Sales and Marketing (Mass Accounts) | 33 |
| Rory S. Rehmert | Vice President of Sales and Marketing (Specialty Accounts) | 37 |