| Toymax International, Inc. | |||
| Proposed Ticker: | TMAX | 125 East Bethpage Road | |
| Exchange: | NASDAQ-National Market | Plainview, NY 11803 | |
| Industry: | Wholesale (SIC Code 5092) | (516) 391-9898 | |
| # of Employees: | 54 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/12/97 | |
| U.S. Shares Filed: | 2,000,000 | Filing Range: | $8.00 - $10.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $18,000,000 | |
| Primary Shares: | 2,000,000 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: | 9,500,000 |
| Manager | Tier | Phone |
| Fahnestock & Co. Inc. | Lead Manager | (212) 668-8163 |
| Issuer's Law Firm: | Baer Marks & Upham |
| Bank's Law Firm: | Orrick, Herrington & Sutcliffe |
| Auditor: | BDO Seidman |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 3/31/97 | 3/31/97 | ||||
| Revenue: | $54.68 | Assets: | $26.37 | ||
| Net Income: | $3.50 | Curr Assets: | $23.97 | ||
| EPS: | $0.47 | Liabilities: | $25.96 | ||
| Prior EPS: | -$1.31 | Curr Liabilities: | $25.96 | ||
| Cash Flow/Oper: | -$4.73 | Equity: | $0.40 | ||
| Cash Flow/Fin: | $4.82 | Cash: | $0.56 | ||
| Cash Flow/Inv: | -$0.79 | Working Cap: | -$1.99 | ||
| Business Description |
| The company creates, designs and develops innovative toys, which it markets and sells throughout the world. The company has focused on developing and marketing children's activity toys, including Creepy Crawlers, Metal Molder and Magic Maker. Management believes that major strengths of the Company include creativity in the development of new toys, such as Metal Molder, which was named one of the top children's vacation products of 1997 by DR. TOY, and the redevelopment and reintroduction of successful toy lines from the past, such as Creepy Crawlers, which was named one of the top toys of 1996 by SESAME STREET MAGAZINE. Toymax was founded in 1990 by four experienced toy industry executives: David Chu, the Company's Chairman, Steven Lebensfeld, its President, Harvey Goldberg, its Executive Vice President, and Kenneth Price, its Senior Vice President of Sales and Marketing. Since the early 1980s these executives have worked together in managing or founding toy companies or in customer-supplier relationships. Each individual brings particular strengths to the management team: Mr. Chu in manufacturing, Mr. Lebensfeld in product development, and Messrs. Goldberg and Price in sales and marketing. In addition, these executives have built a team of knowledgeable, highly skilled management and employees whose collective toy industry experience enhances the Company's ability to effectively execute its business plan. |
| Competition |
| The toy industry is highly competitive. Many of the Company's competitors have longer operating histories, broader product lines and greater financial resources and advertising budgets than the Company. In addition, the toy industry has low barriers to entry. Competition is based primarily on the ability to design and develop new toys, procure licenses for popular products, characters and trademarks, and successfully market products. Many of the Company's competitors offer similar products or alternatives to the Company's products. The Company's products compete with other products for retail shelf space. There can be no assurance that shelf space in retail stores will continue to be available to support the Company's existing products or any expansion of the Company's products and product lines. There can be no assurance that the Company will be able to continue to compete effectively in this marketplace. |
| Business Plan |
| The key elements of the company's strategy are: (I) Extend Product Lines of Existing Core Brands, (ii) Expand Into New Core Product Categories, (iii) Expand into Traditional Spring Toys, (iv) Develop and Penetrate New Markets and (v) Continue to License Recognized Brand Names and Characters. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay bank indebtedness, to pay trade payables to certain affiliates and for working capital and for general corporate purposes, including potential acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| Frances Shuk Kuen Leung | 57.70% | 45.60% |
| David Ki Kwan Chu | 57.70% | 45.60% |
| Steven Lebensfeld | 17.50% | 13.80% |
| Harvey Goldberg | 17.50% | 13.80% |
| Officer Name | Title | Age |
| David Ki Kwan Chu | Chairman of the Board | 50 |
| William A. Johnson, Jr. | Chief Financial Officer and Treasurer | 44 |
| Carmine Russo | Chief Operating Officer | 37 |
| Jonathan Muir | Controller | 36 |
| Harvey Goldberg | Executive Vice President and Director | 45 |
| Sanford B. Frank | General Counsel and Secretary | 44 |
| Steven A. Lebensfeld | President and Director | 44 |
| Kenneth Price 35 | Senior Vice President--Sales and Marketing | 35 |
| Andrew B. Stein | Vice President--International Sales | 43 |
| Amy L. Weltman | Vice President--Marketing | 47 |