| Jevic Transportation, Inc. | |||
| Ticker: | JEVC | P.O. Box 5157 | |
| Exchange: | NASDAQ-National Market | Delanco, NJ 08075 | |
| Industry: | Transportation (SIC Code 4213) | (609) 461-7111 | |
| # of Employees: | 1758 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/13/97 | |
| U.S. Shares: | 3,800,000 | Offer Date: | 10/6/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $12.00 - $14.00 | |
| Primary Shares: | 3,800,000 | Offer Price: | $15.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.05 | |
| Offering Amount: | $49,400,000 | Selling: | $0.63 | |
| Expenses: | $600,000 | Reallowance: | $0.10 | |
| Shares Out After: | 10,658,200 |
| Manager | Tier | Phone |
| Alex. Brown & Sons Incorporated | Lead Manager | (410) 895-2700 |
| Schroder Wertheim & Company, Incorporated | Co-manager | (212) 492-6900 |
| William Blair & Company | Co-manager | (312) 364-8990 |
| Issuer's Law Firm: | Pepper Hamilton & Scheetz |
| Bank's Law Firm: | Piper & Marbury |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | First Union National Bank North Carolina |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $154.80 | $90.42 | $73.57 | Assets: | $96.05 |
| Net Income: | $3.85 | $4.36 | $0.48 | Curr Assets: | $27.16 |
| EPS: | $0.49 | $0.34 | $0.06 | Liabilities: | $68.82 |
| Prior EPS: | $6.71 | $3.79 | Curr Liabilities: | $30.51 | |
| Cash Flow/Oper: | $15.50 | $9.67 | $8.75 | Equity: | $27.23 |
| Cash Flow/Fin: | $6.33 | -$13.94 | -$11.39 | Cash: | $4.84 |
| Cash Flow/Inv: | -$20.57 | -$13.94 | Working Cap: | -$3.34 | |
| Business Description |
| The company is a motor carrier that combines the high revenue yield characteristics of a typical less-than-truckload carrier with the operating flexibility and low fixed costs of a truckload carrier. The company utilizes a simplified in-route delivery system in which over 70% of the Company's shipments are delivered to their destinations directly from line-haul trailers, eliminating the need for an expensive network of labor-intensive breakbulk terminals, which most LTL carriers use to distribute shipments. The company's revenue per terminal for 1996 was approximately $25.8 million, which the Company believes is substantially higher than typical LTL carriers. The Company serves shippers throughout the eastern half of the United States and in selected markets in the remainder of the continental United States and Canada through its origination facilities located in the metropolitan areas of Atlanta, Boston, Charlotte, Chicago, Houston and Philadelphia. From 1992 to 1996, the Company's operating revenues and operating income grew at compound annual rates of 26.6% and 29.2%, respectively. |
| Competition |
| The trucking portion of the transportation industry is highly competitive and fragmented. The company competes with regional, inter-regional and national LTL carriers of varying sizes and, to a lesser extent, with truckload carriers, air freight carriers and railroads, a number of which have greater financial resources, operate more revenue equipment and have larger freight capacity than the Company. In certain regions, the Company faces competition from local carriers. The Company believes that the principal competitive factors in its business are service, pricing and the availability and configuration of equipment that meets a variety of customers' needs. The Company also competes with other motor carriers for the services of drivers. The Company believes that it is able to compete effectively in its markets by providing consistently high quality and timely-service at competitive prices. |
| Business Plan |
| The company seeks to maximize its results of operations by providing flexible and timely service. The key elements are: (I) Utilize Breakbulk-Free System, (ii) Utilize Technology to Improve Productivity and Customer Service, (iii) Increase Utlization of Owner-Operator Drivers and (iv) Maintain a Positive Workforce Environment. The company seeks sustainable growth by increasing the amount of business generated by existing customers, acquiring new customers within existing regions and expanding into new regions. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to reduce indebtedness, purchase and expand regional facilities and fund a distribution to certain current shareholders and for working capital and for general corporate purposes, including the purchase of revenue equipment and possible future acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| Karen B. Muhlschlegel | 48.50% | 31.20% |
| Harry J. Muhlschlegel | 48.50% | 31.20% |
| Officer Name | Title | Age |
| Harry J. Muhlschlegel | Chairman of the Board and Chief Executive Officer | 50 |
| Paul J. Karvois | President, Chief Operating Officer and Director | 42 |
| Brian J. Fitzpatrick | Senior Vice President - Finance and Chief Finanical Officer | 37 |
| Joseph A. Librizzi | Senior Vice President - Marketing and Sales | 48 |
| William F. English | Senior Vice President - Operations | 45 |
| Karen B. Muhlschlegel | Vice President, Secretary and Director | 50 |