| Tropical Sportswear Int'l Corporation | |||
| Proposed Ticker: | TSIC | 4902 West Waters Avenue | |
| Exchange: | NASDAQ-National Market | Tampa, FL 33634 | |
| Industry: | Manufacturing (SIC Code 2325) | (813) 249-4900 | |
| # of Employees: | 714 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/15/97 | |
| U.S. Shares Filed: | 4,000,000 | Filing Range: | $13.00 - $15.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $56,000,000 | |
| Primary Shares: | 1,600,000 | Expenses: | $800,000 | |
| Secondary Shares: | 2,400,000 | Shares Out After: | 7,600,000 |
| Manager | Tier | Phone |
| Prudential Securities Incorporated | Lead Manager | (212) 778-5420 |
| Oppenheimer & Company, Inc. | Co-manager | (212) 667-7400 |
| Issuer's Law Firm: | Foley & Lardner |
| Bank's Law Firm: | Alston & Bird |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Firstar Bank Milwaukee, N.A. |
Dollar amounts in U.S. millions except for per share data | |||||
| 8 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 9/28/96 | 6/28/97 | 6/29/96 | 6/28/97 | ||
| Revenue: | $117.36 | $115.61 | $86.59 | Assets: | $71.41 |
| Net Income: | $5.17 | $6.17 | $3.53 | Curr Assets: | $50.61 |
| EPS: | $0.86 | $1.03 | $0.59 | Liabilities: | $46.86 |
| Prior EPS: | $0.36 | $0.83 | $8.52 | Curr Liabilities: | $16.71 |
| Cash Flow/Oper: | $12.55 | $3.81 | -$0.79 | Equity: | $24.55 |
| Cash Flow/Fin: | -$2.47 | -$4.40 | -$7.66 | Cash: | $0.50 |
| Cash Flow/Inv: | -$9.88 | -$4.40 | Working Cap: | $33.90 | |
| Business Description |
| The company produces high quality casual and dress men's apparel and provides major apparel retailers with comprehensive brand management programs. These programs feature pants, shorts and denim jeans that are marketed under company and brand names. The Company distinguishes itself from traditional private label manufacturers by providing apparel retailers with customer, product and market analysis, apparel design, merchandising, and inventory forecasting. The Company markets its apparel through all major retail distribution channels, including department and specialty stores, catalog retailers, discount merchants and wholesale clubs. Key customers include Dayton Hudson, Federated Department Stores (including Bloomingdale's and Macy's), JC Penney, May Co., Nordstrom, Phillips-Van Heusen, Price/Costco and Sam's Club (a division of Wal-Mart). The Company's mission is to provide total customer satisfaction through a combination of quality, value and technology. Management believes that the Company provides its customers with high quality apparel and services supported by a commitment to advanced information, design and production technologies, and unique merchandising and operating strategies. The Company's apparel line focuses on basic, recurring styles that the Company believes are less susceptible to fashion obsolescence and less seasonal in nature than fashion styles. All of the Company's products are derived from six production platforms, or "chassis," each of which incorporates basic features requiring distinct manufacturing processes, such as inclusion of an elastic waistband, jeansband or button-flap pockets. |
| Competition |
| The apparel industry is highly competitive and the Company competes with numerous apparel manufacturers, including brand name and private label producers, and retailers which have established, or may establish, internal product development and sourcing capabilities. The Company's products also compete with a substantial number of designer and non-designer product lines. Many of the Company's competitors and potential competitors have greater financial, manufacturing and distribution resources than the Company. The Company believes that it competes favorably on the basis of quality and value of its programs and products, price, the production flexibility that it enjoys as a result of its cutting and labeling capabilities and its sourcing network, and the long-term customer relationships it has developed. Nevertheless, any increased competition from manufacturers or retailers, or any increased success by existing competition, could result in reductions in unit sales or prices, or both, which could have a material adverse effect on the Company's business and results of operations. |
| Business Plan |
| The company seeks to become "The Leader in Private Brand"(TM) by being the leading marketer and private brand sportswear in its product categories across all retail channels. The key elements of the company's business strategy are as follows: (I) Focus on private brand programs for major retailers, (ii) Commitment to superior quality operations, (iii) Application of advanced technology, (iv) Adherence to standard operating procedures, (v) Focus on core production chassis, (vi) Maintain low-cost production, (vii) Commitment to total customer Satisfaction and (viii) Minimize inventory risk. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to redeem the company's outstanding preferred stock and to repay outstanding indebtedness. |
| Name of Shareholder | % Owned Before | % Owned After |
| Shakale | 37.50% | 6.60% |
| Eloy S. Vallina-Laguera | 37.50% | 21.10% |
| Accel | 37.50% | 21.10% |
| William W. Compton | 15.60% | 12.30% |
| Michael Kagan | 9.40% | 7.40% |
| Officer Name | Title | Age |
| William W. Compton | Chairman of the Board, Chief Executive Officer and Director | 53 |
| Michael Kagan | Executive Vice President, Chief Financial Officer, Treasurer, Secretary and Director | 58 |
| Richard J. Domino | President | 48 |