| AMF Bowling, Inc. | |||
| Ticker: | PIN | 8100 AMF Drive | |
| Exchange: | New York Stock Exchange | Richmond, VA 23111 | |
| Industry: | Service (SIC Code 7933) | (804) 730-4000 | |
| # of Employees: | 139 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/21/97 | |
| U.S. Shares: | 10,800,000 | Offer Date: | 11/3/97 | |
| Non-U.S. Shares: | 2,700,000 | Filing Range: | $18.00 - $21.00 | |
| Primary Shares: | 13,500,000 | Offer Price: | $19.50 | |
| Secondary Shares: | 0 | Gross Spread: | $1.22 | |
| Offering Amount: | $263,250,000 | Selling: | $0.72 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Goldman, Sachs & Co. | Lead Manager | (212) 902-5959 |
| Cowen & Company | Co-manager | (212) 495-6000 |
| Morgan Stanley Dean Witter Discover & Co. | Co-manager | (212) 761-5900 |
| Schroder Wertheim & Company, Incorporated | Co-manager | (212) 492-6900 |
| Issuer's Law Firm: | Wachtell, Lipton, Rosen & Katz |
| Bank's Law Firm: | Sullivan & Cromwell |
| Auditor: | Arthur Andersen |
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: | $548.90 | $318.10 | $237.50 | Assets: | $1,715.60 |
| Net Income: | -$21.50 | -$12.20 | -$13.50 | Curr Assets: | |
| EPS: | -$0.55 | -$0.29 | -$0.35 | Liabilities: | $1,324.50 |
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | $73.83 | Equity: | $391.10 | ||
| Cash Flow/Fin: | $1,438.26 | Cash: | |||
| Cash Flow/Inv: | -$1,467.12 | Working Cap: | -$23.30 | ||
| Business Description |
| The company is the largest bowling company in the world. The company operates 422 bowling centers worldwide which generates over 60 million customer visits per year. The company is the U.S. market leader with 335 bowling centers, and is also the largest operator internationally, with 87 bowling centers in nine countries. In addition, the company has been a leader in the bowling equipment industry for over 50 years, having revolutionized ten pin bowling with the introduction of the first automatic pinspotter in 1946. The company is one of only two bowling equipment manufacturers that compete on a global basis. Management believes that the company bowling equipment accounts for approximately 41% of the world's installed base of bowling equipment. The worldwide bowling center and bowling equipment industry generates approximately $9 billion in annual revenue and includes approximately 13,000 bowling centers in over 80 countries. The U.S. bowling center and bowling equipment industry generates in excess of $4 billion of revenue annually and includes approximately 5,900 centers. Over 100 million people participate annually in bowling worldwide, according to the Federation Internationale des Quilleurs (the "FIQ"), the official organization of the worldwide bowling industry. The bowling center industry in both the U.S. and abroad is highly fragmented. In the U.S., the next closest competitor to the company's 335 centers has approximately 111 centers. The next four largest operators collectively account for approximately 73 of the total 5,900 centers. |
| Competition |
| The company is one of the largest manufacturers of bowling center equipment in the world. Management estimates that the company accounts for approximately 41% of the worldwide installed base of bowling center equipment. The company and Brunswick are the two largest manufacturers of bowling center equipment, and are the only full-line manufacturers of NCPs and Modernization and Consumer Products that compete on a global basis. The Company also competes with smaller, often regionally focused companies in certain product lines. For example, DACOS, a Korean-based manufacturer, competes with the Company in the Asia-Pacific region, primarily in China and Korea. Because of bowling equipment's relatively long useful life, used equipment can be refurbished and sold, often to builders of new centers. The Company actively purchases and resells used equipment in new, high growth markets in order to compete with refurbishers who often are U.S. based.Bowling, both as a competitive sport and a recreational activity, faces competition from numerous alternative activities. The ongoing success of the Bowling Centers operations is subject to the level of interest in bowling, the availability and relative cost of other sport, recreational and entertainment alternatives, the amount of leisure time enjoyed by potential players, as well as various other social and economic factors over which the company has no control. There can be no assurance that bowling will continue to be popular or that the Company will continue to compete effectively in the industry.The Company's centers also compete with other bowling centers.The Company competes primarily through the quality, appearance and location of its facilities and through the range of amenities and service level offered. |
| Business Plan |
| The company believes that its future growth will depend on the continued success of its three-part strategy to consolidate the U.S. bowling center industry, build a nationally recognized the company brand of superior bowling and entertainment centers, and capitalize on the surging demand for bowling products and centers in certain international markets. The key elements of the strategy are: (I) Consolidate The Fragmented U.S. Bowling Center Industry, (ii) Improve Acquired Centers' Profitability, (iii) Build A Nationally Recognized Brand Of Superior Bowling And Entertainment Centers, (iv) Build New Centers, (v) Improve Food And Beverage Revenues, (vi) Capitalize on Growing Global Demand For Bowling Products, (vii) Accelerate The Development Of Bowling In Selected International Markets, (viii) Provide Innovative And Quality Products and (ix) Increase Modernization And Consumer Product Sales. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| The Goldman Sachs Group, L.P. | 68.70% | |
| The Blackstone Group | 12.80% | |
| Kelso & Company | 12.80% |
| Officer Name | Title | Age |
| Richard A. Friedman | Director and Chairman | 39 |
| Charles G. Moss | Director of Corporate Development | 36 |
| Stephen E. Hare | Director; Executive Vice President; Chief Financial Officer and Treasurer | 44 |
| Douglas J. Stanard | Director; President and Chief Executive Officer | 50 |
| Daniel M. McCormack | Vice President and General Counsel | 52 |
| Lawrence C. Kind | Vice President of AMF Bowling Products | 45 |
| Steven H. Buckley | Vice President, Food and Beverage of AMF Bowling Centers | 48 |
| Merrell C. Wreden | Vice President, Marketing | 48 |
| J. Randolph V. Daniel, IV | Vice President, New Center/Modernizations Products of AMF Bowling Products | 37 |
| Stephen C. Mackie | Vice President, U.S. Operations of AMF Bowling Centers | 48 |
| Paul D. Barkley | Vice President, U.S. Operations of AMF Bowling Centers | 41 |
| J. Simon Shearer | Vice President, Worldwide Quality Management of AMF Bowling Products | 41 |
| Michael P. Bardaro | Vice President; Secretary and Corporate Controller | 46 |