| Priority Healthcare Corp. | |||
| Proposed Ticker: | PHCC | 285 West Central Parkway | |
| Exchange: | NASDAQ-National Market | Altamonte Springs, FL 32714 | |
| Industry: | Wholesale (SIC Code 5122) | (407) 869-7001 | |
| # of Employees: | 120 | ||
| Type of Shares: | Class B Common Shares | Filing Date: | 8/27/97 | |
| U.S. Shares Filed: | 2,000,000 | Filing Range: | $13.00 - $15.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $28,000,000 | |
| Primary Shares: | 2,000,000 | Expenses: | $790,000 | |
| Secondary Shares: | 0 | Shares Out After: | 12,214,286 | |
| Spin out parent firm: | Bindley Western Industries, Inc. | |||
| Manager | Tier | Phone |
| Raymond James & Associates, Inc. | Lead Manager | (813) 573-8108 |
| Issuer's Law Firm: | Baker & Daniels |
| Bank's Law Firm: | Greenberg Traurig Hoffman Lipoff Rosen & Quentel |
| Auditor: | Price Waterhouse |
| Registrar/Transfer Agent: | Harris Trust & Savings Bank |
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: | $158.25 | $108.60 | $65.35 | Assets: | $68.12 |
| Net Income: | $4.37 | $3.02 | $1.63 | Curr Assets: | $59.20 |
| EPS: | Liabilities: | $41.70 | |||
| Prior EPS: | -$5.49 | -$0.22 | Curr Liabilities: | $35.18 | |
| Cash Flow/Oper: | -$4.52 | $4.30 | $1.40 | Equity: | $26.42 |
| Cash Flow/Fin: | $5.23 | -$0.28 | -$0.12 | Cash: | $0.19 |
| Cash Flow/Inv: | -$0.41 | -$0.28 | Working Cap: | $24.02 | |
| Business Description |
| The company is a national distributor of specialty pharmaceuticals and related medical supplies to the alternate healthcare market and is a provider of patient specific, self-injectable biopharmaceuticals and disease treatments to individuals. Through its Priority Healthcare Distribution division ("Priority Distribution"), the Company sells over 3,500 SKUs of specialty pharmaceuticals and medical supplies to outpatient renal care centers and office-based physicians in the oncology and infectious disease markets. With the recent acquisition of Grove Way Pharmacy, Priority Distribution has entered the vaccine market. Priority Distribution offers value-added services to meet the specific needs of these markets by shipping refrigerated pharmaceuticals overnight in special packaging to maintain appropriate temperatures, offering automated order entry services and offering customized distribution for group accounts. From distribution centers in Altamonte Springs, Florida and Santa Ana, California, Priority Distribution services over 2,000 customers in all 50 states and Puerto Rico, including approximately 550 office-based oncologists and 800 renal dialysis clinics. |
| Competition |
| The alternate site specialty pharmaceutical and medical supply industry is highly competitive and is experiencing both horizontal and vertical consolidation. The industry is fragmented, with many public and private companies focusing on different product or customer niches. Some of the Company's current and potential competitors include regional and national full-line, full-service medical supply distributors; independent speciality distributors; national full-line, full-service wholesale drug distributors, such as Bergen Brunswig Corporation and Cardinal Health, Inc., that operate their own specialty distribution businesses; institutional pharmacies; hospital-based pharmacies; home healthcare agencies; mail order distributors that distribute medical supplies on a regional or national basis; and certain manufacturers, such as Bristol-Myers Squibb, that own distributors or that sell their products both to distributors and directly to users, including clinics and physician offices. Some of the Company's competitors have greater financial, technical, marketing and managerial resources than the Company. While competition is primarily price and service oriented, it can also be affected by depth of product line, technical support systems, specific patient requirements and reputation. There can be no assurance that competitive pressures will not have a material adverse effect on the Company. |
| Business Plan |
| The company's objectis is to continue to grow rapidly and enhance its market position as a leading specialty distributor by capitalizing on its business strengths and pursuing the following strategy: (I) Continue to focus on and further penetrate the alternate site market, (ii) Enter new markets by distributing new product categories and patient-specific biopharmaceuticals, (iii) Accelerate growth of its higher margin, patient-specific pharmacy business by leveraging relationships with existing distribution customers, (iv) Maintain intense cost control while investing in infrastructure and (v) Pursue acquisitions to complement existing product offerings or further penetrate markets. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay debt owed to Bindley and for working capital and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| William E. Bindley | 27.40% |
| Officer Name | Title | Age |
| William E. Bindley | Chairman of the Board | 56 |
| Guy F. Bryant | Executive Vice President--Priority Healthcare Distribution | 38 |
| Steven D. Cosler | Executive Vice President--Priority Pharmacy Services | 42 |
| Robert L. Myers | President, Chief Executive Officer and a Director | 52 |
| Michael D. McCormick | Secretary and Director | 49 |
| Donald J. Perfetto | Vice President, Chief Financial Officer and Treasurer | 51 |
| Barbara J. Luttrell | Vice President--Administration and Assistant Secretary of the Company | 57 |
| Melissa E. McIntyre | Vice President--Clinical Services | 36 |
| William M. Woodard | Vice President--Marketing | 39 |