| Gametech International, Inc. | |||
| Ticker: | GMTC | 2209 W. 1st Street, Suite 113-114 | |
| Exchange: | NASDAQ-National Market | Tempe, AZ 85281 | |
| Industry: | Service (SIC Code 7999) | (602) 804-1101 | |
| # of Employees: | 50 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/4/97 | |
| U.S. Shares: | 3,710,000 | Offer Date: | 11/24/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 3,270,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 440,000 | Gross Spread: | $0.77 | |
| Offering Amount: | $44,520,000 | Selling: | $0.46 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 9,365,720 |
| Manager | Tier | Phone |
| Donaldson, Lufkin & Jenrette Securities Corp. | Lead Manager | (212) 371-0641 |
| Prudential Securities Incorporated | Co-manager | (212) 778-5420 |
| Issuer's Law Firm: | Morgan, Lewis & Bockius |
| Bank's Law Firm: | Skadden, Arps, Slate, Meagher & Flom |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
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 | ||
| 10/31/96 | 4/30/97 | 4/30/96 | 4/30/97 | ||
| Revenue: | $5.36 | $5.49 | $2.11 | Assets: | $8.54 |
| Net Income: | $0.81 | $1.39 | $0.19 | Curr Assets: | $1.92 |
| EPS: | $0.11 | $0.19 | Liabilities: | $6.06 | |
| Prior EPS: | $1.62 | $0.41 | Curr Liabilities: | $2.21 | |
| Cash Flow/Oper: | $1.29 | $1.18 | $1.38 | Equity: | $2.48 |
| Cash Flow/Fin: | $1.93 | -$2.53 | -$1.73 | Cash: | $0.44 |
| Cash Flow/Inv: | -$3.09 | -$2.53 | Working Cap: | -$0.29 | |
| Business Description |
| The company is a leading designer, developer and marketer of interactive electronic bingo systems. The company currently markets a fixed-based system with light-pen activated monitors and a portable, hand-held system which can be played anywhere. Both bingo systems display the electronic bingo card images purchased by a player for each bingo game. The Company's electronic bingo units enable players to play substantially more bingo than they can play on paper cards, leading to a greater spend per player and higher profit per bingo session for the bingo hall operator. GameTech installs the electronic bingo systems at no cost to the operator in exchange for a percentage of the sales generated by each unit. The Company typically enters into one to three year contracts pursuant to which the Company receives up to 30% of the revenues generated by GameTech units or to a lesser extent, charges fixed rates per bingo session. Management believes that because a significant majority of players who use GameTech's electronic bingo units also purchase paper cards the use of GameTech's electronic bingo units generates incremental revenues and profits for the bingo hall operator. |
| Competition |
| The electronic bingo industry is characterized by intense competition based on, among other things, an electronic bingo unit's ability to generate incremental sales for bingo hall operators through product appeal to players, ease of use, ease of serviceability, support and training, distribution, name recognition and price. Certain of the Company's competitors may have significantly greater financial and technical resources than the Company, as well as more established customer bases and distribution channels, which may allow them to move rapidly into the Company's market and acquire significant market share. Increased competition may result in price reductions, reduced operating margins, conversion from lease to sale of the Company's units and loss of market share, any of which could materially and adversely affect the Company's business, operating results or financial condition. Furthermore, the Company's success may benefit existing competitors and induce new competitors to enter the market. The Company has attempted to counter competitive factors by providing superior service and new, innovative, quality products, but there can be no assurance that the Company will continue to be a successful competitor in the electronic bingo industry. In addition, the Company competes with other similar forms of entertainment including casino gaming and lotteries. |
| Business Plan |
| The company's strategic objective is to increase revenues and earnings by capitalizing on the increasing acceptance of electronic bingo and to become the leading provider of electronic bingo units. To reach this objective, the company intends to: (I) Maintain Superior Customer Service, (ii) Increase Penetration With Existing Customers, (iii) Expand Customer Base in Existing Markets, (iv) Expand Into New Markets Domestically, (v) Expand Internationally, (vi) Launch the Satellite Bingo Networks, (vii) Develop New Applications and (viii) Develop Strategic Alliances/Acquire Complementary Companies. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund efforts to expand the company's operations, to repay outstanding indebtedness and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Richard T. Fedor | 44.20% | 28.80% |
| Bonnie G. Fedor | 44.20% | 28.80% |
| Vern Blanchard | 28.10% | 15.60% |
| CJB Family Trust | 28.10% | 14.20% |
| Susan E. Held | 20.80% | 10.90% |
| Gary R. Held | 20.80% | 10.90% |
| Mara Thiesen | 10.70% | 4.80% |
| Clarence H. Thiesen | 10.70% | 4.80% |
| Kenneth Fedor | 5.70% | |
| Emilie Fedor | 5.70% |
| Officer Name | Title | Age |
| Richard T. Fedor | Chairman of the Board and Chief Executive Officer | 51 |
| Clarence H. Thiesen | Chief Financial Officer and Director | 66 |
| Adrejs K. Bunkse | General Counsel - Corporate Secretary | 28 |
| Conrad J. Granito, Jr. | President and Chief Operating Officer | 39 |
| John J. Paulson | Treasurer | 43 |
| Paul M. Wehrs | Vice President - Operations | 48 |
| Gary R. Held | Vice President - Sales & Marketing and Diector | 43 |