| Triad Medical, Inc. | |||
| Proposed Ticker: | TRMD | 23161 Mill Creek Drive, Suite 300 | |
| Exchange: | NASDAQ-National Market | Laguna Hills, CA 92653 | |
| Industry: | Wholesale (SIC Code 5047) | (714) 770-0292 | |
| # of Employees: | 360 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/11/97 | |
| U.S. Shares Filed: | 4,000,000 | Filing Range: | $10.00 - $12.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $44,000,000 | |
| Primary Shares: | 4,000,000 | Expenses: | $3,800,000 | |
| Secondary Shares: | 0 | Shares Out After: | 9,094,973 |
| Manager | Tier | Phone |
| Montgomery Securities | Lead Manager | (415) 627-2100 |
| Smith Barney Inc. | Co-manager | (212) 723-7300 |
| Wedbush Morgan Securities | Co-manager | (213) 688-8050 |
| Issuer's Law Firm: | Porter & Hedges |
| Bank's Law Firm: | Baker & Botts |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
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: | $127.89 | $64.89 | $64.77 | Assets: | $76.11 |
| Net Income: | $4.92 | $1.74 | $2.70 | Curr Assets: | |
| EPS: | $0.54 | $0.19 | $0.30 | Liabilities: | $23.25 |
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $52.86 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company was formed to create a national leader in the contract sales and distribution of specialty medical products designed for the hospital and alternate-site health care markets (including sub-acute care facilities, home care companies.) The Company contracts with specialty medical product manufacturers to provide outsourcing of the sales, marketing, distribution and customer service functions for all or certain of their product lines, thereby eliminating the manufacturers' need to develop and maintain their own sales force or rely on a number of independent local and regional distributors to achieve national coverage. The Company provides a broad range of specialty medical products across the full continuum of patient care, including products used in the surgical, anesthesiology / pain management, critical care, cardiovascular / vascular and infusion therapy markets. It represents over 180 manufacturers and sells products in all 50 states. According to the Health Industry Distributor Association, the medical instrument and supply industry (excluding pharmaceuticals) in the United States represented an estimated annual market in excess of $30 billion in 1996, of which the hospital and the alternate-site markets represented approximately $16 billion and $14 billion, respectively. The Company estimates that there are over 1,200 companies engaged in the contract sales and distribution of specialty medical products in the United States, most of which are smaller companies serving local or regional markets and providing representation for a limited number of manufacturers and product lines. |
| Competition |
| The Company competes with manufacturers who sell their medical products directly to health care providers and, to a lesser extent, with national medical product suppliers. Competition from national medical suppliers does not generally occur until a product line has substantially matured, which takes several years into its life cycle. Some of these manufacturers and national suppliers are substantially larger and have substantially greater financial and other resources than the Company. The Company also faces competition from many regional and local distributors in its niche markets, which competitors are generally relatively small local or regional owner-operated businesses. Barriers to entry for distribution in the specialty medical product market are relatively low, and the risk of new competitors entering the market, particularly in local and regional areas, is high. In response to competitive pressures from any of its current or future competitors, the Company may be required to lower selling prices in order to maintain or increase market share, and such measures could adversely affect the Company's operating results. The Company believes the principal competitive factors in the contract sales and distribution business are the experience, training and educational support capabilities of the sales force, the quality and level of customer support service, the breadth and quality of products offered, the information systems and infrastructure available and the consistency and stability of business relationships with customers and product pricing. |
| Business Plan |
| The company's objective is to become the leading national contract sales and distribution organization focused on specialty medical products. Due to the fragmented state of the industry, the company believes significant opportunities are available to a contract sales and distribution company employing customer-oriented sales service personnel and providing a broad range of specialty medical products and related services on a national basis. To achieve its objective, the company's strategy emphasizes the following elements: (I) Growth Through Acquisitions, (ii) Profitability Improvements, (iii) Internal Growth, (iv) Strategic Relationships and (v) Acquisition Strategy. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used the cash portion of the purchase price for the Founding Companies and to repay indebtedness of Triad and the founding companies. |