| BMJ Medical Management, Inc. | |||
| Proposed Ticker: | BONS | 4800 North Federal Highway, Suite 104D | |
| Exchange: | NASDAQ-National Market | Boca Raton, FL 33431 | |
| Industry: | Service (SIC Code 8099) | (561) 391-1311 | |
| # of Employees: | 555 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/16/97 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $34,500,000 | |
| Primary Shares: | 0 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| Hambrecht & Quist Incorporated | Lead Manager | (415) 439-3626 |
| Raymond James & Associates, Inc. | Co-manager | (813) 573-8108 |
| Volpe Brown Whelan & Company | Co-manager | (415) 274-4463 |
| Issuer's Law Firm: | O'Sullivan Graev & Karaball, L.LP |
| Bank's Law Firm: | Cravath, Swaine & Moore |
| Auditor: | Ernst & Young |
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: | $6.03 | $19.91 | $0.00 | Assets: | $29.46 |
| Net Income: | -$1.11 | -$1.88 | -$0.05 | Curr Assets: | $18.86 |
| EPS: | -$0.07 | -$0.11 | $0.00 | Liabilities: | $17.91 |
| Prior EPS: | -$1.22 | -$0.05 | Curr Liabilities: | $11.37 | |
| Cash Flow/Oper: | -$0.98 | $14.67 | $1.01 | Equity: | $11.55 |
| Cash Flow/Fin: | $7.05 | -$7.97 | -$0.01 | Cash: | $6.92 |
| Cash Flow/Inv: | -$4.63 | -$7.97 | Working Cap: | $7.49 | |
| Business Description |
| The company is a physician practice management company that provides management services to physician practices that focus on musculoskeletal care, which involves the medical and surgical treatment of conditions relating to bones, muscles and joints. The broad spectrum of musculoskeletal care offered by the physician practices ranges from acute procedures, such as spine or other complex surgeries, to the treatment of chronic conditions, such as arthritis and back pain. The management services provided by the Company include physician practice and network development, marketing, payor contracting and financial, administrative and clinical information management. As of the date of this Prospectus, the Company has affiliated (the 'Affiliation Transactions') by entering into management services agreements (the 'Management Services Agreements') with 20 Existing Practices comprising 87 doctors practicing in Arizona, California, Florida, Pennsylvania and Texas. The market for musculoskeletal care in the United States is significant and growing. |
| Competition |
| The Company competes with many other entities to affiliate with musculoskeletal practices. Several companies that have established operating histories and greater resources than the Company are pursuing the acquisition of the assets of both general and specialty practices and the management of such practices. Other PPMs and some hospitals, clinics, HMOs and provider networks engage in activities similar to those of the Company. There can be no assurance that the Company will be able to compete effectively with such competitors, that additional competitors will not enter the market, or that such competition will not make it more difficult to affiliate with, and to enter into agreements to provide management services to, medical practices on terms beneficial to the Company. The Practices will compete with local musculoskeletal care service providers as well as some managed care organizations. The Company believes that changes in governmental and private reimbursement policies and other factors have resulted in increased competition for consumers of medical services. The Company believes that the cost, accessibility and quality of services provided are the principal factors that affect competition. There can be no assurance that the Practices will be able to compete effectively in the markets that they serve. The inability of the Practices to compete effectively would have a material adverse effect on the Company. Further, the Practices compete with other providers for musculoskeletal managed care contracts. The Company believes that trends toward managed care have resulted in increased competition for such contracts. Other practices and management service organizations may have more experience than the Practices and the Company in obtaining such contracts. There can be no assurance that the Company and the Practices will be able to successfully obtain sufficient managed care contracts to compete effectively in the markets they serve. The inability of the Practices to compete effectively for and obtain such contracts could materially adversely affect the Company. |
| Business Plan |
| The Company's strategy consists of (i) expanding into targeted new markets by affiliating with leading musculoskeletal practices; (ii) continuing to develop its existing markets by strengthening and expanding the Practices in order to achieve significant local market presence; (iii) introducing ancillary services to expand the breadth of care directly offered by the Practices' physicians; and (iv) developing and implementing a disease management information system to foster curative and palliative regimens, improve provider and patient access to resources and technology and deliver cost-effective, quality care. The Company's long-term strategy includes developing and implementing a musculoskeletal disease management program. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of debt and general corporate purposes including possible future affiliations. |
| Name of Shareholder | % Owned Before | % Owned After |
| Naresh Nagpal, M.D. | 9.60% |
| Officer Name | Title | Age |
| Ronald Garey | Controller | 42 |
| Sherry Pulliam | Director of Financial Operations and Assistant Treasurer | 42 |
| David H. Fater | Executive Vice President, Chief Financial Officer and Director | 50 |
| Naresh Nagpal, M.D. | President, Chief Executive Officer and Director | 47 |
| Joanna Robben | Regional Vice President, Central Region | 37 |
| Glenn Cozen | Regional Vice President, Western Region | 43 |
| David K. Ellwanger | Senior Vice President, Eastern Region | 40 |
| Tony Anderson | Treasurer | 38 |