| Brass Eagle, Inc. | |||
| Ticker: | XTRM | 1203A North Sixth Street | |
| Exchange: | NASDAQ-National Market | Rogers, AK 72756 | |
| Industry: | Wholesale (SIC Code 5091) | (501) 621-4390 | |
| # of Employees: | 50 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/23/97 | |
| U.S. Shares: | 2,275,000 | Offer Date: | 11/25/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 2,275,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.77 | |
| Offering Amount: | $25,025,000 | Selling: | $0.46 | |
| Expenses: | $610,000 | Reallowance: | $0.10 | |
| Shares Out After: | 7,306,358 |
| Manager | Tier | Phone |
| McDonald & Company Securities, Inc. | Lead Manager | (216) 443-2370 |
| Dain Bosworth Incorporated | Co-manager | (612) 371-2818 |
| Issuer's Law Firm: | Friday, Eldredge & Clark |
| Bank's Law Firm: | Baker & Hostetler |
| Auditor: | Crowe, Chizek and Company |
| Registrar/Transfer Agent: | SunTrust Bank of Atlanta |
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: | $13.84 | $11.90 | $4.79 | Assets: | $12.20 |
| Net Income: | $1.31 | $1.33 | $0.11 | Curr Assets: | $8.04 |
| EPS: | $0.17 | $0.17 | Liabilities: | $9.95 | |
| Prior EPS: | $1.42 | -$0.05 | Curr Liabilities: | $8.37 | |
| Cash Flow/Oper: | -$0.50 | -$0.93 | $0.18 | Equity: | $2.25 |
| Cash Flow/Fin: | $0.61 | -$0.48 | -$0.13 | Cash: | |
| Cash Flow/Inv: | -$0.11 | -$0.48 | Working Cap: | -$0.33 | |
| Business Description |
| The company is a worldwide leader in the design, manufacture, marketing, and distribution of paintball products, including paintball guns, paintballs and accessories. The Company believes it is the only manufacturer with a full line of products that address step-by-step price points for beginner, recreational, and competition level paintball participants. In addition, Brass Eagle is the only manufacturer to offer paintball products to consumers through easily accessible channels such as mass merchandisers and major sporting goods retailers. As a result of these initiatives, Brass Eagle provides a large consumer base with high quality paintball products and accessories that generally sell for substantially less than those of its competitors. These advances have significantly broadened the paintball industry's consumer base, increased the overall number of paintball participants, and heightened the general awareness of and excitement for the sport. |
| Competition |
| The Company believes that the market for paintball products is currently fragmented and underdeveloped. The Company believes it faces a limited number of competitors, particularly in the beginner and recreational segments, where it concentrates its business, and that it has the leading market share in paintball products. However, there can be no assurance that any number of new competitors, some of which may have significantly greater financial and organizational resources than the Company, will not emerge in the future as the market for paintball products develops, or that the present competitors of the Company will not be able to compete more successfully in the future. For the Company to maintain or increase its market share, it must continue to compete successfully in the design, manufacture, marketing, and distribution of paintball products. |
| Business Plan |
| The Company believes it currently has the leading market share in paintball guns and is a major participant in the paintball and paintball accessories markets. Brass Eagle has established and continues to enhance its position as a worldwide leader in the design, manufacture, marketing, and distribution of paintball products through the following operating strategies:(I) Strong Relationships with Customer Base, (ii) Product Line Expansion and Distribution Channel Segmentation, (iii) Widely Recognized Brand Name and Distinctive Products, (iv) Innovative Product Development and (v) Increasingly Efficient Design and Manufacturing Processes. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of indebtedness, working capital to support the planned growth of its business and other general corporate purposes, which may include the investment in or acquisition of complementary businesses. |
| Name of Shareholder | % Owned Before | % Owned After |
| Anthony J. Dowd | 72.70% | 51.50% |
| Marvin W. Griffin | 12.00% | 8.50% |
| E. Lynn Scott | 5.10% | 3.60% |
| Officer Name | Title | Age |
| marvin W. Griffin | Chairman of the Board of Directors | 59 |
| Stephen J. Mattia | Controller; Assistant Secretary | 49 |
| J.J. Brookshire | Marketing Manager | 32 |
| E. Lynn Scott | President; Chief Executive Officer; Director | 43 |
| Steven R. Cherry | Vice President, Brand Development | 41 |
| Charles L. Prudhomme | Vice President, Marketing and Business Development | 46 |
| Steven R. DeMent | Vice President, Operations | 39 |
| Daniel L. Obergfell | Vice President, Sales | 37 |