| Denali Incorporated | |||
| Ticker: | DNLI | 1360 Post Oak Blvd., Suite 2470 | |
| Exchange: | NASDAQ-National Market | Houston, TX 77056 | |
| Industry: | Service (SIC Code 7389) | (713) 627-0933 | |
| # of Employees: | 612 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/1/97 | |
| U.S. Shares: | 2,100,000 | Offer Date: | 11/20/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $13.00 - $15.00 | |
| Primary Shares: | 2,100,000 | Offer Price: | $13.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.91 | |
| Offering Amount: | $29,400,000 | Selling: | $0.50 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Morgan Keegan & Company, Incorporated | Lead Manager | (901) 529-5357 |
| Rauscher Pierce Refsnes, Inc. | Co-manager | (214) 989-1588 |
| Issuer's Law Firm: | Hutcheson & Grundy, L.L.P. |
| Bank's Law Firm: | Vinson & Elkins |
| Auditor: | Ernst & Young |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/28/97 | 6/28/97 | ||||
| Revenue: | $71.10 | Assets: | $41.08 | ||
| Net Income: | $0.32 | Curr Assets: | $26.28 | ||
| EPS: | $0.09 | Liabilities: | $40.43 | ||
| Prior EPS: | -$0.44 | Curr Liabilities: | $17.71 | ||
| Cash Flow/Oper: | $0.63 | Equity: | $0.66 | ||
| Cash Flow/Fin: | $4.21 | Cash: | $0.33 | ||
| Cash Flow/Inv: | -$4.63 | Working Cap: | $8.57 | ||
| Business Description |
| The company is a rapidly growing provider of products and services for handling critical fluids, which are fluids that are economically valuable or potentially hazardous to the environment. The Company is a leading manufacturer of fiberglass composite underground storage tanks ("USTs"), steel rectangular aboveground storage tanks ("ASTs") and engineered fiberglass reinforced composites for handling corrosive fluids. Critical fluids handling products and services are used in a wide variety of applications, including in retail petroleum marketing and in petroleum, chemical, pulp and paper, electric power and other industrial process plants.Prior to forming the Company, the Company's Chairman and Chief Executive Officer, Stephen T. Harcrow, was President of EnviroTech, a business unit of Baker Hughes Incorporated, from 1988 to 1993. EnviroTech was a manufacturer of equipment for process industries. During Mr. Harcrow's tenure as President, EnviroTech grew through the acquisition of manufacturers of fluid separation, pumping and measurement products, with annual revenues increasing from approximately $365 million up to $680 million. Since the Company's formation, five other former employees of EnviroTech have joined the Company as executive officers. |
| Competition |
| The markets for the Company's products are fragmented and highly competitive. Although none of the Company's competitors is considered dominant, there are competitors that have significantly greater resources than the Company, which, among other things, could be a competitive disadvantage to the Company in securing certain projects. |
| Business Plan |
| The Company's objective is to become the leading provider of a broad range of products and services for handling critical fluids through strategic acquisitions and internal growth. The Company believes that the fragmented nature of the critical fluids handling industry, which is comprised of many companies with limited product ranges or serving limited geographic areas, will provide continued acquisition and internal growth opportunities. The Company also believes that these opportunities provide the Company with the ability to offer a comprehensive range of specialized solutions for meeting customers' critical fluids handling needs. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay outstanding indebtedness, to redeem shares of preferred stock and to provide working capital. |
| Name of Shareholder | % Owned Before | % Owned After |
| Stephen T. Harcrow | 17.20% | |
| Stephen M. Youts | 15.70% | |
| Richard D. Robins | 15.70% | |
| J. Taft Sumonds | 15.70% | |
| Ernest H. Cockrell | 15.70% | |
| Wolfram Vedder | 7.80% | |
| Thomas D. Simmons, Jr. | 7.80% |
| Officer Name | Title | Age |
| Stephen T. Harcrow | Chairman of the Board and CEO | 50 |
| R. Kevin Andrews | Chief Financial Officer | 32 |
| Ed de Boer | Chief Operating Officer | 54 |
| Cathy L. Smith | General Counsel | 36 |
| Robert B. Bennett | Vice President (Containment Products Group) | 55 |
| Lee W. Orr | Vice President (Engineered Products Group) | 39 |
| Melford S. Carter, Jr. | Vice President of Business Development | 35 |