| I.C. Isaacs & Company, Inc. | |||
| Ticker: | ISAC | 350 Fifth Avenue, Suite 1029 | |
| Exchange: | NASDAQ-National Market | New York, NY 10118 | |
| Industry: | Manufacturing (SIC Code 2253) | (212) 563-2720 | |
| # of Employees: | 900 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/3/97 | |
| U.S. Shares: | 3,800,000 | Offer Date: | 12/17/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $12.00 - $14.00 | |
| Primary Shares: | 3,800,000 | Offer Price: | $10.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.70 | |
| Offering Amount: | $49,400,000 | Selling: | $0.40 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 9,800,000 |
| Manager | Tier | Phone |
| Robinson-Humphrey Company, Inc., The | Lead Manager | (404) 266-6450 |
| Legg Mason Wood Walker, Inc. | Co-manager | (410) 539-4038 |
| Issuer's Law Firm: | Piper & Marbury |
| Bank's Law Firm: | Alston & Bird |
| Auditor: | BDO Seidman |
| 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: | $118.66 | $77.71 | $51.90 | Assets: | $55.12 |
| Net Income: | $4.70 | $4.63 | $1.80 | Curr Assets: | $50.49 |
| EPS: | $0.65 | $0.64 | Liabilities: | $32.25 | |
| Prior EPS: | -$5.87 | -$1.76 | Curr Liabilities: | $31.10 | |
| Cash Flow/Oper: | $4.30 | $7.08 | $1.68 | Equity: | $22.86 |
| Cash Flow/Fin: | -$4.14 | -$0.64 | -$0.16 | Cash: | $1.50 |
| Cash Flow/Inv: | -$0.63 | -$0.64 | Working Cap: | $19.39 | |
| Business Description |
| The company is designer, manufacturer and marketer of branded sportswear. The company offers full lines of sportswear for young men, women and boys under the BOSS brand and the Beverly Hills Polo Club in the U.S., Puerto Rico and Europe. The Company manufactures and markets sportswear under the BOSS brand for sale at specified price points in the United States and Puerto Rico and has positioned the BOSS line to appeal to consumers who desire a fresh, urban, fashion-forward look. Through creative and innovative marketing, the Company has created powerful brand appeal for the BOSS line and has become an active influence in young men's fashion. The BOSS collection has been expanded from an initial line of denim products into a full array of sportswear consisting of jeans, tee shirts, sweatshirts, shorts, knit and woven shirts and outerwear, all of which are characterized by innovative design, creative graphics and bold uses of color. The Company also markets a juniors' sportswear line under the BOSS brand for young women, which includes a full selection of denim products and active sportswear. Over the past three years, the Company's net sales of BOSS sportswear increased at a compounded annual growth rate of 24.7%. In 1996, net sales of BOSS sportswear accounted for 72.6% of the Company's net sales. |
| Competition |
| The apparel industry is highly competitive, fragmented and subject to rapidly changing consumer demands and preferences. The Company believes that its success depends in large part upon its ability to anticipate, gauge and respond to changing consumer demands and fashion trends in a timely manner and upon the continued appeal to consumers of the BOSS and Beverly Hills Polo Club brand names. Failure by the Company to identify and respond appropriately to changing consumer demands and fashion trends could adversely affect consumer acceptance of its products and could have a material adverse effect on the Company's financial condition and results of operations. The Company competes with numerous apparel manufacturers and distributors, many of which have greater financial resources than the Company. The Company's products also compete with a substantial number of designer and non-designer lines. Although the level and nature of competition differ among its product categories, the Company believes that it competes primarily on the basis of brand image, quality of design and value pricing. Increased competition by existing and future competitors could result in reductions in sales or prices of the Company's products, which could have a material adverse effect on the Company's financial condition and results of operations. In addition, the apparel industry historically has been subject to substantial cyclical variations, and a recession in the general economy or uncertainties regarding future economic prospects that affect consumer spending habits could have a material adverse effect on the Company's financial condition and results of operations. |
| Business Plan |
| The Company's growth strategy includes continued capitalization on its competitive strengths and the implementation of specific strategies for continued expansion. The Company's principal growth strategies are as follows: (I) Broaden Product Offerings, (ii) Enhance Marketing Programs, (iii) Expand Channels of Distribution and (iv) Increase European Presence. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay outstanding debt under the company's credit facilities, to pay the initial S Corporation distribution, for general corporate purposes and working capital. |
| Name of Shareholder | % Owned Before | % Owned After |
| Ira J. Hechler | 20.28% | 12.42% |
| Robert J. Arnot | 11.19% | 6.85% |
| Gerald W. Lear | 11.19% | 6.85% |
| Jon Hechler | 9.14% | 5.60% |
| Gary B. Brashers | 7.21% | 4.41% |
| The Stanley Keller Irrevocable Trust | 6.59% | 4.03% |
| Officer Name | Title | Age |
| Robert J. Arnot | Chairman of Board, Co-Chief Executive Officer and Director | 49 |
| Gerald W. Lear | President, co-Chief Executive Officer and director | 54 |
| Eugene C. Wielepski | Vice President--Finance, Chief Financial Officer and Director | 51 |
| Gary B. Brashers | Vice President--Manufacturing, Chief Operating Officer and Director | 49 |
| Thomas P. Ormandy | Vice President--Sales | 46 |