| LECG, Inc. | |||
| Ticker: | XPT | 2000 Powell Street | |
| Exchange: | New York Stock Exchange | Emeryville, CA 94608 | |
| Industry: | Service (SIC Code 8742) | (510) 653-9800 | |
| # of Employees: | 129 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/16/97 | |
| U.S. Shares: | 4,500,000 | Offer Date: | 12/17/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 3,060,000 | Offer Price: | $9.00 | |
| Secondary Shares: | 1,440,000 | Gross Spread: | $0.63 | |
| Offering Amount: | $54,000,000 | Selling: | $0.37 | |
| Expenses: | $700,000 | Reallowance: | $0.10 | |
| Shares Out After: | 13,400,000 |
| Manager | Tier | Phone |
| Donaldson, Lufkin & Jenrette Securities Corp. | Lead Manager | (212) 371-0641 |
| Legg Mason Wood Walker, Inc. | Co-manager | (410) 539-4038 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Katten Muchin & Zavis |
| Auditor: | Arthur Andersen |
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: | $31.39 | $20.88 | $14.40 | Assets: | $18.26 |
| Net Income: | $3.10 | $2.21 | $2.50 | Curr Assets: | $15.65 |
| EPS: | $0.32 | $0.22 | Liabilities: | $13.28 | |
| Prior EPS: | $3.46 | $4.38 | Curr Liabilities: | $10.30 | |
| Cash Flow/Oper: | $5.63 | -$2.12 | -$3.65 | Equity: | $4.98 |
| Cash Flow/Fin: | -$5.15 | -$0.97 | -$0.53 | Cash: | $0.37 |
| Cash Flow/Inv: | -$1.07 | -$0.97 | Working Cap: | $5.35 | |
| Business Description |
| The company is a leading economic consulting services firm that provides sophisticated economic and financial analysis, expert testimony, litigation support and strategic management consulting to a broad range of public and private enterprises. The Company's areas of expertise include antitrust, industry deregulation, damages analyses, economic and financial modeling, intellectual property valuation, environmental economics and public policy. Services are provided by renowned academics, recognized industry leaders and former high-level government officials ("Experts") who are supported by a highly educated professional staff, most of whom have Ph.D.s or advanced degrees in economics, finance or related disciplines ("Professional Staff"). The Experts include those who provide services to the Company on an exclusive basis ("Principals") and on a non-exclusive basis ("Affiliates"). The role of the Professional Staff is critical as it enables the Experts to leverage their expertise allowing the Company to deliver high quality work product to its clients. The Company believes that its structure enables its Experts to provide sophisticated economic consulting services efficiently and effectively to clients throughout the world. In 1996 alone, the Company performed over 500 assignments for more than 300 clients in eight countries. |
| Competition |
| The market for economic consulting services is intensely competitive, highly fragmented and subject to rapid change. The market includes a large number of participants from a variety of market segments, including economic consulting firms, general management consulting firms, the consulting practices of the "Big Six" accounting firms, technical and economic advisory firms, regional and specialty consulting firms, small "niche" consulting companies and individual academics. Many of these companies are national and international in scope and have significantly greater personnel, financial, technical and marketing resources than the Company, generate greater revenues and have greater name recognition than the Company. There are relatively low barriers to entry into the Company's markets and the Company has faced and expects to continue to face additional competition from new entrants into the economic consulting industry. |
| Business Plan |
| In addition to growth through additional engagements performed by the Company's current Experts, the Company believes that there are additional growth opportunities through (i) attracting additional Experts, (ii) expanding geographically in the United States and abroad, and (iii) acquiring economic consulting organizations on a select basis. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes, including working capital and capital expenditures and for payment of undistributed S Corporation earnings. |
| Name of Shareholder | % Owned Before | % Owned After |
| David J. Teece | 28.20% | 17.60% |
| Thomas M. Jorde | 15.00% | 9.40% |
| Gordon C. Rausser | 15.00% | 9.40% |
| Robert G. Harris | 11.80% | 7.40% |
| Richard J. Gilbert | 11.80% | 7.40% |
| Officer Name | Title | Age |
| David J. Teece | Chairman of the Board | 49 |
| Kimberly D. Gilmour | Chief Financial Officer and Secretary | 39 |
| Donald A. Bunch | Chief Operating Officer | 52 |
| Thomas M. Jorde | President and Director | 50 |