| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Tag-It Pacific, Inc. |
| 3820 South Hill Street, Los Angeles, CA 90037 * (213) 234-9606 |
| The company is a single source provider of complete brand identity programs to manufacturers of fashion apparel and accessories as well as specialty retailers and mass merchandisers. |
| Manager | Tier | Phone |
| Cruttenden Roth Incorporated | Lead Manager | (800) 678-9147 |
| AMEX: | TAG | Manufacturing: | SIC 2759 | |
| Type of Shares: | Common Shares | Filing Date: | 10/21/97 | |
| U.S. Shares: | 1,680,000 | Offer Date: | 1/22/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $5.00 - $6.00 | |
| Primary Shares: | 1,680,000 | Offer Price: | $4.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.32 | |
| Offering Amount: | $9,240,000 | Selling: | $0.19 | |
| Expenses: | $915,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 3,750,000 | |||
| Employees: | 390 |
| Issuer's Law Firm: | Troop Meisinger Steuber & Pasich, LLP |
| Bank's Law Firm: | Graham & James |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
| Auditor: | BDO Seidman |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 8/31/97 | 8/31/97 | ||||
| Revenue: | $19.54 | Assets: | $5.35 | ||
| Net Income: | -$0.06 | Curr Assets: | $4.38 | ||
| EPS: | -$0.03 | Liabilities: | $7.49 | ||
| Prior EPS: | -$0.37 | Curr Liab: | $6.19 | ||
| Cash Flow/Oper: | -$0.23 | Equity: | -$2.14 | ||
| Cash Flow/Fin: | $0.90 | Cash: | $0.15 | ||
| Cash Flow/Inv: | -$0.61 | Working Cap: | -$1.81 | ||
| Competition |
| The industries in which the Company competes are highly competitive and fragmented and include numerous local and regional companies that provide some or all of the services offered by the Company. The Company also competes with United States and international design companies, distributors and manufacturers of tags, packaging products and trims. Some of the Company's competitors, including Paxar, Inc., RVL, Inc., International Packaging, Inc., Universal Button, Inc., and Scovill Fasteners, Inc., have greater name recognition, longer operating histories and, in many cases, substantially greater financial and other resources than the Company. Such competitors have used their economic strength to influence the market to continue to buy their products which compete with the Company's products. In addition, new competitors, potentially with substantially greater resources than the Company, may arise and may develop products which compete with the Company's products. Moreover, there can be no assurance that new or proprietary technology will not be introduced by an existing or new competitor that may make some of the Company's products or services obsolete. To the extent that the Company is unable to compete successfully against its existing and future competitors, its business, operating results and financial condition would be materially adversely affected. While the Company believes that it competes effectively within the value-added design and packaging industry, there are numerous factors that could reduce the Company's ability to compete effectively. |
| Business Plan |
| The Company's growth strategy includes the following elements: (i) expand its customer base by promoting its single-source solution and in-house design, manufacturing and distribution coordination capabilities to major retailers and manufacturers around the world, (ii) increase customer penetration by targeting additional product lines within existing accounts, (iii) expand its marketing programs and network of sales offices to cover all major apparel and accessory producing centers, (iv) broaden its target customer base for logos, point-of-sale packaging and signage, tags and labels to include cosmetics and specialty foods manufacturers, (v) create a domestic woven label facility to take advantage of demand for rapid turnaround of samples and short-run production, (vi) pursue private label opportunities, and (vii) remain opportunistic with respect to strategic acquisitions. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness, develop a national sales network, acquire certain fixed assets, increase inventories to maximize efficiencies, and for working capital and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Harrold Dyne | 0.32 | 0.17 |
| Colin Dyne | 0.24 | 0.16 |
| Mark Dyne | 0.19 | 0.12 |
| Saloner Family Investments Limited Partnership | 0.07 | 0.04 |
| Officer Name | Title | Age |
| Mark Dyne | Chairman of the Board | 36 |
| Colin Dyne | Chief Executive Officer, Director and Treasurer; Chief Executive Officer of Tag-It | 34 |
| Jonathan Burstein | Executive Vice President, Sales and Marketing | 31 |
| Jonathan Markiles | Executive Vice President, Strategic Planning and Business Development | 32 |
| Harrold Dyne | President and Director; Chief Executive Officer of Pacific Trim | 65 |
| Additional Underwriter Compensation |
| Warrant to purchase 100,000 shares/units at a nominal price. |