| Pamarco Technologies, Inc. | |||
| Proposed Ticker: | PTII | 571 Central Avenue, Unit 119 | |
| Exchange: | NASDAQ-National Market | New Providence, NJ 07974 | |
| Industry: | High-Tech (SIC Code 3577) | (908) 665-8500 | |
| # of Employees: | 630 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/24/97 | |
| U.S. Shares Filed: | 2,800,000 | Filing Range: | $12.00 - $14.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $36,400,000 | |
| Primary Shares: | 2,800,000 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: | 6,599,703 |
| Manager | Tier | Phone |
| Everen Securities, Inc. | Lead Manager | (312) 574-6859 |
| Janney Montgomery Scott | Co-manager | (215) 665-6520 |
| Issuer's Law Firm: | Morgan, Lewis & Bockius |
| Bank's Law Firm: | Benesch Friedlander Coplan & Aronoff |
| Auditor: | Deloitte & Touche |
| Registrar/Transfer Agent: | StockTrans, Inc. |
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: | $53.71 | $45.45 | $26.06 | Assets: | $80.20 |
| Net Income: | $1.78 | $2.25 | $2.58 | Curr Assets: | $34.31 |
| EPS: | $0.85 | $0.44 | $0.61 | Liabilities: | $49.43 |
| Prior EPS: | $0.61 | $4.48 | $2.94 | Curr Liabilities: | $20.78 |
| Cash Flow/Oper: | $4.99 | $5.51 | $0.77 | Equity: | $30.77 |
| Cash Flow/Fin: | $4.28 | -$8.78 | -$3.39 | Cash: | $2.42 |
| Cash Flow/Inv: | -$8.16 | -$8.78 | Working Cap: | $13.54 | |
| Business Description |
| The company is a leading manufacturer, remanufacturer and provider of a wide range of products and services for graphic arts systems. The Company's primary products include: a variety of replaceable steel-based rolls that are used to transfer ink, carry paper, print images or emboss patterns; printing presses used to print newspapers, inserts, magazines and other written or graphic materials; and related parts and accessories. Depending upon the rate of use and the application, these rolls and parts can require refurbishing or replacement up to several times per year at a cost ranging from $100 to $50,000. These products are sold to more than 5,000 active customers. The Company's targeted markets include: original equipment manufacturers of graphic arts systems ("OEMs"); flexible and carton packaging companies; corrugated container companies; decorative product manufacturers; paper manufacturers; newspaper publishers; and commercial printers. The Company has maintained long standing relationships with its customers as a result of its excellent technical capabilities, commitment to outstanding product quality and customer service, and long operating history. |
| Competition |
| The market for the Company's products and services is highly competitive and characterized by a number of industry niches in which a few large manufacturers are the leaders among a highly fragmented supply base. Among the industry niches, the industry is also highly competitive and fragmented on a geographical basis. The Company's competitors vary in size and resources; most are smaller privately held independent companies or subsidiaries of larger companies, some of which are much larger and have greater resources than the Company. The Company's principal competitors include Praxair in the anilox roll market, Rohlen in the embossing roll market, Southern Gravure in the gravure roll market, Bottcher America Corporation in the rubber roll market and Goss Graphic Systems, Inc. in the offset press market. None of the Company's principal competitors compete with the Company in all of its product and service lines. The Company believes that the principal competitive factors in the market in which the Company competes are product quality, breadth of product line, on-time delivery, customer service, reliability, price and technology. The Company believes that its long-standing customer relationships reflect its ability to compete favorably with respect to each of those factors. |
| Business Plan |
| The Company's objective is to expand its position as a leading provider of a wide range of products and services for graphic arts systems. The Company has developed a strategy to become a world-wide, single source provider of products and services under the Pamarco name. The Company believes this strategy provides it with a competitive advantage in serving the needs of its targeted markets, including the trend toward supplier consolidation. Key elements of this strategy include: (I) Developing New Products, (ii) Growth through Acquisitions, (iii) Capitalize on Synergies from Acquired Businesses, (iv) Continuously Improve Operating Processes and (v) International Expansion. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay bank debt and working capital and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Bradford Venture Partners, L.P. | 31.42% | 15.82% |
| Bradford Investors, L.P. | 18.46% | 9.30% |
| Overseas Equity Investors Partners, L.P. | 17.82% | 8.98% |
| Maurice A. Buckley | 13.57% | 10.36% |
| Christopher J. Lunt | 6.23% | 4.72% |
| Officer Name | Title | Age |
| Thomas L. Ferguson | Chairman of the Board of Directors | 38 |
| Maurice Buckley | Chief Executive Officer, President and Director | 57 |
| Terence W. Ford | Managing Director of Pamarco's European subsidiary | 51 |
| Dennis E. Andersen | President and Chief Executive Officer aof Armotek | 58 |
| Christopher J. Lunt | President of Dauphin and Director | 34 |
| Max Gysin | President of Diamond | 56 |
| Larry A. Handeli | Vice President, Chief Financial Officer and Secretary | 42 |
| Harry M. Cook | Vice President, Chief Operating Officer and Director; President of Pamarco | 68 |