| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| PMCC Financial Corp. |
| 66 Powerhouse Road, Roslyn Heights, NY 11577 * (516) 625-3000 |
| The company is a specialty consumer financial services company providing a broad array of residential mortgage products to customers ranging from prime credit borrowers seeking conventional loans, to persons who cannot qualify for conventional loans |
| Manager | Tier | Phone |
| Coleman and Company Securities, Inc. | Lead Manager | (212) 506-0570 |
| ISG Capital Markets, LLC | Co-manager |
| AMEX: | PFC | Financial: | SIC 6162 | |
| Type of Shares: | Common Shares | Filing Date: | 10/24/97 | |
| U.S. Shares: | 1,250,000 | Offer Date: | 2/17/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 1,250,000 | Offer Price: | $9.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.72 | |
| Offering Amount: | $12,500,000 | Selling: | $0.40 | |
| Expenses: | $0 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 3,750,000 | |||
| Employees: | 68 |
| Issuer's Law Firm: | Ruskin, Moscov, Evans & Faltischek |
| Bank's Law Firm: | Brock, Fensterstock, Silverstein, McAuliffe & Wade |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
| Auditor: | KPMG Peat Marwick |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $7.15 | $5.61 | $2.83 | Assets: | $45.71 |
| Net Income: | $0.60 | $0.59 | $0.19 | Curr Assets: | |
| EPS: | $0.24 | $0.23 | Liabilities: | $42.94 | |
| Prior EPS: | Curr Liab: | ||||
| Cash Flow/Oper: | -$7.70 | -$3.57 | -$24.98 | Equity: | $2.77 |
| Cash Flow/Fin: | $7.45 | $3.13 | $25.24 | Cash: | $0.64 |
| Cash Flow/Inv: | $0.26 | $0.37 | |||
| Competition |
| The Company faces intense competition in all aspects of its mortgage banking business. The Company competes with numerous financial intermediaries, such as other mortgage banking companies, commercial banks, savings associations, credit unions, loan brokers and insurance companies in the origination of mortgage loans. Competition can take many forms, including convenience in obtaining a loan, customer service, marketing and distribution channels and interest rates charged to borrowers. Competition may be affected by, among other things, fluctuations in interest rates and general economic conditions. Although the Company believes that its competitive advantage exists primarily in its offering of a broad menu of mortgage loan products with competitive features, its flexible residential rehabilitation financing programs, its emphasis on the quality of its service, and the pricing of its products at competitive rates, there can be no assurance that the Company will be able to compete effectively in this highly competitive industry, which could materially adversely affect the Company's business, prospects, financial condition, and results of operations. The current level of gains realized by the Company and its competitors on the origination and sale of sub-prime mortgage loans could attract additional competitors into this market. Certain large finance companies and conventional mortgage originators have announced their intention to originate sub-prime mortgage loans, and some of these competitors have commenced offering sub-prime loan products to customers similar to the borrowers targeted by the Company. In addition, establishing a broker-sourced loan business requires a substantially smaller commitment of capital and human resources than a direct-sourced loan business. This relatively low barrier to entry permits new competitors to enter this market quickly and compete with the Company's wholesale lending business. Additional competition may lower the rates that the Company may charge borrowers, thereby potentially lowering the gain on future loan sales. Increased competition may also reduce the volume of the Company's loan originations and loan sales and increase the demand for the Company's experienced personnel. The Company also faces a risk that their personnel will leave the Company and work for a competitor of the Company. |
| Business Plan |
| The company's operating strategy to accomplish the Company's growth involves: (I) Continuing to Provide Quality Service, (ii) Maintaining Underwriting Standards, (iii) Broadening Product Offerings, (iv) Delegated Underwriting Approval Status and (v) Investing in Information Systems. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for geographic expansion of mortgage banking operations in the Northeast/mid-Atlantic region and Florida, expansion of residential rehabilitation financing activities, upgrade of information systems, Subchapter S corporation distributions to pay shareholder taxes, repayment of debt, and general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Ronald Friedman | 0.75 | 0.50 |
| Robert Friedman | 0.25 | 0.17 |
| Officer Name | Title | Age |
| Robert Friedman | Chairman of the Board of Directors, Chief Operating Officer, Secretary, and Treasurer | 59 |
| Timothy J. Mayette | Chief Finanical Officer | 37 |
| Ronald Friedman | Director, President and Chief Executive Officer | 32 |
| Keith S. Haffner | Executive Vice President | 50 |
| Additional Underwriter Compensation |
| Warrant to purchase 125,000 shares/units at a nominal price. |
| Exercise price of $9.60 for 4 year(s), 1 year(s) from 2/17/98. |
| $72,000.00 consulting agreement for 2 year(s). |