| Friedman, Billings, Ramsey Group, Inc. | |||
| Ticker: | FBG | 1001 Nineteenth Street North | |
| Exchange: | New York Stock Exchange | Arlington, VA 22209 | |
| Industry: | Financial (SIC Code 6211) | (703) 312-9500 | |
| # of Employees: | 230 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/30/97 | |
| U.S. Shares: | 11,000,000 | Offer Date: | 12/22/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $18.00 - $20.00 | |
| Primary Shares: | 10,000,000 | Offer Price: | $20.00 | |
| Secondary Shares: | 1,000,000 | Gross Spread: | $1.40 | |
| Offering Amount: | $209,000,000 | Selling: | $0.84 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 45,029,000 |
| Manager | Tier | Phone |
| Friedman, Billings, Ramsey & Co., Inc. | Lead Manager | (703) 312-9571 |
| Bear, Stearns & Co. Inc. | Co-manager | (212) 272-4850 |
| CS First Boston | Co-manager | (212) 325-2000 |
| Issuer's Law Firm: | Wachtell, Lipton, Rosen & Katz |
| Bank's Law Firm: | Gibson, Dunn & Crutcher |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $55.16 | $67.09 | $25.61 | Assets: | $119.22 |
| Net Income: | $17.29 | $12.63 | $9.91 | Curr Assets: | |
| EPS: | $0.44 | $0.32 | $0.25 | Liabilities: | $61.10 |
| Prior EPS: | $0.26 | $23.26 | -$9.69 | Curr Liabilities: | |
| Cash Flow/Oper: | $11.03 | -$15.02 | $1.57 | Equity: | $58.12 |
| Cash Flow/Fin: | $1.55 | -$1.36 | -$1.95 | Cash: | $27.57 |
| Cash Flow/Inv: | -$2.29 | -$1.36 | |||
| Business Description |
| The company is a full service investment banking firm focused on investment banking, research, institutional brokerage and asset management. The company's strategy since inception has been to target specific industry sectors where it believes it can develop a unique research perspective. The Company then leverages this research perspective with its capital markets expertise to provide value for its clients. Using this approach, the company has achieved a 48% compounded annualized growth rate in revenues since its inception in 1989. The company believes the success of its strategy is further demonstrated by its increasing market presence and the aftermarket performance of the companies for which it has acted as lead or co-manager. Year to date as of October 17, 1997, the company was ranked fourth in terms of lead managed U.S. issuer initial public offering ("IPO") dollar volume behind Goldman, Sachs & Co., Merrill Lynch & Co., and Morgan Stanley & Co., and for the period from January 1, 1996 until October 17, 1997 was ranked #1 in aftermarket performance of domestic IPOs, according to CommScan EquiDesk. |
| Competition |
| The Company is engaged in the highly competitive securities brokerage and financial services businesses. The Company competes directly with large Wall Street securities firms, securities subsidiaries of major commercial bank holding companies, major regional firms and smaller niche players. To an increasing degree, the Company also competes for various segments of the financial services business with other institutions, such as commercial banks, savings institutions, mutual fund companies, life insurance companies and financial planning firms. The Company believes that following a strategy of offering superior service and investment advice in particular areas of expertise and to a particular client base differentiates it from competitors. In addition to competing for investment clients, companies in the securities industry compete to attract and retain experienced and productive investment professionals. Many competitors have greater personnel and financial resources than the Company. Larger competitors are able to advertise their products and services on a national or regional basis and may have a greater number and variety of distribution outlets for their products, including retail distribution. Discount brokerage firms market their services through aggressive pricing and promotional efforts. In addition, some competitors have much more extensive investment banking activities than the Company and therefore may possess a relative advantage with regard to access to deal flow and capital. Recent rapid advancements in computing and communications technology are substantially changing the means by which financial services are delivered. These changes are providing consumers with more direct access to a wide variety of financial and investment services, including market information and on-line trading and account information. Advancements in technology also create demand for more sophisticated levels of client services. The Company is committed to utilizing technological advancements to provide a high level of client service. Provision of these services may entail considerable cost without an offsetting source of revenue. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes and potentially repayment of indebtedness. |
| Officer Name | Title | Age |
| Emanuel J. Friedman | Chairman and Chief Executive Officer; Director | 51 |
| Eric Y. Generous | Executive Vice President and Chief Financial Officer | 37 |
| Nicholas J. Nichols | Executive Vice President and Director of Compliance | 57 |
| Robert S. Smith | General Counsel | 38 |
| W. Russell Ramsey | President and Secretary; Director | 37 |
| Kurt R. Harrington | Treasurer and Chief Accounting Officer | 44 |
| Eric F. Billings | Vice Chairman and Chief Operating Officer; Director | 45 |