| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies | Company's Home Page |
| CPS Systems, Inc. |
| 3400 Carlisle, Suite 500, Dallas, TX 75204 * (214) 855-5277 |
| The company develops, markets, implements and supports fully integrated software applications designed specifically for public sector organizations, including states, counties, townships, city governments and other municipal agencies. |
| Manager | Tier | Phone |
| Cruttenden Roth Incorporated | Lead Manager | (800) 678-9147 |
| Josephthal Lyon & Ross, Inc. | Co-manager | (212) 907-4545 |
| AMEX: | SYS | High-Tech: | SIC 7379 | |
| Type of Shares: | Common Shares | Filing Date: | 10/31/97 | |
| U.S. Shares: | 1,900,000 | Offer Date: | 3/24/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $7.00 - $9.00 | |
| Primary Shares: | 1,900,000 | Offer Price: | $4.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.40 | |
| Offering Amount: | $15,200,000 | Selling: | $0.22 | |
| Expenses: | $313,500 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 6,082,502 | |||
| Employees: | 83 |
| Issuer's Law Firm: | Schreeder, Wheeler & Flint, LLP |
| Bank's Law Firm: | Summit Law Group, P.L.L.C. |
| Registrar/Transfer Agent: | American Securities Transfer, Inc |
| Auditor: | Grant Thornton |
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: | $8.36 | $5.41 | $3.99 | Assets: | $6.14 |
| Net Income: | -$0.25 | $0.13 | -$0.08 | Curr Assets: | $2.56 |
| EPS: | -$0.06 | $0.03 | -$0.02 | Liabilities: | $5.48 |
| Prior EPS: | -$0.06 | Curr Liab: | $2.20 | ||
| Cash Flow/Oper: | $0.55 | $0.37 | -$0.07 | Equity: | $0.66 |
| Cash Flow/Fin: | -$0.10 | -$0.17 | $0.02 | Cash: | $0.45 |
| Cash Flow/Inv: | -$0.25 | -$0.35 | -$0.11 | Working Cap: | $0.37 |
| Competition |
| The market in which the Company competes is highly fragmented, with a large number of competitors that vary in size, primary computer platforms and overall product scope. Within its traditional public sector markets, the Company competes from time to time with (i) custom software and services providers (such as Andersen Consulting, KPMG Peat Marwick and Oracle Corporation), (ii) companies which focus on selected segments of the public sector market (including Systems Computer & Technology, Inc., Manatron, Inc., H.T.E., Inc., American Management Systems, Inc., BRC Holdings, Inc.) and (iii) a significant number of smaller private companies. The Company also competes with in-house management information services staff. In addition, within the market for its Y2K solution products, the Company anticipates that it will compete with companies who focus upon overall enterprise solutions to the Y2K problem. Many of the Company's competitors are more established, benefit from greater name recognition and have substantially greater resources than the Company. Moreover, the Company could face additional competition as other established and emerging companies enter the public sector software application market and/or the Y2K market and new products and technologies are introduced. Increased competition could result in price reductions, fewer customer orders, reduced gross margins and loss of market share, any of which could have a material adverse effect on the Company's business, financial condition and operating results. In addition, current and potential competitors may make strategic acquisitions or establish cooperative relationships among themselves or with third parties, thereby increasing the ability of their products to address the needs of the Company's prospective customers. Accordingly, it is possible that new competitors or alliances among current and new competitors may emerge and rapidly gain significant market share. There can be no assurance that the Company will be able to compete successfully against current and future competitors, and the failure to do so would have a material adverse effect upon the Company's business, financial condition and operating results. |
| Business Plan |
| The company's growth strategy with respect to serving the public sector marketplace, providing Y2K solutions, and capitalizing on the shift to client/server-based systems includes the following elements: (I) Recurring Revenue, (ii) Leverage the Y2K Opportunity, (iii) Expand Geographic Initiatives, (iv) Strategic Acquisitions, (v) Leverage Software Development Relationship, (vi) Capitalize on Public Sector Expertise, (vii) Maximize Integrated Solutions to Become Sole Source Provider and (viii) Leverage Relationships with Y2K Tool and Service Providers. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of indebtedness, working capital, potential acquisitions and other general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Sidney H. Cordier | 0.24 | 0.19 |
| Paul E. Kana | 0.24 | 0.19 |
| Brian R. Wilson | 0.24 | 0.19 |
| Hanifen Imhoff Mezzanine | 0.15 | 0.12 |
| James K. Hoofard, Jr. | 0.05 | 0.04 |
| G. Dean Booth, Jr. | 0.05 | 0.04 |
| Officer Name | Title | Age |
| Randy A. Sellers | Assistant Vice President | 35 |
| Lisa D. Hargiss | Assistant Vice President | 36 |
| Paul E. Kana | Chairman and Chief Executive Officer | 64 |
| Kevin L. Figge | Chief Financial Officer | 39 |
| G. Dean Booth, Jr. | Director and Secretary | 58 |
| James K. Hoofard, Jr. | Director, President and Chief Operating Officer | 38 |
| Michael P. Brown | Vice President | 47 |
| John C. Thomas | Vice President | 51 |
| Janice H. LaRue | Vice President | 38 |
| Additional Underwriter Compensation |
| Additional compensation of $300,000. |
| Warrant to purchase 125,000 shares/units at a nominal price. |