| Castle Group, Inc., The | |||
| Proposed Ticker: | CAGU | 745 Fort Street, Suite 1000 | |
| Exchange: | NASDAQ-National Market | Honolulu, HI 96813 | |
| Industry: | Service (SIC Code 7011) | (808) 524-0900 | |
| # of Employees: | 650 | ||
| Type of Shares: | Common Shares | Filing Date: | 11/4/97 | |
| U.S. Shares Filed: | 1,600,000 | Filing Price: | $3.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $4,800,000 | |
| Primary Shares: | 1,600,000 | Expenses: | $220,000 | |
| Secondary Shares: | 0 | Shares Out After: | 6,911,130 |
| Manager | Tier | Phone |
| Fortress Financial Group Limited | Lead Manager |
| Issuer's Law Firm: | Davis, Wright, Tremaine |
| Bank's Law Firm: | Casmir & Krage |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | American Registrar and Transfer Co. |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 7/31/97 | 7/31/97 | ||||
| Revenue: | $6.19 | Assets: | $1.62 | ||
| Net Income: | $0.19 | Curr Assets: | $1.40 | ||
| EPS: | $0.04 | Liabilities: | $1.48 | ||
| Prior EPS: | -$0.11 | Curr Liabilities: | $1.31 | ||
| Cash Flow/Oper: | -$0.33 | Equity: | $0.14 | ||
| Cash Flow/Fin: | $0.36 | Cash: | $0.22 | ||
| Cash Flow/Inv: | $0.02 | Working Cap: | $0.09 | ||
| Business Description |
| The company is engaged in the business of hotel and resort management, sales and marketing. The company operates its business under the trade names "Hawaiian Pacific Resorts" and "Castle Resorts and Hotels". At September 22, 1997 the Company had 28 management, sales or marketing contracts covering 3,055 rooms. The majority of the properties currently under management are located on all of the major islands within the State of Hawaii. The Company has one management contract for a 68 room condominium resort located in Saipan. The Company manages a wide variety of hotels and resorts from small budget inns to luxury condominium resorts. Average room rates for the properties average from $40 to over $450. With such a wide variety of products, the Company is able to appeal to all levels of traveler. In times of changing economic conditions, this diversity provides a wide base of potential travel clientele as well as property owner. |
| Competition |
| The management and marketing of hotels and resorts is very competitive. The Company competes with national, regional and local management companies, some of which have a larger network of locations, greater financial resources, and better name recognition than The Company. The Company primarily operates within the State of Hawaii and there are a number of competitors within the state with substantial operating histories and financial reserves. The Company's properties under management are also subject to competition within the lodging industry such as room rates, geographic location, name recognition, supply and demand, service levels, value added services and quality of accommodations. Each of the properties under contract are located in areas that includes competing facilities. Increases in the number of competitive lodging facilities in these areas could have an adverse effect on the occupancy and average room rates of the property. To the best of management's knowledge, there are no new planned development of competitive properties in any of the areas in which the Company is present. |
| Business Plan |
| The Company's principal business strategy is the expansion of its revenue base. This entails two primary goals: (I) increasing the profitability of the properties currently under management, and (ii) expansion through the acquisition of additional management contracts. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of debt, acquisition of management contracts and/or companies, and general corporate purposes. |
| Officer Name | Title | Age |
| Rick Wall | Chief Executive Officer, Director and Chairman of the Board | 54 |
| Michael S. Nitta | Chief Financial Officer and Vice President Finance | 38 |
| Kelvin M. Bloom | Chief Operating Officer, Director and Senior Vice President | 38 |
| Stanley Mukai | Interim Director | 65 |
| Noboru Sekiguchi | Interim Director | 70 |
| Edward Calvo, Sr. | Interim Director | 60 |
| Motoko Takahashi | Secretary and Director | 53 |
| Steve Townsend | Senior Vice President Operations | 43 |
| Shari W. Chang | Senior Vice President Sales & Marketing | 47 |
| John Tedcastle | Vice Chairman of the Board and Director | 64 |