| HLM Design, Inc. | |||
| Proposed Ticker: | HLM | 121 West Trade Street, Suite 2950 | |
| Exchange: | American Stock Exchange | Charlotte, NC 28202 | |
| Industry: | Service (SIC Code 8712) | (704) 358-0779 | |
| # of Employees: | 246 | ||
| Type of Shares: | Common Shares | Filing Date: | 11/20/97 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $7,000,000 | |
| Primary Shares: | 0 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| Berthel Fisher & Company Financial Services, Inc. | Lead Manager | |
| Westport Resources Investment Services, Inc. | Co-manager | (800) 935-0222 |
| Issuer's Law Firm: | Parker, Poe, Adams & Bernstine |
| Bank's Law Firm: | Bradley & Riley, P.C. |
| Auditor: | Deloitte & Touche |
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 | ||
| 4/25/97 | 10/31/97 | 10/25/96 | 10/31/97 | ||
| Revenue: | $26.75 | $13.19 | $7.53 | Assets: | $17.43 |
| Net Income: | $0.12 | $0.38 | -$0.43 | Curr Assets: | $11.68 |
| EPS: | Liabilities: | $17.02 | |||
| Prior EPS: | -$0.05 | $0.55 | Curr Liabilities: | $12.29 | |
| Cash Flow/Oper: | $0.46 | $0.15 | Equity: | $0.41 | |
| Cash Flow/Fin: | -$0.41 | $0.00 | Cash: | $0.01 | |
| Cash Flow/Inv: | -$0.41 | Working Cap: | -$0.61 | ||
| Business Description |
| The company is a management company that enters into management and services relationships with full service AEP firms. HLM Design was formed in March 1997 to pursue a strategy of consolidating non-professional operations and providing management expertise to individual AEP Firms. HLM Design believes it is the first company to pursue such a consolidation strategy to take advantage of operating efficiencies and provide geographic and service diversification for clients. Prior to March 1997, the current management team of HLM Design operated Hansen Lind Meyer Inc., an Iowa corporation ("HLMI"), HLM of North Carolina, P.C. ("HLMNC") and HLM of Oregon, Architecture and Planning, P.C. ("HLMO"). HLMI has been in operation for over thirty years. HLMNC and HLMO were organized in 1996 but have had no operations to date. These three AEP Firms have each entered into a Management and Services Agreement with HLM Design. The Managed Firms operate offices in Atlanta, Georgia, Iowa City, Iowa, Chicago, Illinois, Orlando, Florida, Bethesda, Maryland, Denver, Colorado, Sacramento, California, Philadelphia, Pennsylvania, Portland, Oregon and Charlotte, North Carolina. |
| Competition |
| The business of providing architectural, engineering and planning related services is highly competitive. The Company's competition includes many other firms, including large national firms as well as regional or small local firms. Several companies that have established operating histories and significantly greater resources than the Company provide some of the services provided by the Managed Firms. In addition, there are other companies with substantial resources that may in the future decide to engage in activities similar to those in which the Company engages. |
| Business Plan |
| The creation of a management relationship between HLM Design and an AEP Firm involves, among other things, the signing of a Management and Services Agreement between HLM Design and the AEP Firm. Under the terms of the Management and Services Agreement, HLM Design is the sole and exclusive manager and administrator of all of the Managed Firm's day-to-day business functions. These functions include financial planning, facilities, equipment and supplies, and management and administrative services. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay certain indebtedness of HLM Design, for working capital and for general corporate purposes, including the funding of HLM Design's rights to cash flows under future management and services agreements. |
| Name of Shareholder | % Owned Before | % Owned After |
| Vernon B. Brannon | 40.48% | |
| Joseph M. Harris | 40.48% | |
| William Blalock | 14.81% |
| Officer Name | Title | Age |
| Joseph M. Harris | President, Chairman of the Board and Director | 53 |
| Thomas G. Pikerton, Sr. | Senior Vice President | 53 |
| Vernon B. Brannon | Senior Vice President, Chief Financial Officer, Treasurer, Assistant Secretary and Director | 54 |
| Viktor A. Lituczy | Vice President | 44 |
| Robert P. Ludden | Vice President | 42 |
| Frank E. Talbert | Vice President | 41 |
| Bradley A. Earl | Vice President | 50 |