| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies | Company's Home Page |
| PC Connection, Inc. |
| 528 Route 13, Milford, NH 03055 * (603) 423-2000 |
| The company is a leading direct marketer of brand-name personal computers and related peripherals, software, accessories and networking products. The Company's target customers are small and medium-sized organizations comprised of 20 to 1,000 employees. |
| Manager | Tier | Phone |
| Donaldson, Lufkin & Jenrette Securities Corp. | Lead Manager | (212) 371-0641 |
| Nationsbanc Montgomery Securities, Inc. | Co-manager | (415) 627-2100 |
| William Blair & Company | Co-manager | (312) 364-8990 |
| NASNTL: | PCCC | Retail: | SIC 5961 | |
| Type of Shares: | Common Shares | Filing Date: | 11/26/97 | |
| U.S. Shares: | 3,125,000 | Offer Date: | 3/2/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $15.00 - $17.00 | |
| Primary Shares: | 3,125,000 | Offer Price: | $17.50 | |
| Secondary Shares: | 0 | Gross Spread: | $1.23 | |
| Offering Amount: | $50,000,000 | Selling: | $0.73 | |
| Expenses: | $750,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | - | |||
| Employees: | 824 |
| Issuer's Law Firm: | Hale and Dorr |
| Bank's Law Firm: | Latham & Watkins |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
| Auditor: | Deloitte & Touche |
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: | $333.33 | $383.46 | $225.07 | Assets: | $95.55 |
| Net Income: | $3.75 | $6.97 | $2.10 | Curr Assets: | $87.25 |
| EPS: | Liabilities: | $74.27 | |||
| Prior EPS: | $8.39 | -$3.37 | Curr Liab: | $70.77 | |
| Cash Flow/Oper: | -$4.52 | -$4.43 | $5.25 | Equity: | $21.28 |
| Cash Flow/Fin: | $7.37 | -$3.40 | -$2.04 | Cash: | $0.72 |
| Cash Flow/Inv: | -$3.37 | Working Cap: | $16.48 | ||
| Competition |
| The direct marketing and sale of personal computers and related products is highly competitive. PC Connection competes with other direct marketers of personal computers and related products, including CDW Computer Centers, Inc., Insight Enterprises, Inc. and Micro Warehouse, Inc. The Company also competes with certain product manufacturers that sell directly to customers, such as Dell Computer Corporation and Gateway 2000, Inc., and more recently Compaq, IBM and Apple; distributors that sell directly to certain customers, such as MicroAge, Inc. and Vanstar Corporation; various cost-plus aggregators, franchisers, and national computer retailers, such as CompUSA, Inc. and Computer City; and companies with an Internet Web site and commercial on-line networks. Additional competition may arise if other new methods of distribution, such as broadband electronic software distribution, emerge in the future. The Company competes not only for customers, but also for favorable product allocations and cooperative advertising support from product manufacturers. Several of the Company's competitors are larger and have substantially greater financial resources than the Company. The Company believes that price, product selection and availability, and service and support are the most important competitive factors in its industry. |
| Business Plan |
| The Company's growth strategies are to: (i) increase penetration of its existing customer base; (ii) broaden its product offerings to include higher margin products such as network servers and communications equipment; and (iii) expand its customer base. The Company plans to target a greater number of its existing customers with outbound telemarketing, more aggressively pursue first-to-market product offerings, provide specialized offerings to targeted segments of its customer base and increase its investments in electronic commerce and Internet related marketing opportunities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of debt, distribution of an S Corporation distribution, working capital and for general corporate purposes. |