| Cunningham Graphics International, Inc. | |||
| Ticker: | CGII | 629 Grove Street | |
| Exchange: | NASDAQ-National Market | Jersey City, NJ 07310 | |
| Industry: | Manufacturing (SIC Code 2752) | (201) 217-1990 | |
| # of Employees: | 370 | ||
| Type of Shares: | Common Shares | Filing Date: | 2/19/98 | |
| U.S. Shares: | 2,200,000 | Offer Date: | 4/21/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 2,200,000 | Offer Price: | $13.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.91 | |
| Offering Amount: | $26,400,000 | Selling: | $0.55 | |
| Expenses: | $800,000 | Reallowance: | $0.10 | |
| Shares Out After: | 4,865,000 |
| Manager | Tier | Phone |
| Schroder Wertheim & Company, Incorporated | Lead Manager | (212) 492-6900 |
| Issuer's Law Firm: | Gibbons, Del Deo, Dolan, Griffinger & Vecchione |
| Bank's Law Firm: | Stroock & Stroock & Lavan |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/97 | 12/31/97 | ||||
| Revenue: | $35.74 | Assets: | $10.94 | ||
| Net Income: | $2.02 | Curr Assets: | $6.94 | ||
| EPS: | $0.41 | Liabilities: | $7.79 | ||
| Prior EPS: | Curr Liabilities: | $6.21 | |||
| Cash Flow/Oper: | $1.45 | Equity: | $3.15 | ||
| Cash Flow/Fin: | -$1.13 | Cash: | $0.07 | ||
| Cash Flow/Inv: | -$0.80 | Working Cap: | $0.73 | ||
| Business Description |
| The company provides a wide range of graphic communication services to financial institutions and corporations, focusing on producing and distributing time-sensitive analytical research and marketing materials and on providing on-demand printing services. The Company, which commenced operations in 1989, currently operates on a global basis through its facilities in the United States and through alliances with Roda Limited, its strategic partner in the United Kingdom, and with its strategic partner in Hong Kong. The Company believes that it is presently among the largest volume producers of financial research reports in the world, having produced over 2 billion pages during 1997. The Company estimates that in 1997 the commercial printing and document production market accounted for more than $80 billion in revenue in the United States and over $10 billion in revenue in the United Kingdom, based upon information from certain trade associations and other industry sources. |
| Competition |
| The graphic communications services industry is highly competitive. In each of the lines of business in which the Company provides services, it competes with a variety of companies, many of which have greater financial and other resources than the Company, or are subsidiaries or divisions of larger organizations. In particular, the industry is characterized by a small number of large, dominant organizations. No assurances can be given that the Company will be able to compete effectively against the larger companies in this industry. During recent periods of economic downturn, excess production capacity in the Company's business sectors has resulted in more competitive pricing, reducing the earnings of the Company. In addition, a significant source of competition is the in-house capability of the Company's target customer base. There can be no assurance that these businesses will outsource more of their printing and document management needs or that such businesses will continue to seek such outsourcing services. |
| Business Plan |
| The Company believes that the fragmented nature of the graphic communications industry and the limited capital resources available to many small, private operators provide the Company with significant opportunities to expand its base of operations. The Company intends to continue its growth strategy by (i) pursuing acquisitions and establishing strategic alliances to expand and strengthen the Company's business reach in target markets worldwide, (ii) pursuing outsourcing opportunities through the assimilation of in-house printing operations of third-party businesses, (iii) expanding the scope and volume of services offered, (iv) actively cross-selling existing or newly-added products or services to its customers worldwide, and (v) improving the operating efficiency of its existing operations. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund the cash portion of the purchase price for Roda, to repay certain indebtedness of Roda to its stockholders, to repay bank indebtedness and for working capital and for general corporate purposes which may include expenditures, marketing activities and future strategic acquisitions. |