| Industrial Rubber Products, Inc. | |||
| Ticker: | INRB | 3804 East 13th Avenue | |
| Exchange: | NASDAQ-Small Cap Market | Hibbing, MN 55746 | |
| Industry: | Manufacturing (SIC Code 3532) | (218) 263-8831 | |
| # of Employees: | 95 | ||
| Type of Shares: | Common Shares | Filing Date: | 2/20/98 | |
| U.S. Shares: | 1,260,000 | Offer Date: | 4/24/98 | |
| Non-U.S. Shares: | 0 | Filing Price: | $5.00 | |
| Primary Shares: | 1,260,000 | Offer Price: | $5.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.37 | |
| Offering Amount: | $6,300,000 | Selling: | $0.22 | |
| Expenses: | $340,000 | Reallowance: | $0.05 | |
| Shares Out After: | 4,334,000 |
| Manager | Tier | Phone |
| R.J. Steichen & Co. | Lead Manager | (612) 341-6276 |
| Issuer's Law Firm: | Johnson, Killen, Thibodeau & Seiler, P.A. |
| Bank's Law Firm: | Fredrikson & Byron |
| Auditor: | McGladrey & Pullen |
| Registrar/Transfer Agent: | Norwest Bank of Minnesota |
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: | $14.42 | Assets: | $4.95 | ||
| Net Income: | $2.70 | Curr Assets: | $3.31 | ||
| EPS: | $0.57 | Liabilities: | $2.71 | ||
| Prior EPS: | $0.06 | Curr Liabilities: | $2.53 | ||
| Cash Flow/Oper: | $1.85 | Equity: | $2.24 | ||
| Cash Flow/Fin: | -$1.17 | Cash: | $0.13 | ||
| Cash Flow/Inv: | -$0.59 | Working Cap: | $0.77 | ||
| Business Description |
| The company is in the business of designing, producing and supplying protective materials, abrasion resistant products and equipment, erosion/corrosion protective linings and proprietary rubber products. The Company's first customers were the low grade iron ore (taconite) processing plants in Minnesota. It has expanded its operations to include sales to mineral processing plants throughout the U.S. and Canada, as well as the power, paper, pulp and other heavy industries in these geographical regions. The Company has three product lines. Its pipe lining and pipe products line consists of rubber lined pipe and other pipe parts fabricated primarily for the mineral processing industry. Its proprietary products are engineered replacement parts primarily for mineral processing facilities. Its standard rubber products are sold, along with related services, to the Company's customers in the various industry segments served by the Company. |
| Competition |
| The industry that Industrial Rubber is in is competitive. The Company faces competition from national and regional manufacturers and distributors. The national manufacturers and distributors provide proprietary design, large distribution networks, large scale manufacturing to reduce costs and sophisticated quality control programs. They may also have access to greater financial resources than the Company. While the regional manufacturers and distributors may lack these advantages, they do provide quick delivery and personalized service to customers allowing them to effectively compete. |
| Business Plan |
| The Company's goal is to be a leading designer, producer and supplier of protective materials for equipment in mining and mineral processing, coal and power generation, paper and pulp and related industries on a global basis. It seeks to achieve this goal by several methods. The key elements of the company's strategy include: (I) Increased Penetration of Existing Markets and (ii) Geographical Expansion in North America. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for acquisition of production and processing equipment or facilities, establishment of satellite production and distribution facilities, S corporation distribution, working capital and general corporate purposes. |
| Additional Underwriter Compensation |
| Warrant to purchase 140,000 shares/units at a nominal price. |