IPO Company Profile
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Balance Bar Company
1015 Mark Avenue, Carpinteria, CA 93013 * (805) 566-0234

The company develops and markets branded food and beverage products in convenient, good-tasting, balanced nutritional formulations that appeal to a broad customer base.

Primary Underwriting Group
ManagerTierPhone
Hambrecht & Quist IncorporatedLead Manager (415) 439-3626
Adams, Harkness & HillCo-manager (617) 371-3705

Offering Information
NASNTL:BBAR Wholesale: SIC 5149
Type of Shares:Common Shares Filing Date:4/8/98
U.S. Shares:2,400,000 Offer Date:6/1/98
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:1,400,000 Offer Price:$10.50
Secondary Shares:1,000,000 Gross Spread:$0.74
Offering Amount: $26,400,000 Selling:$0.40
Expenses: - Reallowance:$0.10
Post-IPO Shares:10,700,000
Employees:59

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: O'Melveny & Meyers
Bank's Law Firm: Brobeck, Phleger & Harrison
Auditor: Arthur Andersen

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/97 12/31/97
Revenue:$39.63Assets:$10.80
Net Income:$1.66Curr Assets:$9.44
EPS:$0.90Liabilities:$6.69
Prior EPS:$1.04Curr Liab:$6.46
Cash Flow/Oper:-$1.17Equity:$4.10
Cash Flow/Fin:$1.25Cash:$0.09
Cash Flow/Inv:-$1.11Working Cap:$2.97

Competition
Competition in the diverse consumer markets in which the Company competes is based on a wide variety of factors, including taste, perceived nutritional benefits, convenience, quality, brand recognition, and price. Many of the Company's competitors are large, multinational companies with well established, branded products, and significantly greater financial, distribution, and marketing resources than the Company, including large advertising and promotion budgets. These competitors may also have a significantly greater ability to influence or control product placement in retail stores. In each retail outlet, many products compete for limited shelf space. The Company's continued success will depend in part upon its ability to provide competitive promotional discounts, slotting allowances, and point-of-purchase displays, as well as the quality of its packaging.

Business Plan
The Company's goal is to become a recognized leader in providing nutritious, good tasting and convenient snack and meal replacement products for a wide variety of consumer needs. Its growth strategy is to: (I) Position Balance Products as Good Tasting, Nutritious Snacks and Meal Replacements, (ii) Expand Consumer Base and Brand Awareness Through Increased Advertising and Promotional Activities, (iii) Expand Distribution, (iv) Focus on In-store Promotion and Marketing, (v) Continue to Promote the Nutritional Qualities of Balance Products, (vi) Introduce New Products and Product Line Extensions and (vii) Acquire Complimentary Companies or Product Lines.

Use of Proceeds
The proceeds from the proposed offering will be used to retire short and long term debt and for working capital and for general corporate purposes which could include the acquisition of companies or product lines.

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