| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Hometown Auto Retailers, Inc. |
| 831 Straits Turnpike, Watertown, CT 06795 * (860) 945-4900 |
| The company is engaged in the business of selling new and used cars and light trucks, providing maintenance and repair services, selling replacement parts and providing related financing, insurance and service contracts through 8 franchised dealerships. |
| Manager | Tier | Phone |
| Paulson Investment Company, Inc. | Lead Manager | (503) 243-6028 |
| NASNTL: | HCAR | Retail: | SIC 5511 | |
| Type of Shares: | Common Shares | Filing Date: | 5/14/98 | |
| U.S. Shares: | 1,800,000 | Offer Date: | 7/28/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $10.00 | |
| Primary Shares: | 1,800,000 | Offer Price: | $9.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.58 | |
| Offering Amount: | $17,100,000 | Selling: | $0.36 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Post-IPO Shares: | 6,000,000 |
| Issuer's Law Firm: | Morse, Zelnick, Rose & Lander, LLP |
| Bank's Law Firm: | Greenberg Traurig Hoffman Lipoff Rosen & Quentel |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
| Auditor: | Arthur Andersen |
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: | $178.43 | Assets: | $53.75 | ||
| Net Income: | $2.76 | Curr Assets: | |||
| EPS: | Liabilities: | $36.43 | |||
| Prior EPS: | Curr Liab: | ||||
| Cash Flow/Oper: | Equity: | $17.32 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | Working Cap: | $4.02 | |||
| Competition |
| The automotive retailing industry is extremely competitive and consumers generally have a number of choices in deciding where to purchase or service a new or used vehicle. The Company competes for new vehicle sales with other franchised dealers in each of its marketing areas. Hometown does not have any cost advantage in purchasing new vehicles from the Manufacturers and typically relies on sales expertise, reputation and customer goodwill, the quality of its service and location of its dealerships to sell new vehicles. In recent years, automobile dealers have also faced increased competition in the sale or lease of new vehicles from independent leasing companies, on-line purchasing services and warehouse clubs. In addition, Ford Motor has announced that it is exploring the possibility of going into business with some of its dealers to create automotive superstores in selected markets. The Company believes that the principal competitive factors in new vehicle sales are the marketing campaigns conducted by Manufacturers, the ability of dealerships to offer a wide selection of the most popular vehicles, the location of dealerships and the quality of customer service. Other competitive factors include customer preference for particular brands of automobiles, pricing (including Manufacturer rebates and other special offers) and warranties. The Company believes that its dealerships are competitive in all of these areas. |
| Business Plan |
| The Company believes that the following factors, coupled with its established organizational structure, will help it achieve its operating strategy: (I) Strong Regional Focus, (ii) Established Customer Base, (iii) Experienced Management, (iv) Presence In Higher Profit Margin Businesses, (v) Focus on Higher Margin Operations, (vi) Ability To Source High Quality Used Vehicles, (vii) Brand Diversity, (viii) Centralized Financing and Administrative Functions and (ix) Quality Personnel. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to finance the acquisition of two automobile dealerships, repay certain indebtedness, working capital and for general corporate purposes including additional acquisitions. |
| Additional Underwriter Compensation |
| Warrant to purchase 200,000 shares/units at a nominal price. |