| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies | Company's Home Page |
| Towne Services, Inc. |
| 3295 River Exchange Drive, Suite 350, Norcross, GA 30092 * (770) 734-2680 |
| The company designs, develops and markets products and services that convert the in-house credit transactions of small businesses into automated "virtual credit card" accounts which are processed electronically. |
| Manager | Tier | Phone |
| Wheat First Union | Lead Manager | |
| J.C. Bradford & Co. | Co-manager | (615) 748-9347 |
| Stephens Inc. | Co-manager | (501) 377-2130 |
| NASNTL: | TWNE | High-Tech: | SIC 7374 | |
| Type of Shares: | Common Shares | Filing Date: | 5/22/98 | |
| U.S. Shares: | 4,000,000 | Offer Date: | 7/30/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $8.00 - $10.00 | |
| Primary Shares: | 4,000,000 | Offer Price: | $8.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.56 | |
| Offering Amount: | $36,000,000 | Selling: | $0.33 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Post-IPO Shares: | 18,691,722 | |||
| Employees: | 76 |
| Issuer's Law Firm: | Nelson Mullins Riley & Scarbourough |
| Bank's Law Firm: | Alston & Bird |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/97 | 3/31/98 | 3/31/97 | 3/31/98 | ||
| Revenue: | $0.72 | $0.55 | $0.10 | Assets: | $5.48 |
| Net Income: | -$2.50 | -$6.45 | -$0.30 | Curr Assets: | $4.48 |
| EPS: | -$0.26 | -$0.53 | -$0.04 | Liabilities: | $3.01 |
| Prior EPS: | -$0.10 | Curr Liab: | $1.37 | ||
| Cash Flow/Oper: | -$2.13 | -$1.52 | -$0.70 | Equity: | $2.46 |
| Cash Flow/Fin: | $5.05 | $2.65 | $1.02 | Cash: | $3.45 |
| Cash Flow/Inv: | -$0.53 | -$0.22 | -$0.07 | Working Cap: | $3.11 |
| Competition |
| The electronic transaction processing industry is intensely competitive. Increased competition is likely from both existing competitors and new entrants into its existing or future markets. The Company believes there are low barriers to entry in its markets. Towne Services may not be able to compete successfully as other companies develop new products and services, change prices, improve customer service and hire additional personnel. Competitors may offer new products and services resulting in greater competition and lower market share for the Company. Many of the Company's competitors have longer operating histories, greater name recognition, larger customer bases and substantially greater resources than the Company. Competitors may be able to adapt more quickly to new technologies and changes in customer requirements and may also be able to devote greater resources to marketing. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to enhance sales and marketing efforts, expand its products and services, pay off certain debts and for general corporate purposes including acquisitions. |