| IPO Company Profile |
| SEC Filings | Peer IPO Companies |
| Gary Player Golf, Inc. |
| 2811 Airpark Drive, Santa Maria, CA 93455 * (805) 346-1600 |
| The company is engaged primarily in the direct marketing of Gary Player brand golf clubs through telemarketing, direct response television, the Internet and direct mail. |
| Manager | Tier | Phone |
| Whale Securities Company | Lead Manager | (212) 484-2057 |
| NASSCM: | PLYR | Manufacturing: | SIC 3949 | |
| Type of Shares: | Common Shares | Filing Date: | 5/27/98 | |
| U.S. Shares Filed: | 1,600,000 | Filing Price: | $7.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $11,200,000 | |
| Primary Shares: | 1,600,000 | Expenses: | $992,000 | |
| Secondary Shares: | 0 | Post-IPO Shares: | 4,128,583 | |
| Employees: | 175 |
| Issuer's Law Firm: | Troop Meisinger Steuber & Pasich, LLP |
| Bank's Law Firm: | Tenzer, Greenblatt, Fallon & Kaplan |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
| Auditor: | Grant Thornton |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 3/31/98 | 3/31/98 | ||||
| Revenue: | $4.77 | Assets: | $1.63 | ||
| Net Income: | -$5.62 | Curr Assets: | $0.69 | ||
| EPS: | -$3.89 | Liabilities: | $7.09 | ||
| Prior EPS: | -$4.22 | Curr Liab: | $7.09 | ||
| Cash Flow/Oper: | -$2.71 | Equity: | -$5.46 | ||
| Cash Flow/Fin: | $2.69 | Cash: | $0.13 | ||
| Cash Flow/Inv: | -$0.16 | Working Cap: | -$6.40 | ||
| Competition |
| The markets for the Company's golf clubs and accessories are highly competitive and contain limited barriers to entry. The Company competes primarily on the basis of providing higher quality products at lower price points. The Company competes with golf equipment manufacturers and marketers as well as manufacturers and marketers of other sporting equipment that offer consumers products with similar entertainment or recreational value, such as ski and tennis equipment. Many of these competitors are well established companies with broad consumer recognition and greater financial, marketing, distribution, personnel and other resources than the Company. The golf equipment industry is currently dominated by four companies, Callaway Golf Company, Titleist/Cobra Golf, Karsten Manufacturing (Ping) and Taylor Made, which in the aggregate, accounted for approximately 50% of the golf clubs sold in the United States in 1997. In addition, the Company is aware of a number of companies which use infomercials to sell golf clubs (principally specialty clubs). Competition in the market for golf apparel is also extremely competitive. The Company intends to compete in this market by attempting to establish the Gary Player brand and offering, principally through sublicensees, a variety of products at various price and quality levels. In the golf apparel market, the Company will compete with a large number of manufacturers and retailers of golf and other sports apparel and casual and outerwear. There can be no assurance that the Company will be able to compete successfully. |
| Business Plan |
| The Company's objective is to increase sales of its Gary Player brand golf clubs and golf-related accessories and apparel by capitalizing on the increasing popularity of golf and Gary Player's reputation and achievements as a professional golfer. The Company's strategy to increase sales includes: (I) Increase Telemarketing Activities, (ii) Increase Direct Response Television Marketing, (iii) Sublicensing, (iv) Create and Distribute Mail Order Product Catalogs, (v) Increase Internet Advertising, (vi) Establish International Marketing Operations and (vii) Increase Advertising and Trade Show Participation. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay outstanding indebtedness, for marketing and advertising, to purchase and maintain an increased level of inventory, for the Player Acquisition, including the payment of certain indebtedness, and accounts payables assumed by the company, and for working capital and for general corporate purposes. |
| Additional Underwriter Compensation |
| Additional compensation of $408,000. |
| Warrant to purchase 1,700,000 shares/units at $170.00 per share/unit. |