|
Financial Performance & Scoring -- © 2006 Gaskins IPO Desktop/IPOdesktop |
|
|
|
|
Pre-IPO analysis, grading & scoring -- updated Sept 22 |
|
|
|
|
|
|
. Business Model Rating Criteria |
|
|
|
|
|
|
|
A = high growth market, potential leader; B = more competitive market; C='public venture capital' |
|
|
|
. Calculations |
|
|
|
|
|
|
|
. IPO Price to annualized Sales Ratio -- (Price / Sales) |
|
|
|
|
|
|
Numerator |
|
Denominator |
|
|
|
|
|
IPO market capitalization… |
|
Annualized Sales (last six month's revenues times 2) |
|
|
|
(post-IPO # of shares times mid-point of IPO price range) |
|
|
|
|
|
|
. IPO Price to annualized Earnings (loss) -- (Price / Earnings) |
|
|
|
|
|
Numerator |
|
Denominator |
|
|
|
|
|
IPO market cap |
|
Annualized Earnings (loss) from the last quarter |
|
|
|
========================================================================= |
|
|
|
|
SEARCH BY COMPANY |
|
Use 'Edit, find on this page' to search for companies |
|
|
|
for analysis |
|
scheduled below |
|
|
|
|
========================================================================= |
|
|
|
|
Summary ratios for the week of Sept 25 |
|
|
|
|
|
|
|
(P/E ratios based on annualizing the June six months, unless otherwise noted) |
|
|
|
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
Adcare Health, tba, units |
$21 |
1.0 |
-8 |
2.0 |
3.2 |
52% |
|
assisted living facilities: C, 6 |
|
|
|
|
Post-IPO shrs:4.2mm |
|
|
|
|
|
|
|
|
Bare Escentuals (BARE) |
$1,392 |
3.7 |
28 |
-3.5 |
-3.5 |
11% |
|
Mineral-based cosmetics, B-, 8 |
|
|
|
|
Post-IPO shrs:87mm |
|
|
|
|
|
|
|
|
|
CBRE Realty (CBF) |
$467 |
7.6 |
52 |
1.1 |
1.1 |
34% |
|
REIT, C+, 6 |
|
|
|
|
Post-IPO shrs:29mm |
|
|
|
|
|
|
|
|
|
EV Energy Prtnrs(EVEP) |
$152 |
1.1 |
5 |
1.7 |
1.7 |
102% |
|
oil & gas partnership, C+, 6 |
|
|
|
|
Post-IPO shrs:20mm |
|
|
|
|
|
|
|
|
|
ICF International (ICFI) |
$194 |
1.4 |
-323 |
1.9 |
10.6 |
36% |
|
consulting for the US gov, C+, 7 |
|
|
|
|
Post-IPO shrs:13mm |
|
|
|
|
|
|
|
|
|
ImaRX Thera (IMRX) |
$196 |
1.5 |
15 |
4.1 |
4.3 |
28% |
|
therapies for blood clots, C+, 7 |
|
|
|
|
Post-IPO shrs:42mm |
|
|
|
|
|
|
|
|
|
Mindray Medical (MR) |
$1,141 |
6.7 |
28 |
5.7 |
7.8 |
19% |
|
Chinese medical devices, B-, 9 |
|
|
|
|
Post-IPO shrs:104mm |
|
|
|
|
|
|
|
|
Omni Financial (OFSI) |
$116 |
4.8 |
21 |
1.8 |
1.9 |
29% |
|
regional bank, 11 states in so east U.S., C+, 7 |
|
|
|
Post-IPO shrs:10.5mm |
|
|
|
|
|
|
|
|
Shutterfly (SFLY) |
$330 |
0.4 |
-45 |
2.5 |
2.5 |
25% |
|
online photo service, C, 6 |
|
|
|
|
Post-IPO shrs:24mm |
|
|
========================================================================= |
|
|
|
|
SEARCH BY COMPANY |
|
Use 'Edit, find on this page' to search for companies |
|
|
|
for analysis |
|
scheduled below |
|
|
|
|
========================================================================= |
|
|
|
|
Adcare Health Systems |
tba, C, 6 |
|
|
|
|
|
|
assisted living facilities |
|
|
|
|
Post-IPO shrs:4.2mm |
|
Springfield, OH |
|
2004 |
2005 |
6mos June |
IPO Mkt |
|
|
Rev ($mm) |
|
$18.3 |
$21.9 |
$11.0 |
Cap (mm) |
|
|
Income ($mm) |
|
$0.1 |
-$0.9 |
-$1.3 |
$21 |
|
|
Net income % |
|
0.4% |
-4.0% |
-11.8% |
@$10 units |
|
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
Adcare Health, tba, units |
$21 |
1.0 |
-8 |
2.0 |
3.2 |
52% |
|
SCORECARD |
|
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
1-5, 5 is high |
|
|
Growth |
mination |
tary |
rating |
|
20 is perfect |
|
2 |
2 |
1 |
1 |
6 |
|
Units |
|
|
|
|
|
|
|
1,100,000 units, with each unit consisting of two shares of common stock and two five-year |
|
|
|
|
`warrants each to purchase one share of common stock. |
|
|
|
|
|
|
Business |
|
|
|
|
|
|
|
. Developer, owner and manager of retirement communities, assisted living facilities, nursing |
|
|
|
|
homes, and home health care services in the state of Ohio. |
|
|
|
|
|
|
. Currently manages fifteen facilities, comprised of six skilled nursing centers, seven assisted |
|
|
|
|
living residences and two independent living/senior housing facilities, totaling over 800 beds. Also |
|
|
|
recently acquired an established home health care business. |
|
|
|
|
|
Accounting problem |
|
|
|
|
|
|
|
In July 2006, Adcare determined that it had accounted incorrectly for two transactions. As a result |
|
|
|
Adcare restated consolidated financial statements for the years ended December 31, 2005 and |
|
|
|
|
December 31, 2004, to correct the method of accounting for those two transactions. |
|
|
|
|
Use of $8.8mm in IPO proceeds |
|
|
|
|
|
|
|
. Retirement of Debt, $2.2mm |
|
|
|
|
|
|
|
. Expansion of Home Health Care, $.5mm |
|
|
|
|
|
|
|
. Acquisitions of New Businesses, $4mm |
|
|
|
|
|
|
|
. Working Capital, $2.1mm |
|
|
|
|
|
|
|
========================================================= |
|
|
|
|
|
Bare Escentuals (BARE) |
BARE, B-, 8 |
|
|
|
|
|
|
Mineral-based cosmetics |
|
|
|
|
Post-IPO shrs:87mm |
|
|
San Francisco, CA |
2003 |
2004 |
2005 |
6mos June |
IPO Mkt |
|
|
Rev ($mm) |
$95 |
$142 |
$259 |
$186 |
Cap (mm) |
|
|
Gross Margin % |
67% |
72% |
71% |
72% |
$1,392 |
|
|
Income ($mm) |
$12 |
$4 |
$24 |
$25 |
@$16 |
|
|
Net income % |
13% |
3% |
9% |
13% |
|
|
|
Interest expense |
$2 |
$6 |
$22 |
$22 |
|
|
|
Interest exp % of net income |
13% |
158% |
90% |
88% |
|
|
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
Bare Escentuals (BARE) |
$1,392 |
3.7 |
27.8 |
-3.5 |
-3.5 |
11% |
|
SCORECARD |
|
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
1-5, 5 is high |
|
|
Growth |
mination |
tary |
rating |
|
20 is perfect |
|
2 |
3 |
2 |
1 |
8 |
|
Compare & Contrast -- trailing 12 month P/E's |
|
|
|
|
|
|
Alberto-Culver Co. (ACV) |
|
|
23.6 |
|
|
|
|
Estee Lauder Companies Inc. (EL) |
|
|
35.1 |
|
|
|
|
Avon Products Inc. (AVP) |
|
|
24.9 |
|
|
|
|
Versus Bare Escentuals (BARE) * |
|
|
27.8 |
|
|
|
|
*assuming price range midpoint, annualizing June 30 six months results |
|
|
|
|
|
Summary |
|
|
|
|
|
|
|
. Profitable, high gross margin, significant top line revenue growth, brand building momentum |
|
|
|
|
. Business is diversified between wholesale, infomercials & retail |
|
|
|
|
|
. Strong income statement, significant interest expense |
|
|
|
|
|
|
. Highly leveraged: interest expense as a % of net income was 88% for the June 30 six months |
|
|
|
|
. June 2004 leveraged buyout, stockholders since then have paid themselves $645mm in dividends, |
|
|
|
and the entire use of proceeds is to repay debt |
|
|
|
|
|
|
. Weak balance sheet with a negative book value |
|
|
|
|
|
|
Business |
|
|
|
|
|
|
|
. One of the fastest growing prestige beauty companies in the U.S. and a leader by sales and |
|
|
|
|
consumer awareness in mineral-based cosmetics, including skin care, and body care products |
|
|
|
|
under the BARE i.d. bareMinerals, i.d., RareMinerals and namesake Bare Escentuals brands, and |
|
|
|
professional skin care products under the md formulations brand. |
|
|
|
|
|
Segments, based on six months ended July 2, 2006 |
|
|
|
|
|
|
. Wholesale, 53.5% |
|
|
|
|
|
|
|
. Retail, 13% |
|
|
|
|
|
|
|
. Infomercials, 33.5% |
|
|
|
|
|
|
|
Differentiated |
|
|
|
|
|
|
|
. BARE believes its i.d. bareMinerals cosmetics, particularly the core foundation products, offer a |
|
|
|
highly differentiated, healthy and lightweight alternative to conventional liquid- or cream-based |
|
|
|
|
cosmetics while providing light to maximum coverage for all skin types. |
|
|
|
|
|
. As such, BARE believes its foundation products have broad appeal to women of all ages |
|
|
|
|
including women who did not previously wear foundation before using i.d. bareMinerals. |
|
|
|
|
Marketing |
|
|
|
|
|
|
|
. BARE utilizes a distinctive marketing strategy and multi-channel distribution model consisting |
|
|
|
|
of infomercials, home shopping television, specialty beauty retailers, company-owned boutiques |
|
|
|
and spas and salons. |
|
|
|
|
|
|
|
. This model has enabled BARE to increase brand awareness, consumer loyalty and market share |
|
|
|
and achieve favorable operating margins. |
|
|
|
|
|
|
|
. Bare Escentuals was the top-selling cosmetics brand company-wide at leading specialty beauty |
|
|
|
retailers Sephora and Ulta during 2005. |
|
|
|
|
|
|
|
. Over the last five fiscal years, BARE has increased net sales approximately 87.5% on a |
|
|
|
|
compound annual basis, and during the fiscal year ended January 1, 2006, operating income was |
|
|
|
|
29.8% of net sales |
|
|
|
|
|
|
|
Growth Strategy |
|
|
|
|
|
|
|
> Further penetrate each of multiple distribution channels. |
|
|
|
|
|
|
o Wholesale. |
|
|
|
|
|
|
|
o Retail. Intends to expand the base of company-owned boutiques and to grow infomercial sales. |
|
|
|
As of July 2, 2006, operated 30 boutiques and reported average annual net sales of |
|
|
|
|
$1,400 per square foot for the fiscal year ended January 1, 2006 |
|
|
|
|
|
> Cross-sell other products. |
|
|
|
|
|
|
|
> Develop new product concepts |
|
|
|
|
|
|
|
> Expand global presence. BARE currently believes that Japan, the United Kingdom, Germany, |
|
|
|
|
France and South Korea represent the most significant market opportunities for expanding its |
|
|
|
|
global presence. |
|
|
|
|
|
|
|
Competition |
|
|
|
|
|
|
|
. Competes with the major makeup and skin care companies which market many brands including |
|
|
|
Avon, Bobbi Brown, Chanel, Clarins, Clinique, Estée Lauder, L'Oréal, Lancôme, M.A.C., |
|
|
|
|
Neutrogena, Shiseido and Smashbox, as well as many specialty players in the beauty industry. |
|
|
|
|
. Also competes with several smaller mineral-based cosmetics brands. |
|
|
|
|
|
Recapitalizations |
|
|
|
|
|
|
|
$645mm in dividends paid to stockholders |
|
|
|
|
|
|
. In June 2004 affiliates of Berkshire Partners LLC, JH Partners, LLC, a San Francisco-based |
|
|
|
|
private equity firm, and members of management acquired a majority controlling interest in the |
|
|
|
|
company. |
|
|
|
|
|
|
|
. In the transaction, BARE incurred approximately $100.0 million of new indebtedness, raised |
|
|
|
|
approximately $87.5 million of new equity financing and used $169.6 million to repurchase |
|
|
|
|
outstanding shares of capital stock and fully vested options |
|
|
|
|
|
. In February 2005, incurred approximately $224.5 million of new indebtedness, repaid a total of |
|
|
|
|
$92.6 million of existing debt and paid a special dividend to stockholders of $122.4 million. |
|
|
|
|
. In October 2005, incurred approximately $187.5 million of new indebtedness and paid a special |
|
|
|
|
dividend to stockholders of $183.5 million. |
|
|
|
|
|
|
. In June 2006, incurred approximately $331.6 million of new indebtedness and paid a special |
|
|
|
|
dividend to stockholders of $340.4 million. |
|
|
|
|
|
|
Use of $236mm in IPO proceeds |
|
|
|
|
|
|
|
. $233.8 million to repay debt |
|
|
|
|
|
|
|
. After application of the net proceeds of this offering and the concurrent refinancing of a portion of debt, |
|
|
|
BARE expects to have a total of $479.9 million in outstanding indebtedness. |
|
|
|
|
================================================== |
|
|
|
|
|
CBRE Realty Finance |
CBF, C+, 6 |
|
|
|
|
|
|
REIT |
|
|
|
|
Post-IPO shrs:29mm |
|
|
Hartford, CT |
|
|
|
3mos June |
IPO Mkt |
|
|
Rev ($mm) |
|
|
|
$15 |
Cap (mm) |
|
|
Pre-tax Income ($mm) |
|
|
|
$2 |
$467 |
|
|
Net income % |
|
|
|
15% |
@$16 |
|
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
CBRE Realty (CBF) |
$467 |
7.6 |
52 |
1.1 |
1.1 |
34% |
|
SCORECARD |
|
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
1-5, 5 is high |
|
|
Growth |
mination |
tary |
rating |
|
20 is perfect |
|
2 |
1 |
2 |
1 |
6 |
|
Business -- REIT |
|
|
|
|
|
|
|
. Externally managed and advised by CBRE Realty Finance Management, LLC, an indirect |
|
|
|
|
subsidiary of CB Richard Ellis, Inc., or CBRE, and a direct subsidiary of CBRE Melody & |
|
|
|
|
Company, or CBRE/Melody. |
|
|
|
|
|
|
|
. CBRE indirectly owns 54.5% of the economic interest in the Manager and the remainder is |
|
|
|
|
owned in the aggregate by executive officers and certain executives of CBRE/Melody. |
|
|
|
|
Sources |
|
|
|
|
|
|
|
. Sources investments through two primary channels: the unique relationship with the |
|
|
|
|
CBRE/Melody origination system, and the origination capabilities of our management team, |
|
|
|
|
including their relationships with borrowers, sellers of whole loans, various financial institutions |
|
|
|
|
and other financial intermediaries, which we refer to as our internal origination system. |
|
|
|
|
. Of the $1,057.3 million of investments held as of August 31, 2006, 45.1% was sourced through |
|
|
|
|
the affiliated CBRE system. |
|
|
|
|
|
|
|
Formation and Structure |
|
|
|
|
|
|
|
. Organized as a Maryland corporation in May 2005 and completed a private offering of common |
|
|
|
stock in June 2005 in which we raised net proceeds of approximately $282.5 million. Credit Suisse |
|
|
|
Securities (USA) LLC, Deutsche Bank Securities Inc., Banc of America Securities LLC and |
|
|
|
|
Citigroup Global Markets Inc. |
|
|
|
|
|
|
|
Use of $126mm in IPO proceeds from sale of 8.5mm shares |
|
|
|
|
|
(shareholders intend to sell 1.5mm shares) |
|
|
|
|
|
|
|
Repay debt |
|
|
|
|
|
|
|
=============================================================== |
|
|
|
|
EV Energy Partners L.P. |
EVEP, C+, 6 |
|
|
|
|
|
|
oil & gas partnership |
|
|
|
|
Post-IPO shrs:20mm |
|
|
Houston, TX |
2003 |
2004 |
2005 |
6mos June |
IPO Mkt |
|
|
Rev ($mm) |
$13.6 |
$30.0 |
$26.0 |
$15.0 |
Cap (mm) |
|
|
Pre-tax Income ($mm) |
$2.7 |
$8.3 |
$10.4 |
$6.3 |
$152 |
|
|
Net income % |
19.9% |
27.7% |
40.0% |
42.0% |
@$20 |
|
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
EV Energy Prtnrs(EVEP) |
$152 |
1.1 |
5.1 |
1.7 |
1.7 |
102% |
|
SCORECARD |
|
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
1-5, 5 is high |
|
|
Growth |
mination |
tary |
rating |
|
20 is perfect |
|
2 |
2 |
1 |
1 |
6 |
|
8% anticipated return on limited partnership units |
|
|
|
|
|
|
Business |
|
|
|
|
|
|
|
. Limited partnership formed in April 2006 to acquire, produce and develop oil and gas properties. |
|
|
|
. Intends to pay holders of common units distributions of available cash of $0.40 per unit for each |
|
|
|
quarter, or $1.60 per unit annually, before pay any distributions paid to holders of subordinated |
|
|
|
|
units. |
|
|
|
|
|
|
|
Properties |
|
|
|
|
|
|
|
. Located in the Appalachian Basin, primarily in Ohio and West Virginia, and in the Monroe field |
|
|
|
|
in Northern Louisiana. |
|
|
|
|
|
|
|
. At December 31, 2005, oil and gas properties had estimated net proved reserves of 44.8 Bcf |
|
|
|
|
of gas and 1.1 MMBbls of oil, or 51.2 Bcfe, and a present value of future net cash flows, |
|
|
|
|
discounted at 10%, or standardized measure, of $161.2 million. |
|
|
|
|
|
. Properties are located in mature fields and have a long reserve to production index of 18.8 years. |
|
|
|
. EVEP;s 2005 reserve report includes a multi-year inventory of 80 relatively low risk, proved |
|
|
|
|
undeveloped drilling locations, all of which are located on Appalachian properties. |
|
|
|
|
Seasonal Business |
|
|
|
|
|
|
|
. Seasonal weather conditions and lease stipulations can limit EVEP’s drilling and producing |
|
|
|
|
activities and other operations in certain areas of the Appalachian Basin. |
|
|
|
|
|
. As a result, EVEP generally performs the majority of drilling in the Appalachian Basin during |
|
|
|
|
the summer and autumn months |
|
|
|
|
|
|
|
Competition |
|
|
|
|
|
|
|
. Other independent operators and from major oil companies in acquiring properties, contracting |
|
|
|
for drilling equipment and securing trained personnel. |
|
|
|
|
|
|
. Also affected by competition for drilling rigs and the availability of related equipment. |
|
|
|
|
. In the past, the natural gas and oil industry has experienced shortages of drilling rigs, equipment, |
|
|
|
pipe and personnel, which has delayed development drilling and other exploitation activities and |
|
|
|
|
has caused significant price increases. |
|
|
|
|
|
|
|
. Has entered into contracts with a drilling company to drill all of the wells on EVEP’s |
|
|
|
|
Appalachian properties that EVEP plans to drill during 2006. |
|
|
|
|
|
|
Use of $72.5mm in IPO proceeds |
|
|
|
|
|
|
|
• $60.19 million to the former owners of the predecessors |
|
|
|
|
|
|
• $10.35 million to repay in full the indebtedness incurred by one of the predecessors to purchase |
|
|
|
EVEP’s Northern Louisiana properties; |
|
|
|
|
|
|
|
• $2.0 million of the net proceeds for pocket legal, accounting, printing and other fees and |
|
|
|
|
expenses of the offering |
|
|
|
|
|
|
|
===================================================================== |
|
|
|
|
ICF International |
ICFI, C+, 7 |
|
|
|
|
|
|
consulting for the US gov |
|
|
|
|
Post-IPO shrs:13mm |
|
|
Fairfax, VA |
2003 |
2004 |
2005 |
6mos June |
IPO Mkt |
|
|
Rev ($mm) |
$146.0 |
$139.0 |
$208.0 |
$110.0 |
Cap (mm) |
|
|
Gross profit |
38% |
40% |
41% |
40% |
$194 |
|
|
Income ($mm) |
$2.4 |
$3.0 |
$1.8 |
-$0.3 |
@$15 |
|
|
Net income % |
1.6% |
2.2% |
0.9% |
-0.3% |
|
|
|
Note: June 30, 2006 results include a lease abandonment charge of $4.3mm |
|
|
|
|
. After tax earnings without the lease abandonmnet charge* |
|
|
$1.8 |
|
|
|
. Annualized P/E multiple without lease cabandonment charge |
|
54 |
|
|
|
*assuming 2005 proforma tax rate |
|
|
|
|
|
|
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
ICF International (ICFI) |
$194 |
1.4 |
-323 |
1.9 |
10.6 |
36% |
|
SCORECARD |
|
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
1-5, 5 is high |
|
|
Growth |
mination |
tary |
rating |
|
20 is perfect |
|
2 |
2 |
2 |
1 |
7 |
|
Notice the "Road Home Contract" below |
|
|
|
|
|
|
|
Business |
|
|
|
|
|
|
|
. Management, technology and policy consulting and implementation services primarily to the |
|
|
|
|
U.S. federal government, as well as to other government, commercial and international clients. |
|
|
|
|
. Helps clients conceive, develop, implement and improve solutions that address complex |
|
|
|
|
economic, social and national security issues. |
|
|
|
|
|
|
. Services primarily address four key markets: defense and homeland security; energy; |
|
|
|
|
environment and infrastructure; and health, human services and social programs. |
|
|
|
|
. Revenue generated from state and local government clients is expected to increase in 2006, due |
|
|
|
primarily to work in connection with the Road Home Contract with the State of Louisiana |
|
|
|
|
Clients |
|
|
|
|
|
|
|
. U.S. federal government clients include every cabinet-level department, including the |
|
|
|
|
Department of Defense, the Environmental Protection Agency, the Department of Homeland |
|
|
|
|
Security, the Department of Transportation, the Department of Health and Human Services, the |
|
|
|
Department of Housing and Urban Development, the Department of Justice and the Department of |
|
|
|
Energy. U.S. federal government clients generated 72% of revenue in 2005. |
|
|
|
|
|
. State and local government clients include the states of California, Louisiana, Massachusetts, |
|
|
|
New York and Pennsylvania. State and local government clients generated 9% of revenue in 2005. |
|
|
|
. Also serves commercial and international clients, primarily in the energy sector, including |
|
|
|
|
electric and gas utilities, oil companies and law firms. Commercial and international clients |
|
|
|
|
generated 19% of revenue in 2005. |
|
|
|
|
|
|
|
Road Home Contract |
|
|
|
|
|
|
|
. ICFI has been awarded a contract (Road Home Contract) by the State of Louisiana’s Office of |
|
|
|
Community Development, effective June 12, 2006, to serve as the manager for The Road Home |
|
|
|
Housing Program |
|
|
|
|
|
|
|
. This program, which is being funded with approximately $8.1 billion of Community |
|
|
|
|
Development Block Grant funds allocated by the Department of Housing and Urban |
|
|
|
|
Development, is designed to assist the population affected by Hurricanes Rita and Katrina to |
|
|
|
|
repair, rebuild or relocate by making certain reimbursements to qualified homeowners and small |
|
|
|
rental unit landlords for their uninsured, uncompensated damages. |
|
|
|
|
|
Contract terms |
|
|
|
|
|
|
|
. Although the request for proposals leading to this award anticipated a five-year contract, due to |
|
|
|
limitations under Louisiana law, the Road Home Contract has a stated term of three years. |
|
|
|
|
. The maximum amount payable to ICF EMS and its subcontractors with respect to the first four |
|
|
|
month phase of the contract will be $87.2 million, and funding levels beyond the first phase have |
|
|
|
not yet been negotiated. |
|
|
|
|
|
|
|
. ICFI does not expect the amount payable during the first phase to be indicative of future revenue |
|
|
|
levels during the balance of the contract term. |
|
|
|
|
|
|
. In addition, key subcontractors will perform a substantial portion, perhaps 50 to 65%, of the |
|
|
|
|
work under the contract, which will increase ICFI’s direct costs associated with the contract. |
|
|
|
|
Three phases of work |
|
|
|
|
|
|
|
. Funding has been secured only for the first phase that lasts for a period of four months |
|
|
|
|
. Additional funding will depend on performance in phase one and the ability of ICF EMS and its |
|
|
|
|
subcontractors to meet the deadlines stated in the contract. |
|
|
|
|
|
. There is no assurance the State of Louisiana will amend the contract to add funding for later |
|
|
|
|
phases if these deadlines are not met or if the State is not satisfied with ICFI’s and ICFI’s |
|
|
|
|
subcontractors’ performance |
|
|
|
|
|
|
|
Competition |
|
|
|
|
|
|
|
. Some of the principal competitors include BearingPoint, Inc., Booz Allen Hamilton, Inc., CRA |
|
|
|
|
International, Inc., L-3 Communications Corporation, Lockheed Martin Corporation, Navigant |
|
|
|
|
Consulting, Inc., Northrop Grumman Corporation, PA Consulting Group, SAIC, Inc., and SRA |
|
|
|
|
International, Inc. |
|
|
|
|
|
|
|
. In addition, within each of the four key markets, ICFI has numerous smaller competitors, many |
|
|
|
|
of which have narrower service offerings and serve niche markets. |
|
|
|
|
|
Use of $49mm in IPO proceeds from sale of 3.7mm shares |
|
|
|
|
|
|
(shareholders intend to sell 1mm shares) |
|
|
|
|
|
|
|
. up to $46 million to repay a portion of the existing indebtedness under our revolving credit and |
|
|
|
|
term loan facilities; |
|
|
|
|
|
|
|
. $2.7 million for one-time bonus payments due to employees under an amended and restated |
|
|
|
|
employee annual incentive compensation pool |
|
|
|
|
|
|
. balance for general corporate purposes, including working capital and potential acquisitions. |
|
|
|
|
======================================================== |
|
|
|
|
|
ImaRX Therapeutics |
IMRX, C+, 7 |
|
|
|
|
|
|
therapies for blood clots |
|