|
Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop |
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Pre-IPO analysis, grading & scoring -- updated July 27 |
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. Business Model Rating Criteria |
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A = high growth market, potential leader; B = more competitive market; C= 'public venture capital' |
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. Calculations |
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. IPO Price to annualized Sales Ratio -- (Price / Sales) |
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Numerator |
Denominator |
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IPO market capitalization… |
Annualized Sales (based on recent results) |
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(post-IPO # of shares times mid-point of IPO price range) |
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. IPO Price to annualized Earnings (loss) -- (Price / Earnings) |
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Numerator |
Denominator |
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IPO market cap |
Annualized Earnings (loss) from the last quarter |
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=================== |
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SEARCH BY COMPANY |
In your browser use 'Edit/Find' to search for companies |
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|
or ticker for analysis |
scheduled below |
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|
=================== |
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July 30 week IPO schedule |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Amedica (AMCA) |
$214 |
n/a |
-10 |
2.5 |
2.5 |
31% |
|
orthopedic spine & joint implants: C, 6 |
Post-IPO shrs: 15mm |
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|
Concho Resources CXO |
$1,088 |
4.5 |
59 |
1.4 |
1.4 |
29% |
|
oil/gas; West Texas, New Mex:, C+, 7 |
Post-IPO shrs: 26mm |
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|
Dolan Media (DM) |
$364 |
2.5 |
45 |
3.0 |
-8.6 |
42% |
|
print & online media for legal industry: C+, 7 |
Post-IPO shrs: 25mm |
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|
Genpact Limited (G) |
$3,509 |
5.0 |
487 |
3.7 |
12.0 |
17% |
|
manages business processes: C+, 7 |
Post-IPO shrs: 206mm |
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|
NanoDynamics (NDMX) |
$345 |
66.3 |
-24 |
3.8 |
3.8 |
25% |
|
tech for clean energy & infrastructure: C, 5 |
Post-IPO shrs: 26.5mm |
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|
Sucampo Pharma SCMP |
$626 |
12.0 |
303 |
8.5 |
9.1 |
9% |
|
proprietary drugs based on prostones: C, 6 |
Post-IPO shrs: 42mm |
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|
Virtusa (VRTU) |
$342 |
2.7 |
18 |
2.5 |
2.5 |
19% |
|
offshore IT tech services: C+, 8 |
March 31 fisal |
Post-IPO shrs: 23mm |
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|
=================== |
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|
SEARCH BY COMPANY |
In your browser use 'Edit/Find' to search for companies |
|||||
|
or ticker for analysis |
scheduled below |
|||||
|
=================== |
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|
July 30 week IPO schedule |
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|
Amedica |
AMCA, C, 6 |
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|
orthopedic spine & joint implants |
Post-IPO shrs: 15mm |
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|
Salt Lake City, UT |
2004 |
2005 |
2006 |
March, 06* |
March, 07* |
IPO Mkt |
|
Grant revenue ($mm) |
$0.2 |
$0.1 |
$0 |
$0.0 |
$0.0 |
Cap (mm) |
|
Profit (loss) $mm |
-$1.8 |
-$4.2 |
-$6.2 |
-$1.3 |
-$5.6 |
$214 |
|
* three months ended March 31 |
@$14 |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Amedica (AMCA) |
$214 |
n/a |
-10 |
2.5 |
2.5 |
31% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
0 |
2 |
6 |
|
|
Business |
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|
. An orthopedic implants company focused on using its own silicon nitride ceramic technologies to |
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|
develop, manufacture and commercialize a broad range of advanced, high-performance spine and joint |
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|
implants. |
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|
Silicon nitride formulation |
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|
. Has developed a formulation of silicon nitride which AMCA believes has the strength, toughness and |
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|
wear resistance necessary to overcome the limitations of currently available orthopedic implants. |
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|
. Upon introduction to market, AMCA believes its implants will represent the first commercial use of |
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|
silicon nitride ceramics in orthopedic applications and will have the potential to provide an improved |
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|
combination of characteristics, including greater strength and resistance to fracture, improved resistance to |
||||||
|
wear, greater ability to promote bone attachment and better compatibility with surgical and diagnostic |
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|
imaging. |
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|
. Based on these potential advantages, AMCA believes its silicon nitride product candidates may achieve |
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|
better long-term clinical outcomes with enhanced durability, longevity, biocompatibility and patient fit. |
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|
FDA clearance & goal |
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|
. While AMCA has not received regulatory clearance or approval for any product candidates that AMCA |
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|
intends to commercialize, in the second half of 2007 AMCA expects to submit premarket notifications to |
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|
the U.S. Food and Drug Administration, or the FDA, seeking regulatory clearance of our first commercial |
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|
product candidate. |
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|
. AMCA's goal is to establish its silicon nitride implants as new standards of care for the largest and |
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|
fastest growing orthopedic implant markets: the spine, hip and knee markets. |
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|
Products & clinical trials |
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|
> Spinal implants |
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|
. Lead product candidates are the Valeo™ family of spinal implants, intended to restore and maintain the |
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|
alignment of vertebrae in the cervical, or neck, region and lumbar, or lower back, region of the spine. |
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|
. Expects to launch the first of these products by mid-2008, subject to clearance by the FDA. |
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|
. In 2006, received clearance from the FDA for a silicon nitride ceramic spinal spacer, a device for insertion |
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|
between two vertebrae to help stabilize the spine. |
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|
. AMCA believes this is the first ceramic spinal spacer ever cleared by the FDA for human use. Although |
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|
AMCA does not plan to commercialize this spinal spacer, it will be the predicate device for the Valeo spinal spacers. |
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|
. Plans to introduce additional spinal spacers by the end of 2008, subject to regulatory clearance, including |
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|
cortico-cancellous spacers that feature a bone-like structure with a solid, or cortical, load-bearing portion |
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|
and a cancellous, or porous, structure that is intended to promote bone attachment for spinal fixation. |
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|
. In mid-2009, subject to regulatory approval, plans to introduce cortico-cancellous spinal spacers with a |
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|
surface coating designed to enhance bone attachment. |
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|
. AMCA's Valeo family of spinal implant candidates also includes an all-ceramic, motion-preserving |
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|
cervical disc, for which AMCA anticipates commencing a clinical trial by mid-2009. |
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|
> Hip & knee implants |
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|
. AMCS believes that its Infinia Total Hip and Knee Implants, if approved or cleared by the FDA, may |
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|
provide competitive advantages over currently marketed total hip and knee replacement implants. |
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|
. Designing designing the Infinia Total Hip Implant to offer surgeons a range of sizes and design options |
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|
comparable to implants with metal and plastic components but with improved wear resistance. |
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|
. Anticipates commencing a clinical trial for the first of these total hip implant candidates in 2009. Also are |
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|
designing an Infinia Total Knee Implant and anticipates commencing a clinical trial for this product |
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|
candidate in 2010 |
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|
. AMCA believes that its design will provide natural anatomic motion and offer lower wear and improved |
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|
longevity compared to currently marketed knee replacement implants. |
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|
Production |
||||||
|
. AMCA anticipates its facility will be fully operational for commercial-scale production by the end of |
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|
'2007 |
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|
. Which AMCA believes would make AMCA the only vertically integrated silicon nitride orthopedic |
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|
implant manufacturer in the world. |
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|
Revenue and Deferred Revenue |
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|
. To date, has not generated any revenue from the sale of any product. Does not expect to generate revenue |
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|
from the sale of any product until the first half of 2008, subject to FDA clearance of lead implant product |
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|
candidates. |
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|
. Has received revenue from research grants from the NIH primarily related to development of ceramic |
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|
implants. |
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|
Intellectual property |
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|
Four issued U.S. patents, 12 pending U.S. patent applications, and ten pending foreign patent applications. |
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|
Competition |
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|
> Main global competitors in the |
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|
. Spine implant market include Medtronic Spinal and Biologics, a subsidiary of Medtronic, Inc.; Synthes, |
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|
Inc.; DePuy Spine, Inc., a subsidiary of Johnson & Johnson; Stryker Spine, a division of Stryker |
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|
Corporation; Biomet Spine and Biomet Trauma, a subsidiary of Biomet, Inc.; and Zimmer Spine, a |
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|
subsidiary of Zimmer Holdings, Inc., which, in 2006, together accounted for over 80% of the market. |
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|
. Hip and knee implant market are Zimmer Holdings, Inc.; DePuy Orthopaedics, Inc., a subsidiary of |
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|
Johnson & Johnson; Stryker Orthopaedics, a division of Stryker Corporation; Biomet, Inc.; and Smith & |
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|
Nephew Orthopaedics, a subsidiary of Smith & Nephew plc, which, in 2006, together accounted for over |
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|
80% of the market. |
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|
> Others |
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|
. Orthopedic companies may seek to introduce new ceramic-based implants to compete. Presently, these |
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|
companies buy ceramic components from manufacturers such as Ceramtec, Metoxit, Morgan-Matroc, |
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|
Kyocera and NTK. |
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|
. These companies manufacture and provide ceramic femoral heads on an original equipment manufacturer, |
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|
or OEM, basis to orthopedic implant companies such as Stryker, DePuy and Zimmer. |
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|
. AMCA ill seek to compete with their products based on the performance advantages offered by AMCA's |
||||||
|
silicon nitride-based ceramic technologies. |
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|
Use of $58mm in IPO proceeds |
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|
o $3.0 million to fund the development and commercialization of lead product candidates; |
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|
o $22.0 million to fund research and development and commercialization activities of pipeline product |
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|
candidates; |
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|
o $10.0 million to build sales, marketing and distribution capabilities for spine and reconstructive implants |
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|
including the costs of instrumentation sets; and |
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|
o remainder for working capital and other general corporate purposes. |
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|
=================== |
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|
Concho Resources |
CXO, C+, 7 |
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|
oil/gas; West Texas, New Mex |
Post-IPO shrs: 26mm |
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|
Midland, TX |
proforma => |
2006 |
March, 07* |
IPO Mkt |
||
|
Rev ($mm) |
$220 |
$60 |
Cap (mm) |
|||
|
Profit (loss) $mm |
$23.6 |
$4.6 |
$1,088 |
|||
|
Profit (loss) % |
11% |
8% |
@$13 |
|||
|
EBITDA ($mm) |
$143.0 |
$38.2 |
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|
EBITDA (%) |
65% |
64% |
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|
* three months ended March 31 |
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|
* three months ended March 31 |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Concho Resources CXO |
$1,088 |
4.5 |
59 |
1.4 |
1.4 |
29% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
2 |
1 |
7 |
|
|
Business |
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|
. Independent oil and natural gas company engaged in the acquisition, development, exploitation and |
||||||
|
exploration of oil and natural gas properties. |
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|
. Conventional operations are primarily focused in the Permian Basin of Southeast New Mexico and West |
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|
Texas. |
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|
. Intends to grow reserves and production through development drilling, exploitation and exploration |
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|
activities on multi-year project inventory and through acquisitions that meet strategic and financial |
||||||
|
objectives. |
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|
Competition |
||||||
|
. Strong competition from numerous parties, ranging generally from small independent producers to major |
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|
integrated oil companies, primarily when acquiring properties, contracting for drilling and workover |
||||||
|
equipment and securing trained personnel |
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|
. Also affected by competition for drilling rigs and the availability of related equipment. The oil and natural |
||||||
|
gas industry is currently experiencing shortages of drilling and workover rigs, equipment, pipe, materials |
||||||
|
and personnel, which has delayed developmental drilling and exploitation activities and caused significant |
||||||
|
price increases. The shortage of personnel has also made it difficult to attract and retain personnel with |
||||||
|
experience in the oil and gas industry and has caused us to increase our general and administrative budget. |
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|
Combination/recapitalization |
||||||
|
. On February 24, 2006, we entered into a combination agreement to acquire properties owned by Chase |
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|
Oil Corporation, Caza Energy LLC and certain other individual working interest owners (which we refer to |
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|
collectively as the "Chase Group") and combine them with substantially all of the outstanding equity |
||||||
|
interests of Concho Equity Holdings Corp. to form CXO company. |
||||||
|
. For 35mm shares and $400 million in cash |
||||||
|
. Former shareholders of Concho Equity Holdings Corp. that were a party to the combination agreement |
||||||
|
received 23,767,691 shares of CXO common stock. |
||||||
|
Use of $183mm in IPO proceeds from sale of 13.3mm shares |
||||||
|
(shareholders intend to sell 7.9mm shares for $117mm) |
||||||
|
Repay debt |
||||||
|
=================== |
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|
Dolan Media |
DM, C+, 7 |
|||||
|
print & online media for legal industry |
Post-IPO shrs: 25mm |
|||||
|
Minneapolis, MN |
proforma => |
2006 |
March, 07* |
IPO Mkt |
||
|
Rev ($mm) |
$128 |
$36 |
Cap (mm) |
|||
|
Operating Income % |
17% |
21% |
$364 |
|||
|
Interest % |
5% |
4% |
@$14.5 |
|||
|
Profit (loss) $mm |
$7.8 |
$2.0 |
||||
|
Profit (loss) % |
6% |
6% |
||||
|
EBITDA ($mm) |
$31.7 |
$10.7 |
||||
|
EBITDA (%) |
25% |
30% |
||||
|
* three months ended March 31 |
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|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Dolan Media (DM) |
$364 |
2.5 |
45 |
3.0 |
-8.6 |
42% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
2 |
1 |
7 |
|
|
Business |
||||||
|
. A leading provider of necessary business information and professional services to the legal, financial and |
||||||
|
real estate sectors in the United States. |
||||||
|
. Provide companies and professionals in the markets served with access to timely, relevant and dependable |
||||||
|
information and services that enable them to operate effectively in highly competitive and time sensitive |
||||||
|
business environments. |
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|
Two operating segments: Business Information and Professional Services. |
||||||
|
> The Business Information Division publishes business journals, court and commercial newspapers and |
||||||
|
other publications, operates web sites and conducts a broad range of events for targeted audiences in each |
||||||
|
of the 20 markets that serves in the United States. |
||||||
|
> The Professional Services Division comprises two operating units, APC and Counsel Press, LLC, that |
||||||
|
provide services that enable law firms and attorneys to process residential mortgage defaults and court |
||||||
|
appeals in a timely and efficient manner. |
||||||
|
Revenues |
||||||
|
. Two operating segments Business Information Division and Professional Services Division. |
||||||
|
. In 2006 and the first quarter of 2007, total revenues were $111.6 million ($127.7 million on a pro forma |
||||||
|
basis) and $35.7 million, respectively, and the percentage of our total revenues attributed to each of our |
||||||
|
segments was as follows: |
||||||
|
o 66.1% (57.8% on a pro forma basis) and 54.6%, respectively, from the Business Information Division; |
||||||
|
o 33.9% (42.2% on a pro forma basis) and 45.4%, respectively, from the Professional Services Division. |
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|
Competition |
||||||
|
> Business Information Division |
||||||
|
At least one metropolitan daily newspaper and one local business journal in many of the markets served |
||||||
|
> Professional Services Division |
||||||
|
DM estimates that the outsourced mortgage default processing services market primarily consists of the |
||||||
|
back-office operations of approximately 350 local and regional law firms. |
||||||
|
. According to DM th market for appellate consulting and printing services is highly fragmented and DM |
||||||
|
believes that it includes a large number of local and regional printers across the country. DM believes that |
||||||
|
most appellate service providers are low-capacity, general printing service companies that do not have the |
||||||
|
resources to assist counsel with large or complex appeals or to prepare the electronic, hyperlinked digital |
||||||
|
briefs on CD-ROM that are being accepted by an increasing number of appellate courts. |
||||||
|
Use of $139mm in IPO proceeds |
||||||
|
o $101mm to redeem preferred stock |
||||||
|
o $30mm to repay debt |
||||||
|
o Balance for general corporate purposes, including for acquisitions and working capital. |
||||||
|
=================== |
||||||
|
Genpact Limited |
G, C+, 7 |
|||||
|
manages business processes |
Post-IPO shrs: 206mm |
|||||
|
Hamilton, HMBermuda |
2005 |
2006 |
March, 06* |
March, 07* |
IPO Mkt |
|
|
Rev ($mm) |
$492.0 |
$613 |
$132.0 |
$176.0 |
Cap (mm) |
|
|
Gross Profit |
38% |
41% |
41% |
38% |
$3,509 |
|
|
Profit (loss) $mm |
$17.1 |
$40.0 |
$5.1 |
$1.8 |
@$17 |
|
|
Profit (loss) % |
3% |
7% |
4% |
1% |
||
|
* three months ended March 31 |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
Genpact Limited |
$3,509 |
5.0 |
487 |
3.7 |
12.0 |
17% |
|
SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
|
|
1-5, 5 is high |
Growth |
mination |
tary |
rating |
||
|
20 is perfect |
2 |
2 |
2 |
1 |
7 |
|
|
Business |
||||||
|
. Manages business processes for companies around the world. |
||||||
|
. Began in 1997 as the India-based captive business process services operation for General Electric Capital |
||||||
|
Corporation, or GE Capital, GE's financial services business. |
||||||
|
. Became a significant provider to many of GE's businesses, including Consumer Finance (GE Money), |
||||||
|
Commercial Finance, Insurance, Healthcare, Industrial, NBC Universal and GE's corporate offices. |
||||||
|
Reorganization |
||||||
|
. On December 30, 2004, in a series of transactions we refer to as the "2004 Reorganization," GE |
||||||
|
reorganized these operations by placing them all under Genpact Global Holdings, a newly formed |
||||||
|
Luxembourg entity, and |
||||||
|
. Subsequently sold an indirect 60% interest in that entity to General Atlantic and Oak Hill |
||||||
|
. As of December 31, 2006, GE owned approximately 29% of G's equity, after giving effect to the |
||||||
|
conversion of preferred stock but excluding shares issuable pursuant to outstanding options. |
||||||
|
. Began actively pursuing business from Global Clients as of January 1, 2005. |
||||||
|
. Net revenues from GE excluding the Unassigned Revenues were $385.1 million in 2004, $449.7 million |
||||||
|
in 2005 and $453.3 million in 2006, respectively, representing a CAGR of approximately 8.5%. |
||||||
|
. Since G became an independent company, G has increased business from both GE and Global Clients |
||||||
|
such that total net revenues (excluding the Unassigned Revenue) increased from $405.4 million in 2004 to |
||||||
|
$491.9 million in 2005 and $613.0 million in 2006 representing a CAGR of 23.0% |
||||||
|
Competition |
||||||
|
o large multinational service providers, such as Accenture Ltd and International Business Machines |
||||||
|
Corporation, with whom we compete most often; |
||||||
|
o companies that are primarily BPO service providers operating from low-cost countries, most commonly |
||||||
|
India, such as WNS Holdings Limited and ExlService Holdings, Inc.; |
||||||
|
o companies that are primarily IT service providers with some BPO service capabilities, such as Infosys |
||||||
|
Technologies Limited, Tata Consultancy Services Limited and Wipro Limited; and |
||||||
|
o smaller, niche service providers that provide services in a specific geographic market, industry segment or |
||||||
|
service area. |
||||||
|
Use of $273mm in IPO proceeds from sale of 17.6mm shares |
||||||
|
(shareholders also intend to sell 17.6mm shares) |
||||||
|
. $100 mm to repay debt |
||||||
|
. Balance for working capital and general corporate purposes |
||||||
|
=================== |
||||||
|
NanoDynamics |
NDMX, C, 5 |
|||||
|
tech for clean energy & infrastructure |
Post-IPO shrs: 26.5mm |
|||||
|
Buffalo, NY |
2004 |
2005 |
2006 |
March, 06* |
March, 07* |
IPO Mkt |
|
Rev ($mm) |
$1.1 |
$3.3 |
$4 |
$0.9 |
$1.3 |
Cap (mm) |
|
Profit (loss) $mm |
-$5.4 |
-$10.3 |
-$14.7 |
-$3.1 |
-$3.6 |
$345 |
|
Profit (loss) % |
-491% |
-312% |
-334% |
-344% |
-277% |
@$13 |
|
* three months ended March 31 |
||||||
|
VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
|
|
NanoDynamics (NDMX) |
$345 |
66.3 |
-24 |
3.8 |
3.8 |
25% |
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SCORECARD |
Mgt |
Market |
Market Do- |
Proprie- |
Total |
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1-5, 5 is high |
Growth |
mination |
tary |
rating |
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20 is perfect |
2 |
2 |
0 |
1 |
5 |
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Business |
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. Products, advanced materials and process technologies that provide clean technology, with a principal |
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focus on the energy, environmental and infrastructure markets. |
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. To date, generated most of the revenues from contract research and development services. |
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. For the year ended December 31, 2006, 89% of revenues were derived through grants from U.S. federal |
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and state governmental agencies, and the remaining 11% was derived from development agreements with |
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strategic partners and the sale of products and advanced materials. |
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. Expect to continue to devote the majority of time, energy and capital resources on the acquisition and |
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development of proprietary technologies for commercialization. |
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Intellectual property |
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. Policy is to patent or in-license the technology, inventions and improvements that NDMX considers |
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important to the development of the business. |
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. Built a portfolio of more than 115 patents and patent applications that NDMX either owns or has licensed |
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around key products and technologies. |
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. As of July 1, 2007, this portfolio included 19 issued U.S. patents and over 35 pending U.S. patent |
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applications, as well as related foreign applications. |
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. Of these, three patents and one patent application cover water filtration products, one patent and five |
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patent applications relate to solid oxide fuel cells (SOFC)s, six patents and 11 patent applications cover |
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advanced materials and one patent application relates to process intensification technologies. |
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Competition |
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> SOFC's |
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. The solid oxide fuel cell product (SOFC), competes not only with companies that are developing solid |
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oxide fuel cell technology, but also with companies that are developing PEMs, phosphoric acid fuel cells, |
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molten carbonate fuel cells and alkaline fuel cells. |
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. These companies include Smart Fuel Cells, Protonex, Adaptive Materials, Ceramic Fuel Cells Ltd. And |
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Acumentrics. |
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. NDMX's solid oxided fuel cell products also compete with other distributed generation technologies, |
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including microturbines and reciprocating engines, and with certain types of battery technologies, which |
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are available at prices competitive with existing forms of power generation |
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> Water filters |
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Expects to compete with a wide variety of companies, such as Bayer, Dow Chemical, Argonide, KX |
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Industries and Veolia, that supply water filtration products, including those that produce ultraviolet |
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membranes and ion exchange systems |
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. We will be engaged in a segment of the water filtration industry that is highly competitive and rapidly |
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changing. |
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> Infrastructure market |
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Competes with several large domestic and multi-national advanced materials and chemical companies, as |
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well as suppliers of traditional materials, including General Electric, E.I. DuPont and W.R. Grace |
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> Others |
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Also faces competition from companies similar that are developing new products. These include |
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Nanophase Technologies (nanoceramics), Novacentrix (nanometals), Degussa (nanoceramics), Ferro |
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(nanometals), Cabot Corporation (carbon and metal powders), Umicore (metal powders) and Hycrete |
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(cement additives), among others. |
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Use of $78mm in IPO proceeds from sale of 6.6mm shares |
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