VERASUN ENERGY (VSE)
Opinion on Seeking Alpha: from Clearfish Research, "given their unspectacular operating history, when all the stars were aligned for them, we’re skeptical of how they would fare if the price of ethanol took a nose dive." From Cleantechblog: "Given how hot the ethanol sector is right now, I’d expect this float to go out at the high end of my range, and probably trade well, but at the end of the day, it is a refiner, not a tech company." See additional research on VSE here.
Business (from Prospectus):
VeraSun Energy Corporation is the second largest ethanol producer in the U.S. based on production capacity, according to the RFA. We are also the largest “pure-play” ethanol producer, focusing primarily on the production and sale of ethanol and its co-products. This focus has enabled us to significantly grow our ethanol production capacity and to work with automakers, fuel distributors, trade associations and consumers to increase the demand for ethanol.
Underwriters: Morgan Stanley, Lehman Brothers
Offering: 11 million shares at $21-22 range; at mid range this would be a $236.5 million raise, or net raise of $216.8. Internals are selling an additional 7.25 million shares (up from 6.25 million on Friday). Proceeds are earmarked to finance a portion of the construction costs a Northwestern Iowa Facility and Welcome Facility ($280 million); the shortfall will originate from cash generated from operations.
For the year ended December 31, 2005, our total revenues, EBITDA and net income were $236.4 million, $29.9 million and $253,000, respectively, reflecting a full year of operations at our Aurora Facility and less than three months of operations at our Fort Dodge Facility. For the three months ended March 31, 2006, our total revenues, EBITDA and net income were $110.7 million, $29.6 million and $2.7 million, respectively, reflecting operations at both facilities.
VERIGY LTD. (Nasdaq: VRGY)
Business (from Prospectus):
We design, develop, manufacture and sell advanced test systems and solutions for the semiconductor industry. We offer a single platform for each of the two general categories of devices being tested: our 93000 Series platform, designed to test System-on-a-Chip (SOC), System-in-a-Package (SIP) and high-speed memory devices, and our Versatest V5000 Series platform, designed to test memory devices, including flash memory and multi-chip packages. We believe our products are especially well-equipped to address the growing challenges in today's semiconductor market."
Underwriters: Goldman Sachs, Credit Suisse, Cowen, Thomas Weisel
Offering: $16-18 range, 8.5 million shares sold by the company for mid-range raise of $127.5 million. Agilent Technologies (A) will continue to own approximately 85.5% of the company post-raise.
P&L Highlights: "Our net loss for the three months ended January 31, 2006 was $16 million, and for the year ended October 31, 2005, was $119 million. We are unable to predict the extent of future losses or when we will become profitable, if at all."
Select Competitors: Advantest (NYSE:ATE), Credence Systems (CMOS), LTX Corporation (LTXX), Nextest (NEXT-OLD), Teradyne (NYSE:TER).
SYNCHRONOSS TECHNOLOGIES (Nasdaq: SNCR)
Opinion on Seeking Alpha: From ClearFish Research, "They are still small, but they have ramped their business up to a profitable (even GAAP-wise) size, and they show no signs of doing anything other than managing their growth very well. Solid." See the full report.
Business (from Prospectus):
We are a leading provider of e-commerce transaction management solutions to the communications services marketplace based on our penetration into key providers of communications services. Our proprietary on-demand software platform enables communications service providers, or CSPs, to take, manage and provision orders and other customer-oriented transactions and create complex service bundles. We target complex and high-growth industry segments including wireless, Voice over Internet Protocol, or VoIP, wireline and other markets.
Underwriters: Goldman Sachs, Deutsche Bank
Offering: $9-11 range, 6.5 million shares for a mid-range raise of $65 million. Net proceeds of $58.9 million. Additional $1.1 million shares being offered by selling shareholders. Proceeds will go towards corporate expansion.
The majority of our revenues are generated from fees earned on each transaction processed utilizing our platform. We have increased our revenues rapidly, growing at a compound annual growth rate of 76% from 2001 to 2005. For 2005, we generated revenues of $54.2 million, a 99.4% increase over 2004. Our net income for the period was $12.4 million, versus a loss of approximately $0.01 million for the prior year.
Golfsmith is the nation’s largest specialty retailer of golf equipment, apparel and accessories based on sales. Since our founding in 1967, we have established Golfsmith as a leading national brand in the golf retail industry. We operate as an integrated multi-channel retailer, providing our customers, who we refer to as guests, the convenience of shopping in our 55 stores across the nation, including three new stores opened in the second quarter of 2006, through our leading Internet site, www.golfsmith.com, and from our comprehensive catalogs. Our stores feature an activity-based shopping environment where our guests can test the performance of golf clubs in our in-store hitting areas. We offer an extensive product selection that features premier national brands as well as our proprietary products and pre-owned clubs.
Underwriters: Merrill Lynch, JP Morgan, Lazard Capital Markets
Raise: $14-16 range, 6 million new shares translating to mid-range raise of $90 million. The bulk of the financing will be used to pay off an $83 million senior secured note; the rest is earmarked to pay a management consulting fee to First Atlantic Capital.
P&L Highlights: 2005 revenues were $323.8 million (up over $296.2 million in 04), operating income was $14.7 million ($9.7 million in 04) and net income $3.0 million (compared with 2004 $4.8 million net loss). Q1 06 revenues were $74.8 million ($63.9 in Q1 05), operating income was $1.9 million ($846k in Q1 05) and net loss was $869k ($2 million in Q1 05).
We are a national operator of upscale brewery restaurants featuring boldly flavored made-from-scratch dishes and premium beverages, including our award winning hand-crafted beers. Our “Every Guest, Every Time” philosophy is focused on providing our guests with a pleasurable experience, friendly attentive service and a socially inviting atmosphere. We believe this philosophy and our concepts have enabled our restaurants to achieve premium market positioning and significant brand recognition.
Underwriters: Thomas Weisel, BB&T Capital Markets
Raise: $11-13 range, 4.3 million shares for mid-range raise of $51.7 million, net proceeds of $46.1 million (approximately $52.0 million if the underwriters exercise overallotment). $7.7 million will go to corporate development, the rest to repaying debt.
P&L Highlights: 2005 revenues of $97.8 million (compared with $84.1 in 04), operating income of $3.0 million ($2.4 million in 04) and net loss of $1.8 million ($1.1 million in 04). Q1 06 revenues were $27.0 million, operating income was $1.5 million and net income $0.2 million. Comparable restaurant sales increased 6.4% in 2005 versus 2004, and increased 9.1% for the first fiscal quarter ended March 26, 2006 as compared to the first fiscal quarter ended March 27, 2005. As of March 26, 2006, indebtedness was $37.5 million.
HOUSTON WIRE & CABLE CO. (Nasdaq: HWCC)
Opinion on Seeking Alpha: from ClearFish Research's initial take on the offering: "We’ll have to wait until HWCC prices and lists, but if they come out at a market neutral P/E they may be interesting. If they get a market multiple, they are probably not dynamic enough to be interesting." See the full note.
Business (from Prospectus):
We are one of the largest distributors of specialty wire and cable and related services to the U.S. electrical distribution market. During 2005, we served approximately 2,600 customers, including virtually all of the top 200 electrical distributors in the U.S. We have strong relationships with leading wire and cable manufacturers and provide them with efficient access to the fragmented electrical distribution market. During 2005, we distributed approximately 20,000 SKUs (stock-keeping units) to over 8,300 customer locations nationwide from eleven strategically located distribution centers in ten states. We are focused on providing our electrical distributor customers with a single-source solution for specialty wire and cable and related services by offering a large selection of in-stock items, exceptional customer service and high levels of product expertise.
Underwriters: William Blair, Robert Baird
Offering: $12 -14 range, 4.25 million shares offered for $55 million raise, net raise of just under $50 million. 4.25 million shares are being offered by existing shareholders as well. The money is going towards reducing existing debt facilities.
P&L Highlights: Revenue grew from $149.1 million in 2003 to $214.0 million in 2005, a compound annual growth rate (OTCPK:CAGR) of 19.8%. During the same period, operating income increased from $4.7 million to $22.8 million, a CAGR of 120.2%.
VOLCANO CORPORATION (Nasdaq: VOLC)
Business (from Prospectus)
We develop, manufacture and commercialize a broad suite of intravascular ultrasound, or IVUS, and functional measurement, or FM, products that we believe enhance the diagnosis and treatment of vascular and structural heart disease. Vascular disease, or atherosclerosis, is caused by the accumulation of fat-laden cells in the inner lining of the artery, leading to the formation of plaque or lesions. Accumulation of plaque in the arteries narrows the diameter of the inner channel of the artery, or the lumen, which reduces blood flow.
During an IVUS procedure, an imaging catheter is placed inside an artery to produce a cross-sectional image of the size and shape of the artery’s lumen and provides information concerning the composition and density of plaque or lesions and the condition of the layers of the surrounding arterial walls. Our IVUS products consist of consoles, single-procedure disposable catheters and advanced functionality options. FM devices measure the pressure and flow characteristics of blood around plaque thereby allowing physicians to gauge the plaque’s impact on blood flow and pressure. Our FM products consist of pressure and flow consoles and single-procedure disposable pressure and flow guide wires.
Underwriters: J.P. Morgan, Piper Jaffray
Raise: $10-12 range, 6.8 million shares for mid-range raise of $74.8 million. $28.2 million will go back to FFC Partners; the remainder to R&D and general corporate purposes.
In 2005, we generated worldwide revenues of $91.9 million from the sale of our products, incurred costs of revenues of $47.8 million, had total operating expenses of $53.5 million and had a net loss of $15.3 million. Since inception, we have not been profitable and as of March 31, 2006, our accumulated deficit was $61.8 million. As of March 31, 2006, we had a worldwide installed base of over 1,400 IVUS consoles and over 700 FM consoles. We intend to grow and leverage our installed base of consoles to drive recurring sales of our single-procedure disposable catheters and guide wires, which accounted for 85.3% of our revenue in the three months ended March 31, 2006.
Select Competition: Boston Scientific (NYSE:BSX)