Smile Brands (GRIN), which provides business support services, staff and equipment to US dental groups, is expected to float its IPO this week.
All excerpts are taken from the most recent S-1 filing.
Business Overview (from prospectus)
Smile Brands Group Inc. is the largest provider of support services to general and multi-specialty dental groups in the United States based on number of dental offices. We provide comprehensive business support services, non-clinical personnel, facilities and equipment through our exclusive agreements with affiliated dental groups. Our consumer-driven retail model is guided by the principle “SMILES FOR EVERYONE®”. This model attracts patients to affiliated dental groups by combining strong, recognizable brands, visible retail locations and extended office hours with affordable and comprehensive dental care. Utilizing our model, dentists spend more time caring for their patients and less time on the administrative, marketing and financial aspects of the dental practice while benefiting from a lower cost structure. Our services support more than 1,100 dentists and hygienists practicing in over 300 offices nationally.
Offering: 7.4 million shares at $16 - $18 per share. Net proceeds of approximately $112.5 million will be used to redeem all of the company's Series A preferred stock and to repay debt.
We recorded revenues of $427.2 million, $445.0 million and $456.5 million, Adjusted EBITDA of $39.7 million, $44.1 million and $56.7 million, and net (loss) income attributable to Smile Brands Group Inc. of $(8.4) million, $(12.0) million and $45.7 million, for each of the years ended December 31, 2007, 2008 and 2009, respectively. We recorded revenues of $116.2 million and $118.1 million, Adjusted EBITDA of $15.5 million and $16.3 million, and net income attributable to Smile Brands Group Inc. of $6.0 million and $4.0 million, each for the three months ended March 31, 2009 and 2010, respectively.
The dental services industry is large and highly fragmented. The business of providing general, hygiene and specialty dental services is highly competitive in the markets in which affiliated dental groups operate. Our affiliated dentists compete with all other dentists in their local market.