Carson-based sportswear retailer Beach Patrol plans 2 million share stock debut.Beach Patrol Beach patrols are groups of lifeguards usually hired to be responsible for public safety of those who visit a particular beach. The lifeguards are responsible for medical emergencies and any other possible event that may occur on a beach. Inc. will be going public sometime next month, with a 2 million share offering currently estimated at $20 million to $24 million by underwriter Sutro & Co., a San Francisco-based investment bank. Another 300,000 shares could be sold if Sutro takes its over-allotment option, bringing the figure to a possible $27.6 million. The 7-year-old Carson-based designer/distributor of women's swimwear and related sportswear will be selling half of the initial public offering at about $10-$12 per share. Current stockholders will sell the other half of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. (at the same price), thus reducing their foothold from 94.4 percent to 38.7 percent of all outstanding stock. After the transaction is completed, principal stockholder Westland Apparel Group, Ltd. -- a Winnipeg, Canada-based holding company for a jeans manufacturer called Western Glove Works -- will own 21-24 percent vs. today's 59 percent of the company's outstanding shares. "For all practical purposes," noted the prospectus, that fact and a nod from one of two company officials who hold a stake in the firm would still be enough for Westland "to control the affairs and policies of the company." After the offering, President and Chief Executive Brian Zientek will own 16.9 percent of the shares vs. 24.2 percent now and Executive Vice President Howard Greller will own 7.3 percent vs. 9.7 percent. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the prospectus, Zientek intends to use some of the proceeds he will receive from selling his shares to repay the $279,000 in principal and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. on loans the company made to him. Company proceeds from the IPO, the prospectus reported, will be used to repay part of the outstanding advances (which totaled more than $11 million as of May 31) from the firm's factors. Another $500,000 will be slated to equip a sewing plant in Central California Central California can refer to one of several divisions or regions of the U.S state of California:
Judie Gaillard, editor of the Scottsdale, Ariz.-based trade magazine Swim Fashion Quarterly, told the Business Journal that Beach Patrol is "one of the leaders in the use of design and in cutting-edge fashion and fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. ." "They're among the top five U.S. swimwear manufacturers This is a list of manufacturers and designers of swimsuits. Specialist swimwear manufacturers:
According to the Beach Patrol's prospectus, the company sells to more than 1,600 retailers which together represent more than 7,000 stores throughout the U.S. These include May Department Stores The May Department Stores Company was a department store chain founded in 1877 by David May in Leadville, Colorado. Its headquarters moved to St. Louis, Missouri in 1905, and the company went public in 1911. Co. (Robinsons/May), Nordstrom Inc., R.H. Macy & Co. Inc. and Federated Connected and treated as one. See federated database and federated directories. Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. (Bloomingdale's and Burdine's). The firm's inventory is also channeled through catalog operations such as Victoria's Secret. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight have risen from about $8.5 million in fiscal 1988 to more than $37.2 million in fiscal 1993. Beach Patrol reported that for the 12 months ended June 30, 1993, its net income exceeded $1.5 million. For the nine months ended March 31, it reported net income of more than $2.3 million on net sales exceeding $33.7 million. Company officials have outlined a five-fold growth strategy to further boost revenues via current distribution channels, through new brands and products, by targeting new buyers (such as men and young girls), by expanding international distribution, and through plant investment - which would cut reliance on sewing contractors. Right now, 16 contractors sew all of the company's products; five account for 67 percent of all business. Cutting and packaging operations are done at the firm's 85,000-square-foot manufacturing plant in Carson. The plant, stated company officials, can accommodate output of more than 4 million swimsuits a year (it produced more than 2 million in fiscal 1993). Beach Patrol officials reported a $4.5 million backlog of unfilled orders at May 31. One year earlier, the backlog was $3.3 million. Backlogs, they stated, are extremely variable throughout the year, though typically highest in the first calendar quarter. At May 31, Beach Patrol had about 180 full- and part-time employees. It plans to hire up to 250 more workers for its new sewing facility in Hanford. |
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