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CAPITALIZATION
The following table sets forth the Company's cash and capitalization as of
September 30, 1999:
- on an actual basis; and
- on a pro forma basis after giving effect to the following:
-- the contribution from Daisytek of $20,000 for 14,305,000 shares of
our common stock;
-- the reclassification of Daisytek's net equity investment as common
stock and additional paid-in capital; and
-- the issuance of 3,100,000 shares of common stock in this offering,
assuming an initial public offering price of $17.00 per common share,
and the application of approximately $22.3 million of the estimated
$46.1 million net proceeds (including $466,000 of deferred offering
costs that have already been paid as of September 30, 1999) to repay
the payable to Daisytek.
This table should be read in conjunction with "Use of Proceeds," "Selected
Combined Historical and Pro Forma Financial Data," the "Combined Financial
Statements" and related notes, and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" included elsewhere in this
prospectus.
AS OF SEPTEMBER 30, 1999
---------------------------------
ACTUAL PRO FORMA
------ ---------
(IN THOUSANDS, EXCEPT SHARE DATA)
Cash........................................................ $ 1,247 $25,525
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Payable to Daisytek......................................... $22,319 $ --
Shareholders' Equity:
Preferred stock, $1.00 par value; 1,000,000 shares
authorized, none issued and outstanding.............. -- --
Common stock, $0.001 par value; 40,000,000 shares
authorized; 17,405,000 shares issued and outstanding
(pro forma).......................................... -- 17
Additional paid-in capital............................. -- 46,053
Daisytek's net equity investment....................... (61) --
Accumulated other comprehensive income................. (177) (177)
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Total shareholders' equity (deficit).............. (238) 45,893
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Total capitalization.............................. $22,081 $45,893
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