This may be good for CREE Dig. Billboards
To: Jon Koplik who wrote (68273)
From: Gregory Mullineaux
Thursday, Mar 2, 2000 1:50 PM ET
Reply # of 68298
Well we have company ready to go with sat billboards. How timely. <<Next
Generation, Digital Billboard Creator, Files $115 Mln IPO
Washington, Mar. 2 (Bloomberg) -- Next Generation Network Inc., a company that
develops digital billboards, filed with the Securities and Exchange Commission for a
$115 million initial stock offering.
The Minneapolis-based company creates what it calls E*Billboards which are
connected to a central hub in Minneapolis that can manage and transmit advertising.
The advertising can be targeted and changed quickly from the central location to fit
various demographics and localities, the company said.
Next Generation has more than 5,000 sites operating and has secured the right to
another 5,000 sites, the company said in its filing. About 1,300 of the sites are in New
York City, with another 578 in Los Angeles and 519 in Washington D.C., as well as
others in San Francisco, Boston, Dallas, Miami, and other large metro areas.
The billboards will be placed in high traffic areas such as movie theaters, fast food
restaurants, gas stations, pharmacies, and convenience stores. The company said
these locations aren't inconvenienced by local and state restrictions on zoning and
advertising.
Next Generation, founded by Thomas Pugliese, 37, chief executive, and Gerard
Joyce, 48, president, has established agreements with 7-Eleven, Inc. and the New
Jersey Transit Authority, along with Otis Elevator Co. United Technologies Corp.,
Otis' parent company, has made a $30 million investment in Next Generation, the
filing said.
Susan Molinari, 41, a Republican member of the House from New York between
1990 to 1997 and a former host of the CBS Morning Show, is a director, and owns
4,000 Next Generation shares, according to the filing. Joyce owns a 19.2 percent
stake in the company before the offering, and Pugliese owns a 8.4 percent stake.
Before founding Next Generation, Joyce was the chief executive of Patrick Media
Group, Inc., and Pugliese was president of Thomas More & Co., an investment
banking firm, as well as serving in various positions with Shearson, Lehman, Hutton
Inc.
Net Loss
In the fiscal year ending Dec. 31, Next Generation reported a loss of about $33
million on revenue of $5.5 million. For 1998, the company had a net loss of $22.2
million on revenue of about $2.6 million. The company said it had accumulated a
deficit of $68 million.
The company said it plans to use the net proceeds for general corporate purposes,
including working capital and capital expenditures, including $30 million for the
purchase and installation of new billboards.
Next Generation didn't say how many shares it would offer or list a share price. That's
usually revealed in a subsequent filing, and the $115 million was listed to calculate the
registration fee.
Credit Suisse First Boston, Banc of America Securities LLC, CIBC World Markets,
and Friedman Billings Ramsey, were hired to underwrite the stock sale, the filing said.
Next Generation plans to trade on the Nasdaq Stock Market on an as yet unnamed
stock ticker.
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