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   Non-TechThe Source Information Mgmt Co.(SORC)


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To: JanyBlueEyes who wrote (80)9/3/1998 5:30:00 PM
From: Tensane 1
   of 121
 
Jane,

Yet another great quarter for a very low key company that IMO is very well run and continues to show accelerating growth. Why is this company still selling in the mid 5's is beyond me. I'm sure that the overall market situation may have something to do with it. Great news on the Eckerd deal. I live in Florida and they are putting up new stores everywhere. Correct me if I'm wrong, but doesn't JC Penney now own Eckerd's now? You would think that JC Penney could become another potential customer. At present, I don't own any stock in SORC but still watch it, and like the company, I sold to buy more CCSI at the $14 level. Not looking like a good move, but I still feel CCSI will pay us in the long run, I'm still a believer.

Kevin

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To: Tensane 1 who wrote (81)9/3/1998 10:25:00 PM
From: JanyBlueEyes
   of 121
 
Eckerd

Eckerd is the latest in a long list of major clients for SORC. JC Penney Co did acquire Eckerd (as shown below).

From Eckerd's latest 10K:

...At February 1, 1997, the Eckerd chain consisted of 1,756 stores in 13 states located primarily in the Sunbelt. Over its 44-year history, the Eckerd drugstore chain has built a strong market position in areas where demographic characteristics are favorable to drugstore growth. Eckerd stores are concentrated in 10 of the 12 metropolitan statistical areas with the largest percentage growth in population from 1980 to 1990, and, according to industry sources, ranks first or second in terms of drugstore sales in 20 of the major metropolitan markets in which it operates.....

....The Company was formed by J. C. Penney Company, Inc. ("JCPenney") in 1996 for the purpose of acquiring the former Eckerd Corporation ("Old Eckerd") in a transaction effected through a cash tender offer of $35.00 per share for 50.1% of Old Eckerd's outstanding common stock (which was completed in December 1996), followed by a second step merger completed on February 27, 1997 in which Old Eckerd stockholders received 0.6604 shares of JCPenney common stock for each remaining share of Old Eckerd common stock not purchased in the tender offer
(the "Acquisition")......

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To: JanyBlueEyes who wrote (82)11/19/1998 10:28:00 PM
From: JanyBlueEyes
   of 121
 
News - Acquisitions & Incresased Revenues

The Source Information Management Co. Announces Plans to Acquire Two Front-end Fixture Manufacturers; Company Expects Revenues Will Expand More Than 230 Percent

ST. LOUIS--(BUSINESS WIRE)--Nov. 19, 1998--The Source Information Management Company (NASD: SORC) announced today that it has signed letters of intent to acquire the assets of two leading front-end fixture manufacturers and their affiliates, whose combined business is believed to represent more than one-third of the total front-end manufacturing industry.

Source expects to complete acquisition of MYCO, Inc., and its real estate holding company, RY, Inc., in Rockford, Ill., on Jan. 7, 1999, and Chestnut Display Systems, Inc., and Chestnut Display Systems-North, Inc., out of Jacksonville, Fla., on or around Feb. 1, 1999. The acquisitions are subject to negotiation of definitive agreements, due diligence and other customary conditions.

Source plans to acquire the assets of both companies and their affiliates for $16.25 million cash and approximately $4.5 million in stock.

Combined revenues of the companies, including Source, are expected to be in excess of $50 million by Jan. 31, 2000, with anticipation that these acquisitions will be accretive to earnings.


MYCO and its real estate affiliate employ some 180 people. Chestnut Display and Chestnut Display-North employ 106 people. Management is expected to continue working at both companies. Included in the MYCO acquisition is a 350,000 square-foot manufacturing facility in Rockford, Ill. Source also will lease two manufacturing facilities as part of its Chestnut Display acquisitions, one in Greenville, S.C., and the other in Jacksonville, Fla. Source also will assume all specified liabilities.

"The management at Source is very excited about the acquisition of these leading fixture manufacturers," said S. Leslie Flegel, chairman and chief executive officer. "Currently, Source provides a valuable information management product called SourcePro that helps retailers maximize the value of merchandise sold in the front-end area. With the addition of these companies, Source is essentially vertically integrated in the front-end management business.

That integration allows us to rely on ourselves to create the fixtures that best serve vendors who place merchandise at the check-out, as well as our retailers."

Flegel continued: "The acquisition also offers wonderful possibilities for our new on-line Interactive Communications Network, or ICN. Currently, ICN helps retailers ensure magazine bar code accuracy using a streamlined Internet encrypted site, while providing publishers with an effective tool to market new titles or special issues. Now, with the acquisition of MYCO and Chestnut Display, we can expand the reach of ICN to vendors like Wrigley, Gillette, Kodak and others, who display their merchandise at the front-end. We see no end to the myriad ways we can integrate our new manufacturing business with ICN, our latest innovative product."

The Source Information Management Company (NASD: SORC) provides front-end rebate collection and information services to approximately 825 retailers in the United States and Canada via nine offices throughout the continent. Through continued growth and expansion, including merger or acquisition of eight companies since its formation in 1995, Source now serves approximately 75 percent of the magazine industry. The company's innovative technology and systems have enabled an expansion of its core retail display allowance business, bringing to the market both front-end management and interactive communications
between publishers and retailers. With the acquisition of MYCO, Inc., and Chestnut Display, Inc., Source now provides front-end fixture manufacturing services.

SAFE HARBOR STATEMENT:

The information contained in this release includes statements regarding matters which are not historical facts (including statements regarding the plans, beliefs or expectations of The Source Information
Management Company) which are forward-looking statements.......

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To: JanyBlueEyes who wrote (83)12/2/1998 11:03:00 PM
From: JanyBlueEyes
   of 121
 
News - Acquisition

The Source Information Management Company Announces Plans to Acquire Its Third Front-End Fixture Company

ST. LOUIS--(BUSINESS WIRE)--Dec. 2, 1998--The Source Information Management Company (NASD:SORC) announced today that it has signed a letter of intent to acquire the assets and assume the liabilities of another front-end fixture company.

This follows the Company's November 19th announcement of its letters of intent to acquire MYCO, Inc. and Chestnut Display Systems, Inc. Source expects to complete acquisition of Yeager Industries, Inc., a $7 million in sales Company located in Philadelphia, Pennsylvania, by January 15, 1999. This acquisition compliments the planned acquisitions of MYCO in Rockford, Illinois and Chestnut in Jacksonville, Florida and Greenville, South Carolina by adding a modern facility in the northeast. As in the case with MYCO and Chestnut, the acquisition is subject to negotiation of definitive agreements, due diligence and other customary conditions.

Source plans to acquire the assets of the company for approximately $500,000 cash and 142,860 shares of stock. Combined revenues of the four companies, including Source, are expected to be in excess of $55 million for the year ending January 31, 2000, with anticipation that these acquisitions will be accretive to earnings.

Yeager employs approximately 114 people. Management is expected to continue working at the company. Included in the acquisition is a 120,000 square-foot manufacturing facility in Philadelphia, Pennsylvania which is equipped with state of the art robotic welders and programmable wire bending equipment.

"We anticipate that the acquisition of Yeager, along with MYCO and Chestnut, will enhance our front-end management capability and expand the reach of our most exciting Internet product, Interactive Communications Network, or ICN, to vendors who display their merchandise at the front-end," said S. Leslie Flegel, chairman and chief executive officer. "ICN is potentially one of the most significant category management tools offered to retailers and is currently actively used by many of the Source's largest retail clients such as Kmart, 7-11, A & P and W.H. Smith. There are multiple uses for the Source Internet network which provides unique marketing opportunities for the targeted users including the publishing community and other vendors who display products at the checkouts in mass market retail outlets. A critical element has been added to ICN that communicates buying activity instantaneously via e-mail to all members of the manufacturing and distribution channels."

The Source Information Management Company (NASD: SORC) provides front-end rebate collection and information services to approximately 825 retailers in the United States and Canada via nine officesthroughout the continent. The company's innovative technology and systems have enabled an expansion of its core retail display allowance business, bringing to the market both front-end management and interactive communications between vendors and retailers. With the planned acquisitions of MYCO, Inc., Chestnut Display, Inc., and Yeager Industries, Inc., Source will provide front-end fixture manufacturing, thus expanding service capabilities to its retailer and vendor clients.

SAFE HARBOR STATEMENT:
The information contained in this release includes statements regarding matters which are not historical facts (including statements regarding the plans, beliefs or expectations of The Source Information Management Company) which are forward-looking statements.......

CONTACT: The Source Information Management Company
W. Brian Rodgers
Chief Financial Officer
314-995-9040
sorc-info.com

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To: JanyBlueEyes who wrote (84)12/10/1998 4:18:00 PM
From: JanyBlueEyes
   of 121
 
Third-Quarter Earnings

The Source Information Management Company Announces Third-Quarter Earnings

ST. LOUIS--(BUSINESS WIRE)--Dec. 10, 1998--The Source Information
Management Company (NASDAQ:SORC) today announced its earnings for the
third quarter.

Net income for the nine months ended October 31, 1998, was $2,476,421,
a 156% increase over the nine months ended October 31, 1997. Net
income for the quarter ended October 31, 1998, was $959,006, a 154%
increase over the quarter ended October 31, 1997.

Quarter Ended Oct. 31, 1998 Oct. 31, 1997

Revenues $3,960,409 $2,943,766
Net Income 959,006 377,256
Avg. Shares:
Basic 9,586,239 6,535,980
Diluted 10,030,461 6,724,638
Earnings per Share:
Basic .10 .06
Diluted .10 .06

Nine Months Ended

Revenues $11,136,199 $8,411,782
Net Income 2,476,421 966,809
Avg. Shares:
Basic 8,783,125 6,064,476
Diluted 9,247,799 6,147,243
Earnings per Share:
Basic .28 .14
Diluted .27 .14

Condensed Summary Balance Sheet at October 31, 1998

Current Assets $28,793,496
Non-current Assets 6,665,064
Total Assets 35,458,560

Current Liabilities 7,161,039
Non-current Liabilities 5,074,625

Total Liabilities 12,235,664

Equity $23,222,896

SAFE HARBOR STATEMENT

The information contained in this release includes statements
regarding matters which are not historical facts (including statements
regarding the plans, beliefs or expectations of The Source Information
Management Company) which are forward-looking statements......

CONTACT: The Source Information Management Company
W. Brian Rodgers, 314/995-9040

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To: JanyBlueEyes who wrote (85)12/15/1998 10:08:00 PM
From: JanyBlueEyes
   of 121
 
News: Acquisition

The Source Information Management Company Announces Plans to Acquire Brand Manufacturing Corp. and Affiliated Companies

ST. LOUIS--(BUSINESS WIRE)--Dec. 15, 1998--The Source Information Management Company (NASD:SORC) today announced the signing of a binding letter of intent to acquire Brand Manufacturing Corp. ("Brand") and affiliated companies ("Affiliates"), a New York-based front-end marketing and manufacturing company.

Brand and Affiliates will be acquired for 3.4 million shares of Source's common stock, with a portion of said shares being issuable only upon shareholder approval. All shares issued pursuant to this transaction will be subject to a one-year lockup agreement with the Company and a two-year voting agreement in favor of Leslie Flegel to vote on election of directors and certain other matters; the agreement will be earlier terminated if the seller holds less than 10% of the outstanding common stock of the Company. Furthermore, the current composition of the Board of Directors will remain intact.

This follows the Company's December 2nd announcement of its letter of intent to acquire Yeager Industries, Inc. and its November 19th announcement of its letter of intent to acquire MYCO, Inc. and Chestnut Display Systems, Inc. As is the case with the previously announced transactions, this acquisition is subject to negotiation of definitive agreements, due diligence and other customary conditions.

Brand and Affiliates achieved revenues of approximately $19.6 million for the fiscal year ended March 31, 1998, with EBITDA of approximately $5.6 million for the same period. Results of the fiscal year ending March 31, 1999, are expected to equal or exceed the results of fiscal 1998.

Brand is a New York-based company servicing AHOLD Group, Kroger, Winn Dixie and other large- and mid-sized retail companies. The Affiliates include Vail Salvage Co., which contracts the removal of old fixtures and T.C.E. Corp., which is an in-house trucking company shipping fixtures throughout the United States.

Current forecasts indicate that Brand has overbooked its current capacity and the Source will now have the opportunity to utilize the other facilities to be purchased. While not a large percentage of the total wire manufacturing industry, this acquisition, combined with the previously announced acquisitions, is a significant factor in the manufacturing and positioning of front-end fixtures.

The combined revenues of the previously announced acquisitions, along with Brand and Affiliates, approximates $60 million, creating a critical mass of the annual $100 million front-end manufacturing sector. These acquisitions are expected to be accretive to earnings for the fiscal year ended January 31, 2000.

The Source Company, on a consolidated basis, is anticipating revenues for the fiscal year ending January 31, 2000, of approximately $75 million to $80 million, in excess of 700 employees and total assets in excess of $70 million.

Leslie Flegel, Chairman of the Board and Chief Executive Officer of the Source Company, stated: "This acquisition, combined with the previously announced acquisitions, completes the circle of providing our retail clients virtually all necessary decision-making information related to optimizing front-end merchandising, gathering information on product movement within the front-end, and ultimately providing the ability to custom manufacture these fixtures.

The vendor relationships of these acquired companies expands well beyond Source's historical base of magazine publishers. The ability to obtain this information now provides the retailers and all vendors at the front-end, the ability to communicate directly on Source's Interactive Communications Network ("ICN") platform.

In addition, Jim Gillis, Chief Executive Officer of Brand, will, upon closing, assume the position of President of The Source. Jim's background includes 15 years of experience in the front-end management and consumer product marketing industries and was a critical factor in the Source acquisition of Brand. Jim will be responsible for the integration of the four manufacturing companies acquired, as well as integrating and accessing the data into the Source's existing information management system. Jim will report to Bill Lee, who will now assume the title of Vice Chairman while remaining as Chief Operating Officer."

The Source Information Management Company (NASD:SORC) provides front-end rebate collection and information services to approximately 825 retailers in the United States and Canada via nine offices throughout the continent. The company's innovative technology and systems have enabled an expansion of its core retail display allowance business, bringing to the market both front-end management and interactive communications between vendors and retailers. With the planned acquisitions of MYCO, Inc., Chestnut Display, Inc., Yeager Industries, Inc. and Brand and Affiliates, Source will provide front-end fixture manufacturing, thus expanding service capabilities to its retailer and vendor clients.

Safe Harbor Statement

The information contained in this release includes statements regarding matters which are not historical facts (including statements regarding the plans, beliefs or expectations of The Source Information Management Company) which are forward-looking statements....

CONTACT: The Source Information Management Company
W. Brian Rodgers, 314/995-9040

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To: JanyBlueEyes who wrote (86)12/20/1998 5:49:00 PM
From: Sergio H
   of 121
 
Janybird, Donald & Co. issued updated research on SORC on Nov. 23rd setting a price target of $12/share and raised the stock to "strong buy" from "buy"

Have you seen the report and if by any chance you have it available...could you post it or e-mail to me?

Muchas Gracias,

Amigo Sergio

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To: Sergio H who wrote (87)12/21/1998 9:04:00 PM
From: Ken W
   of 121
 
Sergio,

Okay so we are researching, or at least looking into SORC...
One source I've found places a low 13 target on SORC based on forward looking earnings of .52 for next year. Presently the stock is trading at a slight premium vs trailing earnings with a PE of 16.

Current rank to its industry is 70 with 99 being the best and has been as high as 89 in the first Q.

Growth rate is placed at 38% by some research, others say 40% over the next year.

More?

Ken

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To: Ken W who wrote (88)12/21/1998 11:26:00 PM
From: Sergio H
   of 121
 
Just the tip of the iceberg Ken. Let's do the Amigo thing on SORC and see what we come up with....shall we?

Amigo Sergio

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To: Sergio H who wrote (89)12/21/1998 11:38:00 PM
From: Ken W
   of 121
 
Sergio,

The Amigo thing...gotta ya.

SORC: Institutions own 13% and have been buying more over the last 3 months. Retail has been nearly matching that of the institutions.

Insiders (Katzman) has been buying here and there over the last few months too in the 5 to 6 range.

SORC has out performed the s & p over the last year buy a considerable percentage. Relative to the industry, SORC has outperformed and is expected to grow at a faster rate than the others and yet is trading at a PE discount.

I'll nail down the real numbers and give the company a call.
I want to talk with them about the buyout of Brand and what it is expected to bring to the co.

Ken

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