PROACTIVE FINANCE GROUP, LLC TO PURCHASE BFGOODRICH'S REMAINING INTEREST
IN DTM Corporation
(PR Newswire; 01/11/99)
Agreement Approved by DTM Board of Directors
AUSTIN, Texas, Jan. 11 /PRNewswire/ -- DTM Corporation (Nasdaq: DTMC)
announced today that its Board of Directors has approved the purchase of
3,157,190 shares of its common stock by Proactive Finance Group, LLC from
its controlling shareholder, The BFGoodrich Company (NYSE: GR). BFGoodrich
and Proactive have entered into an agreement for Proactive to purchase
BFGoodrich's shares of DTM common stock and a $907,000 receivable due to
BFG from DTM. Financial terms of the transaction have not been publicly
disclosed. The sale remains contingent on Proactive's receipt of financing,
as well as other customary conditions. The sale is expected to be completed
in February. Since the time of DTM's initial public offering in May 1997,
BFGoodrich has indicated that its investment in DTM was not strategic and
that it intended to sell its remaining interest at some point.
Effective upon the sale of the shares to Proactive, the BFGoodrich
executives who are members of DTM's Board of Directors, Les C. Vinney,
Robert D. Koney Jr. and Marshall 0. Larsen, will resign. Three persons
nominated by Proactive, Anthony Mariotti, Samuel A. Myers and Larry
Goldstein, have been appointed to fill the resulting vacancies.
Anthony Mariotti, a Proactive Principal, stated, "We support management's
plan for future growth and we believe that many of the elements for
successful operations are in place. We intend to help position DTM to
enhance shareholder value."*
John Murchison, III, DTM's President and CEO, stated, "The management of
DTM looks forward to working with a more entrepreneurial investor like
Proactive. Proactive's investment in DTM comes at a time when we believe
that we are beginning to see improved operating conditions. While results
are not yet finalized, we believe that we met our goals and achieved a
profit in the fourth quarter. This would be DTM's first quarterly net
income. We also believe that top line growth was achieved for the quarter
and the year. While much work still must be done and many risks remain,
this would represent three consecutive quarters of revenue growth on a year
over year basis. The Sinterstation Model 2500plus, our new and improved
selective laser sintering system, enhanced our fourth quarter gross
margins. Substantially all fourth quarter products sales were of products
that we were not selling a year ago."*
Since BFGoodrich will no longer provide its guarantee after the purchase of
its shares by Proactive, DTM must replace its current $2.0 million bank
credit line.
This new credit line, if available, is expected to bear higher costs. At
this time there is no balance outstanding on DTM's bank line of credit.
However, DTM borrowed and repaid $1.3 million in the fourth quarter.
Additionally, the $907,000 owed to BFGoodrich that is to be acquired by
Proactive is currently non-interest bearing. Proactive has indicated to DTM
that upon closing of the transaction it intends to formalize this balance
into interest bearing debt.
Proactive Finance Group, LLC is a privately held financial services and
investment firm based in Austin, Texas.
The BFGoodrich Company provides aircraft systems and services and
manufactures performance materials that are sold to customers worldwide and
used in thousands of consumer and industrial products.
DTM Corporation develops, manufactures and markets the Sinterstation(R)
family of rapid prototyping products for application in the rapid
manufacturing marketplace. The Sinterstation(R) systems, and materials are
based on proprietary and patented SLS(R) selective laser sintering
technology. The Company's products are used to accelerate the design,
development and market introduction of products in an expanding range of
industries.
*The market statements are forward looking statements that involve risks
and uncertainties that could cause actual results to differ materially.
Such statements are subject to certain risks and uncertainties that could
cause actual results to differ materially and adversely from those set
forth in the forward-looking statements, including, without limitation:
-- DTM has been unprofitable since inception; -- The Company's current
stock price and public float could cause its stock to be delisted from the
Nasdaq National Market, further reducing liquidity;
-- Additional capital sufficient to finance the business may not be
available or if available might cause significant dilution;
-- Quarterly fluctuations in operating results and the difficulty in
predicting results of operations may adversely affect stock prices;
-- DTM may not emerge as a market leader, or even a major market
participant and its markets may not develop;
-- The shareholder class action litigation pending against the Company;
-- Price reductions, reduced margins and loss of market share may occur as
a result of increasing competition;
-- The Company's dependence on a single product that is priced at the high
end of the range for today's rapid prototyping products has caused it to be
adversely affected in a soft market; -- The Company's intellectual property
and proprietary rights may not be valid or infringe the rights of others;
-- DTM may fail to manage or experience future growth;
-- Key personnel may leave; -- Suppliers may cause disruptions; -- DTM has
significant international operations with the inherent exposures; --
Actions by controlling shareholder could adversely affect stock prices; --
Potential liabilities resulting from undetected errors or defects in
Company products; -- Possible issuance of preferred stock could adversely
affect common shareholders;
-- Sales of a large block of stock and sales of shares issuable pursuant
to employee stock options could adversely affect stock prices; and
-- The Company's stock price could be volatile, regardless of DTM's
financial performance.
The Company cautions that the foregoing list of important factors is not
exclusive. The Company does not undertake to update any written or oral
forward-looking statement that may be made from time to time by or on
behalf of the Company.
SLS(R) and Sinterstation(R) are registered trademarks of DTM.
For more information, contact:
DTM Corporation
1611 Headway Circle, Building 2, Austin, TX, USA 78754
Phone 512-339-2922; Fax 512-339-0634
BFGoodrich
Media: Rob Jewell, 330-659-7999
Investors: John Bingle, 330-659-7788
Proactive Finance Group, LLC
Anthony Mariotti, 512-481-1495
SOURCE DTM Corporation
-0- 01/11/99 /CONTACT: Geoff Kreiger of DTM Corporation, 512-339-2922, or
fax, 512-339-0634; or media, Rob Jewell, 330-659- 7999, or investors, John
Bingle, 330-659-7788, both of BFGoodrich Company; or Anthony Mariotti of
Proactive Finance Group, LLC, 512-481-1495/
/Photo: http://www.newscom.com/cgi-bin/prnh/19980805/DAW047 or NewsCom,
213- 237-5431/
/Web site: http://www.dtm-corp.com/ (DTMC GR) CO: DTM Corporation;
BFGoodrich Company; Proactive Finance Group,
LLC ST: Texas, Ohio IN: FIN AIR SU: TNM
{PRNewswire:WallStreet-0111.04054} 01/11/99
For more information about the rp-ml, see http://ltk.hut.fi/rp-ml/
This archive was generated by hypermail 2.1.2 : Tue Jun 05 2001 - 22:50:44 EEST