<PAGE> 1
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 28, 1997
REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
---------------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------------
HUGHES SUPPLY, INC.
(Exact Name of Registrant as Specified in Its Charter)
---------------------
<TABLE>
<C> <C>
FLORIDA 59-0559446
(State or Other Jurisdiction of Incorporation or (I.R.S. Employer Identification Number)
Organization)
</TABLE>
20 NORTH ORANGE AVENUE
SUITE 200
ORLANDO, FLORIDA 32801
(407) 841-4755
(Address, Including Zip Code, and Telephone Number, Including Area Code, of
Registrant's Principal Executive Offices)
---------------------
J. STEPHEN ZEPF
TREASURER AND CHIEF FINANCIAL OFFICER
HUGHES SUPPLY, INC.
20 NORTH ORANGE AVENUE
SUITE 200
ORLANDO, FLORIDA 32801
(407) 841-4755
(Name, Address, Including Zip Code, and Telephone Number of Agent for Service)
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COPIES OF COMMUNICATIONS TO:
G. WILLIAM SPEER, ESQ.
MARK A. LOEFFLER, ESQ.
POWELL, GOLDSTEIN, FRAZER & MURPHY LLP
SIXTEENTH FLOOR
191 PEACHTREE STREET, N.E.
ATLANTA, GEORGIA 30303
(404) 572-6600
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time following the effective date of this Registration Statement.
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If any of the securities being registered on this form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, as amended (the "Securities Act"), other than securities offered only in
connection with dividend or interest reinvestment plans, check the following
box. [X]
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]
If this form is a post-effective amendment filed pursuant to Rule 462(b)
under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration
statement for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]
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CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
=============================================================================================================================
PROPOSED PROPOSED
AMOUNT MAXIMUM MAXIMUM AMOUNT OF
TITLE OF SECURITIES TO BE AGGREGATE PRICE AGGREGATE REGISTRATION
TO BE REGISTERED REGISTERED PER SHARE(1) OFFERING PRICE(1) FEE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock par value $1.00 per share....... 188,154 shares $37.875 $7,126,333 $2,159.50
- -----------------------------------------------------------------------------------------------------------------------------
Rights to purchase Series A Junior
Participating Preferred Stock, no par value
per share.................................. 188,154 rights N/A N/A $100(2)
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</TABLE>
(1) Estimated solely for the purpose of determining the registration fee and
calculated in accordance with Rule 457(c) under the Securities Act on the
basis of the last reported sale price of the Company's Common Stock on May
27, 1997, as reported by the New York Stock Exchange.
(2) The rights to purchase the Series A Junior Participating Preferred Stock
will be attached to and traded with shares of the Company's Common Stock.
Value attributable to such rights, if any, will be reflected in the market
price of the shares of the Company's Common Stock. The fee paid represents
the minimum statutory fee pursuant to Section 6(b) of the Securities Act.
---------------------
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION ACTING PURSUANT TO SAID SECTION 8(A),
MAY DETERMINE.
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<PAGE> 2
PROSPECTUS
188,154 SHARES
HUGHES SUPPLY, INC.
COMMON STOCK
---------------------
This prospectus (this "Prospectus") relates to the offering by the selling
shareholders named herein (the "Selling Shareholders") of up to an aggregate of
188,154 shares of Common Stock, par value $1.00 per share (the "Common Stock"),
of Hughes Supply, Inc., a Florida corporation ("Hughes Supply" or the
"Company"), consisting of: (i) 50 shares of Common Stock (the "Gayle Shares")
issued pursuant to the Acquisition Agreement (the "Gayle Agreement") dated May
1, 1996 by and among the Company, Gayle Supply Company, Inc., an Alabama
corporation ("Gayle Supply"), and the shareholders of Gayle Supply; (ii) 4,414
shares of Common Stock (the "CWI Shares") issued pursuant to the Acquisition
Agreement (the "CWI Agreement") dated November 5, 1996 by and among the Company,
Coastal Wholesale, Inc., a Florida corporation ("CWI"), and the shareholders of
CWI; (iii) 24,791 shares of Common Stock (the "WES Shares") issued pursuant to
the Acquisition Agreement (the "WES Agreement") dated December 2, 1996 by and
among the Company, Wholesale Electric Supply Corporation, a New York corporation
("WES"), and the shareholder of WES; (iv) 15,926 shares of Common Stock (the
"PPSC Shares") issued pursuant to the Acquisition Agreement (the "PPSC
Agreement") dated December 11, 1996 by and among the Company, Panhandle Pipe and
Supply Co., Inc. a West Virginia corporation ("PPSC"), and the shareholders of
PPSC; (v) 53,110 shares of Common Stock (the "Sunbelt Shares") issued pursuant
to the Acquisition Agreement (the "Sunbelt Agreement") dated December 30, 1996
by and among the Company, Sunbelt Supply Co., a Texas corporation ("Sunbelt"),
and the shareholders of Sunbelt; (vi) 42,650 shares of Common Stock (the "Metals
Shares") issued pursuant to the Acquisition Agreement (the "Metals Agreement")
dated January 24, 1997 by and among the Company, Metals, Incorporated, Stainless
Tubular Products, Inc., Metals, Inc. - Gulf Coast Division, each an Oklahoma
corporation (collectively, the "Metals Group"), and the shareholders of the
Metals Group; and (vii) 47,213 shares of Common Stock (the "Gulf Pool Shares")
issued pursuant to the Asset Purchase Agreement (the "Gulf Pool Agreement")
dated February 10, 1997 by and among the Company, Gulf Pool Equipment Co., a
Texas corporation ("Gulf Pool"), Gulf Pool Holding Company, Inc., a Texas
corporation ("GPH"), and Dennis E. Tottenham. The Gayle Shares, the CWI Shares,
the WES Shares, the PPSC Shares, the Sunbelt Shares, the Metals Shares and the
Gulf Pool Shares are collectively referred to herein as the "Shares."
The Shares, when sold, will be sold by and for the account of the Selling
Shareholders. The Company will not receive any proceeds from the sale of the
Shares by the Selling Shareholders. See "Use of Proceeds." The Company's Common
Stock is listed on the New York Stock Exchange, Inc. (the "NYSE") under the
symbol "HUG." On May 27, 1997, the last sale price for the Common Stock as
reported on the NYSE was $37.875 per share.
All expenses relating to the distribution of the Shares shall be borne by
the Company, other than selling commissions and fees and expenses of counsel and
other representatives of the Selling Shareholders. See "Plan of Distribution."
SEE "RISK FACTORS" BEGINNING ON PAGE 8 OF THIS PROSPECTUS FOR A DISCUSSION
OF CERTAIN FACTORS THAT SHOULD BE CONSIDERED IN EVALUATING AN INVESTMENT IN THE
COMMON STOCK OFFERED HEREBY.
---------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
---------------------
The Company has been advised by the Selling Shareholders that the Selling
Shareholders, acting as principals for their own accounts, directly, through
agents designated from time to time, or to or through broker-dealers or
underwriters also to be designated, may sell all or a portion of the Shares
offered hereby from time to time on terms to be determined at the time of sale.
The aggregate proceeds to the Selling Shareholders from the sale of the Shares
sold by the Selling Shareholders pursuant to this Prospectus will be the
purchase price of such shares less any commissions. See "Plan of Distribution."
Any broker-dealers, agents or underwriters that participate with the
Selling Shareholders in the distribution of the Shares may be deemed
"underwriters" within the meaning of the Securities Act of 1933, as amended (the
"Securities Act"), in which event any commissions received by such
broker-dealers, agents or underwriters and any profit on the resale of the
Shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act.
---------------------
The date of this Prospectus is May , 1997.
<PAGE> 3
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and, in accordance
therewith, files reports, proxy statements and other information with the
Securities and Exchange Commission (the "Commission"). Such reports, proxy
statements and other information can be inspected and copied at the public
reference facilities maintained by the Commission at Judiciary Plaza, 450 Fifth
Street, N.W., Room 1024, Washington, D.C. 20549-1104, and at the following
regional offices of the Commission: New York Regional Office, Seven World Trade
Center, 13th Floor, New York, New York 10048; and Chicago Regional Office,
Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661.
Copies of such material can also be obtained from the Public Reference Section
of the Commission at prescribed rates at the principal office of the Commission
at 450 Fifth Street, N.W., Washington, D.C. 20549. The Commission maintains a
World Wide Web site at http://www.sec.gov. containing reports, proxy and
information statements and other information regarding registrants, including
the Company, that file electronically with the Commission. In addition, the
Common Stock of the Company is traded on the NYSE, and such reports, proxy
statements and other information concerning the Company can also be inspected at
the offices of the NYSE, Room 401, 20 Broad Street, New York, New York 10005.
The right to purchase one one-hundredth of a share of the Company's Series
A Junior Participating Preferred Stock, no par value per share (collectively,
"Rights"), is attached to each share of Common Stock, including each share of
Common Stock offered hereby. Any reference in this Prospectus to the Common
Stock shall include such Rights. This Prospectus, which constitutes part of the
Registration Statement on Form S-3 (Registration No. 333- ) (the
"Registration Statement") filed by the Company with the Commission under the
Securities Act, omits certain of the information contained in the Registration
Statement. Reference is hereby made to the Registration Statement and to the
exhibits relating thereto for further information with respect to the Company
and the securities offered hereby. This Prospectus does not contain all
information set forth in the Registration Statement. Certain parts of the
Registration Statement have been omitted in accordance with the rules and
regulations of the Commission. For further information, reference is made to the
Registration Statement which can be inspected at the public reference rooms at
the offices of the Commission.
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<PAGE> 4
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents or portions thereof, filed by the Company with the
Commission under the Exchange Act and the Securities Act, are incorporated
herein by reference:
(a) Hughes Supply's Annual Report on Form 10-K (File No. 001-08772)
for the year ended January 31, 1997;
(b) Hughes Supply's Proxy Statement for the Annual Meeting of
Shareholders held on May 20, 1997;
(c) Hughes Supply's Current Reports on Form 8-K, dated March 27, 1996,
May 13, 1996, October 10, 1996 and February 18, 1997; and
(d) Hughes Supply's Registration Statement on Form S-3 (File No.
333-21953), as filed with the Commission on February 18, 1997.
All documents subsequently filed by the Company pursuant to Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act prior to the termination of this offering
shall be deemed to be incorporated by reference in this Prospectus and to be a
part of this Prospectus from the date of filing thereof. Any statement contained
in a document incorporated by reference herein shall be deemed to be modified or
superseded for purposes of this Prospectus to the extent that a statement
contained herein or to any other subsequently filed document which also is or is
deemed to be incorporated by reference herein modifies or supersedes such
statement. Any such statements so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this Prospectus.
The Company hereby undertakes to provide without charge to each person to
whom a copy of this Prospectus has been delivered, upon the written or oral
request of any such person, a copy of any or all of the documents referred to
above which shall have been or may be incorporated in this Prospectus by
reference (not including exhibits to such information, unless such exhibits are
specifically incorporated by reference into such information). Requests for such
copies shall be directed to Hughes Supply, Inc., Attention: J. Stephen Zepf,
Treasurer and Chief Financial Officer, at 20 North Orange Avenue, Suite 200,
Orlando, Florida 32801, telephone (407) 841-4755.
3
<PAGE> 5
PROSPECTUS SUMMARY
The following summary is qualified in its entirety by the more detailed
information and the consolidated financial statements and related notes thereto
incorporated by reference in this Prospectus. As used in this Prospectus, unless
the context indicates otherwise, the terms "Company" and "Hughes Supply" mean
Hughes Supply, Inc., its subsidiaries and its predecessors. The Company's fiscal
year ends on the last Friday in January of each year.
THE COMPANY
Hughes Supply is one of the largest diversified wholesale distributors of
materials, equipment and supplies for the construction and industrial markets
operating primarily in the southeastern and midwestern United States. As of
January 31, 1997, the Company distributed more than 130,000 products through 272
branches located in 25 states and Puerto Rico. The Company's customers are
subcontractors, general contractors, utilities, municipalities and
manufacturers. Management believes that the Company holds a significant market
share in a majority of its local markets and is one of the largest distributors
of its range of products in the southeastern and midwestern United States. The
Company's largest geographic market is Florida (representing approximately 36%
of fiscal 1997 net sales), which is one of the largest commercial and
residential construction markets in the United States.
The products which the Company distributes are used in new construction for
commercial, residential, utility and industrial applications and for replacement
and renovation projects. Such products include materials and supplies associated
with the Company's nine major product groups as follows: electrical; plumbing;
water and sewer; air conditioning and heating; industrial pipe, valves and
fittings; building materials; electric utilities; water systems; and pool
equipment and supplies. Each product group is sold by the Company's own
specialized and experienced sales force consisting of outside sales
representatives and inside account executives. Management believes that the
Company's mix of commercial, residential, utility and industrial business,
geographic diversification and multiple product groups reduces the impact of
economic cycles on the Company's net sales and profitability. Management
believes that no other company competes against it across all of its product
groups.
The Company's principal business objective is to achieve profitable growth,
both internally and through selective acquisitions, primarily in existing and
contiguous geographic markets. The Company has grown internally through
increases in comparable branch net sales and new branch openings and the
addition of new product groups. Since January 29, 1993, the Company has opened
32 new branches (exclusive of new branches acquired through acquisitions). In
addition, the Company continues to pursue an active acquisition program as a
result of opportunities presented by the substantial size and highly fragmented
ownership structure of its industry. Based upon estimates available to the
Company, industry sales in the United States of products sold by the Company
exceeded $100 billion in 1996, and no wholesale distributor of these products
accounted for more than 2% of the total market. Since January 29, 1993, the
Company has completed 38 acquisitions representing 126 branches. In addition to
increased geographic penetration, acquisitions often provide opportunities for
the Company to gain market share and to enhance and diversify product offerings.
Management believes that the most cost effective way for the Company to enter
new geographic markets is through acquisitions. All of the Company's significant
acquisitions have been accretive to the Company's earnings per share.
The Company's acquisition strategy is to acquire profitable distribution
businesses with strong management and well-developed market positions and
customer franchises. Acquisitions can generally be categorized as fill-in
acquisitions or new market acquisitions. Fill-in acquisitions are generally
smaller in size and represent new branches within existing product groups and
existing geographic markets. Since January 29, 1993, the Company has completed
fill-in acquisitions of 35 branches, and management believes that significant
additional fill-in acquisition opportunities are available.
New market acquisitions represent the addition of new product groups,
within related commercial construction and industrial products categories, or
the entry into new geographic markets, or both. During the
4
<PAGE> 6
last four fiscal years, the Company has increasingly focused on new market
acquisitions with the goal of adding products and product groups with higher
gross margins, increasing sales to the replacement and industrial markets (which
tend to be less cyclical than new construction markets), achieving greater
geographic diversification and developing additional opportunities for future
fill-in acquisitions and new branch openings. Recent new market acquisitions
completed by the Company include: (i) The Treaty Distribution Group, resulting
in a significant increase in the Company's water and sewer products business in
new geographic markets; (ii) Moore Electric Supply, Inc., resulting in a
significant increase in the Company's electrical products business in new
geographic markets; (iii) Florida Pipe & Supply Company, the Company's initial
entry into the industrial pipe, valve and fitting market; (iv) Electric
Laboratories and Sales Corporation and ELASCO Agency Sales, Inc. (collectively,
"ELASCO"), resulting in a significant increase in the Company's electric
utilities business in new geographic markets; (v) PVF Holdings, Inc., resulting
in a significant increase in the Company's industrial pipe, valve and fitting
business in new geographic markets; (vi) Sunbelt, resulting in a significant
increase in the Company's valve and fitting business in new geographic markets;
and (vii) the Metals Group, resulting in a significant increase in the Company's
specialty pipe, valve and fitting business as well as the metal fabrication
business in new geographic markets.
The Company's operating strategy is based on decentralizing customer
related functions at the branch level, such as sales and local inventory
management, and centralizing certain administrative functions at the corporate
level, such as credit, human resources, finance and accounting, and management
information systems. Other key elements of the Company's operating strategy
include:
- Comprehensive and diversified product groups;
- Superior customer service;
- Local market focus;
- Well-trained and experienced workforce; and
- Volume purchasing power.
Hughes Supply differentiates itself from consumer-oriented, large format,
do-it-yourself ("DIY") home center retailers with respect to the type of
customer served, breadth of products offered and level of service provided.
Management believes that the Company's customers, unlike DIY customers, are
typically professionals who choose their building materials suppliers primarily
on the basis of product availability, price, relationships with sales personnel,
and the quality and scope of services offered by such suppliers. Furthermore,
professional customers generally buy in large volumes, are involved in ongoing
jobs or projects lasting months or years resulting in repeat buying situations,
and require specialized services not typically provided by large format DIY home
center retailers. Customer services provided by the Company include credit,
design assistance, material specifications, scheduled job site delivery, job
site visits to ensure satisfaction, technical product services, including
blueprint take-off and computerized order quotes, and assistance with product
returns. Accordingly, the Company has been able to serve customer groups that
large format DIY home center retailers generally do not emphasize.
As a result of the Company's operating and acquisition strategies, net
sales increased to $1.5 billion in fiscal 1997 from $827.3 million in fiscal
1994, a compound annual growth rate of 22.4%; operating income increased to
$59.3 million in fiscal 1997 from $16.8 million in fiscal 1994, a compound
annual growth rate of 52.2%; and the number of branches increased to 272
branches at the end of fiscal 1997 from 151 branches at the end of fiscal 1994,
a compound annual growth rate of 22.2%.
Hughes Supply was founded as a general partnership in Orlando, Florida in
1928 and was incorporated as a Florida corporation in 1947. The Company's
executive offices are located at 20 North Orange Avenue, Suite 200, Orlando,
Florida 32801, and its telephone number is (407) 841-4755.
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<PAGE> 7
RISK FACTORS
For a discussion of certain factors that should be considered by
prospective purchasers of the Common Stock offered hereby, see "Risk Factors."
FORWARD-LOOKING STATEMENTS
This Prospectus, including the information incorporated by reference
herein, includes "forward-looking statements" within the meaning of Section 27A
of the Securities Act and Section 21E of the Exchange Act, and is subject to the
safe-harbor created by such sections. When used in this Prospectus, the words
"believe," "anticipate," "estimate," "expect," and similar expressions are
intended to identify forward-looking statements. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to be
correct. The Company's actual results may differ significantly from the results
discussed in such forward-looking statements. Certain factors that might cause
such differences include, but are not limited to, the "Risk Factors" described
herein.
THE OFFERING(1)
<TABLE>
<S> <C>
Common Stock being offered hereby........................... 188,154 shares
Common Stock outstanding (as of May 27, 1997)(2)............ 11,747,973 shares
Common Stock to be outstanding after this offering(3)....... 11,747,973 shares
NYSE symbol................................................. HUG
</TABLE>
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(1) All information in this Prospectus excludes the three-for-two stock split to
shareholders of record as of July 10, 1997, which stock split was approved
by the Board of Directors of the Company on May 20, 1997.
(2) Includes all shares offered hereby.
(3) Assumes all shares offered hereby have been sold. Because the Selling
Shareholders may sell all, some or none of the respective shares pursuant to
this Prospectus, no actual estimate can be made of the aggregate number of
shares that each Selling Shareholder will own upon completion of the
offering to which this Prospectus relates.
6
<PAGE> 8
SUMMARY CONSOLIDATED FINANCIAL AND OPERATING DATA
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
FISCAL YEARS ENDED
-------------------------------------------------------------------
JANUARY 31, JANUARY 26, JANUARY 27, JANUARY 28, JANUARY 29,
1997 1996 1995 1994 1993
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<S> <C> <C> <C> <C> <C>
STATEMENTS OF INCOME DATA:
Net sales............................... $1,516,088 $1,242,446 $994,811 $827,251 $676,465
Cost of sales........................... 1,200,179 989,214 797,123 664,696 547,636
---------- ---------- -------- -------- --------
Gross profit............................ 315,909 253,232 197,688 162,555 128,829
Operating expenses...................... 256,636 213,946 170,617 145,749 119,340
---------- ---------- -------- -------- --------
Operating income........................ 59,273 39,286 27,071 16,806 9,489
Interest expense........................ 13,520 9,380 6,414 6,048 5,774
Interest and other income............... 5,953 4,961 3,203 3,679 4,072
---------- ---------- -------- -------- --------
Income before income taxes.............. 51,706 34,867 23,860 14,437 7,787
Income taxes............................ 19,178 11,661 7,979 4,710 1,734
---------- ---------- -------- -------- --------
Net income.............................. $ 32,528 $ 23,206 $ 15,881 $ 9,727 $ 6,053
========== ========== ======== ======== ========
Earnings per share:
Primary............................... $ 3.08 $ 2.72 $ 2.00 $ 1.43 $ 0.90
========== ========== ======== ======== ========
Fully diluted......................... $ 3.07 $ 2.70 $ 1.98 $ 1.34 $ 0.90
========== ========== ======== ======== ========
Cash dividends per share................ $ 0.38 $ 0.30 $ 0.22 $ 0.16 $ 0.12
========== ========== ======== ======== ========
Pro forma earnings per share:(2)
Primary............................... $ 3.00 $ 2.43 $ 1.82 $ 1.27 $ 0.75
Fully diluted......................... $ 2.99 $ 2.41 $ 1.80 $ 1.21 $ 0.75
OPERATING DATA:
Branches at end of period............... 272 226 182 151 136
Comparable branch sales increases
(decreases)(1)........................ 8% 11% 14% 18% (1%)
</TABLE>
<TABLE>
<CAPTION>
AS OF
JANUARY 31, 1997
----------------
<S> <C>
BALANCE SHEET DATA (END OF PERIOD):
Working capital............................................. $330,388
Total assets................................................ 649,502
Long-term debt, less current portion........................ 221,988
Shareholders' equity........................................ 278,934
</TABLE>
- ---------------
(1) Comparable branch sales increases (decreases) are calculated for each period
presented by comparing the net sales results in the period with the net
sales results for the comparable prior year period (for branches that were
open for the entire duration of both periods).
(2) Pro forma earnings per share assumes that the earnings of ELASCO, a
Subchapter S corporation acquired by the Company on April 26, 1996, and
Metals, Incorporated and Stainless Tubular Products, Inc., also Subchapter S
corporation acquired by the Company on January 24, 1997, would have been
taxed at the Company's effective rate for each period presented.
7
<PAGE> 9
RISK FACTORS
In addition to the other information included or incorporated by reference
in this Prospectus, prospective investors should consider carefully the
following information relating to the Company and the Common Stock before making
an investment in the Common Stock offered hereby.
RISKS OF ACQUISITION STRATEGY
A significant portion of the Company's growth strategy is based upon the
acquisition of other building products businesses. During the normal course of
its business, the Company pursues suitable acquisition opportunities in selected
markets. There can be no assurance, however, that the Company will be able to
continue to identify and acquire appropriate businesses or obtain financing for
such acquisitions on satisfactory terms. In addition, no assurance can be given
that the Company will be successful in integrating acquired businesses into its
existing operations, or that such integration will not result in unforeseen
operational difficulties or require a disproportionate amount of management's
attention. Future acquisitions may be financed through the incurrence of
additional indebtedness or through the issuance of Common Stock or the issuance
of equity-linked securities, which may be dilutive to the Company's
shareholders. Furthermore, there can be no assurance that competition for
acquisition opportunities in the building products industry will not escalate,
thereby increasing the cost to the Company of making further acquisitions or
causing the Company to refrain from making further acquisitions.
DEPENDENCE ON CONSTRUCTION MARKETS, ESPECIALLY IN FLORIDA
Demand for the Company's products depends to a significant degree on the
commercial, residential and industrial construction markets. The level of
activity in the commercial construction market depends largely on vacancy and
absorption rates, interest rates, regional economic outlooks, the availability
of financing and general economic conditions. The level of activity in the
residential construction market depends on new housing starts and residential
renovation projects, which are a function of many factors, including interest
rates, availability of financing, housing affordability, unemployment,
demographic trends, gross domestic product growth and consumer confidence. The
level of activity in the industrial construction market is linked to the
industrial economic outlook, corporate profitability, interest rates and
capacity utilization. Consequently, the level of activity in the commercial,
residential and industrial construction markets is determined by factors that
are not within the Company's control. Moreover, since such markets are sensitive
to cyclical changes in the economy, future downturns in the economy or lack of
further improvement in the economy could negatively affect the Company's results
of operations, especially in Florida where approximately 36% of the Company's
net sales were derived in fiscal 1997.
UNCERTAINTY OF SUPPLY AND PRICE OF PRODUCTS
The Company distributes construction materials and supplies manufactured by
over 6,000 manufacturers and suppliers, no one of which accounted for more than
5% of the Company's total purchases during fiscal 1997. Although the Company has
a widely diversified base of suppliers, future supply shortages may occur from
time to time as a result of unanticipated demand or production difficulties. In
such cases, suppliers often allocate products among distributors, which could
have a short-term adverse effect on the Company's results of operations.
Although the Company has entered into strategic partnerships with certain
suppliers, if the Company fails to maintain such strategic partnerships or if
such suppliers cease to offer competitive pricing terms, the Company's results
of operations may be adversely affected.
COMPETITION
The building products industry is highly competitive and fragmented. The
principal competitive factors in the Company's business are availability of
materials and supplies, pricing of products, availability of credit, technical
product knowledge as to application and usage, and advisory and other service
capabilities. The Company competes with other wholesalers, manufacturers who
sell certain lines directly to contractors and other customers of the Company
and, to a limited extent, retailers in the markets for plumbing, electrical
8
<PAGE> 10
fixtures and supplies, building materials, pool supplies and contractor's tools.
The Company's competition varies by product line, customer classification and
geographic market. No assurance can be given that the Company will be able to
respond effectively to the competitive pressures created by those entities,
especially since certain of those entities have substantially greater financial
and other resources than those of the Company.
RELIANCE ON EXECUTIVE OFFICERS
The Company is highly dependent upon the skills, experience and efforts of
its executive officers. Loss of the services of one or more of the Company's
executive officers could have a material adverse effect on the Company's
business and development. The Company's continued growth also depends in part on
its ability to attract and retain qualified managers, salespersons and other key
employees, and on its executive officers' ability to manage growth successfully.
No assurance can be given that the Company will be able to attract and retain
such employees or that such executive officers will be able to manage growth
successfully.
LIMITATIONS ON PAYMENT OF DIVIDENDS
The amount of future dividends, as well as the decision to pay any
dividends, in respect of the Common Stock will depend on the Company's results
of operations, capital requirements and financial condition and other factors
that the Board of Directors deems relevant. In addition, certain debt
instruments and agreements to which the Company and its subsidiaries are or may
in the future become parties contain or may contain restrictive covenants and
provisions that limit the amount of dividends payable by the Company.
VOLATILITY OF MARKET PRICE FOR COMMON STOCK
There may be significant volatility in the market price for the Common
Stock. Operating results of the Company or of other companies participating in
the building products industry, changes in general economic conditions and the
financial markets, or other developments affecting the Company or its
competitors could cause the market price for the Common Stock to fluctuate
substantially. See "Dependence on Construction Markets, Especially in Florida"
above.
USE OF PROCEEDS
The Common Stock offered hereby is being offered for the accounts of the
respective Selling Shareholders. The Company will receive no proceeds from the
sale of such shares.
9
<PAGE> 11
SELLING SHAREHOLDERS
The following table sets forth certain information regarding the ownership
of the Common Stock by each of the Selling Shareholders. Each of the Selling
Shareholders has sole voting and investment power with respect to such shares.
<TABLE>
<CAPTION>
SHARES BENEFICIALLY
OWNED AFTER THE
NUMBER OF SHARES NUMBER OF SHARES OFFERING(1)
NAME OF SELLING BENEFICIALLY OWNED AS REGISTERED FOR -------------------
SHAREHOLDER OF MAY 27, 1997 SALE HEREBY(1) NUMBER PERCENT
--------------- --------------------- ---------------- -------- --------
<S> <C> <C> <C> <C>
Donald E. Guy(2)............................ 11,676 50 11,676 *
P.O. Box 10452
Birmingham, AL 35202
James F. Matthews(3)........................ 144,791 24,791 144,791 1.2%
7 Dellwood Place
Binghamton, NY 13903
Patricia R. Douglas(4)...................... 83,474 8,137 83,474 *
2401 Nollville Road
Martinsburg, WV 25401
John F. Bedick(4)........................... 32,734 3,179 32,734 *
4821 McClung Street
South Charleston, WV 25309
Ronald L. Whitney(4)........................ 32,734 3,179 32,734 *
4821 McClung Street
South Charleston, WV 25309
Robert S. Clay(4)........................... 14,731 1,431 14,731 *
2604 Avenham Avenue
Roanoke, VA 24014
H. Clayton Arnold, as Trustee(5)............ 26,131 1,574 26,131 *
of the H. Clayton Arnold Revocable Trust
dated 9/22/93
612 Kingfish Road
North Palm Beach, FL 33408
Kathleen G. Arnold, as Trustee(5)........... 17,461 1,090 17,461 *
of the Kathleen G. Arnold Revocable Trust
dated 9/22/93
612 Kingfish Road
North Palm Beach, FL 33408
Gregory H. Arnold(5)........................ 29,033 1,750 29,033 *
114 Cape Pointe Circle
Jupiter, FL 33477
Larry A. Feld(6)............................ 154,860 26,555 154,860 1.3%
11909 Wink Road
Houston, TX 77027
Brent W. Scheps(6).......................... 154,860 26,555 154,860 1.3%
5108 Valerie
Bellaire, TX 77401
</TABLE>
10
<PAGE> 12
<TABLE>
<CAPTION>
SHARES BENEFICIALLY
OWNED AFTER THE
NUMBER OF SHARES NUMBER OF SHARES OFFERING(1)
NAME OF SELLING BENEFICIALLY OWNED AS REGISTERED FOR -------------------
SHAREHOLDER OF MAY 27, 1997 SALE HEREBY(1) NUMBER PERCENT
--------------- --------------------- ---------------- -------- --------
<S> <C> <C> <C> <C>
Ronald L. Siegenthaler, as Trustee of(7).... 187,678 14,489 187,678 1.6%
the Ronald L. Siegenthaler
Revocable Living Trust dated 9/25/95, as
amended 8/28/96
1010 West 37th Place
Tulsa, OK 74107
William B. Emmer(7)......................... 187,678 14,489 187,678 1.6%
3616 East 99th Street
Tulsa, OK 74137
John R. Sappington(7)....................... 29,750 2,341 29,750 *
5211 East 88th Street
Tulsa, OK 74137
John H. Cullinan, Jr., as Trustee of(7)..... 48,972 4,099 48,972 *
the John H. Cullinan, Jr.
Revocable Trust dated 10/12/93
2322 South Delaware
Tulsa, OK 74114
Larry E. Fishpaw, as Trustee of(7).......... 48,972 4,099 48,972 *
the Larry E. Fishpaw
Revocable Trust dated 8/27/92
4735 South Victor
Tulsa, OK 74105
Craig Hurt(7)............................... 22,038 1,845 22,038 *
10061 South Sheridan Apt. #614
Tulsa, OK 74133
Steve Walker(7)............................. 10,198 805 10,198 *
6951 Falls Church Court
Spanish Fort, AL 36527
Shari Roberts(7)............................ 4,533 358 4,533 *
4826 Oakleaf Drive
Tulsa, OK 74132
Ernest E. Smith(7).......................... 1,587 125 1,587 *
1604 North Hickory Avenue
Broken Arrow, OK 74012
Gulf Pool Equipment Co.(8).................. 47,213 47,213 0 *
10430 Gulfdale
San Antonio, Texas 78216
</TABLE>
- ---------------
* Less than 1%.
(1) Assumes all shares offered hereby have been sold. Because the Selling
Shareholders may sell all, some or none of their respective shares pursuant
to this Prospectus, no actual estimate can be made of the aggregate number
of shares that each Selling Shareholder will own upon completion of the
offering to which this Prospectus relates.
(2) On May 1, 1996, the Company, pursuant to the Gayle Agreement, exchanged
152,098 shares of Common Stock of the Company for all of the outstanding
shares of Gayle Supply, subject to adjustment, if necessary, to reflect any
change in the net asset value of Gayle Supply from the assumed value at the
date
11
<PAGE> 13
of the Gayle Agreement to the value determined under the Gayle Agreement on
the closing date. The Gayle Shares covered by this Prospectus have been
issued as an adjustment to the number of shares exchanged by the Company
pursuant to the terms of the Gayle Agreement. Mr. Guy was a shareholder of
Gayle Supply prior to the consummation of that transaction. See Note (9)
below.
(3) On December 2, 1996, the Company, pursuant to the WES Agreement, acquired
WES from its shareholder for an aggregate base price of $4,800,000 (the
"Base Price"), subject to adjustment, if necessary, to increase or decrease
the price from the Base Price to the Final Adjusted Price (as defined in the
WES Agreement) to reflect any change in the value of WES from the assumed
value of $2,765,392. The Base Price was paid by the Company at closing by
delivery of consideration consisting of 120,000 shares of Common Stock of
the Company with an aggregate value, as determined under the WES Agreement
at $36.00 per share (the "WES Agreement Share Price"), of $4,320,000. At
closing, 13,334 shares of Common Stock with an aggregate value of $480,024
were delivered in escrow under the terms of the Escrow Agreement (as defined
in the WES Agreement). The WES Shares covered by this Prospectus include
13,334 shares which were released from escrow and delivered to the WES
shareholders, as well as an additional 11,457 shares which were issued to
the WES shareholders based on an increase in the value of WES from the
assumed value. Mr. James W. Matthews was the shareholder of WES prior to its
acquisition by the Company. See Note (9) below.
(4) On December 11, 1996, the Company, pursuant to the PPSC Agreement, exchanged
147,747 shares of Common Stock of the Company for all of the outstanding
shares of PPSC, subject to adjustment, if necessary, to reflect any change
in the net asset value of PPSC from the assumed value at the date of the
PPSC Agreement to the value determined under the PPSC Agreement at the
closing date. At closing, 7,809 shares of Common Stock were delivered in
escrow under the terms of the Escrow Agreement (as defined in the PPSC
Agreement). The PPSC Shares covered by this Prospectus include 7,809 shares
which were released from escrow and delivered to the PPSC shareholders, as
well as an additional 8,117 shares which were issued to the PPSC
shareholders based on an increase in the net asset value of PPSC. Messrs.
Bedick, Whitney, Clay and Ms. Douglas were each shareholders of PPSC prior
to the consummation of that transaction. See Note (9) below.
(5) On November 5, 1996, the Company, pursuant to the CWI Agreement, acquired
CWI from its shareholders, for an aggregate base price of $2,880,000 (the
"Base Price"), subject to adjustment, if necessary, to increase or decrease
the price from the Base Price to the Final Adjusted Price (as defined in the
CWI Agreement) to reflect any change in the value of CWI from the assumed
value of $1,569,690. The Base Price was paid by the Company at closing by
delivery of consideration consisting of 68,211 shares of Common Stock of the
Company with an aggregate value, as determined under the CWI Agreement at
$38.00 per share (the "CWI Agreement Share Price"), of $2,592,018. At
closing, 7,579 shares of Common Stock with an aggregate value of $288,002
were delivered in escrow under the terms of the Escrow Agreement (as defined
in the CWI Agreement). Of those 7,579 shares, 3,165 shares have been
returned to the Company based on a decrease in the Base Price from the
assumed value at the date of the CWI Agreement, and 4,414 shares have been
delivered to the CWI shareholders. Messrs. Clayton Arnold (as trustee),
Gregory Arnold and Ms. Kathleen Arnold (as trustee) were each shareholders
of CWI prior to its acquisition by the Company. See Note (9) below.
(6) On December 30, 1996, the Company, pursuant to the Sunbelt Agreement,
exchanged 256,610 shares of Common Stock of the Company for all of the
outstanding shares of Sunbelt and certain real estate leased to Sunbelt from
its shareholders, subject to adjustment, if necessary, to reflect any change
in the net asset value of Sunbelt from the assumed value at the date of the
Sunbelt Agreement to the value determined under the Sunbelt Agreement at the
closing date. At closing, 45,454 shares of Common Stock were delivered in
escrow under the terms of the Escrow Agreement (as defined in the Sunbelt
Agreement). The Sunbelt Shares covered by this Prospectus include 45,454
shares which were released from escrow and delivered to the Sunbelt
shareholders, as well as an additional 7,565 shares which were issued to the
Sunbelt shareholders based on an increase in the net asset value of Sunbelt.
An additional 186,922 shares of Common Stock of the Company have been issued
to the Sunbelt Supply Co. Employee Stock Ownership Plan and Trust, which
shares have been registered under a Form S-8 Registration Statement
12
<PAGE> 14
filed by the Company with the Commission. Messrs. Feld and Scheps were each
shareholders of Sunbelt prior to the consummation of that transaction. See
Note (9) below.
(7) On January 24, 1997, the Company, pursuant to the Metals Agreement,
exchanged 483,842 shares of Common Stock of the Company for all of the
outstanding shares of the Metals Group, subject to adjustment, if necessary,
to reflect any change in the net asset value of the Metals Group from the
assumed value at the date of the Metals Agreement to the value determined
under the Metals Agreement at the closing date. At closing, 53,759 shares of
Common Stock were delivered in escrow under the terms of the Escrow
Agreement (as defined in the Metals Agreement). Of those 53,759 shares,
11,109 shares have been returned to the Company based on a decrease in the
net asset value of Metals from the assumed value at the date of the Metals
Agreement, and 42,650 shares have been delivered to the Metals shareholders.
Messrs. Siegenthaler (as trustee), Emmer, Sappington, Cullinan (as trustee),
Fishpaw (as trustee), Hurt, Smith, Walker and Ms. Roberts were each
shareholders of the Metals Group prior to the consummation of that
transaction. See note (9) below.
(8) On February 10, 1997, the Company, pursuant to the Gulf Pool Agreement,
purchased all of the assets, properties and business of Gulf Pool for an
aggregate base price of $2,000,000 (the "Base Price"), subject to
adjustment, if necessary, to decrease the Base Price to the Adjusted
Purchase Price (as defined in the Gulf Pool Agreement) to reflect any change
in the net asset value of Gulf Pool from the assumed value at the date of
the Gulf Pool Agreement to the value determined under the Gulf Pool
Agreement on the closing date. The Base Price was paid by the Company at
closing by delivery of consideration consisting of 52,459 shares of Common
Stock of the Company with an aggregate value, as determined under the Gulf
Pool Agreement at $38.125 per share (the "Agreed Value"), of $2,000,000. At
closing 5,246 shares of Common Stock with an aggregate value of $200,000
were delivered in escrow under the terms of the Escrow Agreement (as defined
in the Gulf Pool Agreement) as security to be returned to the Company in the
event that the Adjusted Purchase Price is determined to be less than the
Base Price. In the event that the Adjusted Purchase Price is determined to
be less than the Base Price, the amount of such difference will be returned
to the Company in shares of Common Stock of the Company at the Agreed Value.
Gulf Pool was a wholly owned subsidiary of GPH, prior to the Company's
acquisition of Gulf Pool. Mr. Tottenham is the sole shareholder of GPH. See
Note (9) below.
(9) The registration under the Securities Act of the shares offered hereby to
permit resale of the shares by the respective Selling Shareholders after the
closing of the acquisition or share exchange, as applicable, was, in each
case, a condition of the acquisition or share exchange under the applicable
agreement.
13
<PAGE> 15
PLAN OF DISTRIBUTION
The Shares offered hereby are being offered by the respective Selling
Shareholders. The Company will receive no proceeds from the sale of any of the
Shares by the Selling Shareholders. The sale of the Shares may be effected by
the Selling Shareholders from time to time in transactions in the
over-the-counter market, on the NYSE or on other exchanges on which the Shares
may be listed, in negotiated transactions, or a combination of such methods of
sale, at fixed prices which may be changed, at market prices prevailing at the
time of sale, at prices related to prevailing market prices or at negotiated
prices. Such shares may be sold by one or more of the following: (a) a block
trade in which the broker or dealer so engaged will attempt to sell the shares
as agent but may position and resell a portion of the block as principal to
facilitate the transaction; (b) purchases by a broker or dealer as principal and
resale by such broker or dealer for its account pursuant to this Prospectus; (c)
an exchange distribution in accordance with the rules of such exchange; and (d)
ordinary brokerage transactions, transactions directly with a market maker, and
transactions in which the broker solicits purchasers. In effecting sales,
brokers or dealers engaged by a Selling Shareholder may arrange for other
brokers or dealers to participate. In addition, and without limiting the
foregoing, the Selling Shareholders may effect such transactions by selling the
Shares to or through underwriters or broker-dealers, and such underwriters or
broker-dealers may receive compensation in the form of discounts, concessions or
commissions from the Selling Shareholders and/or the purchasers of the Shares
for whom such underwriters or broker-dealers may act as agents or to whom they
sell as principals, or both (which compensation as to a particular underwriter
or broker-dealer might be in excess of customary commissions).
In connection with distribution of the Shares of Common Stock or otherwise,
the Selling Shareholders may enter into hedging transactions with
broker-dealers. In connection with such transactions, broker-dealers may engage
in short sales of the Shares registered hereunder in the course of hedging the
positions they assume with Selling Shareholders. The Selling Shareholders may
also sell Shares short and redeliver the Shares of Common Stock to close out
such short positions. The Selling Shareholders may also enter into option or
other transactions with broker-dealers which require the delivery to the
broker-dealer of the Shares of Common Stock registered hereunder, which the
broker-dealer may resell or otherwise transfer pursuant to this Prospectus. The
Selling Shareholders may also loan or pledge the Shares registered hereunder to
a broker-dealer and the broker-dealer may sell the shares so loaned or upon a
default the broker-dealer may effect sales of the pledged Shares pursuant to
this Prospectus.
To the extent required, the number of Shares to be sold, the purchase
price, the name of any such agent, dealer or underwriter and any applicable
commissions with respect to a particular offer will be set forth in an
accompanying Prospectus Supplement. The aggregate proceeds to the Selling
Shareholders from the sale of the Shares sold by the Selling Shareholders hereby
will be the purchase price of such Shares less any broker's commissions or
underwriters' discounts. In addition, any securities covered by this Prospectus
which qualify for sale under Rule 144 under the Securities Act ("Rule 144") may
be sold under Rule 144 rather than pursuant to this Prospectus.
In order to comply with the securities laws of certain states, if
applicable, the Shares will be sold in such jurisdictions only through
registered or licensed brokers or dealers. In addition, in certain states the
Shares may not be sold unless they have been registered or qualified for sale in
the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.
Any broker-dealers, agents or underwriters that participate with the
Selling Shareholders in the distribution of the Shares may be deemed to be
"underwriters" within the meaning of the Securities Act, in which event any
commissions received by such broker-dealers, agents, or underwriters and any
profit on their sale of the Shares purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act.
Under applicable rules and regulations under the Exchange Act, any person
engaged in the distribution of the Shares may not simultaneously engage in
market making activities with respect to the Common Stock of the Company for a
period of two business days prior to the commencement of such distribution. In
addition and without limiting the foregoing, each Selling Shareholder will be
subject to applicable provisions of the
14
<PAGE> 16
Exchange Act and the rules and regulations thereunder, which provisions may
limit the timing of purchases and sales of shares of the Company's Common Stock
by the Selling Shareholders.
The Company agreed to register the Shares under the Securities Act and to
indemnify certain Selling Shareholders against certain liabilities under the
Securities Act that could arise in connection with the sale by such Selling
Shareholders of the Shares. The Company has agreed to pay certain fees and
expenses incident to the registration of the Shares. The Company has agreed to
use its best effort to maintain the effectiveness of the Registration Statement
of which this Prospectus constitutes a part for a period of two years from the
respective dates on which the transactions with each Selling Shareholder were
consummated.
LEGAL MATTERS
Certain legal matters with respect to the legality of the issuance of the
Shares offered hereby will be passed upon for the Company by its General
Counsel, Benjamin P. Butterfield, Esq.
EXPERTS
The financial statements incorporated in this Prospectus by reference to
the Company's Annual Report on Form 10-K for the year ended January 31, 1997,
have been so incorporated in reliance on the report of Price Waterhouse LLP,
independent certified public accountants, given on the authority of said firm as
experts in auditing and accounting.
15
<PAGE> 17
======================================================
No person has been authorized to give any information or make any
representations in connection with this offering other than those contained in
this Prospectus and, if given or made, such other information and
representations must not be relied upon as having been authorized by the Company
or the Selling Shareholders. Neither the delivery of this Prospectus nor any
sale made hereunder shall, under any circumstances, create any implication that
there has been no change in the affairs of the Company subsequent to its date.
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, any securities other than the registered securities to which it
relates. This Prospectus does not constitute an offer to sell, or a solicitation
of an offer to buy, such securities in any circumstances in which such offer or
solicitation is unlawful.
---------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Available Information................. 2
Incorporation of Certain Documents By
Reference........................... 3
Prospectus Summary.................... 4
Risk Factors.......................... 8
Use of Proceeds....................... 9
Selling Shareholders.................. 10
Plan of Distribution.................. 14
Legal Matters......................... 15
Experts............................... 15
</TABLE>
======================================================
======================================================
188,154 SHARES
HUGHES SUPPLY, INC.
COMMON STOCK
-------------------------
PROSPECTUS
-------------------------
DATED MAY , 1997
======================================================
<PAGE> 18
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
It is estimated that Hughes Supply, Inc. (the "Company") will incur the
following expenses in connection with the offering of the securities being
registered. All of the amounts shown are estimated except for the Securities and
Exchange Commission registration fee, and all of said amounts will be paid by
the Company.
<TABLE>
<S> <C>
Registration Fee -- Securities and Exchange Commission...... $ 2,259.50
Accounting fees and expenses................................ 5,000
Legal fees and expenses..................................... 10,000
Printing fees and expenses.................................. 10,000
Transfer Agent's fees and expenses.......................... 1,000
----------
Total............................................. $28,259.50
==========
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 607.0850 of the Florida Business Corporation Act permits, and in
some cases requires, the Company as a Florida corporation to indemnify a
director, officer, employee, or agent of the Company, or any person serving at
the request of the Company in any such capacity with respect to another entity,
against certain expenses and liabilities incurred as a party to any proceeding,
including, among others, a proceeding under the Securities Act of 1933, as
amended (the "Securities Act"), brought against such person by reason of the
fact that such person is or was a director, officer, employee, or agent of the
Company or is or was serving in such capacity with respect to another entity at
the request of the Company. With respect to actions, other than in the right of
the Company, such indemnification is permitted if such person acted in good
faith and in a manner such person reasonably believed to be in, or not opposed
to, the best interests of the Company, and with respect to any criminal action
or proceeding, if such person had no reasonable cause to believe his or her
conduct was unlawful. Termination of any such action by judgment, order,
settlement or conviction or a plea of nolo contendere, or its equivalent shall
not, of itself, create a presumption that such person did not act in good faith
and in a manner he or she reasonably believed to be in, or not opposed to, the
best interests of the Company, or with respect to any criminal action or
proceeding, had reasonable cause to believe that his or her conduct was
unlawful.
With respect to any action threatened, pending or completed in the right of
the Company to procure a judgment in its favor against any such person, the
Company may indemnify any such person against expenses actually and reasonably
incurred by him or her in connection with the defense or settlement of such
action or suit, including the appeal thereof, if he or she acted in good faith
and in a manner he or she reasonably believed to be in, or not opposed to, the
best interests of the Company, except that no indemnification shall be made in
respect of any claim, issue or matter as to which any such person shall have
been adjudged to be liable for negligence or misconduct in the performance of
his or her duties to the Company unless the Court in which the action was
brought determines that despite the adjudication of liability, but in view of
all the circumstances in the case, such person is fairly and reasonably entitled
to indemnity for such expenses.
Section 607.0850 also provides that if any such person has been successful
on the merits or otherwise in defense of any action, suit or proceeding, whether
brought in the right of the Company or otherwise, such person shall be
indemnified against expenses actually and reasonably incurred by him or her in
connection therewith.
If any director or officer does not succeed upon the merits or otherwise in
defense of an action, suit or proceeding, then unless pursuant to a
determination made by a court, indemnification by the Company shall be made only
as authorized in the specific case upon a determination that indemnification of
the director or
II-1
<PAGE> 19
officer is proper because he or she has met the applicable standard of conduct.
Any such determination may be made:
(a) By the Board of Directors by a majority vote of a quorum
consisting of directors who are not parties to such action, suit, or
proceeding;
(b) If such a quorum is not obtainable or, even if obtainable, by a
majority vote of a committee duly designated by the Board of Directors (in
which Directors who are parties may participate) consisting solely of two
or more Directors not at the time parties to the proceeding;
(c) By independent legal counsel selected by the Board of Directors
prescribed in paragraph (a) or the committee prescribed in paragraph (b);
or if a quorum of the Directors cannot be obtained for paragraph (a) or the
committee cannot be designated under paragraph (b) selected by a majority
vote of the full Board of Directors (in which Directors who are parties may
participate); or
(d) By the shareholders by a majority vote of a quorum consisting of
shareholders who were not parties to the proceeding or, if no such quorum
is obtainable, by a majority vote of shareholders who were not parties to
such proceedings.
Section 607.0850 also contains a provision authorizing corporations to
purchase and maintain liability insurance on behalf of its directors and
officers. For some years the Company has maintained an insurance policy which
insures directors and officers of the Company against amounts the director or
officer is obligated to pay in respect of his legal liability, whether actual or
asserted, for any negligent act, any error, any omission or any breach of duty
which, subject to the applicable limits and terms of the policy, include
damages, judgments, settlements, costs of investigation, and costs, charges and
expenses incurred in the defense of actions, suits, or proceedings or appeals
thereto, subject to the exceptions, limitations and conditions set forth in the
policy.
ITEM 16. EXHIBITS.
The following items are filed as exhibits to this registration statement:
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION
- ------- -----------
<C> <S> <C>
4.1 -- Restated Articles of Incorporation of the Company, as
amended(1)
4.2 -- Composite By-laws of the Company(2)
4.3 -- Form of Common Stock Certificate of the Company(3)
5.0 -- Opinion of Benjamin P. Butterfield, Esq.
23.1 -- Consent of Price Waterhouse LLP
23.4 -- Consent of Benjamin P. Butterfield, Esq. appears in his
opinion filed as Exhibit 5
24.0 -- Power of Attorney (included in the signature page in Part II
of the Registration Statement)
</TABLE>
- ---------------
(1) Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report
on Form 10-Q filed for the quarter ended July 31, 1994.
(2) Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report
on Form 10-Q filed for the quarter ended July 31, 1994.
(3) Incorporated by reference to Exhibit 4.2 to the Company's Quarterly Report
on Form 10-Q filed for the quarter ended October 31, 1984.
ITEM 17. UNDERTAKINGS.
The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities
Act of 1934 (and where applicable, each filing of an employee benefit plan's
annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934)
that is incorporated by reference in the registration statement relating to the
securities offered therein, and the offering of such securities at the time
shall be deemed to be the initial bona fide offering thereof.
II-2
<PAGE> 20
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Company pursuant to the provisions described under Item 15 above or otherwise,
the Company has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Company of expenses
incurred or paid by a director, officer or controlling person of the Company in
the successful defense of any action, suit or proceeding) is asserted against
the Company by such director, officer or controlling person in connection with
the securities being registered, the Company will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
The undersigned registrant hereby undertakes:
(1) That, for purposes of determining any liability under the
Securities Act of 1933, the information omitted from the form of prospectus
filed as part of this registration statement in reliance upon Rule 430A and
contained in a form of prospectus filed by the registrant pursuant to Rule
424(b)(1) or (4) or 497(h) under the Securities Act of 1933 shall be deemed
to be part of this registration statement as of the time it was declared
effective.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
(3) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement to include
any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change
to such information in the registration statement.
(4) That, for purposes of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and an offering of such securities at that time shall be deemed to
be the initial bona fide offering thereof.
(5) To remove from registration by means of post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
II-3
<PAGE> 21
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, hereunto duly
authorized, in the City of Orlando, State of Florida, on this 27th day of May
1997.
HUGHES SUPPLY, INC.
By: /s/ DAVID H. HUGHES
------------------------------------
David H. Hughes
Chairman of the Board and Chief
Executive Officer
/s/ J. STEPHEN ZEPF
------------------------------------
J. Stephen Zepf
Treasurer and Chief Financial
Officer,
(Principal Financial and Accounting
Officer)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints David H. Hughes and J. Stephen Zepf, or any of
them, his true and lawful attorneys-in-fact and agents, with full power of
substitution and resubstitution, for him and in his name, place and stead, in
any and all capacities to sign any or all amendments to this Registration
Statement, and to file the same, with all exhibits thereto and other documents
in connection therewith, with the Securities and Exchange Commission, granting
unto each of said attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully as to all intents and purposes as he might or
could do in person, hereby ratifying and confirming all that each of said
attorneys-in-fact and agents, or his substitute or substitutes, may lawfully do
or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<C> <C> <C>
/s/ DAVID H. HUGHES Director May 27, 1997
- -----------------------------------------------------
David H. Hughes
/s/ A. STEWART HALL, JR. Director May 27, 1997
- -----------------------------------------------------
A. Stewart Hall, Jr.
/s/ VINCENT S. HUGHES Director May 27, 1997
- -----------------------------------------------------
Vincent S. Hughes
/s/ JOHN D. BAKER II Director May 27, 1997
- -----------------------------------------------------
John D. Baker II
/s/ ROBERT N. BLACKFORD Director May 27, 1997
- -----------------------------------------------------
Robert N. Blackford
</TABLE>
II-4
<PAGE> 22
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<C> <C> <C>
/s/ JOHN B. ELLIS Director May 27, 1997
- -----------------------------------------------------
John B. Ellis
/s/ CLIFFORD M. HAMES Director May 27, 1997
- -----------------------------------------------------
Clifford M. Hames
/s/ HERMAN B. MCMANAWAY Director May 27, 1997
- -----------------------------------------------------
Herman B. McManaway
/s/ DONALD C. MARTIN Director May 27, 1997
- -----------------------------------------------------
Donald C. Martin
/s/ H. CORBIN DAY Director May 27, 1997
- -----------------------------------------------------
H. Corbin Day
</TABLE>
II-5
<PAGE> 23
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<C> <S> <C>
4.1 -- Restated Articles of Incorporation of the Company, as
amended(1)..................................................
4.2 -- Composite By-laws of the Company(2).........................
4.3 -- Form of Common Stock Certificate of the Company(3)..........
5.0 -- Opinion of Benjamin P. Butterfield, Esq.....................
23.1 -- Consent of Price Waterhouse LLP.............................
23.4 -- Consent of Benjamin P. Butterfield, Esq. appears in his
opinion filed as Exhibit 5..................................
24.0 -- Power of Attorney (included in the signature page in Part II
of the Registration Statement)..............................
</TABLE>
- ---------------
(1) Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report
on Form 10-Q filed for the quarter ended July 31, 1994.
(2) Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report
on Form 10-Q filed for the quarter ended July 31, 1994.
(3) Incorporated by reference to Exhibit 4.2 to the Company's Quarterly Report
on Form 10-Q filed for the quarter ended October 31, 1984.
<PAGE> 1
EXHIBIT 5.0
May 28, 1997
Hughes Supply, Inc.
20 North Orange Avenue
Suite 200
Orlando, Florida 32801
Re: Registration Statement on Form S-3
Gentlemen:
I am the general counsel of Hughes Supply, Inc., a Florida corporation
(the "Company"). I am furnishing this opinion in connection with the preparation
and filing by the Company of a Registration Statement on Form S-3 (the
"Registration Statement") relating to the sale of up to an aggregate 188,154
shares of common stock, par value $1.00 per share (the "Common Stock"), of the
Company by and for the accounts of Donald E. Guy, James F. Matthews, Patricia R.
Douglas, John F. Bedick, Ronald L. Whitney, Robert S. Clay, H. Clayton Arnold
(as Trustee of the H. Clayton Arnold Revocable Trust), Kathleen G. Arnold (as
Trustee of the Kathleen G. Arnold Revocable Trust), Gregory H. Arnold, Larry A.
Feld, Brent W. Scheps, Ronald L. Siegenthaler (as Trustee of the Ronald L.
Siegenthaler Revocable Living Trust), William B. Emmer, John R. Sappington, John
H. Cullinan, Jr. (as Trustee of the John H. Cullinan Revocable Trust), Larry E.
Fishpaw (as Trustee of the Larry E. Fishpaw Revocable Trust), Craig Hurt, Steve
Walker, Shari Roberts, Ernest E. Smith and Gulf Pool Equipment Co.
(collectively, the "Selling Shareholders").
I have examined copies of the Restated Articles of Incorporation and
By-Laws of the Company, the Registration Statement, and such other corporate
records and documents as I deemed necessary to form the basis for the opinion
hereinafter expressed. In my examination of such material, I have assumed the
genuineness of all signatures, the authenticity of all documents submitted to me
as originals, and the conformity to original documents of all copies submitted
to me. As to questions of fact material to such opinion, I have relied upon
statements of officers and representatives of the Company and others.
Based on the foregoing, it is my opinion that the shares of Common Stock
being registered will, when sold as contemplated in the Prospectus forming a
part of the Registration Statement, be legally issued, fully paid and
nonassessable shares of Common Stock of the Company.
I hereby consent to the reference to me in the Registration Statement and
in the Prospectus, which constitutes a part thereof, as the attorney who will
pass on the legal matters in connection with the proposed sale of the Common
Stock by the Selling Shareholders and to the filing of this opinion as an
exhibit to the Registration Statement.
Very truly yours,
/s/ BENJAMIN P. BUTTERFIELD
--------------------------------------
Benjamin P. Butterfield
General Counsel
<PAGE> 1
EXHIBIT 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus
constituting part of this Registration Statement on Form S-3 of our report dated
March 21, 1997, which appears on page 27 of the 1997 Annual Report to
Shareholders of Hughes Supply, Inc., which is incorporated by reference in the
Hughes Supply, Inc. Annual Report on Form 10-K for the year ended January 31,
1997. We also consent to the reference to us under the heading "Experts" in such
Prospectus.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Orlando, Florida
May 22, 1997
