-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VlS1JRv850eiLnApMgA+EHmMs4XXzF3E7i6kU3bGJVIN4gs6wRuMdl29p5eis9z2 Uxh+dMs7klP2DY35zGYONw== 0000909518-01-000143.txt : 20010212 0000909518-01-000143.hdr.sgml : 20010212 ACCESSION NUMBER: 0000909518-01-000143 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20010209 GROUP MEMBERS: CHRISTOPHER N. O'SULLIVAN GROUP MEMBERS: TIMOTHY J. GOLLIN GROUP MEMBERS: TRAVIS STREET PARTNERS LLC SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: ICO INC CENTRAL INDEX KEY: 0000353567 STANDARD INDUSTRIAL CLASSIFICATION: OIL, GAS FIELD SERVICES, NBC [1389] IRS NUMBER: 760566682 STATE OF INCORPORATION: TX FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-34170 FILM NUMBER: 1531345 BUSINESS ADDRESS: STREET 1: 11490 WESTHEIMER RD STREET 2: STE 100 CITY: HOUSTON STATE: TX ZIP: 77067 BUSINESS PHONE: 2817214200 MAIL ADDRESS: STREET 1: 11490 WESTHEIMER STREET 2: STE 1000 CITY: HOUSTON STATE: TX ZIP: 77077 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: TRAVIS STREET PARTNERS LLC CENTRAL INDEX KEY: 0001130418 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 910 TRAVIS STREET STREET 2: SUITE 2150 CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 7137592030 MAIL ADDRESS: STREET 1: 910 TRAVIS STREET STREET 2: SUITE 2150 CITY: HOUSTON STATE: TX ZIP: 77002 SC 13D/A 1 0001.txt ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 4) ---------- ICO, INC. (Name of Issuer) Common Stock, with no par value 449294206 (Title of class of securities) (CUSIP number) Christopher N. O'Sullivan TRAVIS STREET PARTNERS, LLC Bank One Center 910 Travis Street, Suite 2150 Houston, Texas 77002 (713) 759-2030 (Name, address and telephone number of person authorized to receive notices and communications) with copy to: Steven D. Rubin, Esq. Weil, Gotshal & Manges LLP 700 Louisiana, Suite 1600 Houston, Texas 77002 (713) 546-5000 February 9, 2001 (Date of event which requires filing of this statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box [_]. Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See ss. 240.13d-7 for other parties to whom copies are to be sent. (Continued on following pages) (Page 1 of 8 pages) ================================================================================ 77968.0003 ------------------------------------------------------------------------------------------------------ 1 NAME OF REPORTING PERSON Travis Street Partners, LLC ss. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 76-0657668 ------------------------------------------------------------------------------------------------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x] (b) [_] ------------------------------------------------------------------------------------------------------ 3 SEC USE ONLY ------------------------------------------------------------------------------------------------------ 4 SOURCE OF FUNDS: WC ------------------------------------------------------------------------------------------------------ 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ------------------------------------------------------------------------------------------------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION: Texas ------------------------------------------------------------------------------------------------------ NUMBER OF 7 SOLE VOTING POWER: 0 SHARES ------------------------------------------------------------------------------------------------------ BENEFICIALLY 8 SHARED VOTING POWER 1,158,300 OWNED BY ------------------------------------------------------------------------------------------------------ EACH 9 SOLE DISPOSITIVE POWER: 0 REPORTING ------------------------------------------------------------------------------------------------------ PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,158,300 ------------------------------------------------------------------------------------------------------ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,158,300 ------------------------------------------------------------------------------------------------------ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ------------------------------------------------------------------------------------------------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.11% ------------------------------------------------------------------------------------------------------ 14 TYPE OF REPORTING PERSON: 00 ------------------------------------------------------------------------------------------------------ 2 ------------------------------------------------------------------------------------------------------ 1 NAME OF REPORTING PERSON Timothy J. Gollin S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON ###-##-#### ------------------------------------------------------------------------------------------------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x] (b) [_] ------------------------------------------------------------------------------------------------------ 3 SEC USE ONLY ------------------------------------------------------------------------------------------------------ 4 SOURCE OF FUNDS: PF, OO ------------------------------------------------------------------------------------------------------ 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ------------------------------------------------------------------------------------------------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States ------------------------------------------------------------------------------------------------------ NUMBER OF 7 SOLE VOTING POWER: 0 SHARES ------------------------------------------------------------------------------------------------------ BENEFICIALLY 8 SHARED VOTING POWER 1,158,300 OWNED BY ------------------------------------------------------------------------------------------------------ EACH 9 SOLE DISPOSITIVE POWER: 0 REPORTING ------------------------------------------------------------------------------------------------------ PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,158,300 ------------------------------------------------------------------------------------------------------ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,158,300 ------------------------------------------------------------------------------------------------------ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ------------------------------------------------------------------------------------------------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.11% ------------------------------------------------------------------------------------------------------ 14 TYPE OF REPORTING PERSON: IN ------------------------------------------------------------------------------------------------------ 3 ------------------------------------------------------------------------------------------------------ 1 NAME OF REPORTING PERSON Christopher N. O'Sullivan S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON ###-##-#### ------------------------------------------------------------------------------------------------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x] (b) [_] ------------------------------------------------------------------------------------------------------ 3 SEC USE ONLY ------------------------------------------------------------------------------------------------------ 4 SOURCE OF FUNDS: PF, OO ------------------------------------------------------------------------------------------------------ 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ------------------------------------------------------------------------------------------------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States ------------------------------------------------------------------------------------------------------ NUMBER OF 7 SOLE VOTING POWER: 0 SHARES ------------------------------------------------------------------------------------------------------ BENEFICIALLY 8 SHARED VOTING POWER 1,158,300 OWNED BY ------------------------------------------------------------------------------------------------------ EACH 9 SOLE DISPOSITIVE POWER: 0 REPORTING ------------------------------------------------------------------------------------------------------ PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,158,300 ------------------------------------------------------------------------------------------------------ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,158,300 ------------------------------------------------------------------------------------------------------ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ------------------------------------------------------------------------------------------------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.11% ------------------------------------------------------------------------------------------------------ 14 TYPE OF REPORTING PERSON: IN ------------------------------------------------------------------------------------------------------
4 This Amendment No. 4 ("Amendment No. 4") amends the Statement on Schedule 13D filed on December 29, 2000, as amended by Amendment No. 1 filed on January 12, 2001, by Amendment No. 2 filed on January 22, 2001 and by Amendment No. 3 filed on February 1, 2001 (the "Schedule 13D") by and on behalf of the following persons: Travis Street Partners, LLC ("TSP"), Timothy J. Gollin ("Gollin") and Christopher N. O'Sullivan (individually "O'Sullivan"; together with Gollin the "TSP Managers"; and, together with Gollin and TSP the "Reporting Persons"). Except as otherwise indicated, capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Schedule 13D. As used herein, the "Company" shall mean ICO, Inc. ITEM 4. PURPOSE OF THE TRANSACTION On February 9, 2001, the TSP Managers released a press statement that reads as follows: TRAVIS STREET PARTNERS, LLC 910 TRAVIS STREET SUITE 2150 HOUSTON, TEXAS 77002 FAX 713 759 2040 TEL 713 759 2030 WWW.TRAVISSTREETPARTNERS.COM FOR IMMEDIATE RELEASE TRAVIS STREET PARTNERS TO RECONSIDER PROPOSAL FOLLOWING ICO EARNINGS DISAPPOINTMENT Houston, February 9, 2001 - In response to ICO Inc.'s earnings report issued this morning for its fiscal first quarter ended December 31, 2000, Travis Street Partners, LLC ("TSP") said it is reconsidering the terms of its proposal to purchase ICO at $2.85 per share, citing material adverse changes in ICO's financial position since the prior quarter. "We are disappointed by the drop in revenues, the 20% drop in EBITDA, the drop in cash, the drop in operating income, and the drop in earnings per common share," said Tim Gollin, a TSP manager. "We expected, at a minimum, that this quarter would be flat compared to last quarter." ICO asserted in its press release today that its financial results were "strongly improved." However, the company disclosed that EBITDA dropped from $9.8 million in the prior quarter to $7.8 million this quarter, a drop of more than 20%. In the key plastics processing segment, which represents two-thirds of ICO's revenues and assets, gross margin tumbled 25% from first quarter of FY2000, from 22.7% to 17.3%, while revenues dropped 5% in the same period. For the fiscal first quarter of FY2001, ICO lost $0.02 per share. Additionally the company's cash position has dropped by more than 20% since last quarter. 5 Less than two weeks ago, management wrote to shareholders, stating that `significant developments' were occurring at ICO and that and `dynamic growth' was imminent. "We are trying to reconcile the comments in ICO's letter with the results the company reported today," Gollin said. "We are baffled why ICO thinks these results are `strongly improved'." In a departure from prior quarters, ICO has not yet scheduled a public conference call with the investor community to discuss last quarter's financial results. "Unfortunately, we may not have an opportunity to question management about this disappointing quarter," Gollin said. ICO acquired its plastics processing business in a series of transactions which TSP believes were ill-advised, have led to increased leverage and intangible assets, and have had the result of increasing the voting power of Dr. Asher "Al" O. Pacholder and his wife, Sylvia A. Pacholder, the Company's chairman/CFO and president/CEO respectively, despite their economic ownership of less than 1% of ICO's common shares. TSP additionally has criticized ICO governance practices, as well as ICO's employment of several Pacholder relatives in key executive slots, ICO's issuance of options to members of the Pacholder family, and voting arrangements made between the Pacholders personally and parties who sold their companies to ICO and received ICO stock as a portion of the consideration. "As we've said before," Gollin added, "the Pacholders get more out of ICO than the shareholders." For fiscal year 2000, ICO management's total compensation was five times greater than its earnings per common share. TSP was formed by a group of private Houston investors to acquire ICO. TSP has made a proposal to acquire ICO at a base price of $2.85, an 82% premium to ICO's share price prior to the TSP proposal and a 185% premium to ICO's December low, plus a potential bonus payment based on the extent that ICO's performance in its fiscal first quarter outstrips its performance in the quarter ended September 30, 2000. Additionally, TSP has initiated a proxy fight to elect three directors to ICO's board. Their primary agenda, if elected, will be to press for a sale of ICO to the highest bidder. TSP has pledged that its directors will instruct the ICO audit committee to review compensation and other benefits received by Company senior management. Other information about the TSP proposal and proxy contest is available at www.travisstreetpartners.com. Shareholders wishing to provide information about their shareholdings should contact TSP by email at info@travisstreetpartners.com, providing their name, number of shares held, and contact information. * * * * * CERTAIN ADDITIONAL INFORMATION The participants in the proposed solicitation of proxies ("TSP Participants") are TSP and the following persons who are, or have funded capital contributions of, members of TSP: Chris N. O'Sullivan, Timothy J. Gollin, Christopher P. Scully, A. John Knapp, James D. Calaway, Charles T. McCord, III, a joint venture between McCord and Calaway, John V. Whiting, Freeman Capital Management LLC, Robert Whiting, Randall Grace, R. Allen Schubert and Stephen F. Martin. In aggregate, the TSP Participants beneficially own 1,158,300 shares of ICO's common stock or 5.11% of such shares outstanding (based on ICO's Annual Report on Form 10-K for the fiscal year ended September 6 30, 2000). TSP has filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) in connection with a proposed solicitation that the TSP Participants may make with respect to shareholder proxies for the 2001 Annual Meeting of Shareholders of ICO. The Preliminary Proxy Statement contains important information, including additional information about the views and members of TSP as well as the individuals that TSP intends to nominate for election to the ICO Board of Directors. You should read the Preliminary Proxy Statement in its entirety. It can be obtained at no charge on the SEC's web site at http://www.sec.gov or by requesting a copy from MacKenzie Partners, Inc., (212) 929-5500 (call collect) or (800) 322-2885 (toll-free). Except as indicated above, the information set forth in Item 4 of the Schedule 13D remains unchanged. [The remainder of this page intentionally left blank.] 7 SIGNATURES After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information contained in this Statement is true, complete and correct. Dated: February 9, 2001 TRAVIS STREET PARTNERS, LLC By: /s/ Christopher N. O'Sullivan -------------------------------------- Christopher N. O'Sullivan, Manager /s/ Timothy J. Gollin -------------------------------------- Timothy J. Gollin /s/ Christopher N. O'Sullivan -------------------------------------- Christopher N. O'Sullivan 8 -----END PRIVACY-ENHANCED MESSAGE-----