SC 13D/A 1 body.txt JDL CAPITAL SC13D/A #2 7-20-2005 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D (RULE 13D-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13D-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(A) (Amendment No. 2)* QUIPP, INC. ---------------- (Name of Issuer) Common Stock, par value $.01 per share ---------------------------------------- (Title of Class of Securities) 748802105 --------------- (CUSIP Number) JDL Capital, LLC 106 Seventh Street, Suite 202 Garden City, New York 11530 Attention: John D. Lori Telephone: (516) 873-6973 With a copy to: Matthew J. Day, Esq. 118 E. 25th Street, Eighth Floor New York, NY 10010 Telephone: (212) 673-0484 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) July 20, 2005 ------------------------------------------------------- (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 Rule 13d-1(e), 13d-1(f) or 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 Rule 13d-7(b) for other parties to whom copies are to be sent. (Page 1 of 11 Pages) * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes.) ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 2 of 11 Pages ---------------------------- ---------------------- -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) JDL Capital, LLC -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [_] (b) [_] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS AF -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [_] -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF 0 SHARES -------------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 142,000 EACH -------------------------------------------------------- REPORTING 9. SOLE DISPOSITIVE POWER PERSON 0 WITH -------------------------------------------------------- 10. SHARED DISPOSITIVE POWER 142,000 -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 142,000 -------------------------------------------------------------------------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES [_] CERTAIN SHARES* -------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.97% -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON * OO -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 3 of 11 Pages ---------------------------- ---------------------- -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) JDL Partners, LP -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [_] (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 Delaware -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF 0 SHARES -------------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 142,000 EACH -------------------------------------------------------- REPORTING 9. SOLE DISPOSITIVE POWER PERSON 0 WITH -------------------------------------------------------- 10. SHARED DISPOSITIVE POWER 142,000 -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 142,000 -------------------------------------------------------------------------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES [_] CERTAIN SHARES* -------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.97% -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON * PN -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 4 of 11 Pages ---------------------------- ---------------------- -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) John D. Lori -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [_] (b) [_] -------------------------------------------------------------------------------- 3. SEC USE ONLY -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS AF -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF 0 SHARES -------------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 142,000 EACH -------------------------------------------------------- REPORTING 9. SOLE DISPOSITIVE POWER PERSON 0 WITH -------------------------------------------------------- 10. SHARED DISPOSITIVE POWER 142,000 -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 142,000 -------------------------------------------------------------------------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES [_] CERTAIN SHARES* -------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.97% -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON * IN -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 5 of 11 Pages ---------------------------- ---------------------- STATEMENT ON SCHEDULE 13D/A --------------------------- AMENDMENT NO. 2 --------------- This Amendment No. 2 to the Statement on Schedule 13D is filed on behalf of the Filing Parties with the Securities and Exchange Commission (the "Commission"). This Amendment No. 2 amends the Statement on Schedule 13D/A Amendment No. 1 (the "Restated Statement," and as so amended, this "Statement") filed with the Commission on behalf of the Filing Parties on June 27, 2005 as set forth herein. Terms not defined herein shall have the definitions ascribed to them in the Restated Statement unless the context otherwise requires. Item 3 is hereby amended and restated to read as follows: ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The aggregate purchase price of the 142,000 shares of Common Stock owned by JDL Partners is $1,788,129, including brokerage fees and commissions. The shares of Common Stock owned by JDL Partners were acquired with partnership funds. Item 4 is hereby amended to add the following: ITEM 4. PURPOSE OF TRANSACTION. On July 25, 2005, JDL Partners delivered a letter to the Issuer ("July 25th Letter") setting forth its willingness to immediately enter into negotiations to acquire the Issuer for $14 per share in cash (or possibly more depending on the results of its due diligence review), subject to certain conditions set forth therein, a 17% increase over its prior $12 per share proposal, and a 20% premium over Friday's $11.65 closing price. JDL Partners' improved proposal represents a premium of 41% over the Issuer's closing price on June 23, 2005 (the date of the last trade prior to JDL Partners' initial proposal) and a premium of 27% over the Issuer's average closing price for the past 60 trading days. Based on the financial results of the Issuer's last four reported quarters, JDL Partners' proposal values the Issuer at 21.4x EBIT. According to the Piper Jaffray M&A Monitor, this multiple is nearly double the 11.6x average EBIT multiple for domestic transactions with a value of $25 million or less for the first half of 2005. The proposal is conditioned upon the satisfactory completion of customary due diligence, obtaining all necessary consents and approvals, amendment of the stockholders rights agreement, waiver of any other anti-takeover provisions in the Company's organizational documents and Florida law, and the execution of a definitive agreement in a form acceptable to JDL Partners. The proposal is not subject to a financing condition. The July 25th Letter is filed as Exhibit (c) hereto and incorporated herein by reference. Item 5 is hereby amended and restated to read as follows: ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. (a)-(b) The aggregate number of shares of Common Stock and percentage of the outstanding Common Stock of the Issuer beneficially owned (i) by each of the Filing Parties, and (ii) to the knowledge of the Filing Parties, by each other person who may be deemed to be a member of a group, is as follows:

* Based on 1,423,775 shares of Common Stock outstanding as of May 5, 2005, as disclosed in the Issuer's Quarterly Report on Form 10-Q, for the quarter ended March 31, 2005. (1) JDL Capital and Mr. Lori disclaim beneficial ownership of the securities held by JDL Partners, except to the extent of any pecuniary interest therein. ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 6 of 11 Pages ---------------------------- ---------------------- (c) Since the most recent filing on Schedule 13D on June 27, 2005, the Filing Parties effected no transactions in shares of Common Stock other than those set forth on Schedule I attached hereto. (d) No person other than the Filing Parties is known to have the right to receive, or the power to direct the receipt of dividends from, or the proceeds from the sale of, such shares of Common Stock. Item 7 is hereby amended to add the following: ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. The following document(s) is (are) filed herewith: (c) Letter dated July 25, 2005 from JDL Partners, LP to Ms. Christina H. Kepner, Chairman of the Board of Directors of Quipp, Inc. ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 7 of 11 Pages ---------------------------- ---------------------- SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. July 25, 2005 JDL PARTNERS, LP By: JDL Capital, LLC, General Partner By: /s/ John D. Lori ----------------------------- John D. Lori, Managing Member JDL CAPITAL, LLC By: /s/ John D. Lori ----------------------------- John D. Lori, Managing Member /s/ John D. Lori ----------------------------- John D. Lori ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 8 of 11 Pages ---------------------------- ----------------------

All of the shares of Common Stock set forth above were purchased in the open market. ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 9 of 11 Pages ---------------------------- ---------------------- EXHIBIT INDEX ------------- The following exhibits have been previously filed or are filed herewith: Exhibit Page (a) Joint Filing Agreement dated as of June 27, 2005 Previously filed by and among JDL Partners, LP, JDL Capital, LLC and John D. Lori. (b) Letter dated June 27, 2005 from JDL Partners, LP Previously filed to Quipp, Inc. (c) Letter dated July 25, 2005 from JDL Partners, LP 10 to Ms. Christina H. Kepner, Chairman of the Board of Directors of Quipp, Inc. ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 10 of 11 Pages ---------------------------- ---------------------- JDL Partners, LP VIA FACSIMILE AND ------------------- U.S. MAIL ---------- July 25, 2005 Ms. Christina H. Kepner Chairman of the Board Quipp, Inc. 4800 N.W. 157 Street Miami, FL 33014 Dear Ms. Kepner: JDL Partners, LP ("JDL Partners") is the owner of 142,000 shares of Common Stock of Quipp, Inc. ("Quipp" or the "Company"), representing approximately 9.97% of the total number of shares outstanding. JDL Partners has received your letter dated July 20, 2005. After further consideration, and our review of publicly available information, we hereby set forth our willingness to immediately enter into negotiations to acquire Quipp for $14 per share in cash (or possibly more depending on the results of our due diligence review), a 17% increase over our prior $12 per share proposal, and a 20% premium over Friday's $11.65 closing price. We believe that our improved proposal provides significant value to Quipp's shareholders. Our improved proposal represents a premium of 41% over Quipp's closing price on June 23, 2005 (the date of the last trade prior to JDL Partners' initial proposal) and a premium of 27% over Quipp's average closing price for the past 60 trading days. Based on the financial results of Quipp's last four reported quarters, our proposal values the Company at 21.4x EBIT. According to the Piper Jaffray M&A Monitor, this multiple is nearly double the 11.6x average EBIT multiple for domestic transactions with a value of $25 million or less for the first half of 2005. Our proposal is conditioned upon the satisfactory completion of due diligence, obtaining all necessary consents and approvals, amendment of the stockholders rights agreement, waiver of any other anti-takeover provisions in the Company's organizational documents and Florida law, and the execution of a definitive agreement in a form acceptable to JDL Partners. Our proposal is not subject to a financing condition. We are prepared to enter into a customary confidentiality agreement with Quipp and commence due diligence immediately with a view towards consummating our proposal as quickly as possible. Once again, we stand ready to discuss with the Board of Directors any aspect of our proposal. We believe that it is incumbent upon the Board of Directors in the exercise of its fiduciary duties to shareholders to seriously investigate our proposal as it would provide significant value to all shareholders of Quipp by permitting them to receive cash for a thinly-traded security. We believe that it would be extremely difficult for a shareholder to dispose of a large block of stock anywhere near Friday's closing price as the average daily trading volume for the past three months is a mere 1,492 shares. Should you again assert that our proposed offer amount is below the amount that would cause you to entertain further discussion, we would like to know what that amount is and the basis for its calculation. Please contact John D. Lori at the telephone number set forth above or Matthew J. Day, Esq. at (212) 673-0484 to discuss any questions you may have or if we can provide you with any additional information regarding JDL Partners or our proposal. 106 SEVENTH STREET, SUITE 202, GARDEN CITY, NY 11530 (516) 873-6973 FAX (516) 873-6975 JOHN@JDLPARTNERSLP.COM ---------------------- ---------------------------- ---------------------- CUSIP NO. 748802105 13D Page 11 of 11 Pages ---------------------------- ---------------------- We look forward to hearing from you at your earliest convenience. Sincerely, JDL PARTNERS, LP By: JDL Capital, LLC, General Partner By: /s/ John D. Lori ----------------------------- John D. Lori, Managing Member cc: Mr. Michael S. Kady Quipp, Inc. Mr. William S. Berno Mr. Paul Gambal Mr. Scott L. Barbee Aegis Value Fund, Inc. Joel C. Tillinghast Fidelity Low Priced Stock Fund Dr. Michael J. Burry Scion Capital, LLC Mr. Daniel Asher Pyramid Trading Limited Partnership

QUIPP INC SC 13D/A