Income Statement
CHECKFREE HOLDINGS CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
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1998 1999 1998 1999
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(IN THOUSANDS, EXCEPT PER SHARE DATA)
Revenues:
Processing and servicing............................. $ 42,147 $51,893 $115,093 $145,468
License.............................................. 8,116 3,593 21,411 10,005
Maintenance.......................................... 6,644 4,112 19,904 13,314
Other................................................ 4,843 3,362 13,945 10,592
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Total revenues............................... 61,750 62,960 170,353 179,379
Expenses:
Cost of processing, servicing and support............ 34,213 36,115 94,332 107,572
Research and development............................. 9,360 4,382 26,157 16,539
Sales and marketing.................................. 6,692 6,713 22,002 21,945
General and administrative........................... 5,215 7,198 15,748 21,556
Depreciation and amortization........................ 6,264 6,002 19,380 18,001
In-process research and development.................. -- 2,201 719 2,201
Charge for stock warrants............................ 32,409 -- 32,409 --
Exclusivity amortization............................. -- -- 2,963 --
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Total expenses............................... 94,153 62,611 213,710 187,814
Net gain on dispositions of assets..................... 3,080 -- 28,449 3,914
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Income (loss) from operations.......................... (29,323) 349 (14,908) (4,521)
Interest, net.......................................... 752 479 1,866 1,698
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Income (loss) before income taxes...................... (28,571) 828 (13,042) (2,823)
Income tax expense (benefit)........................... (11,031) 1,136 (3,581) (12,422)
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Net income (loss)...................................... $(17,540) $ (308) $ (9,461) $ 9,599
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Basic earnings per share:
Net income (loss) per common share................... $ (0.32) $ (0.01) $ (0.17) $ 0.18
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Equivalent number of shares.......................... 55,281 51,218 54,989 52,696
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Diluted earnings per share:
Net income (loss) per common share................... $ (0.32) $ (0.01) $ (0.17) $ 0.17
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Equivalent number of shares.......................... 55,281 51,218 54,989 56,117
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RESULTS OF OPERATIONS
The following table sets forth as percentages of total operating revenues,
certain consolidated statements of operations data:
THREE MONTHS NINE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
-------------- --------------
1998 1999 1998 1999
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Total Revenues:..................................... 100.0% 100.0% 100.0% 100.0%
Expenses:
Cost of processing, servicing and support......... 55.4 57.4 55.4 60.0
Research and development.......................... 15.2 7.0 15.4 9.2
Sales and marketing............................... 10.8 10.7 12.9 12.2
General and administrative........................ 8.4 11.4 9.2 12.0
Depreciation and amortization..................... 10.1 9.5 11.4 10.0
In process research and development............... 0.0 3.5 0.4 1.2
Charge for stock warrants......................... 52.5 0.0 19.0 0.0
Exclusivity amortization.......................... 0.0 0.0 1.7 0.0
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Total Expenses............................ 152.5 99.4 125.5 104.7
Net gain on disposition of assets................... 5.0 0.0 16.7 2.2
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Income (loss) from operations....................... (47.5) 0.6 (8.8) (2.5)
Interest, net....................................... 1.2 0.8 1.1 (0.9)
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Income (loss) before income taxes................... (46.3) 1.3 (7.7) (1.6)
Income tax expense (benefit)........................ (17.9) 1.8 (2.1) (6.9)
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Net income (loss)................................... (28.4)% (0.5)% (5.6)% 5.4%
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