CHECKFREE HOLDINGS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Processing and
servicing $55,591 $44,162 $201,059 $159,255
License fees 5,970 7,541 15,975 28,952
Maintenance fees 4,432 5,944 17,746 25,848
Other 4,759 5,864 15,351 19,809
Total Revenues 70,752 63,511 250,131 233,864
Expenses:
Cost of processing,
servicing and
support 39,132 35,592 146,704 129,924
Research and
development 4,546 10,108 21,085 36,265
Sales, marketing and
royalties 10,409 6,837 32,354 28,839
General and
administrative 9,910 4,929 31,466 20,677
Depreciation and
amortization 6,629 5,619 24,630 24,999
In process research
and development --- --- 2,201 719
Charge for stock
warrants --- 418 --- 32,827
Exclusivity
amortization --- --- --- 2,963
Total Expenses 70,626 63,503 258,440 277,213
Net gain on
dispositions of
assets 662 7,724 4,576 36,173
Income (loss) from
operations 788 7,732 (3,733) (7,176)
Interest, net 483 966 2,181 2,832
Income (loss) before
income taxes 1,271 8,698 (1,552) (4,344)
Income tax expense
(benefit) 413 2,940 (12,009) (641)
Net Income (loss) $858 $5,758 $10,457 $(3,703)
Basic earnings (loss)
per share:
Net income (loss) per
common share $ 0.02 $ 0.10 $ 0.20 $(0.07)
Equivalent number of
shares 51,695 55,376 52,444 55,087
Diluted earnings (loss)
per share:
Net income (loss) per
common share $ 0.02 $ 0.10 $ 0.18 $(0.07)
Equivalent number of
shares 56,839 57,735 56,529 55,087
Supplemental
reconciliation of
net income (loss)
and income (loss)
per share:
Income (loss) before
income taxes, as
reported $1,271 $8,698 $(1,552) $(4,344)
One time items:
Net gain on
dispositions
of assets (662) (7,724) (4,576) (36,173)
Charges associated
with service disruption 2,681 2,681
Charges associated with
recalled secondary
offering 890 --- 890 ---
Charges associated with
corporate entity
structuring --- --- 624 ---
Charges associated with
real estate transactions 397 --- 1,332 ---
Charges for stock warrants --- 418 --- 32,827
In process research
and development --- --- 2,201 719
Losses and charges
related to divested
products --- 1,494 1,622 1,494
Exclusivity amortization --- --- --- 2,963
Adjusted income (loss)
before income taxes 4,577 2,886 3,222 (2,514)
Income tax expense
(benefit):
Income tax expense
(benefit) as reported 413 2,940 (12,009) (641)
Taxes associated with
one time items 1,323 (1,594) 13,237 976
Adjusted income taxes 1,736 1,346 1,228 335
Net income (loss)
excluding net gain on
dispositions of assets,
charges associated with
service disruption,
recalled secondary
offering, corporate entity
structuring, real estate
transactions and stock
warrants, in process
research and development,
losses and charges related
to divested products and
exclusivity
amortization. $2,841 $1,540 $1,994 $(2,849)
Diluted net income
(loss) per common share
excluding net gain on
dispositions of assets,
charges associated with
service disruption,
recalled secondary
offering, corporate
entity structuring,
real estate transactions
and stock warrants, in
process research and
development, losses
and charges related
to divested products
and exclusivity
amortization. $ 0.05 $ 0.03 $ 0.04 $(0.05)
Diluted shares
outstanding assuming
no anti-dilution 56,839 57,735 56,529 55,087
CHECKFREE HOLDINGS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
June 30, June 30,
1999 1998
Current assets:
Cash, cash equivalents, and investments $24,587 $61,068
Accounts receivable, net 45,660 32,960
Assets held for sale --- 15,881
Other current assets 14,313 26,791
Total current assets 84,560 136,700
Property and equipment, net 69,823 50,920
Capitalized software and intangible
assets, net 65,934 41,861
Deferred income taxes 21,920 12,889
Other 10,524 7,742
Total assets $ 252,761 $250,112
Current liabilities:
Accounts payable, accrued liabilities
and other $41,781 $40,081
Deferred revenues 20,195 19,710
Total current liabilities 61,976 59,791
Long-term obligations - less current portion 3,882 6,467
Net stockholders' equity 186,903 183,854
Total liabilities and stockholders'
equity $ 252,761 $250,112
SOURCE: CheckFree Holdings Corporation
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