The following unaudited pro forma combined condensed consolidated financial statements give effect to the Junglee Merger. The Junglee Merger was accounted for under the purchase method of accounting in accordance with APB Opinion No. 16. Under the purchase method of accounting, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Estimates of the fair values of the assets and liabilities of Junglee have been combined with the recorded values of the assets and liabilities of Amazon.com in the unaudited pro forma combined condensed consolidated financial statements.
The unaudited pro forma combined condensed consolidated balance sheet has been prepared to reflect the Junglee Merger as if it occurred on June 30, 1998. The unaudited pro forma combined condensed consolidated statements of operations reflect the results of operations of Amazon.com and Junglee for the year ended December 31, 1997 and the six months ended June 30, 1998 as if the Junglee Merger occurred on January 1, 1997.
The unaudited pro forma combined condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the combined condensed consolidated financial position or results of operations in future periods or the results that actually would have been realized had Amazon.com and Junglee been a combined company during the specified periods. The unaudited pro forma combined condensed consolidated financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read in conjunction with, the historical consolidated financial statements of Amazon.com, included in its Annual Report on Form 10-K for the year ended December 31, 1997 and Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 1998 and June 30, 1998 and the Company's Current Reports on Form 8-K filed August 27, 1998 and September 11, 1998.
PRO FORMA COMBINED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA
AMAZON.COM JUNGLEE ADJUSTMENTS PRO FORMA
--------- --------- ---------- ---------
Net sales ....................................... $ 147,787 $ 1,216 $ -- $ 149,003
Cost of sales ................................... 118,969 579 -- 119,548
--------- --------- --------- ---------
Gross profit .................................... 28,818 637 29,455
Operating expenses:
Marketing and sales ........................... 40,486 1,545 -- 42,031
Product development ........................... 13,916 2,777 -- 16,693
General and administrative .................... 7,011 637 -- 7,648
Merger and acquisition related costs .......... -- -- 58,435(c) 58,435
--------- --------- --------- ---------
Total operating expenses .................... 61,413 4,959 58,435 124,807
Loss from operations ............................ (32,595) (4,322) (58,435) (95,352)
Interest income ................................. 1,901 156 -- 2,057
Interest expense ................................ (326) (34) -- (360)
--------- --------- --------- ---------
Net loss ........................................ $ (31,020) $ (4,200) $ (58,435) $ (93,655)
========= ========= ========= =========
Pro forma basic and diluted loss per share ...... $ (0.71) $ (2.09)
========= =========
Shares used in computation of pro forma basic and
diluted loss per share ........................ 43,447 44,803
========= =========
See accompanying notes.
PRO FORMA COMBINED CONDENSED CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA
AMAZON.COM JUNGLEE ADJUSTMENTS PRO FORMA
---------- --------- ----------- ---------
ASSETS
Current Assets:
Cash ............................................... $ 7,462 $ 4,031 $ -- $ 11,493
Marketable securities .............................. 337,396 -- -- 337,396
Inventories ........................................ 17,035 -- -- 17,035
Prepaid expenses and other ......................... 12,722 936 -- 13,658
--------- --------- --------- ---------
Total current assets ....................... 374,615 4,967 -- 379,582
Fixed assets, net .................................... 15,587 1,002 -- 16,589
Deposits and other ................................... 286 181 -- 467
Goodwill and other purchased intangibles, net ........ 52,398 -- 176,982(c) 229,380
Deferred charges ..................................... 7,622 -- -- 7,622
--------- --------- --------- ---------
Total assets ............................... $ 450,508 $ 6,150 $ 176,982 $ 633,640
========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable ................................... $ 47,818 $ 465 $ -- $ 48,283
Accrued advertising ................................ 9,971 -- -- 9,971
Other liabilities and accrued expenses ............. 14,197 2,748 4,541(a),(c) 21,486
Current portion of long-term debt .................. 684 200 -- 884
--------- --------- --------- ---------
Total current liabilities .................. 72,670 3,413 4,541 80,624
Long-term portion of debt ............................ 332,225 76 -- 332,301
Long-term portion of capital lease obligation ........ 181 -- -- 181
Stockholders' Equity:
Preferred stock, common stock and additional paid-in
capital ......................................... 117,230 13,369 164,059(a) 294,658
Note receivable from officer ....................... -- (1,249) -- (1,249)
Deferred compensation .............................. (1,301) (277) -- (1,578)
Other gains (losses) ............................... (35) -- -- (35)
Accumulated deficit ................................ (70,462) (9,182) 8,382(b),(c) (71,262)
--------- --------- --------- ---------
Total stockholders' equity ................. 45,432 2,661 172,441 220,534
--------- --------- --------- ---------
Total liabilities and stockholders'
equity ............................. $ 450,508 $ 6,150 $ 176,982 $ 633,640
========= ========= ========= =========
See accompanying notes.
PRO FORMA COMBINED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA
AMAZON.COM JUNGLEE ADJUSTMENTS PRO FORMA
---------- --------- ----------- ---------
Net sales ....................................... $ 203,405 $ 1,398 $ -- $ 204,803
Cost of sales ................................... 157,856 1,296 -- 159,152
--------- --------- --------- ---------
Gross profit .................................... 45,549 102 -- 45,651
Operating expenses:
Marketing and sales ........................... 47,005 2,510 -- 49,515
Product development ........................... 16,152 1,216 -- 17,368
General and administrative .................... 5,364 691 -- 6,055
Merger and acquisition related costs .......... 5,413 -- 29,217(c) 34,630
--------- --------- --------- ---------
Total operating expenses .................... 73,934 4,417 29,217 107,568
Loss from operations ............................ (28,385) (4,315) (29,217) (61,917)
Interest income ................................. 5,036 98 -- 5,134
Interest expense ................................ (9,599) (23) -- (9,622)
--------- --------- --------- ---------
Net loss ........................................ $ (32,948) $ (4,240) $ (29,217) $ (66,405)
========= ========= ========= =========
Pro forma basic and diluted loss per share ...... $ (0.69) $ (1.35)
========= =========
Shares used in computation of pro forma basic and
diluted loss per share ........................ 47,934 49,347
========= =========
See accompanying notes. |
