continued....
CHECKFREE HOLDINGS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
Revenues:
Processing and servicing $ 51,893 $ 42,147 $145,468 $115,093
License fees 3,593 8,116 10,005 21,411
Maintenance fees 4,112 6,644 13,314 19,904
Other 3,362 4,843 10,592 13,945
Total Revenues 62,960 61,750 179,379 170,353
Expenses:
Cost of processing,
servicing and support 36,115 34,213 107,572 94,332
Research and development 4,382 9,360 16,539 26,157
Sales, marketing and
royalties 6,713 6,692 21,945 22,002
General and administrative 7,198 5,215 21,556 15,748
Depreciation and
amortization 6,002 6,264 18,001 19,380
In process research and
development 2,201 --- 2,201 719
Charge for stock warrants --- 32,409 --- 32,409
Exclusivity amortization --- --- --- 2,963
Total Expenses 62,611 94,153 187,814 213,710
Net gain on dispositions
of assets --- 3,080 3,914 28,449
Income (loss) from operations 349 (29,323) (4,521) (14,908)
Interest, net 479 752 1,698 1,866
Income (loss) before income
taxes 828 (28,571) (2,823) (13,042)
Income tax expense (benefit) 1,136 (11,031) (12,422) (3,581)
Net income (loss) $ (308) $(17,540) $ 9,599 $ (9,461)
Basic earnings (loss) per share:
Net income (loss) per
common share $ (0.01) $ (0.32) $ 0.18 $ (0.17)
Equivalent number of
shares 51,218 55,281 52,696 54,989
Diluted earnings (loss) per share:
Net income (loss) per
common share $ (0.01) $ (0.32) $ 0.17 $ (0.17)
Equivalent number of
shares 51,218 55,281 56,117 54,989
Supplemental reconciliation of net income (loss)
and income (loss) per share:
Income (loss) before income
taxes, as reported $ 828 $(28,571) $ (2,823) $(13,042)
One time items:
Exclusivity amortization --- --- --- 2,963
In process research and
development 2,201 --- 2,201 719
Losses and charges related
to divested products --- --- 1,622 ---
Charge for stock warrants --- 32,409 --- 32,409
Charges associated with
corporate entity structuring --- --- 624 ---
Charges associated with real
estate transactions 291 --- 935 ---
Net gain on dispositions
of assets --- (3,080) (3,914) (28,449)
Adjusted income (loss)
before income taxes 3,320 758 (1,355) (5,400)
Income tax expense (benefit):
Income tax expense (benefit)
as reported 1,136 (11,031) (12,422) (3,581)
Taxes associated with one
time items 109 11,732 11,914 2,570
Adjusted income taxes 1,245 701 (508) (1,011)
Net income (loss) excluding
exclusivity amortization, in
process research and
development, losses and charges
related to divested products,
charges associated with stock
warrants, corporate entity
structuring and real estate
transactions and net gain on
dispositions of assets $ 2,075 $ 57 $ (847) $ (4,389)
Diluted net income (loss)
per common share excluding
exclusivity amortization,
in process research and
development, losses and
charges related to divested
products, charges associated
with stock warrants, corporate
entity structuring and real
estate transactions, and net
gain on dispositions
of assets $ 0.04 $ 0.00 $ (0.02) $ (0.08)
Diluted shares
outstanding assuming
no anti-dilution 55,870 57,586 52,696 54,989
CHECKFREE HOLDINGS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
March 31, June 30,
1999 1998
Current assets:
Cash, cash equivalents, and investments $ 25,624 $ 61,068
Accounts receivable, net 45,695 32,960
Assets held for sale --- 15,881
Other current assets 32,011 26,791
Total current assets 103,330 136,700
Property and equipment, net 58,087 50,920
Capitalized software and intangible
assets, net 65,128 41,861
Deferred income taxes 17,505 12,889
Other 6,640 7,742
Total assets $250,690 $250,112
Current liabilities:
Accounts payable, accrued liabilities
and other $ 35,149 $ 40,081
Deferred revenues 23,708 19,710
Total current liabilities 58,857 59,791
Long-term obligations - less current portion 6,616 6,467
Net stockholders' equity 185,217 183,854
Total liabilities and stockholders'
equity $250,690 $250,112
SOURCE: CheckFree Holdings Corporation
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