The TriZetto(R) Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended
December 31, December 31,
2000 1999
Revenues
Recurring $23,230 $7,608
Non-recurring 10,943 3,584
Total revenues 34,173 11,192
Cost of revenues
Recurring 19,106 6,813
Non-recurring 8,509 3,120
Total cost of revenues 27,615 9,933
Gross profit 6,558 1,259
Operating expenses
Research and development 3,811 1,199
Selling, general and administrative 25,971 4,527
Write-off of acquired in-process technology 890 923
Total operating expenses 30,672 6,649
Loss from operations (24,114) (5,390)
Interest income 472 407
Interest expense (235) (81)
Loss before benefit for income taxes (23,877) (5,064)
Benefit for income taxes (5,848) (32)
Net loss $(18,029) $(5,032)
Net loss per share:
Basic $(0.53) $(0.29)
Diluted $(0.53) $(0.29)
Other financial data:
Pro forma net loss (a) $(8,517) $(3,201)
EBITDA (b) $(6,927) $(2,848)
12-month backlog (c) $126,000 N/A
Total backlog (d) $413,000 N/A
Shares used in computing net loss
and pro forma net loss per share:
Basic 33,823 17,575
Diluted 33,823 17,575
(a) The Company defines pro forma net loss as earnings before amortization
of acquisition intangibles and deferred stock compensation, write-off
of in-process research and development and income tax related
benefits. Approximately $9 million of fourth quarter 2000 revenue
forecasted by Erisco and RIMS has not been recognized by TriZetto in
the quarter under generally accepted accounting principles and is not
included in the pro forma net loss calculation. Amortization of
acquisition intangibles and deferred stock compensation for the
three months ended December 31, 2000 and 1999 were $14,470,000 and
$940,000, respectively.
(b) The Company defines EBITDA as Earnings Before Interest, Taxes,
Depreciation, Amortization and Write-off of acquired in-process
technology. Total Depreciation and Amortization for the three months
ended December 31, 2000 and 1999 was $16,297,000 and $1,619,000,
respectively.
(c) The Company defines 12-month backlog as minimum recurring revenue and
non-recurring software licenses from existing contracts to be
recognized over the next 12 months.
(d) The Company defines backlog as total revenue not yet recognized from
recurring revenue and non-recurring software licenses from existing
contracts.
The TriZetto(R) Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Year Ended
December 31, December 31,
2000 1999
Revenues
Recurring $61,811 $19,448
Non-recurring 27,245 13,478
Total revenues 89,056 32,926
Cost of revenues
Recurring 54,930 17,350
Non-recurring 20,089 10,037
Total cost of revenues 75,019 27,387
Gross profit 14,037 5,539
Operating expenses
Research and development 8,463 2,394
Selling, general and administrative 52,766 10,149
Write-off of acquired in-process technology 1,426 1,407
Total operating expenses 62,655 13,950
Loss from operations (48,618) (8,411)
Interest income 1,394 527
Interest expense (882) (256)
Loss before benefit for income taxes (48,106) (8,140)
Benefit for income taxes (5,848) (213)
Net loss $(42,258) $(7,927)
Net loss per share:
Basic $(1.80) $(0.85)
Diluted $(1.80) $(0.85)
Other financial data:
Pro forma net loss (a) $(25,683) $(4,893)
EBITDA (b) $(21,376) $(3,540)
12-month backlog (c) $126,000 N/A
Total backlog (d) $413,000 N/A
Shares used in computing net loss and pro forma
net loss per share:
Basic 23,482 9,376
Diluted 23,482 9,376
(a) The Company defines pro forma net loss as earnings before one-time
charges, amortization of acquisition intangibles and deferred stock
compensation, write-off of in-process research and development and
income tax related benefits. Approximately $9 million of fourth
quarter 2000 revenue forecasted by Erisco and RIMS has not been
recognized by TriZetto in the quarter under generally accepted
accounting principles and is not included in the pro forma net loss
calculation. Amortization of acquisition intangibles and deferred
stock compensation for the twelve months ended December 31, 2000 and
1999 were $20,554,000 and $1,840,000 respectively. One-time
charges for the twelve months ended December 31, 2000 and 1999 were
$433,000 and $0, respectively.
(b) The Company defines EBITDA as Earnings Before Interest, Taxes,
Depreciation, Amortization and Write-off of acquired in-process
technology. Total Depreciation and Amortization for the twelve
months ended December 31, 2000 and 1999 was $25,816,000 and
$3,464,000 respectively.
(c) The Company defines 12-month backlog as minimum recurring revenue and
non-recurring software licenses from existing contracts to be
recognized over the next 12 months.
(d) The Company defines backlog as total revenue not yet recognized from
recurring revenue and non-recurring software licenses from existing
contracts.
The TriZetto(R) Group, Inc.
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
December 31, December 31,
2000 1999
ASSETS
Current assets:
Cash, cash equivalents
and short-term investments $28,384 $24,806
Accounts receivable, net 18,102 8,228
Prepaid expenses and other current assets 7,433 2,241
Total current assets 53,919 35,275
Property and equipment, net 25,623 10,797
Long-term investments -- 1,230
Other assets 2,602 790
Goodwill and other intangible assets, net 281,607 20,326
Total assets $363,751 $68,418
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term note payable
and capital lease obligations $14,818 $1,857
Accounts payable 9,502 3,102
Other accrued liabilities 37,440 9,435
Total current liabilities 61,760 14,394
Deferred Taxes 25,141 --
Other long-term obligations 7,420 2,728
Total liabilities 94,321 17,122
Total stockholders' equity 269,430 51,296
Total liabilities and stockholders' equity $363,751 $68,418