The TriZetto Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Six Months Ended June 30,
2002 2001
Revenues
Recurring revenue $ 80,628 $ 63,656
Non-recurring revenue 45,847 35,702
Total revenues 126,475 99,358
Cost of revenues
Recurring revenue 57,252 49,005
Non-recurring revenue 28,008 21,129
Total cost of revenues 85,260 70,134
Gross profit 41,215 29,224
Operating expenses
Research and development 11,008 9,564
Selling, general and administrative 27,516 26,584
Amortization of acquisition
intangibles 13,479 34,269
Restructuring and related impairment
charges 244 --
Total operating expenses 52,247 70,417
Loss from operations (11,032) (41,193)
Interest income 676 858
Interest expense (708) (698)
Loss before benefit from income taxes (11,064) (41,033)
Benefit from income taxes 2,780 8,118
Net loss $ (8,284) $(32,915)
Net loss per share:
Basic and diluted $ (0.18) $ (0.90)
Weighted average shares outstanding:
Basic and diluted 45,007 36,535
Other financial data:
Pro forma net income (loss) (a) $ 3,930 $ (4,983)
EBITDA (b) $ 9,716 $ (748)
12-month backlog (c) $188,800 $164,500
Total backlog (d) $636,000 $520,800
(a) The Company defines pro forma net income (loss) as earnings before
amortization of acquisition intangibles and deferred stock
compensation, restructuring and related impairment charges and related
taxes.
Reconciliation of net loss to pro forma net income (loss):
Six Months Ended June 30,
2002 2001
Net loss $ (8,284) $(32,915)
Amortization of acquisition
intangibles and deferred stock
compensation 14,892 36,050
Restructuring and related impairment
charges 244 --
Benefit from income taxes, net (2,922) (8,118)
Pro forma net income (loss) $ 3,930 $ (4,983)
Pro forma net income (loss) per share:
Basic $ 0.09 $ (0.14)
Diluted $ 0.08 $ (0.14)
Pro forma weighted average shares
outstanding:
Basic 45,007 36,535
Diluted 46,627 36,535
(b) The Company defines EBITDA as earnings before interest, taxes,
depreciation and amortization, and restructuring and related
impairment charges, including amortization of deferred stock
compensation. Total depreciation, amortization and restructuring and
related impairment charges for the six months ended June 30, 2002 and
2001, were $20,748 and $40,445, 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 total backlog as total revenue not yet
recognized from recurring revenue and non-recurring software licenses
from existing contracts.
The TriZetto Group, Inc.
Consolidated Statements of Operations
EBITDA Presentation
(unaudited and in thousands, except per share amounts)
Six Months Ended June 30,
2002 2001
Revenues
Recurring revenue $ 80,628 $ 63,656
Non-recurring revenue 45,847 35,702
Total revenues 126,475 99,358
Cost of revenues
Recurring revenue 52,937 46,284
Non-recurring revenue 27,358 20,499
Total cost of revenues 80,295 66,783
Gross profit 46,180 32,575
Operating expenses
Research and development 10,902 9,437
Selling, general and administrative 25,562 23,886
36,464 33,323
EBITDA 9,716 (748)
Operating depreciation and amortization 5,612 4,395
Amortization of deferred stock compensation 1,413 1,781
Amortization of acquisition intangibles 13,479 34,269
Restructuring and related impairment
charges 244 --
20,748 40,445
Loss from operations (11,032) (41,193)
Interest income 676 858
Interest expense (708) (698)
Loss before benefit from income taxes (11,064) (41,033)
Benefit from income taxes 2,780 8,118
Net loss $ (8,284) $(32,915)
The TriZetto Group, Inc.
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
June 30, December 31,
2002 2001
Assets
Current assets:
Cash, restricted cash, and
investments $ 92,649 $ 84,633
Accounts receivable, net 31,825 32,223
Prepaid expenses and other current
assets 14,619 12,676
Total current assets 139,093 129,532
Property and equipment, net 39,165 34,867
Other assets 21,967 14,620
Goodwill and other intangible assets, net 204,901 211,702
Total assets $405,126 $390,721
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 9,951 $ 8,109
Short-term note payable and capital
lease obligations 20,860 19,607
Other accrued liabilities 74,643 55,671
Total current liabilities 105,454 83,387
Deferred taxes 11,276 13,751
Other long-term obligations 13,351 12,628
Total liabilities 130,081 109,766
Total stockholders' equity 275,045 280,955
Total liabilities and stockholders'
equity $405,126 $390,721