The TriZetto Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended March 31,
2002 2001
Revenues
Recurring revenue $ 39,784 $ 30,323
Non-recurring revenue 19,910 15,716
Total revenues 59,694 46,039
Cost of revenues
Recurring revenue 28,205 24,271
Non-recurring revenue 12,194 9,656
Total cost of revenues 40,399 33,927
Gross profit 19,295 12,112
Operating expenses
Research and development 5,431 4,844
Selling, general and administrative 19,746 30,294
Write-off of acquired in-process
technology -- --
Restructuring and related
impairment charges 79 --
Total operating expenses 25,256 35,138
Loss from operations (5,961) (23,026)
Interest income 325 408
Interest expense (368) (334)
Loss before benefit from income taxes (6,004) (22,952)
Benefit from income taxes 1,390 5,018
Net loss $ (4,614) $ (17,934)
Net loss per share:
Basic and diluted $ (0.10) $ (0.50)
Weighted average shares outstanding:
Basic and diluted 44,919 35,764
Other financial data:
Pro forma net income (loss) (a) $ 1,323 $ (4,799)
EBITDA (b) $ 4,109 $ (2,809)
12-month backlog (c) $ 175,000 $ 134,000
Total backlog (d) $ 629,600 $ 420,500
See footnote definitions.
(a) The Company defines pro forma net income (loss) as earnings
before amortization of acquisition-related intangibles and
deferred stock compensation, write-offs of in-process research
and development costs, restructuring and related impairment
charges and related taxes.
Reconciliation of net loss to pro forma net income (loss):
Net loss $ (4,614) $ (17,934)
Amortization of acquisition-related
intangibles and deferred stock
compensation 7,319 18,153
Restructuring and related impairment charges 79 --
Write-off of acquired in-process technology -- --
Benefit from income taxes, net (1,461) (5,018)
Pro forma net income (loss) $ 1,323 $ (4,799)
Pro forma net income (loss) per share:
Basic $ 0.03 $ (0.13)
Diluted $ 0.03 $ (0.13)
Pro forma weighted average shares outstanding:
Basic 44,919 35,764
Diluted 46,832 35,764
(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 three months ended March
31, 2002 and 2001, were $10,070 and $20,217, 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)
Three Months Ended March 31,
2002 2001
Revenues
Recurring revenue $ 39,784 $ 30,323
Non-recurring revenue 19,910 15,716
Total revenues 59,694 46,039
Cost of revenues
Recurring revenue 26,139 23,083
Non-recurring revenue 11,860 9,398
Total cost of revenues 37,999 32,481
Gross profit 21,695 13,558
Operating expenses
Research and development 5,376 4,781
Selling, general and administrative 12,210 11,586
17,586 16,367
EBITDA 4,109 (2,809)
Operating depreciation and amortization 2,672 2,064
Amortization of deferred stock compensation 837 869
Amortization of acquisition intangibles 6,482 17,284
Write-off of in-process technology -- --
Restructuring and related impairment charges 79 --
10,070 20,217
Loss from operations (5,961) (23,026)
Interest income 325 408
Interest expense (368) (334)
Loss before benefit from income taxes (6,004) (22,952)
Benefit from income taxes 1,390 5,018
Net loss $ (4,614) $ (17,934)
The TriZetto Group, Inc.
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
March 31, December 31,
2002 2001
Assets
Current assets:
Cash, restricted cash, and investments $ 88,621 $ 84,633
Accounts receivable, net 31,750 32,223
Prepaid expenses and other current assets 14,479 12,676
Total current assets 134,850 129,532
Property and equipment, net 35,476 34,867
Other assets 17,785 14,620
Goodwill and other intangible assets, net 205,049 211,702
Total assets $ 393,160 $ 390,721
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 5,208 $ 8,109
Short-term note payable and capital
lease obligations 17,401 19,607
Other accrued liabilities 69,573 55,671
Total current liabilities 92,182 83,387
Deferred taxes 12,550 13,751
Other long-term obligations 11,183 12,628
Total liabilities 115,915 109,766
Total stockholders' equity 277,245 280,955
Total liabilities and stockholders'
equity $ 393,160 $ 390,721