The TriZetto(R) Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended Three Months Ended
June 30, 2001 June 30, 2000
Revenues
Recurring $33,333 $12,377
Non-recurring 19,986 5,382
Total revenues 53,319 17,759
Cost of revenues
Recurring 24,736 11,505
Non-recurring 11,473 3,827
Total cost of revenues 36,209 15,332
Gross profit 17,110 2,427
Operating expenses
Research and development 4,721 1,575
Selling, general and
administrative 30,556 9,691
Total operating expenses 35,277 11,266
Loss from operations (18,167) (8,839)
Interest income 450 346
Interest expense (364) (156)
Loss before benefit
from income taxes (18,081) (8,649)
Benefit from income taxes 3,100 --
Net loss $(14,981) $(8,649)
Net loss per share:
Basic and diluted $(0.40) $(0.43)
Shares used in computing net loss per share:
Basic and diluted 37,298 20,225
Other financial data:
Pro forma net loss (a) $(184) $(6,108)
EBITDA (b) $2,061 $(5,643)
12-month backlog (c) $164,400 $53,000
Total backlog (d) $520,800 $175,000
(a) The Company defines pro forma net loss as earnings before
amortization of acquisition-related intangibles and deferred stock
compensation, write-offs of in-process research and development
costs, one-time charges and income tax related benefits. Amortization of
acquisition-related intangibles and deferred stock compensation for
the three months ended June 30, 2001 and 2000, were $17,897 and
$2,098, respectively.
(b) The Company defines EBITDA as earnings before interest, taxes,
depreciation, amortization and write-offs of acquired in-process
technology. Total depreciation and amortization for the three months
ended June 30, 2001 and 2000, were $20,228 and $3,196, 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(R) Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Six Months Ended Six Months Ended
June 30, 2001 June 30, 2000
Revenues
Recurring $63,656 $24,344
Non-recurring 35,702 11,132
Total revenues 99,358 35,476
Cost of revenues
Recurring 49,006 22,871
Non-recurring 21,129 7,898
Total cost of revenues 70,135 30,769
Gross profit 29,223 4,707
Operating expenses
Research and development 9,564 3,215
Selling, general and
administrative 60,852 17,912
Write-off of acquired
in-process technology -- 536
Total operating expenses 70,416 21,663
Loss from operations (41,193) (16,956)
Interest income 858 609
Interest expense (698) (183)
Loss before benefit
from income taxes (41,033) (16,530)
Benefit from income taxes 8,118 --
Net loss $(32,915) $(16,530)
Net loss per share:
Basic and diluted $(0.90) $(0.85)
Shares used in computing net loss per share:
Basic and diluted 36,535 19,557
Other financial data:
Pro forma net loss (a) $(4,983) $(11,362)
EBITDA (b) $(748) $(10,032)
12-month backlog (c) $164,400 $53,000
Total backlog (d) $520,800 $175,000
(a) The Company defines pro forma net loss as earnings before
amortization of acquisition-related intangibles and deferred stock
compensation, write-offs of in-process research and development
costs, one-time charges and income tax related benefits. Amortization of
acquisition-related intangibles and deferred stock compensation for the
six months ended June 30, 2001 and 2000, were $36,050 and $4,190,
respectively.
(b) The Company defines EBITDA as earnings before interest, taxes,
depreciation, amortization and write-offs of acquired in-process
technology. Total depreciation and amortization for the six months ended
June 30, 2001 and 2000, were $40,445 and $6,388, 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(R) Group, Inc.
Consolidated Statements of Operations
EBITDA Presentation
(unaudited and in thousands, except per share amounts)
Three Months Ended Three Months Ended
June 30, 2001 June 30, 2000
Revenues
Recurring $33,333 $12,377
Non-recurring 19,986 5,382
Total revenues 53,319 17,759
Cost of revenues
Recurring 23,202 11,007
Non-recurring 11,101 3,539
Total cost of revenues 34,303 14,546
Gross profit 19,016 3,213
Operating expenses
Research and development 4,657 1,566
Selling, general and
administrative 12,298 7,290
Total operating expenses 16,955 8,856
EBITDA 2,061 (5,643)
Operating depreciation and
amortization 2,331 1,098
Amortization of deferred stock
compensation 912 428
Amortization of acquisition
intangibles 16,985 1,670
20,228 3,196
Loss from operations (18,167) (8,839)
Interest income 450 346
Interest expense (364) (156)
Loss before benefit
from income taxes (18,081) (8,649)
Benefit from income taxes 3,100 --
Net loss $(14,981) $(8,649)
Net loss per share:
Basic and diluted $(0.40) $(0.43)
Pro forma net loss per share:
Basic and diluted $(0.00) $(0.30)
The TriZetto(R) Group, Inc.
Consolidated Statements of Operations
EBITDA Presentation
(unaudited and in thousands, except per share amounts)
Six Months Ended Six Months Ended
June 30, 2001 June 30, 2000
Revenues
Recurring $63,656 $24,344
Non-recurring 35,702 11,132
Total revenues 99,358 35,476
Cost of revenues
Recurring 46,286 21,927
Non-recurring 20,497 7,294
Total cost of revenues 66,783 29,221
Gross profit 32,575 6,255
Operating expenses
Research and development 9,437 3,197
Selling, general and
administrative 23,886 13,090
Total operating expenses 33,323 16,287
EBITDA (748) (10,032)
Operating depreciation and
amortization 4,395 2,198
Amortization of deferred stock
compensation 1,781 892
Write off of in-process research
and development -- 536
Amortization of acquisition
intangibles 34,269 3,298
40,445 6,924
Loss from operations (41,193) (16,956)
Interest income 858 609
Interest expense (698) (183)
Loss before benefit
from income taxes (41,033) (16,530)
Benefit from income taxes 8,118 --
Net loss $(32,915) $(16,530)
Net loss per share:
Basic and diluted $(0.90) $(0.85)
Pro forma net loss per share:
Basic and diluted $(0.14) $(0.58)
The TriZetto(R) Group, Inc.
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
June 30, December 31,
2001 2000
ASSETS
Current assets:
Cash, restricted cash, and
short-term investments $76,554 $28,384
Accounts receivable, net 31,418 18,102
Prepaid expenses and other current assets 5,792 7,433
Total current assets 113,764 53,919
Property and equipment, net 29,845 25,623
Other assets 5,270 2,602
Goodwill and other intangible assets, net 255,510 281,607
Total assets $404,389 $363,751
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,049 $9,502
Short-term note payable and
capital lease obligations 16,565 14,555
Other accrued liabilities 56,529 37,703
Total current liabilities 79,143 61,760
Deferred taxes 18,536 25,141
Other long-term obligations 6,784 7,420
Total liabilities 104,463 94,321
Total stockholders' equity 299,926 269,430
Total liabilities and
stockholders' equity $404,389 $363,751