The TriZetto(R) Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended Three Months Ended
September 30, 2001 September 30, 2000
Revenues
Recurring $ 39,407 $ 14,237
Non-recurring 17,809 5,170
Total revenues 57,216 19,407
Cost of revenues
Recurring 27,701 12,953
Non-recurring 10,091 3,682
Total cost of revenues 37,792 16,635
Gross profit 19,424 2,772
Operating expenses
Research and development 3,768 1,436
Selling, general and
administrative 29,354 8,884
Total operating expenses 33,122 10,320
Loss from operations (13,698) (7,548)
Interest income 815 315
Interest expense (282) (466)
Loss before benefit
from income taxes (13,165) (7,699)
Benefit from income taxes 1,561 --
Net loss $(11,604) $ (7,699)
Net loss per share:
Basic and diluted $ (0.27) $ (0.37)
Shares used in computing net loss per share:
Basic and diluted 43,356 20,908
Other financial data:
Pro forma net income (loss) (a) $ 4,680 $ (5,805)
EBITDA (b) $ 6,550 $ (4,419)
12-month backlog (c) $165,000 $ 64,400
Total backlog (d) $524,000 $235,000
(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, one-time charges and related taxes. Amortization of
acquisition-related intangibles and deferred stock compensation for
the three months ended September 30, 2001 and 2000, were $17,886 and
$1,894, respectively.
(b) The Company defines EBITDA as earnings before interest, taxes,
depreciation and amortization, including amortization of deferred
stock compensation. Total depreciation and amortization for the
three months ended September 30, 2001 and 2000, were $20,248 and
$3,129, 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)
Nine Months Ended Nine Months Ended
September 30, 2001 September 30, 2000
Revenues
Recurring $103,063 $ 38,581
Non-recurring 53,511 16,302
Total revenues 156,574 54,883
Cost of revenues
Recurring 76,707 35,824
Non-recurring 31,219 11,580
Total cost of revenues 107,926 47,404
Gross profit 48,648 7,479
Operating expenses
Research and development 13,332 4,651
Selling, general and
administrative 90,207 26,796
Write-off of acquired
in-process technology -- 536
Total operating expenses 103,539 31,983
Loss from operations (54,891) (24,504)
Interest income 1,670 922
Interest expense (977) (647)
Loss before benefit
from income taxes (54,198) (24,229)
Benefit from income taxes 9,679 --
Net loss $(44,519) $(24,229)
Net loss per share:
Basic and diluted $ (1.15) $ (1.21)
Shares used in computing net loss per share:
Basic and diluted 38,834 20,010
Other financial data:
Pro forma net loss (a) $ (303) $(17,166)
EBITDA (b) $ 5,802 $(14,449)
12-month backlog (c) $165,000 $ 64,400
Total backlog (d) $524,000 $235,000
(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 related taxes. Amortization of
acquisition-related intangibles and deferred stock compensation for
the nine months ended September 30, 2001 and 2000, were $53,936 and
$6,084, respectively.
(b) The Company defines EBITDA as earnings before interest, taxes,
depreciation and amortization, including amortization of deferred
stock compensation. Total depreciation and amortization for the
nine months ended September 30, 2001 and 2000, were $60,693 and
$10,055, 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
September 30, 2001 September 30, 2000
Revenues
Recurring $ 39,407 $ 14,237
Non-recurring 17,809 5,170
Total revenues 57,216 19,407
Cost of revenues
Recurring 26,339 12,253
Non-recurring 9,779 3,507
Total cost of revenues 36,118 15,760
Gross profit 21,098 3,647
Operating expenses
Research and development 3,731 1,427
Selling, general and
administrative 10,817 6,639
Total operating expenses 14,548 8,066
EBITDA 6,550 (4,419)
Operating depreciation and
amortization 2,362 1,235
Amortization of deferred stock
compensation 519 310
Amortization of acquisition
intangibles 17,367 1,584
20,248 3,129
Loss from operations (13,698) (7,548)
Interest income 815 315
Interest expense (282) (466)
Loss before benefit
from income taxes (13,165) (7,699)
Benefit from income taxes 1,561 --
Net loss $(11,604) $ (7,699)
Pro forma net income (loss) per share:
Basic $ 0.11 $ (0.28)
Diluted $ 0.10 $ (0.28)
Shares used in computing pro forma net income (loss) per share:
Basic 43,356 20,908
Diluted 45,692 20,908
The TriZetto(R) Group, Inc.
Consolidated Statements of Operations
EBITDA Presentation
(unaudited and in thousands, except per share amounts)
Nine Months Ended Nine Months Ended
September 30, 2001 September 30, 2000
Revenues
Recurring $103,063 $ 38,581
Non-recurring 53,511 16,302
Total revenues 156,574 54,883
Cost of revenues
Recurring 72,625 34,179
Non-recurring 30,276 10,800
Total cost of revenues 102,901 44,979
Gross profit 53,673 9,904
Operating expenses
Research and development 13,168 4,624
Selling, general and
administrative 34,703 19,729
Total operating expenses 47,871 24,353
EBITDA 5,802 (14,449)
Operating depreciation and
amortization 6,757 3,435
Amortization of deferred stock
compensation 2,300 1,202
Write off of in-process research
and development -- 536
Amortization of acquisition
intangibles 51,636 4,882
60,693 10,055
Loss from operations (54,891) (24,504)
Interest income 1,670 924
Interest expense (977) (649)
Loss before benefit
from income taxes (54,198) (24,229)
Benefit from income taxes 9,679 --
Net loss $(44,519) $(24,229)
Pro forma net loss per share:
Basic and diluted $ (0.01) $ (0.86)
Shares used in computing pro forma net loss per share:
Basic and diluted 38,834 20,010
The TriZetto(R) Group, Inc.
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
September 30, December 31,
2001 2000
ASSETS
Current assets:
Cash, restricted cash, and
short-term investments $ 75,719 $ 28,384
Accounts receivable, net 31,694 18,102
Prepaid expenses and other current assets 6,556 7,433
Total current assets 113,969 53,919
Property and equipment, net 29,181 25,623
Long-term investments 4,300 --
Other assets 12,491 2,602
Goodwill and other intangible assets, net 238,541 281,607
Total assets $ 398,482 $ 363,751
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,649 $ 9,502
Short-term note payable and
capital lease obligations 19,772 14,555
Other accrued liabilities 51,333 37,703
Total current liabilities 75,754 61,760
Deferred taxes 16,893 25,141
Other long-term obligations 9,529 7,420
Total liabilities 102,176 94,321
Total stockholders' equity 296,306 269,430
Total liabilities and
stockholders' equity $ 398,482 $ 363,751