The TriZetto Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
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Three Months Ended September 30,
2002 2001
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Revenues
Recurring revenue $40,291 $39,407
Non-recurring revenue 28,311 17,809
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Total revenues 68,602 57,216
Cost of revenues
Recurring revenue 27,636 27,701
Non-recurring revenue 17,817 10,091
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Total cost of revenues 45,453 37,792
Gross profit 23,149 19,424
Operating expenses
Research and development 5,432 3,768
Selling, general and administrative 13,748 11,987
Amortization of acquisition
intangibles 7,361 17,367
Restructuring and related impairment
charges 235 -
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Total operating expenses 26,776 33,122
Loss from operations (3,627) (13,698)
Interest income 577 815
Interest expense (383) (282)
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Loss before (provision for)
benefit from income taxes (3,433) (13,165)
(Provision for) benefit from
income taxes (54) 1,561
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Net loss $(3,487) $(11,604)
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Net loss per share:
Basic and diluted $(0.08) $(0.27)
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Weighted average shares outstanding:
Basic and diluted 45,430 43,356
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Other financial data:
Pro forma net income(a) $4,530 $4,680
EBITDA(b) $7,650 $6,550
12-month backlog(c) $185,000 $165,000
Total backlog(d) $593,000 $524,000
See footnote definitions on following page.
(a) The Company defines pro forma net income 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:
Net loss $(3,487) $(11,604)
Amortization of acquisition
intangibles and deferred stock
compensation 7,799 17,886
Restructuring and related impairment
charges 235 -
Provision for (benefit from) income
taxes 54 (1,561)
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Pro forma pre tax income 4,601 4,721
Pro forma income tax provision 71 41
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Pro forma net income $4,530 $4,680
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Pro forma net income (loss) per share:
Basic $0.10 $0.11
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Diluted $0.10 $0.10
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Pro forma weighted average shares
outstanding:
Basic 45,430 43,356
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Diluted 46,616 45,692
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(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
September 30, 2002 and 2001, were $11,277 and $20,248,
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)
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Three Months Ended September 30,
2002 2001
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Revenues
Recurring revenue $40,291 $39,407
Non-recurring revenue 28,311 17,809
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Total revenues 68,602 57,216
Cost of revenues
Recurring revenue 25,546 26,339
Non-recurring revenue 17,224 9,779
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Total cost of revenues 42,770 36,118
Gross profit 25,832 21,098
Operating expenses
Research and development 5,390 3,731
Selling, general and
administrative 12,792 10,817
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18,182 14,548
EBITDA 7,650 6,550
Operating depreciation and
amortization 3,243 2,362
Amortization of deferred stock
compensation 438 519
Amortization of acquisition
intangibles 7,361 17,367
Restructuring and related
impairment charges 235 -
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11,277 20,248
Loss from operations (3,627) (13,698)
Interest income 577 815
Interest expense (383) (282)
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Loss before (provision for)
benefit from income taxes (3,433) (13,165)
(Provision for) benefit from
income taxes (54) 1,561
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Net loss $(3,487) $(11,604)
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The TriZetto Group, Inc.
Consolidated Statements of Operations
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September 30, December 31,
2002 2001
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(unaudited) (audited)
Assets
Current assets:
Cash, restricted cash and
investments $89,483 $84,633
Accounts receivable, net 28,798 32,223
Prepaid expenses and other
current assets 15,964 12,676
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Total current assets 134,245 129,532
Property and equipment, net 38,883 34,867
Other assets 20,483 14,620
Goodwill and other intangible
assets, net 198,098 211,702
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Total assets $391,709 $390,721
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Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $11,765 $8,109
Short-term note payables and
capital lease obligations 21,392 19,607
Other accrued liabilities 63,869 55,671
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Total current liabilities 97,026 83,387
Deferred taxes 8,720 13,751
Other long-term obligations 12,953 12,628
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Total liabilities 118,699 109,766
Total stockholders' equity 273,010 280,955
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Total liabilities and
stockholders' equity $391,709 $390,721
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