The TriZetto Group, Inc.
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended
December 31,
2001 2000
Revenues
Recurring revenue $39,643 $23,230
Non-recurring revenue 21,955 10,943
Total revenues 61,598 34,173
Cost of revenues
Recurring revenue 27,148 19,105
Non-recurring revenue 11,586 8,509
Total cost of revenues 38,734 27,614
Gross profit 22,864 6,559
Operating expenses
Research and development 3,070 3,812
Selling, general and administrative 30,807 25,970
Write-off of acquired in-process
technology -- 890
Restructuring and related impairment
charges 12,140 --
Total operating expenses 46,017 30,672
Loss from operations (23,153) (24,113)
Interest income 375 470
Interest expense (353) (234)
Loss before benefit from income taxes (23,131) (23,877)
Benefit from income taxes 6,496 5,848
Net loss $(16,635) $(18,029)
Net loss per share:
Basic and diluted $(0.38) $(0.53)
Weighted average shares outstanding:
Basic and diluted 43,834 33,823
Other financial data:
Pro forma net income (loss) (a) $7,140 $(8,515)
EBITDA (b) $9,173 $(6,924)
12-month backlog (c) $174,600 $126,000
Total backlog (d) $623,400 $413,000
See footnote definitions to follow.
(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 $(16,635) $(18,029)
Amortization of acquisition-related
intangibles and deferred
stock compensation 18,172 14,472
Restructuring and related impairment
charges 12,140 --
Write-off of acquired in-process
technology -- 890
Benefit from income taxes, net (6,537) (5,848)
Pro forma net income (loss) $7,140 $(8,515)
Pro forma net income (loss) per share:
Basic $0.16 $(0.25)
Diluted $0.16 $(0.25)
Pro forma weighted average shares outstanding:
Basic 43,834 33,823
Diluted 45,577 33,823
(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 December 31, 2001 and 2000, were
$32,326 and $17,189, 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
(unaudited and in thousands, except per share amounts)
Year Ended
December 31,
2001 2000
Revenues
Recurring revenue $142,706 $61,811
Non-recurring revenue 75,466 27,245
Total revenues 218,172 89,056
Cost of revenues
Recurring revenue 103,854 54,929
Non-recurring revenue 42,806 20,089
Total cost of revenues 146,660 75,018
Gross profit 71,512 14,038
Operating expenses
Research and development 16,402 8,463
Selling, general and administrative 121,014 52,766
Write-off of acquired in-process
technology -- 1,426
Restructuring and related impairment
charges 12,140 --
Total operating expenses 149,556 62,655
Loss from operations (78,044) (48,617)
Interest income 2,048 1,394
Interest expense (1,333) (883)
Loss before benefit from income taxes (77,329) (48,106)
Benefit from income taxes 16,175 5,848
Net loss $(61,154) $(42,258)
Net loss per share:
Basic and diluted $(1.53) $(1.80)
Weighted average shares outstanding:
Basic and diluted 40,094 23,444
Other financial data:
Pro forma net income (loss) (a) $6,837 $(25,681)
EBITDA (b) $14,975 $(21,373)
12-month backlog (c) $174,600 $126,000
Total backlog (d) $623,400 $413,000
See footnote definitions to follow.
(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, failed acquisition
costs and related taxes.
Reconciliation of net loss to pro forma net income (loss):
Net loss $(61,154) $(42,258)
Amortization of acquisition-related
intangibles
and deferred stock compensation 72,108 20,556
Restructuring and related impairment
charges 12,140 --
Failed acquisition costs -- 443
Write-off of acquired in-process
technology -- 1,426
Benefit from income taxes, net (16,257) (5,848)
$6,837 $(25,681)
Pro forma net income (loss) per share:
Basic $0.17 $(1.10)
Diluted $0.16 $(1.10)
Pro forma weighted average shares outstanding:
Basic 40,094 23,444
Diluted 42,073 23,444
(b)The Company defines EBITDA as earnings before interest, taxes,
depreciation and amortization, restructuring and related impairment
charges, and failed acquisition costs, including amortization of
deferred stock compensation. Total depreciation, amortization,
restructuring and related impairment charges and failed acquisition
costs for the year ended December 31, 2001 and 2000, were $93,019 and
$27,244, 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
December 31,
2001 2000
Revenues
Recurring revenue $39,643 $23,230
Non-recurring revenue 21,955 10,943
Total revenues 61,598 34,173
Cost of revenues
Recurring revenue 25,756 18,054
Non-recurring revenue 11,211 8,263
Total cost of revenues 36,967 26,317
Gross profit 24,631 7,856
Operating expenses
Research and development 3,012 3,770
Selling, general and administrative 12,446 11,010
15,458 14,780
EBITDA 9,173 (6,924)
Operating depreciation and amortization 2,014 1,827
Amortization of deferred stock
compensation 732 732
Amortization of acquisition intangibles 17,440 13,740
Write-off of in-process technology -- 890
Restructuring and related impairment
charges 12,140 --
32,326 17,189
Loss from operations (23,153) (24,113)
Interest income 375 470
Interest expense (353) (234)
Loss before benefit from income taxes (23,131) (23,877)
Benefit from income taxes 6,496 5,848
Net loss $(16,635) $(18,029)
The TriZetto Group, Inc.
Consolidated Statements of Operations
EBITDA Presentation
(unaudited and in thousands, except per share amounts)
Year Ended
December 31,
2001 2000
Revenues
Recurring revenue $142,706 $61,811
Non-recurring revenue 75,466 27,245
Total revenues 218,172 89,056
Cost of revenues
Recurring revenue 98,379 52,234
Non-recurring revenue 41,489 19,063
Total cost of revenues 139,868 71,297
Gross profit 78,304 17,759
Operating expenses
Research and development 16,180 8,394
Selling, general and administrative 47,149 30,738
63,329 39,132
EBITDA 14,975 (21,373)
Operating depreciation and amortization 8,771 5,262
Amortization of deferred stock
compensation 3,032 1,934
Amortization of acquisition intangibles 69,076 18,622
Write-off of in-process technology -- 1,426
Restructuring and related impairment
charges 12,140 --
93,019 27,244
Loss from operations (78,044) (48,617)
Interest income 2,048 1,394
Interest expense (1,333) (883)
Loss before benefit from income taxes (77,329) (48,106)
Benefit from income taxes 16,175 5,848
Net loss $(61,154) $(42,258)
The TriZetto Group, Inc.
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
December 31,
2001 2000
Assets
Current assets:
Cash, restricted cash, and
investments $84,633 $28,384
Accounts receivable, net 32,223 18,102
Prepaid expenses and other current
assets 5,938 7,433
Total current assets 122,794 53,919
Property and equipment, net 34,867 25,623
Other assets 14,620 2,602
Goodwill and other intangible assets, net 211,702 281,607
Total assets $383,983 $363,751
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $8,109 $9,502
Short-term note payable and capital
lease obligations 19,607 14,555
Other accrued liabilities 55,671 37,703
Total current liabilities 83,387 61,760
Deferred taxes 7,013 25,141
Other long-term obligations 12,628 7,420
Total liabilities 103,028 94,321
Total stockholders' equity 280,955 269,430
Total liabilities and stockholders'
equity $383,983 $363,751