EX-99.2 2 b65371anexv99w2.htm EX-99.2 PRO FORMA FINANCIAL INFORMATION exv99w2
 

Exhibit 99.2
AUTHORIZE.NET HOLDINGS, INC.
(f/k/a LIGHTBRIDGE, INC) AND SUBSIDIARIES
UNAUDITED CONDENSED PRO FORMA BALANCE SHEET
(Amounts in thousands, except share and per share amounts)
                         
    December 31,             December 31,  
    2006     Pro Forma     2006  
    (Historical)     Adjustments     (Pro Forma)  
Current assets:
                       
Cash and cash equivalents
  $ 116,172     $ 2,500 (1)   $ 118,672  
Accounts receivable, net
    5,010       (2,116 )     2,894  
Deferred tax assets
    4,690               4,690  
Other current assets
    1,871       (621 )     1,250  
Current assets of discontinued operations
          2,737       2,737  
 
                 
Total current assets
    127,743       2,500     $ 130,243  
Property and equipment, net
    4,907       (522 )(2)     4,385  
Other assets, net
    459       (41 )     418  
Restricted cash
    500               500  
Goodwill
    57,628               57,628  
Intangible assets, net
    15,582               15,582  
Deferred tax assets
    15,655               15,655  
Non-current assets of discontinued operations
          41       41  
 
                 
Total assets
  $ 222,474     $ 1,978     $ 224,452  
 
                 
Current liabilities:
                       
Accounts payable
  $ 1,879     $ (641 )   $ 1,238  
Accrued compensation and benefits
    3,690       (555 )     3,135  
Other accrued liabilities
    4,689       (200 )     4,489  
Deferred rent
    606               606  
Deferred revenues
    2,395       (177 )     2,218  
Funds due to merchants
    8,751               8,751  
Accrued restructuring
    1,767       (963 )     804  
Current liabilities of discontinued operations
          2,409       2,409  
 
                 
Total current liabilities
    23,777       (127 )     23,650  
Deferred rent, less current portion
    1,957               1,957  
Deferred tax liabilities
    4,754       788 (3)     5,542  
Deferred revenues, less current portion
    971             971  
Other long-term liabilities
    700             700  
 
                 
Total liabilities
    32,159       661       32,820  
 
                 
 
                       
Stockholders’ equity:
                       
 
                       
Preferred stock, $0.01 par value; 5,000,000 shares authorized; no shares issued or outstanding at December 31, 2006
                   
 
                       
Common stock, $0.01 par value; 60,000,000 shares authorized; 30,888,910 shares issued and 27,448,926 shares outstanding at December 31, 2006
    309             309  
Additional paid-in capital
    178,196             178,196  
Accumulated other comprehensive income
    171             171  
Retained earnings
    32,437       1,317 (4)     33,754  
Treasury stock, at cost
    (20,798 )         (20,798 )
 
                 
Total stockholders’ equity
    190,315       1,317       191,632  
 
                 
Total liabilities and stockholders’ equity
  $ 222,474     $ 1,978     $ 224,452  
 
                 


 

AUTHORIZE.NET HOLDINGS, INC.
(f/k/a LIGHTBRIDGE, INC.) AND SUBSIDIARIES
UNAUDITED CONDENSED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share amounts)
                         
    Year Ended             Year Ended  
    December 31,             December 31,  
    2006     Pro Forma     2006  
    (Historical)     Adjustments (5)     (Pro Forma)  
Revenues:
                       
Transaction services
  $ 92,976     $ (35,427 )   $ 57,549  
Consulting and maintenance services
    2,670       (2,670 )      
 
                 
Total revenues
    95,646       (38,097 )     57,549  
Cost of revenues:
                       
Transaction services
    37,396       (24,917 )     12,479  
Consulting and maintenance services
    1,399       (1,399 )      
 
                 
 
                       
Total cost of revenues
    38,795       (26,316 )     12,479  
 
                       
Gross profit:
                       
Transaction services
    55,580       (10,510 )     45,070  
Consulting and maintenance services
    1,271       (1,271 )      
 
                 
 
                       
Total gross profit
    56,851       (11,781 )     45,070  
Operating expenses:
                       
Engineering and development
    11,259       (5,645 )     5,614  
Sales and marketing
    19,571       (1,120 )     18,451  
General and administrative
    17,550       (465 )     17,085  
Restructuring and related asset impairments
    7,283       (7,110 )     173  
 
                 
Total operating expenses
    55,663       (14,340 )     41,323  
Income (loss) from operations
    1,188       2,559       3,747  
 
                 
Other income, net
    4,883             4,883  
 
                 
Income from continuing operations before benefit from income taxes
    6,071       2,559       8,630  
Benefit from income taxes
    (18,219 )     105       (18,114 )
 
                 
Income from continuing operations
  $ 24,290     $ 2,454     $ 26,744  
 
                 
Income per common share (basic) from continuing operations
  $ 0.89             $ 0.98  
 
                   
Income per common share (diluted) from continuing operations
  $ 0.86             $ 0.95  
 
                   
 
                       
Basic weighted average shares
    27,248               27,248  
 
                   
 
                       
Diluted weighted average shares
    28,245               28,245  
 
                   


 

PRO FORMA ADJUSTMENTS
     The unaudited pro forma consolidated balance sheet and statements of operations give effect to the following pro forma adjustments:
Balance Sheet
  (1)   To reflect cash proceeds of $2.5 million from the sale of TDS Business as if the disposition had occurred on December 31, 2006.
 
  (2)   To reflect the amount of assets sold or disposed as if the disposition had occurred on December 31, 2006.
 
  (3)   To reflect the estimated income tax liability related to the estimated gain on the disposition as if the disposition had occurred on December 31, 2006.
 
  (4)   To reflect the estimated after-tax net gain of approximately $1.3 million related to the disposition as if the disposition had occurred on December 31, 2006.
Statements of Operations
  (5)   To reflect the elimination of the financial results of the TDS business.