8-K/A 1 i1204403.txt AMENDMENT NO. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------------------------ FORM 8-K/A AMENDMENT NO. 1 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 8, 2003 ------------- INFORMATION HOLDINGS INC. ------------------------- (Exact name of registrant as specified in its charter) Delaware 1-14371 06-1518007 ------------------ --------------- ------------ (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 2777 Summer Street, Suite 209, Stamford, Connecticut 06905 ---------------------------------------------------- -------------- (Address of principal executive offices) (Zip Code) (203) 961-9106 -------------- (Registrant's telephone number, including area code) Item 7. Financial Statements and Pro Forma Financial Information This Form 8-K/A amends the Form 8-K filed by Information Holdings Inc. on April 22, 2003 to add information pursuant to Item 7(b) - Pro Forma Financial Information. (b) Pro Forma Financial Information The following pro forma financial information is included herein: I. Pro Forma Condensed Consolidated Financial Statements of Information Holdings Inc. Introduction Pro Forma Condensed Consolidated Statements of Operations for the Years Ended December 31, 2000, 2001 and 2002 Pro Forma Condensed Consolidated Balance Sheet as of December 31, 2002 Notes to Pro Forma Condensed Consolidated Financial Statements SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. INFORMATION HOLDINGS INC. Dated: May 7, 2003 By: /s/ Vincent A. Chippari ------------------------------ Name: Vincent A. Chippari Title: Executive Vice President & CFO Information Holdings Inc. Unaudited Pro Forma Condensed Consolidated Financial Statements On April 8, 2003, Information Holdings Inc. (the "Company") sold, pursuant to an Asset Purchase Agreement dated February 27, 2003, substantially all of the assets and certain liabilities of its wholly owned subsidiaries CRC Press LLC ("CRC Press LLC"), CRC Press (U.K.) LLC and Parthenon Publishing Group, Inc., to CRC Press I LLC and Routledge No. 2 Limited, both wholly owned subsidiaries of Taylor & Francis Group plc, for approximately $95,000,000 in cash, subject to a post closing adjustment. The following unaudited pro forma condensed consolidated statements of operations of the Company for the years ended December 31, 2000, 2001 and 2002 give effect to the disposition of CRC Press LLC and its subsidiaries ("CRC Press") as if it occurred on January 1, 2000. The following unaudited pro forma condensed consolidated balance sheet of the Company as of December 31, 2002 gives effect to the disposition of CRC Press as if it occurred on that date. The unaudited pro forma condensed consolidated statements of operations do not reflect the gain on the sale of CRC Press, nor do they reflect imputed interest on the proceeds from the disposition. The unaudited pro forma condensed consolidated financial statements have been prepared by the Company's management. The unaudited pro forma condensed consolidated financial statements are not designed to represent and do not represent what the Company's results of operations and financial position would have been had the aforementioned transaction been completed as of the date or at the beginning of the period indicated or to project the Company's results of operations or financial position at any future date or any future period. The pro forma condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Company's 2002 Annual Report on Form 10-K. Information Holdings Inc. Unaudited Pro Forma Condensed Consolidated Statement of Operations December 31, 2000 (In thousands, except per share data) Information Less: Pro Forma Holdings CRC Press Consolidated Revenues $ 73,289 $ 38,984 $ 34,305 Cost of sales 19,720 10,422 9,298 -------- -------- -------- Gross profit 53,569 28,562 25,007 -------- -------- -------- Operating expenses: Selling, general and administrative 36,987 20,602 16,385 Depreciation and amortization 9,744 1,993 7,751 Impairment of long-lived assets 1,500 0 1,500 -------- -------- -------- Total operating expenses 48,231 22,595 25,636 -------- -------- -------- Income (loss) from operations 5,338 5,967 (629) Other income (expense): Other income (expense) 2 5 (3) Interest income (expense), net 7,005 (144) 7,149 -------- -------- -------- Income before income taxes 12,345 5,828 6,517 Provision for income taxes 5,253 2,273 2,980 -------- -------- -------- Net income $ 7,092 $ 3,555 $ 3,537 ======== ======== ======== Basic earnings per common share $ 0.34 $ 0.17 ======== ======== Diluted earnings per common share $ 0.34 $ 0.17 ======== ======== The accompanying notes are an integral part of these pro forma condensed consolidated financial statements. Information Holdings Inc. Unaudited Pro Forma Condensed Consolidated Statement of Operations December 31, 2001 (In thousands, except per share data) Information Less: Pro Forma Holdings CRC Press Consolidated Revenues $ 105,336 $ 42,424 $ 62,912 Cost of sales 26,676 13,714 12,962 --------- --------- --------- Gross profit 78,660 28,710 49,950 --------- --------- --------- Operating expenses: Selling, general and administrative 49,831 22,997 26,834 Depreciation and amortization 18,769 2,642 16,127 Impairment of long-lived assets 400 0 400 --------- --------- --------- Total operating expenses 69,000 25,639 43,361 --------- --------- --------- Income from operations 9,660 3,071 6,589 Other income (expense): Other expense (16) 0 (16) Interest income (expense), net 3,505 (148) 3,653 --------- --------- --------- Income before income taxes 13,149 2,923 10,226 Provision for income taxes 5,311 1,071 4,240 --------- --------- --------- Net income $ 7,838 $ 1,852 $ 5,986 ========= ========= ========= Basic earnings per common share $ 0.36 $ 0.28 ========= ========= Diluted earnings per common share $ 0.36 $ 0.27 ========= ========= The accompanying notes are an integral part of these pro forma condensed consolidated financial statements. Information Holdings Inc. Unaudited Pro Forma Condensed Consolidated Statement of Operations December 31, 2002 (In thousands, except per share data) Information Less: Pro Forma Holdings CRC Press Consolidated Revenues $ 141,767 $ 52,053 $ 89,714 Cost of sales 41,966 17,929 24,037 --------- --------- --------- Gross profit 99,801 34,124 65,677 --------- --------- --------- Operating expenses: Selling, general and administrative 66,909 24,108 42,801 Depreciation and amortization 16,941 3,102 13,839 Impairment of long-lived assets 39,380 0 39,380 --------- --------- --------- Total operating expenses 123,230 27,210 96,020 --------- --------- --------- (Loss) income from operations (23,429) 6,914 (30,343) Other income (expense): Other income 5 0 5 Interest income (expense), net 473 (155) 628 --------- --------- --------- (Loss) income before income taxes (22,951) 6,759 (29,710) (Benefit from) provision for income taxes (9,227) 2,542 (11,769) --------- --------- --------- Net (loss) income $ (13,724) $ 4,217 $ (17,941) ========= ========= ========= Basic (loss) per common share $ (0.63) $ (0.83) ========= ========= Diluted (loss) per common share $ (0.63) $ (0.83) ========= ========= The accompanying notes are an integral part of these pro forma condensed consolidated financial statements. Information Holdings Inc. Unaudited Pro Forma Condensed Consolidated Balance Sheet December 31, 2002 (In thousands)
Information Less: Pro Forma Pro Forma Holdings CRC Press Adjustments Consolidated Cash, cash equivalents and short-term investments $ 66,966 $ 3,075 $ 77,337 (1) $ 141,228 Accounts receivable, net 41,827 12,452 29,375 Other current assets 17,425 8,896 8,529 ----------- ----------- ---------- ----------- Total current assets 126,218 24,423 77,337 179,132 Intangible assets, net 94,627 22,318 72,309 Goodwill, net 88,967 5,868 83,099 Other long-term assets 19,025 10,119 164 (2) 9,070 ----------- ----------- ---------- ----------- Total assets $ 328,837 $ 62,728 $ 77,501 $ 343,610 =========== =========== ========== =========== Accounts payable $ 30,967 $ 4,743 $ 26,224 Deferred revenue 27,069 5,940 21,129 Other current liabilities 17,738 4,002 $ 156 (1) 13,892 Long-term liabilities 3,323 3,362 164 (2) 125 ----------- ----------- ---------- ----------- Total liabilities 79,097 18,047 320 61,370 Common stock 218 218 Treasury stock (5,227) (5,227) Paid in capital 247,026 16,591 16,591 (1) 247,026 Accumulated comprehensive income 626 358 358 (1) 626 Retained earnings 7,097 27,732 60,232 (1) 39,597 ----------- ----------- ---------- ----------- Total equity 249,740 44,681 77,181 282,240 ----------- ----------- ---------- ----------- Total liabilities and equity $ 328,837 $ 62,728 $ 77,501 $ 343,610 =========== =========== ========== ===========
The accompanying notes are an integral part of these pro forma condensed consolidated financial statements. Information Holdings Inc. Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements 1. PRO FORMA ADJUSTMENTS For purposes of determining the pro forma effect of the disposition of CRC Press on Information Holdings Inc.'s Condensed Consolidated Balance Sheet as of December 31, 2002, the following adjustments have been made (In thousands): (1) Represents the proceeds from the sale of CRC Press and the estimated gain on disposition, adjusted for assets and liabilities of CRC Press retained by the Company, as follows - debit (credit): Cash $77,337 Other current liabilities (156) Paid in capital (16,591) Accumulated comprehensive income (358) Retained earnings (earnings of CRC Press prior to disposition) (27,732) Retained earnings (estimated after-tax gain on disposition) (32,500) (2) Represents a reclassification of net long-term deferred taxes. The disposition of CRC Press results in a change in long-term deferred taxes from a net liability to a net asset. 2. EARNINGS PER SHARE Earnings per share are calculated by dividing the net income by the weighted average outstanding shares during the period. The weighted average outstanding shares for the years ending December 31 are as follows: 2000 2001 2002 Basic 20,583,190 21,686,149 21,734,708 Diluted 20,821,921 21,826,359 21,734,708