EX-99.04 8 0008.txt ADJUSTED HISTORICAL FINANCIAL STATEMENTS OF CHECKPOINT Exhibit 99.04 CHECKPOINT (HOLDINGS) LIMITED ADJUSTED CONDENSED CONSOLIDATED BALANCE SHEET AS OF APRIL 30, 2000 (Unaudited) (Dollars in thousands)
US GAAP Basis Adjusted Historical US GAAP Historical Non-recurring Historical Checkpoint (A) Adjustments (C) Checkpoint Activities (D) Checkpoint --------------- --------------- ----------- --------------------- ----------- ASSETS ------ CURRENT ASSETS Cash and equivalents $ 2,102 $ 2,102 $ 2,102 Accounts receivable, net 6,096 6,096 $ (609) 5,487 Inventories, net 1,923 1,923 (623) 1,300 Prepaid and other current assets 1,006 $ 945 1,951 (55) 1,896 ------- ------- ------- ------- ------- Total current assets 11,127 945 12,072 (1,287) 10,785 Depreciable assets, net 2,704 2,704 (31) 2,673 Intangible assets, net 14,627 14,627 14,627 Other assets 129 129 129 ------- ------- ------- ------- ------- Total assets $28,587 $ 945 $29,532 $(1,318) $28,214 ======= ======= ======= ======= ======= LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- CURRENT LIABILITIES Borrowings due within one year $ 1,834 $ 1,834 $ 1,834 Accounts payable 1,550 1,550 $ (228) 1,322 Accrued expenses 3,284 3,284 (492) 2,792 Other current liabilities 353 353 353 Deferred revenue and deposits 2,895 $ 3,811 6,706 6,706 ------- ------- ------- ------- ------- Total current liabilities 9,916 3,811 13,727 (720) 13,007 Long-term liabilities 20,652 20,652 20,652 ------- ------- ------- ------- ------- Total liabilities 30,568 3,811 34,379 (720) 33,659 STOCKHOLDERS' DEFICIT Common stock 345 345 345 Additional paid-in-capital 3,330 3,330 3,330 Retained deficit (5,656) (2,866) (8,522) (598) (9,120) ------- ------- ------- ------- ------- Total stockholders' deficit (1,981) (2,866) (4,847) (598) (5,445) ------- ------- ------- ------- ------- Total liabilities and stockholders' deficit $28,587 $ 945 $29,532 $(1,318) $28,214 ======= ======= ======= ======= =======
CHECKPOINT (HOLDINGS) LIMITED ADJUSTED CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNTS FOR THE YEAR ENDED APRIL 30,2000 (Unaudited) (Dollars in thousands)
US GAAP Basis Adjusted Historical US GAAP Historical Non-recurring Historical Checkpoint (B) Adjustments (C) Checkpoint Activities (D) Checkpoint -------------- --------------- ----------- -------------- ----------- Net revenue $33,256 $ (329) $32,927 $(4,648) $28,279 Costs and expenses Cost of revenues 13,034 3,796 16,830 (2,034) 14,796 Selling, general and administrative 18,214 (5,159) 13,055 (1,896) 11,159 Amortization of intangibles - acquisition 3,331 3,331 3,331 Research and development 1,234 1,303 2,537 2,537 ------- ------- ------- ------- ------- Total costs and expenses 35,813 (60) 35,753 (3,930) 31,823 ------- ------- ------- ------- ------- Operating loss (2,557) (269) (2,826) (718) (3,544) Other expense (2,291) (2,291) (13) (2,304) Loss on sale of subsidiary (543) (543) 543 ------- ------- ------- ------- ------- Loss from operations (5,391) (269) (5,660) (188) (5,848) Benefit for income taxes (32) (32) ------- ------- ------- ------- ------- Net loss $(5,391) $ (269) $(5,660) $ (156) $(5,816) ======= ======= ======= ======= =======
2 ADJUSTED HISTORICAL CHECKPOINT (HOLDINGS) LIMITED NOTES TO FINANCIAL STATEMENTS (unaudited) The adjusted historical financial statements of Checkpoint (Holdings) Limited, which are unaudited, reflect adjustments made to the historical audited financial statements of Checkpoint as of and for the twelve month period ended April 30, 2000, which are included as part of this Form 8-K/A. (A) Historical audited amounts reported in the balance sheet for Checkpoint are presented in accordance with U.K. Generally Accepted Accounting Principles ("UK GAAP") and have been converted from British Sterling to U.S. dollars using the exchange rate in effect at April 30, 2000. (B) Historical audited amounts reported in the statement of operations for Checkpoint are presented in accordance with UK GAAP and have been converted from British Sterling to U.S. dollars using the average exchange rate for the twelve month period ended April 30, 2000. (C) US GAAP adjustments reflect adjustments to the historic financial information of Checkpoint, as prepared in accordance with UK GAAP, such that the financial information is in conformity with accounting principles generally accepted in the United States. The US GAAP adjustments reflect the deferral of certain revenue ($3,811) and related cost of revenue ($945) as of April 30, 2000, and the net reduction of certain revenue ($329) and related cost of revenue ($60) for the twelve month period ended April 30, 2000. Additionally, the US GAAP adjustments reflect a reclassification of expenses from selling, general and administrative expenses ($5,159) to cost of revenues ($3,856) and research and development ($1,303) to conform with the reporting classifications used in the United States. (D) During the fiscal year ended April 30, 2000, Checkpoint completed the sale of Compagnie Nationale des Machines de Bureau SA ("CNMB") and Checkpoint International SA de CV ("CISA"), each of which was a Checkpoint subsidiary. Additionally, subsequent to April 30, 2000 but prior to the acquisition of Checkpoint by the Company, Checkpoint disposed of its electromechanical business line. Accordingly, in deriving the adjusted historical Checkpoint financial information, these non-recurring operating activities and the respective balance sheet amounts associated with these activities have been eliminated from the historical Checkpoint financial statements. 3