Delaware (State or other jurisdiction of incorporation) | 1-35335 (Commission File Number) | 27-0903295 (I.R.S. Employer Identification No.) |
600 West Chicago Avenue, Suite 400 Chicago, Illinois (Address of principal executive offices) | 60654 (Zip Code) |
Exhibit No. | Description | |
99.1 | Unaudited pro forma condensed consolidated balance sheet of the Company as of March 31, 2015 and unaudited pro forma condensed consolidated statement of operations of the Company for the year ended December 31, 2014 and the related notes thereto. |
GROUPON, INC. | ||
Dated: May 28, 2015 | By: | /s/ Jason E. Child |
Name: | Jason E. Child | |
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Unaudited pro forma condensed consolidated balance sheet of the Company as of March 31, 2015 and unaudited pro forma condensed consolidated statement of operations of the Company for the year ended December 31, 2014 and the related notes thereto. |
Groupon, Inc. Historical (unaudited) (1) | Disposition of Ticket Monster (unaudited) | Pro Forma Adjustments (2) | Notes | Pro Forma | |||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 975,504 | $ | — | $ | 276,750 | a | $ | 1,252,254 | ||||||||
Accounts receivable, net | 92,140 | — | — | 92,140 | |||||||||||||
Deferred income taxes | 44,379 | — | (26,563 | ) | b | 17,816 | |||||||||||
Prepaid expenses and other current assets | 184,092 | — | (15,724 | ) | b | 168,368 | |||||||||||
Current assets held for sale | 362,731 | (362,731 | ) | — | — | ||||||||||||
Total current assets | 1,658,846 | (362,731 | ) | 234,463 | 1,530,578 | ||||||||||||
Property, equipment and software, net | 169,966 | — | — | 169,966 | |||||||||||||
Goodwill | 224,685 | — | — | 224,685 | |||||||||||||
Intangible assets, net | 24,854 | — | — | 24,854 | |||||||||||||
Investments | 22,970 | — | 122,075 | c | 145,045 | ||||||||||||
Deferred income taxes, non-current | 39,453 | — | (3,749 | ) | b | 35,704 | |||||||||||
Other non-current assets | 13,877 | — | — | 13,877 | |||||||||||||
Total Assets | $ | 2,154,651 | $ | (362,731 | ) | $ | 352,789 | $ | 2,144,709 | ||||||||
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 17,539 | $ | — | $ | — | $ | 17,539 | |||||||||
Accrued merchant and supplier payables | 723,593 | — | — | 723,593 | |||||||||||||
Accrued expenses | 194,311 | — | — | 194,311 | |||||||||||||
Deferred income taxes | 29,077 | — | — | 29,077 | |||||||||||||
Other current liabilities | 125,243 | — | 125,243 | ||||||||||||||
Current liabilities held for sale | 172,375 | (172,375 | ) | — | — | ||||||||||||
Total current liabilities | 1,262,138 | (172,375 | ) | — | 1,089,763 | ||||||||||||
Deferred income taxes, non-current | 719 | — | 17,080 | b | 17,799 | ||||||||||||
Other non-current liabilities | 122,781 | 5,525 | b | 128,306 | |||||||||||||
Total Liabilities | 1,385,638 | (172,375 | ) | 22,605 | 1,235,868 | ||||||||||||
Stockholders' Equity | |||||||||||||||||
Class A common stock | 70 | — | — | 70 | |||||||||||||
Class B common stock | — | — | — | — | |||||||||||||
Common stock | — | — | — | — | |||||||||||||
Additional paid-in capital | 1,873,582 | — | — | 1,873,582 | |||||||||||||
Treasury stock, at cost | (217,000 | ) | — | — | (217,000 | ) | |||||||||||
Accumulated deficit | (936,233 | ) | — | 124,963 | d, e | (811,270 | ) | ||||||||||
Accumulated other comprehensive income | 44,216 | — | 14,865 | b, d, e | 59,081 | ||||||||||||
Total Groupon, Inc. Stockholders' Equity | 764,635 | — | 139,828 | 904,463 | |||||||||||||
Noncontrolling interests | 4,378 | — | — | 4,378 | |||||||||||||
Total Equity | 769,013 | — | 139,828 | 908,841 | |||||||||||||
Total Liabilities and Equity | $ | 2,154,651 | $ | (172,375 | ) | $ | 162,433 | $ | 2,144,709 |
Groupon, Inc. Historical | Disposition of Ticket Monster | Pro Forma Adjustments | Notes | Pro Forma | |||||||||||||
Revenue: | |||||||||||||||||
Third party and other | $ | 1,627,539 | $ | (126,528 | ) | $ | — | $ | 1,501,011 | ||||||||
Direct | 1,564,149 | (23,037 | ) | — | 1,541,112 | ||||||||||||
Total revenue | 3,191,688 | (149,565 | ) | — | 3,042,123 | ||||||||||||
Cost of revenue: | |||||||||||||||||
Third party and other | 241,885 | (38,827 | ) | — | 203,058 | ||||||||||||
Direct | 1,400,617 | (26,861 | ) | — | 1,373,756 | ||||||||||||
Total cost of revenue | 1,642,502 | (65,688 | ) | — | 1,576,814 | ||||||||||||
Gross profit | 1,549,186 | (83,877 | ) | — | 1,465,309 | ||||||||||||
Operating expenses: | |||||||||||||||||
Marketing | 269,043 | (27,089 | ) | — | 241,954 | ||||||||||||
Selling, general and administrative | 1,293,716 | (102,331 | ) | — | 1,191,385 | ||||||||||||
Acquisition-related expense, net | 1,269 | — | — | 1,269 | |||||||||||||
Total operating expenses | 1,564,028 | (129,420 | ) | — | 1,434,608 | ||||||||||||
(Loss) income from operations | (14,842 | ) | 45,543 | — | 30,701 | ||||||||||||
Other expense, net | (33,353 | ) | (97 | ) | — | (33,450 | ) | ||||||||||
(Loss) income from continuing operations before provision for income taxes | (48,195 | ) | 45,446 | — | (2,749 | ) | |||||||||||
Provision for income taxes | 15,724 | — | — | 15,724 | |||||||||||||
(Loss) income from continuing operations | (63,919 | ) | 45,446 | — | (18,473 | ) | |||||||||||
Net income attributable to noncontrolling interests | (9,171 | ) | — | — | (9,171 | ) | |||||||||||
Net loss attributable to common stockholders from continuing operations | $ | (73,090 | ) | $ | 45,446 | $ | — | $ | (27,644 | ) | |||||||
Net loss per share from continuing operations: | |||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.04 | ) | |||||||||||
Diluted | $ | (0.11 | ) | $ | (0.04 | ) | |||||||||||
Weighted average number of shares outstanding | |||||||||||||||||
Basic | 674,832,393 | 674,832,393 | |||||||||||||||
Diluted | 674,832,393 | 674,832,393 |
a. | Adjustment to reflect the cash consideration of $285.0 million from the Ticket Monster disposition, net of estimated transaction costs of $8.2 million. |
b. | Adjustments to record the estimated tax impacts related to the Ticket Monster disposition, including $1.4 million recorded within accumulated other comprehensive income. |
c. | Adjustment to reflect the estimated fair value of the Company's minority limited partner investment in Newco. |
d. | Adjustment to reflect the estimated gain from the Ticket Monster disposition, which has been calculated as follows (in thousands): |
Cash consideration received, net of estimated transaction costs | $ | 276,750 | |
Estimated fair value of minority limited partner investment in Newco | 122,075 | ||
Ticket Monster's net book value as of March 31, 2015 | (190,356 | ) | |
Release of cumulative translation adjustment from Ticket Monster as of March 31, 2015 | (11,809 | ) | |
Estimated pre-tax gain | 196,660 | ||
Provision for income taxes | (67,213 | ) | |
Estimated gain, net of tax | $ | 129,447 |
e. | Release of $4.5 million cumulative translation adjustment related to the Company's legacy Korea business as a result of the Ticket Monster disposition. |