EX-99.3 7 g78911exv99w3.htm SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION Supplemental Consolidated Financial Information
 

EXHIBIT 99.3

CONSOLIDATING FINANCIAL DATA OF SUBSIDIARY GUARANTORS

Under the proposed terms of our senior subordinated notes, our material subsidiaries propose to fully and unconditionally guarantee the notes on a joint and several basis. As of the date hereof, these subsidiaries would include NDC Health Information Services (Arizona) Inc., The Computer Place, Inc., NDCHealth Intellectual Property Corp., HISIP Corp., NDCIP, Inc., NDCHealth Licensing, Inc. and TechRx Incorporated. NDC Health Information Services (Arizona) Inc., The Computer Place, Inc., NDCHealth Intellectual Property Corp., HISIP Corp., NDCIP, Inc. and NDCHealth Licensing, Inc. are wholly owned subsidiaries of our company. We currently own 63% of the outstanding capital stock of TechRx Incorporated and, if certain conditions are met, we will acquire the remaining 37% during fourth quarter of fiscal 2003.

Presented below is our consolidating financial data, including the combined financial data for our subsidiary guarantors and our subsidiary non-guarantors.

                                   
Statement of Operations for the   NDCHealth   Subsidiary   Subsidiary        
Year Ended May 31, 2002 (in thousands)   Corporation   Guarantors   Non-Guarantors   Consolidated

Revenues
  $ 162,083     $ 165,595     $ 25,703     $ 353,381  
 
Cost of service
    56,741       99,400       18,803       174,944  
 
Other operating expenses
    35,941       55,485       9,909       101,335  
 
   
     
     
     
 
Operating income (loss)
    69,401       10,710       (3,009 )     77,102  
Other income (expense)
    (47,409 )     (76 )     434       (47,051 )
Income (loss) before income taxes and equity in losses of affiliated companies
    21,992       10,634       (2,575 )     30,051  
Provision for income taxes
    9,741       4,027       (891 )     12,877  
 
   
     
     
     
 
Income (loss) before equity in losses of affiliated companies
    12,251       6,607       (1,684 )     17,174  
Equity in losses of affiliated companies
    (1,514 )           (550 )     (2,064 )
 
   
     
     
     
 
 
Net income (loss)
  $ 10,737     $ 6,607     $ (2,234 )   $ 15,110  
 
   
     
     
     
 
                                   
Statement of Operations for the   NDCHealth   Subsidiary   Subsidiary        
Year Ended May 31, 2001 (in thousands)   Corporation   Guarantors   Non-Guarantors   Consolidated

Revenues
  $ 156,693     $ 155,562     $ 24,797     $ 337,052  
 
Cost of service
    60,794       84,288       23,609       168,691  
 
Other operating expenses
    60,433       49,007       5,101       114,541  
 
   
     
     
     
 
Operating income (loss)
    35,466       22,267       (3,913 )     53,820  
Other income (expense)
    (19,274 )     (2,428 )     8,603       (13,099 )
Income before income taxes and equity in losses of affiliated companies
    16,192       19,839       4,690       40,721  
Provision for income taxes
    7,419       6,281       2,053       15,753  
 
   
     
     
     
 
Income before equity in losses of affiliated companies
    8,773       13,558       2,637       24,968  
Equity in losses of affiliated companies
    (751 )                 (751 )
 
   
     
     
     
 
Income before discontinued operations
    8,022       13,558       2,637       24,217  
Discontinued operations, net of income taxes
                8,323       8,323  
 
   
     
     
     
 
 
Net income
  $ 8,022     $ 13,558     $ 10,960     $ 32,540  
 
   
     
     
     
 

 


 

                                 
Statement of Cash Flows for the   NDCHealth   Subsidiary   Subsidiary        
Year Ended May 31, 2002 (in thousands)   Corporation   Guarantors   Non-Guarantors   Consolidated

Cash flows from operating activities:
                               
Net income (loss)
  $ 10,737     $ 6,607     $ (2,234 )   $ 15,110  
Adjustments to reconcile net income (loss) to cash provided by operating activities:
    61,320       12,514       (13,128 )     60,706  
Changes in assets and liabilities which provided (used) cash, net of the effects of acquisitions:
    (9,556 )     (4,523 )     915       (13,164 )
 
   
     
     
     
 
Net cash provided (used) by operating activities
    62,501       14,598       (14,447 )     62,652  
Cash flows from investing activities:
    (159,306 )     (5,615 )           (164,921 )
Cash flows from financing activities:
    90,510       (1,668 )           88,842  
Cash flows from discontinued operations:
                14,454       14,454  
 
   
     
     
     
 
Increase (decrease) in cash and cash equivalents
    (6,295 )     7,315       7       1,027  
Cash and cash equivalents, beginning of period
    10,695       72       1,653       12,420  
 
   
     
     
     
 
Cash and cash equivalents, end of period
  $ 4,400     $ 7,387     $ 1,660     $ 13,447  
 
   
     
     
     
 
 
Statement of Cash Flows for the   NDCHealth   Subsidiary   Subsidiary        
Year Ended May 31, 2001 (in thousands)   Corporation   Guarantors   Non-Guarantors   Consolidated

Cash flows from operating activities:
                               
Net income
  $ 8,022     $ 13,558     $ 10,960     $ 32,540  
Adjustments to reconcile net income to cash provided by operating activities:
    29,223       20,302       (2,116 )     47,409  
Changes in assets and liabilities which provided (used) cash, net of the effects of acquisitions:
    (4,449 )     (15,753 )     3,303       (16,899 )
 
   
     
     
     
 
Net cash provided by operating activities
    32,796       18,107       12,147       63,050  
Cash flows from investing activities:
    (31,727 )     (12,990 )     (5,211 )     (49,928 )
Cash flows from financing activities:
    (69,051 )     (5,665 )           (74,716 )
Cash flows from discontinued operations:
    77,600             (5,375 )     72,225  
 
   
     
     
     
 
Increase (decrease) in cash and cash equivalents
    9,618       (548 )     1,561       10,631  
Cash and cash equivalents, beginning of period
    1,077       620       92       1,789  
 
   
     
     
     
 
Cash and cash equivalents, end of period
  $ 10,695     $ 72     $ 1,653     $ 12,420  
 
   
     
     
     
 

 


 

                                             
Balance Sheet as of   NDCHealth   Subsidiary   Subsidiary                
May 31, 2002 (in thousands)   Corporation   Guarantors   Non-Guarantors   Eliminations   Consolidated

Assets
                                       
Current assets:
                                       
 
Cash and cash equivalents
  $ 4,400     $ 7,387     $ 1,660     $     $ 13,447  
 
Accounts receivable
    30,224       36,906       5,180       (1,859 )     70,451  
 
Income taxes
    13,828       272       6,812       1,304       22,216  
 
Prepaid expenses and other current assets
    20,516       11,464       2,857       (11,579 )     23,258  
 
   
     
     
     
     
 
   
Total current assets
    68,968       56,029       16,509       (12,134 )     129,372  
 
   
     
     
     
     
 
Property and equipment, net
    47,806       50,600       3,057       103       101,566  
Intangible assets, net
    154,099       124,871       44,608       53,744       377,322  
Investments
    358,826             37,559       (382,888 )     13,497  
Inter-company
    148,050             (28,063 )     (119,987 )      
Other
    33,487       3,500       18,904       (19,464 )     36,427  
 
   
     
     
     
     
 
   
Total Assets
  $ 811,236     $ 235,000     $ 92,574     $ (480,626 )   $ 658,184  
 
   
     
     
     
     
 
Liabilities and Stockholders’ Equity
                                       
Current liabilities:
                                       
 
Line of credit
  $ 91,000     $     $     $     $ 91,000  
 
Short-term borrowings
          11,906                   11,906  
 
Current portion of long-term debt
    997       1,630             (368 )     2,259  
 
Accounts payable and accrued liabilities
    40,318       30,211       13,624       (8,106 )     76,047  
 
Deferred income
    5,453       14,800       836             21,089  
 
   
     
     
     
     
 
   
Total current liabilities
    137,768       58,547       14,460       (8,474 )     202,301  
 
   
     
     
     
     
 
Long-term liabilities
    194,476       119,681       10,073       (147,949 )     176,281  
 
   
     
     
     
     
 
   
Total liabilities
    332,244       178,228       24,533       (156,423 )     378,582  
 
   
     
     
     
     
 
Minority interest in equity of subsidiaries
                10,630       11,226       21,856  
Stockholders’ equity
    478,992       56,772       57,411       (335,429 )     257,746  
 
   
     
     
     
     
 
Total Liabilities and Stockholders’ Equity
  $ 811,236     $ 235,000     $ 92,574     $ (480,626 )   $ 658,184  
 
   
     
     
     
     
 


 

                                             
Balance Sheet as of   NDCHealth   Subsidiary   Subsidiary                
May 31, 2001 (in thousands)   Corporation   Guarantors   Non-Guarantors   Eliminations   Consolidated

Assets
                                       
Current assets:
                                       
 
Cash and cash equivalents
  $ 10,695     $ 72     $ 1,653     $     $ 12,420  
 
Accounts receivable
    37,552       23,632       2,836             64,020  
 
Income taxes
    14,795             17,009             31,804  
 
Prepaid expenses and other current assets
    8,321       7,186       3,281             18,788  
 
   
     
     
     
     
 
   
Total current assets
    71,363       30,890       24,779             127,032  
 
   
     
     
     
     
 
Property and equipment, net
    45,029       34,017       3,910             82,956  
Intangible assets, net
    108,447       81,644       31,666             221,757  
Investments
    290,099             45,388       (305,689 )     29,798  
Inter-company
    135,654             (16,546 )     (119,108 )      
Other
    16,030       4,056       2,732             22,818  
 
   
     
     
     
     
 
   
Total Assets
  $ 666,622     $ 150,607     $ 91,929     $ (424,797 )   $ 484,361  
 
   
     
     
     
     
 
Liabilities and Stockholders’ Equity
                                       
Current liabilities:
                                       
 
Current portion of long-term debt
  $ 844     $ 1,901     $ 11     $     $ 2,756  
 
Accounts payable and accrued liabilities
    31,828       8,559       12,841             53,228  
 
Deferred income
    6,407       1,523       5,694             13,624  
 
   
     
     
     
     
 
   
Total current liabilities
    39,079       11,983       18,546             69,608  
 
   
     
     
     
     
 
Long-term liabilities
    174,629       111,246       8,952       (119,108 )     175,719  
 
   
     
     
     
     
 
   
Total liabilities
    213,708       123,229       27,498       (119,108 )     245,327  
 
   
     
     
     
     
 
Minority interest in equity of subsidiaries
                12,418             12,418  
Stockholders’ equity
    452,914       27,378       52,013       (305,689 )     226,616  
 
   
     
     
     
     
 
Total Liabilities and Stockholders’ Equity
  $ 666,622     $ 150,607     $ 91,929     $ (424,797 )   $ 484,361  
 
   
     
     
     
     
 


 

                                           
Statement of Operations for the   NDCHealth   Subsidiary   Subsidiary                
Three Months Ended August 30, 2002 (in thousands)   Corporation   Guarantors   Non-Guarantors   Eliminations   Consolidated

Revenues
  $ 43,184     $ 52,751     $ 7,599     $ (3,452 )   $ 100,082  
 
Cost of service
    14,927       31,428       5,883       (437 )     51,801  
 
Other operating expenses
    8,210       18,600       3,100       (2,148 )     27,762  
 
   
     
     
     
     
 
Operating income (loss)
    20,047       2,723       (1,384 )     (867 )     20,519  
Other income (expense)
    (2,956 )     (345 )     415       302       (2,584 )
Income (loss) before income taxes and equity in losses of affiliated companies
    17,091       2,378       (969 )     (565 )     17,935  
Provision for income taxes
    6,153       842       (334 )     (203 )     6,458  
 
   
     
     
     
     
 
Income (loss) before equity in losses of affiliated companies
    10,938       1,536       (635 )     (362 )     11,477  
Equity in losses of affiliated companies
    (312 )                       (312 )
 
   
     
     
     
     
 
 
Net income (loss)
  $ 10,626     $ 1,536     $ (635 )   $ (362 )   $ 11,165  
 
   
     
     
     
     
 
                                   
Statement of Operations for the   NDCHealth   Subsidiary   Subsidiary        
Three Months Ended August 31, 2001 (in thousands)   Corporation   Guarantors   Non-Guarantors   Consolidated

Revenues
  $ 38,722     $ 39,372     $ 6,062     $ 84,156  
 
Cost of service
    13,760       21,148       4,186       39,094  
 
Other operating expenses
    10,206       14,655       2,706       27,567  
 
   
     
     
     
 
Operating income (loss)
    14,756       3,569       (830 )     17,495  
Other income (expense)
    (1,873 )     (22 )     252       (1,643 )
Income (loss) before income taxes and equity in losses of affiliated companies
    12,883       3,547       (578 )     15,852  
Provision for income taxes
    4,638       1,353       (284 )     5,707  
 
   
     
     
     
 
Income(loss) before equity in losses of affiliated companies
    8,245       2,194       (294 )     10,145  
Equity in losses of affiliated companies
    (1,114 )                 (1,114 )
 
   
     
     
     
 
 
Net income (loss)
  $ 7,131     $ 2,194     $ (294 )   $ 9,031  
 
   
     
     
     
 
                                         
Statement of Cash Flows for the   NDCHealth   Subsidiary   Subsidiary                
Three Months Ended August 30, 2002 (in thousands)   Corporation   Guarantors   Non-Guarantors   Eliminations   Consolidated

Cash flows from operating activities:
                                       
Net income (loss)
  $ 10,626     $ 1,536     $ (635 )   $ (362 )   $ 11,165  
Adjustments to reconcile net income (loss) to cash provided by operating activities:
    12,970       5,193       (7,942 )     (101 )     10,120  
Changes in assets and liabilities which provided (used) cash, net of the effects of acquisitions:
    (14,579 )     (6,745 )     5,589       463       (15,272 )
 
   
     
     
     
     
 
Net cash provided by operating activities
    9,017       (16 )     (2,988 )           6,013  
Cash flows from investing activities:
    (9,934 )     (6,020 )     (2,021 )           (17,975 )
Cash flows from financing activities:
    (823 )     (223 )     (214 )           (1,260 )
Cash flows from discontinued operations:
                5,053             5,053  
 
   
     
     
     
     
 
Increase (decrease) in cash and cash equivalents
    (1,740 )     (6,259 )     (170 )           (8,169 )
Cash and cash equivalents, beginning of period
    4,400       7,387       1,660             13,447  
 
   
     
     
     
     
 
Cash and cash equivalents, end of period
  $ 2,660     $ 1,128     $ 1,490     $     $ 5,278  
 
   
     
     
     
     
 

 


 

                                 
Statement of Cash Flows for the   NDCHealth   Subsidiary   Subsidiary        
Three Months Ended August 31, 2001 (in thousands)   Corporation   Guarantors   Non-Guarantors   Consolidated

Cash flows from operating activities:
                               
Net income (loss)
  $ 7,131     $ 2,194     $ (294 )   $ 9,031  
Adjustments to reconcile net income (loss) to cash provided by operating activities:
    7,152       3,351       (2,182 )     8,321  
Changes in assets and liabilities which provided (used) cash, net of the effects of acquisitions:
    (12,450 )     (2,910 )     9,076       (6,284 )
 
   
     
     
     
 
Net cash provided by operating activities
    1,833       2,635       6,600       11,068  
Cash flows from investing activities:
    (2,666 )     (843 )     (827 )     (4,336 )
Cash flows from financing activities:
    266       (1,349 )     (44 )     (1,127 )
Cash flows from discontinued operations:
                1,207       1,207  
 
   
     
     
     
 
Increase (decrease) in cash and cash equivalents
    (567 )     443       6,936       6,812  
Cash and cash equivalents, beginning of period
    10,695       72       1,653       12,420  
 
   
     
     
     
 
Cash and cash equivalents, end of period
  $ 10,128     $ 515     $ 8,589     $ 19,232  
 
   
     
     
     
 
                                             
Balance Sheet as of   NDCHealth   Subsidiary   Subsidiary                
August 30, 2002 (in thousands)   Corporation   Guarantors   Non-Guarantors   Eliminations   Consolidated

Assets
                                       
Current assets:
                                       
 
Cash and cash equivalents
  $ 2,660     $ 1,128     $ 1,490     $     $ 5,278  
 
Accounts receivable
    33,659       41,523       4,509       (4,923 )     74,768  
 
Income taxes
    8,811       321       5,420       1,587       16,139  
 
Prepaid expenses and other current assets
    22,691       9,688       2,787       (9,443 )     25,723  
 
   
     
     
     
     
 
   
Total current assets
    67,821       52,660       14,206       (12,779 )     121,908  
 
   
     
     
     
     
 
Property and equipment, net
    50,188       54,047       4,578             108,813  
Intangible assets, net
    153,373       122,789       47,190       57,152       380,504  
Investments
    390,521             7,739       (384,458 )     13,802  
Intercompany receivables
    123,588                   (123,588 )      
Other
    29,816       3,568       21,286       (19,975 )     34,695  
 
   
     
     
     
     
 
   
Total Assets
  $ 815,307     $ 233,064     $ 94,999     $ (483,648 )   $ 659,722  
 
   
     
     
     
     
 
Liabilities and Stockholders’ Equity
                                       
Current liabilities:
                                       
 
Line of credit
  $ 91,000     $     $     $     $ 91,000  
 
Short-term borrowings
          11,375                   11,375  
 
Current portion of long-term debt
    5,827       1,836       3       (440 )     7,226  
 
Accounts payable and accrued liabilities
    34,376       25,491       11,820       (8,109 )     63,578  
 
Deferred income
    5,574       15,319       983             21,876  
 
   
     
     
     
     
 
   
Total current liabilities
    136,777       54,021       12,806       (8,549 )     195,055  
 
   
     
     
     
     
 
Long-term liabilities
    189,233       120,264       13,255       (150,251 )     172,501  
 
   
     
     
     
     
 
   
Total liabilities
    326,010       174,285       26,061       (158,800 )     367,556  
 
   
     
     
     
     
 
Minority interest in equity of subsidiaries
          121       10,131       11,339       21,591  
Stockholders’ equity
    489,297       58,658       58,807       (336,187 )     270,575  
 
   
     
     
     
     
 
Total Liabilities and Stockholders’ Equity
  $ 815,307     $ 233,064     $ 94,999     $ (483,648 )   $ 659,722