EX-99.1 3 file002.txt PRO FORMA UNAUDITED CONDENSED CONSOLIDATED EXHIBIT 99.1 EMCORE Corporation PRO FORMA UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2003 (in thousands)
ACTUAL DISPOSITION PRO FORMA ------ ----------- --------- Cash $ 28,439 $ 62,043 $ 90,482 Accounts receivable, net 25,595 (10,345) 15,250 Accounts receivable, related party 325 -- 325 Inventory, net 25,106 (11,887) 13,219 Other current assets 1,954 (168) 1,786 Property, plant and equipment, net 95,809 (20,831) 74,978 Goodwill 30,366 -- 30,366 Intangible assets, net 5,401 (833) 4,568 Investment in equity of associated companies 9,214 -- 9,214 Other assets, net 10,230 (27) 10,203 ------------------------------------------------------------------ --------------- -------------- Total assets $ 232,439 $ 17,952 $ 250,391 ================================================================== =============== ============== Accounts payable $ 11,968 $ (2,279) $ 9,689 Accrued expenses 13,269 23 13,292 Customer deposits 587 (587) -- Capital lease obligations, current 52 -- 52 Convertible subordinated debt 161,750 -- 161,750 Capital lease obligations, net of current 41 -- 41 Preferred stock, $0.0001 par, 5,882 shares authorized, no shares outstanding -- -- -- Common stock, no par value, 100,000 shares authorized, 37,327 shares issued and 37,307 outstanding at September 30, 2003 335,266 -- 335,266 Accumulated deficit (289,438) 20,795 (268,643) Accumulated other comprehensive loss (90) -- (90) Shareholders' notes receivable (34) -- (34) Treasury stock, at cost; 20 shares (932) -- (932) ------------------------------------------------------------------ --------------- -------------- Total liabilities and equity $ 232,439 $ 17,952 $ 250,391 ================================================================== =============== ==============
EMCORE CORPORATION PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except loss per share) (unaudited)
Year Ended September 30, 2003 ------------------------------------------------------ ACTUAL DISPOSITION PRO FORMA ------------------------------------------------------ Revenues: Systems-related $ 52,681 $ (52,681) $ -- Materials-related 60,425 (2,672) 57,753 -------------------------------------------------------------------------------------------------------- Total revenues 113,106 (55,353) 57,753 Cost of revenues: Systems-related 36,545 (36,545) -- Materials-related 62,044 (2,569) 59,475 -------------------------------------------------------------------------------------------------------- Total cost of revenues 98,589 (39,114) 59,475 -------------------------------------------------------------------------------------------------------- Gross profit (loss) 14,517 (16,239) (1,722) Operating expenses: Selling, general and administrative 28,990 (6,935) 22,055 Research and development 22,181 (5,312) 16,869 Gain from debt extinguishment (6,614) -- (6,614) -------------------------------------------------------------------------------------------------------- Total operating expenses 44,557 (12,247) 32,310 -------------------------------------------------------------------------------------------------------- Operating loss (30,040) (3,992) (34,032) Other expenses: Interest expense, net 7,257 22 7,279 Equity in net loss of unconsolidated affiliate 1,228 -- 1,228 -------------------------------------------------------------------------------------------------------- Total other expenses 8,485 22 8,507 -------------------------------------------------------------------------------------------------------- Net loss $ (38,525) $ (4,014) $ (42,539) ======================================================================================================== PER SHARE DATA: Weighted average basic and diluted shares outstanding used in per share 36,999 36,999 36,999 calculations -------------------------------------------------------------------------------------------------------- Net loss per basic and diluted $ (1.04) $ (0.11) $ (1.15) share =======================================================================================================
EMCORE Corporation Notes to Unaudited Condensed Consolidated Pro Forma Financial Statements (Dollars in thousands) 1. Basis of Pro Forma Presentation The preceding unaudited pro forma condensed consolidated financial information presented for the balance sheet as of September 30, 2003 and for the statement of operations for the year then ended, is based upon the Company's historical results of operations, adjusted to reflect the pro forma effect as if the sale of certain assets of the Company comprising its TurboDisc business had occurred on October 1, 2002. The historical consolidated financial information presented herein should be read in conjunction with the audited consolidated financial statements and notes thereto appearing in the Company's annual report on Form 10-K for the year ended September 30, 2003. These unaudited pro forma condensed consolidated financial statements are for information purposes only and are not necessarily indicative of the results of future operations or the actual results that would have been achieved had the sale been consummated during the periods indicated. The pro forma adjustments are based on the best information available to date, which may change as additional information is obtained. 2. Pro Forma Assumptions and Adjustments a. Adjustments to eliminate the assets sold to and liabilities assumed by Veeco and to recognize the gain on sale of $20.8 million, ignoring tax consideration, was determined as follows: Cash proceeds $62,043 Net assets sold 38,178 Transaction costs 3,070 ------- Gain on sale $20,795 ======= b. The business unit contribution of the Turbodisc division for the year ended September 30, 2003 and 2002 has been excluded from the respective pro forma statements of operations. Business unit contribution represents earnings before interest and taxes and before the allocation of corporate operating expenses. The corporate operating expenses that were allocated to the Turbodisc division but have not been removed from the pro forma statements of operations amounted to approximately $3.0 million and $5.7 million for the year ended September 30, 2003 and September 30, 2002, respectively. This corporate amount would most likely have been lower without the TurboDisc division in these periods, but these amounts could not be easily determined.