Attached files
Exhibit 99.1
InfoSpace, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
March 31, 2011
(Amounts in thousands, except per share data)
| Historical InfoSpace (1) |
Mercantila (2) | Pro Forma InfoSpace |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 149,053 | $ | 2,512 | $ | 146,541 | ||||||
| Short-term investments, available-for-sale |
100,713 | 100,713 | ||||||||||
| Accounts receivable, net |
20,637 | 306 | 20,331 | |||||||||
| Other receivables |
1,872 | 922 | 950 | |||||||||
| Prepaid expenses and other current assets |
2,955 | 1,142 | 1,813 | |||||||||
| Total current assets |
275,230 | 4,882 | 270,348 | |||||||||
| Property and equipment, net |
7,521 | 278 | 7,243 | |||||||||
| Goodwill |
69,878 | 12,413 | 57,465 | |||||||||
| Other intangible assets, net |
1,262 | 979 | 283 | |||||||||
| Other long-term assets |
4,334 | 4,334 | ||||||||||
| Total assets |
$ | 358,225 | $ | 18,552 | $ | 339,673 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 14,299 | $ | 2,562 | $ | 11,737 | ||||||
| Accrued expenses and other current liabilities |
24,273 | 2,563 | 21,710 | |||||||||
| Total current liabilities |
38,572 | 5,125 | 33,447 | |||||||||
| Other long-term liabilities |
1,025 | 1,025 | ||||||||||
| Total liabilities |
39,597 | 5,125 | 34,472 | |||||||||
| Investment in Mercantila, net |
13,427 | (3) | (13,427 | ) | ||||||||
| Stockholders’ equity: |
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| Common stock |
4 | 4 | ||||||||||
| Additional paid-in capital |
1,327,935 | 1,327,935 | ||||||||||
| Accumulated deficit |
(1,009,338 | ) | (1,009,338 | ) | ||||||||
| Accumulated other comprehensive income |
27 | 27 | ||||||||||
| Total stockholders’ equity |
318,628 | — | 318,628 | |||||||||
| Total liabilities and stockholders’ equity |
$ | 358,225 | $ | 18,552 | $ | 339,673 | ||||||
See accompanying notes to unaudited Pro Forma Condensed Consolidated Financial Statements.
InfoSpace, Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Three months ended March 31, 2011
(Amounts in thousands, except per share data)
| Historical InfoSpace (4) |
Mercantila (5) | Pro Forma InfoSpace |
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| Revenues: |
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| Services |
$ | 51,650 | $ | — | $ | 51,650 | ||||||
| Product |
9,979 | 9,979 | — | |||||||||
| Total revenues |
61,629 | 9,979 | 51,650 | |||||||||
| Cost of sales: |
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| Services |
31,716 | — | 31,716 | |||||||||
| Product |
8,761 | 8,761 | — | |||||||||
| Total cost of sales |
40,477 | 8,761 | 31,716 | |||||||||
| Gross profit |
21,152 | 1,218 | 19,934 | |||||||||
| Expenses and other income: |
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| Engineering and technology |
2,197 | 534 | 1,663 | |||||||||
| Sales and marketing |
9,495 | 2,528 | 6,967 | |||||||||
| General and administrative |
5,462 | 301 | 5,161 | |||||||||
| Depreciation |
677 | 15 | 662 | |||||||||
| Amortization of other intangible assets |
121 | 121 | — | |||||||||
| Other loss (income), net |
(65 | ) | 10 | (75 | ) | |||||||
| Total expenses and other loss (income) |
17,887 | 3,509 | 14,378 | |||||||||
| Income (loss) before income taxes |
3,265 | (2,291 | ) | 5,556 | ||||||||
| Income tax benefit (expense) |
(1,130 | ) | 802 | (6) | (1,932 | ) | ||||||
| Net income (loss) |
$ | 2,135 | $ | (1,489 | ) | $ | 3,624 | |||||
| Income per share - Basic |
$ | 0.06 | $ | 0.10 | ||||||||
| Income per share - Diluted |
$ | 0.06 | $ | 0.10 | ||||||||
| Weighted average shares outstanding used in computing basic income per share |
36,339 | 36,339 | ||||||||||
| Weighted average shares outstanding used in computing diluted income per share |
37,084 | 37,084 | ||||||||||
See accompanying notes to unaudited Pro Forma Condensed Consolidated Financial Statements.
InfoSpace, Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year ended December 31, 2010
(Amounts in thousands, except per share data)
| Historical InfoSpace (7) |
Mercantila (5) | Pro Forma InfoSpace |
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| Revenues: |
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| Services |
$ | 214,343 | $ | — | $ | 214,343 | ||||||
| Product |
32,492 | 32,492 | — | |||||||||
| Total revenues |
246,835 | 32,492 | 214,343 | |||||||||
| Cost of sales: |
||||||||||||
| Services |
129,972 | — | 129,972 | |||||||||
| Product |
28,578 | 28,578 | — | |||||||||
| Total cost of sales |
158,550 | 28,578 | 129,972 | |||||||||
| Gross profit |
88,285 | 3,914 | 84,371 | |||||||||
| Expenses and other income: |
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| Engineering and technology |
9,749 | 1,278 | 8,471 | |||||||||
| Sales and marketing |
35,822 | 7,677 | 28,145 | |||||||||
| General and administrative |
33,454 | 612 | 32,842 | |||||||||
| Depreciation |
3,177 | 39 | 3,138 | |||||||||
| Amortization of other intangible assets |
283 | 283 | — | |||||||||
| Other income, net |
(15,313 | ) | (66 | ) | (15,247 | ) | ||||||
| Total expenses and other income |
67,172 | 9,823 | 57,349 | |||||||||
| Income (loss) before income taxes |
21,113 | (5,909 | ) | 27,022 | ||||||||
| Income tax benefit (expense) |
(7,410 | ) | 2,068 | (6) | (9,478 | ) | ||||||
| Net income (loss) |
$ | 13,703 | $ | (3,841 | ) | $ | 17,544 | |||||
| Income per share - Basic |
$ | 0.38 | $ | 0.49 | ||||||||
| Income per share - Diluted |
$ | 0.37 | $ | 0.48 | ||||||||
| Weighted average shares outstanding used in computing basic income per share |
35,886 | 35,886 | ||||||||||
| Weighted average shares outstanding used in computing diluted income per share |
36,829 | 36,829 | ||||||||||
See accompanying notes to unaudited Pro Forma Condensed Consolidated Financial Statements.
InfoSpace, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
Three months ended March 31, 2011, and year ended December 31, 2010
The accompanying unaudited Pro Forma Condensed Consolidated Financial Statements consist of the historical Consolidated Financial Statements of the Company, adjusted to exclude the carrying value of assets and liabilities from the balance sheet, and exclude the historical results of the Company’s Mercantila business, as described below:
| (1) | Represents the unaudited balance sheet accounts of the Company as previously presented in the Company’s unaudited condensed consolidated balance sheet in its Quarterly Report on Form 10-Q as of March 31, 2011, before reflecting its Mercantila business as discontinued operations. |
| (2) | Represents the unaudited balance sheet accounts of the Company’s Mercantila business as of March 31, 2011, before reflecting its Mercantila business as discontinued operations. |
| (3) | Represents the net carrying value of the Company’s investment in the Mercantila business. |
| (4) | Represents the results of operations of the Company as previously presented in the Company’s unaudited condensed consolidated statement of operations in its Quarterly Report on Form 10-Q for the three months ended March 31, 2011, before reflecting its Mercantila business as discontinued operations. |
| (5) | Represents the operating results of the Company’s Mercantila business for the periods presented, and only includes the results after May 10, 2010, which was the date that the Company acquired certain assets from Mercantila, Inc. |
| (6) | Represents income taxes attributed to the Company’s Mercantila business at an effective rate of 35%. |
| (7) | Represents the results of operations of the Company as previously presented in the Company’s consolidated statements of operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, before reflecting its Mercantila business as discontinued operations. |