| June 30, | Pro Forma | |||||||||||
| 2005 | Pro Forma | June 30, | ||||||||||
| As reported | Adjustments | 2005 | ||||||||||
| (In thousands, except share information) | ||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 27,988 | $ | 117,449 | (1) | $ | 145,437 | |||||
Marketable securities |
91 | — | 91 | |||||||||
Accounts receivable,
less allowance for doubtful accounts of $8,922 |
151,479 | — | 151,479 | |||||||||
Inventories |
33,590 | — | 33,590 | |||||||||
Prepaid expenses and other current assets |
26,078 | — | 26,078 | |||||||||
Assets held for sale |
233,000 | (233,000 | )(2) | — | ||||||||
Total current assets |
472,226 | (115,551 | ) | 356,675 | ||||||||
Property, plant
and equipment at cost, less accumulated depreciation of $268,867 |
88,041 | — | 88,041 | |||||||||
Other noncurrent assets: |
||||||||||||
Marketable
securities, noncurrent |
— | 63,732 | (1) | 63,732 | ||||||||
Goodwill, less accumulated
amortization of $9,939 |
38,449 | — | 38,449 | |||||||||
Intangible assets,
less accumulated amortization of $1,914 |
14,558 | — | 14,558 | |||||||||
Deferred income taxes |
7,326 | — | 7,326 | |||||||||
Other |
13,883 | — | 13,883 | |||||||||
Total assets |
$ | 634,483 | $ | (51,819 | ) | $ | 582,664 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Current portion of long-term debt and other short-term borrowings |
$ | 200 | — | $ | 200 | |||||||
Accounts payable |
33,233 | — | 33,233 | |||||||||
Employee compensation and benefits |
41,574 | — | 41,574 | |||||||||
Accrued expenses and other obligations |
31,208 | 5,984 | (3) | 37,192 | ||||||||
Liabilities held for sale |
39,621 | (39,621 | )(2) | — | ||||||||
Total current liabilities |
145,836 | (33,637 | ) | 112,199 | ||||||||
Other liabilities: |
||||||||||||
Long-term debt — net of current portion |
75,650 | — | 75,650 | |||||||||
Deferred employee compensation and other |
44,314 | — | 44,314 | |||||||||
Total liabilities |
265,800 | (33,637 | ) | 232,163 | ||||||||
Commitments and contingencies |
||||||||||||
Stockholders’ equity: |
||||||||||||
Preferred stock: |
||||||||||||
Authorized 1,000,000 shares, par value $.01 |
||||||||||||
Issuable in series — none issued |
— | — | — | |||||||||
Common stock: |
||||||||||||
Authorized 60,000,000 shares, par value $.01 |
||||||||||||
Issued and outstanding,
including treasury stock, 41,754,717 shares |
417 | — | 417 | |||||||||
Additional paid-in capital |
79,450 | — | 79,450 | |||||||||
Retained earnings |
349,645 | 2,860 | (4) | 352,505 | ||||||||
Treasury stock, at cost, 7,684,003 shares |
(82,650 | ) | — | (82,650 | ) | |||||||
Accumulated other comprehensive income, net |
21,821 | (21,042 | )(5) | 779 | ||||||||
Total stockholders’ equity |
368,683 | (18,182 | ) | 350,501 | ||||||||
Total liabilities and stockholders’ equity |
$ | 634,483 | $ | (51,819 | ) | $ | 582,664 | |||||
| (1) | The pro forma adjustment reflects the receipt of $130 million cash proceeds of the sale, net of approximately $12.6 million of sale-related expenses, and the value of the 9.4 million shares of Lionbridge Technologies, Inc. common stock received, valued at $63.7 million as of June 30, 2005. | ||
| (2) | The pro forma adjustment reflects the removal of the assets and liabilities of BGS presented as held for sale as of June 30, 2005. | ||
| (3) | The pro forma adjustment reflects the accrual of approximately $3.2 million of taxes payable as a result of the sale and the accrual of approximately $2.8 million for estimated indemnification liabilities. | ||
| (4) | The pro forma adjustment reflects the net gain on the sale of BGS of approximately $2.9 million. | ||
| (5) | The pro forma adjustment reflects the removal from equity of the cumulative foreign currency translation amount related to BGS, which is recognized as part of the $2.9 million net gain on sale. This amount was previously included in accumulated other comprehensive income. |
| As Reported | Pro Forma | |||||||||||
| December 31, | Pro Forma | December 31, | ||||||||||
| 2004 | Adjustments (1) | 2004 | ||||||||||
| (In thousands, except per share information) | ||||||||||||
Revenue |
$ | 899,011 | $ | (222,974 | ) | $ | 676,037 | |||||
Expenses: |
||||||||||||
Cost of revenue |
(574,264 | ) | 147,599 | (426,665 | ) | |||||||
Selling and administrative |
(266,034 | ) | 65,818 | (200,216 | ) | |||||||
Depreciation |
(32,121 | ) | 5,929 | (26,192 | ) | |||||||
Amortization |
(2,713 | ) | 1,983 | (730 | ) | |||||||
Restructuring charges, integration costs and asset
impairment charges |
(14,644 | ) | 6,195 | (8,449 | ) | |||||||
Gain on sale of building |
896 | — | 896 | |||||||||
| (888,880 | ) | 227,525 | (661,355 | ) | ||||||||
Operating income |
10,131 | 4,550 | 14,681 | |||||||||
Interest expense |
(10,709 | ) | 273 | (10,436 | ) | |||||||
Loss on extinguishment of debt |
(8,815 | ) | — | (8,815 | ) | |||||||
Other (expense)income, net |
(118 | ) | 978 | 860 | ||||||||
Loss from continuing operations before income
taxes |
(9,511 | ) | 5,801 | (3,710 | ) | |||||||
Income tax benefit (expense) |
1,313 | 2,126 | (813 | ) | ||||||||
Loss from continuing operations |
(8,198 | ) | 3,675 | (4,523 | ) | |||||||
Loss per share from continuing operations: |
||||||||||||
Basic |
$ | (.23 | ) | $ | .10 | $ | (.13 | ) | ||||
Diluted |
$ | (.23 | ) | $ | .10 | $ | (.13 | ) | ||||
Basic and diluted weighted-average number of
shares outstanding |
35,898 | 35,898 | 35,898 | |||||||||
| (1) | The pro forma adjustments represent the elimination of revenue and expenses associated with BGS, assuming the sale occurred on January 1, 2004. |