Current Report — Form 8-K
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 8-K Current Report 5 19K
2: EX-2.01 Agreement and Plan of Reorganization Dated 1/19/99 70 358K
3: EX-2.02 Stock Option Agreement Dated as of 1/19/99 14 55K
4: EX-23.01 Consent of Ernst & Young LLP 1 6K
5: EX-99.01 Press Release of the Company Dated 1/19/99 5 21K
6: EX-99.02 Financial Statements for Excite, Inc. 24 178K
7: EX-99.03 Unaudited Pro Forma Condensed Combined Financials 4 23K
EX-99.03 — Unaudited Pro Forma Condensed Combined Financials
EX-99.03 | 1st Page of 4 | TOC | ↑Top | Previous | Next | ↓Bottom | Just 1st |
---|
EXHIBIT 99.03
UNAUDITED PRO FORMA
CONDENSED COMBINED FINANCIAL INFORMATION
The unaudited pro forma condensed combined financial information for @Home
gives effect to the Excite merger, based on a preliminary allocation of the
total purchase cost. The historical financial information has been derived from
the respective historical financial statements of @Home and Excite, and should
be read in conjunction with such financial statements and the related notes
included and incorporated by reference in this 8/K.
The unaudited pro forma condensed combined balance sheet has been prepared
assuming the merger took place as of December 31, 1998 and allocates the total
purchase cost to the fair values of assets and liabilities of Excite, based on a
preliminary valuation.
The unaudited pro forma condensed combined statement of operations combines
@Home's and Excite's historical statements of operations for the year ended
December 31, 1998 and gives effect to the merger, including the amortization of
goodwill and other intangible assets, as if it occurred on January 1, 1998.
The total estimated purchase cost of the Excite merger has been allocated
on a preliminary basis to assets and liabilities based on management's estimates
of their fair values with the excess costs over the net assets acquired
allocated to goodwill. This allocation is subject to change pending a final
analysis of the total purchase cost and the fair value of the assets acquired
and liabilities assumed. The impact of such changes could be material.
The unaudited pro forma condensed combined information is presented for
illustrative purposes only and is not necessarily indicative of the operating
results or financial position that would have occurred if the transaction had
been consummated as of the dates indicated, nor is it necessarily indicative of
future operating results or financial position of combined companies.
AT HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED COMBINED
BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
[Enlarge/Download Table]
AS OF DECEMBER 31, 1998
-----------------------------------------------------------------
PRO FORMA
AT HOME EXCITE COMBINED ADJUSTMENTS PRO FORMA
--------- --------- ---------- ----------- ----------
ASSETS
Current assets
Cash and cash equivalents............. $ 300,702 $ 45,366 $ 346,068 $ -- $ 346,068
Short-term cash investments........... 118,587 15,681 134,268 -- 134,268
Restricted investments................ -- 558 558 -- 558
--------- --------- ---------- ---------- ----------
Total cash, cash equivalents,
short-term cash investments
and restricted investments.... 419,289 61,605 480,894 -- 480,894
Accounts receivable, net.............. 6,358 36,592 42,950 -- 42,950
Accounts receivable -- related
parties............................. 4,300 -- 4,300 -- 4,300
Prepaid Netscape distribution costs
and trademarks...................... -- 45,473 45,473 (45,473)(2) --
Other current assets.................. 3,381 4,848 8,229 -- 8,229
--------- --------- ---------- ---------- ----------
Total current assets............ 433,328 148,518 581,846 (45,473) 536,373
Property, equipment and improvements,
net................................... 49,240 35,937 85,177 -- 85,177
Distribution agreements, net............ 186,247 -- 186,247 -- 186,247
Intangible assets, net.................. 24,267 8,792 33,059 291,708(2) 324,767
Goodwill................................ 69,722 -- 69,722 6,560,658(2) 6,630,380
Investment in affiliated company........ -- 2,243 2,243 -- 2,243
Prepaid Netscape distribution costs and
trademarks............................ -- 20,954 20,954 (20,954)(2) --
Other assets............................ 17,827 4,229 22,056 -- 22,056
--------- --------- ---------- ---------- ----------
Total assets.................... $ 780,631 $ 220,673 $1,001,304 $6,785,939 $7,787,243
========= ========= ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank line of credit and other notes
payable............................. $ -- $ 6,100 $ 6,100 $ -- $ 6,100
Accounts payable...................... 7,100 13,079 20,179 -- 20,179
Accounts payable -- related parties... 3,684 -- 3,684 -- 3,684
Accrued compensation and related
expense............................. 1,262 9,038 10,300 -- 10,300
Accrued transport costs............... 2,444 -- 2,444 -- 2,444
Deferred revenues..................... 5,164 2,843 8,007 -- 8,007
Other accrued liabilities............. 11,305 14,222 25,527 35,000(1) 60,527
Related party liabilities............. -- 5,092 5,092 -- 5,092
Capital lease obligation, current
portion............................. 12,045 7,133 19,178 -- 19,178
Non-lease financing, current
portion............................. -- 1,531 1,531 -- 1,531
--------- --------- ---------- ---------- ----------
Total current liabilities....... 43,004 59,038 102,042 35,000 137,042
Convertible debentures.................. 229,344 5,000 234,344 -- 234,344
Capital lease obligations, less current
portion............................... 14,417 11,668 26,085 -- 26,085
Non-lease financing..................... -- 1,568 1,568 -- 1,568
Stockholders' equity:
Preferred stock....................... -- 813 813 (813)(3) --
Common stock.......................... 719,680 277,811 997,491 6,650,927(1)/(3) 7,648,418
Notes receivable from stockholders.... (4) -- (4) -- (4)
Deferred compensation................. (2,880) (907) (3,787) 907(3) (2,880)
Unrealized gain on investments........ 4,235 1,319 5,554 (1,319)(3) 4,235
Accumulated deficit................... (227,165) (135,637) (362,802) 101,237(3)/(4) (261,565)
--------- --------- ---------- ---------- ----------
Total stockholders' equity...... 493,866 143,399 637,265 6,750,939 7,388,204
--------- --------- ---------- ---------- ----------
Total liabilities and
stockholders' equity.......... $ 780,631 $ 220,673 $1,001,304 $6,785,939 $7,787,243
========= ========= ========== ========== ==========
See accompanying notes
AT HOME CORPORATION
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
[Enlarge/Download Table]
FOR THE YEAR ENDED DECEMBER 31, 1998
-----------------------------------------------------------------
PRO FORMA
AT HOME EXCITE COMBINED ADJUSTMENTS PRO FORMA
--------- -------- --------- ----------- -----------
Revenues............................... $ 48,045 $154,105 $ 202,150 $ -- $ 202,150
Total cost of revenue.................. -- 29,073 29,073 -- 29,073
--------- -------- --------- ----------- -----------
Gross margin........................... 48,045 125,032 173,077 -- 173,077
Costs and expenses:
Operating costs...................... 46,965 -- 46,965 -- 46,965
Product development and
engineering........................ 17,009 29,205 46,214 -- 46,214
Sales and marketing.................. 18,091 62,372 80,463 -- 80,463
General and administrative........... 12,429 16,573 29,002 -- 29,002
Purchased in-process research and
development........................ 2,758 6,200 8,958 --(A) 8,958
Cost and amortization of distribution
agreements......................... 101,385 39,396 140,781 (39,396)(B) 101,385
Amortization of goodwill and other
intangible assets.................. -- 4,903 4,903 1,739,316(B) 1,744,219
--------- -------- --------- ----------- -----------
Total costs and expenses............... 198,637 158,649 357,286 1,699,920 2,057,206
Loss from operations................... (150,592) (33,617) (184,209) (1,699,920) (1,884,129)
Interest income, net................... 6,413 (1,223) 5,190 -- 5,190
Equity share of losses of affiliated
company.............................. -- (2,134) (2,134) -- (2,134)
--------- -------- --------- ----------- -----------
Net loss............................... $(144,179) $(36,974) $(181,153) $(1,699,920) $(1,881,073)
========= ======== ========= =========== ===========
Basic and diluted net loss per share... $ (1.26) (C) $ (11.12)
========= ===========
Shares used in per share
calculations......................... 114,240 (C) 169,124
========= ===========
See accompanying notes
NOTES TO THE UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL INFORMATION
The total estimated purchase cost of the merger has been allocated on a
preliminary basis to assets and liabilities based on management's estimate of
their fair values. The excess of the purchase cost over the fair value of the
net assets acquired has been allocated to goodwill. This allocation is subject
to change pending the completion of the final analysis of the fair value of the
assets acquired and liabilities assumed. The impact of such changes could be
material.
The adjustments to the unaudited pro forma condensed combined balance sheet
as of December 31, 1998, have been calculated as if the merger occurred on
December 31, 1998 and are as follows:
1. To reflect the acquisition of all of the outstanding capital stock
of Excite for a total estimated purchase cost of approximately
$6,964 million. The purchase consideration consists of the issuance
of an estimated 54.9 million shares of At Home's Series A Common
Stock with a fair value of $5,523 million, assumption of options
and warrants to purchase 15.3 million shares of At Home's Series A
Common Stock with a fair value of $1,406 million and other related
merger costs of $35.0 million.
2. Recognition of the excess purchase costs of $6,861 million over the
fair value of net assets acquired, have been recorded as goodwill
and other intangible assets.
3. To reflect the elimination of the historical stockholders' equity
accounts of Excite.
4. Recognition of purchased in-process research and development charge
of $34.4 million.
The adjustments to the unaudited pro forma condensed combined statement of
operations for the year ended December 31, 1998, assumes the merger occurred as
of January 1, 1998 and are as follows:
A. The purchased in-process research and development charge of $34.4
million has not been included in the unaudited pro forma combined
statement of operations as it is considered a non-recurring charge.
The charge will be recorded in the quarter in which the merger
closes.
B. To reflect the amortization of goodwill and other intangible assets
resulting from the merger. The goodwill and other intangible assets
are being amortized over periods of approximately 4 years.
C. Basic and diluted net loss per share have been adjusted to reflect
the issuance of 54.9 million shares of At Home's Series A Common
Stock, as if the shares had been outstanding for the entire year.
The effect of stock options and warrants of Excite assumed in the
merger have not been included as their inclusion would be
anti-dilutive.
Dates Referenced Herein and Documents Incorporated by Reference
↑Top
Filing Submission 0000891618-99-000706 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)
Copyright © 2024 Fran Finnegan & Company LLC – All Rights Reserved.
About — Privacy — Redactions — Help —
Fri., Apr. 26, 4:27:04.1pm ET