SEC Info  
    Home      Search      My Interests      Help      Sign In      Please Sign In

Navisite Inc – ‘8-K’ for 6/29/04 – EX-99.1

On:  Wednesday, 6/30/04, at 12:08pm ET   ·   For:  6/29/04   ·   Accession #:  950135-4-3327   ·   File #:  0-27597

Previous ‘8-K’:  ‘8-K’ on 6/14/04 for 6/10/04   ·   Next:  ‘8-K’ on / for 9/2/04   ·   Latest:  ‘8-K’ on 4/26/11 for 4/21/11

  in   Show  &   Hints

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 6/30/04  Navisite Inc                      8-K:5,7     6/29/04    2:32K                                    Bowne of Boston/FA

Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Navisite, Inc. 8-K Dated June 29, 2004              HTML     16K 
 2: EX-99.1     Navisite, Inc., Unaudited Pro Forma Financial Info     8     49K 


EX-99.1   —   Navisite, Inc., Unaudited Pro Forma Financial Info

EX-99.11st Page of 8TOCTopPreviousNextBottomJust 1st
 

EXHIBIT 99.1 UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION The following unaudited pro forma financial information is included herein: - Pro Forma Condensed Combined Balance Sheet as of April 30, 2004 (unaudited) - Pro Forma Condensed Combined Statement of Operations for the three months ended April 30, 2004 (unaudited) - Pro Forma Condensed Combined Statement of Operations for the nine months ended April 30, 2004 (unaudited) - Pro Forma Condensed Combined Statement of Operations for the year ended July 31, 2003 (unaudited) The unaudited pro forma condensed combined balance sheet as of April 30, 2004 combines the unaudited condensed consolidated balance sheet of NaviSite as of April 30, 2004 with the condensed consolidated balance sheet of Surebridge as of March 31, 2004. The unaudited pro forma condensed combined statement of operations for the year ended July 31, 2003 combines the unaudited pro forma condensed consolidated statement of operations of NaviSite for the fiscal year ended July 31, 2003 with the unaudited condensed consolidated results of operations of Surebridge for the twelve months ended June 30, 2003. In addition, the unaudited pro forma condensed combined statements of operations for the three and nine months ended April 30, 2004 combine the unaudited condensed consolidated statements of operations of NaviSite for the three and nine months ended April 30, 2004 with the unaudited condensed consolidated statements of operations of Surebridge for the three and nine months ended March 31, 2004. The unaudited pro forma condensed combined statement of operations for the year ended July 31, 2003 also gives pro forma effect to NaviSite's other recent acquisitions of ClearBlue Technologies, Inc., or CBT, Interliant, Inc., or Interliant, Conxion Corporation, or Conxion, and ClearBlue Technologies Management, Inc., or CBTM, as if they had occurred as of August 1, 2002. The following is a summary of the additional acquisitions noted above for which pro forma effect is given in the unaudited pro forma condensed combined statement of operations for the year ended July 31, 2003 for the portion of the fiscal year ended July 31, 2003 that each respective company was not owned by NaviSite: - In August 2003, NaviSite acquired all of the outstanding shares of six wholly-owned subsidiaries of CBT with data centers in various U.S. locations and assumed the revenue and expense of four additional wholly-owned subsidiaries of CBT. Pursuant to the acquisition agreement, as amended, NaviSite had the right to acquire the four additional subsidiaries for no additional consideration at any time on or prior to August 8, 2005. In April 2004, NaviSite exercised its right to acquire the additional four subsidiaries and thereby acquired all of the outstanding shares of the additional four wholly-owned subsidiaries of CBT. This transaction was accounted for as a combination of entities under common control, similar to a pooling-of-interests, whereby the assets and liabilities of the ten wholly-owned subsidiaries of CBT (as described above) and NaviSite were combined at their historical amounts as of the date CBT had control of both entities (September 11, 2002). CBT's results of operations and cash flows for the eleven months ended July 31, 2003 are included in NaviSite's consolidated statement of operations and consolidated statement of cash flows for the year ended July 31, 2003. The subsidiaries of CBT that NaviSite acquired are now operated as wholly-owned subsidiaries of NaviSite. - In May 2003, NaviSite acquired assets of Interliant related to managed messaging, application hosting and application development services. Interliant's results of operations and cash flows for the two-and-one-half months ended July 31, 2003 are included in NaviSite's consolidated statement 2
EX-99.12nd Page of 8TOC1stPreviousNextBottomJust 2nd
of operations and consolidated statement of cash flows for the year ended July 31, 2003. The Interliant business is now operated as a wholly-owned subsidiary of NaviSite. - In April 2003, NaviSite acquired Conxion, a provider of application hosting, content and electronic software distribution and security services. Conxion's results of operations and cash flows for the four months ended July 31, 2003 are included in NaviSite's consolidated statement of operations and consolidated statement of cash flows for the year ended July 31, 2003. Conxion is operated as a wholly-owned subsidiary of NaviSite. - In December 2002, NaviSite acquired all of the issued and outstanding stock of CBTM, a wholly-owned subsidiary of CBT, NaviSite's then parent company which previously had acquired assets from the bankrupt estate AppliedTheory Corporation related to application management and application hosting services. As CBT had a controlling interest in both companies at the time of the combination, the transaction was accounted for as a combination of entities under common control, similar to a pooling-of-interests, whereby the assets and liabilities of CBTM and NaviSite were combined at their historical amounts as of the date CBT had control of both entities (September 11, 2002). CBTM's results of operations and cash flows for the eleven months ended July 31, 2003 are included in NaviSite's consolidated statement of operations and consolidated statement of cash flows for the year ended July 31, 2003. CBTM is operated as a wholly-owned subsidiary of NaviSite. The unaudited pro forma financial information is not necessarily indicative of the results of operations or financial position of NaviSite had the transactions assumed therein occurred, nor are they necessarily indicative of the results of operations or financial position, which may be expected to occur in the future. Furthermore, the unaudited pro forma financial information is based on assumptions that NaviSite believes are reasonable and should be read in conjunction with NaviSite's Form 10-K for the fiscal year ended July 31, 2003 and Forms 10-Q for the fiscal quarters ended October 31, 2003, January 31, 2004 and April 30, 2004 previously filed. 3
EX-99.13rd Page of 8TOC1stPreviousNextBottomJust 3rd
NAVISITE, INC. AND SUBSIDIARIES PRO FORMA CONDENSED COMBINED BALANCE SHEET (UNAUDITED) (IN THOUSANDS) [Enlarge/Download Table] CONSOLIDATED PRO FORMA PRO FORMA NAVISITE SUREBRIDGE ADJUSTMENTS TOTAL APRIL 30, 2004 MARCH 31, 2004 APRIL 30, 2004 APRIL 30, 2004 -------------- -------------- -------------- -------------- ASSETS Current assets: Cash and cash equivalents........... $ 7,630 $ 1,725 $ -- $ 9,355 Accounts receivable, net............ 13,583 4,564 -- 18,147 Due from related party.............. 12 43 -- 55 Prepaid expenses and other current assets............................ 4,224 1,461 -- 5,685 --------- -------- -------- --------- Total current assets.............. 25,449 7,793 -- 33,242 Property and equipment, net........... 15,388 7,782 -- 23,170 Intangible assets, net................ 10,279 4,319 -- 14,598 Goodwill.............................. 3,206 6,327 40,090(a) 49,623 Other assets.......................... 5,913 162 -- 6,075 Restricted cash....................... 1,253 475 -- 1,728 --------- -------- -------- --------- Total assets...................... $ 61,488 $ 26,858 $ 40,090 $ 128,436 ========= ======== ======== ========= LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts receivable financing line.............................. $ 15,786 $ -- $ -- $ 15,786 Current notes payable............... 1,048 3,618 -- 4,666 Capital lease obligations, current portion........................... 2,418 139 -- 2,557 Current note payable to related party............................. 3,000 -- -- 3,000 Accounts payable.................... 3,856 4,778 -- 8,634 Accrued expenses.................... 13,628 1,943 500(b) 16,071 Deferred revenue.................... 2,196 936 -- 3,132 Customer deposits................... 135 250 -- 385 --------- -------- -------- --------- Total current liabilities......... 42,067 11,664 500 54,231 Capital lease obligations, less current portion..................... 830 24 -- 854 Accrued impairment, less current portion............................. 1,782 -- -- 1,782 Note to AppliedTheory Estate.......... 6,000 -- -- 6,000 Notes payable......................... 1,352 1,019 39,300(b) 41,671 Other long-term liabilities........... 737 71 -- 808 --------- -------- -------- --------- Total liabilities................. 52,768 12,778 39,800 105,346 --------- -------- -------- --------- Redeemable convertible preferred stock............................... -- 62,144 (62,144)(b) -- Stockholders' equity (deficit): Treasury stock...................... -- (465) 465(b) -- Common stock........................ 249 109 (79)(b) 279 Deferred compensation............... (1,699) -- -- (1,699) Accumulated other comprehensive income............................ 9 -- -- 9 Additional paid-in capital.......... 438,482 9,487 4,853(b) 452,822 Accumulated deficit................. (428,321) (57,195) 57,195(b) (428,321) --------- -------- -------- --------- Total stockholders' equity (deficit)....................... 8,720 (48,064) 62,434 23,090 --------- -------- -------- --------- Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)....................... $ 61,488 $ 26,858 $ 40,090 $ 128,436 ========= ======== ======== ========= 4
EX-99.14th Page of 8TOC1stPreviousNextBottomJust 4th
NAVISITE, INC. AND SUBSIDIARIES PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) [Enlarge/Download Table] CONSOLIDATED NAVISITE SUREBRIDGE PRO FORMA THREE MONTHS ENDED THREE MONTHS ENDED PRO FORMA THREE MONTHS ENDED APRIL 30, 2004 MARCH 31, 2004 ADJUSTMENTS APRIL 30, 2004 ------------------ ------------------ ----------- ------------------ Total revenue.......... $20,185 $11,940 $ -- $32,125 ------- ------- ------ ------- Cost of revenue: Cost of revenue...... 14,217 7,777 -- 21,994 Impairment, restructuring and other............. -- -- -- -- ------- ------- ------ ------- Total cost of revenue......... 14,217 7,777 -- 21,994 ------- ------- ------ ------- Gross profit...... 5,968 4,163 -- 10,131 ------- ------- ------ ------- Operating expenses: Product development....... 230 -- -- 230 Selling and marketing......... 1,848 1,961 -- 3,809 General and administrative.... 6,097 2,534 -- 8,631 Impairment, restructuring and other............. 206 -- -- 206 ------- ------- ------ ------- Total operating expenses........ 8,381 4,495 -- 12,876 ------- ------- ------ ------- Loss from operations...... (2,413) (332) -- (2,745) Other income (expense): Interest income...... 18 2 -- 20 Interest expense..... (656) (89) (983)(a) (1,728) Other income (expense), net.... 25 -- -- 25 ------- ------- ------ ------- Net loss.......... $(3,026) $ (419) $ (983) $(4,428) ======= ======= ====== ======= Basic and diluted net loss per share....... $ (0.12) $ (0.16) ======= ======= Weighted average basic and diluted shares used in computing net loss per share....... 24,809 3,000(b) 27,809 ======= ====== ======= 5
EX-99.15th Page of 8TOC1stPreviousNextBottomJust 5th
NAVISITE, INC. AND SUBSIDIARIES PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) [Enlarge/Download Table] CONSOLIDATED NAVISITE SUREBRIDGE PRO FORMA NINE MONTHS ENDED NINE MONTHS ENDED PRO FORMA NINE MONTHS ENDED APRIL 30, 2004 MARCH 31, 2004 ADJUSTMENTS APRIL 30, 2004 ----------------- ----------------- ----------- ----------------- Total revenue............. $65,987 $33,079 $ -- $ 99,066 ------- ------- ------- -------- Cost of revenue: Cost of revenue......... 48,899 22,925 -- 71,824 Impairment, restructuring and other................ 633 -- -- 633 ------- ------- ------- -------- Total cost of revenue............ 49,532 22,925 -- 72,457 ------- ------- ------- -------- Gross profit......... 16,455 10,154 -- 26,609 ------- ------- ------- -------- Operating expenses: Product development..... 890 -- -- 890 Selling and marketing... 5,724 6,533 -- 12,257 General and administrative....... 16,342 8,633 -- 24,975 Impairment, restructuring and other................ 1,608 -- -- 1,608 ------- ------- ------- -------- Total operating expenses........... 24,564 15,166 -- 39,730 ------- ------- ------- -------- Loss from operations......... (8,109) (5,012) -- (13,121) Other income (expense): Interest income......... 115 10 -- 125 Interest expense........ (1,935) (250) (2,948)(c) (5,133) Other income (expense), net.................. 111 -- -- 111 ------- ------- ------- -------- Net loss............. $(9,818) $(5,252) $(2,948) $(18,018) ======= ======= ======= ======== Basic and diluted net loss per share............... $ (0.40) $ (0.65) ======= ======== Weighted average basic and diluted shares used in computing net loss per share................... 24,685 3,000(b) 27,685 ======= ======= ======== 6
EX-99.16th Page of 8TOC1stPreviousNextBottomJust 6th
NAVISITE, INC. AND SUBSIDIARIES PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) [Enlarge/Download Table] CONSOLIDATED NAVISITE SUREBRIDGE PRO FORMA TWELVE MONTHS TWELVE MONTHS CBT CBTM CONXION INTERLIANT YEAR ENDED ENDED ENDED 8/1/02 - 8/1/02 - 8/1/02 - 8/1/02 - PRO FORMA JULY 31, JULY 31, 2003 JUNE 30, 2003 8/31/02 8/31/02 3/31/03 5/15/03 ADJUSTMENTS 2003 ------------- ------------- -------- -------- -------- ---------- ----------- ---------- Total revenue............. $ 76,591 $34,343 $1,437 $2,536 $12,241 $ 20,654 $ -- $147,802 Total cost of revenue..... 70,781 22,386 1,263 1,850 19,057 11,517 -- 126,854 -------- ------- ------ ------ ------- -------- ------- -------- Gross profit (deficit)........... 5,810 11,957 174 686 (6,816) 9,137 -- 20,948 -------- ------- ------ ------ ------- -------- ------- -------- Operating expenses: Product development..... 950 -- -- -- -- 958 -- 1,908 Selling and marketing... 5,960 6,702 9 157 4,104 1,853 -- 18,785 General and administrative........ 20,207 9,728 237 500 1,590 16,479 -- 48,741 Impairment, restructuring and other................. 8,882 -- -- -- (4,135) -- -- 4,747 -------- ------- ------ ------ ------- -------- ------- -------- Total operating expenses............ 35,999 16,430 246 657 1,559 19,290 -- 74,181 -------- ------- ------ ------ ------- -------- ------- -------- (Loss) income from operations.......... (30,189) (4,473) (72) 29 (8,375) (10,153) -- (53,233) Other income (expense): Interest income......... 851 102 -- -- 99 32 -- 1,084 Interest expense........ (43,403) (299) -- (140) -- (3,284) (3,930)(c) (51,056) Other income (expense), net................... (733) (111) -- (21) (209) 6,149 -- 5,075 -------- ------- ------ ------ ------- -------- ------- -------- Loss before income tax expense................. (73,474) (4,781) (72) (132) (8,485) (7,256) (3,930) (98,130) Income tax expense........ (153) (237) -- -- -- -- -- (390) -------- ------- ------ ------ ------- -------- ------- -------- Net loss.................. $(73,627) $(5,018) $ (72) $ (132) $(8,485) $ (7,256) $(3,930) $(98,520) ======== ======= ====== ====== ======= ======== ======= ======== Basic and diluted net loss per share............... $ (6.32) $ (6.72) ======== ======== Weighted average basic and diluted shares used in computing net loss per share................... 11,654 3,000(b) 14,654 ======== ======= ======== 7
EX-99.17th Page of 8TOC1stPreviousNextBottomJust 7th
NAVISITE, INC. AND SUBSIDIARIES NOTES TO THE PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION (UNAUDITED) PRO FORMA ADJUSTMENTS AND ASSUMPTIONS (a) PURCHASE PRICE ALLOCATION The following represents the preliminary allocation of the estimated purchase price for NaviSite's acquisition of Surebridge over the historical net book values of the acquired assets and assumed liabilities of Surebridge as of the date of the pro forma balance sheet, and is for illustrative purposes only. Assuming the transaction occurred on April 30, 2004, the estimated purchase price allocation for the acquisition of Surebridge would have been as follows (in thousands): [Download Table] Working capital, including cash acquired.................... $(3,871) Property & equipment, net................................... 7,782 Other non-current assets.................................... 4,956 Long-term debt.............................................. (1,019) Non-current liabilities..................................... (95) Goodwill.................................................... 46,417 ------- Purchase price.............................................. $54,170 ======= The goodwill adjustment in the pro forma condensed combined balance sheet was determined as follows (in thousands): [Download Table] Elimination of pre-existing Surebridge goodwill............. $(6,327) Goodwill resulting from the acquisition (see above)......... 46,417 ------- Goodwill adjustment......................................... $40,090 ======= The purchase price allocation for the acquisition of Surebridge is preliminary and is subject to adjustment upon finalization of the purchase accounting as of the date of consummation of the acquisition. In addition, NaviSite has not completed its valuation of intangible assets to be acquired. As a result, the final allocation of the excess of the purchase price over the book value of the net assets acquired could differ materially. Upon completion of its valuation of the intangible assets to be acquired, certain identifiable intangible assets may be recorded and would be subject to amortization. Assuming a five-year life, every $1.0 million of identifiable intangible assets recorded would result in approximately $200,000 of annual amortization expense in the pro forma statements of operations. (b) COMPONENTS OF THE ESTIMATED PURCHASE CONSIDERATION The pro forma financial information reflects NaviSite's acquisition of substantially all the assets and liabilities of Surebridge for consideration valued at approximately $54.2 million. The pro forma adjustments reconcile the historical balance sheet of NaviSite to the allocated purchase price above and include the purchase consideration. The description of the components of the estimated purchase price consideration is as follows (in thousands): [Download Table] Two promissory notes payable................................ $39,300 Fair value of 3 million shares of NaviSite common stock..... 14,370 Estimated direct acquisition costs.......................... 500 ------- Total estimated purchase price.............................. $54,170 ======= 8
EX-99.1Last Page of 8TOC1stPreviousNextBottomJust 8th
NAVISITE, INC. AND SUBSIDIARIES NOTES TO THE PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION -- (CONTINUED) The fair value of the shares of NaviSite common stock noted in the table above was determined as follows (in thousands, except per share value): [Download Table] Issuance of 3 million shares................................ 3,000 Per share price of NaviSite common stock at closing......... $ 4.79 ------- Fair value of the common stock issued....................... $14,370 ======= The equity components of the common stock issued which is noted in the table above are as follows (in thousands): [Download Table] Common stock (assumes $.01 par value)....................... $ 30 Additional paid-in capital.................................. 14,340 ------- Fair value of the common stock issued....................... $14,370 ======= For pro forma purposes, all equity accounts of Surebridge were eliminated. The adjustments to both common stock and additional paid-in capital in the pro forma condensed combined balance sheet were determined as follows (in thousands): [Download Table] Elimination of pre-existing Surebridge common stock......... $ (109) Common stock (at par value) resulting from Navisite shares issued.................................................... 30 ------- Common stock adjustment..................................... $ (79) ======= Elimination of pre-existing Surebridge additional paid-in capital................................................... $(9,487) Additional paid-capital resulting from NaviSite shares issued.................................................... 14,340 ------- Additional paid-in capital adjustment....................... $ 4,853 ======= (c) INTEREST EXPENSE ON THE PROMISSORY NOTES Interest expense on the two promissory notes payable is calculated at 10% annually. The pro forma statements of operations assume interest will be paid in full. However, the promissory notes provide that no interest shall accrue or be payable on any principal paid within nine months. The interest expense recorded in the pro forma condensed combined statements of operations was calculated as follows (in thousands): [Download Table] THREE MONTHS NINE MONTHS YEAR ENDED ENDED ENDED APRIL 30, APRIL 30, JULY 31, 2004 2004 2003 ------------ ----------- -------- Promissory notes principal..................... $39,300 $39,300 $39,300 Interest rate.................................. 10% 10% 10% Interest expense recorded...................... $ 983 $ 2,948 $ 3,930 9

Dates Referenced Herein   and   Documents Incorporated by Reference

Referenced-On Page
This ‘8-K’ Filing    Date First  Last      Other Filings
8/8/051
Filed on:6/30/04
For Period End:6/29/04S-2/A
4/30/041710-Q
3/31/0415
1/31/04210-Q
10/31/03210-Q
7/31/031610-K,  8-K/A
6/30/031
9/11/02128-K
8/1/021
 List all Filings 
Top
Filing Submission 0000950135-04-003327   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Copyright © 2018 Fran Finnegan & Company.  All Rights Reserved.
AboutPrivacyRedactionsHelp — Sat., Oct. 20, 9:59:01.0pm ET