UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2003
Commission File Number: 1-14371
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INFORMATION HOLDINGS INC. |
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(Exact name of registrant as specified in its charter) |
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DELAWARE |
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06-1518007 |
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(State of incorporation) |
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(IRS Employer Identification Number) |
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2777 Summer Street, Suite 209
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06905 |
(Address of principal executive offices) |
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(Zip Code) |
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(203) 961-9106 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. o Yes ý No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
ý Yes o No
As of August 14, 2003, there were 20,872,237 shares of the Company’s common stock, par value $0.01 per share outstanding.
INFORMATION HOLDINGS INC.
INDEX
INFORMATION HOLDINGS INC.
(In thousands, except share data)
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June 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and equivalents |
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$ |
109,836 |
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$ |
53,910 |
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Short-term investments |
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36,698 |
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13,056 |
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Restricted cash |
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3,000 |
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— |
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Accounts receivable (net of allowance for doubtful accounts and |
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26,024 |
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29,375 |
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Prepaid expenses and other current assets |
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2,796 |
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3,940 |
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Deferred income taxes |
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4,067 |
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4,589 |
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Total assets of discontinued operations |
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— |
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59,653 |
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Total current assets |
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182,421 |
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164,523 |
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Investments |
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6,742 |
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— |
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Property and equipment, net |
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4,831 |
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5,837 |
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Identified intangible assets, net |
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68,311 |
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72,309 |
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Goodwill |
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83,140 |
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83,099 |
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Other assets |
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3,254 |
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3,233 |
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TOTAL |
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$ |
348,699 |
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$ |
329,001 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
27,046 |
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$ |
26,224 |
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Accrued expenses |
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12,444 |
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11,098 |
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Accrued income taxes |
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16,493 |
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2,794 |
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Deferred subscription revenue |
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20,262 |
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21,129 |
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Total liabilities of discontinued operations |
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— |
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17,891 |
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Total current liabilities |
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76,245 |
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79,136 |
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Other long-term liabilities |
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12 |
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125 |
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Total liabilities |
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76,257 |
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79,261 |
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STOCKHOLDERS’ EQUITY: |
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Preferred stock, $.01 par value; 1,000,000 shares authorized; none issued |
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$ |
— |
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$ |
— |
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Common stock, $.01 par value; authorized 50,000,000 shares; issued 21,869,130 and 21,815,677 shares, respectively; outstanding 20,861,930 and 21,433,777 shares, respectively |
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219 |
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218 |
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Additional paid-in capital |
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247,766 |
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247,026 |
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Retained earnings |
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38,963 |
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7,097 |
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Treasury stock, at cost, 1,007,200 and 381,900 shares, respectively |
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(14,723 |
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(5,227 |
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Accumulated other comprehensive income |
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217 |
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626 |
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Total stockholders’ equity |
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272,442 |
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249,740 |
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TOTAL |
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$ |
348,699 |
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$ |
329,001 |
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See notes to unaudited consolidated financial statements.
1
INFORMATION HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenues |
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$ |
21,926 |
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$ |
22,781 |
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$ |
44,134 |
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$ |
45,013 |
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Cost of sales |
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6,562 |
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6,111 |
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13,123 |
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11,767 |
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Gross profit |
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15,364 |
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16,670 |
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31,011 |
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33,246 |
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Operating expenses: |
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Selling, general and administrative |
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10,945 |
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10,246 |
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21,605 |
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20,189 |
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Depreciation and amortization |
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3,023 |
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3,603 |
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6,115 |
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7,049 |
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Total operating expenses |
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13,968 |
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13,849 |
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27,720 |
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27,238 |
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Income from operations |
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1,396 |
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2,821 |
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3,291 |
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6,008 |
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Other income (expense): |
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Interest income |
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679 |
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262 |
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867 |
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518 |
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Interest expense |
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(3 |
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(89 |
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(59 |
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(177 |
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Early termination of credit agreement |
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