SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED March 31, 2004
Commission File Number: 0-31226
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INVESTOOLS INC. |
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(Exact name of Registrant as specified in its charter) |
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Delaware |
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76-0685039 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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5959 Corporate
Drive, Suite LL250 |
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77036 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: |
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(281) 588-9700 |
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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 and 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.
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Yes o |
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No ý |
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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Yes o |
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No ý |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
$.01 par value per share Common Stock: 45,295,897 as of May 10, 2004
INVESTOOLS INC. AND SUBSIDIARIES
Report on Form 10-Q
Quarter Ended March 31, 2004
1
INVESTOOLS INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
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March 31, |
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December 31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
8,485 |
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$ |
4,458 |
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Marketable securities |
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7,160 |
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7,808 |
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Accounts receivable, net (allowance: $183, $197) |
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967 |
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319 |
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Other current assets |
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1,049 |
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420 |
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Total current assets |
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17,661 |
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13,005 |
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Restricted cash |
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1,857 |
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357 |
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Goodwill and intangibles, net |
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15,254 |
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12,357 |
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Furniture and equipment, net |
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1,400 |
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832 |
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Total assets |
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$ |
36,172 |
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$ |
26,551 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Deferred revenue |
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$ |
12,156 |
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$ |
8,622 |
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Accounts payable |
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4,353 |
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1,391 |
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Accrued payroll |
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2,372 |
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1,544 |
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Accrued tax liabilities |
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562 |
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561 |
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Other current liabilities |
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781 |
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566 |
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Total liabilities, current |
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20,224 |
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12,684 |
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Stockholders’ equity: |
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Common stock (45,276 and 44,189 shares issued and outstanding, respectively) |
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453 |
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442 |
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Additional paid-in capital |
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130,226 |
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127,058 |
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Accumulated other comprehensive income (loss) |
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35 |
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(2 |
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Deferred compensation |
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(1,210 |
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(293 |
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Accumulated deficit |
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(113,556 |
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(113,338 |
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Total stockholders’ equity |
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15,948 |
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13,867 |
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Total liabilities and stockholders’ equity |
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$ |
36,172 |
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$ |
26,551 |
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The accompanying notes are an integral part of these consolidated financial statements.
2
INVESTOOLS INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
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Three Months Ended |
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2004 |
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2003 |
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Revenue |
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$ |
22,973 |
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$ |
13,880 |
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Costs and expenses |
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Cost of revenue |
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13,230 |
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7,395 |
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Selling expenses |
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5,120 |
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3,688 |
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Related party selling expense |
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— |
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501 |
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General and administrative expense |
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4,601 |
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2,971 |
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Depreciation and amortization expense |
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158 |
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231 |
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Total costs and expenses |
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23,109 |
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14,786 |
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Net loss from operations |
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(136 |
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(906 |
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Other income (expense) |
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Loss on sale of assets |
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(18 |
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— |
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Interest income and other, net |
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(61 |
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(21 |
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Total other expense |
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(79 |
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(21 |
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Loss before income tax expense |
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(215 |
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(927 |
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Income tax expense |
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3 |
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— |
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Net loss |
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$ |
(218 |
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$ |
(927 |
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Net loss per common share - basic and diluted |
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$ |
(0.00 |
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$ |
(0.02 |
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Weighted average common shares outstanding - basic and diluted |
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44,578 |
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43,206 |
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The accompanying notes are an integral part of these consolidated financial statements.
3
INVESTOOLS INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
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Three months Ended |
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2004 |
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2003 |
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Cash flows from operating activities: |
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Net loss |
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$ |
(218 |
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$ |
(927 |
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Reconciling adjustments: |
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Depreciation and amortization |
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158 |
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231 |
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Changes in operating assets and liabilities |
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Increase in accounts receivable |
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(292 |
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(498 |
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Increase in restricted cash |
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(1,500 |
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— |
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Increase in other current assets |
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(454 |
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(82 |
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Increase in accounts payable |
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1,967 |
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609 |
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Increase in deferred revenue |
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2,965 |
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740 |
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Increase (decrease) in accrued payroll |
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648 |
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(149 |
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Increase in other current liabilities |
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211 |
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163 |
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Increase (decrease) in taxes receivable/payable |
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(2 |
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2,362 |
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Other |
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25 |
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8 |
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Net cash provided by operating activities |
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3,508 |
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2,457 |
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Cash flows from investing activities: |
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