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 QUARTER ENDED June 30, 2004
Commission File Number: 0-31226
INVESTOOLS INC.
(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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Houston, Texas |
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(Zip Code) |
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(Address of principal executive offices) |
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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 ý |
No o |
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 |
No ý |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
$.01 par value per share Common Stock: 45,385,587 as of August 2, 2004
INVESTOOLS INC. AND SUBSIDIARIES
Report on Form 10-Q
Quarter Ended June 30, 2004
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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1
PART I - FINANCIAL INFORMATION
INVESTOOLS INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
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June 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
9,493 |
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$ |
4,458 |
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Marketable securities |
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7,171 |
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7,808 |
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Accounts receivable, net (allowance: $155, $197) |
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1,220 |
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319 |
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Other current assets |
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1,701 |
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420 |
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Total current assets |
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19,585 |
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13,005 |
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Restricted cash |
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1,863 |
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357 |
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Goodwill and intangibles, net |
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15,430 |
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12,357 |
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Furniture and equipment, net |
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1,423 |
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832 |
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Total assets |
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$ |
38,301 |
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$ |
26,551 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Current portion of deferred revenue |
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$ |
13,774 |
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$ |
8,464 |
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Accounts payable |
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3,174 |
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1,391 |
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Accrued payroll |
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1,730 |
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1,544 |
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Accrued tax liabilities |
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604 |
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561 |
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Other current liabilities |
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995 |
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566 |
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Total current liabilities |
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20,277 |
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12,526 |
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Long-term liabilities: |
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Long-term portion of deferred revenue |
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2,902 |
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158 |
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Total liabilities |
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23,179 |
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12,684 |
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Stockholders’ equity: |
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Common stock (45,380 and 44,189 shares issued and outstanding, respectively) |
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454 |
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442 |
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Additional paid-in capital |
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130,254 |
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127,058 |
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Accumulated other comprehensive loss |
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(6 |
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(2 |
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Deferred stock compensation |
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(1,107 |
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(293 |
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Accumulated deficit |
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(114,473 |
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(113,338 |
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Total stockholders’ equity |
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15,122 |
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13,867 |
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Total liabilities and stockholders’ equity |
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$ |
38,301 |
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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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Six Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue |
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$ |
25,609 |
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$ |
18,127 |
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$ |
48,582 |
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$ |
32,007 |
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Costs and expenses |
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Cost of revenue |
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15,791 |
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10,671 |
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29,021 |
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18,066 |
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