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, 2005
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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585 East 1860 South |
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84606 |
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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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(801) 724-6913 |
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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 |
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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 ý |
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No o |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
$.01 par value per share Common Stock: 44,997,675 as of May 2, 2005
INVESTOOLS INC. AND SUBSIDIARIES
Report on Form 10-Q
Quarter Ended March 31, 2005
1
PART I - FINANCIAL INFORMATION
INVESTOOLS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
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March 31, |
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December 31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
5,863 |
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$ |
10,736 |
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Marketable securities |
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12,312 |
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13,840 |
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Accounts receivable, net (allowance: $1, $7) |
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4,067 |
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2,194 |
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Current portion of restricted cash |
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381 |
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384 |
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Other current assets |
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3,302 |
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2,493 |
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Total current assets |
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25,925 |
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29,647 |
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Long-term restricted cash |
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1,890 |
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1,876 |
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Goodwill |
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18,251 |
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14,315 |
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Intangible assets, net |
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6,267 |
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2,152 |
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Furniture and equipment, net |
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3,586 |
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1,574 |
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Other long-term assets |
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252 |
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214 |
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Total assets |
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$ |
56,171 |
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$ |
49,778 |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Current portion of deferred revenue |
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$ |
41,539 |
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$ |
31,957 |
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Accounts payable |
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7,605 |
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4,994 |
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Accrued payroll |
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2,635 |
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2,178 |
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Accrued tax liabilities |
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5,540 |
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5,103 |
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Other current liabilities |
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5,183 |
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4,273 |
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Total liabilities, current |
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62,502 |
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48,505 |
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Long-term liabilities: |
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Other long-term accrued liabilities |
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63 |
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84 |
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Long-term portion of deferred revenue |
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10,070 |
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8,421 |
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Total liabilities |
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72,635 |
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57,010 |
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Stockholders’ deficit: |
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Common stock $0.01 par value (44,974 and 44,966 shares issued and outstanding, respectively) |
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449 |
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449 |
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Additional paid-in capital |
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129,789 |
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129,097 |
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Accumulated other comprehensive loss |
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(104 |
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(32 |
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Deferred stock compensation |
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(1,547 |
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(998 |
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Accumulated deficit |
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(145,051 |
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(135,748 |
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Total stockholders’ deficit |
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(16,464 |
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(7,232 |
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Total liabilities and stockholders’ deficit |
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$ |
56,171 |
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$ |
49,778 |
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The accompanying notes are an integral part of these consolidated financial statements.
2
INVESTOOLS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
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Three Months Ended |
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2005 |
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2004 |
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As Restated |
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Revenue |
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$ |
30,624 |
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$ |
23,219 |
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Costs and expenses |
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Cost of revenue |
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25,095 |
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13,310 |
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Selling expenses |
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8,595 |
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5,397 |
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General and administrative expense |
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6,353 |
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4,481 |
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Special charges |
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— |
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227 |
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Total costs and expenses |
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40,043 |
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23,415 |
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Net loss from operations |
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(9,419 |
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