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8-K - FORM 8-K - L-1 IDENTITY SOLUTIONS, INC.y04203e8vk.htm
EX-99.2 - EX-99.2 - L-1 IDENTITY SOLUTIONS, INC.y04203exv99w2.htm
EX-99.3 - EX-99.3 - L-1 IDENTITY SOLUTIONS, INC.y04203exv99w3.htm
EX-23.1 - EX-23.1 - L-1 IDENTITY SOLUTIONS, INC.y04203exv23w1.htm
EXHIBIT 99.1
PART II, ITEM 6. SELECTED FINANCIAL DATA
The financial data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and L-1’s audited consolidated financial statements as of December 31, 2009 and 2008 and for each of the three years in the period ended December 31, 2009 included in this Current Report on Form 8-K, from which the data have been derived for the dates and periods indicated. The balance sheet data for all dates and the income statement data for 2005 have been derived from the audited financial statements for the respective years. The income statement data for 2006 have been derived from unaudited statement of operations reflecting the intelligence services business as discontinued operations. The historical results of operations are not necessarily indicative of future results. Except for the year ended December 31, 2005, the financial data set forth below has been revised to retroactively reflect the Company’s intelligence services business as discontinued operations.
                                         
    Years Ended December 31,  
    2009(1)(3)(4)     2008(1)(2)(3)(4)     2007(1)(2)(3)(4)     2006(1)(3)(4)     2005(3)  
    (in thousands, except per share data)  
Statement of Operations Data:
                                       
Revenues
  $ 437,129     $ 358,139     $ 272,533     $ 151,285     $ 66,224  
Cost of revenues
    309,583       251,099       188,444       105,056       47,568  
 
                             
Gross profit
    127,546       107,040       84,089       46,229       18,656  
 
                             
Operating expenses:
                                       
Sales and marketing
    38,651       36,425       27,719       14,430       7,832  
Research and development
    20,730       25,244       18,482       11,589       4,618  
General and administrative
    54,953       49,185       39,667       28,358       12,068  
Asset impairments and merger related expenses
          529,683       5,000       22,767        
Acquisition related expenses and amortization of acquired intangible assets
    662       900       1,266       300       681  
 
                             
Total operating expenses
    114,996       641,437       92,134       77,444       25,199  
 
                             
Operating income (loss)
    12,550       (534,397 )     (8,045 )     (31,215 )     (6,543 )
Interest income
    97       252       376       1,770       362  
Interest expense
    (14,666 )     (13,281 )     (7,926 )     (310 )     (159 )
Other income (expense), net
    (421 )     (240 )     (519 )     (124 )     369  
 
                             
Loss before income taxes and discontinued operations
    (2,440 )     (547,666 )     (16,114 )     (29,879 )     (5,971 )
Benefit (provision) for income taxes
    1,325       (7,643 )     27,758       (2,177 )     (1,382 )
 
                             
Net income (loss) from continuing operations
    (1,115 )     (555,309 )     11,644       (32,056 )     (7,353 )
Net income (loss) from discontinued operations, net of income taxes
    (2,888 )     3,715       4,163       1,019        
 
                             
Net income (loss)
    (4,003 )     (551,594 )     15,807       (31,037 )     (7,353 )
Net income attributable to non-controlling interest
    (195 )                        
 
                             
Net income (loss) attributable to L-1 shareholders
  $ (4,198 )   $ (551,594 )   $ 15,807     $ (31,037 )   $ (7,353 )
 
                             
Basis and diluted net income (loss) per share Continuing operations
  $ (0.01 )   $ (7.16 )   $ 0.16     $ (0.73 )   $ (0.37 )
 
                             
Discontinued operations
  $ (0.03 )   $ 0.05     $ 0.06     $ 0.02        
 
                             
Attributable to L-1 shareholders
  $ (0.05 )   $ (7.12 )   $ 0.22     $ (0.71 )   $ (0.37 )
 
                             
Weighted average common shares outstanding:
                                       
Basic
    85,516       77,518       71,663       43,823       19,630  
 
                             
Diluted
    85,516       77,518       72,385       43,823       19,630  
 
                             
 
                                       
Balance Sheet Data:
                                       
Current assets, net of current liabilities
  $ 9,403     $ 24,371     $ 40,869     $ 11,658     $ 77,482  
Total assets
    1,323,825       1,309,821       1,435,595       1,227,225       294,108  
Long-term debt, including current maturities
    446,366       448,491       234,918       80,000       215  
Equity
    730,461       708,480       1,098,749       1,067,085       274,660  
 
 
(1)   The results reflect the adoption of the accounting standard, Share-Based Payments, effective January 1, 2006.
 
(2)   See Note 14 to the consolidated financial statements.
 
(3)   The results of each of the years presented have been materially impacted by acquisitions, including the intelligence services businesses initially included in the results of operations in 2006. See Note 13 to the consolidated financial statements.
 
(4)   Beginning in 2007, the results of operations reflects the retrospective adoption of guidance related to the accounting for convertible debt instruments and guidance related to the expensing of acquisition related costs. See Note 2 to the consolidated financial statements. Beginning in 2006 the results of operations also reflects the retroactive presentation of the intelligence services business as discontinued operations. See Note 15 to the consolidated financial statements.