Attached files
| file | filename |
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| 8-K/A - FORM 8-K/A - KEYW HOLDING CORP | v236998_8ka.htm |
| EX-99.2 - EXHIBIT 99.2 - KEYW HOLDING CORP | v236998_ex99-2.htm |
| EX-99.1 - EXHIBIT 99.1 - KEYW HOLDING CORP | v236998_ex99-1.htm |
| EX-23.2 - EXHIBIT 23.2 - KEYW HOLDING CORP | v236998_ex23-2.htm |
| EX-23.1 - EXHIBIT 23.1 - KEYW HOLDING CORP | v236998_ex23-1.htm |
Exhibit 99.3
The KEYW Holding Corporation
Introduction to Pro Forma Condensed Financial Statements
Effective August 5, 2011, The KEYW Holding Corporation (“KEYW”) acquired Flight Landata, Inc. (“FLD”) for the purchase price of $30.0 million.
The accompanying unaudited pro forma condensed balance sheet as of December 31, 2010 gives effect to the FLD acquisition as if it occurred on that date. The accompanying unaudited pro forma condensed statement of income for the year ended December 31, 2010, gives effect to the FLD acquisition as if it occurred on January 1, 2010. The pro forma statements were prepared using US generally accepted accounting principles.
The unaudited pro forma condensed financial information is provided for informational purposes only and is not necessarily indicative of the results that would have occurred if the acquisition had occurred on the first day of each period presented. The unaudited pro forma financial statements should not be construed as being representative of future operating results or the financial position of KEYW and should be read in conjunction with:
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Accompanying notes to the unaudited pro forma condensed financial statements;
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KEYW’s historical consolidated financial statements and notes included in KEYW’s Annual Report on Form 10-K dated December 31, 2010 and filed with the Securities and Exchange Commission on March 29, 2011 pursuant to Rule 424(b)(4); and
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FLD’s audited financial statements and notes for seven months ended August 5, 2011 and the years ended December 31, 2010 and December 31, 2009.
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Unaudited Pro Forma Condensed Balance Sheet as of December 31, 2010 (In thousands)
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KEYW
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FLD
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FLD Adj.
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2011 Acq’s (1)
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Pro Forma
Combined
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(Audited)
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(Audited)
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(Unaudited)
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(Unaudited)
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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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$ | 5,795 | $ | 2,752 | $ | — | $ | — | $ | 8,547 | ||||||||||||||
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Receivables, net
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30,406 | 3,522 | (2,668 | ) | (2 | ) | 5,216 | 36,476 | ||||||||||||||||
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Inventories
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5,183 | 104 | — | — | 5,287 | |||||||||||||||||||
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Prepaid expenses
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1,950 | 917 | — | 105 | 2,972 | |||||||||||||||||||
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Income tax receivable
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55 | — | — | — | 55 | |||||||||||||||||||
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Deferred tax asset, current
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1,475 | 29 | — | — | 1,504 | |||||||||||||||||||
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Total current assets
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44,864 | 7,324 | (2,668 | ) | 5,321 | 54,841 | ||||||||||||||||||
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Property and equipment, net
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3,306 | 3,295 | — | 101 | 6,702 | |||||||||||||||||||
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Goodwill
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130,374 | — | — | (3 | ) | 23,033 | 153,407 | |||||||||||||||||
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Other intangibles, net
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22,716 | 94 | 23,610 | (3 | ) | 5,615 | 52,035 | |||||||||||||||||
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Deferred tax asset
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3,772 | — | — | — | 3,772 | |||||||||||||||||||
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Other assets
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232 | — | — | — | 232 | |||||||||||||||||||
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TOTAL ASSETS
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$ | 205,264 | $ | 10,713 | $ | 20,942 | $ | 34,070 | $ | 270,989 | ||||||||||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 6,292 | $ | 391 | $ | — | $ | 166 | $ | 6,849 | ||||||||||||||
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Accrued expenses
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5,847 | 19 | — | — | 5,866 | |||||||||||||||||||
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Accrued salaries & wages
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5,442 | 246 | — | 3,984 | 9,672 | |||||||||||||||||||
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Deferred income taxes
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578 | — | — | — | 578 | |||||||||||||||||||
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Debt
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— | 1,069 | 28,931 | (4 | ) | 25,513 | (5 | ) | 55,513 | |||||||||||||||
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Total current liabilities
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18,159 | 1,725 | 28,931 | 29,663 | 78,478 | |||||||||||||||||||
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Long-term liabilities:
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Non-current deferred tax liability
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11,869 | 765 | — | — | 12,634 | |||||||||||||||||||
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Other non-current liabilities
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125 | 234 | — | — | 359 | |||||||||||||||||||
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TOTAL LIABILITIES
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$ | 30,153 | $ | 2,724 | $ | 28,931 | $ | 29,663 | $ | 91,471 | ||||||||||||||
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Commitments and contingencies
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Stockholders’ equity:
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Members’ equity
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— | 7,989 | (7,989 | ) | (6 | ) | — | — | ||||||||||||||||
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Common stock
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26 | — | — | — | 26 | |||||||||||||||||||
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Additional paid-in capital
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168,358 | — | — | 4,407 | (7 | ) | 172,765 | |||||||||||||||||
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Retained earnings
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6,727 | — | — | — | 6,727 | |||||||||||||||||||
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Total stockholders’ equity
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175,111 | 7,989 | (7,989 | ) | 4,407 | 179,518 | ||||||||||||||||||
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 205,264 | $ | 10,713 | $ | 20,942 | $ | 34,070 | $ | 270,989 | ||||||||||||||
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(1)
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KEYW acquired JKA Technologies, Inc. (“JKA”) and Forbes Analytic Software, Inc. (“FASI”) prior to the FLD acquisition. Neither of these acquisitions, singularly or in the aggregate qualified for disclosure in a Form 8-K under SEC rules. The goodwill and intangible amounts are the actual recorded values.
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(2)
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This amount represents the excess working capital based on the December 31, 2010 financials as compared with the working capital required in the merger agreement.
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(3)
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These amounts represent the estimated goodwill and intangibles associated with the FLD acquisition.
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(4)
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This amount represents the cash paid for the FLD acquisition in 2011 net of $1,069 of debt that was retired in conjunction with the acquisition.
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(5)
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This amount represents the aggregate cash paid for the JKA and FASI acquisitions.
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(6)
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This adjustment removes the equity account of FLD at acquisition.
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Pro Forma Condensed Statement of Income For the Year Ended December 31, 2010
(In thousands)
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KEYW
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Pre 2011
ACQs (1)
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FORM 10-K
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FLD
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2011
ACQs (2)
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Total
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(Audited)
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(Unaudited)
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(Unaudited)
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(Audited)
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(Unaudited)
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(Unaudited)
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Revenue
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$ | 107,988 | $ | 45,163 | $ | 153,151 | $ | 22,321 | $ | 24,651 | $ | 200,123 | ||||||||||||
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Cost of Revenues
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76,444 | 31,057 | 107,501 | 10,278 | 15,481 | 133,260 | ||||||||||||||||||
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Gross Profit
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31,544 | 14,106 | 45,650 | 12,043 | 9,170 | 66,863 | ||||||||||||||||||
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Operating Expenses
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27,264 | 14,643 | 41,907 | 3,321 | 6,091 | 51,319 | ||||||||||||||||||
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Intangible Amortization
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6,440 | — | 6,440 | — | — | 6,440 | ||||||||||||||||||
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Operating (Loss) Income
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(2,160 | ) | (537 | ) | (2,697 | ) | 8,722 | 3,079 | 9,104 | |||||||||||||||
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Non-operating (Income) Expense
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(20,880 | ) | (8 | ) | (20,888 | ) | 119 | 19 | (20,750 | ) | ||||||||||||||
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Income (Loss) before Taxes
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18,720 | (529 | ) | 18,191 | 8,603 | 3,060 | 29,854 | |||||||||||||||||
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Tax Expense
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7,814 | — | 7,814 | 3,439 | — | 11,253 | ||||||||||||||||||
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Net Income (Loss)
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$ | 10,906 | $ | (529 | ) | $ | 10,377 | $ | 5,164 | $ | 3,060 | $ | 18,601 | |||||||||||
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(1)
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These figures are the summarized detail from the 2010 Form 10-K Footnote 4 – Acquisitions.
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(2)
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These figures are the sum of the two acquisitions completed in 2011 that do not meet the criteria, individually or in aggregate, for individual pro forma presentation.
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