SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K/A
AMENDMENT NO. 1
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 8, 2003
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INFORMATION HOLDINGS INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-14371 06-1518007
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
2777 Summer Street, Suite 209, Stamford, Connecticut 06905
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(Address of principal executive offices) (Zip Code)
(203) 961-9106
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(Registrant's telephone number, including area code)
Item 7. Financial Statements and Pro Forma Financial Information
This Form 8-K/A amends the Form 8-K filed by Information Holdings Inc. on April
22, 2003 to add information pursuant to Item 7(b) - Pro Forma Financial
Information.
(b) Pro Forma Financial Information
The following pro forma financial information is included herein:
I. Pro Forma Condensed Consolidated Financial Statements of Information
Holdings Inc.
Introduction
Pro Forma Condensed Consolidated Statements of Operations for the Years
Ended December 31, 2000, 2001 and 2002
Pro Forma Condensed Consolidated Balance Sheet as of December 31, 2002
Notes to Pro Forma Condensed Consolidated Financial Statements
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INFORMATION HOLDINGS INC.
Dated: May 7, 2003 By: /s/ Vincent A. Chippari
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Name: Vincent A. Chippari
Title: Executive Vice President & CFO
Information Holdings Inc.
Unaudited Pro Forma Condensed Consolidated Financial Statements
On April 8, 2003, Information Holdings Inc. (the "Company") sold, pursuant
to an Asset Purchase Agreement dated February 27, 2003, substantially all of the
assets and certain liabilities of its wholly owned subsidiaries CRC Press LLC
("CRC Press LLC"), CRC Press (U.K.) LLC and Parthenon Publishing Group, Inc., to
CRC Press I LLC and Routledge No. 2 Limited, both wholly owned subsidiaries of
Taylor & Francis Group plc, for approximately $95,000,000 in cash, subject to a
post closing adjustment.
The following unaudited pro forma condensed consolidated statements of
operations of the Company for the years ended December 31, 2000, 2001 and 2002
give effect to the disposition of CRC Press LLC and its subsidiaries ("CRC
Press") as if it occurred on January 1, 2000. The following unaudited pro forma
condensed consolidated balance sheet of the Company as of December 31, 2002
gives effect to the disposition of CRC Press as if it occurred on that date. The
unaudited pro forma condensed consolidated statements of operations do not
reflect the gain on the sale of CRC Press, nor do they reflect imputed interest
on the proceeds from the disposition.
The unaudited pro forma condensed consolidated financial statements have
been prepared by the Company's management. The unaudited pro forma condensed
consolidated financial statements are not designed to represent and do not
represent what the Company's results of operations and financial position would
have been had the aforementioned transaction been completed as of the date or at
the beginning of the period indicated or to project the Company's results of
operations or financial position at any future date or any future period. The
pro forma condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes contained in
the Company's 2002 Annual Report on Form 10-K.
Information Holdings Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
December 31, 2000
(In thousands, except per share data)
Information Less: Pro Forma
Holdings CRC Press Consolidated
Revenues $ 73,289 $ 38,984 $ 34,305
Cost of sales 19,720 10,422 9,298
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Gross profit 53,569 28,562 25,007
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Operating expenses:
Selling, general and administrative 36,987 20,602 16,385
Depreciation and amortization 9,744 1,993 7,751
Impairment of long-lived assets 1,500 0 1,500
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Total operating expenses 48,231 22,595 25,636
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Income (loss) from operations 5,338 5,967 (629)
Other income (expense):
Other income (expense) 2 5 (3)
Interest income (expense), net 7,005 (144) 7,149
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Income before income taxes 12,345 5,828 6,517
Provision for income taxes 5,253 2,273 2,980
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Net income $ 7,092 $ 3,555 $ 3,537
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Basic earnings per common share $ 0.34 $ 0.17
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Diluted earnings per common share $ 0.34 $ 0.17
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The accompanying notes are an integral part of these pro forma condensed
consolidated financial statements.
Information Holdings Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
December 31, 2001
(In thousands, except per share data)
Information Less: Pro Forma
Holdings CRC Press Consolidated
Revenues $ 105,336 $ 42,424 $ 62,912
Cost of sales 26,676 13,714 12,962
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Gross profit 78,660 28,710 49,950
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Operating expenses:
Selling, general and administrative 49,831 22,997 26,834
Depreciation and amortization 18,769 2,642 16,127
Impairment of long-lived assets 400 0 400
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Total operating expenses 69,000 25,639 43,361
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Income from operations 9,660 3,071 6,589
Other income (expense):
Other expense (16) 0 (16)
Interest income (expense), net 3,505 (148) 3,653
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Income before income taxes 13,149 2,923 10,226
Provision for income taxes 5,311 1,071 4,240
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Net income $ 7,838 $ 1,852 $ 5,986
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Basic earnings per common share $ 0.36 $ 0.28
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Diluted earnings per common share $ 0.36 $ 0.27
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The accompanying notes are an integral part of these pro forma condensed
consolidated financial statements.
Information Holdings Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
December 31, 2002
(In thousands, except per share data)
Information Less: Pro Forma
Holdings CRC Press Consolidated
Revenues $ 141,767 $ 52,053 $ 89,714
Cost of sales 41,966 17,929 24,037
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Gross profit 99,801 34,124 65,677
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Operating expenses:
Selling, general and administrative 66,909 24,108 42,801
Depreciation and amortization 16,941 3,102 13,839
Impairment of long-lived assets 39,380 0 39,380
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Total operating expenses 123,230 27,210 96,020
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(Loss) income from operations (23,429) 6,914 (30,343)
Other income (expense):
Other income 5 0 5
Interest income (expense), net 473 (155) 628
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(Loss) income before income taxes (22,951) 6,759 (29,710)
(Benefit from) provision for income taxes (9,227) 2,542 (11,769)
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Net (loss) income $ (13,724) $ 4,217 $ (17,941)
========= ========= =========
Basic (loss) per common share $ (0.63) $ (0.83)
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Diluted (loss) per common share $ (0.63) $ (0.83)
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The accompanying notes are an integral part of these pro forma condensed
consolidated financial statements.
Information Holdings Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
December 31, 2002
(In thousands)
Information Less: Pro Forma Pro Forma
Holdings CRC Press Adjustments Consolidated
Cash, cash equivalents and
short-term investments $ 66,966 $ 3,075 $ 77,337 (1) $ 141,228
Accounts receivable, net 41,827 12,452 29,375
Other current assets 17,425 8,896 8,529
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Total current assets 126,218 24,423 77,337 179,132
Intangible assets, net 94,627 22,318 72,309
Goodwill, net 88,967 5,868 83,099
Other long-term assets 19,025 10,119 164 (2) 9,070
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Total assets $ 328,837 $ 62,728 $ 77,501 $ 343,610
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Accounts payable $ 30,967 $ 4,743 $ 26,224
Deferred revenue 27,069 5,940 21,129
Other current liabilities 17,738 4,002 $ 156 (1) 13,892
Long-term liabilities 3,323 3,362 164 (2) 125
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Total liabilities 79,097 18,047 320 61,370
Common stock 218 218
Treasury stock (5,227) (5,227)
Paid in capital 247,026 16,591 16,591 (1) 247,026
Accumulated comprehensive income 626 358 358 (1) 626
Retained earnings 7,097 27,732 60,232 (1) 39,597
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Total equity 249,740 44,681 77,181 282,240
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Total liabilities and equity $ 328,837 $ 62,728 $ 77,501 $ 343,610
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The accompanying notes are an integral part of these pro forma condensed
consolidated financial statements.
Information Holdings Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
1. PRO FORMA ADJUSTMENTS
For purposes of determining the pro forma effect of the disposition of CRC
Press on Information Holdings Inc.'s Condensed Consolidated Balance Sheet as of
December 31, 2002, the following adjustments have been made (In thousands):
(1) Represents the proceeds from the sale of CRC Press and the estimated gain
on disposition, adjusted for assets and liabilities of CRC Press retained
by the Company, as follows - debit (credit):
Cash $77,337
Other current liabilities (156)
Paid in capital (16,591)
Accumulated comprehensive income (358)
Retained earnings (earnings of CRC Press prior to disposition) (27,732)
Retained earnings (estimated after-tax gain on disposition) (32,500)
(2) Represents a reclassification of net long-term deferred taxes. The
disposition of CRC Press results in a change in long-term deferred taxes
from a net liability to a net asset.
2. EARNINGS PER SHARE
Earnings per share are calculated by dividing the net income by the
weighted average outstanding shares during the period. The weighted average
outstanding shares for the years ending December 31 are as follows:
2000 2001 2002
Basic 20,583,190 21,686,149 21,734,708
Diluted 20,821,921 21,826,359 21,734,708