Exhibit 99.1
Forrester Research, Inc.
Consolidated Statements of Income
Consolidated Statements of Income
(In thousands, except per share data)
Three months ended | Year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues: | ||||||||||||||||
Research services | $ | 45,445 | $ | 40,758 | $ | 168,508 | $ | 157,726 | ||||||||
Advisory services and other | 21,671 | 20,728 | 82,218 | 75,626 | ||||||||||||
Total revenues | 67,116 | 61,486 | 250,726 | 233,352 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of services and fulfillment | 25,079 | 22,049 | 94,105 | 87,873 | ||||||||||||
Selling and marketing | 23,627 | 18,469 | 84,663 | 72,487 | ||||||||||||
General and administrative | 9,547 | 7,993 | 33,960 | 28,461 | ||||||||||||
Depreciation | 888 | 1,069 | 3,628 | 4,380 | ||||||||||||
Amortization of intangible assets | 905 | 539 | 3,620 | 2,290 | ||||||||||||
Reorganization costs | — | 2,300 | — | 5,441 | ||||||||||||
Total operating expenses | 60,046 | 52,419 | 219,976 | 200,932 | ||||||||||||
Income from operations | 7,070 | 9,067 | 30,750 | 32,420 | ||||||||||||
Other income (loss), net | (29 | ) | 115 | 1,249 | 2,297 | |||||||||||
Gains (losses) on investments, net | 472 | 701 | 2,301 | (982 | ) | |||||||||||
Income before income taxes | 7,513 | 9,883 | 34,300 | 33,735 | ||||||||||||
Income tax provision | 3,384 | 4,100 | 13,793 | 14,869 | ||||||||||||
Net Income | $ | 4,129 | $ | 5,783 | $ | 20,507 | $ | 18,866 | ||||||||
Diluted income per share | $ | 0.18 | $ | 0.26 | $ | 0.89 | $ | 0.82 | ||||||||
Diluted weighted average shares outstanding | 23,134 | 22,678 | 23,063 | 22,884 | ||||||||||||
Basic income per share | $ | 0.18 | $ | 0.26 | $ | 0.91 | $ | 0.83 | ||||||||
Basic weighted average shares outstanding | 22,543 | 22,372 | 22,478 | 22,645 | ||||||||||||
Pro forma data (1): | ||||||||||||||||
Income from operations | $ | 7,070 | $ | 9,067 | $ | 30,750 | $ | 32,420 | ||||||||
Amortization of intangible assets | 905 | 539 | 3,620 | 2,290 | ||||||||||||
Duplicate lease costs | 487 | — | 875 | — | ||||||||||||
Reorganization costs | — | 2,300 | — | 5,441 | ||||||||||||
Acquisitions costs (credits) | 256 | — | (70 | ) | — | |||||||||||
Stock-based compensation included in the following expense categories: | ||||||||||||||||
Cost of services and fulfillment | 507 | 480 | 2,094 | 2,961 | ||||||||||||
Selling and marketing | 234 | 239 | 943 | 1,123 | ||||||||||||
General and administrative | 447 | 471 | 1,837 | 2,027 | ||||||||||||
Pro forma income from operations | 9,906 | 13,096 | 40,049 | 46,262 | ||||||||||||
Other income (loss), net | (29 | ) | 115 | 1,249 | 2,297 | |||||||||||
Pro forma income before income taxes | 9,877 | 13,211 | 41,298 | 48,559 | ||||||||||||
Pro forma income tax provision | 3,951 | 5,284 | 16,519 | 19,424 | ||||||||||||
Pro forma net income | $ | 5,926 | $ | 7,927 | $ | 24,779 | $ | 29,135 | ||||||||
Pro forma diluted income per share | $ | 0.26 | $ | 0.35 | $ | 1.07 | $ | 1.27 | ||||||||
Diluted weighted average shares outstanding | 23,134 | 22,678 | 23,063 | 22,884 | ||||||||||||
(1) | Forrester believes that pro forma financial results provide investors with consistent and comparable information to aid in the understanding of Forrester’s ongoing business. Our pro forma presentation excludes amortization of acquisition-related intangible assets, duplicate lease costs, reorganization costs, costs or (credits) associated with acquisition activities, stock-based compensation and net gains or losses from investments, as well as their related tax effects. The pro forma data does not purport to be prepared in accordance with Accounting Principles Generally Accepted in the United States. |